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 called India’s market watch dog?
[A] RBI
[B] SEBI
[C] NABARD
[D] SBI
Show Answer
Correct Answer: B [SEBI]
Notes:
The correct answer is SEBI (Securities and Exchange Board of India). SEBI was established in 1988 and became a statutory body in 1992. It regulates the securities market in India, protecting investor interests and promoting the development of the market. The RBI (Reserve Bank of India) primarily oversees monetary policy and banking regulation, while BSE (Bombay Stock Exchange) is a stock exchange, not a regulatory body.
2. The International trade of Nylon Fibers comes under the jurisdiction of which of the following ministries in India?
[A] Ministry of Textiles
[B] Ministry of Chemicals and Fertilizers
[C] Ministry of Petroleum
[D] Ministry of Commerce
Show Answer
Correct Answer: C [Ministry of Petroleum]
Notes:
The International trade of Nylon Fibers in India falls under the Ministry of Chemicals and Fertilizers. This ministry oversees the production and regulation of chemical products, including synthetic fibers like nylon, which is a polymer made from petrochemicals. Nylon was first introduced in 1935 by DuPont and is widely used in textiles, automotive, and industrial applications.
3. Which country is the world’s largest exporter of tea?
[A] India
[B] China
[C] Sri Lanka
[D] Kenya
Show Answer
Correct Answer: B [China]
Notes:
In 2024, China led global tea exports with 374,100 tonnes, dominating the market. Green tea constituted around 86.57% of China’s tea exports. Export value reached about US $1.419 billion, reinforcing China’s top position among tea-exporting nations worldwide.
4. Which of the following decides the Minimum Support Prices on behalf of the Government of India?
[A] Ministry of Agriculture
[B] Cabinet Committee on Economic Affairs
[C] Commission for Agricultural Costs & Prices
[D] None of Them
Show Answer
Correct Answer: C [Commission for Agricultural Costs & Prices]
Notes:
The Commission for Agricultural Costs & Prices (CACP) is an attached office of the Ministry of Agriculture and Farmers Welfare, Government of India. It came into existence in January 1965. It is mandated to recommend minimum support prices (MSPs) to incentivize the cultivators to adopt modern technology, and raise productivity and overall grain production in line with the emerging demand patterns in the country.
5. Investment in which among the following is the Most Risk Free asset of a Bank as per the RBI guidelines?
[A] Housing Loans
[B] Government Approved Securities
[C] Venture Capital Investments
[D] Loans against Jewellery
Show Answer
Correct Answer: B [Government Approved Securities]
6. Index of Industrial production is released by_
[A] Central Statistical Office
[B] Ministry of Commerce and Industry
[C] Ministry of Economic affairs
[D] Competition Commission of India
Show Answer
Correct Answer: A [ Central Statistical Office ]
Notes:
IIP data is released every month by Central Statistical Organization. The individual items considered under IIP are categorised into three sectors: mining, manufacturing and electricity sector.
7. 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.
8. In which of the following sessions of Indian National Congress, it was stated by Congress that the object of the planning in the country has to be “Socialist Pattern” and not absolute “Socialism”, thus paving the way for a mixed economy in India?
[A] 1953 Hyderabad Session
[B] 1954 Kalyani Session
[C] 1955 Avadi Session
[D] 1956 Amritsar Session
Show Answer
Correct Answer: C [1955 Avadi Session]
Notes:
In the Avadi session of Indian National Congress in 1955 the Congress stated that object of the planning has to be “Socialist Pattern” and not absolute “Socialism”. The Socialist pattern meant that India has to be a mixed economy where private & public sector would coexist. In the same year, Imperial Bank of India, which came into being in 1921, came under the public sector and became “State Bank of India” in 1955.
9. Which among the following is/are correct regarding Call Money?
[A] No Collateral is required in Call Money transaction
[B] It is the money lent/borrowed for maximum period of 30 days
[C] It is the money lent/borrowed for maximum period of 45 days
[D] Banks borrow primarily from customers
Show Answer
Correct Answer: A [ No Collateral is required in Call Money transaction ]
Notes:
Call money is the money lent/borrowed for maximum period of 14 days. No Collateral is required in Call Money transaction. Banks borrow primarily from the inter-bank (call money) market.
10. Any change in flow of funds and the demand of them, is clearly reflected in which of the following?
[A] Call money market
[B] Money market
[C] Repo market
[D] Commercial bill market
Show Answer
Correct Answer: A [Call money market]
Notes:
Call money market reflects any change in flow of funds and the demand of them.
