Indian Economy MCQ Set-2

Most Important GK on Indian Economy for competitive examinations in India such as UPSC CSE, State PSC, IBPS PO, SBI PO, IBPS SO, IBPS RRB, IBPS Clerk and various government & public sector undertaking jobs in India.

Q.1 Which of the following is NOT a inflation type?

A. Demand-Pull Inflation

B. Cost-Push Inflation

C. Built-in Inflation

D. Income inflation

Answer: D. Income inflation

Q.2 Which of the following is NOT a component of money supply in India?

A. M0

B. M3

C. M5

D. M1

Answer: C. M5

Note: The Reserve Bank of India (RBI) is the central bank of our country. It manages the monetary system of our country. It has
classified the money supply of our country into four components.

M0 (Reserve Money)= Currency in circulation + Bankers’ deposits with the RBI + ‘Other’ deposits with the RBI
M1 (Narrow Money) = Currency with the public + Deposit money of the public (Demand deposits with the banking system + ‘Other’ deposits with the RBI).
M2 = M1 + post office savings deposits
M3 = M1 + Time deposits of the public with the banks
M4 = M3 + total post office deposits(excluding national savings certificate)

Q.3 What is a forward market?

A. Market for foreign exchange for future delivery is known as the forward market.

B. Market for foreign exchange for current delivery of imported product is known as forward market

C. Market for foreign exchange for future delivery of exported products is known as forward market

D. None of these

Answer: A. Market for foreign exchange for future delivery is known as the forward market.

Q.4 Which of the following is a non-development expenditure?

A. Railways

B. Roads

C. Posts

D. Defense

Answer: D. Defense

Note: Non-development expenditure refers to those expenditure of the government which does not directly help in economic development of the country. Cost of tax collection, cost of audit, printing of notes, internal law and order, expenditure on defence etc. are treated as non-developmental expenditure.

Q.5 Which among the following is considered to be the main determinant of the level of activity is in national income terms?

A. Realized Investment

B. Factor Mobility

C. Planned savings

D. None of these

Answer: A. Realized Investment

Note: Realized Investment means an Investment resulting in a sale, transfer or restructuring of a good or service. It is considered to be the main determinant of the level of activity in national income.

Q.6 Interest rate policy is a part of which of the following?

A. Monetary Policy

B. Fiscal Policy

C. Capital Policy

D. None of these

Answer: A. Monetary Policy

Note: Monetary policy is the policy adopted by the monetary authority of a nation to control either the interest rate payable for very short-term borrowing (borrowing by banks from each other to meet their short-term needs) or the money supply, often as an attempt to reduce inflation or the interest rate, to ensure price stability and general trust of the value and stability of the nation’s currency.

Q.7 Micro credit comes under which of the following activity in India?

A. Non banking finance

B. Commercial banking

C. Corporate banking

D. Private banking

Answer: A. Non Banking Finance

Q.8 National Small Savings Fund is a part of which of the following?

A. Public Account of India

B. Consolidated Fund of India

C. Contingency Fund of India

D. None of these

Answer: A. Public Account of India

Q.9 Which of the following state of India produces the largest amount of bamboo?

A. Arunachal Pradesh

B. Andhra Pradesh

C. Assam

D. Meghalaya

Answer: C. Assam

Q.10 The Essential Commodities Act was passed in India in which of the following year?

A. 1950

B. 1955

C. 1976

D. 2014

Answer: B. 1955

Note: The Essential Commodities Act is an act of the Parliament of India that was established to ensure the delivery of certain commodities or products, the supply of which, if obstructed due to hoarding or black marketing, would affect the normal life of the people.

List of Indian Economy MCQ sets from GKLead.com

Tags: , , , , , , ,