Indian Economy MCQ Set-12

Financial Emergency in India MCQ GK 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 Who can declare financial emergency in India?

A. Prime Minister of India

B. Governor of RBI

C. President of India

D. Union Cabinet of India

Answer: C. President of India

Note: Under article 360 of the Constitution of India, the President of India can declare financial emergency with approval from the cabinet.

Q.2 When was the financial emergency declared in India?

A. 1991

B. 1975

C. 1985

D. Never

Answer: D. Never

Note: Although, national emergency was declared in 1975, financial emergency is not declared in India till 2021, i.e. writing of this post.

Q.3 Under which of the following circumstances, financial emergency can be declared in India?

I. At the time of financial instability in the country

II. In case of threat to financial stability to India or its any part of territory

A. Only I

B. Only II

C. Both I & II

D. None of the above

Answer: C. Both I & II

Q.4 Which of the following is NOT correctly matched?

I. Article 352: National Emergency

II. Article 356: Emergency in a State

III. Article 358: Financial Emergency

IV. Article 368: Constitutional Amendment

A. Only I

B. Only II

C. Only III

D. Both I & III

Answer: C. Only III

Note: Under the Article 360, financial emergency can be declared

Q.5 A proclamation of financial emergency must be approved by the both houses of the parliament within how many months from the date of issue?

A. 1 month

B. 2 months

C. 3 months

D. 6 months

Answer: B. 2 months

Note: Within two months of its issuance, a declaration of financial emergency must be approved by a simple majority in both the Houses of Parliament i.e. Lok Sabha and Rajya Sabha. If the Lok Sabha is dissolved, the Rajya Sabha may approve it, but the Lok Sabha must approve it within 30 days after its reconstitution.

Q.6 Which of the following is/are implication of financial emergency in India?

I. The Union gets the power to give financial orders to the states based on its own policies.

II. The President may order the States to limit the salary, and allowances of government employees.

III. Money bills and other financial bills can be reserved, that come up for review by the President after passing through the state legislature.

IV. The President has the authority to order the reduction of the salaries and allowances of the Central Government employees, including the Supreme Court and High Court judges.

A. Only I

B. Only II

C. Both I & IV

D. All, I, II, III & IV

Answer: D. All, I, II, III & IV

Q.7 Which part of Indian Constitution has Financial emergency provisions?

A. XVIII

B. XVI

C. XVII

D. XV

Answer: A. XVIII

Note: Part XVIII, Article 360 of the Indian Constitution has emergency provisions.

Q.8 Choose the CORRECT one for financial emergency in India?

I. The resolution approving the declaration of financial emergency should be passed by any House of Parliament by a Special Majority 

II. The resolution approving the declaration of financial emergency should be passed by any House of Parliament by a Simple Majority

A. Only I

B. Only II

C. Both I & II

D. None of the above

Answer: B. Only II

Q.9 Emergency provision of Indian Constitution are derived from constitution of which country?

A. Canada

B. Germany

C. USA

D. France

Answer: B. Germany

Q.10 India’s national economic crisis was observed in which of the following year?

A. 1991

B. 1992

C. 1993

D. 1995

Answer: A. 1991

List of Indian Economy MCQ sets from GKLead.com

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