Indian Economy MCQs
31. The minimum interest rate of a bank below which it is not viable to lend, is known as ____:
[A] Reserved Rate
[B] Base Rate
[C] Marginal Rate
[D] Prime Lending Rate
Show Answer
Correct Answer: B [Base Rate]
32. National Small Savings Fund is a part of which among the following?
[A] Consolidated Fund of India
[B] Public Account of India
[C] Contingency Fund of India
[D] Prime Minister’s Relief Fund
Show Answer
Correct Answer: B [Public Account of India]
33. Maximum share in India’s total external debt is of which among the following currency?
[A] US Dollar
[B] Indian Rupee
[C] Euro
[D] Japanese Yen
Show Answer
Correct Answer: A [US Dollar]
34. The National Mission for Saffron has been launched as a subscheme of which among the following programmes?
[A] National Food Security Mission
[B] National Horticulture Mission
[C] Rashtriya Krishi Vikas Yojana
[D] National Cash Crop Programme
Show Answer
Correct Answer: C [Rashtriya Krishi Vikas Yojana]
35. If the Reserve Bank of India wants to increase the Cash Reserves commercial Banks, which among the following would be the most probable step taken by it ?
[A] Release Gold from its reserves
[B] Buy bonds in the open market
[C] Prohibit the transactions that involve bill of exchange
[D] Increase the tranche reserves with the IMF
Show Answer
Correct Answer: B [Buy bonds in the open market]
Notes:
When RBI buys bonds in the open market, Banks get money and Cash Reserves would increase.
36. Which among the following can not be called an ant inflationary measure?
[A] Raising the Bank Rates
[B] Raising the Reserve Ratio Requirements
[C] Purchase of securities in the Open Markets
[D] Rationing of the Credit
Show Answer
Correct Answer: C [Purchase of securities in the Open Markets]
Notes:
The C is correct option. This is because Purchase of securities in the Open Markets would lead to more liquidity system and more liquidity means more money will chase the same goods.
37. Which among the following is the short name of highest authority in India for Indirect Taxes?
[A] CBED
[B] CBDT
[C] CBEC
[D] CBIT
Show Answer
Correct Answer: C [CBEC]
Notes:
Central Board of Excise and Customs (CBEC)
38. In India, the Foreign Exchange Reserves are kept in the custody of which among the following?
[A] Ministry of Finance
[B] EXIM bank
[C] Reserve Bank of India
[D] Selected Public Sector Banks
Show Answer
Correct Answer: C [Reserve Bank of India]
39. What is the Capital Adequacy ratio for a new bank applying for license in India, as per the draft guidelines of RBI for issuing new bank licenses?
[A] 9%
[B] 10%
[C] 11%
[D] 12%
Show Answer
40. Portion of deposits banks have to park with RBI is called ___?
[A] Statutory Reserve Ratio
[B] Capital Adequacy Ratio
[C] Cash Reserve Ratio
[D] CASA Ratio
Show Answer
Correct Answer: C [Cash Reserve Ratio]
