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Indian Economy Mixed Quiz: Set 86

  • 20 questions
  • 20 minutes
  • Difficulty: Medium
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About this quiz

Set 86 of the Indian Economy mixed quiz has 20 multiple-choice questions from 16 different topics of the subject: Reserve Bank of India and Monetary Policy, Commodity Market and Derivatives, Balance of Payments and Foreign Trade and more. 13 of them were asked in real previous-year papers. A topic quiz checks one chapter; this set revises the whole subject at once, the way an exam paper does, where the next question can come from any chapter. Every question carries an explanation of why the correct option is right and why the others are wrong. Keep to the timer, read the explanations at the end, and go back to the notes of any topic where you slipped.

Questions in this quiz

20 questions with answers and explanations

Q1.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.

Q2.Indian EconomyMedium

Commodity derivatives in India are regulated by which authority?

  1. A.Reserve Bank of India
  2. B.Forward Markets Commission
  3. C.Securities and Exchange Board of India
  4. D.Ministry of Consumer Affairs
Show answer
Correct answer: C. Securities and Exchange Board of India

The Forward Markets Commission was merged with SEBI on 28 September 2015, the Forward Contracts (Regulation) Act of 1952 was repealed by the Finance Act of 2015, and commodity derivatives were brought within the definition of securities under the Securities Contracts (Regulation) Act, 1956, so SEBI now regulates them.

Q3.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.

Q5.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.

Q6.Indian EconomyAsked in: Delhi · 15 Nov, 2023, Shift 3Medium

Which of the following is NOT an element of the Competition Act 2002?

  1. A.Prohibition of anti-competitive agreements
  2. B.Regulation of combination
  3. C.Abuse of dominant position
  4. D.Prohibition of trade
Show answer
Correct answer: D. Prohibition of trade

The Competition Act, 2002 rests on three pillars, and freedom of trade is the very thing it protects, so no provision of it prohibits trade; on the contrary, the Act opens by stating that it seeks to ensure freedom of trade carried on by other participants in markets in India.

Q8.Indian EconomyEasy

Which is the oldest stock exchange in Asia?

  1. A.National Stock Exchange
  2. B.Bombay Stock Exchange
  3. C.Tokyo Stock Exchange
  4. D.Hong Kong Stock Exchange
Show answer
Correct answer: B. Bombay Stock Exchange

It was established in 1875 as the Native Share and Stock Brokers Association and functions from Dalal Street in Mumbai, which makes it the oldest stock exchange in Asia; it was also the first exchange in India to receive permanent recognition from the Government under the Securities Contracts (Regulation) Act…

Q9.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.

Q11.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.

Q12.Indian EconomyAsked in: SSC CHSL · 21 March, 2023, Shift 2Easy

Which of the following is correct regarding the National Income? I. Intermediate goods are not included in the calculation of national income. II. Final goods are included in the calculation of national income.

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

Both statements state the same rule from opposite sides: national income is the value of final goods and services, and the value of intermediate goods is excluded so that the same output is not counted at every stage of production.

Q14.Indian EconomyHard

Within how many days must the corporate insolvency resolution process be completed, including extensions and the time spent in litigation?

  1. A.180 days
  2. B.270 days
  3. C.330 days
  4. D.365 days
Show answer
Correct answer: C. 330 days

Section 12 of the Code gives the resolution process 180 days from the date of admission, allows the adjudicating authority to extend it once by up to 90 days on a resolution of the Committee of Creditors, and the amendment of 2019 added the outer limit of 330 days, which…

Q15.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.

Q16.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2026, GS Paper IMedium

Which one of the following correctly represents the three key sub-indices of the Financial Inclusion Index (FI-Index) of the Reserve Bank of India (RBI) ?

  1. A.Credit access, Insurance depth, and Pension coverage
  2. B.Banking access, GDP contribution, and Financial literacy
  3. C.Access, Usage, and Quality
  4. D.Access, Affordability, and Transparency
Show answer
Correct answer: C. Access, Usage, and Quality

The RBI's FI-Index is built from these three sub-indices. The RBI introduced the Financial Inclusion Index in August 2021 to measure how far financial inclusion has spread across the country.

Q17.Indian EconomyMedium

Trading in equity derivatives began in India in which year, following the recommendations of the L. C. Gupta Committee?

  1. A.1992
  2. B.1996
  3. C.2000
  4. D.2003
Show answer
Correct answer: C. 2000

The L. C. Gupta Committee appointed by SEBI recommended the introduction of exchange traded derivatives, the law was amended to include derivatives in the definition of securities, and trading in index futures began on the Indian stock exchanges in June 2000; index options, stock options and stock futures followed in…

Q20.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.

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