Indian Economy MCQs

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

41. How the government uses fiscal policy as an instrument to combat inflation?

  1. By increasing public expenditure
  2. By increasing public debt
  3. By delaying the payment of old debts
  4. By increasing taxes

Select the correct option from the codes given below:

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

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42. As per the latest statement by finance ministry India’s tax-to-GDP ratio is about __?

[A] 15.5%
[B] 22.2%
[C] 16.7%
[D] 20.3%

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43. Global Competitiveness Report is published by_____?

[A] World Bank
[B] International Monetary Fund
[C] World Economic Forum
[D] World Trade Organization

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44. In recent times, India has been one of the most favourite equity market for the foreign institutional investors (FII). A Foreign Institutional Investor is allowed to invest in India in__:

  1. Primary Markets
  2. Secondary Markets
  3. Treasury Bills

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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45. Which among the following are generally known as the ‘twin deficit’?

[A] Revenue deficit and current account deficit
[B] Revenue deficit and capital account deficit
[C] Fiscal deficit and current account deficit
[D] Fiscal deficit and capital account deficit

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46. Which of the following will contribute to fiscal consolidation?

  1. RBI increasing Repo rate
  2. Increase in Statutory liquidity ratio
  3. Start-up India
  4. Issuing government bonds and T-bills

Select the correct code from options given below:

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

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47. Consider the following statements:

  1. While Real GDP calculation takes inflation in account, Nominal GDP does not.
  2. Nominal GDP is often higher than real GDP.
  3. GDP in India is calculated by the Central Statistics Office.

Which of 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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48. To trade in which of the following, you need demat account in India?

  1. Listed Stocks
  2. Debentures
  3. Exchange Traded Funds

Select the correct option from the codes given below:

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

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49. With reference to the Statutory Liquidity Ratio (SLR), consider the following observations:
1. Banks can keep cash, government bonds as well as gold to meet their SLR requirements
2. SLR is one of the means to finance government’s fiscal deficit
Which of the above is / are correct statements?

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

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50. Consider the following statements about the Prepaid Payment Instruments:

  1. These are regulated by RBI
  2. These instruments do not permit cash withdrawal facilities

Which of the above statements is/are correct?

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

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