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 among the following bodies estimates the national income of India?
[A] Office of the Economic Advisor
[B] National Statistical Office (NSO)
[C] Central Statistical Office
[D] Ministry of Finance
Show Answer
Correct Answer: B [National Statistical Office (NSO)]
Notes:
India’s national income and related macroeconomic estimates are now compiled by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation. The earlier Central Statistical Office (CSO) was merged with the National Sample Survey Office in 2019 to form the NSO.
2. Rs. 100 notes are printed at which locations in India?
[A] Nashik and Dewas only
[B] Mysore and Salboni only
[C] Nashik, Dewas, Mysore and Salboni only
[D] Noida and Hoshangabad
Show Answer
Correct Answer: C [Nashik, Dewas, Mysore and Salboni only]
Notes:
Indian banknotes are printed at four currency presses in the country. Two presses operated by SPMCIL are located at Nashik and Dewas, while the other two presses run by BRBNMPL are at Mysuru and Salboni. These four locations together handle the printing of ₹100 notes and other denominations as per RBI requirements. Hence, the correct answer is the combination of all four printing locations.
3. Which statement defines a balanced budget?
[A] Total expenditure exceeds total revenue
[B] Total revenue equals total expenditure
[C] Total revenue exceeds total expenditure
[D] Total revenue equals or exceeds expenditure
Show Answer
Correct Answer: B [Total revenue equals total expenditure]
Notes:
A balanced budget occurs when a government’s total revenue matches its total expenditure within a fiscal year. The concept is found in public finance literature and is used by various countries’ budgets. The Government of India’s budgets list balanced budgets when revenue and expenditure are equal with no deficit or surplus.
4. In which of the following countries, International Rice Research center is Located?
[A] Thailand
[B] Malaysia
[C] Philippines
[D] Indonesia
Show Answer
Correct Answer: C [Philippines]
Notes:
The International Rice Research Institute (IRRI) is headquartered in Philippines and has operating offices in seventeen countries. The Institute was originally established in the yeat 1960. It aims to reduce poverty and hunger, improve the health of rice farmers and consumers.
5. Who among the following are the beneficiaries of Ways and Means Advances (WMA) facility of Reserve Bank of India?
[A] Commercial Banks
[B] Regional Rural banks
[C] State Governments
[D] Authorized Dealers of Foreign Exchanges
Show Answer
Correct Answer: C [State Governments]
Notes:
The Reserve Bank of India (RBI) provides temporary loan facilities to the central and state governments. This loan facility is called Ways and Means Advances (WMA).
6. 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
Show Answer
Correct Answer: D [Open Market Operations]
Notes:
Qualitative or selective methods of credit control refers to those methods which limit the nature or variety of money supply rather than its quantity. Such methods include regulation of margin requirement, credit rationing, regulation of consumer credit and direct action. Open Market Operations is a quantitative method of credit control.
7. Which OPEC member is the largest oil producer in 2026?
[A] Venezuela
[B] Iran
[C] Saudi Arabia
[D] Canada
Show Answer
Correct Answer: C [Saudi Arabia]
Notes:
Saudi Arabia is the top oil producer in OPEC, with vast reserves, low extraction costs, and significant spare production capacity managed by Saudi Aramco, granting major influence over global oil markets.
8. What are low-priced, speculative, high-risk stocks commonly called?
[A] Green Stock
[B] Penny Stock
[C] Concentrated Stock
[D] Microcap Stock
Show Answer
Correct Answer: B [Penny Stock]
Notes:
Penny stocks are low-priced shares, usually of small companies, that are considered highly speculative and risky. They often have low liquidity, wide price swings, and limited public information, which makes them vulnerable to sharp gains or losses. The term refers to the price and risk profile of the stock, not to whether it is listed on a particular exchange. Hence, penny stock is the correct answer.
9. Which of the following is / are auctioned in Open Market Operations?
[A] Shares
[B] Debentures
[C] Securities
[D] Bullion
Show Answer
Correct Answer: C [ Securities ]
Notes:
Open Market Operations refer to the purchase and sale of the Government securities (G-Secs) by RBI from / to market.
10. Imposing an Import quota helps in__:
- correcting unfavourable balance of payments
- improving balance of trade
- protecting domestic industries
- promoting exports
Select the correct option from the codes given below:
[A] Only 1 & 2
[B] Only 1 & 3
[C] Only 1, 2 & 3
[D] 1, 2, 3 & 4
Show Answer
Correct Answer: C [ Only 1, 2 & 3 ]
Notes:
An import restriction imposed on imported goods, to reduce the quantity of certain goods allowed into a country from a particular exporting country, in a stated period. The purpose may be to conserve foreign currency, if there is an unfavourable balance of payments, or to protect the home market against foreign competition (see protective duty). Quotas are usually enforced by means of import licenses.
