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. Agricultural Income Tax revenue goes to which of the following governments in India?
[A] State Governments
[B] Central Government
[C] Collected by State Governments , delivered to Central Government
[D] Collected by Central Government, delivered to State Governments
Show Answer
Correct Answer: A [State Governments]
Notes:
The taxing powers of the central government encompass taxes on income (except agricultural income), excise on goods produced (other than alcohol), customs duties, and inter-state sale of goods.
The state governments are vested with the power to tax agricultural income, land and buildings, sale of goods (other than inter-state), and excise on alcohol. Local authorities such as Panchayat and Municipality also have power to levy some minor taxes.
2. Which option is not a core principle of progressive taxation?
[A] Ability to pay
[B] Reducing income inequality
[C] Administrative efficiency
[D] Encouraging work and investment incentives
Show Answer
Correct Answer: D [Encouraging work and investment incentives]
Notes:
Progressive taxation is based on the principle of ability to pay, with higher earners paying higher tax rates. It aims to reduce income inequality and can incorporate administrative efficiency. Encouraging work and investment incentives is not a core principle, as progressive taxes may reduce such incentives at higher income levels.
3. Which organization publishes The Global Enabling Trade Report?
[A] World Bank
[B] World Trade Organization
[C] World Economic Forum
[D] UNCTAD
Show Answer
Correct Answer: C [World Economic Forum]
Notes:
The Global Enabling Trade Report is published by the World Economic Forum. The first edition appeared in 2008. The report assesses the policies, institutions, and services facilitating trade globally. The World Economic Forum is headquartered in Geneva, Switzerland, and was established in 1971. The report includes the Enabling Trade Index, which ranks countries based on their trade enabling factors.
4. Who are eligible beneficiaries of the Reverse Mortgage Scheme?
[A] Government Employees
[B] Senior Citizens aged 60 years and above
[C] Unemployed Persons
[D] Working Professionals below 55 years
Show Answer
Correct Answer: B [Senior Citizens aged 60 years and above]
Notes:
The Reverse Mortgage Scheme in India was launched in 2007. The scheme targets senior citizens aged 60 years and above as beneficiaries. Joint borrowers may apply if at least one applicant is aged 60 years and the other not below 55 years. The scheme allows senior homeowners to mortgage property for regular payments from lenders. Ownership remains with the borrower during the loan tenure.
5. UDYAMI helpline is for?
[A] Large capital Industries
[B] Female entrepreneur
[C] Farmers introducing technology in Farming
[D] Micro, small & medium size enterprises
Show Answer
Correct Answer: D [Micro, small & medium size enterprises]
Notes:
Udyami Helpline with number 1800 180 6763 is a Call Centre of Ministry of Micro, Small and Medium Enterprises (MSME), Government of India. It was launched in 2010 to work as a single point facility for MSMEs needing different kinds of information and accessibility of Banks and other MSME-related organisations.
6. Consider the following statements regarding the Asian Infrastructure Investment Bank (AIIB):
- India participated in the founding of the bank and signed the Memorandum of Understanding in October 2014.
- The headquarters of the AIIB are located in Beijing, China, specifically at the Asia Financial Center in the Olympic Forest Park area.
- The AIIB currently has over 100 member states from around the world.
Which of the above statements is/are correct?
[A] Only 1
[B] 1 and 2 only
[C] 2 and 3 only
[D] 1, 2 and 3
Show Answer
Correct Answer: D [1, 2 and 3]
Notes:
All three statements are correct. India was among the founding members of the AIIB and signed the MoU in October 2014. The bank’s headquarters are indeed located in Beijing’s Asia Financial Center in the Olympic Forest Park area. As of now, AIIB has 111 members (including prospective members) from different continents, confirming it has over 100 member states.
7. Which method allows central banks to inject money when rates are near zero?
[A] Open Market Operation
[B] Reverse Repo
[C] Quantitative Easing
[D] Repo
Show Answer
Correct Answer: C [Quantitative Easing]
Notes:
Quantitative Easing is a monetary policy used by central banks to buy government securities or other securities from the market to increase money supply and encourage lending and investment. This policy is usually deployed when interest rates are close to zero and conventional monetary policy becomes ineffective. Quantitative Easing was used by the US Federal Reserve in 2008 and by the European Central Bank in 2015.
8. What do we call the money that is lent for more than one day but less than 15 days in the call money market?
[A] Call Money
[B] Term Money
[C] Notice Money
[D] None of the above
Show Answer
Correct Answer: C [Notice Money]
Notes:
The money that is lent for more than one day and less than 15 days in the call money market is referred to as “Notice Money”. Term Money refers to Money lent for 15 days or more in the Inter Bank Market.
9. What is the primary aim of enacting the SARFAESI Act?
[A] Recovering Loans
[B] Increasing Deposits
[C] Transparent appointment of Directors
[D] Reducing Corruptions and Scams
Show Answer
Correct Answer: A [Recovering Loans]
Notes:
The SARFAESI Act allowed the creation of asset reconstruction companies (ARC) and allowed banks to sell their non-performing assets to ARCs.
10. Which authority regulates NBFCs in India?
[A] Reserve Bank of India
[B] SEBI
[C] Government of India
[D] National Housing Board
Show Answer
Correct Answer: A [Reserve Bank of India]
Notes:
The Reserve Bank of India regulates NBFCs under Chapter III-B of the Reserve Bank of India Act, 1934. RBI issues registration and operational guidelines for NBFCs. As of 2026, the RBI introduced differentiated regulations for Type I and Type II NBFCs. Housing finance companies also registered with the National Housing Board come under RBI oversight after 2019 regulatory amendments.
