Q.1 Which of the following is considered the backbone of the Indian economy?
Agriculture
Manufacturing
Information Technology
Banking
Explanation - Agriculture employs the largest part of the Indian population and plays a crucial role in supporting the economy.
Correct answer is: Agriculture
Q.2 What does GDP stand for in economics?
Gross Domestic Product
General Domestic Price
Global Domestic Product
Gross Departmental Profit
Explanation - GDP measures the total monetary value of all goods and services produced within a country's borders in a specific time period.
Correct answer is: Gross Domestic Product
Q.3 Which institution is the central bank of India?
State Bank of India
Reserve Bank of India
ICICI Bank
Exim Bank
Explanation - The Reserve Bank of India regulates the issuance of currency and manages monetary policy in India.
Correct answer is: Reserve Bank of India
Q.4 Which of the following is a direct tax in India?
Income Tax
Goods and Services Tax (GST)
Customs Duty
Excise Duty
Explanation - Direct taxes are paid directly to the government by the taxpayer, and Income Tax is an example.
Correct answer is: Income Tax
Q.5 The term 'Repo Rate' is associated with which of the following?
Inflation control
Bank lending rates
Stock market trading
International trade
Explanation - Repo Rate is the rate at which the central bank lends money to commercial banks, influencing lending rates in the economy.
Correct answer is: Bank lending rates
Q.6 Which organization publishes the World Economic Outlook report?
World Bank
IMF
UNDP
OECD
Explanation - The International Monetary Fund (IMF) publishes the World Economic Outlook, analyzing global economic developments.
Correct answer is: IMF
Q.7 Which sector contributes the most to India's GDP as of 2023?
Agriculture
Industry
Services
Mining
Explanation - The services sector, including IT, banking, and tourism, is the largest contributor to India's GDP.
Correct answer is: Services
Q.8 Inflation is generally measured by which of the following indices?
CPI
PPI
GDP Deflator
All of the above
Explanation - Inflation can be measured using Consumer Price Index (CPI), Producer Price Index (PPI), and GDP Deflator.
Correct answer is: All of the above
Q.9 Which of the following is an example of a fiscal policy measure?
Reducing repo rate
Increasing government expenditure
Open market operations
Setting bank cash reserve ratio
Explanation - Fiscal policy involves government spending and taxation decisions, whereas monetary policy deals with interest rates and liquidity.
Correct answer is: Increasing government expenditure
Q.10 What is the purpose of the 'Monetary Policy Committee' in India?
Regulate stock exchanges
Control inflation and maintain price stability
Issue government bonds
Monitor international trade
Explanation - The Monetary Policy Committee sets key policy rates like repo rate to control inflation and support economic growth.
Correct answer is: Control inflation and maintain price stability
Q.11 Which Indian economist proposed the concept of 'Basic Minimum Needs'?
Amartya Sen
Jagdish Bhagwati
M. L. Dantwala
Raghuram Rajan
Explanation - M. L. Dantwala emphasized the provision of basic minimum needs as a measure of economic development in India.
Correct answer is: M. L. Dantwala
Q.12 Which of the following is considered a liquidity measure in banking?
Cash Reserve Ratio (CRR)
Income Tax
GST
Customs Duty
Explanation - CRR is the percentage of a commercial bank's total deposits that it must maintain with the central bank, impacting liquidity.
Correct answer is: Cash Reserve Ratio (CRR)
Q.13 Which country introduced the concept of 'Quantitative Easing' first?
USA
Japan
UK
Germany
Explanation - Japan pioneered quantitative easing in the early 2000s to tackle deflation and stimulate the economy.
Correct answer is: Japan
Q.14 Which scheme was launched by the Indian government to promote financial inclusion?
Pradhan Mantri Jan Dhan Yojana
Make in India
Digital India
Skill India
Explanation - PMJDY aims to provide access to banking services to all households, especially in rural areas.
Correct answer is: Pradhan Mantri Jan Dhan Yojana
Q.15 Which is the main objective of the Goods and Services Tax (GST)?
Promote exports
Eliminate cascading tax effect
Control inflation
Boost foreign investment
Explanation - GST subsumes multiple indirect taxes, ensuring that tax is levied only on value addition and avoiding tax-on-tax.
Correct answer is: Eliminate cascading tax effect
Q.16 Which of the following is a non-banking financial company (NBFC)?
HDFC Ltd
ICICI Bank
State Bank of India
Punjab National Bank
Explanation - NBFCs provide banking services like loans and investments but do not hold a banking license to accept demand deposits.
Correct answer is: HDFC Ltd
Q.17 Which of the following is considered a leading indicator of economic growth?
Stock market performance
Current inflation rate
Unemployment rate
Fiscal deficit
Explanation - Stock markets often reflect investor sentiment about future economic performance, making them a leading indicator.
Correct answer is: Stock market performance
Q.18 The term 'Balance of Payments' refers to:
Difference between exports and imports
All financial transactions between a country and the rest of the world
Foreign exchange reserves
National income
Explanation - Balance of Payments includes trade balance, foreign investments, and other international financial transactions.
Correct answer is: All financial transactions between a country and the rest of the world
Q.19 What is the main purpose of SEBI (Securities and Exchange Board of India)?
Regulate stock markets
Control inflation
Issue currency notes
Promote exports
Explanation - SEBI regulates securities markets to protect investors and ensure fair trading practices.
Correct answer is: Regulate stock markets
Q.20 Which of the following is a direct consequence of demonetization in India (2016)?
Increase in cash circulation
Reduction in black money
Rise in gold imports
Decrease in bank deposits
Explanation - Demonetization aimed to curb unaccounted wealth and promote digital transactions.
Correct answer is: Reduction in black money
Q.21 Which index is commonly used to measure stock market performance in India?
Sensex
CPI
GDP Deflator
Repo Rate
Explanation - Sensex is the benchmark index of Bombay Stock Exchange, reflecting the performance of 30 major companies.
Correct answer is: Sensex
Q.22 Which organization defines the Poverty Line in India?
NITI Aayog
Planning Commission
RBI
IMF
Explanation - NITI Aayog periodically assesses poverty levels and estimates the number of people below the poverty line.
Correct answer is: NITI Aayog
Q.23 What does FDI stand for in economic terms?
Foreign Direct Investment
Fiscal Development Index
Financial Debt Instrument
Federal Domestic Investment
Explanation - FDI refers to investments made by foreign entities into businesses and assets in another country.
Correct answer is: Foreign Direct Investment
Q.24 Which of the following is NOT part of the Indian Money Market?
Call Money Market
Treasury Bills Market
Corporate Bond Market
Commodity Market
Explanation - The money market deals with short-term funds, whereas the commodity market deals with physical goods and derivatives.
Correct answer is: Commodity Market
Q.25 Which Indian state was the first to achieve 100% digitized payment system in government transactions?
Kerala
Andhra Pradesh
Goa
Maharashtra
Explanation - Andhra Pradesh became the first state to digitize all government payments, enhancing transparency and efficiency.
Correct answer is: Andhra Pradesh