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 of the following pairings does not represent a set of complementary goods?
[A] Printers and Ink Cartridges
[B] Tea and Sugar
[C] Mobile Phones and SIM cards
[D] Tea and Coffee

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2. An autonomous increase in expenditure should result in an increase in a country’s real GNP only if ?
[A] The country’s balance of trade is negative
[B] The country’s economy is working under conditions of less than full employment
[C] It is government expenditure
[D] The multiplier is at least 1.5

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3. Which fertilizer contains the highest percentage of nitrogen?
[A] Urea
[B] Ammonium nitrate
[C] Calcium nitrate
[D] Calcium ammonium nitrate

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4. Which best defines Gross Budgetary Support?
[A] Value of gross revenue receipts by the government
[B] Fraction of total expenditure on Central sectors, ministries, and State/UT plans
[C] Value of total plan expenditure
[D] Fraction of expenditure on different Central sectors plans

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5. In which year did the Balance of Payments (BOP) crisis occur in the Indian economy?
[A] 1990
[B] 1991
[C] 1995
[D] 1999

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6. Which statement about India’s banking sector is incorrect?
[A] Foreign Banks are Scheduled Commercial Banks.
[B] Banks may set their Savings Deposit interest rates.
[C] Scheduled Banks get loans at RBI bank rate.
[D] Non-Scheduled Banks must keep cash reserve with RBI.

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7. Which of the following bodies approves the Fair and Remunerative Price of Sugarcane?
[A] Cabinet Committee on Economic Affairs
[B] Commission for Agricultural Costs and Prices
[C] Directorate of Marketing and Inspection, Ministry of Agriculture
[D] Agricultural Produce Marketing Committee

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8. Directorate General of foreign Trade (DGFT) functions under which of the following ministries?
[A] Ministry of Commerce and Industry
[B] Ministry of Finance
[C] Home Ministry
[D] Ministry of Finance

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9. Which of the following activities can help to reduce the government’s budget deficit?

  1. Implementation of Goods and Services Tax (GST)
  2. Rationalization of Subsidies
  3. Reduction in Income Tax

Select the correct option from codes given below:

[A] 1 & 2 Only
[B] 3 Only
[C] 2 & 3 Only
[D] 1, 2 & 3

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10. The Mutual fund is constituted under the provisions of which of the following acts?
[A] The Securities and Exchange Board Of India Act,1992
[B] RBI Act,1934
[C] Indian Trusts Act,1882
[D] Indian Registration Act,1908.

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