Indian Economy MCQs
Indian Economy Multiple Choice Questions (MCQs) for State and UPSC Civil Services Examinations. Objective Questions on Indian Economy for competitive examinations.
1. The Government of India is planning to allow 200,000 tones of duty-free sugar imports. Which of the following is a correct statement about Sugar production and consumption of sugar in India?
[A] India is world’s largest sugar producer
[B] India is world’s largest sugar consumer
[C] India’s largest sugar producing state is Uttar Pradesh
[D] Sugar farming in India is concentrated in Deccan peninsula only.
Show Answer
Correct Answer: B [ India is world’s largest sugar consumer ]
Notes:
Rest of the three statements are incorrect. India is largest consumer but largest producer of sugar is Brazil. India’s largest sugar producing state is Maharashtra while sugarcane is produced in maximum quantity in UP. Sugar farming is not concentrated in Deccan peninsula.
2. “Bad money (if not limited in quantity) drives good money out of circulation”. Which law in economics says this?
[A] Keynes’ law
[B] Wagner’s law
[C] Gresham’s law
[D] Grimm’s law
Show Answer
Correct Answer: C [Gresham’s law]
Notes:
Gresham’s law states that “bad money drives out good”. For example, if there are two forms of commodity money in circulation, which are accepted by law as having similar face value, the more valuable commodity will gradually disappear from circulation.
3. Highest percentage of nitrogen is found in which among the following fertilizers among the given options?
[A] Calcium ammonium nitrate
[B] Ammonium nitrate
[C] Calcium nitrate
[D] Urea
Show Answer
Correct Answer: D [Urea]
Notes:
The agricultural industry widely uses urea, a white crystalline solid containing 46 percent nitrogen as an animal feed additive and fertilizer. Urea has the highest nitrogen content of all solid fertilizers at 46% N.
4. In which year central government abolished banking Services Recruitment Boards?
[A] 1995
[B] 1997
[C] 1999
[D] 2002
Show Answer
Correct Answer: D [2002]
Notes:
In 1978 Banking Services Recruitment Boards (BSRBs) were established to have a uniform standards & eligibility criteria for recruitment of personnel in public sector banks. They were abolished in May, 2002 after enactment of Banking Services Commission (Repeal) Bill, 2002.
5. Which among the following authority decides upon any issues regarding the revision of fee collected as Development Fee from Airports in India?
[A] Airport Authority of India
[B] Airports Economic Regulatory Authority
[C] Ministry of Civil Aviation
[D] Secretary , Ministry of Civil Aviation
Show Answer
Correct Answer: B [Airports Economic Regulatory Authority]
Notes:
The Airports Economic Regulatory Authority (AERA) Bill 2007 ensures that the watchdog monitors performance standards of airports and regulate tariff and other charges for aeronautical services including Airport
6. Consider the following:
- Cheque
- Bill of exchange
- Promissory Note
Which among the above 3 instruments can be crossed?
[A] 1 only
[B] 3 only
[C] 1 & 2 only
[D] all of them
Show Answer
Correct Answer: C [1 & 2 only]
Notes:
A promissory note can not be crossed, while rest two can be crossed.
7. What is the minimum maturity on Certificates of Deposit in India?
[A] 7 days
[B] 10 days
[C] 15 days
[D] 30 days
Show Answer
Correct Answer: A [7 days]
Notes:
CDs issued by banks should not have the maturity less than seven days and not more than one year. Financial Institutions are allowed to issue CDs for a period between 1 year and up to 3 year
8. Sale of securities by RBI can be placed in which of the following categories?
[A] Reverse Repo Auction
[B] Repo Auction
[C] Open Market Operations
[D] Ways and means advances
Show Answer
Correct Answer: A [Reverse Repo Auction]
9. In Financial Language, Fixed to Floating and Floating to Floating are used in context with which among the following?
[A] Interest rates
[B] Swaps
[C] Foreign Exchange Rates
[D] None of them
Show Answer
Correct Answer: B [Swaps]
10. A company wishes to establish a Multi Product Special Economic Zone in Manipur. What is the minimum area requirement for this company to fulfill for getting approval for that SEZ ?
[A] 5000 Hectare
[B] 1000 Hectare
[C] 500 Hectare
[D] 200 Hectare
Show Answer
Correct Answer: D [200 Hectare]
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