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. Shankar-6 or Sankar-6 is a variety of which of the following commodities?
[A] Mustard
[B] Cotton
[C] Groundnut
[D] Soyabean
Show Answer
Correct Answer: B [ Cotton ]
Notes:It is a much traded Cotton variety. Some other varieties are:
- Suvin – Known for its long staple length and premium quality, it is a hybrid of Egyptian and Indian cotton.
- DCH-32 – A hybrid cotton known for its extra-long staple.
- Bunny – A high-yielding variety of cotton.
- Jaydhar – An indigenous variety grown mainly in Maharashtra.
- LH-1556 – A hybrid variety, often grown in Northern India.
- Varalaxmi – A hybrid variety popular in South India.
- Shankar-4 – Similar to Shankar-6, this variety is also known for its medium staple cotton.
- Mech-184 – A genetically modified (Bt) cotton variety.
2. What was the period of India’s First Five Year Plan?
[A] 1951-56
[B] 1961-66
[C] 1969-1974
[D] 1979-1984
Show Answer
Correct Answer: A [1951-56]
Notes:
India’s First Five-year Plan was implemented from the year 1951 till 1956. It mainly focused on the development of primary sector. The Plan was based on the Harrod–Domar model implemented with some modifications.
3. Consider the following items with respect to the classification of “Total Food Grains” in India:
- Rice
- Wheat
- Coarse cereals (such as millet, barley, sorghum)
- Pulses (including lentils, chickpeas)
Which of the above are included in the definition of Total Food Grains by Indian agricultural standards?
[A] Only 1 and 2
[B] 1, 2, 3 and 4
[C] 1, 2 and 3
[D] 1, 2 and 4
Show Answer
Correct Answer: B [1, 2, 3 and 4]
Notes:
Total Food Grains, as classified by Indian agricultural authorities, comprise rice, wheat, all types of coarse cereals (millet, barley, sorghum, etc.), and pulses. These groups are reported together in agriculture statistics and policy documents, as both cereals and pulses are major staple food grains cultivated and consumed across India.
4. Who among the following heads the Trade and Economic Relations Committee (TERC) in India?
[A] Prime Minister
[B] Minister of Commerce
[C] Finance Minister
[D] Finance Secretary
Show Answer
Correct Answer: A [Prime Minister]
Notes:
The Trade and Economic Relations Committee (TERC) in India is headed by the Prime Minister. This committee was established to enhance India’s trade relations and economic policies, reflecting the government’s focus on international trade as a key driver of economic growth. The Prime Minister’s leadership underscores the importance of trade in India’s economic strategy.
5. Which port exports the highest value of seafood from India?
[A] Visakhapatnam
[B] Tuticorin
[C] Kochi
[D] Jawaharlal Nehru Port Authority (JNPT)
Show Answer
Correct Answer: A [Visakhapatnam]
Notes:
Visakhapatnam Port handled 2.19 billion or 29.72% of India’s seafood exports in FY24. In FY25, Visakhapatnam’s seafood export value exceeded 2 billion out of India’s total 7.45 billion. The port exported 314,199 tonnes, while JNPT exported 240,253 tonnes valued at 779.49 million. Andhra Pradesh’s aquaculture, mainly Vanammei shrimp, supports Visakhapatnam’s status as the top exporter.
6. Which option defines ‘shares outstanding’ most accurately?
[A] Total shares authorized minus never issued shares
[B] Total issued shares minus treasury shares
[C] Shares held only by institutional investors and insiders
[D] All authorized shares sold to investors
Show Answer
Correct Answer: B [Total issued shares minus treasury shares]
Notes:
Shares outstanding equals total issued shares minus treasury shares. Treasury shares are shares repurchased by the company and held in its treasury. Shares outstanding are used in calculating market capitalization and earnings per share. Only shares held by external shareholders are considered outstanding. This figure changes when the company buys back or issues new shares.
7. Which method allows central banks to inject money when rates are near zero?
[A] Open Market Operation
[B] Reverse Repo
[C] Quantitative Easing
[D] Repo
Show Answer
Correct Answer: C [Quantitative Easing]
Notes:
Quantitative Easing is a monetary policy used by central banks to buy government securities or other securities from the market to increase money supply and encourage lending and investment. This policy is usually deployed when interest rates are close to zero and conventional monetary policy becomes ineffective. Quantitative Easing was used by the US Federal Reserve in 2008 and by the European Central Bank in 2015.
8. Which of these is used as promise from a bank to make a payment assuming certain conditions are met?
[A] Cash Credit
[B] Over Draft
[C] Letter of Credit
[D] Term Loan
Show Answer
Correct Answer: C [Letter of Credit]
Notes:
A letter of credit is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount.
9. What does financial inclusion primarily refer to in India?
[A] Affordable financial services
[B] Affordable ration
[C] Affordable housing
[D] Affordable education
Show Answer
Correct Answer: A [Affordable financial services]
Notes:
Financial inclusion in India refers to providing affordable financial services such as payments, savings, credit, and insurance. The Reserve Bank of India has promoted financial inclusion through initiatives like Jan Dhan Yojana, launched in 2014, to increase banking penetration and usage. Financial inclusion is essential in India’s economic and social policy frameworks as per RBI guidelines and government mandates.
10. In which of the following market forms a firm does not exercise control over price?
[A] Monopoly
[B] Mixed Competition
[C] Perfect competition
[D] Oligopoly
Show Answer
Correct Answer: C [Perfect competition]
Notes:
In economics, specifically general equilibrium theory, a perfect market is defined by several idealizing conditions, collectively called perfect competition.
