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. Which among the following is the main function of Agricultural Finance Corporation Limited ?
[A] consultancy services in the field of agriculture
[B] social service organization
[C] Agricultural commodities exchange
[D] Agricultural cooperative society
Show Answer
Correct Answer: A [consultancy services in the field of agriculture]
Notes:
Agricultural Finance Corporation Limited (AFC) is a development organization that provides consulting, advisory, and implementation support for agriculture and rural development in India. AFC was established in 1968 by India’s banking industry.
2. Which of the following organizations provides Buffer Stock Financing Facility ?
[A] Reserve Bank of India
[B] Asian Development Bank
[C] International Monetary Fund
[D] World Bank
Show Answer
Correct Answer: C [International Monetary Fund]
Notes:
IMF in 1969 to provide financial assistance to members with a temporary balance of payments need arising from contributions to buffer stocks established under approved international commodity agreements
3. Which among the following is India’s largest multi-state co-operative bank?
[A] Vijaya Bank
[B] Saraswat Bank
[C] Union co-operative bank
[D] The Madhya Pradesh Rajya Sahakari Bank
Show Answer
Correct Answer: B [Saraswat Bank]
Notes:
Saraswat Bank is India’s largest multi-state co-operative bank. It’s also the largest urban co-operative bank in Asia. Saraswat Bank operates in six states: Maharashtra, Goa, Gujarat, Delhi, Madhya Pradesh, Karnataka. The bank was established in 1933 and has been growing for over a century.
4. In which of the following actions will be taken by Reserve bank of India, to curb the excess liquidity, when the deficit financing increases?
[A] Increases CRR
[B] Decreases Bank rate
[C] Resorts to open market operations
[D] Raises the Tax rates
Show Answer
Correct Answer: A [Increases CRR]
Notes:RBI can reduce the excess liquidity by using the liquidity adjustment facility to manage high levels of inflation. This can be done by increasing the repo rate or cash reserve ratio. This will reduce the money supply in India’s economy.
5. With reference to the terms Deflation and Disinflation, which among the following statements is / are correct?
- Deflation is negative inflation, Disinflation is negative inflation growth
- Deflation increases the real value of money, Disinflation has no impact on value of money
Select the correct option from the codes given below:
[A] Only 1 is correct
[B] Only 2 is correct
[C] Both 1 & 2 are correct
[D] Neither 1 nor 2 is correct
Show Answer
Correct Answer: A [ Only 1 is correct ]
Notes:
In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate). This should not be confused with disinflation, a slow-down in the inflation rate (i.e. when inflation declines to lower levels) Inflation reduces the real value of money over time; conversely, deflation increases the real value of money – the currency of a national or regional economy. This allows one to buy more goods with the same amount of money over time.
6. Which Public Sector Giant issued world’s first Indian green masala bond?
[A] ONGC
[B] NTPC
[C] IOCL
[D] CIL
Show Answer
Correct Answer: B [NTPC]
Notes:
State-owned energy major National Thermal Power Corporation (NTPC) raised almost Rs 2,000 crores with the launch of its ‘Green Masala Bond’ on the London Stock Exchange (LSE). NTPC’s bond issue has been described as the first-ever Indian quasi-sovereign to issue a Masala Bond.
7. Which of the following countries collaborated with Bhilai Steel plant for its establishment?
[A] Britain
[B] USA
[C] Russia
[D] Japan
Show Answer
Correct Answer: C [Russia]
Notes:
The Bhilai plant and the Bokaro Steel Plant in Jharkhand were commissioned to collaborate with Russia. The agreement for constructing Bhilai plant was signed with the Soviet Union in 1955 after Indian Prime Minster Jawaharlal Nehru visited Magnitogorsk, the capital of Russian iron and steel works.
8. Which of the following is true about NBFC?
[A] NBFC cannot accept demand deposits
[B] NBFCs cannot issue cheques drawn on itself
[C] Deposit insurance facility of DICGC is not available to depositors of NBFCs
[D] All are true
Show Answer
Correct Answer: D [All are true]
Notes:
All the three points mentioned above are true. These points differentiate NBFC and banks
9. Which of the following is the management of securities of the corporate sector offered to the public on a regular basis?
[A] Corporate Issues Management
[B] Public Issues Management
[C] Securities Issues Management
[D] Private Issues Management
Show Answer
Correct Answer: B [Public Issues Management]
Notes:
Public Issue Management is the management of securities of the corporate sector offered to the public on a regular basis, and existing shareholders on a rights basis, is known as public issue management.
10. Economic Survey in India is published officially, every year by which of the following authorities?
[A] Reserve Bank of India
[B] Planning Commission of India
[C] Ministry of Finance, Government of India
[D] Ministry of Industries, Government of India
Show Answer
Correct Answer: C [Ministry of Finance, Government of India]
Notes:
The Department of Economic Affairs, Finance Ministry of India presents the Economic Survey in the parliament every year, just before the Union Budget. It is prepared under the guidance of the Chief Economic Adviser, Finance Ministry. It is the ministry’s view on the annual economic development of the country.
