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. The Unclaimed deposits are those deposits which haven’t been operated for ______?
[A] 5 years or more
[B] 7 years or more
[C] 10 years or more
[D] 12 years or more
Show Answer
Correct Answer: C [10 years or more]
Notes:
Unclaimed deposits are deposits where the proceeds/maturity has not been claimed for a period of 10 years or more. In other words, term deposits are deemed unclaimed if they are inactive/inoperative for more than 10 years.
2. Which of the following organizations provides Buffer Stock Financing Facility ?
[A] Reserve Bank of India
[B] Asian Development Bank
[C] International Monetary Fund
[D] World Bank
Show Answer
Correct Answer: C [International Monetary Fund]
Notes:
IMF in 1969 to provide financial assistance to members with a temporary balance of payments need arising from contributions to buffer stocks established under approved international commodity agreements
3. 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.
4. Consider the following statements:
- There is almost no speculation in the G-sec market
- The Investors in the G-Sec Market are predominantly the institutions
Which among the above statements is / are correct
[A] Only 1 is correct
[B] Only 2 is correct
[C] Both 1 & 2 are correct
[D] Nether 1 nor 2 is correct
Show Answer
Correct Answer: C [Both 1 & 2 are correct]
Notes:
The correct answer is “Both 1 & 2 are correct.” 1. The G-sec (Government Securities) market is characterized by low speculation due to the stability and low risk associated with government bonds, making them a safe investment. 2. Institutional investors, such as banks, insurance companies, and pension funds, dominate the G-sec market, accounting for a important portion of trading volume. In India, for instance, institutions hold over 80% of G-secs, reflecting their preference for stable returns.
5. India’s first tribal circuit tourism project has launched in which state?
[A] Assam
[B] Rajasthan
[C] Madhya Pradesh
[D] Chhattisgarh
Show Answer
Correct Answer: D [Chhattisgarh ]
Notes:
India’s first tribal circuit tourism project under the Swadesh Darshan scheme has launched at Gangrel in Chhattisgarh on September 13. It covers 13 sites in Chhattisgarh which are Jashpur, Kunkuri, Mainpat, Kamleshpur, Maheshpur, Kurdar, Sarodadadar, Gangrel, Kondagaon, Nathiya Nawagaon, Jagdalpur, Chitrakoot and Tirthgarh. Under the tribal circuit theme of the scheme the Ministry of Tourism has sanctioned 4 projects to Nagaland, Telangana and Chhattisgarh for Rs. 380 crore. Major components sanctioned in the tribal circuit theme include eco log huts, craft haats, souvenir shops or kiosk, tourist reception and facilitation centres, open amphitheatre, tribal interpretation centres, workshop centres, tourist amenities centres, last mile connectivity, wayside amenities, viewpoints, nature trails, solar illuminations, signages and solid waste management among others. The Swadesh Darshan scheme was launched in 2014 -15 for development of thematic circuits in the country in a planned and prioritized manner.
6.
Which among the following statement in context with the Indirect Taxes is correct?
[A]
They decrease as the value of the manufactured goods go up
[B]
They don’t become part of Consolidated Fund of India
[C]
They don’t differentiate between rich and poor
[D]
Most governments prefer to raise their revenues through indirect taxes
Show Answer
Correct Answer: C [
They don’t differentiate between rich and poor
]
Notes:
Indirect tax is essentially a tax on expenditure. Levies such as customs, excise and service tax / GST are examples of indirect taxes. They are considered regressive as they do not distinguish between the rich and the poor. So, most governments prefer to raise their revenues through direct taxes.
7. What is the main industry of MENA region of the World?
[A] Manufacturing
[B] Petroleum
[C] Mines and Minerals
[D] Tourism and Hospitality
Show Answer
Correct Answer: B [Petroleum]
Notes:
MENA refers to Middle East and North Africa. The population is some 381 million equal to 6% of the total world population, if we consider all the countries included commonly. Obviously, Petroleum is the major industry.
8. What is the primary aim of enacting the SARFAESI Act?
[A] Recovering Loans
[B] Increasing Deposits
[C] Transparent appointment of Directors
[D] Reducing Corruptions and Scams
Show Answer
Correct Answer: A [Recovering Loans]
Notes:
The SARFAESI Act allowed the creation of asset reconstruction companies (ARC) and allowed banks to sell their non-performing assets to ARCs.
9. Which of the following curves represents the demand of all consumers in the market taken together at different levels of the price of the good?
[A] Monotonic
[B] Indifferent
[C] Market demand
[D] Diminishing
Show Answer
Correct Answer: C [Market demand]
Notes:
The market demand curve is the summation of all the individual demand curves in a given market. It shows the quantity demanded of the good by all individuals at varying price points.
10. Which organisation monitors the banks in actually maintaining cash balance?
[A] Department of Finance
[B] Department of Revenue
[C] Reserve Bank of India
[D] Banks themselves
Show Answer
Correct Answer: C [Reserve Bank of India ]
Notes:
The cash balance that is to be maintained by scheduled banks with the RBI should not be less than 4% of the total NDTL, which is the Net Demand and Time Liabilities. It includes deposits of the general public and the balances held by the bank with other banks.
