Indian Economy MCQs

Indian Economy Multiple Choice Questions (MCQs) for State and UPSC Civil Services Examinations. Objective Questions on Indian Economy for competitive examinations.

11. The banks keep the Margin Requirements for the primary purpose of which of the following?

[A] To fulfill RBI requirements
[B] To keep themselves Basel II compliant
[C] To maintain a cushion against the decline of value of security
[D] To earn profit

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12. Which among the following is not a Government scheme / project to enhance financial Inclusion?

[A] Pradhan Mantri Jan Dhan Yojana
[B] Bharat Financial Inclusion
[D] Aadhaar Enabled Payment System

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13. Which among the following correctly defines the Net Interest Income?

[A] Interest earned on advances
[B] Interest earned on investments
[C] Total interest earned on advances and investment
[D] Difference between interest earned and interest paid

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14. Which among the following coal producer of India is outside the Coal India Ltd?

[A] Southern Eastern Coalfields (Bilaspur)
[B] Bharat Coking Coal (Dhanbad)
[C] Mahanandi Coalfields (Sambalpur)
[D] Singerani Collieries Company (Telangana)

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15. In which year, Corporate Debt Restructuring (CDR) scheme was launched in India with an objective of ensuring timely and transparent mechanism for restructuring the corporate debts of viable entities facing problems?

[A] 2001
[B] 2002
[C] 2003
[D] 2004

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16. Who among the following in India can borrow using the facility of “cash management bills”?

[A] Government
[C] Commercial banks
[D] Corporate

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17. Consider the following:

  1. Reverse Repo Rate
  2. Cash Reserve Ratio
  3. Statutory Liquidity Ratio
  4. Bank Rate

An increase in which among the above could raise the interest rates in the market?

[A] 1
[B] 1 & 2
[C] 1, 2 & 3
[D] 1, 2, 3 & 4

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18. The term “round tripping” in case of Foreign Direct Investments is related to which among the following?

[A] Use of FDI Funds out of Country
[B] Coming Back of Domestic Money as FDI
[C] Sending Back of Domestic Money as FDI
[D] Repatriation of the FDI made abroad

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19. The investment in Plant & Machinery up to which among the following amounts in India is called a Tiny Unit in India?

[A] Rs. 5 Lakh
[B] Rs. 10 Lakh
[C] Rs. 15 Lakh
[D] Rs. 25 Lakh

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20. Which among the following is the short name of highest authority in India for Indirect Taxes?


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