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Indian Economy GK Questions with Answers – Page 6

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Indian Economy multiple choice questions with answers and explanations, 20 per page, for SSC, Banking, UPSC, Railway and state exams.

1127 questions

Indian Economy NotesOnly previous-year questions (580)GK Quiz
Q101.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2019, GS Paper IMedium

Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years?

  1. A.Spices
  2. B.Fresh fruits
  3. C.Pulses
  4. D.Vegetable oils
Show answer
Correct answer: D. Vegetable oils

Edible vegetable oils are India's largest agricultural import by value, and they have stayed at the top since well before this question was set.

Q102.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2017, GS Paper IMedium

'Broad-based Trade and Investment Agreement (BTIA)' is sometimes seen in the news in the context of negotiations held between India and

  1. A.European Union
  2. B.Gulf Cooperation Council
  3. C.Organization for Economic Cooperation and Development
  4. D.Shanghai Cooperation Organization
Show answer
Correct answer: A. European Union

The Broad-based Trade and Investment Agreement was the name given to the free trade agreement that India and the European Union began negotiating in 2007.

Q103.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2019, GS Paper IMedium

Consider the following statements : 1. Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods and services in different countries. 2. In terms of PPP dollars, India is the sixth largest economy in the world. Which of the statements given above is/are correct?

  1. A.1 only
  2. B.2 only
  3. C.Both 1 and 2
  4. D.Neither 1 nor 2
Show answer
Correct answer: A. 1 only

Statement 1 is the definition of purchasing power parity, while statement 2 understates India's position. A PPP exchange rate is the rate at which the currency of one country would have to be converted into that of another to buy the same basket of goods and services in both.

Q104.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2017, GS Paper IMedium

What is/are the most likely advantages of implementing 'Goods and Services Tax (GST)'? 1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India. 2. It will drastically reduce the 'Current Account Deficit' of India and will enable it to increase its foreign exchange reserves. 3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future. Select the correct answer using the code given below :

  1. A.1 only
  2. B.2 and 3 only
  3. C.1 and 3 only
  4. D.1, 2 and 3
Show answer
Correct answer: A. 1 only

The main and certain advantage of GST is that it subsumes many indirect taxes into one and creates a common national market.

Q106.Indian EconomyAsked in: CDS · CDS-I 2020, GKMedium

In economics, if a diagram has a line passing through the origin and has 45° angle with either axis and it is asserted that along the line X = Y, what is tacitly assumed?

  1. A.Both variables are pure numbers.
  2. B.Both variables are in the same unit.
  3. C.Both variables are in different units.
  4. D.At least one variable is a pure number.
Show answer
Correct answer: B. Both variables are in the same unit.

A line through the origin at 45° to each axis joins all the points where the distance along the horizontal axis equals the distance along the vertical axis.

Q107.Indian EconomyAsked in: CDS · CDS-I 2020, GKMedium

The Cash Reserve Ratio refers to

  1. A.the share of Net Demand and Time Liabilities that banks have to hold as liquid assets
  2. B.the share of Net Demand and Time Liabilities that banks have to hold as balances with the RBI
  3. C.the share of Net Demand and Time Liabilities that banks have to hold as part of their cash reserves
  4. D.the ratio of cash holding to reserves of banks
Show answer
Correct answer: B. the share of Net Demand and Time Liabilities that banks have to hold as balances with the RBI

The Cash Reserve Ratio (CRR) is the part of a bank's net demand and time liabilities (mainly its deposits) that it must keep as cash balances with the Reserve Bank of India.

Q108.Indian EconomyAsked in: CDS · CDS-I 2022, GKEasy

Which of the following factors signify monopolistic competition ? 1. Differentiated products 2. Large number of buyers and sellers 3. Barriers to entry 4. Homogeneous products Select the correct answer using the code given below:

  1. A.1 and 2 only
  2. B.1,2 and 3 only
  3. C.3 and 4 only
  4. D.2 and 4 only
Show answer
Correct answer: A. 1 and 2 only

Monopolistic competition is a market with many buyers and sellers, each seller offering a product that is slightly different from the others.

Q109.Indian EconomyAsked in: CDS · CDS-II 2023, GKMedium

Which of the following concepts are considered as pillars of Human Development ? 1. Equity 2. Sustainability 3. Productivity 4. Security Select the correct answer using the code given below:

  1. A.1 and 2 only
  2. B.3 and 4 only
  3. C.1,2 and 3 only
  4. D.1,2, 3 and 4
Show answer
Correct answer: C. 1,2 and 3 only

The idea of human development, put forward by Mahbub ul Haq and Amartya Sen, rests on four pillars: equity, sustainability, productivity and empowerment.

Q110.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2018, GS Paper IMedium

With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements : 1. It is the flagship scheme of the Ministry of Labour and Employment. 2. It, among other things, will also impart training in soft skills, entrepreneurship, financial and digital literacy. 3. It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework. Which of the statements given above is/are correct ?

  1. A.1 and 3 only
  2. B.2 only
  3. C.2 and 3 only
  4. D.1, 2 and 3
Show answer
Correct answer: C. 2 and 3 only

Pradhan Mantri Kaushal Vikas Yojana, launched in 2015, is the flagship skill training scheme of the Ministry of Skill Development and Entrepreneurship, not of the Ministry of Labour and Employment.

Q111.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2019, GS Paper IMedium

The economic cost of food grains to the Food Corporation of India is Minimum Support Price and bonus (if any) paid to the farmers plus

  1. A.transportation cost only
  2. B.interest cost only
  3. C.procurement incidentals and distribution cost
  4. D.procurement incidentals and charges for godowns
Show answer
Correct answer: C. procurement incidentals and distribution cost

The economic cost is the full cost the Food Corporation of India bears on each quintal of wheat or rice it handles.

Q112.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2023, GS Paper IMedium

Consider the following statements : The 'Stability and Growth Pact' of the European Union is a treaty that 1. limits the levels of the budgetary deficit of the countries of the European Union 2. makes the countries of the European Union to share their infrastructure facilities 3. enables the countries of the European Union to share their technologies How many of the above statements are correct?

  1. A.Only one
  2. B.Only two
  3. C.All three
  4. D.None
Show answer
Correct answer: A. Only one

Only statement 1 is correct. The Stability and Growth Pact, agreed in 1997, is the European Union's set of fiscal rules meant to keep public finances sound so that a shared currency is not weakened by one member's overspending.

Q113.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2017, GS Paper IMedium

Which of the following has/have occurred in India after its liberalization of economic policies in 1991? 1. Share of agriculture in GDP increased enormously. 2. Share of India's exports in world trade increased. 3. FDI inflows increased. 4. India's foreign exchange reserves increased enormously. Select the correct answer using the codes given below :

  1. A.1 and 4 only
  2. B.2, 3 and 4 only
  3. C.2 and 3 only
  4. D.1, 2, 3 and 4
Show answer
Correct answer: B. 2, 3 and 4 only

The reforms of 1991, launched during a balance of payments crisis, opened India to trade and foreign investment, and three of the listed changes followed.

Q114.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2016, GS Paper IMedium

'European Stability Mechanism', sometimes seen in the news, is an

  1. A.agency created by EU to deal with the impact of millions of refugees arriving from Middle East
  2. B.agency of EU that provides financial assistance to eurozone countries
  3. C.agency of EU to deal with all the bilateral and multilateral agreements on trade
  4. D.agency of EU to deal with the conflicts arising among the member countries
Show answer
Correct answer: B. agency of EU that provides financial assistance to eurozone countries

The European Stability Mechanism is a permanent rescue fund for the countries that use the euro. It was set up by a treaty among the eurozone members and began work in 2012, taking over from the temporary European Financial Stability Facility created during the sovereign debt crisis.

Q115.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2023, GS Paper IHard

Consider the following statements : Statement-I : Switzerland is one of the leading exporters of gold in terms of value. Statement-II : Switzerland has the second largest gold reserves in the world. Which one of the following is correct in respect of the above statements?

  1. A.Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
  2. B.Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
  3. C.Statement-I is correct but Statement-II is incorrect
  4. D.Statement-I is incorrect but Statement-II is correct
Show answer
Correct answer: C. Statement-I is correct but Statement-II is incorrect

Switzerland is one of the world's biggest gold exporters by value, but it does not hold the second largest official gold reserves.

Q116.Indian EconomyAsked in: CDS · CDS-I 2020, GKMedium

Which one of the following is not correct about Repo rate?

  1. A.It is the interest rate charged by the Central Bank on overnight loan.
  2. B.It is the interest rate paid by the commercial banks on overnight borrowing.
  3. C.It is the interest rate agreed upon in the loan contract between a commercial bank and the Central Bank.
  4. D.It is the cost of collateral security.
Show answer
Correct answer: D. It is the cost of collateral security.

The repo rate is an interest rate, not the cost of the collateral. Under a repo, short for repurchase agreement, a commercial bank sells government securities to the central bank and agrees to buy them back, usually the next day, at a slightly higher price.

Q117.Indian EconomyAsked in: CDS · CDS-II 2023, GKMedium

Consider the following statements about the Public Distribution System : 1. The Public Distribution System is operated under the joint responsibility of Centre and State/Union Territories. 2. Food Corporation of India has assumed the responsibility for procurement, storage and transportation of food grains to the State Governments. 3. Both Centre and State have the joint responsibility to identify eligible beneficiaries. 4. Some States also distribute additional items of mass consumption through the PDS outlets such as pulses, edible oil, etc. Which of the statements given above are correct?

  1. A.2 and 3 only
  2. B.1, 2 and 4
  3. C.1 and 2 only
  4. D.3 and 4 only
Show answer
Correct answer: B. 1, 2 and 4

The Public Distribution System is run jointly by the Centre and the States and Union Territories, so statement 1 is correct.