Indian Economy MCQs
Indian Economy Multiple Choice Questions (MCQs) for State and UPSC Civil Services Examinations. Objective Questions on Indian Economy for competitive examinations.
61. Since April 1, 2002 the entire net collections under the small saving schemes are transferred to States/Union Territories in India. This has been referred to as a loan from which among the following accounts?
[A] Consolidated Fund of India
[B] Consolidated Funds of States
[C] Public Account of India
[D] None of them
Show Answer
Correct Answer: C [Public Account of India]
Notes:
In the Union Budget 1999-00, a National Small Savings Fund (NSSF) has been created in the Public Account of India and all collections/ disbursements under small savings certificates, deposits and public provident fund are made into/ out of this Fund. Under the new accounting system, investments from the Fund are being made in Central and State Government securities as per the norms decided from time to time by the Government of India. Therefore, the figures for small savings since 1999-2000 relate to Centre’s share in small savings and prior to this period, the figures represent total small saving collections. Since April 1, 2002 the entire net collections under the small saving schemes are transferred to States/Union Territories. Thereafter, the amount represents reinvestment by NSSF in Central Government securities from redemption proceeds. This new system of transferring the entire net collections of small savings to States and Union Territories as loans from the Public Account is in vogue.
62. Which among the following Ministry is running the “Village Grain Bank Scheme”?
[A] Ministry of Agriculture
[B] Ministry of Food and Public Distribution
[C] Ministry of Tribal Affairs
[D] Ministry of Rural Development
Show Answer
Correct Answer: B [Ministry of Food and Public Distribution]
Notes:
Village Grain Bank Scheme was launched in 1997 under the `Ministry of Tribal Affairs` for establishing the grains Banks in 11 states with maximum tribal population. Now this scheme has been transferred to the Ministry of Food and Public Distribution.
63. To get the Credit History of a company, which among the following should be approached?
[A] ECGC
[B] CIBIL
[C] SEBI
[D] RBI
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Correct Answer: B [CIBIL]
64. Under which among the following acts, Hawala transactions are banned in India?
[A] FERA
[B] FEMA
[C] FRBMA
[D] AFSPA
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65. Which among the following is terms is commonly not assciated with Budgets in India?
[A] Outcome Budget
[B] Gender Budget
[C] Austerity Budget
[D] Gross Budgetary Support
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Correct Answer: C [Austerity Budget]
66. National Optical Fiber Network will be providing broadband connectivity to which among the following?
[A] Municipalities
[B] Gram Panchayats
[C] Panchayat Samitis
[D] Nagarpalikas
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Correct Answer: B [Gram Panchayats]
67. How many key infrastructure sectors are known as Core sector in Indian Economy,used for Index of Industrial Production (IIP) data?
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68. Interests payable on savings bank accounts in India is ___
[A] Not regulated
[B] Regulated by RBI
[C] Regulated by Central Government
[D] Regulated by State Governments
Show Answer
Correct Answer: A [Not regulated]
69. Which among the following is known as Gresham’s Law?
[A] Good Money (if not limited in quantity) drives out bad money out of circulation
[B] Bad Money (if not limited in quantity) drives out Good money out of circulation
[C] Good Money (if limited in quantity) drives out bad money out of circulation
[D] Bad Money (if limited in quantity) drives out Good money out of circulation
Show Answer
Correct Answer: B [Bad Money (if not limited in quantity) drives out Good money out of circulation]
Notes:
Bad Money (if not limited in quantity) drives out Good money out of circulation – This statement was given by Sir Thomas Gresham, the Economic adviser of Queen Elizabeth. This law states that people always want to hoard Good Money and spend Bad Money when two forms of Money are in circulation at the same time.
70. 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
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