Indian Economy MCQ Practice Set – Series 6


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

View Answer
Option – 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

View Answer
Option – d)


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

(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

View Answer
Option – 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

View Answer
Option – a)


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

(a) 80%

(b) 97%

(c) 86%

(d) 100%

View Answer
Option – c)


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

(a) Bhutan

(b) Malaysia

(c) Maldives

(d) Seychelles

View Answer
Option – 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

View Answer
Option – 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

View Answer
Option – 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

View Answer
Option – 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

View Answer
Option – c)