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 is the primary unit under the Lead Bank Scheme for banking infrastructure?
[A] Town
[B] Village
[C] District
[D] Block
Show Answer
Correct Answer: C [District]
Notes:
The Lead Bank Scheme was introduced by the Reserve Bank of India in 1969. The scheme adopted a district-based approach for banking infrastructure development. Under this scheme, each district is allocated to a commercial bank, called the Lead Bank for the district. The scheme covers all districts in India except certain metropolitan cities and Union Territories.
2. Which of the following was target in Integrated Action Plan (IAP)?
[A] Drought
[B] Terrorism
[C] Left Wing Extremism
[D] Widespread Poverty
Show Answer
Correct Answer: C [Left Wing Extremism]
Notes:
The Integrated Action Plan (IAP) is aimed at bridging the development deficit in the extremely backward areas that are affected by Left Wing Extremism.
3. What is vertical farming?
[A] Growing unrelated crops together in the same tract of land
[B] Growing related crops together in the same tract of land
[C] Cultivating crops inside multi-storey buildings
[D] Using aquaculture, sericulture, pisciculture, and bee culture together
Show Answer
Correct Answer: C [Cultivating crops inside multi-storey buildings]
Notes:
Vertical farming uses multi-storey buildings to grow crops in urban environments. The method utilizes hydroponics or aeroponics. This allows for agriculture independent from soil and weather conditions. The technique optimizes space and supports year-round production. Commercial vertical farms have been established in countries such as Japan, Singapore, and the United States since the early 2000s.
4. Which of the following correctly displays balance of trade?
[A] visible exports – visible imports
[B] total exports – total imports
[C] invisible imports – visible imports
[D] visible exports – invisible imports
Show Answer
Correct Answer: A [visible exports – visible imports]
Notes:
Balance of Trade: Difference of ONLY visibles Balance of Payments: Difference of visibles as well as invisibles
5. The business transactions done in lieu of which of the following would be called Invisible Trade?
- Consulting
- Income from foreign investment
- Shipping services
- Tourism
Select the correct option from the codes given below:
[A] Only 1 & 2
[B] Only 2 & 3
[C] Only 3 & 4
[D] 1, 2, 3 & 4
Show Answer
Correct Answer: D [ 1, 2, 3 & 4 ]
Notes:
Business transactions that occur with no exchange of tangible goods called Invisible Trade. It involves the transfer of non-tangible goods and/or service, intellectual property and patents. Examples of invisible trade including consulting, income from foreign investment, shipping services and tourism.
6. What must foreign banks do if they miss priority sector lending targets in India?
[A] Deposit shortfall in RIDF
[B] Deposit shortfall with NABARD
[C] Deposit shortfall with RBI
[D] Deposit shortfall with SIDBI for one year
Show Answer
Correct Answer: D [Deposit shortfall with SIDBI for one year]
Notes:
Foreign banks in India failing to meet priority sector lending targets must deposit the shortfall with SIDBI for one year as per RBI guidelines. Domestic banks deposit shortfalls in the Rural Infrastructure Development Fund under NABARD. The RBI’s 2020 guidelines specify a 40 percent lending target for foreign banks with 20 or more branches in India, based on their Adjusted Net Bank Credit.
7. The time period between jobs when a worker is transitioning from one job to another is known as__:
[A] Turnover unemployment
[B] Cyclical unemployment
[C] Structural unemployment
[D] Frictional unemployment
Show Answer
Correct Answer: D [ Frictional unemployment ]
Notes:
Frictional unemployment is the time period between jobs when a worker is searching for, or transitioning from one job to another. It is sometimes called search engine and can be voluntary based on the circumstances of the unemployed individual.
8. Directorate General of foreign Trade (DGFT) functions under which of the following ministries?
[A] Ministry of Commerce and Industry
[B] Ministry of Finance
[C] Home Ministry
[D] Ministry of Finance
Show Answer
Correct Answer: A [ Ministry of Commerce and Industry ]
Notes:
The Directorate General of foreign Trade (DGFT) is the agency of the Ministry of Commerce and Industry of the Government of India, responsible for execution of the import and export Policies of India.
9. Self Help Groups in India are mainly linked to which of these?
[A] Traditional commercial banking loans
[B] World Bank’s microfinance standards
[C] India’s microfinance model for poverty reduction
[D] Direct government cash transfer schemes
Show Answer
Correct Answer: C [India’s microfinance model for poverty reduction]
Notes:
Self Help Groups in India started in the 1970s as informal savings and credit groups. NABARD launched the SHG-Bank Linkage Programme in 1992 to facilitate institutional credit access. By February 2024, over nine million SHGs covered around 100 million women. The repayment rate exceeds 96 percent. SHGs target marginalized women for poverty alleviation and financial inclusion through microfinance activities.
10. Banking Ombudsman is a senior official appointed by the RBI to redress customer complaint specified under which clause of the Banking Ombudsman Scheme 2006?
[A] Clause 7
[B] Clause 6
[C] Clause 8
[D] Clause 5
Show Answer
Correct Answer: C [Clause 8]
Notes:
The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints against deficiency in certain banking services covered under the grounds of complaint specified under Clause 8 of the Banking Ombudsman Scheme 2006.
