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 was the private sector share of total U.S. R&D spending in 2022?
[A] 54%
[B] 63%
[C] 75%
[D] 78%
Show Answer
Correct Answer: D [78%]
Notes:
In 2022, the private sector in the United States performed 78% of total R&D expenditure, amounting to 692 billion out of 885.6 billion. The higher education sector accounted for about 10%, federal government about 8%, and other sectors about 4%. The National Science Foundation reports business as the largest contributor to U.S. R&D spending.
32. What is the minimum maturity period for CDs by scheduled commercial banks?
[A] 7 days
[B] 14 days
[C] 30 days
[D] 90 days
Show Answer
Correct Answer: A [7 days]
Notes:
RBI guidelines state certificates of deposit by scheduled commercial banks must have a minimum maturity of 7 days. The maximum permitted maturity is 1 year for banks. CDs were introduced in India in 1989 to provide liquidity. Financial institutions can issue CDs with tenures up to 3 years, but banks cannot issue for less than 7 days.
33. Which correctly represents M3 in money aggregates?
[A] Currency in circulation + Demand deposits only
[B] M1 + Savings deposits and small time deposits
[C] M2 + Large time deposits, institutional money market funds, and repurchase agreements
[D] None of the above
Show Answer
Correct Answer: C [M2 + Large time deposits, institutional money market funds, and repurchase agreements]
Notes:
M3 includes all components of M2 plus large time deposits, institutional money market funds, and repurchase agreements. M2 covers currency, demand deposits, savings deposits, and small time deposits. M3 is considered the broadest measure of money supply; it was discontinued as an official Federal Reserve aggregate in the United States in 2006.
34. Consider the following sectors in the context of Priority Sector Lending as per RBI guidelines:
- Agriculture
- MSME (Micro, Small, and Medium Enterprises)
- Education
- Renewable Energy
Which of the above sectors are classified as priority sectors for lending by RBI?
[A] Only 1, 2 and 3
[B] Only 1 and 2
[C] 1, 2, 3 and 4
[D] Only 2, 3 and 4
Show Answer
Correct Answer: C [1, 2, 3 and 4]
Notes:
According to RBI guidelines, Agriculture, MSME, Education, and Renewable Energy are all recognized priority sectors under Priority Sector Lending (PSL). Renewable Energy was added in 2015. PSL ensures credit flow to sectors considered vital for inclusive development, addressing the needs of underserved and backward sections of the economy, and promoting balanced growth across regions.
35. Which is the nominal anchor for India’s inflation targeting framework?
[A] Core CPI inflation
[B] Headline CPI inflation
[C] Food inflation
[D] Output gap measures
Show Answer
Correct Answer: B [Headline CPI inflation]
Notes:
The Reserve Bank of India adopted headline CPI inflation as the nominal anchor for its inflation targeting policy in August 2016. The official target is 4 percent CPI inflation, with a tolerance band of ±2 percent (2-6 percent). Headline CPI inflation includes prices for food and fuel. This framework was formalized through an amendment to the Reserve Bank of India Act, 1934.
36. Where is the secretariat of IOSCO located?
[A] New York
[B] Paris
[C] Madrid
[D] Hague
Show Answer
Correct Answer: C [Madrid]
Notes:
IOSCO – International organization of Securities commissions is an association of organizations that regulate the world’s securities and futures market. The permanent secretariat is located in Madrid.
37. What is the FDI limit for domestic scheduled airlines under the automatic route?
[A] 49%
[B] 74%
[C] 100%
[D] 51%
Show Answer
Correct Answer: A [49%]
Notes:
Current FDI policy in India permits up to 49% foreign investment in scheduled air transport services and domestic scheduled passenger airlines under the automatic route. Investment exceeding 49% requires government approval, except for Non-Resident Indians who can invest up to 100% under the automatic route. Foreign airlines can only own up to 49% equity in Indian carriers. These regulations were updated in 2020.
38. Who is the first Asian woman to get a PhD in Economics from Harvard back in 1960?
[A] Roja Ramani
[B] Padma Desai
[C] Vijaya lakshmi Pandit
[D] Krishna Hutheesingh
Show Answer
Correct Answer: B [Padma Desai]
Notes:
The first Asian woman to get a PhD in Economics from Harvard back in 1960 is Padma Desai. She is best known for a critique of India’s erstwhile planned economy. She co-authored a book in early 1970’s with husband and fellow economist Jagdish Bhagwati, on India’s industrial and trade policies.
39. Which among the following bank established to offset export credit?
[A] Exim bank
[B] Export credit guarantee corporation of India
[C] SEBI
[D] Mudra bank
Show Answer
Correct Answer: B [Export credit guarantee corporation of India ]
Notes:
Export Credit Guarantee Corporation of India was established in 1957. It is to strengthen export promotion by covering the risk of exporting on credit. Its headquarters is located in Mumbai.
40. In which among the following city HPCL refinery is located?
[A] Mumbai
[B] kochi
[C] Chennai
[D] None
Show Answer
Correct Answer: A [Mumbai]
Notes:
HPCL has 2 refineries completely owned by them. One is in Mumbai and the other is at Visakhapatanam.
