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 is NOT an economic factor contributing to poverty in India?
[A] Caste-based social discrimination
[B] Low agricultural productivity
[C] Unemployment and underemployment
[D] Rapid population growth

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2. M3 is the most important component among all money stock measures . What is the common name of M3?
[A] All money
[B] Total Money
[C] Broad Money
[D] White Money

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3. Which of the following is not a Selective Credit Control measure?
[A] Margin Requirements
[B] Regulation of Consumer Credit
[C] Rationing of Credit
[D] Open Market Operations

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4. Consider the following:

  1. Foreign Direct Investments
  2. Foreign Institutional Investments
  3. American Depository Receipts
  4. Global Depository Receipts

In the context of “Sources of Foreign Exchange Reserves,” which of the above are placed under Portfolio Investment?

[A] 2, 3 and 4
[B] 1, 2 and 3
[C] 1 and 4
[D] 1 only

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5. What is the main tool used under the Market Stabilisation Scheme (MSS)?
[A] Issuing Treasury Bills and/or dated securities
[B] Purchasing Treasury Bills and/or dated securities
[C] Conducting Open Market Operations
[D] All the above

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6. Which among the following was the first bank purely managed by Indians? 
[A] Oudh Commercial Bank
[B] Punjab National Bank
[C] Bank of India
[D] Allahabad bank

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7. Which was NOT a stipulated target in the FRBM Act, 2003?
[A] Elimination of revenue deficit
[B] Reduction of fiscal deficit to 3% of GDP
[C] Limiting government guarantees to 0.5% of GDP
[D] Complete elimination of primary deficit

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8. Which tool involves central banks signaling future interest rate intentions?
[A] Forward guidance
[B] Quantitative easing
[C] Open market operations
[D] Reserve requirements

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9. According to FERA ,Foreign Exchange includes which of the following?
[A] Traveler’s Cheque
[B] Letters of Credit
[C] Bill of Exchange expressed or drawn in Indian Currency
[D] All of the above

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10. Rolling plan was designed for which of the following periods?
[A] 1974-79
[B] 1978-83
[C] 1980-85
[D] 1985-90

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