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. What is the number of members in the Monetary Policy Committee (MPC)?
[A] 4
[B] 5
[C] 6
[D] 7
Show Answer
Correct Answer: C [ 6 ]
Notes:
Monetary Policy Committee (MPC) committee comprises six members – three officials of the Reserve Bank of India and three external members nominated by the Government of India.
2. What is the Bank Rate in relation to RBI and commercial banks?
[A] RBI lends long-term loans to banks without requiring collateral or repurchase agreement
[B] RBI lends short-term loans to banks with government securities as collateral
[C] Commercial banks lend to customers
[D] Banks borrow overnight funds from RBI
Show Answer
Correct Answer: A [RBI lends long-term loans to banks without requiring collateral or repurchase agreement]
Notes:
The Bank Rate is the interest rate at which the Reserve Bank of India lends long-term funds to commercial banks without any collateral or repurchase agreement. The RBI notifies the Bank Rate, and it is generally above the Repo Rate. The Bank Rate has been used by RBI since the Reserve Bank of India Act, 1934, to manage liquidity and regulate money supply.
3. 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
4. In which year, the practice of presenting the railway budget separate from the general budget (or vice versa in true sense) started in India?
[A] 1920
[B] 1924
[C] 1925
[D] 1930
Show Answer
Correct Answer: B [1924]
Notes:
In the year 1924, the practice of presenting the railway budget separately from the general budget (or vice versa in true sense) started in India.
5. What percentage of India’s natural rubber is produced by Kerala?
[A] 78%
[B] 60%
[C] 70%
[D] 75%
Show Answer
Correct Answer: A [78%]
Notes:
Kerala produces approximately 78% of India’s natural rubber. Major rubber plantations in Kerala span around 400,000 hectares. The state’s tropical climate supports high rubber yield. Kerala has historically led rubber production in India, a trend continuing since the late 20th century. Plantation development began under British colonial rule in the early 1900s. Thrissur, Kottayam, and Pathanamthitta are key rubber-producing districts.
6. Who among the following heads the Trade and Economic Relations Committee (TERC) in India?
[A] Prime Minister
[B] Minister of Commerce
[C] Finance Minister
[D] Finance Secretary
Show Answer
Correct Answer: A [Prime Minister]
Notes:
The Trade and Economic Relations Committee (TERC) in India is headed by the Prime Minister. This committee was established to enhance India’s trade relations and economic policies, reflecting the government’s focus on international trade as a key driver of economic growth. The Prime Minister’s leadership underscores the importance of trade in India’s economic strategy.
7. Which among the following is a money market instrument of shortest tenure?
[A] Notice money
[B] Call money
[C] Near Money
[D] Term Money
Show Answer
Correct Answer: B [ Call money ]
Notes:
The call money is the short-term money market instrument where money is borrowed or lent on demand for a day. It is also known as overnight money market instrument. Intervening holidays and/or Sunday are excluded for this purpose. Thus, it is money borrowed on a day and repaid on the next working day (irrespective of the number of intervening holidays).
8. The Consumer Welfare Fund is mainly financed through which source?
[A] Excise duty on manufactured goods
[B] Mandatory business contributions
[C] Unclaimed duty refunds and unused indirect tax
[D] Voluntary consumer donations
Show Answer
Correct Answer: C [Unclaimed duty refunds and unused indirect tax]
Notes:
The Consumer Welfare Fund was established under Section 57 of the CGST Act, 2017. Its main sources are unclaimed duty refunds under Central Excise and Customs Acts and unutilized indirect tax amounts not refundable to individuals. Receipts under GST, including unclaimed tax refunds, also finance the fund. The Department of Consumer Affairs administers the fund.
9. What does the labour force participation rate measure?
[A] The persons who are either employed or actively seeking work
[B] The persons who are employed only
[C] The persons capable to work but not seeking employment
[D] None of them
Show Answer
Correct Answer: A [The persons who are either employed or actively seeking work]
Notes:
The labour force participation rate measures the proportion of the working-age population that is either employed or actively seeking employment. It is calculated as the percentage of people aged 15 or above who are either working or looking for work. It does not include persons not actively searching for jobs. The rate is published by the Ministry of Labour and Employment in India.
10. Which of the following operations are undertaken by Small Finance Banks?
[A] Accepting Deposits
[B] Disbursing small loans
[C] Sell Insurance Products
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
The Small Finance Banks can accept deposits and lend to unserved and underserved sections including small business units, small and marginal farmers, micro and small industries and unorganised sector entities. It can also distribute mutual fund units, insurance products, pension products, etc. with the prior approval of the RBI.
