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. The act of simultaneous buying and selling of securities, currency, or commodities in different markets or in derivative forms is called _?
[A] Arbitrage
[B] Spot market
[C] Ambush marketing
[D] Futures market
Show Answer
Correct Answer: A [ Arbitrage ]
Notes:
Arbitrage is the process of simultaneous buying and selling of an asset from different platforms, exchanges or locations to cash in on the price difference. While getting into an arbitrage trade, the quantity of the underlying asset bought and sold should be the same. Only the price difference is captured as the net pay-off from the trade.
12. Consider the following statements about the Asian Infrastructure Investment Bank (AIIB):
- India has signed as well as ratified the articles to become the member state of the bank
- Its headquarters are located at Beijing, China
- It aims at providing Sovereign-backed Financing as well as Non-sovereign-backed Financing for Projects.
Which of the above statements is/are correct?
[A] 1 Only
[B] 1 & 2 Only
[C] 2 Only
[D] 1, 2 & 3
Show Answer
Correct Answer: D [1, 2 & 3]
Notes:
All given statements are correct
13. Which of these is not a parabanking activity?
[A] Asset Management
[B] Cash Withdrawal
[C] Insurance Business
[D] None of the above
Show Answer
Correct Answer: B [Cash Withdrawal]
Notes:
Para banking activities are the activities which are done by a Bank apart from its normal day to day activities. Examples of such activities are asset management, mutual funds business, insurance business, merchant banking activities, factoring services etc.
14. Self Help groups is related to which of the following models?
[A] Banking Model
[B] Indian Microfinance Model
[C] Financial Inclusion model
[D] VK Mehta Model
Show Answer
Correct Answer: B [Indian Microfinance Model]
Notes:
Status of Microfinance in India report has been prepared based on a unique home grown microfinance model titled Self Help Group.
15. Which of the following is an alternative way of representing the production function?
[A] Average Product
[B] The Long Run
[C] Isoquant
[D] The Short Run
Show Answer
Correct Answer: C [Isoquant]
Notes:
An isoquant is a firm’s counterpart of the consumer’s indifference curve. An isoquant is a curve that shows all the combinations of inputs that yield the same level of output. ‘Iso’ means equal and ‘quant’ means quantity.
16. What is the name given to the unemployment which occurs when workers move from one job to another job?
[A] Seasonal unemployment
[B] Frictional unemployment
[C] Technological unemployment
[D] Cyclical unemployment
Show Answer
Correct Answer: B [Frictional unemployment]
Notes:
Frictional unemployment is a type of unemployment. It is sometimes called search unemployment and can be based on the circumstances of the individual. It is time spent between jobs when a worker is searching for a job or transitioning from one job to another.
17. 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.
18. Which of the following are part of the Quaternary sector?
[A] Banking
[B] Agriculture
[C] Restaurant
[D] Information technology
Show Answer
Correct Answer: D [Information technology]
Notes:
The quaternary sector consists of intellectual activities often associated with technological innovation. It is sometimes called the knowledge economy.
19. In which year, the Pradhan Mantri Gram Sadak Yojana was launched to improve rural connectivity?
[A] 2001
[B] 1999
[C] 2000
[D] 1998
Show Answer
Correct Answer: C [2000]
Notes:
The Pradhan Mantri Gram Sadak Yojana is a nationwide plan in India to provide good all-weather road connectivity to unconnected villages. It was launched in 2000 under the Ministry of Rural Development.
20. Which among the following is the main feedstock of Urea?
[A] Petrol
[B] Natural gas
[C] Coal
[D] Diesel
Show Answer
Correct Answer: B [Natural gas]
Notes:
Urea is produced from natural gas. In a first step, nitrogen is bound as ammonia, and at the same time carbon dioxide is produced from the natural gas, while in a second method step the ammonia and the carbon dioxide are converted to urea
