Indian Economy GK MCQ for Competitive Exams

Indian Economy GK MCQ Question answer for Competitive Exams. Important MCQs on Economics of India from previous year exam question papers for preparation of upcoming exams.

Medium : English

Indian Economy MCQ in English

Q.1: Which Five-Year Plan’s objectives were influenced by the Gadgil Formula in India?
(A) Second Five-Year Plan
(B) Fourth Five-Year Plan
(C) Third Five-Year Plan
(D) Seventh Five-Year Plan

Answer
Answer: (B) Fourth Five-Year Plan

Q.2: When was the RBI (Reserve Bank of India) established?
(A) 1934
(B) 1935
(C) 1936
(D) 1949

Answer
Answer: (B) 1935

Q.3: Name the Indian state with the highest tax revenue.
(A) Andhra Pradesh
(B) Uttar Pradesh
(C) Karnataka
(D) Maharashtra

Answer
Answer: (D) Maharashtra

Q.4: Which of the following public sector banks will receive a loan from the BRICS New Development Bank?
(A) Canara Bank
(B) Punjab National Bank
(C) ICICI
(D) State Bank of India

Answer
Answer: (A) Canara Bank

Q.5: Which of the following countries recently overtook Thailand as the world’s largest rice exporter in 2015?
(A) India
(B) Myanmar
(C) China
(D) Vietnam

Answer
Answer: (A) India

Q.6: The Government of India has recently decided to integrate the Pradhan Mantri Krishi Sinchayee Yojana with:
(A) Mahatma Gandhi National Rural Employment Guarantee Act
(B) National Rural Livelihood Mission
(C) Hariyali
(D) Accelerated Irrigation Benefits Program

Answer
Answer: (A) Mahatma Gandhi National Rural Employment Guarantee Act

Q.7: The PURA scheme, which envisages the provision of urban amenities in rural areas, was first advocated by:
(A) Dr. M.S. Swaminathan
(B) Shri A.P.J. Abdul Kalam
(C) Dr. Arvind Subramanian
(D) Prof. Dinshaw Mistry

Answer
Answer: (B) Shri A.P.J. Abdul Kalam

Q.8: National income can be calculated by all of the following methods except:
(A) Sum of all expenditures
(B) Sum of all outputs
(C) Sum of all savings
(D) Sum of all incomes

Answer
Answer: (C) Sum of all savings

Q.9: In a national context, which of the following indicates a macroeconomic perspective?
(A) Inflation in India
(B) Sales of Bata Shoe Company
(C) Mango exports to the UK
(D) Income from Railways

Answer
Answer: (C) Mango exports to the UK

Q.10: State Bank of India was previously known by this name:
(A) Imperial Bank of India
(B) Canara Bank
(C) Syndicate Bank
(D) Indian Cooperative Bank

Answer
Answer: (A) Imperial Bank of India

Q.11: Whose signature appears on a one-rupee note?
(A) Governor, Reserve Bank of India
(B) Finance Minister
(C) Secretary, Ministry of Finance
(D) None of the above

Answer
Answer: (C) Secretary, Ministry of Finance

Q.12: The full form of NABARD is:
(A) National Business for Accounting and Review
(B) National Bank for Agriculture and Rural
(C) National Bank for Aeronautics and Radar Development
(D) National Bureau for Air and Road Transport

Answer
Answer: (B) National Bank for Agriculture and Rural

Q.13: When was the Reserve Bank of India nationalized?
(A) 1949
(B) 1951
(C) 1947
(D) 1935

Answer
Answer: (A) 1949

Q.14: Which of the following indicates a microeconomic perspective in national terms?
(A) Per capita income in India
(B) Study of TISCO’s sales
(C) Inflation in India
(D) Educated unemployment in India

Answer
Answer: (B) Study of TISCO’s sales

Q.15: How does agriculture promote industrial development in India?
(A) By opening markets for industrial products
(B) By providing food and clothing to workers
(C) By supplying raw materials
(D) All of the above

Answer
Answer: (D) All of the above

Q.16: The Industrial Development Bank of India was established in:
(A) July 1968
(B) July 1966
(C) July 1964
(D) July 1962

Answer
Answer: (C) July 1964

Q.17: The slogan ‘Garibi Hatao’ was included in:
(A) Second Plan
(B) First Plan
(C) Fifth Plan
(D) Fourth Plan

Answer
Answer: (C) Fifth Plan

Q.18: Which bank is limited to the needs of agricultural and rural finance?
(A) RBI
(B) SBI
(C) IFC
(D) NABARD

Answer
Answer: (D) NABARD

Q.19: The Indian economy is a/an:
(A) Free economy
(B) Mixed economy
(C) Capitalist economy
(D) Communist economy

Answer
Answer: (B) Mixed economy

Q.20: The P. Rama Rao Committee is related to:
(A) Taxation
(B) Defense
(C) Industry
(D) Agriculture

Answer
Answer: (B) Defense

Q.21: The lender of last resort is:
(A) SBI
(B) IDBI
(C) NABARD
(D) RBI

Answer
Answer: (D) RBI

Q.22: The period of the Twelfth Five-Year Plan is:
(A) January 1, 2012 to December 31, 2017
(B) April 1, 2011 to March 31, 2016
(C) January 1, 2011 to December 31, 2016
(D) April 1, 2012 to March 31, 2017

Answer
Answer: (D) April 1, 2012 to March 31, 2017

Q.23: In which year was the Imperial Bank established?
(A) 1930
(B) 1935
(C) 1955
(D) 1921

Answer
Answer: (D) 1921

Q.24: Which Five-Year Plan had a duration of only four years?
(A) Third
(B) Fourth
(C) Fifth
(D) Seventh

Answer
Answer: (C) Fifth

Q.25: The Minimum Support Price (MSP) for food grains was introduced in which year? (A) 1944
(B) 1964
(C) 1974
(D) 1954

Answer
Answer: (C) 1974

Q.26: In India, the interest rate on savings accounts in all nationalized commercial banks is determined by:
(A) Finance Minister of India
(B) Central Finance Commission
(C) Indian Banks’ Association
(D) Reserve Bank of India

Answer
Answer: (D) Reserve Bank of India

Q.27: Which of the following provides long-term loans to private industries in India? (A) Food Corporation of India
(B) Life Insurance Corporation of India
(C) Primary Credit Society
(D) Land Development Bank

Answer
Answer: (D) Land Development Bank

Q.28: “Agriculture should serve as a means of income, livelihood, and opportunities for local communities” – This statement was made by:
(A) Dr. Madhavan Nair
(B) Dr. Manmohan Singh
(C) Dr. Abdul Kalam
(D) Dr. M.S. Swaminathan

Answer
Answer: (D) Dr. M.S. Swaminathan

Q.29: Development that meets the needs of the present without compromising the ability of future generations to meet their own needs was the focus of the Brundtland Commission. It is called:
(A) Sustainable Development
(B) Mitigation
(C) Disaster Management
(D) Capacity Building

Answer
Answer: (A) Sustainable Development

Q.30: SEBI was established in:
(A) 1992
(B) 1980
(C) 1984
(D) 1988

Answer
Answer: (D) 1988

Q.31: India exports electricity to:
(A) Bangladesh
(B) Myanmar
(C) Pakistan
(D) Bhutan

Answer
Answer: (A) Bangladesh

Q.32: The largest single item of current government expenditure in India is:
(A) Defense expenditure
(B) Interest payment on loans
(C) Subsidy payment
(D) Investment in social overheads

Answer
Answer: (B) Interest payment on loans

Q.33: The ‘More Mega Store’ retail chain is related to which Indian industry?
(A) Reliance Industries
(B) Bharti Enterprises
(C) Aditya Birla Group
(D) None of these

Answer
Answer: (C) Aditya Birla Group

Q.34: Which spice tops in value as an export commodity of India?
(A) Black Pepper
(B) Chili
(C) Turmeric
(D) Cardamom

Answer
Answer: (B) Chili

Q.35: In which year was the nationalization of fourteen major banks in India?
(A) 1967
(B) 1968
(C) 1969
(D) 1971

Answer
Answer: (C) 1969

Q.36: One rupee notes are issued by:
(A) Reserve Bank of India
(B) State Bank of India
(C) President of India
(D) Government of India

Answer
Answer: (D) Government of India

Q.37: India adopted the decimal currency system in:
(A) 1955
(B) 1956
(C) 1957
(D) 1958

Answer
Answer: (C) 1957

Q.38: The number of nationalized banks in India is:
(A) 14
(B) 21
(C) 20
(D) 22

Answer
Answer: (C) 20

Q.39: Maruti cars are mainly based on:
(A) Japanese technology
(B) Korean technology
(C) Russian technology
(D) German technology

Answer
Answer: (A) Japanese technology

Q.40: Which measure has not been undertaken by the government to curb inflation? (A) Increase in consumption
(B) Increase in production
(C) Reduction in deficit financing
(D) Taxation measures

Answer
Answer: (A) Increase in consumption

Q.41: In the Indian economy, the ‘slack season’ refers to:
(A) March-April
(B) September-December
(C) January-June
(D) February-April

Answer
Answer: (C) January-June

Q.42: Which of the following is not a qualitative credit control by a country’s central bank?
(A) Rationing of credit
(B) Regulation of consumer credit
(C) Variation in margin requirements
(D) Regulation of margin requirements

Answer
Answer: (C) Variation in margin requirements

Q.43: The market where funds can be borrowed is called:
(A) Reserved market
(B) Institutional market
(C) Money market
(D) Exchange market

Answer
Answer: (C) Money market

Q.44: If the marginal return increases at a decreasing rate, then the total return:
(A) Increases
(B) Decreases
(C) Remains constant
(D) Becomes income

Answer
Answer: (B) Decreases

Q.45: According to newspaper reports, the government plans to disinvest what percentage of its stake in Rashtriya Ispat Nigam Limited (RINL)?
(A) 5%
(B) 50%
(C) 10%
(D) 12%

Answer
Answer: (C) 10%

Q.46: Ownership of RRB (Regional Rural Bank) is held by:
(A) Central Government
(B) State Government
(C) Sponsor Bank
(D) Jointly by all of the above

Answer
Answer: (D) Jointly by all of the above

Q.47: Which of the following methods is not used to determine the national income of a country?
(A) Income method
(B) Output method
(C) Input method
(D) Investment method

Answer
Answer: (D) Investment method

Q.48: Which scheme of the Government of India makes Indian cities slum-free?
(A) Indira Awas Yojana
(B) Central Rural Sanitation Program MME
(C) Rajiv Awas Yojana
(D) Antyodaya

Answer
Answer: (C) Rajiv Awas Yojana

Q.49: The current fiscal deficit percentage in the GDP is:
(A) 7
(B) 4
(C) 8
(D) 1

Answer
Answer: (B) 4

Q.50: The term ‘Tragedy of the Commons’ related to the overuse of resources was propounded by:
(A) Garrett Hardin
(B) Seligman
(C) Adolf Wagner
(D) A.P. Lemierre

Answer
Answer: (A) Garrett Hardin
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