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.
11. Which among the following is the chief characteristic of the primary industry of the developed countries?
[A] Larger farm size and increasing corporate ownership of farms
[B] Larger farm size and more government ownership of farms
[C] Smaller farm size and a diversity of crops on each farm
[D] Smaller farm size and fewer family-owned farms
Show Answer
Correct Answer: A [Larger farm size and increasing corporate ownership of farms]
Notes:
Consider agriculture in the developed countries such as United States and Canada. There, the small family farms are not able to earn a profit and are being replaced by large corporate farms.
12. In context with banking in India, a Custodial Account is created for __:
[A] Illiterates
[B] Women
[C] Minor persons
[D] Senior Citizens
Show Answer
Correct Answer: C [ Minor persons ]
Notes:
A Custodial Account in India is specifically designed for minor persons, allowing adults to manage assets on behalf of minors until they reach the age of majority, which is 18 years. This type of account ensures that minors can benefit from investments and savings while being protected under legal guardianship. Custodial accounts are commonly used for educational savings and other financial planning purposes for children.
13. Which committee is responsible for identifying out the criteria for the urban poor or urban BPL families?
[A] Hashim Committee
[B] Naresh Chandra Committee
[C] Sachar Committee
[D] Bhure Lal Committee
Show Answer
Correct Answer: A [ Hashim Committee ]
Notes:
Hashim Committee gave the criteria for identifying the urban poor or urban BPL families. The committee based its identification criteria on the parameters that were mapped by the Socio-Economic Caste Census (SECC).
14. SIDO is associated with which of the following industries?
[A] Small industry
[B] Iron industry
[C] Steel industry
[D] Soap industry
Show Answer
Correct Answer: A [Small industry]
Notes:
The Small Industries Development Organization (SIDO) is the national SME Development Agency of India. It is a major constituent of the Ministry of Small Scale Industries of the Government of India. It was Set up in 1954, SIDO provides services to small industry throughout the country by implementing a broad program of activities and services like Entrepreneurship Development, Tool Room Services, Testing Centres, Extension Services, R&D Services, etc.
15. What do we call the official interest rate at which RBI provides loans to the banking system?
[A] Reverse repo rate
[B] Bank rate
[C] SLR
[D] CRR
Show Answer
Correct Answer: B [Bank rate]
Notes:
Bank Rate refers to the official interest rate at which RBI will provide loans to the banking system which includes commercial / cooperative banks, development banks etc.
16. At present which of the following is India’s share of the world exports of tea?
[A] More than 40%.
[B] Between 30% and 35%.
[C] Between 10% and 20%.
[D] About 10% or less.
Show Answer
Correct Answer: A [More than 40%.]
Notes:
At present, India’s share of the world exports of tea is more than 40%.
17. Which of the following is included in market price?
[A] Indirect taxes
[B] Direct taxes
[C] Subsidies
[D] None of the above
Show Answer
Correct Answer: A [Indirect taxes]
Notes:
Market price(MP)refers to the actual transacted price and includes indirect taxes. The market price is the current price at which an asset or service can be bought or sold. The economic theory contends that the market price converges at a point where the forces of Supply and demand meet.
18. Which of the following is important for a traditional economic system?
[A] History
[B] social welfare
[C] profit
[D] trade
Show Answer
Correct Answer: A [History]
Notes:
A traditional economy is based on a traditional approach. These economies are based on ancient rules and are the most basic type of economy. The focus in a traditional economy is only on the goods and services that match their customs, beliefs, and history.
19. Which of the following is not an advantage of Organised sector?
[A] Better working conditions
[B] Job security
[C] No trade Union
[D] Fixed working hours
Show Answer
Correct Answer: C [No trade Union]
Notes:
Trade unions are part of the Organised sector. In this sector, employment terms are fixed and regular, and the employees get assured work and social security
20. In which years, annual plans were launched for the first time in India?
[A] 1969 to 1972
[B] 1966 to 1969
[C] 1971 to 1975
[D] 1988 to 1991
Show Answer
Correct Answer: B [1966 to 1969]
Notes:
The duration of the plan holiday was from 1966 to 1969. There was plan holiday during this time after the failure of third plan and the wars. During this plan, annual plans were made.
