Indian Economy MCQs

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

31. Consider the following:
1. Foreign Currency Assets
2. Gold
3. Special Drawing Rights (SDRs)
Which among the following is the correct decreasing order of the above in the Foreign Exchange Reserves of India?

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

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32. Which among the following issues T-Bills in India?

  1. Central Government
  2. State Governments
  3. Reserve Bank of India
  4. Commercial Banks

Select the correct option from the codes given below:

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

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33. What functions are done by the Statutory Liquidity Ratio?

  1. It is an instrument of credit control;
  2. It works as a cushion against the possibility of bank failures; and
  3. It finances government deficits

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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34. In respect of Kisan Vikas Patra consider the following statements:
1. The invested amount is doubled in 100 months
2. There is no maximum limit on investment in Kisan Vikas Patra
3. The amount invested in KVP is eligible for tax rebate
4. The interest earned on Kisan Vikas Patra is eligible for tax rebate
Which among the above is / are correct statements?

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

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35. Consider the following equations:
1. Gross Cropped Area – Net Cropped Area = Uncultivable Land
2. Gross Cropped Area +Net Cropped Area = Total Cultivable Land
Which among the above is / are correct?

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

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36. The time period between jobs when a worker is transitioning from one job to another is known as__:

[A] Turnover unemployment
[B] Cyclical unemployment
[C] Structural unemployment
[D] Frictional unemployment

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37. Mutual Funds:

  1. can have both money and capital market investment
  2. are open-ended funds
  3. can have both debt and equity allocation

Which of the above is/are correct statements?

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

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38. Consider the following statements:
1. A quota is a non-tariff barrier to trade
2. Imposition of quota will result in increased price in the domestic market
3. A quota is a restriction placed on the amount of a product allowed to enter or leave a country
Which among the above statements is / are correct?

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

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39. Consider the following pair of goods:

  1. Tea and coffee
  2. Tea and sugar
  3. Printers and ink cartridges

Which of the above has/have negative cross elasticity of demand?

[A] 1 Only
[B] 2 and 3 Only
[C] 1, 2 and 3
[D] None

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40. The Stand Up India Scheme provides for:

  1. refinance window through Public sector banks
  2. creation of a credit guarantee mechanism through the National Credit Guarantee Trustee Company (NCGTC)

Which of the above statements is/are correct?

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

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