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. An investor or speculator who subscribes to a new issue with the intention of selling them soon after allotment to realize a quick profit is called?
[A] Stag
[B] Tall
[C] Bull
[D] Bear

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2. India’s first Export Promotion Industrial park was opened in:
[A] Delhi
[B] Nagpur
[C] Jaipur
[D] Bangalore

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3. What is the main purpose of margin requirements in securities trading?
[A] To fulfill central bank regulatory mandates
[B] To comply with Basel III standards
[C] To protect lenders by requiring sufficient borrower equity
[D] To increase brokerage firm profits

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4. Which body recommends Minimum Support Prices to the Government of India?
[A] Ministry of Agriculture and Farmers Welfare
[B] Cabinet Committee on Economic Affairs
[C] State Governments
[D] Commission for Agricultural Costs and Prices (CACP)

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5. What is it called when government prints money to cover budget gaps?
[A] Fiscal Deficit
[B] Fiscal Stimulation
[C] Deficit Financing
[D] Differential Accumulation

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6. What is the correct definition of an inflationary gap?
[A] The difference between the price of a product at two times
[B] The difference between actual GDP and potential GDP when actual GDP exceeds potential GDP
[C] The difference between national expenditure and total expenditure
[D] The difference between estimated fiscal deficit and actual fiscal deficit

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7. Consider the following fiscal policy measures that a government might adopt to combat inflation:

  1. Decreasing public expenditure
  2. Reducing public debt
  3. Delaying the payment of old debts
  4. Increasing taxes

Which of the above are correct selective measures?

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

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8. If interest payments are subtracted from gross fiscal deficit, the remainder will be__:
[A] Revenue deficit
[B] Gross primary deficit
[C] Capital deficit
[D] Budgetary deficit

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9. In context with banking in India, a Custodial Account is created for __:
[A] Illiterates
[B] Women
[C] Minor persons
[D] Senior Citizens

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10. Where are the Headquarters of New Development Bank situated?
[A] Manila (Philippines)
[B] Shanghai (China)
[C] New Delhi (India)
[D] Beijing (China)

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