Indian Economy MCQ Question Answer Paper Set 22

1)Who formulates the monetary policy in India?


b) RBI

c) Finance Ministry

d) Planning Commission

ans: b

2) Inside trading is related to:

a) Share Market

b) Horse racing

c) Taxation

d) International trade

ans: a

3) An instrument of qualitative credit control in India is:

a) open market operation

b) credit rationing

c) change in reserve ratio

d) bank rate policy

ans: b

4) If Cash Reserve Ratio (CRR) is lowered by the RBI, its impact on credit creation will be:

a) increase

b) decrease

c) no impact

d) none of the other

ans: a

5) As compared to revenue deficit, fiscal deficit will always remain:

a) Higher

b) Lower

c) Same

d) All of these

ans: a

6) The main objective of First Five-year Plan was:

(a) industrial growth

(b) economic growth

(c) development of agriculture including irrigation and power projects

(d) self-reliance

Ans: (c)

7) The Nehru-Mahalanobis strategy of development guided the planning practice in India from the

(a) First Five-Year Plan to the Sixth Five-Year Plan

(b) Fourth Five-Year Plan to the Eighth Five-Year Plan

(c) Second Five-Year Plan to the Seventh Five-Year Plan

(d) First Five-Year Plan to the Eighth Five-Year Plan

Ans: (c)

8) With reference to the government’s welfare schemes, consider the following statements:

1. Under the Antyodaya Anna Yojana, the food grains are available to the poorest of the poor families at Rs. 2 per kg for wheat and Rs.3 per kg for rice.

2. Under the National Old Age Pension Scheme, the old and destitute are provided Rs. 75 per month as Central Pension, in addition to the amount provided by most State Governments.

3. Government of India has allocated 25 kg food grains per below Poverty Line family per month, at less than half the economic cost.

Which of these statements are correct?

(a) 1 and 2

(b) 1 and 3

(c) 2 and 3

(d) 1, 2 and 3

Ans: (d)

9) What is the minimum calorie intake decided by the Planning Commission for rural and urban areas, respectively ?

(a) 2400 and 2100

(b) 2100and 2400

(c) 2400 and 2200

(d) 2100 and 2200

Ans: (a)

10) Among the causes of inflation can be listed:

1. slow growth in agricultural output

2. increasing non-development expenditure of Government

3. rapid population growth

4. rapid growth in costly imports

(a) 1 and 2

(b) 2 and 3

(c) 1, 2, 3 and 4

(d) 1 and 4 only

Ans: (c)

11) For international payments, the Indian currency is linked to :

(a) American Dollar

(b) British Sterling

(c) Gold Standard

(d) None of the above

Ans: (a)

12) The first Bank established in India was

(a) Punjab National Bank

(b) Traders Bank

(c) State Bank of India

(d) Bank of Hindustan

Ans: (d)

13) Since 1951, in India:

(a) national income has increased but per capita income has decreased

(b) national and per capita incomes have both increased fast

(c) national income has increased and per capita income has also increased but at a slower rate

(d) national income and per capita income have increased every year

Ans: (c)

14) The South Asian Free Trade Agreement (SAFTA) was introduced with a view of levying how much customs duty for trading any product within the SAARC zone?

a) 5%

b) 4%

c) 2%

d) No customs duty

Ans: d

15) After the initiation of economic reforms in 1991-92 the percentage share of:

(a) direct taxes increased and that of indirect taxes decreased in gross tax revenue

(b) Both direct and indirect taxes increased in gross tax revenue

(c) both direct and indirect taxes decreased in gross tax revenue

(d) direct taxes decreased and that of indirect taxes increased in gross tax revenue

Ans: (b)

16) J.J Irani Committee has been set up to suggest changes in:

a) Indian Telegraph Act

b) Cable Act

c) Companies Act

d) Patent Act

ans: c

17) Which of the following payment instrument tntroduced by the banks is known as Plastic Money?

a) Bearer Cheques

b) Credit Cards

c) Demand Drafts

d) Gift Cheques

ans: b

18) In India the co-operative movement was initiated in the sector of :

(a) farming

(b) consumer goods production

(c) agricultural credit

(d) marketing of agricultural products

Ans: (c)

19) Which one of the following is different from the others from the point of view of ownership?

(a) LIC Policy

(b) Bank Fixed Deposit

(c) Kisan Vikas Patra

(d) Debenture of a Company

Ans: (a)

20) Central Co-operative Banks work at:

a) District level

b) State level

c) National level

d) Block level

ans: a



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