Indian Economy MCQs
Indian Economy Multiple Choice Questions (MCQs) for SSC, State and all One Day Examinations of India. Objective Questions on Indian Economy for competitive examinations.
1. Which organization currently calculates and publishes LIBOR?
[A] Intercontinental Exchange (ICE) and Refinitiv
[B] Bank of England
[C] European Banking Federation
[D] European Central Bank
Show Answer
Correct Answer: A [Intercontinental Exchange (ICE) and Refinitiv]
Notes:
Intercontinental Exchange (ICE) Benchmark Administration took over LIBOR calculation in 2014. Refinitiv publishes LIBOR data. The British Bankers’ Association managed LIBOR calculations from 1986 until 2014. Discontinuation of LIBOR was announced in 2017, with USD, EUR, CHF, and JPY LIBOR ceasing in phases between 2021 and 2023. ICE and Refinitiv are based in the United Kingdom.
2. Hindustan Shipyard Limited is located at?
[A] Kochi
[B] Mumbai
[C] Vishakaptnam
[D] Chennai
Show Answer
Correct Answer: C [Vishakaptnam]
Notes:
Hindustan Shipyard Limited is the country’s premier shipbuilding organization. It is located on the East Coast of the Indian peninsula, at Visakhapatnam, Andhra Pradesh. In 2010, the company was transferred from the Ministry of Shipping to the Ministry of Defence.
3. In which of the following countries first Stock Exchange opened?
[A] Uk
[B] Netherlands
[C] USA
[D] India
Show Answer
Correct Answer: B [Netherlands]
Notes:
The first stock exchange was in the Netherlands when the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange
4. Which Indian state is the top producer of large cardamom?
[A] Kerala
[B] Sikkim
[C] Assam
[D] Gujarat
Show Answer
Correct Answer: B [Sikkim]
Notes:
Sikkim produces about 80% of India’s large cardamom. It is grown mainly in the Himalayan region of Sikkim due to the favorable climate and altitude. Sikkim’s production reached approximately 5.591 thousand tonnes in 2025. The government initiative “Mero Alaichi, Mero Dhan” supports cardamom cultivation in Sikkim. Assam, Gujarat, and Kerala do not match Sikkim’s output in this crop.
5. The secondary market deals in which of the following?
[A] Only newly issued securities
[B] Only government bonds and certificates of deposit
[C] Securities already issued and previously traded
[D] Only short-term trading instruments
Show Answer
Correct Answer: C [Securities already issued and previously traded]
Notes:
The secondary market is for trading securities that have already been issued. Transactions involve investors buying and selling among themselves. The issuing company does not receive any funds from these trades. Major examples include stock exchanges like NYSE and NASDAQ. The market provides liquidity and facilitates price discovery for already existing securities including shares, bonds, and debentures.
6. Which is NOT a source of government tax revenue?
[A] Excise taxes on gasoline and cigarettes
[B] Property taxes
[C] Customs duties and tariffs
[D] Fees and charges for government services
Show Answer
Correct Answer: D [Fees and charges for government services]
Notes:
Fees and charges for government services refer to user charges for specific services like public utilities, hospital fees, and tolls. These are not taxes, which are compulsory payments. Tax revenue sources include excise taxes, property taxes, and customs duties. User charges represent voluntary payments for direct services and are classified as non-tax revenue.
7. Which among the following is not an important payment and settlement systems in India?
[A] Clearing House Automated Payment System
[B] Real Time Gross Settlement System
[C] National Electronic Clearing System
[D] National Electronic Clearing System
Show Answer
Correct Answer: A [Clearing House Automated Payment System]
Notes:
Clearing House Automated Payment System CHAPS is in UK
8. In context with the Credit Card Business in India, a Hot card refers to ______?
[A] Low Interest Credit Card
[B] Unsolicited Credit Card
[C] Lost Credit Card
[D] Highly Promoted Credit Card
Show Answer
Correct Answer: C [Lost Credit Card]
Notes:
A “Hot card” in the context of credit cards in India refers to a “Lost Credit Card.” When a card is reported lost or stolen, it is immediately flagged as hot to prevent unauthorized transactions. This term is crucial for fraud prevention in the banking sector. In India, the Reserve Bank of India (RBI) mandates that banks must have robust systems to handle such cases efficiently.
9. Who is the appellate authority after a Banking Ombudsman’s decision?
[A] Governor of RBI
[B] Executive Director of RBI
[C] RBI Local Boards
[D] Chairman of the concerned Bank
Show Answer
Correct Answer: B [Executive Director of RBI]
Notes:
Under the Reserve Bank – Integrated Ombudsman Scheme, 2021, the Executive Director in charge of the Consumer Education and Protection Department of RBI is the appellate authority for appeals against Banking Ombudsman decisions. Appeals must be filed within 30 days through the RBI portal or email. Previous schemes listed the Deputy Governor, but the current scheme specifies the Executive Director.
10. Accession Tax is imposed on which type of receipt?
[A] New property acquired through purchase
[B] Gifts and bequests received over a lifetime
[C] Rented property income
[D] Business assets held by the deceased
Show Answer
Correct Answer: B [Gifts and bequests received over a lifetime]
Notes:
An accession tax is levied on individuals based on all gifts and inheritances received during their lifetime. The tax applies to the cumulative total rather than to the estate of the deceased. Accession tax rates generally increase as the total value of received gifts and bequests rises. This system differs from estate tax or inheritance tax models.
