Indian Economy MCQ Practice Set – Series 7

Indian Economy MCQ Practice Set Questions Answers – Series 7

 1)…….is also called ‘sunrise’ industry:

a) Copper

b) Plastic

c) Automobile

d) Jewellry

View Answer
Option – c)

2) In Indian, liberal Industrial Policy was adopted in the year:

a) 1948

b) 1956

c) 1985

d) 1991

View Answer
Option – d)

3) Since when disinvestment started in public enterprises?

a) 1990-91

b) 1991-92

c) 1992-93

d) 1993-94

View Answer
Option -b)

4) Which of the following is NOT a part of Indian’s Money Market?

a)Bill Markets

b) Call Money Market

c) Banks

d) Indian Gold Council

View Answer
Option – d)

5) Which of the following cannot called a Debt Instrument as referred in financial transactions?

a) Certificate of Deposits

b) Bonds

c) Stocks

d) Commercial Papers

View Answer
Option – c)

6) 70% of working population of India is engaged in:

(a) public sector

(b) primary sector

(c) secondary sector

(d) tertiary sector

View Answer
Option – b)

7) Who wrote the book ‘Planned Economy for India’?

(a) M. Visvesvaraya

(b) Sardar Vallabhbhai Patel

(c) Jawaharlal Nehru

(d) Mahatma Gandhi

View Answer
Option -a)

8) Consider the following statements in respect of the National Rural Employment Guarantee Act, 2005 :

1. Under the provisions of the Act, 100 days of employment in a year to every household whose adult members volunteer to do unskilled manual work has become a fundamental right.

2. Under the provisions of the Act, women are to get priority to the extent that one-half of persons who are given employment are women who have asked for work. Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 and 2

View Answer
Option – b)

9) Which of the following is the amount of Insurance cover provided to the workers of the unorganized sector under Rashtriya Swasthya Bima Yojana ?

a) Rs. 10,0007

b) Rs. 20,0007

c) Rs. 30,0007

d) Rs. 40,0007

View Answer
Option – c)

10) Which of these programs has not been included in the Swarna Jayanti Swarozgar Yojana?

(a) IRDP



(d) JR

View Answer
Option – d)

11) Which of the following are definite implications of a fall in inflation?

1. Prices have fallen

2. Prices are increasing more slowly than before

3. Food supply has increased

4. There is industrial stagnation

(a) 1 and 3

(b) 1 only

(c) 2 only

(d) 1, 3 and 4

View Answer
Option – c)

12) Treasury bills are sold in India by:

a) Reserve Bank of India

b) State Governments

c) Commercial Banks


View Answer
Option – a)

13) In which one of the following places was Asia’s first Export Processing Zone (EPZ) set up?

a) Kandla

b) Cochin

c) Surat

d) Santa Cruz

View Answer
Option – a)

14) Consider the following events:

1. Conversion of Imperial Bank of India into S.B.I.

2. Establishment of NABARD

3. Setting up of RRBs

4. Nationalization of R.B.I.

The correct chronological sequence of these events is :

(a) 4, 1, 2, 3

(b) 4, 1, 3, 2

(c) 1, 4, 3, 2

(d) 1, 4, 2, 3

View Answer
Option – b)

15) The number of Banks nationalized since 1969 is :

(a) 8

(b) 12

(c) 14

(d) 20

View Answer
Option – d)

16) Which of the following are referred to as the developed economies?

(a) Countries earning huge industrial profits

(b) Countries proficient in trade and export

(c) Countries having large per capita income

(d) Countries advanced in technology

View Answer
Option – c)

17) To know whether the rich are getting richer and the poor getting poorer, it is necessary to compare;

(a) the availability of foodgrains among two sets of people, one rich and the other poor, over different periods of time

(b) the distribution of income of an identical set of income recipients in different periods of time

(c) the wholesale price index over different periods of time for different regions

(d) the distribution of income of different sets of income recipients at a point of time

View Answer
Option – b)

18) A ‘want’ become a ‘demand’ only when it is backed by the:

a) Ability to purchase

b) Necessity to buy

c) Desire to buy

d) Utility of the product

View Answer
Option – a)

19) Which of the following agencies has the power to declare any industrial unit as a potentially sick unit?

(a) BIFR



(d) IRBI

View Answer
Option – a)

20) Which of the following statements regarding the iron and steel plants at Bhilai, Rourkela and Durgapur are correct?

1. These plants were established in public sector during the Second Five Year Plan

2. These are located in the steel raw material belt

3. These were established with the help from Britain, Soviet Union and West Germany respectively

(a) 1 and 2

(b) 2 and 3

(c) 1 and 3

(d) 2 and 3

View Answer
Option – a)

All The Best!!