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. Where is National Sugar Institute located?
[A] Kanpur
[B] Lucknow
[C] Nasik
[D] Pune
Show Answer
Correct Answer: A [Kanpur]
Notes:
National Sugar Institute is located in Kanpur. It was established in 1936. It functions under the ministry of consumer affairs,food and public distribution.
32. With reference to the Government of India’s initiative on Champion Services Sectors, consider the following sectors:
- Information Technology & Information Technology enabled Services
- Tourism and Hospitality Services
- Medical Value Travel
- Transport and Logistics Services
Which of the above are included in India’s 12 Champion Services Sectors?
[A] Only 1, 2 and 3
[B] Only 2, 3 and 4
[C] Only 1, 2 and 4
[D] 1, 2, 3 and 4
Show Answer
Correct Answer: D [1, 2, 3 and 4]
Notes:
The Government of India identified 12 Champion Services Sectors in 2018. Information Technology & Information Technology enabled Services, Tourism and Hospitality Services, Medical Value Travel, and Transport and Logistics Services are all specifically included among these sectors. The initiative is focused on boosting India’s services exports through targeted policy and support measures.
33. Which among the following is the market for unsecured lending and borrowing between corporates?
[A] Certificate of deposits
[B] Cash Management Bills
[C] Inter corporate deposits
[D] Commercial Paper
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Correct Answer: C [Inter corporate deposits ]
Notes:
Inter-corporate deposits market is the place of unsecured loans. It is extended by one corporate to another.
34. What is the maximum IPO investment limit for retail individual investors?
[A] ₹1 lakh
[B] ₹2 lakhs
[C] ₹5 lakhs
[D] ₹10 lakhs
Show Answer
Correct Answer: B [₹2 lakhs]
Notes:
The Securities and Exchange Board of India (SEBI) set the retail individual investor cap for IPO applications at ₹2 lakhs in 2012. Applications above ₹2 lakhs fall under the High Net-Worth Individual category. The limit regulates retail investor participation in primary markets. SEBI is the securities market regulator established in 1988 and given statutory status in 1992.
35. What is the maximum FDI allowed in India’s aviation sector?
[A] 100% through automatic route
[B] 75% with government approval
[C] 51% for domestic investors only
[D] 49% with foreign ownership caps
Show Answer
Correct Answer: A [100% through automatic route]
Notes:
In 2016, the Government of India allowed 100% Foreign Direct Investment in aviation via the automatic route. Up to 49% FDI is permitted for scheduled airlines and regional air transport services through automatic route; beyond that, up to 100% is allowed for non-resident Indians and MRO segment. The automatic route requires no government approval for investment.
36. Which country has an open sky agreement with India?
[A] Greece
[B] USA
[C] UAE
[D] Japan
Show Answer
Correct Answer: A [Greece]
Notes:
India and Greece signed an open sky agreement in September 2016. The agreement allows airlines from both countries to operate unlimited flights to each other’s destinations. The open sky agreement was the first after India’s civil aviation policy was finalized in 2016. This policy permits open sky arrangements with countries beyond a 5,000 km radius from India, including Greece. The USA also has such an agreement with India.
37. Which institution has announced to set up ‘YUVA Tourism Clubs’?
[A] CBSE
[B] UGC
[C] ISRO
[D] NITI Aayog
Show Answer
Correct Answer: A [CBSE]
Notes:
The Central Board of Secondary Education (CBSE) has issued instructions to all CBSE affiliated schools regarding formation of Yuva Tourism Clubs.
The Ministry of Tourism has initiated ‘YUVA Tourism Clubs’ as part of the ‘Azadi ka Amrit Mahotsav’ celebrations. It aims to nurture and develop young ambassadors of Indian tourism who would become aware of tourism possibilities in India, understand our rich cultural heritage and develop passion for tourism.
38. Goods which are either for consumption or for investment are called ___
[A] Final goods
[B] Giffen goods
[C] Inferior goods
[D] Intermediate goods
Show Answer
Correct Answer: A [Final goods]
Notes:
Goods which are either for consumption or for investment are called Final goods. Cars, television sets, cloth, food, machinery, equipments etc. are final goods.
39. In which market do buyers and sellers have perfect knowledge?
[A] Perfect competition
[B] Duopoly
[C] Monopolistic competition
[D] Oligopoly
Show Answer
Correct Answer: A [Perfect competition]
Notes:
Perfect competition is characterized by many buyers and sellers, and both possess accurate and complete knowledge of market conditions, prices, and products. This ensures no single participant can influence prices, making the market highly efficient.
40. Devaluation is mainly done for which of the following?
[A] encourage export
[B] encourage import
[C] discourage import
[D] To encourage both export and import
Show Answer
Correct Answer: A [encourage export]
Notes:
Devaluation refers to the official lowering of the value of a country’s currency relative to another currency, by which the monetary authority formally sets a new fixed rate. It causes a country’s exports to become less expensive, making them more competitive in the global market.
