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. Where do the Commercial Banks keep the liquid assets under the Statutory Liquidity Ratio?
[A] With RBI
[B] With other banks
[C] In the Market
[D] With Themselves
Show Answer
Correct Answer: D [With Themselves]
Notes:
Banks in India are required to maintain a specified minimum Statutory Liquidity Ratio (SLR) of their net demand and time liabilities in the form of liquid assets like cash, gold or approved securities. The liquid assets under SLR are kept by the banks themselves in their own custody.
2. 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
Show Answer
Correct Answer: B [11th Five year Plan]
Notes:
The correct answer is the 11th Five Year Plan. Launched in 2007, it emphasized “Inclusive Growth” to address poverty and inequality in India. This plan aimed to enhance social and economic development, focusing on sectors like education, health, and rural development. The 11th Plan set a target of 9% GDP growth, which indicates the importance of inclusive policies for sustainable development.
3. Which among the following has been adopted by the Tendulakar committee for measuring poverty?
[A] Welfare measures
[B] Cost of Living
[C] Inequality & growth
[D] mobility/vulnerability analyses
Show Answer
Correct Answer: B [Cost of Living]
Notes:
The Tendulkar Committee, established in 2005, adopted the “Cost of Living” approach for measuring poverty in India. This method considers the consumption patterns of the poor and adjusts poverty lines based on regional price variations. The committee aimed to provide a more accurate reflection of poverty by incorporating essential goods and services into the poverty measurement framework. This approach led to a revised poverty line that recognized the changing economic conditions and living standards in India.
4. Which of the following sectors is regulated by IRDA ?
[A] Insurance
[B] Industry
[C] Finance
[D] Investment
Show Answer
Correct Answer: A [Insurance]
Notes:
The Insurance Regulatory and Development Authority of India (IRDAI) is the national agency of Government of India (GoI) for the Indian insurance industry. It is the regulatory body established under the Insurance Regulatory and Development Authority Act, 1999 and reports to Ministry of finance. Its headquarters is in Hyderabad, Telangana.
5. Which among the following is used for a situation of “Too much money chasing too few goods?
[A] Demand Pull Inflation
[B] Cost pull inflation
[C] Stagflation
[D] Hyperinflation
Show Answer
Correct Answer: A [Demand Pull Inflation]
Notes:
Demand-pull inflation refers to the inflation from rapid growth in aggregate demand and when excess demand causes ‘too much money chasing too few goods.’ This generally happens when an economy is growing at a faster rate.
6. 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
Show Answer
Correct Answer: C [Pakistan]
Notes:
Human Development Report was first launched in 1990 by the Pakistani Economist Mahbub ul Haq and Indian Nobel laureate Amartya Sen.
7. What was the name of the world currency that John Maynard Keynes conceptualized in the years 1940-42 and proposed at the Bretton Woods Conference?
[A] Whuffie
[B] Bancor
[C] Wocu
[D] Terra
Show Answer
Correct Answer: B [Bancor]
Notes:
John Maynard Keynes proposed the “Bancor” as a world currency during the Bretton Woods Conference in 1944. The Bancor was intended to facilitate international trade and stabilize exchange rates. Keynes envisioned it as a unit of account to address imbalances in global trade. Although the Bancor was not adopted, the conference led to the establishment of the International Monetary Fund (IMF) and the World Bank, shaping the post-World War II economic order.
8. The mosquito fern or Azolla is one of the most important bio fertilizers. In association with which among the following Azolla acts as a biofertilizer?
[A] Bacteria
[B] Blue-green algae
[C] Fungus
[D] Green algae
Show Answer
Correct Answer: B [ Blue-green algae]
Notes:
Bio-fertilizers such as Rhizobium, Azotobacter, Azospirillum and blue green algae (BGA) have been in use a long time. Anabaena, a blue green alga in association with water fern Azolla contributes nitrogen and also enriches soils with organic matter.
9. Which of the following bodies procures, distributes, exports and imports agricultural commodities?
[A] FCI
[B] NAFED
[C] NABARD
[D] All of them
Show Answer
Correct Answer: B [ NAFED ]
Notes:
NAFED is the apex body in cooperative sector and deals in procurement , distribution, export and import of selected agricultural commodities.
10. If a company is ‘unlimited’ in India, it implies that there is no limit on __:
[A] Number of shares it can issue in market
[B] Liability of its members
[C] Amount of investment by its promoters
[D] All of the above
Show Answer
Correct Answer: B [ Liability of its members ]
Notes:
The unlimited company is a company where there is no limit on the liability of its members.
