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Indian Economy Online Exam Quiz

Important questions about Indian Economy. Indian Economy MCQ questions with answers. Indian Economy exam questions and answers for students and interviews.

1. Depreciation means


A : closure of a plant due to lock out

B : closure of a plant due to labour trouble

C : loss of equipment over time due to wear and tear

D : destruction of a plant in a fire accident

2. Development expenditure of the Central government does not include


A : defence expenditure

B : expenditure on economic services

C : expenditure on social and community services

D : grant to states

3. In which of the following sequences the change in quantity of money leads to change in price level in the Keynesian models?


A : Change in quantity of money - change in investment - change in employment and output - change in rate of interest - change in price level

B : Change in quantity of money - change in employment and output - change in investment - change in the rate of interest - change in price level

C : Change in quantity of money - change in investment - change in rate of interest - change in employment and output - change in price level

D : Change in quantity of money - change in rate of interest - change in investment - change in employment and output - change in price level

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


A : Hindustan Commercial Bank

B : Oudh Commercial Bank

C : Punjab National Bank

D : Punjab and Sind Bank

5. The association of the rupee with pound sterling as the intervention currency was broken in


A : 1990

B : 1991

C : 1992

D : 1993

6. The budget deficit means


A : the excess of total expenditure, including loans, net of lending over revenue receipts

B : difference between revenue receipts and revenue expenditure

C : difference between all receipts and all the expenditure

D : fiscal deficit less interest payments

7. Gilt-edged market means


A : bullion market

B : market of government securities

C : market of guns

D : market of pure metals

8. The currency convertibility concept in its original form originated in


A : Wells Agreement

B : Bretton Woods Agreement

C : Taylors Agreement

D : None of the above

9. Non Tax revenues can be increased by improving the working of the


A : State Road Transport Corporations

B : electricity boards

C : commercial irrigation projects

D : All of the above

10. The ARDC is now a branch of the






1. Revenue of the state governments are raised from the following sources, except


A : entertainment tax

B : expenditure tax

C : agricultural income tax

D : land revenue

2. Short-term finance is usually for a period ranging up to


A : 5 months

B : 10 months

C : 12 months

D : 15 months

3. Which of the following is not viewed as a national debt?


A : Provident Fund

B : Life Insurance Policies

C : National Saving Certificate

D : Long-term Government Bonds

4. Since the inception of the co-operative movement, rural credits has been


A : institutionalized

B : rationalized

C : cheapened

D : All of the above

5. Debenture holders of a company are its


A : shareholders

B : creditors

C : debtors

D : directors

6. Devaluation of a currency means


A : reduction in the value of a currency vis-a-vis major internationally traded currencies

B : permitting the currency to seek its worth in the international market

C : fixing the value of the currency in conjunction with the movement in the value of a basket of pre-determined currencies

D : fixing the value of currency in multilateral consultation with the IMF, the World Bank and major trading partners

7. If the RBI adopts an expansionist open market operations policy, this means that it will


A : buy securities from non-government holders

B : sell securities in the open market

C : offer commercial banks more credit in the open market

D : openly announce to the market that it intends to expand credit

8. Excise duty is a tax levied on the


A : import of goods

B : export of goods

C : production of goods

D : sale of goods

9. If the fiscal deficit of the Union Government is Rs. 75,000 crores relending to State is Rs. 25,000 crores, interest payments are Rs. 25,000 crores, what is the amount of the primary deficit?


A : Rs. 50,000 crores

B : Rs. 25,000 crores

C : Rs. 1,00,000 crores

D : Rs. 1,25,000 crores

10. Resurgent India Bonds were issued in US dollar, Pound Sterling and


A : Japanese Yen

B : Deutsche Mark

C : Euro

D : French Franc

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