Indian Economy MCQ Question Answer Paper Set 16

1)Which one of the following companies has started a rural marketing network called’ e-chaupals’?

a) ITC

b) Dabur

c) Proctor and Gamble

d) Hindustan Lever

ans: a

2) ‘Eco Mark’ is given to the Indian products that are

a) pure and unadulterated

b) rich in proteins

c) environment friendly

d) economically viable

ans: c

3) Word Bull and Big are associated with which branch of commercial activity?

(a) Foreign Trade

(b) Banking

(c) Share Market

(d) Manufacturing

Ans: (c)

4) Among the following, which one is not a credit rating agency operating in India?


(b) ICRA

(c) Dow Jones

(d) CARE

Ans: (c)

5) NABARD was established on the recommendation of which of the following?

a) public Account Committee

b) Shivaraman Committee

c) Narsimham Committee

d) Tendulkar Committee

ans: b

6) Which of the following is not a part of machinery that settles industrial disputes?

a) Concialiation Officers

b) Board of Concialiation

c) Wage Courts

d) Works Committee

ans: c

7) A tax Which is paid by the person on whom the tax is incident is called a :

(a) local tax

(b) indirect tax

(c) direct tax

(d) rate

Ans: (c)

8) Consider the following statements:

In India, stamp duties on financial transactions are:

1. levied and collected by the State Government

2. appropriated by the Union Government

Which of the statements is/are correct?

(a) Only 1

(b) Only 2

(c) Both 1 and 2

(d) Neither 1 nor 2

Ans: (d)

9) What is the main source of revenue to meet different expenditures?

(a) Excise duties

(b) Customs duties

(c) Internal borrowings

(d) Income tax

Ans: (c)

10) Which industry in India was worst affected because of the partition?

(a) Paper and Iron

(b) Jute and Cotton

(c) Cotton and Sugar

(d) Engineering and Cement

Ans: (b)

11) Arbitrage implies:

(a) practice of taking advantage of rice difference in two markets

(b) the practice of under invoicing exports

(c) the practice of dumping viz., selling goods in a foreign market cheaper than the home market

(d) the practice of over-invoicing imports

Ans: (a)

12) Which of the following was formed to suggest means for eradicating black money?

(a) Finance Commission

(b) Sarkaria Commission

(c) Shah Commission

(d) Chelliah Committee

Ans: (d)

13) Regarding the International Monetary Fund, which one of the following statements is


(a) It can grant loans to any country

(b) It can grant loans to only developed countries

(c) It grants loans to only member countries

(d) It can grant loans to the central bank of a country

Ans: (c)

14) Which of the following is NOT a program / agency of the Union Ministry of Finance?

a) Investor Education and Protection Fund (IEPF)

b) National Foundation for Corporate Governance (NFCG)

c) Serious Frauds Investigation Office (SFIO)

d) Investment Commission

ans: a

15) What percentage of country’s demand for natural rubber is met by indigenous production:

(a) 80%

(b) 97%

(c) 86%

(d) 100%

ans: (c)

16) In which one of the following countries is Rupee its currency?

(a) Bhutan

(b) Malaysia

(c) Maldives

(d) Seychelles

Ans: (d)

17) Sickness of small units can be because of the factors:

1. under-utilization of capacity

2. non-payment by the large firms

3. dependence on borrowed funds

4. lack of management expertise

(a) 1, 2 and 3

(b) 2, 3 and 4

(c) 1, 2 and 4

(d) 3 and 4

Ans: (c)

18) The National Income is more at current prices than at constant prices because:

(a) increase in price is equal to increase in production

(b) increase in price is more than production

(c) increase in production is more than increase in price

(d) of decrease in production only

Ans: (c)

19) Which of the following bodies finalises the Five Year Plan proposals?

(a) Planning Commission

(b) Union Cabinet

(c) National Development Council

(d) Ministry of Planning

Ans: (c)

20) For regulation of the Insurance Trade in the country the Government has formed:

(a) SEBI

(b) Reserve Bank of India

(c) Insurance Regulatory and Development Authority

(d) General Insurance Corporation

Ans: (c)



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