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 autonomous increase in expenditure should result in an increase in a country’s real GNP only if ?
[A] The country’s balance of trade is negative
[B] The country’s economy is working under conditions of less than full employment
[C] It is government expenditure
[D] The multiplier is at least 1.5

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2. When a person has a saving account in the bank , the bank assumes the position of ___?
[A] Debtor
[B] Creditor
[C] Agency
[D] Depositor

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3. Who was the first Deputy Chairman of India’s Planning Commission?
[A] V.T. Krishnamachari
[B] C.M. Trivedi
[C] Gulzari Lal Nanda
[D] Ashok Mehta

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4. Consider the following statements about the Government Securities (G-sec) market in India:

  1. Speculation exists in the G-sec market, particularly through activities such as margin trading and short-term position trading.
  2. Institutional investors dominate the G-sec market, accounting for the majority of trading volume.

Which of the above statements is/are correct?

[A] Only 1 is correct
[B] Only 2 is correct
[C] Both 1 and 2 are correct
[D] Neither 1 nor 2 is correct

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5. Which is India’s largest investor in the debt market?
[A] LIC of India
[B] ICICI Bank
[C] State Bank of India
[D] EPFO

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6. With reference to the World Trade Organization, the principle of reciprocity within WTO framework envisages?
[A] Lowering of trade barriers by a State to be matched in return.
[B] Creation of trade barriers on uniform basis
[C] Protection of intellectual property rights.
[D] Enhanced role for State controls on trade

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7. The term OTDS is mainly linked to which WTO negotiation area?
[A] Intellectual Property & Geographical Indications
[B] Non-Agricultural Market Access (NAMA)
[C] Agriculture
[D] Services Trade

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8. At which rate does RBI borrow funds from commercial banks?
[A] Bank Rate
[B] Repo Rate
[C] Reverse Repo Rate
[D] Statutory Liquidity Ratio

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9. In which of the following market forms a firm does not exercise control over price?
[A] Monopoly
[B] Mixed Competition
[C] Perfect competition
[D] Oligopoly

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10. NABARD, which is set up to provide loans for rural development, belongs to which of the following categories? (UPSC Prelims 1982)
[A] Bank
[B] Board
[C] Block
[D] Department

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