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 India’s rank in the global Travel and Tourism Development Index (TTDI) 2021?
[A] 45th
[B] 54th
[C] 68th
[D] 74th
Show Answer
Correct Answer: B [54th]
Notes:
Travel and Tourism Development Index (TTDI) is a biennial publication of the World Economic Forum(WEF) which evaluates the travel and tourism (T&T) competitiveness of economies and measures the set of factors that enable the sustainable development of the T&T sector of a country. Travel and Tourism Development Index (TTDI), 2021 is an update of Travel and Tourism Competitiveness Index (TTCI). As per the released ranking, India has been ranked as 54th in TTDI, 2021 out of 117 countries.
2. Which among the following can be called a Balanced Budget ?
[A] Total Revenue of the Government Exceeding Total Expenditure
[B] Total Expenditure of the Government Exceeding Total Revenue
[C] Total Revenue of the Government exactly equal to total Expenditure
[D] Total Expenditure of the Government exceeding or equal to Total Revenue
Show Answer
Correct Answer: C [Total Revenue of the Government exactly equal to total Expenditure]
Notes:
A balanced budget is a budget in which revenues are equal to expenditures. This means that the government is not spending more money than it is bringing in, and it is not running a deficit. A balanced budget is typically seen as a positive thing, because it means that the government is not taking on more debt in order to fund its operations.
3. In context with the macroeconomics , Philips Curve is a relationship between the rates of ___?
[A] Unemployment & Exim trade
[B] Unemployment and Inflation
[C] Unemployment and Demand
[D] Unemployment and Poverty
Show Answer
Correct Answer: B [Unemployment and Inflation]
Notes:
Phillips curve developed by A. W. Phillips says that the inflation and unemployment have a stable and inverse relationship; which means that higher inflation is associated with lower unemployment and vice versa. However, later it was proved that this curve is applicable only in the short-run, and in long-run, inflationary policies would not decrease unemployment.
4. Which among the following would result in the fall in asset prices?
[A] Low Liquidity in the Economy
[B] High Liquidity in the Economy
[C] RBI increasing the Reverse Repo Rates
[D] RBI allows more banks to play
Show Answer
Correct Answer: A [Low Liquidity in the Economy]
Notes:
Low liquidity in the economy means there is less money available for lending and investment. This scarcity can lead to decreased demand for assets, causing their prices to fall. In contrast, high liquidity typically boosts asset prices as more money circulates. The Reserve Bank of India (RBI) increasing reverse repo rates encourages banks to park funds with the RBI rather than lending them out, which can also reduce liquidity. Historically, low liquidity has been linked to economic downturns, leading to asset price declines.
5. What is the primary industry in the Middle East and North Africa (MENA) region?
[A] Manufacturing
[B] Petroleum
[C] Mines and Minerals
[D] Tourism & Hospitality
Show Answer
Correct Answer: B [Petroleum]
Notes:
The Middle East and North Africa (MENA) hosts a population of approximately 381 million, corresponding to around 6% of the global population. The region is renowned for its rich reserves of petroleum, thereby making petroleum the primary industry. These reserves have played a significant role in shaping the economic, political, and social spheres of the region. Besides petroleum, the region also has concentrations of other resources such as natural gas and mineral resources.
6. Which of the following types of economic planning is a feature of Mixed Economy?
[A] Indicative Planning
[B] Comprehensive Planning
[C] Imperative Planning
[D] Perspective Planning
Show Answer
Correct Answer: A [Indicative Planning]
Notes:
Indicative planning, which generally puts forward some broad principles and guidelines to achieve some specific goals. Indicative planning is flexible. It is peculiar to mixed economy and both the public and private sector co exist.
Comprehensive or imperative planning is used by socialist countries and each and every aspect of planning is controlled by the State. Perspective planning refers to long term planning for a period of 15, 20, 25 yrs, however objective of perspective planning can be achieved by breaking the period in 5‐7 yr plans.
7. The first bullet train in India has been proposed to run on which of the following routes?
[A] Delhi-Mumbai
[B] Mumbai-Ahmedabad
[C] Howrah-Mumbai
[D] Delhi-Howrah
Show Answer
Correct Answer: B [ Mumbai-Ahmedabad ]
Notes:
the first bullet train in India has been proposed to run between Mumbai and Ahmedabad. It will be a high-speed rail corridor connecting Mumbai with Ahmedabad, covering a distance of around 508 km. The project is based on the Japanese bullet train technology called Shinkansen. It will have a maximum speed of 320 km/hr and is expected to reduce travel time between the two cities from 8 hours to around 2 hours. The proposed route will have 12 stations across Gujarat and Maharashtra. The bullet train project is being implemented by the National High Speed Rail Corporation Limited (NHSRCL). It is a collaboration between Indian Railways and Japan’s Shinkansen Technology. The estimated project cost is around ₹1.1 lakh crore and is being majorly funded by a soft loan from Japan.
8. Chit funds in India are governed and regulated by _?
[A] SEBI
[B] RBI
[C] State governments
[D] Central government
Show Answer
Correct Answer: C [ State governments ]
Notes:
Chit funds in India are governed by the Chit Funds Act, 1982. Under this Act, the chit fund businesses can be registered and regulated only by the respective State Governments. Regulator of chit funds is the Registrar of Chits appointed by respective state governments under Section 61 of Chit Funds Act.
9. Consider the following statements:
- Stock Exchanges and Future Markets are placed under the union list of Indian Constitution
- Bombay Cotton Trade Association was the first organized futures market in India
Which of the above statements is/are correct?
[A] 1 Only
[B] 2 Only
[C] Both 1 & 2
[D] Neither 1 nor 2
Show Answer
Correct Answer: C [ Both 1 & 2 ]
Notes:
Both are correct statements
First statement is correct because stock exchanges and future markets both are placed under the union list of Indian Constitution. Second statement is also correct because the first organized futures market was established in 1875, under the name of ‘Bombay Cotton Trade Association’ to trade in cotton derivative contracts.
10. Consider the following statements about the Asian Infrastructure Investment Bank (AIIB):
- India has signed as well as ratified the articles to become the member state of the bank
- Its headquarters are located at Beijing, China
- It aims at providing Sovereign-backed Financing as well as Non-sovereign-backed Financing for Projects.
Which of the above statements is/are correct?
[A] 1 Only
[B] 1 & 2 Only
[C] 2 Only
[D] 1, 2 & 3
Show Answer
Correct Answer: D [1, 2 & 3]
Notes:
All given statements are correct
