Indian Economy Online Quiz



Following quiz provides Multiple Choice Questions (MCQs) related to Indian Economy. You will have to read all the given answers and click over the correct answer. If you are not sure about the answer then you can check the answer using Show Answer button. You can use Next Quiz button to check new set of questions in the quiz.

Questions and Answers

Q 1 - Consider the following statements:

1. Land Development Bank was established in 1919.

2. Land Development Bank provides credit for long term period.

Choose the correct answer from the codes given below:

A - Only 1

B - Only 2

C - Both

D - Neither 1 nor 2

Answer : C

Explanation

Land Development Bank is also known as Mortgage Bank.

Q 2 - Which one of the following programs has been implemented to establish girls schools in the districts having low female literacy rate?

A - Kasturba Gandhi Education Scheme (KGES)

B - Indira Gandhi Education Scheme (IGES)

C - Mother Teresa Education Scheme (MTES)

D - Sarojini Naidu Education Scheme (SNES)

Answer : A

Explanation

The scheme has been implemented in 1997.

Q 3 - Consider the following statements:

1. Marshal has given the concept of the interaction of demand & supply.

2. According to Marshal, economics was not a body of truth but "an engine to discover the truth."

Choose the correct answer from the codes given below:

A - Only 1

B - Only 2

C - Both

D - Neither 1 nor 2

Answer : C

Explanation

Marshal also has refined the concept of elasticity.

Q 4 - Which among the following taxes is exclusively imposed by State Government?

A - Income tax

B - Property tax

C - Custom duty

D - Land revenue tax

Answer : D

Explanation

N/A

Answer : D

Explanation

N/A

Q 6 - Which among the following has set up the Planning Commission of India?

A - Government of India

B - President

C - Prime Minister

D - Collective demand of states legislature

Answer : A

Explanation

Planning Commission was set up in 1950.

Q 7 - Consider the following statements:

1. Half of the extreme poor live in Sub-Saharan Africa.

2. A vast majority of the global poor live in rural areas and are poorly educated.

Choose the correct answer from the codes given below:

A - Only 1

B - Only 2

C - Both

D - Neither 1 nor 2

Answer : C

Explanation

N/A

Q 8 - Consider the following statements:

1. Economics, as a social science subject, is the study of human behavior in relation to the functioning of the economy.

2. Economic theories are based on a scientific approach that explain economic issues and behavior.

Choose the correct answer from the codes given below:

A - Only 1

B - Only 2

C - Both

D - Neither 1 nor 2

Answer : C

Explanation

N/A

Q 9 - What is the limit of Foreign Direct Investment (FDI) in the sector of Single Brand retail trading?

A - 100%

B - 74%

C - 49%

D - 26%

Answer : A

Explanation

N/A

Q 10 - Which among the following provides loan for the reconstruction and development?

A - World Bank

B - IDA

C - IMF

D - IBRD

Answer : D

Explanation

IBRD stands for International Bank for Reconstruction and Development; it is an international financial institution.

Q 11 - Consider the following statements:

1. Interest rate corridor denotes the window between the repo rate and the reverse repo rate.

2. The highest point of the rate is determined by the rate at which Reserve Bank of India lends money to the banks i.e. the repo rate.

Choose the correct answer from the codes given below:

A - Only 1

B - Only 2

C - Both

D - Neither 1 nor 2

Answer : C

Explanation

N/A

Q 12 - Consider the following statements:

1. Statutory Liquidity Ratio is the amount that the commercial banks need to maintain in the form of cash, or gold, or government approved securities (i.e. bonds) before provide credit to their customers.

2. Statutory Liquidity Ratio is regulated by Ministry of Finance.

Choose the correct answer from the codes given below:

A - Only 1

B - Only 2

C - Both

D - Neither 1 nor 2

Answer : A

Explanation

Statutory Liquidity Ratio is regulated by RBI.

Q 13 - Which among the following has least influence on exchange rate?

A - Goods and Services tax

B - Direct tax

C - Interest rates

D - Peoples planning to invest in a big industry

Answer : D

Explanation

N/A

Q 14 - Consider the following statements:

1. Adam Smith explained the importance of the division of labors, and their relation with economic development.

2. Adam Smith emphasized on self-interest and laissez-faire.

Choose the correct answer from the codes given below:

A - Only 1

B - Only 2

C - Both

D - Neither 1 nor 2

Answer : C

Explanation

The idea of Adam Smith was - economic freedom was stressed and the power of the government should be minimized.

Q 15 - What is the limit of Foreign Direct Investment (FDI) in the sector of Petroleum & Natural Gas (especially exploration activities)?

A - 100%

B - 100%

C - 49%

D - 33%

Answer : A

Explanation

N/A

Q 16 - Pradhan Mantri Jan Dhan Yojana, launched by Narendra Modi Government, was implemented in

A - 2015

B - 2016

C - 2014

D - Will be launched in 2017

Answer : C

Explanation

The scheme was launched to provide financial services to weaker sections of the society.

Q 17 - Consider the following statements:

1. Life Insurance Corporation (or LIC) was set up in 1956.

2. General Insurance Corporation (of GIC) was set in 1972.

Choose the correct answer from the codes given below:

A - Only 1

B - Only 2

C - Both

D - Neither 1 nor 2

Answer : C

Explanation

N/A

Q 18 - Which among the following correctively defines the term normative economics?

A - Economic fairness

B - Making law in economics

C - Planning future of economics

D - Imaginative economic theory

Answer : A

Explanation

Normative economics describes what the outcome of the economy or objectives of public policy ought to be.

Q 19 - JPMorgan Chase Bank belongs to

A - Germany

B - France

C - UK

D - USA

Answer : D

Explanation

The headquarters of JPMorgan Chase Bank is located in New York City, USA.

Answer : A

Explanation

The scheme has been implemented in 1995-96.

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