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.
31. By which year should public health spending reach 2.5% of GDP as per NHP 2017?
[A] 2020
[B] 2023
[C] 2025
[D] 2030
Show Answer
Correct Answer: C [2025]
Notes:
The National Health Policy 2017 set the target for India’s public health spending to reach 2.5% of GDP by 2025. In 2015, public health expenditure was about 1.15% of GDP. Union budgets from 2017 to 2024 allocated between 1.1% and 1.7% of GDP to health. The policy was notified in March 2017 by the Union Cabinet.
32. What is the advertising revenue share in Media and Entertainment Industry in 2025?
[A] 38.1%
[B] 47.82%
[C] 52.54%
[D] 44.2%
Show Answer
Correct Answer: B [47.82%]
Notes:
In 2025, advertising contributed 47.82% to the total revenue of the Media and Entertainment Industry. The advertising sector has become the largest single revenue source in this industry. This percentage reflects an increased share compared to earlier years. Subscription-based revenue and digital media formed the other major revenue streams in the industry for 2025.
33. Who can issue commercial papers in India?
[A] All India Financial Institutions, Corporate companies, Primary dealers
[B] All India Financial Institutions, Primary dealers
[C] All India Financial Institutions, Corporate companies, Primary dealers, Government of India
[D] All India Financial Institutions, Corporate companies
Show Answer
Correct Answer: A [All India Financial Institutions, Corporate companies, Primary dealers]
Notes:
Commercial papers are issued by All India Financial Institutions, corporate companies, and primary dealers as per RBI guidelines. Government of India does not issue commercial papers. Commercial papers are unsecured, short-term debt instruments introduced in India in 1990. Only entities with an investment-grade credit rating from SEBI-registered agencies can issue them. Minimum maturity for commercial papers is seven days and maximum is up to one year.
34. Which among the following is called narrow money?
[A] M1
[B] M2
[C] M3
[D] M4
Show Answer
Correct Answer: A [M1 ]
Notes:
M1 is known as narrow money. It is the most liquid component of money.
M1 = Currency with the public + Demand Deposits of public in Banks
35. Which are qualitative credit control tools used by central banks?
[A] Margin requirements and credit rationing
[B] Repo rate and reverse repo operations
[C] Cash reserve ratio and statutory liquidity ratio
[D] Open market operations
Show Answer
Correct Answer: A [Margin requirements and credit rationing]
Notes:
Margin requirements set the minimum down payment on loans secured by securities and are used to limit speculative credit. Credit rationing involves restricting lending to particular sectors or borrowers. Both are qualitative (selective) tools that direct credit flow to specific uses. The Reserve Bank of India adopted margin requirements and credit rationing especially from the 1950s onward as selective credit controls.
36. What is the range in which inflation has to be maintained by the RBI?
[A] 2 % to 5 %
[B] 2 % to 6 %
[C] 2 % to 7 %
[D] 1 % to 5 %
Show Answer
Correct Answer: B [2 % to 6 %]
Notes:
The range of inflation has to be maintained from 2% to 6%. Inflation management is the main task of the RBI.
37. Which projects are primarily funded by REITs?
[A] Completed real estate projects
[B] Incomplete real estate projects
[C] Green field real estate projects
[D] None
Show Answer
Correct Answer: A [Completed real estate projects]
Notes:
REITs mainly invest in completed, income-generating real estate assets such as operational commercial properties. Income is generated from rent paid by tenants in these properties. Regulatory guidelines require REITs in India to invest at least 80% of their assets in completed and revenue-generating properties, as per SEBI norms notified in 2014. They do not generally fund under-construction or greenfield projects.
38. Which among the following is a credit rating agency?
1. Fitch
2. Standards and poor
3. Moody
4. Goldman sacs
Choose the correct option from the choices given below:
[A] 1,2 and 3 only
[B] 1 and 4 only
[C] 3 and 4 only
[D] 1,3 and 4 only
Show Answer
Correct Answer: A [1,2 and 3 only]
Notes:
A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratings, which rate a debtor’s ability to pay back debt by making timely principal and interest payments and the likelihood of default. The top 3 is a credit rating agencies are Fitch, Standards and poor, Moody. Goldman sacs is an investment bank.
39. Which items are sold under the Open Market Sale Scheme (OMSS)?
[A] Wheat and Rice
[B] Wheat, Rice and Pulses
[C] Rice and Pulses
[D] Wheat, Rice, Coarse Grains, and Broken Rice
Show Answer
Correct Answer: D [Wheat, Rice, Coarse Grains, and Broken Rice]
Notes:
The Open Market Sale Scheme (OMSS) allows Food Corporation of India to sell surplus wheat, rice, coarse grains, and broken rice through e-auctions. OMSS aims to manage buffer stocks and stabilize grain prices. Pulses are not sold under OMSS. In 2025-26, reserve prices for these items were revised and wheat auctions to private traders were suspended.
40. Who was the first Railway Minister of Independent India?
[A] John Mathai
[B] Lal Bahadur Shastri
[C] SN Sinha
[D] S Shetty
Show Answer
Correct Answer: A [John Mathai]
Notes:
John Mathai was the first Railway Minister of Independent India.
