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. These questions are part of GKToday’s 35000+ MCQs Bank Course in GKToday Android App

1. Which of the following was the first paper currency issued by RBI?

[A] Rs 1-Note
[B] Rs 2-Note
[C] Rs 5 Note
[D] Rs 100 Note

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2. 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.

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3. Which among the following is a suitable term for the state of economy in which economic activity is slowing down but wages and prices continue to rise ?

[A] Inflation
[B] Deflation
[C] Skweflation
[D] Stagflation

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4. Which among the following correctly categorizes Collateralized Borrowing and Lending Obligation?

[A] A market operation
[B] A money market instrument
[C] A clearing system
[D] A Scheme of Reserve Bank of India

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5. Which among the following plan document has a subtitle ” Inclusive growth” ?

[A] 10th Five year Plan
[B] 11th Five year Plan
[C] National Solar Mission
[D] Bhart Nirman

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6. In context with the banking business, which among the following is a correct definition of liquidity risk?

[A] Risk arising from funding of long term assets by short term liabilities or funding of short term assets by long term liabilities
[B] Risk arising from adverse movement of interest rates during a liquidity crunch in the markets
[C] Risk arising from the adverse movement of the value of the assets /investments etc.
[D] Risk arising from a party becoming defaulter

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7. For the first time in India, in which of the following Budgets “basic reforms in the international financial and trading system ” was stressed in India?

[A] 1969
[B] 1980
[C] 1983
[D] 1984

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8. Which among the following are two maximum revenue yielding groups of Indirect taxes in India?

[A] Custom and General Sales Tax
[B] Union Excise Duties and General Sales tax
[C] Union Excise Duties and Customs
[D] Union Excise duties and state Excise duties

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9. Consider the following: 

  1. Minor Irrigation Scheme: CCA less than 2000 Hectares 
  2. Medium Irrigation Scheme : CCA more than 2000 Hectares but less than 10000 Hectares 
  3. Major Irrigation Scheme : CCA more than 10000 Hectares 

Which among the above statements is / are correct?

[A] Only 1 and 2 are correct
[B] Only 2 and 3 are correct
[C] all are correct
[D] all are incorrect

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10. It has been generally viewed that when an economy grows beyond its potential growth rate, it causes inflation. How does growing faster than the potential rate cause inflation?

[A] Fast growth causes quick resource utilization to fulfill the higher demand
[B] Fast growth causes more employment opportunities which leads to rise in prices
[C] Fast growth causes more productivity which leads to higher supply and cost push inflation
[D] All of above mentioned reasons

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