Practice Quiz set 2 - indian economy mcq Online Quiz (set-1) For All Competitive Exams

Q-1)   In which year did the Government of India Nationalised 14 major private banks?

(a)

(b)

(c)

(d)


Q-2)   Paper currency was first started in India in

(a)

(b)

(c)

(d)


Q-3)   The decimal system was made applicable to Indian currency system in which year?

(a)

(b)

(c)

(d)


Q-4)   Consider the following statement:
  1. Bombay Stock Exchange (BSE) is India’s oldest stock exchange
  2. It formally came into being in 1888
  3. It was a regional exchange till 2002 when it became a national exchange
Choose the incorrect statement regarding BSE.

(a)

(b)

(c)

(d)

Explanation:

Bombay Stock Exchange (BSE) India’s oldest stock exchange formally came into being in 1887 and was a regional exchange till 2002 when it became a national exchange.


Q-5)   Why is the offering of ‘teaser loans’ by commercial banks is a cause of economic concern?
  1. The ‘teaser loans’ are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.
  2. In India, the ‘teaser loans’ are mostly given to entrepreneurs to set-up manufacturing or export units.
Which of the statement(s) given above is/are correct?

(a)

(b)

(c)

(d)


Q-6)   In India, rural incomes are generally lower than the urban incomes. Which of the following reasons account for this?
  1. A large number of farmers are illiterate and know little about scientific agriculture.
  2. Prices of primary products are lower than those of manufactured products.
  3. Investments in agriculture has been low when compared to investment in industry.

(a)

(b)

(c)

(d)


Q-7)   Consider the following actions which the government can take
  1. Devaluing the domestic currency.
  2. Reduction in the export subsidy.
  3. Adopting suitable policies which attract greater FDI and more funds from FIIS.
Which of the above action/actions can help in reducing the current accounts deficit?

(a)

(b)

(c)

(d)


Q-8)   Consider the following steps:
  1. Banking Department gets currency from the Issue Department
  2. Government puts the currency in circulation
  3. Central Government incurs a deficit in its Budget
  4. Government Sells Treasury Bills to Banking Department of RBI
Which among the following is the correct order of the above steps?

(a)

(b)

(c)

(d)


Q-9)   Devaluation makes import

(a)

(b)

(c)

(d)

Explanation:

Devaluation makes import expensive and discourages it, while the export of a country that devalues becomes cheaper and thereby induces trade partners to import more goods from her.

Nations that produce industrial goods on a large scale stand to benefit from devaluation.


Q-10)   The sum of which of the following constitutes Broad Money in India?
  1. Currency with public
  2. Demand deposits with banks
  3. Time deposits with banks
  4. Other deposits with RBI
Choose the correct answer using the codes given below.

(a)

(b)

(c)

(d)