Indian Economy MCQ Practice Set – Series 5

Indian Economy MCQ Practice Set Questions Answers – Series 5

1)Which one of the following countries is not a member of ASEAN?

a) Brunei Darussalam

b) Cambodia

c) Vietnam

d) India

View Answer
Option – d)

2) Who devised the ‘Human Development Index’?

a) Mahbubul Haq

b) Amartya Sen

c) Adam Smith

d) Paul Streeten

View Answer
Option – a)

3) RBI is empowered to vary the CRR of commercial banks between

a) 3-15%

b) 5-12%

c) 2-11%

d) 4-13%

View Answer
Option – a)

4) The objective of self-reliance and zero net foreign aid was declared in :

(a) Second 5-Yr Plan

(b) Third 5-Yr Plan

(c) Fourth 5-Yr Plan

(d) Fifth 5-Yr Plan

View Answer
Option – c)

5) What is the main objective of Antyodaya program?

(a) Uplift the poor

(b) Uplift the urban poor

(c) Uplift the farmer

(d) Uplift the landless labour

View Answer
Option – a)

6) Which of the following accounts for Cost-Push Inflation?

(a) Increase in money supply

(b) Increase in indirect taxation

(c) Increase in population

(d) Increase in non-plan expenditure

View Answer
Option – b)

7) The best way, a bank can avoid loss is to :

(a) lend only to individuals known to the bank

(b) accept sound collateral

(c) give only short-term loans

(d) lend only to bank’s old customers

View Answer
Option – a)

8) To prevent recurrence of scams in Indian Capital Market, the Government has assigned regulatory powers to

a) RBI

b) SBI



View Answer
Option – c)

9) What is the animal on the insignia of the RBI?

a) Lion

b) Tiger

c) Panther

d) Elephant

View Answer
Option – b)

10) Which of the following is the basis for determining the national income?

(a) Total revenue of the State

(b) Net profit earned and expenditure incurred by the State

(c) Production of goods and services

(d) All of the above

View Answer
Option – c)

11) The basic attribute of a formal organization is :

(a) esteem and prestige

(b) roles and duties

(c) dominance and supremacy

(d) rules and regulations

View Answer
Option – d)

12) Value-added tax is :

(a) an ad valorem tax on domestic final consumption collected at all stages between production and the point of final sale

(b) an ad valorem tax on final consumption collected at the manufacturing level

(c) tax on final consumption collected at the consumption stage

(d) a special tax levised by states on products from other states

View Answer
Option – a)

13) Import substitution implies

(a) importing new items in place of old items of import

(b) gradual reduction of imported goods to save foreign exchange

(c) increasing domestic supply of goods by imposing import restrictions

(d) replacing import items by domestic production of such items

View Answer
Option – d)

14) Highest milk producer in India is :

(a) U.P.

(b) Gujarat

(c) Punjab

(d) Haryana

View Answer
Option – a)

15) The area under cultivation is declining fast in the case of:

(a) cotton

(b) sugarcane

(c) jute

(d) tea

View Answer
Option – c)

16) In Which of the following years, Indian switched over to decimal currencies?

a) 1955

b) 1957

c) 1950

d) 1956

View Answer
Option – b)

17)Index ‘Residex ’is associated with

a) Share price

b) Mutual fund price

c) Price inflation index

d) Land price

View Answer
Option – d)

18) Which State stands first in the length of roads in the country?

(a) Maharashtra

(b) Uttar Pradesh

(c) Madhya Pradesh

(d) Rajasthan

View Answer
Option – a)

19) Which institution provides long run finance to industries?

(a) UTI

(b) LIC

(c) GIC

(d) All of these

View Answer
Option – d)

20) Which of the following schemes was intended to tap the black money?

(a) SBI Deposit Scheme

(b) UTI Bonds

(c) Long term Operations Scheme

(d) India Development Bonds

View Answer
Option – d)

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