Indian Economy MCQs

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The Monetary Policy Committee was formed in 2016 after an amendment to the RBI Act, 1934. The Committee consists of six members: three from the Reserve Bank of India and three nominated by the Central Government. The Governor of the Reserve Bank of India is designated as the ex-officio Chairperson of the Monetary Policy Committee.

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Profit/loss on sale of assets is an entry in the manufacturing company` s P & L account under the heading other income. In banks the other income includes income from distribution of financial products, income from investment banking related activities, treasury gains and other fee incomes

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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.

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Reserve Bank of India (RBI) regulates savings bank account interest rates. Since October 2011, RBI deregulated these rates, letting banks set their own rates but still directing certain calculation and crediting methods. RBI issues guidelines for frequency of interest payments and storage of balances. RBI operates under the Reserve Bank of India Act, 1934 and directions updated periodically for banking operations.

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Open unemployment is a condition in which people have no work to do. They are able to work and are also willing to work but there is no work for them. They are found partly in villages, but very largely in cities. Most of them come from villages in search of jobs, many originate in cities themselves. Such employment can be seen and counted in terms of the number of such persons. Hence it is called open unemployment.

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The Financial Stability Board was established in 2009 after the G20 Pittsburgh Summit. It succeeded the Financial Stability Forum. The Board includes all G20 major economies, FSF members, and the European Commission. The Board is hosted by the Bank for International Settlements in Basel, Switzerland. The FSB’s formation and mandate are directly associated with the G-20 group of countries.

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The National Housing Bank was established in 1988 under the National Housing Bank Act, 1987. It was initially a subsidiary of the Reserve Bank of India. In March 2019, RBI transferred its entire stake to the Government of India. NHB operates under the Ministry of Finance. NHB’s head office is located in New Delhi.

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Gujarat is the largest producer of salt in India because of its extensive dry coast. Gujarat accounts for 77% of the salt produced in our country. Salt industries of Gujarat are thriving in Surat, Kutch, Bhavnagar, Rajkot, Anand, etc.

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Coal accounted for about 70% of India’s electricity generation in 2025. Coal-based power output was 1,247 TWh in 2025 after a 3.4% decline. Non-fossil sources contributed 25% collectively in FY 2024-25. India added 35 GW solar in 2025, but total renewable generation reached 270 TWh compared to coal’s 1,247 TWh.

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Visakhapatnam Steel Plant, known as Rashtriya Ispat Nigam Limited, was commissioned in 1982 in Andhra Pradesh. It was the first shore-based integrated steel plant in India. The foundation stone was laid in 1971. The plant initially had a capacity of 3.0 million tonnes per annum. The capacity later expanded to 7.3 MTPA by 2017. The plant was established with technological support from the USSR and Germany.