Q.1 Which of the following is considered the backbone of the Indian economy?
Agriculture
Information Technology
Textile Industry
Automobile Industry
Explanation - Agriculture is considered the backbone of the Indian economy as it provides employment to the majority of the population and contributes significantly to GDP.
Correct answer is: Agriculture
Q.2 What is the primary function of the Reserve Bank of India?
Issuing currency and controlling inflation
Running public sector enterprises
Setting fiscal policy
Regulating foreign trade
Explanation - The Reserve Bank of India is the central bank of the country responsible for issuing currency, controlling inflation, and regulating the banking system.
Correct answer is: Issuing currency and controlling inflation
Q.3 What is GST in India?
Goods and Services Tax
General Sales Tax
Gross State Tax
Government Service Tariff
Explanation - GST stands for Goods and Services Tax, a comprehensive indirect tax levied on the manufacture, sale, and consumption of goods and services across India.
Correct answer is: Goods and Services Tax
Q.4 Which sector contributes the highest share to India's GDP?
Agriculture
Industry
Services
Mining
Explanation - The services sector contributes the largest share to India's GDP, followed by industry and agriculture.
Correct answer is: Services
Q.5 The term 'Monetary Policy' refers to:
Government spending and taxation policy
Control of money supply and interest rates
Regulation of international trade
Setting minimum wages
Explanation - Monetary policy is implemented by the central bank to control money supply and interest rates to achieve economic stability.
Correct answer is: Control of money supply and interest rates
Q.6 Which of the following is a major initiative to boost financial inclusion in India?
Jan Dhan Yojana
Digital India
Make in India
Skill India
Explanation - The Pradhan Mantri Jan Dhan Yojana (PMJDY) aims to provide universal access to banking facilities and promote financial inclusion.
Correct answer is: Jan Dhan Yojana
Q.7 Which Indian budget term represents the government's income and expenditure for a financial year?
Union Budget
Fiscal Deficit
Monetary Policy
Balance Sheet
Explanation - The Union Budget is an annual statement presented by the government detailing its expected income and expenditure for the upcoming financial year.
Correct answer is: Union Budget
Q.8 What does the term 'Inflation' mean?
Decrease in general price levels
Increase in general price levels
Government deficit
Unemployment rate
Explanation - Inflation is the sustained rise in the general price level of goods and services in an economy over a period of time.
Correct answer is: Increase in general price levels
Q.9 The 'Make in India' initiative primarily focuses on:
Promoting manufacturing and investment
Boosting agriculture
Enhancing IT services
Improving healthcare
Explanation - 'Make in India' is a government initiative aimed at encouraging companies to manufacture their products in India and increase investment in manufacturing.
Correct answer is: Promoting manufacturing and investment
Q.10 Which of the following is NOT a component of India's GDP?
Consumption
Investment
Net Exports
Population Growth
Explanation - GDP includes consumption, investment, government spending, and net exports; population growth is not a direct component of GDP.
Correct answer is: Population Growth
Q.11 Which institution provides credit ratings for Indian companies?
SEBI
RBI
Credit Rating Agencies
IRDAI
Explanation - Credit rating agencies assess the creditworthiness of companies and financial instruments, helping investors make informed decisions.
Correct answer is: Credit Rating Agencies
Q.12 Which is the largest source of revenue for the Government of India?
Income Tax
Corporate Tax
Customs Duty
GST
Explanation - Income Tax is one of the largest contributors to the Government of India's revenue, followed by GST and corporate tax.
Correct answer is: Income Tax
Q.13 What is the current currency of India?
Rupee
Dollar
Yen
Pound
Explanation - The Indian Rupee (INR) is the official currency of India, issued by the Reserve Bank of India.
Correct answer is: Rupee
Q.14 Which of the following is considered a capital market instrument?
Treasury Bills
Equity Shares
Savings Accounts
Fixed Deposits
Explanation - Capital market instruments include equity shares, debentures, bonds, and other long-term securities, unlike money market instruments like treasury bills.
Correct answer is: Equity Shares
Q.15 Which sector employs the largest number of people in India?
Agriculture
Services
Manufacturing
Information Technology
Explanation - Agriculture continues to employ the largest number of people in India, especially in rural areas.
Correct answer is: Agriculture
Q.16 The term 'Fiscal Deficit' refers to:
Excess revenue over expenditure
Shortfall of revenue compared to expenditure
Money printed by RBI
Foreign investment in India
Explanation - Fiscal deficit occurs when the government's total expenditure exceeds its total revenue (excluding borrowings).
Correct answer is: Shortfall of revenue compared to expenditure
Q.17 Which Indian bank was nationalized in 1969 along with 13 others?
State Bank of India
Punjab National Bank
Bank of India
HDFC Bank
Explanation - In 1969, 14 major banks, including SBI, were nationalized to serve national development objectives.
Correct answer is: State Bank of India
Q.18 What is 'Disinvestment' in the context of Indian economy?
Government investing in private companies
Selling government stake in public sector enterprises
Buying foreign companies
Reducing taxes on industry
Explanation - Disinvestment refers to the process of the government selling or liquidating its stake in public sector enterprises to raise funds.
Correct answer is: Selling government stake in public sector enterprises
Q.19 Which of the following is a key initiative to promote digital payments in India?
BHIM UPI
Make in India
Jan Dhan Yojana
Skill India
Explanation - BHIM (Bharat Interface for Money) using UPI (Unified Payments Interface) facilitates digital payments and aims to reduce cash transactions.
Correct answer is: BHIM UPI
Q.20 Which is the apex body for regulating the securities market in India?
RBI
SEBI
IRDAI
NABARD
Explanation - The Securities and Exchange Board of India (SEBI) regulates and oversees the securities market to protect investors' interests.
Correct answer is: SEBI
Q.21 Which of the following is an objective of 'Make in India' initiative?
Boost domestic manufacturing
Encourage foreign investment
Create employment opportunities
All of the above
Explanation - 'Make in India' aims to boost domestic manufacturing, attract foreign investment, and create employment opportunities.
Correct answer is: All of the above
Q.22 What is the current official fiscal year in India?
January to December
April to March
July to June
October to September
Explanation - India follows a fiscal year from April 1st to March 31st for budgeting and taxation purposes.
Correct answer is: April to March
Q.23 Which of the following is a short-term instrument of the money market?
Treasury Bills
Equity Shares
Corporate Bonds
Debentures
Explanation - Treasury Bills are short-term government securities issued for a period of up to one year, forming part of the money market instruments.
Correct answer is: Treasury Bills
Q.24 Which Indian economic policy focuses on liberalization, privatization, and globalization?
New Economic Policy 1991
Five-Year Plan
Make in India
Digital India
Explanation - The 1991 economic reforms introduced liberalization, privatization, and globalization to improve economic growth.
Correct answer is: New Economic Policy 1991
Q.25 Which of the following measures is taken by RBI to control inflation?
Open Market Operations
Changing repo rate
Cash Reserve Ratio adjustment
All of the above
Explanation - RBI uses tools like open market operations, repo rate changes, and cash reserve ratio adjustments to control money supply and inflation.
Correct answer is: All of the above