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. Bank Rate is defined as the rate at which:
[A] RBI lends short term loans to commercial banks
[B] a commercial bank can lend to its customers
[C] RBI lends long term loans to commercial banks
[D] the commercial banks are able to borrow overnight funds from RBI
Show Answer
Correct Answer: C [RBI lends long term loans to commercial banks ]
Notes:
Bank rate is the rate of interest which a central bank charges on the long term loans and advances that it extends to commercial banks and other financial intermediaries.
2. Which among the following is the main feature of Democratic planning?
[A] Inducement
[B] Government
[C] Direction
[D] Flexibility
Show Answer
Correct Answer: D [Flexibility]
Notes:
Democratic planning is the planning process generally adopted in mixed economy. Mixed economy possesses characteristics of both capitalist economy as well as socialist economy. Democratic planning involves participation of all the citizens of an economy directly or indirectly.
3. In context with the markets, what is dematerialization of securities?
[A] Shortening the time of debt repayment on securities
[B] Electric holding of the shares replacing the paper securities
[C] The price of a shares falling below certain point in the share market
[D] The buyback of shares by a company
Show Answer
Correct Answer: B [Electric holding of the shares replacing the paper securities]
Notes:
Dematerialization of securities refers to the process of converting physical paper certificates of shares into electronic form. This transition allows for easier and faster transactions, reduces the risk of loss or theft, and enhances the efficiency of trading. The practice gained momentum with the advent of electronic trading systems and is now standard in many markets worldwide. For instance, in India, the dematerialization process was facilitated by the introduction of the Depositories Act in 1996, leading to the establishment of depositories like NSDL and CDSL.
4. Which of the following is not a Selective Credit Control measure?
[A] Margin Requirements
[B] Regulation of Consumer Credit
[C] Rationing of Credit
[D] Open Market Operations
Show Answer
Correct Answer: D [Open Market Operations]
Notes:
Qualitative or selective methods of credit control refers to those methods which limit the nature or variety of money supply rather than its quantity. Such methods include regulation of margin requirement, credit rationing, regulation of consumer credit and direct action. Open Market Operations is a quantitative method of credit control.
5. Which among the following coal producer of India is outside the Coal India Ltd?
[A] Southern Eastern Coalfields (Bilaspur)
[B] Bharat Coking Coal (Dhanbad)
[C] Mahanandi Coalfields (Sambalpur)
[D] Singerani Collieries Company (Telangana)
Show Answer
Correct Answer: D [Singerani Collieries Company (Telangana)]
Notes:
Singareni Collieries Company Limited (SCCL) is jointly owned by the Government of Telangana and Government of India on a 51:49 equity basis.
6. Consider the following:
- Short Term Funds
- Medium Term Funds
- Long Term Funds
Which among the above is/ are dealt in the Indian Capital Market?
[A] 1 & 2
[B] 2 & 3
[C] 1 & 3
[D] 1, 2 & 3
Show Answer
Correct Answer: B [2 & 3]
Notes:
Short Term Funds – Indian Money Market,
Medium and Long Term Funds- Indian Capital Market
7. Which of the following was target in Integrated Action Plan (IAP)?
[A] Drought
[B] Terrorism
[C] Left Wing Extremism
[D] Widespread Poverty
Show Answer
Correct Answer: C [Left Wing Extremism]
Notes:
The Integrated Action Plan (IAP) is aimed at bridging the development deficit in the extremely backward areas that are affected by Left Wing Extremism.
8. UDYAMI helpline is for?
[A] Large capital Industries
[B] Female entrepreneur
[C] Farmers introducing technology in Farming
[D] Micro, small & medium size enterprises
Show Answer
Correct Answer: D [Micro, small & medium size enterprises]
Notes:
Udyami Helpline with number 1800 180 6763 is a Call Centre of Ministry of Micro, Small and Medium Enterprises (MSME), Government of India. It was launched in 2010 to work as a single point facility for MSMEs needing different kinds of information and accessibility of Banks and other MSME-related organisations.
9. Which of the following is the least preferred option by government for deficit financing?
[A] Printing of currency notes
[B] Loans from World bank and IMF
[C] Disinvestment of government holdings
[D] Open sale of government securities and bonds in market
Show Answer
Correct Answer: A [ Printing of currency notes ]
Notes:
Printing of currency creates a situation where too much money chases few goods and thus leads to condition of inflation. So; it is the last preferred option for government.
10. The payment and settlement system in India is managed by_?
[A] SEBI
[B] RBI
[C] National Payments Corporation of India
[D] Ministry of Finance
Show Answer
Correct Answer: B [ RBI ]
Notes:
RBI manages the payment and settlement system in India.
