Indian Economy MCQs

Notes:
The Monetary Policy Committee was formed in 2016 after an amendment to the RBI Act, 1934. The Committee consists of six members: three from the Reserve Bank of India and three nominated by the Central Government. The Governor of the Reserve Bank of India is designated as the ex-officio Chairperson of the Monetary Policy Committee.

Notes:
Gold and silver prices are directly influenced by changes in international crude oil prices. Increases in crude oil prices often cause currency depreciation in oil-importing countries, raising the cost of gold and silver imports. Price fluctuations can also increase demand for gold and silver as safe-haven assets. The global commodities market historically links oil and precious metals prices.

Notes:
In the context of industry, a lockout is a temporary measure used by employers to prevent workers from entering the workplace. This is typically done in response to a labor dispute or strike, and is intended to protect the employer’s property and ensure the safety of workers and others on the premises. A lockout may be imposed by an employer unilaterally, or it may be agreed upon as part of a collective bargaining agreement with a labor union. During a lockout, workers are not allowed to enter the workplace or perform their duties, and the employer may not provide any work or pay to the affected workers. A lockout can have significant economic and social consequences for both the employer and the affected workers, and is generally considered a last resort in the resolution of labor disputes.

Notes:
Government spending refers to the money spent by the government or public sector on the acquisition of goods and services such as education, healthcare, social protection, defence etc. It does not come under monetary policy.

Notes:
The phrase was highlighted in the Union Budget for 1983-84. Finance Minister Pranab Mukherjee emphasized India’s efforts towards reforming the international financial and trading system. This Budget was presented for the fiscal year starting 1983, linking the statement directly to this period.

Notes:
Clearing House Automated Payment System (CHAPS) is a payment system associated with the United Kingdom, not India. Real Time Gross Settlement (RTGS), National Automated Clearing House (NACH) and National Electronic Funds Transfer (NEFT) are recognised payment and settlement systems used in India. Among the given options, CHAPS is therefore the one that does not belong to India’s important payment infrastructure.

Notes:
White Label ATMs in India are owned and operated by non-banking entities authorized by the Reserve Bank of India since 2012. These ATMs do not display any bank logo and can be used by customers of any bank for basic transactions. Tata Communications Payment Solutions was the first company to set up White Label ATMs under the ‘Indicash’ brand in India.

Notes:
The call money is the short-term money market instrument where money is borrowed or lent on demand for a day. It is also known as overnight money market instrument. Intervening holidays and/or Sunday are excluded for this purpose. Thus, it is money borrowed on a day and repaid on the next working day (irrespective of the number of intervening holidays).

Notes:
The World Bank classifies countries by gross national income (GNI) per capita using income bands updated each year. In the FY2027 classification, India continues to fall in the lower-middle-income category. This means India’s GNI per capita is above the low-income threshold but below the upper-middle-income threshold. Hence, among the given options, the correct classification is lower-middle-income economy.

Notes:
The Antyodaya Anna Yojana was launched in December 2000 by the Government of India. Its objective is to provide food security to the poorest of the poor identified under the Targeted Public Distribution System. Eligible families receive 35 kg of food grains per month at highly subsidized prices—rice at ₹3/kg and wheat at ₹2/kg. This scheme operates nationwide.