Indian Economy MCQ Question Answer Paper Set 26

1)Fiscal Policy in India is formulated by—

a) The Reserve Bank of India

b) The Planning Commission

c) The Finance Ministry

d) The Securities and Exchange Boards of India

ans: c

2) In which of the following years was General Agreement on Tarriffs and Trade ( GATT) absorbed into the World Trade Organization (WTO) ?

a) 1991

b) 1995

c) 2000

d) 2005

ans: b

3) The functions of the Lead Bank are performed by:

a) State Bank of India

b) Reserve Bank of India

c) Any Bank

d) A Bank designed for this purpose

ans: d

4) Which of the following organizations is NOT associated with the financial banking sector in India?


b) BSE



ans: c

5) India has:

(a) Socialistic economy

(b) Gandhian economy

(c) Mixed economy

(d) Free economy

Ans: (c)

6) Match the following :

Five Year Plan Emphasis

A. First 1. Food Security and women empowerment

B. Second 2. Heavy industries

C. Fifth 3. Agriculture and community development

D. Ninth 4. Removal of poverty


(a) 1 2 4 3

(b) 3 2 4 1

(c) 1 4 2 3

(d) 3 4 2 1

Ans: (b)

7) Persons below the poverty line in India are classified as such based on whether:

(a) they are entitled to a minimum prescribed food basket

(b) they get work for a prescribed minimum number of days in a year

(c) they belong to agricultural labourer household and the scheduled caste/tribe social group

(d) their daily wages fall below the prescribed minimum wages

Ans: (a)

8) Which of the following is NOT an economic empowerment scheme launched by the Govt. of India for the benefit of various sections of society?

(a) STEP

(b) Swayamsidha


(d) Swadhar

Ans: c

9) Under Indira Gandhi National Old Age Pension Scheme (lGNOAPS), the benefits are available to the people having minimum age of ____

(a) 50 years

(b) 55 years

(c) 65 years

(d) 60 years

Ans: c

10) Of the various ways of financing government’s investment expenditure, the least inflationary is :

(b) deficit financing

(c) taxation

(d) public borrowing

Ans: (c)

11) Money Laundering normally involves:

a) placement of funds

b) layering of funds

c) integaration of funds

d) none of a, b and c

ans: d

12) Under which Five Year Plan Agriculture register a negative growth?

a) Third

b) Fifth

c) Seventh

d) Ninth

ans: a

13) The fertile land between two rivers is called:

a) Watershed

b) Water divide

c) Doab

d) Terai

ans: c

14) The largest Public Sector Bank in India is:

(a) Central Bank

(b) State Bank of India

(c) Punjab National Bank

(d) Indian Overseas Bank

Ans: (b)

15) Debenture holders of a company are its:

(a) shareholders

(b) creditors

(c) debtors

(d) directors

Ans: (b)

16) Which of the following is not an asset held by commercial banks?

(a) Bills of exchange

(b) Current account deposits

(c) Credit balances with the Reserve Bank

(d) Money lent at short notice

Ans: (b)

17) Who amongst the following was never a Governor of the RBI ?

(a) Bimal Jalan

(b) Y. V. Reddy

(c) Arup Roy Choudhury

(d) C. Rangarajan

Ans: c

18) Which of the following is not sponsor of newly established UTI-II?

(a) Punjab National Bank

(b) General Insurance Corporation

(c) Life Insurance Corporation of India

(d) State Bank of India

Ans: (b)

19) With reference to BRIC countries, consider the following statements:

1. At present, China’s GDP is more than the combined GDP of all the three other countries.

2. China’s population is more than the combined population of any two other countries.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Ans: (a)

20) Which of the following statements regarding Indian agriculture is correct?

(a) It contributes nearly 25 per cent of the GDP

(b) India has the least area in the world under pulse crops

(c) The share of foodgrains in gross cropped area has increased since independence

(d) Agriculture accounts for twenty per cent of India’s exports

Ans: (a)

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