Indian Economy MCQ Questions and answers for practice

31

Fiscal deficit in the Union Budget means

A) the difference between current expenditure and current revenue B) net increase in Union Governments borrowings from the Reserve Bank of India C) the sum of budgetary deficit and net increase in internal and external borrowings D) the sum of monetized deficit and budgetary deficit

Discuss

Answer & Solution

Answer: Option C

Solution:

Fiscal deficit in the Union Budget means the sum of budgetary deficit and net increase in internal and external borrowings.

32

How many banks were nationalized in 1969?

A) 16 B) 14 C) 15 D) 20

Discuss

Answer & Solution

Answer: Option B

Solution:

14 banks were nationalized in 1969.

33

In India, the first bank of limited liability managed by Indians and founded in 1881 was

A) Hindustan Commercial Bank B) Oudh Commercial Bank C) Punjab National Bank D) Punjab and Sind Bank

Discuss

Answer & Solution

Answer: Option B

Solution:

In India, the first bank of limited liability managed by Indians and founded in 1881 was Oudh Commercial Bank.

34

In India, inflation measured by the

A) Wholesale Price Index number B) Consumers Price Index for urban non-manual workers C) Consumers Price Index for agricultural workers D) National Income Deflation

Discuss

Answer & Solution

Answer: Option A

Solution:

Two major measures for inflation, which are widely used, are Wholesale Price Index (WPI) and Consumer Price Index (CPI). WPI measures the increase in the prices of a fixed basket of goods prevailing in the wholesale market while CPI measures the increase in the prices of essential commodities purchased by an average consumer prevailing in the retail market. Measured weekly, WPI is the primary inflation measure in India.

35

The annual yield from which of the following Union Government taxes is the highest?

A) Custom duties B) Corporation tax and income tax C) Inheritance tax, wealth tax, interest tax and gift tax D) Excise duties

Discuss

Answer & Solution

Answer: Option D

Solution:

The annual yield from excise duties is the highest.

36

The average rate of domestic savings (gross) for the Indian economy is currently estimated to be in the range of

A) 15 to 20 percent B) 20 to 25 percent C) 25 to 30 percent D) 30 to 35 percent

Discuss

Answer & Solution

Answer: Option B

Solution:

The average rate of domestic savings (gross) for the Indian economy is currently estimated to be in the range of 20 to 25 percent.

37

Subsidies mean

A) payment by government for purchase of goods and services B) payment made by business enterprises to factors of production C) payment made by companies to shareholders D) payment made by the government to business enterprises, without buying any goods and services

Discuss

Answer & Solution

Answer: Option D

Solution:

Subsidies mean a sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low.

38

National expenditure includes

A) consumption expenditure B) investment expenditure C) government expenditure D) All of the above

Discuss

Answer & Solution

Answer: Option D

Solution:

All of the above.

39

Resurgent India bonds were issued in US dollar, Pound Sterling and

A) Japanese Yen B) Deutsche Mark C) Euro D) French Franc

Discuss

Answer & Solution

Answer: Option B

Solution:

Resurgent India bonds were issued in US dollar, Pound Sterling and Deutsche Mark.

40

The apex body for formulating plans and coordinating research work in agriculture and allied fields is

A) State Trading Corporation B) Regional Rural Banks C) National Bank for Agriculture and Rural Development (NABARD) D) Indian Council of Agricultural Research

Discuss

Answer & Solution

Answer: Option D

Solution:

The apex body for formulating plans and coordinating research work in agriculture and allied fields is Indian Council of Agricultural Research.

Indian Economy MCQ Questions and answers for practice | GK