Indian Economy MCQ Set-6

Most Important Indian Economic Development GK 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 Co-operative movement was initiated in which of the following sector in India?

A. Small Scale Enterprise

B. Agriculture

C. Banking

D. None of these

Answer: B. Agriculture

Q.2 The difference between revenue expenditure and revenue receipts is

A. Revenue deficit

B. Fiscal deficit

C. Income deficit

D. None of these

Answer: A. Revenue deficit

Note: When the difference between revenue receipts and revenue expenditure is negative, we have revenue deficit. It means that the government spends more than it earns.

Q.3 Which of the following country launched first-ever National Family Planning Programme?

A. India

B. China

C. Australia

D. Bangladesh

Answer: A. India

Note: India is the first country that launched a National Family Planning Programme in 1952, emphasizing fertility regulation for reducing birth rates.

Q.4 The family planning insurance scheme was introduced in India in which year?

A. 1952

B. 1990

C. 2005

D. 2015

Answer: C. 2005

Note: Family Planning Insurance Scheme (FPIS) was introduced w.e.f 29th November 2005 with Oriental Insurance Company, to take care of the cases of failure of Sterilization, Medical Complications or Death resulting from Sterilization, and also provide Indemnity Cover to the Doctor/Health Facility performing Sterilization procedure.

Q.5 National Mission for financial inclusion to ensure access to financial services, namely savings accounts, remittance, credit, insurance, pension in an affordable manner is the primary mission of:

A. Pradhan Mantri Kausal Yojana

B. Pradhan Mantri Jan Dhan Yojana

C. Pradhan Matri Kishan Yojana

D. None of these

Answer: B. Pradhan Mantri Jan Dhan Yojana

Note: Pradhan Mantri Jan Dhan Yojana, introduced in 2014 is a financial inclusion program of the Government of India open to Indian citizens, that aims to expand affordable access to financial services such as bank accounts, remittances, credit, insurance and pensions.

Q.6 Interest rate of saving bank account in India is decided by:


B. Ministry of Finance

C. Bank Themselves

D. None of these

Answer: C. Bank Themselves

Q.7 Interest Rate Risk arises from:

I. Fluctuating interest rate of bond owners.

II.  The sensitivity of fluctuating depends on two things, the bond’s time to maturity, and the coupon rate of the bond.

III. Share market variation

A. Only I

B. Only II

C. Only III

D. Both I & II

Answer: D. Both I & II

Q.8 The difference between total expenditure and total receipts is:

A. Capital deficit

B. Budget deficit

C. Fiscal deficit

D. None of these

Answer: B. Budget deficit

Q.9 In India, mutual funds are regulated by:





Answer: B. SEBI

Note: As far as mutual funds are concerned, SEBI is the policymaker and also regulates the industry. It lays guidelines for mutual funds to safeguard the investors’ interest.

Q.10 Who among the following is responsible for maintaining and establishing an efficient accounting and financial reporting system in India?


B. Comptroller and Auditor General of India

C. NITI Aayog

D. None of these

Answer: B. Comptroller and Auditor General of India

Note: The duties and functions of the CAG as laid down by the Constitution are: Auditing the accounts related to all expenditure drawn from the Consolidated Fund of India, consolidated fund of every state and consolidated fund of every union territory having a Legislative Assembly.

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