Indian Economy MCQ Practice Set – Series 3

Indian Economy MCQ Practice Set Questions Answers – Series 3


1) Debenture holders of a company are its

a) shareholders

b) creditors

c) debtors

d) directors

View Answer
Option – b)


2) By which one of the following years does the Eleventh Five Year Plan aim at achieving 10% rural tele-density in India from 1.9%?

a) 2009

b) 2010

c) 2011

d) 2012

View Answer
Option – b)


3) The Second Five Year Plan laid more stress upon:

(a) agriculture

(b) industrialization

(c) removing poverty

(d) self-reliance

View Answer
Option – b)


4) Poverty Gap is :

(a) the difference between poverty line and actual income levels of all those living below that line

(b) gap between the rich and the poor

(c) gap between developed nations and developing nations

(d) gap in infrastructural facilities between developed and developing nations

View Answer
Option – a)


5) Ten rupee notes bear the signature of:

(a) President

(b) Finance Minister

(c) Secretary, Ministry of Finance

(d) Governor, Reserve Bank of India

View Answer
Option – d)


6) Broad money in India is :

(a) M1

(b) M2

(c) M3

(d) M4

View Answer
Option – c)


7) Nationalization of banks was done with the purpose of:

(a) financing the industries

(b) improving credit facilities

(c) consolidating the economy

(d) improving security of deposits

View Answer
Option – c)


8) The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called:

(a) SBRC (Statutory Bank Ratio)

(b) SLR (Statutory Liquid Ratio)

(c) CBR (Central Bank Reserve)

(d) CLR (Central Liquid Reserve)

View Answer
Option – b)


9) Which of the following is at the apex of Industrial Finance in India?

(a) Industrial Finance Corporation

(b) Reserve Bank of India

(c) Industrial Development Bank of India

(d) Industrial Credit and Investment Corporation of India

View Answer
Option – c)


10) If the price of an inferior good falls, its demand:

(a) rises

(b) falls

(c) remains constant

(d) can be any of the above

View Answer
Option – c)