Indian Economy MCQ Practice Set – Series 10

Indian Economy MCQ Practice Set Questions Answers – Series 10

1) The Green Revolution has not been as green as it has been made out to be because

a) it is confined only to wheat

b) it is confined to selected regions

c) it created big farmers

d) None of the above

View Answer
Option – a)

2) Crop Insurance is the monopoly of

a) National Insurance Company

b) General Insurance Company

c) Life Insurance Corporation


View Answer
Option – b)

3) The term Green Revolution was coined by

a) Dr Norman Borlaug

b) Dr MS Swaminathan

c) Dr Manmohan Singh

d) Dr William Gande

View Answer
Option – d)

4) Development means economic growth plus

a) inflation

b) deflation

c) price stability

d) social change

View Answer
Option – d)

5) Consider the following statements:

1. The highest deciding body for planning in India is the Planning Commission of India.

2. The Secretary of the Planning Commission of India is also the Secretary of National Development Council

3. The Constitution includes economic and social planning in the Concurrent List in the Seventh Schedule of the Constitution of India.

Which of the statements given above is/are correct?

(a) 1 and 2

(b) 2 only

(c) 2 and 3

(d) 3 only

View Answer
Option – b)

6) The first attempt to initiate economic planning in India was made by:

(a) Balwantrai Mehta

(b) Vallabhbhai Patel

(c) M. Visvesvaraya

(d) Jawaharlal Nehru

View Answer
Option – c)

7) Consider the following statements:

1. The loans disbursed to farmers under Kisan Credit Card Scheme are covered under

Rashtriya Krishi Beema Yojna of Life Insurance Corporation of India.

2. The Kisan Credit Card holders are provided personal accident insurance of Rs.50000 for accidental death and Rs. 25000 for permanent disability.

Which of the statement given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 or 2

View Answer
Option – b)

8) One of the reasons for India’s occupational structure remaining more or less the same over the years has been that:

(a) productivity in agriculture has been high enough to induce people to stay with agriculture

(b) people are largely unaware of the significance of transition from agriculture to industry for economic development

(c) investment pattern has been directed towards capital intensive industries

(d) ceilings on land holdings have enabled more people to- own land and hence their preference to stay with agriculture

View Answer
Option – b)

9) Who was the Finance Minister during the New Economic Policy

a) Manmohan Singh

b) Uma Kapila

c) Pranab Muukherjee

d) Jaswant Singh

View Answer
Option – a)

10) Which of the following governmental steps has proved relatively effective in controlling the double digit rate of inflation in the Indian economy during recent years?

(a) Containing budgetory deficits and unproductive expenditure

(b) Streamlined public distribution system

(c) Enhanced rate of production of all consumer goods

(d) Pursuing an export-oriented strategy

View Answer
Option – a)

11) Who among the following is not a member of the NDC?

a) All Ministers of Union Cabinet

b) Chief Ministers of the States

c) Governors of the State

d) Administrators of Union Territories

View Answer
Option – c)

12) The Issue Department of the RBI maintains a _______ against printing of notes:

(a) Minimum Reserve System

(b) Proportional Reserve System

(c) Proportional Gold Reserve System

(d) Proportional Foreign Securities Reserve System

View Answer
Option – a)

13) Which of the following Mahatma Gandhi series of currency notes issued by the RBI has “ecology” depicted on it?

(a) Rs. 500

(b) Rs. 100

(c) Rs. 50

(d) Rs. 5

View Answer
Option – b)

14) Which of the following are the functions of the Central Bank of India?

1. Regulation of currency and flow of credit system

2. Maintaining exchange value of rupee

3. Formulating monetary policy of India

4. Supervisory powers over the indigenous bankers and leasing companies

(a) 1 and 3

(b) 1, 2 and 3

(c) 1, 2 and 4

(d) 1, 2, 3 and 4

View Answer
Option – d)

15) Who amongst the following has never held post of the Governor of the RBI?

a) C. Rangarajan

b) L.K. Jha

c) Manmohan Singh

d) Usha Thorat

View Answer
Option – d)

16) Investment in public works is known as

a) revenue expenditure

b) current expenditure

d) capital expenditure

d) Either ‘a’ or ‘b’

View Answer
Option – c)

17) An advalorem duty is a tax on the basis of:

(a) the price of a commodity

(b) the value added

(c) the advertisement expenditure

(d) the unit of the commodity

View Answer
Option – a)

18) Dear Money Policy implies:

(a) high price level

(b) large money supply

(c) high production

(d) high interest rates

View Answer
Option – d)

19) Whose signature is found on one rupee notes in India?

a) The Secretary, Finance

b) The Governor, RBI

c) The PM of India

d) None of these

View Answer
Option – a)

20) Which industry earns the second highest, net foreign exchange from the trade?

(a) Gems and ornaments

(b) Textile industry

(c) Steel industry

(d) Engineering goods industry

View Answer
Option – d)

All The Best!!