Indian Economy MCQ Set-5

Most Important Indian Economic History MCQ 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 the oldest stock exchange of Asia?

A. National Stock Exchange, New Delhi

B. Hong Kong Stock Exchange

C. Bombay Stock Exchange

D. None of these

Answer: C. Bombay Stock Exchange

Note: BSE Limited, also known as the Bombay Stock Exchange, is an Indian stock exchange located on Dalal Street in Mumbai. Established in 1875, it is Asia’s oldest stock exchange.

Q.2 Which of the following is the oldest bank of India?

.A Bank of Hindustan

B. Bank of Calcutta

C. Bank of Bombay

D. Bank of Madras

Answer: A. Bank of Hindustan

Note: The first bank of India is Bank of Hindustan established in 1770. This bank was established at Calcutta under European management. It was liquidated in 1830-32.

Q.3 The oldest bank of India still in existence is:

A. Bank of Hindustan

B. Bank of Baroda

C. Bank of Calcutta

D. None of these

Answer: C. Bank of Calcutta

Note: The oldest commercial bank in India, SBI originated in 1806 as the Bank of Calcutta. Three years later the bank was issued a royal charter and renamed the Bank of Bengal.

Q.4 Which of the following body authorizes the credit limit to the National Co-operative Marketing Federation?





Answer: B. NABARD

Q.5 The correct formula of Net Interest Income?

A. Interest Earned + Interest Paid

B. Interest Earned – Interest Paid

C. Interest Earned – Interest Lost

D. None of these

Answer: B. Interest Earned – Interest Paid

Note: Net interest income reflects the difference between the revenue generated from a bank’s interest-bearing assets and the expenses associated with paying its interest-bearing liabilities.

Q.6 The difference between fiscal deficit and interest paid on borrowing of pervious year is called?

A. Primary deficit

B. Secondary deficit

C. Budget deficit

D. Fiscal deficit

Answer: A. Primary Deficit

Q.7 Which of the following correctly defines Foreign Indirect Investment (FII) in India?

I. The purchase of shares and bonds of Indian companies by Foreign Institutional Investors 

II. The purchase of real estate by foreign national

III. The purchase of products of services by foreign company or individual

A. Only I

B. Only II

C. Only III

D. Both I & II

Answer: A. Only I

Q.8 Black revolution in India is associated with?

A. Petroleum

B. Black Soil

C. Black Grapes

D. None of these

Answer: A. Petroleum

Note: Crude petroleum is originally found in black color. It is also known as ‘Black Gold’. In order to increase the production of crude oil and self-dependence on petroleum, the term “Black Revolution” was coined in India.

Q.9 Red revolution in India is associated with?

I. Meat Production

II. Tomato Production

III. Chilly Production

A. Only I

B. Only II

C. Both I & II

D. I, II & III

Answer: C. Both I & II

Note: Red revolution for production of meat and tomato was started in India by Vishal Tewari.

Q.10 A Maharatna company can invest up to which of the following amounts in a project independently?

A. Rs. 1000 crore

B. Rs. 5000 crore

C. Rs. 10000 crore

D. Rs. 100 crore

Answer: B. Rs. 5000 crore

Note: A Maharatna PSU can invest up to Rs 5,000 crore in a project independently, while the limit for Navratna companies is Rs 1,000 crore.

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