Indian Economy MCQ Set-7

Most Important Indian Economy 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 In which of the following year, the Union Government abolished the Banking Service Recruitment Boards (BSRBs)?

A. 1978

B. 2001

C. 2002

D. 2014

Answer: C. 2002

Note: The Banking Service Recruitment Boards (BSRBs) was established in 1978 in order to have a uniform standards & eligibility criteria for recruitment of personnel in public sector banks. However, it was abolished in May, 2002 after enactment of the Banking Services Commission (Repeal) Bill, 2002.

Q.2 Which of the following organization provides the Buffer Stock Financial Facility?

A. World Bank

B. International Monetary Fund

C. Asian Development Bank

D. None of these

Answer: B. International Monetary Fund

Note: Under the Buffer Stock Financial Facility, the IMF helps finance members’ contributions to approved international buffer stocks if the member demonstrates a balance of payments need.

Q.3 Which among the following is CORRECT about the Way and Means Advances of the RBI?

I. It is a credit policy to states, banking with the RBI.

II. It is a credit policy to the union government by the RBI

III. It is a credit policy to the commercial banks by the RBI.

A. Only I is correct

B. Only II is correct

C. Both I & II are correct

D. Only III is correct

Answer: A. Only I is correct

Note: Ways and means advances is a mechanism used by Reserve Bank of India under its credit policy to provide to States, banking with it, to help them tide over temporary mismatches in the cash flow of their receipts and payments.

Q.4 What is the full-form of WPI?

A. World-wide Price Index

B. World Petroleum Index

C. Wholesale Price Index

D. None of these

Answer: C. Wholesale Price Index

Note: Wholesale Price Index is used to measure the average change in price in the sale of goods in bulk quantity by the whole seller.

Q.5 What is the full-form of CPI?

A. Competitive Price Index

B. Consumer Price Index

C. Compared Price Index

D. None of these

Answer: B. Consumer Price Index

Note: Consumer Price Index measures the change in the price in the sale of goods or services in retail or directly to a consumer. India uses CPI as the central measure of inflation. 

Q.6  India’s first broad based benchmark of the Indian capital market is?

A. Sensex

B. Nifty

C. S&P; CNX 500

D. None of these

Answer: C. S&P; CNX 500

Q.7 Activities like exploration of natural resources falls under which sector of an economy?

A. Primary

B. Secondary

C. Tertiary

D. None of these

Answer: A. Primary

Note: As exploration of natural resources directly depends upon nature, therefore it comes under the primary sector of an economy/

Q.8 The first consumer protection bill was passed in which of the following year in India?

A. 1986

B. 1999

C. 1993

D. 2019

Answer: A. 1986

Q.9 Which of the following organization launched the RUCO initiative?

A. Reserve Bank of India

B. NITI Aayog



Answer: C. FSSAI

Note: FSSAI has launched ‘Repurpose Used Cooking Oil’ (RUCO) – an ecosystem to enable the collection and conversion of used cooking oil to biodiesel.

Q.10 Which of the following is responsible for implementing the essential commodity act?



C. State Governments

D. Union Government

Answer: C. State Governments

Note: The union government notifies the essential commodity act. However, it the responsibility of the state governments to implement it.

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