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 a suitable term for the state of economy in which economic activity is slowing down but wages and prices continue to rise ?
[A] Inflation
[B] Deflation
[C] Skweflation
[D] Stagflation

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2. Which among the following effects will be seen on “deposit rates” if RBI tightens its policy?
[A] The deposit rates will increase
[B] The deposit rates will decrease
[C] The deposit rates will remain unaltered
[D] Either Increase or decrease

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3. A zero Gini index means the following?
[A] perfect equality in income
[B] perfect inequality in income
[C] zero GDP growth of the country
[D] zero inflation

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4. What do we call an arrangement whereby an issuing Bank at the request of the Importer (Buyer) undertakes to make payment to the exporter (Beneficiary) against stipulated documents?
[A] Bill of Exchange
[B] Letter of Exchange
[C] Letter of Credit
[D] Bill of Entry

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5. Where can popular tourist attractions such as Chatham Saw Mill, Wandoor Beach, Mount Harriet and Limestone Caves be found?
[A] Goa
[B] Andaman and Nicobar Islands
[C] Lakshadweep
[D] Tamil Nadu

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6. Collateralized Borrowing and Lending Obligation (CBLO) is a ____?
[A] Money Market Instrument
[B] Monetary Policy Instrument
[C] Investment fund
[D] Capital Market Instrument

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7.  How many key infrastructure sectors are known as Core sector in Indian Economy, used for Index of Industrial Production (IIP) data?
[A] 5
[B] 6
[C] 7
[D] 8

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8. Foreign Direct Investment(FDI) and Foreign Institutional Investment(FII) are distinct in terms of?
[A] FDI brings capital, technology & management and FII brings only capital
[B] FDI targets specific sectors and FII help in increasing foreign capital availability
[C] FII is considered more stable
[D] FII targets both primary and secondary market while FDI targets only primary.

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9. Which among the following was the first bank purely managed by Indians? 
[A] Oudh Commercial Bank
[B] Punjab National Bank
[C] Bank of India
[D] Allahabad bank

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10. Which among the following is the primary difference between a free trade area and a customs union?
[A] members of a free trade area adopt a common set of barriers for trade between the members
[B] a free trade area is considered a trade bloc and a customs union is not
[C] members of a customs union adopt a common set of external trade barriers
[D] a free trade area can include parts of a country and a customs union includes entire countries

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