Indian Economy MCQs

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A Custodial Account in India is specifically designed for minor persons, allowing adults to manage assets on behalf of minors until they reach the age of majority, which is 18 years. This type of account ensures that minors can benefit from investments and savings while being protected under legal guardianship. Custodial accounts are commonly used for educational savings and other financial planning purposes for children.

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The International Harmonized System (HS), used worldwide for classifying traded goods, is maintained and updated by the World Customs Organization (WCO). The WCO oversees HS revisions through its technical bodies, ensuring the system stays aligned with changes in trade, technology, and product categories. This makes the WCO the correct organization responsible for the HS nomenclature used by customs authorities and trade statistics agencies across the world.

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India has used a managed floating exchange rate regime since 1993. The Reserve Bank of India intervenes in the foreign exchange market to reduce excessive volatility. The exchange rate is mainly market-determined but subject to RBI intervention. The International Monetary Fund describes India’s regime as a managed float. RBI does not follow a fully fixed or fully floating rate policy.

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Foreign Portfolio Investment allows FIIs, now classified as FPIs in India, to invest in securities like shares or bonds of Indian companies without obtaining management control. FIIs and FPIs are regulated by the Securities and Exchange Board of India. This is different from FDI, which involves direct investment in business operations or ownership. FIIs were reclassified under SEBI FPI Regulations 2014.

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Karnataka produced 13,278 tonnes of raw silk in 2024-25, the highest in India. The state has consistently led silk production, accounting for around one-third of the country’s total output annually. Major silk-producing districts in Karnataka include Mandya, Kolar, Chikkaballapur, and Ramanagara. The Central Silk Board reports Karnataka’s dominance in mulberry silk production nationwide for several years.

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Padmanabhaswamy Temple is located in Thiruvananthapuram, Kerala, India. The temple is built in an intricate fusion of the indigenous Kerala style and the Tamil style of architecture.

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Section 42 of the Reserve Bank of India Act, 1934 mandates scheduled banks to maintain their cash reserve ratio (CRR) with the RBI. The Reserve Bank of India monitors and enforces this statutory reserve requirement on the basis of net demand and time liabilities. The minimum CRR is set by the RBI and is periodically revised. RBI issues directions and circulars related to CRR compliance.

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Since 1980, the United Nations World Tourism Organization has celebrated World Tourism Day as international observances on September 27. This date was chosen as on that day in 1970, the Statutes of the UNWTO were adopted.

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The Ministry of Tourism recognizes infrastructure inadequacy as a major barrier to tourist arrivals. India’s tourist accommodation density and quality lag behind global averages. Major cities and remote tourist destinations face deficits in hotels, transportation, and sanitation. Government schemes like Swadesh Darshan and PRASHAD launched in 2014 and 2015 target these infrastructural gaps. Despite natural and cultural attractions, visitor growth remains below international benchmarks due to these limitations.

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The Governing Council of NITI Aayog includes all Chief Ministers of States, Chief Ministers of Delhi and Puducherry, and Lieutenant Governors of Union Territories. Governors of States are not part of the NITI Aayog Governing Council. The NITI Aayog was established on 1 January 2015. The Prime Minister of India chairs the Governing Council.