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. Which among the following is an anti-inflationary measure?
[A] Stagflation
[B] Hyper inflation
[C] Disinflation
[D] Deflation

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2. Which of the following indices measures gender inequalities in human development achievements across health, education, and economic resources?
[A] Gender Inequality Index
[B] Gender Development Index
[C] Gender Empowerment Measure
[D] Human Development Index

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3. When does RBI sell government securities via Open Market Operations?
[A] During liquidity deficit from heavy government borrowing
[B] When foreign funds inflow is low
[C] When banks face fund shortages
[D] During surplus liquidity from large foreign capital inflows

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4. What was the nationality of Mahbub ul Haq, one of the pioneers of Human development theory and co-founder of the Human Development Report?
[A] Uk
[B] USA
[C] Pakistan
[D] India

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5. Which is NOT a qualitative instrument of credit control in India?
[A] Moral Suasion
[B] Credit Rationing
[C] Cash Reserve Ratio (CRR)
[D] Margin Requirements

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6. With reference to the business, what is working capital?
[A] The investment made in the business
[B] Fixed assets
[C] Circulating assets- stocks, cash and debts owed to the business
[D] Amount spent on machinery or for building up stock

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7. Which of the following is / are auctioned in Open Market Operations?
[A] Shares
[B] Debentures
[C] Securities
[D] Bullion

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8. What is the objective of the Central Government in creating the “Non-lapsable Central Pool of Resources”?
[A] To provide development funding in Naxalite affected areas
[B] To provide additional development grant to most backward 200 districts all over country
[C] To provide time to time fiscal stimulation to the economy
[D] To provide development funding to North East and Sikkim

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9. Which is the last resort in deficit financing by the government?
[A] Borrowing from Foreign Sources
[B] Borrowing from Domestic Sources
[C] Printing of Currency (Monetizing the Debt)
[D] External Grants

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10. Directorate General of foreign Trade (DGFT) functions under which of the following ministries?
[A] Ministry of Commerce and Industry
[B] Ministry of Finance
[C] Home Ministry
[D] Ministry of Finance

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