Indian Economy MCQ (Pages :37)

  • 121 Consider the following states: 1. Uttarakhand 2. Nagaland 3. Sikkim 4. Mizoram Which among the above have recently declared their intent to go for 100% organic farming?

    (A) 1
    (B) 1 & 2
    (C) 1; 2 & 3
    (D) 1; 2; 3 & 4
  • 122 Consider the following steps: 1.%%Banking Department gets currency from the Issue Department 2.%%Government puts the currency in circulation 3.%%Central Government Incurs a deficit in its Budget 4.%%Government Sells Treasury Bills to Banking Department of RBI Which among the following is the correct order of the above steps?

    (A) 1 2 3 4
    (B) 2 3 4 1
    (C) 3 4 1 2
    (D) 4 3 2 1
  • 123 Consider the following taxes: 1.%%Service Tax 2.%%Tax on profession of CA 3.%%Tax on interest earned on investment Which among the above is / are indirect taxes?

    (A) Only 1
    (B) Only 1 & 2
    (C) Only 2 & 3
    (D) 1; 2 & 3
  • 124 Consider the following: 1. Dated Securities 2. T-Bills 3. Certificates of Deposit (CDs) 4. Municipal Bonds The Individuals in India can invest in which among the above?

    (A) 1
    (B) 12
    (C) 123
    (D) 1234
  • 125 Consider the following: 1. Low per capita income 2. Low rate of capital formation 3. Working force largely in the tertiary sector Which among the above is/ are the characters of an underdeveloped economy?

    (A) 1 & 2
    (B) 2 & 3
    (C) 1 & 3
    (D) 1; 2 & 3
  • The tertiary sector based economies are generally developed. In most underdeveloped economies, people depend upon the primary sector
  • 126 Consider the following: 1. Population 2. Population Density 3. Male working Population Which among the above parameters are used in India to define a Census Town?

    (A) 1 only
    (B) 2 only
    (C) 1 & 2 only
    (D) all of them
  • 127 Consider the following: 1.%%Agriculture 2.%%Small-scale industries 3.%%Cottage and village industries 4.%%Urban Handicraft Industry National Bank for Agriculture and Rural Development (NABARD) was established on 12 July 1982, for providing credit to which among the above?

    (A) 1
    (B) 12
    (C) 1; 2; 3
    (D) 1; 2; 34
  • The National Bank for Agriculture and Rural Development (NABARD) came into existence on 12 July
  • 128 Consider the following: 1.%%Balance of trade 2.%%Net factor income 3.%%Net transfer payments Which among the above make the part of the “Capital Account”?

    (A) Only 1
    (B) 1 & 2
    (C) 2 & 3
    (D) 1; 2 & 3
  • 129 Consider the following: 1.%%Birth Rate 2.%%Death Rate Since 1951, which among the following is correct about the above two variables of Population of India?

    (A) Birth Rate declined ; Death Rate showed fluctuations
    (B) Birth Rate showed Fluctuations; Death Rate declined
    (C) Birth Rate Increased; Death rate declined
    (D) Birth Rate declined ; Death Rate declined
  • 130 Consider the following: 1.%%Conservation of Soil, Water and Biodiversity 2.%%Improve Rural roads and Bridges 3.%%Gap the Rural-Urban Divide Which among the above are the objectives / functions of Rural Infrastructure Debt Fund?

    (A) None
    (B) 1 & 2
    (C) Only 2
    (D) All
  • 131 Consider the following: 1.%%Consumer Price Index for Industrial Workers 2.%%Consumer Price Index for Agricultural Laborers 3.%%Consumer Price Index for Rural Laborers Which among the above were used in estimation of the poverty in states, in the Lakdawala Formula?

    (A) Only 1 & 2
    (B) Only 2 & 3
    (C) Only 1 & 3
    (D) All of them
  • Please note that in Lakdawala formula, the following indices have been used in estimation of the poverty in states: 1. Urban Poverty: CPI-IL (Consumer Price Index for Industrial Laborers) 2. Rural Poverty: CPI- AL (Consumer price Index for Agricultural Laborers)
  • 132 Consider the following: 1.%%Currency Printing 2.%%Exchange of soiled Currency notes 3.%%Currency Distribution Which among the above are the functions of “Currency Chests”?

    (A) only 1
    (B) 1 & 2
    (C) 2 & 3
    (D) Only 3
  • Distribution of notes and coins throughout the country is done through designated bank branches, called chests. Chest is a receptacle in a commercial bank to store notes and coins on behalf of the Reserve Bank. Deposit into chest leads to credit of the commercial bank’s account and withdrawal, debit. The major functions of the currency chests are: 1.%%To meet currency requirement of public 2.%%To withdraw unfit notes 3.%%To provide exchange facility from one denomination to another 4.%%To make payment requirement of the Government 5.%%To exchange the mutilated notes 6.%%To avoid frequent movement of cash Apart from having its own chests at certain places, RBI also has arrangements with other banks which are entrusted with custody of the currency notes and coins for the same purpose.
  • 133 Consider the following: 1.%%Federation of Indian Mineral Industries 2.%%Federation of Indian Chambers of Commerce and Industry 3.%%Federation of Indian Export Organizations Which among the above was/ were set up by Ministry of Commerce, Government of India?

    (A) 1 only
    (B) 1 & 2 only
    (C) 2 & 3 only
    (D) 3 only
  • 134 Consider the following: 1.%%Foreign Direct Investments 2.%%Foreign Institutional Investments 3.%%American Depository Receipts 4.%%Global Depository Receipts In context with the “Sources of Foreign Exchange Reserves” which among the above are placed under Portfolio Investment?

    (A) 1; 3 & 4
    (B) 2; 3 & 4
    (C) 1 & 2
    (D) 3 & 4
  • 135 Consider the following: 1.%%Growth rate of the economy 2.%%Replacement demand 3.%%Reserve stock requirements 4.%%Budget Allocations to various department Which among the above are used by RBI to estimate the demand for banknotes?

    (A) 1 & 2
    (B) 1; 2 & 3
    (C) 2 & 3
    (D) 1; 2 & 4
  • 136 Consider the following: 1.%%Hearing appeals against the decisions and orders of the Chief Commissioners of Income Tax 2.%%Adjudication of disputes in respect of levy, assessment, collection and enforcement of direct taxes 3.%%Adjudication of disputes with respect to the rates of duties of Customs and Central Excise on goods Which among the above come under the functions of “National Tax Tribunal”?

    (A) Only 1 & 2
    (B) Only 2 & 3
    (C) Only 1 & 3
    (D) Only 1
  • Hearing appeals against the decisions and orders of the Chief Commissioners of Income Tax, Directors General of Income Tax, Commissioners of Income Tax, Commissioners of Income Tax (Appeals) and Deputy Commissioners of Income Tax (Appeals) comes under the functions of Income Tax Appellate
  • 137 Consider the following: 1.%%Individual money lenders 2.%%Cooperative Banks 3.%%Primary Agri-Credit Societies Which among the above are parts of Indian Money Market?

    (A) None of them
    (B) Only 2
    (C) Only 2 & 3
    (D) All of them
  • Money markets are those markets where borrowing and lending of short term funds ( maturity 1 day to 1 year) takes place. Due to short maturity, the instruments of money market are liquid and can be converted to cash easily and thus are able to address the need of the short term surplus fund of the lenders and short term borrowing requirements of the borrowers. The interest rates get determined in the money markets Money Market in India is divided into unorganized sector and organized sector. The Unorganized market is old Indigenous market which includes indigenous bankers, money lenders etc. Organized market includes Governments (Central and State), Discount and Finance House of India (DFHI), Mutual Funds, Corporate, Commercial / Cooperative Banks, Public Sector Undertakings (PSUs), Insurance Companies and Financial Institutions and Non-Banking Financial Companies (NBFCs). Organized Money Market is regulated by RBI as well as SEBI.
  • 138 Consider the following: 1.%%Liquidity Adjustment Facility 2.%%Devaluation of Currency 3.%%Open Market Operations Which among the above are Fiscal Measures?

    (A) 1 & 2
    (B) 2 & 3
    (C) 1 & 3
    (D) only 2
  • 139 Consider the following: 1.%%M1 2.%%M2 3.%%M3 4.%%M4 The Post office deposits are included in which of the above?

    (A) Only M2
    (B) Only M1
    (C) Only M3 & M4
    (D) Only M2 & M4
  • 140 Consider the following: 1.%%Notes 2.%%Coins 3.%%Credit Which among the above come under the category “Common Money”?

    (A) 1 only
    (B) 1 & 2
    (C) 1 & 3
    (D) 2 & 3
  • Common money refers to notes and coins. Credit money is bank money.
  • 141 Consider the following: 1.%%Open Market Operations 2.%%Liquidity Adjustment Facility 3.%%Market Stabilization Scheme Which among the following is the correct order of their introduction?

    (A) 2 1 3
    (B) 1 2 3
    (C) 1 3 2
    (D) 3 2 1
  • 142 Consider the following: 1.%%Primary Sector 2.%%Secondary Sector 3.%%Tertiary Sector Which among the following is the correct increasing order of contribution of the above in India’s GDP?

    (A) 123
    (B) 213
    (C) 321
    (D) 231
  • 143 Consider the following: 1.%%Reserve Bank of India 2.%%Insurance Regulatory Development Authority 3.%%Securities Exchange Board of India 4.%%Pension Fund Regulatory Development Authority 5.%%Life Insurance Corporation of India. In the above, how many are considered to be financial regulators?

    (A) 2
    (B) 3
    (C) 4
    (D) 5
  • LIC is not a Financial Regulator.
  • 144 Consider the following: 1.%%Rice 2.%%Wheat 3.%%Coarse cereals 4.%%Pulses Which among the following correctly represents Total Food Grains?

    (A) 1 +2
    (B) 1 + 2 + 3
    (C) 1+2+4
    (D) 1+2+3+4
  • 145 Consider the following: 1.%%SEBI Act 2.%%Companies Act 3.%%Depositories Act 4.%%Prevention of Money Laundering Act?

    (A) 1 2 3 4
    (B) 2 1 4 3
    (C) 2 1 3 4
    (D) 3 2 1 4
  • 146 Consider the following: 1.%%Supply of Credit 2.%%Cost of Credit Which among the above are affected by the Open Market Operations conducted by the Reserve Bank of India?

    (A) Only 1
    (B) Only 2
    (C) Both of them
    (D) None of them
  • 147 Consider the following: 1.%%Wholesale Price Index (WPI) 2.%%Consumer Price Index (CPI) 3.%%National Income Deflator Which among the above can be used to measure Inflation?

    (A) Only 1
    (B) Only 1 & 2
    (C) Only 1 & 3
    (D) All 1; 2 & 3
  • Many measures are available for measurement of inflation like Wholesale Price Index (WPI) (on a point-to-point basis and on average basis), Consumer Price Index (CPI) or national income deflator. The availability of these indices also differs from weekly to quarterly. The basic premise for linking with inflation is to ensure a positive real rate of interest to the investors.
  • 148 Corporate Tax is a kind of _______?

    (A) Direct tax
    (B) Indirect tax
    (C) Sales tax
    (D) VAT
  • 149 Countervailing duty is imposed on which of the following?

    (A) imported goods
    (B) exported goods
    (C) imported good on which import subsidy is applicable
    (D) exported goods on which export subsidy is applicable
  • 150 Deepak Parekh Committee is related to which of the following?

    (A) Industrial Reforms
    (B) Banking Reforms
    (C) Infrastructure Financing
    (D) Agriculture

"Real difficulties can be overcome. It's the imaginary ones that are unconquerable"

- Theodore Vail
PSC Malayalam PSC English android app, LDC, KAS, LGS, PSC Degree Level Exams, PSC Malayalam Questions
Gk4success Nursing App, PSC Staff Nurse, AIIMS, JIPMER, RCC, MOH, HAAD, DHA, PGIMER, ESIC Nursing Exams


Please let us know your experience with our website!.

Forgot Password

Please let us know your experience with our website!.