Indian Economy MCQs

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

21. Liquidity Adjustment Facility (LAF) is used by RBI to bring changes in which of the following? 

  1. CRR and SLR
  2. Repo and Reverse Repo rates
  3. Bank rate

Choose the correct option from the codes given below:

[A] 1,2,3
[B] 1 and 2
[C] 1 Only
[D] 2 Only

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22. Which among the following is correct in context with the Brown ATMs (Automated Teller Machines) ?

[A] ATMs owned by Foreign Companies
[B] ATMs not owned by banks but by private ATM service providers.
[C] Outsourced ATM Service by Banks – The ATM named under a brand sponsor bank but ATM machine not owned by the Bank
[D] ATMs owned by Government

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23. Which of the following is not a part of Broad Money in India?

[A] Demand Deposits with Banks
[B] Currency with the Public
[C] Time Deposits with Banks
[D] Banks’ deposits with RBI

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24. What is IPO in context to a company?

[A] The first sale of stock by a private company to the public
[B] Upgradation of shares from primary to secondary market
[C] Selling of shares at premium by a company
[D] Convert of a private limited company to public limited Company

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25. Which of the following is / are part of India’s external debt?

  1. External Commercial Borrowings
  2. NRI Deposits
  3. Inward Remittances

Select the correct option from the codes given below:

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

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26. The basic WTO principle with reference to trade barriers is that:

[A] Trade barriers can be imposed by any country that believes it will benefit from such trade barriers
[B] Trade Barriers should be lowered equally and without discrimination for all member countries
[C] Trade Barriers can be imposed if a majority of the members of the WTO agree
[D] Trade Barriers should be the same in all member countries so that the result is equivalent to free trade

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27. Consider the following companies:
1. Coal India Limited
2. Oil India Limited
3. Gail Indian Limited
Which among the above is / are Maharatna companies?

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

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28. With reference to the Statutory Liquidity Ratio (SLR), consider the following observations:
1. Banks can keep cash, government bonds as well as gold to meet their SLR requirements
2. SLR is one of the means to finance government’s fiscal deficit
Which of the above is / are correct statements?

[A] Only 1
[B] Only 2
[C] Both 1 & 2
[D] Neither 1 nor 2

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29. Which of the following schemes are parts of Foreign Trade Policy of India (FTP 2015-20)?

  1. Merchandise Exports from India Scheme (MEIS)
  2. Services Exports from India Scheme
  3. Export Promotion Capital Goods
  4. Advance Authorisation Scheme

Select the correct option from codes given below:

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

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30. Which state in India is the largest producer of salt?

[A] Kerala
[B] Andhra Pradesh
[C] Gujarat
[D] Maharashtra

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