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. These questions are part of GKToday’s 35000+ MCQs Bank Course in GKToday Android App
1. Which of the following is/are Money Market Instruments?
[A] Treasury Bills
[B] Commercial Papers
[C] Certificate of Deposits
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
Money market securities are debt issues with maturities of one year or less. Treasury Bills, Certificate of Deposit as well as Commercial papers are money market instruments.
2. At which of the following places, printing press of Reserve Bank of India is not present?
[A] Nashik
[B] Dewas
[C] Salboni
[D] Mumbai
Show Answer
Correct Answer: D [Mumbai]
Notes:
For printing of notes, the Security Printing and Minting Corporation of India Limited (SPMCIL), has set up printing presses at Nashik, Maharashtra and Dewas, Madhya Pradesh. The Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) has set up printing presses in Mysuru in Karnataka and Salboni in West Bengal. In all, there are four printing presses.
3. Which of the following is NOT related to the World Trade Organization (WTO)?
[A] Multifiber Agreement
[B] General Agreement on Trade and Services
[C] Multilateral Agreement on Investment
[D] Agreement on Agriculture
Show Answer
Correct Answer: C [ Multilateral Agreement on Investment ]
Notes:
The basic functioning of WTO depends upon: 1. Multifiber Agreement (MFA) 2. Agreement on Agriculture (AoA), Trade Related Investment Measures (TRIMS), Trade Related Intellectual Property Right (TRIPS), General Agreement on Trade and Services (GATS). Multilateral Agreement on Investment is among OECD countries.
4. Which among the following is First Indian Special Economic Zone(SEZ)?
[A] Visakhapatnam SEZ
[B] Kandla SEZ
[C] Noida Special Economic Zone
[D] Cochin SEZ
Show Answer
Correct Answer: B [Kandla SEZ]
Notes:
The Kandla Special Economic Zone (KASEZ) was established in the year 1965 as the first Export Processing Zone in India. It is also the first special economic zone in India and in Asia. It is located in Kutch District of Gujarat.
5. Which among the following is correct about Giffin Goods?
[A] They obey laws of demand
[B] They don’t obey laws of demand
[C] They follow elasticity of demand
[D] The demand supply curve of Giffin Goods is a parabola
Show Answer
Correct Answer: B [They don’t obey laws of demand]
Notes:
A Giffen good is a low income, non-luxury product for which demand increases as the price increases and vice versa. A Giffen good has an upward-sloping demand curve which is contrary to the fundamental laws of demand which are based on a downward sloping demand curve.
6. At which of the following places steam engines were originally manufactured by India Railway ?
[A] Varanasi
[B] Perambur
[C] Chittranjan
[D] Patiala
Show Answer
Correct Answer: C [Chittranjan]
Notes:
The first steam locomotive produced by Chittaranjan Locomotive Works (CLW) was dedicated to the nation on November 1, 1950. This significant event coincided with the renaming of the Loco Building Works as Chittaranjan Locomotive Works, in honor of the freedom fighter, leader, and statesman Deshbandhu Chittaranjan Das. The dedication ceremony was conducted by the first President of India, Dr. Rajendra Prasad. This marked an important milestone in the history of CLW, establishing it as a key manufacturer in India’s locomotive industry. The production of steam locomotives commenced earlier on January 26, 1950, and over the years, CLW evolved to become the largest locomotive manufacturer in the world.
7. Progressive Taxation is most closely associated to the base which the tax proposals are generally developed is ______?
[A] Expediency Theory
[B] Cost of service approach
[C] Ability to pay approach
[D] Concentration approach
Show Answer
Correct Answer: C [Ability to pay approach]
8. In which of the following the term “cap and trade” is used?
[A] Share Broking
[B] Mutual Fund Investments
[C] Emission Trading
[D] Commodity Futures
Show Answer
Correct Answer: C [Emission Trading]
Notes:
Emissions trading (aka. cap and trade) refers to the market-based approach to control pollution by providing economic incentives for reducing the emissions of pollutants.
9. Which among the following groups of Banks in India was previously referred as ‘Other Scheduled Commercial Banks’?
[A] National Banks
[B] Foreign Banks
[C] Scheduled Cooperative Banks
[D] Private Banks
Show Answer
Correct Answer: D [Private Banks]
10. The most active segment of the Money Market in India is which one of the following?
[A] Call Money / Notice Money Market
[B] Repo / Reverse Repo
[C] Commercial Paper (CP)
[D] Certificate of Deposit (CD)
Show Answer
Correct Answer: A [Call Money / Notice Money Market]
Notes:
Call Money / Notice Money Market is the most active segment of the money market in India.
Advertisement