Indian Economy Multiple Choice Questions (MCQs) for State and UPSC Civil Services Examinations

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Indian Economy Multiple Choice Questions (MCQs) for State and UPSC Civil Services Examinations. Objective Questions on Indian Economy for competitive examinations.

The base year for the calculation of all-India Index of Industrial Production (IIP) is:

[A] 2004-05

[B] 2005-06

[C] 2010-11

[D] 2011-12

Correct Answer: D [2011-12]

Notes:

The CSO had revised the base year of the IIP from 2004-05 to 2011-12 in May 2017 to capture structural changes in the economy and improve the quality and representativeness of indices. The revised IIP (2011-12) reflects the changes in the industrial sector and also aligns it with the base year of other macroeconomic indicators like Wholesale Price Index (WPI) and Gross Domestic Product (GDP).

Which of the following is not a correct statement with respect to Masala Bonds? 

[A] They allow Indian companies to raise overseas debts in Indian currency

[B] Interest Payment on Masala Bonds is in Indian Rupee

[C] Most popular market for Masala Bonds is New York currently

[D] All of the above are correct statements

Correct Answer: C [Most popular market for Masala Bonds is New York currently]

Notes:

Masala bonds allow Indian companies to raise overseas debt in the Indian currency. The instrument shields the issuers from currency fluctuations mainly because interest payments and redemption is in rupees. At the same time, investors get interest rates that are higher than in their domestic markets. In the third statement, the most popular market for Masala bonds currently is London. 

Which among the following is an opposite activity of hedging in share / currency /future markets?

[A] arbitrage

[B] speculation

[C] spread

[D] short

Correct Answer: B [speculation]

In which of the following countries first Stock Exchange opened?

[A] Uk

[B] Netherlands

[C] USA

[D] India

Correct Answer: B [Netherlands]

Notes:

The first stock exchange was in the Netherlands when the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange

Which among the following represents the accounting year of the Reserve Bank of India?

[A] April- March

[B] January – December

[C] September-August

[D] July-June

Correct Answer: D [July-June]

The portion of profits that a company distributes among its shareholders in the form of cash is usually known as _____?

[A] Yield

[B] Dividend

[C] Stock Split

[D] Free Float

Correct Answer: B [Dividend]

Notes:

Dividend is the portion of profits that a company distributes among its shareholders in the form of cash. Usually it is expressed per share. In some cases it is expressed as a percentage of the shares face value. Dividend Yield is the ratio of dividend amount per share to the prevailing market price of the share is a yardstick to identify attractively-valued stocks. Other things remaining equal, the higher the dividend yield, more attractive is the stock for investors

Under which of the following laws, the Subsidiary Bank of the State Bank of India is constituted ?

[A] Banking Regulation Act, 1949

[B] State Bank of India Act,1955

[C] State Bank of India (Subsidiary-Banks) Act,1959

[D] Banking Companies (Acquisition and Transfer of Under-taking) Act, 1980

Correct Answer: C [State Bank of India (Subsidiary-Banks) Act,1959]

IFSC is an alphanumeric code designed to uniquely identify the bank branches in India. This is an 11-digit code with the first four characters representing the bank’s code, the next character reserved as control character (currently, 0 appears in the fifth position) and remaining six characters to identify the branch. RBI has advised all banks to print IFSC on cheque leaves issued to customers. What is the full form for IFSC Code?

[A] Indian Financial System Code

[B] Indian Financial Security Code

[C] International Financial System Code

[D] International Financial Security Code

Correct Answer: A [Indian Financial System Code]

A monopolist will be able to maximize his profits when _________?

[A] His output is maximum

[B] He charges a Higher price

[C] His average cost is minimum

[D] His marginal cost is equal to the marginal revenue

Correct Answer: D [His marginal cost is equal to the marginal revenue]

Notes:

A monopolist is able to maximize his profits when his marginal cost is equal to marginal revenue. The profit-maximizing choice for the monopoly will be to produce at the quantity where marginal revenue is equal to marginal cost: that is, MR = MC.

Which among the following banks was designated as the Agency for operationalisation of the Joint Investment Fund between India and Oman?

[A] State Bank of India

[B] Punjab National Bank

[C] HDFC

[D] Union Bank of India

Correct Answer: A [State Bank of India]

🧾📚👉MORE QUESTIONS ABOUT INDIAN ECONOMY 👈🧾📚

1.The base year for the calculation of all-India Index of Industrial Production (IIP) is:

2.Which of the following is not a correct statement with respect to Masala Bonds? 

3.Which among the following is an opposite activity of hedging in share / currency /future markets?

4.In which of the following countries first Stock Exchange opened?

5.Which among the following represents the accounting year of the Reserve Bank of India?

6.The portion of profits that a company distributes among its shareholders in the form of cash is usually known as _____?

7.Under which of the following laws, the Subsidiary Bank of the State Bank of India is constituted ?

8.IFSC is an alphanumeric code designed to uniquely identify the bank branches in India. This is an 11-digit code with the first four characters representing the bank’s code, the next character reserved as control character (currently, 0 appears in the fifth position) and remaining six characters to identify the branch. RBI has advised all banks to print IFSC on cheque leaves issued to customers. What is the full form for IFSC Code?

9.A monopolist will be able to maximize his profits when _________?

10.Which among the following banks was designated as the Agency for operationalisation of the Joint Investment Fund between India and Oman?

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