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.
31. What is MSF stands for?
[A] Marginal standing funds
[B] Marginal stauatory funds
[C] Marginal standing facility
[D] Mean statuatory facility
Show Answer
Correct Answer: C [Marginal standing facility]
Notes:
MSF stands for Marginal standing facility. It is the peal rate for the banks as it allows them to borrow by breaching SLR and CRR rates.
32. What is capital Indexed Bonds?
[A] The interest rate in fixed
[B] The interest rate depends on Bank rate
[C] The interest rate depends on WPI or CPI
[D] The interest rate depends on Repo Rate
Show Answer
Correct Answer: C [The interest rate depends on WPI or CPI]
Notes:
The capital Indexed bonds are the bonds where the interest rates is a fixed percentage over the inflation rate. It is depending on either WPI or CPI depending on the terms.
33. From which year SEBI started to allow buyback shares in India?
[A] 1999
[B] 2000
[C] 1998
[D] 1995
Show Answer
Correct Answer: C [1998]
Notes:
The Sebi started to allow buyback shares in India from 1998. Buyback shares is the process of a company’s repurchase of stock it has issued at a price.
34. What is a Mutual Fund?
[A] A fund set up by Union government
[B] A fund given by global Financial Institutions
[C] A fund that mops up money from a group of investors
[D] None
Show Answer
Correct Answer: C [A fund that mops up money from a group of investors]
Notes:
Mutual Fund is a fund that mops up money from a group of investors to invest in capital markets so as to generate returns for the investors.
35. Which among the following is a credit rating agency?
1. Fitch
2. Standards and poor
3. Moody
4. Goldman sacs
Choose the correct option from the choices given below:
[A] 1,2 and 3 only
[B] 1 and 4 only
[C] 3 and 4 only
[D] 1,3 and 4 only
Show Answer
Correct Answer: A [1,2 and 3 only]
Notes:
A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratings, which rate a debtor’s ability to pay back debt by making timely principal and interest payments and the likelihood of default. The top 3 is a credit rating agencies are Fitch, Standards and poor, Moody. Goldman sacs is an investment bank.
36. What is the name of the online portal launched by NIC to monitor the installation of solar rooftop system?
[A] ARUN
[B] SPIN
[C] SPOORTI
[D] UTTAM
Show Answer
Correct Answer: B [SPIN]
Notes:
SPIN is an online application (web portal) of the Ministry of New and Renewable Energy (MNRE) for managing the grid-connected rooftop solar photovoltaic installation database under the Grid Connected Rooftop Solar and Small Power Plant Programme.
37. Which government institution regulatess SIDBI?
[A] RBI
[B] NABARD
[C] Department of Finance
[D] NHB
Show Answer
Correct Answer: A [RBI]
Notes:
SIDBI stands for Small Industries development bank of India. It was established in 1990. It is regulated by RBI.
38. Who among the following regulates Agriculture Insurance Company of India?
[A] NABARD
[B] RBI
[C] Ministry of Agriculture
[D] Ministry of Finance
Show Answer
Correct Answer: D [Ministry of Finance]
Notes:
AICIL stands for Agriculture Insurance Company of India. It was started in 2003. Its headquarters is located in Delhi. AICIL is under the administrative control of Ministry of Finance, GOI and under the operational supervision of Ministry of Agriculture, GOI, IRDA, Hyderabad (India) is the regulatory body governing AICIL.
39. In the case of a substandard commodity, the income elasticity of demand is:
[A] Zero
[B] Negative
[C] Infinite
[D] Positive
Show Answer
Correct Answer: B [Negative]
Notes:
A negative income elasticity of demand is associated with the following goods:
An increase in income will lead to a fall in demand and may lead to a change to a more luxurious option.
A positive income elasticity of demand is associated with ordinary goods; An increase in income will lead to an increase in demand.
40. Expenditure on advertising and public relations by an enterprise is a part of which of the following?
[A] consumption of fixed capital
[B] final consumption expenditure
[C] intermediate consumption
[D] fixed capital
Show Answer
Correct Answer: C [intermediate consumption]
Notes:
Intermediate consumption includes the total monetary value of goods and services consumed or used by enterprises as inputs in production, including raw materials, services and various other operating expenses. That’s why Expenditure on advertising and public relations by an enterprise is a part of intermediate consumption.
