MCQs on Indian Economy 2017

MCQs on Indian Economy 2017

(UPSC CIVIL SERVICES EXAMINATION & OTHER COMPETITIVE EXAMINATIONS)

To check solutions to MCQs Click Here

Q1. Consider the following Statements regarding Geographical Indication (GI) Tag:

  1. GI tag is an insignia on products having a unique geographical origin.
  2. In India, GI registration is governed by the Geographical Indications of goods
    (Registration and Protection) Act, 1999.
  3. Darjeeling tea was the first product to accorded with GI tag in India.

Identify the correct statements:

a) 1 & 3 only

b) 2 & 3 only

c) All are correct

d) 1 only

Q2. Consider the following Statements regarding Diamond Quadrilateral:

  1. It is a project of the Indian railways to establish high speed rail network in India.
  2. This quadrilateral will connect the four metro cities in India, i.e. Delhi, Mumbai,
    Kolkata and Bangalore.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q3. Consider the following Statements regarding Securities and Exchange Board of India (SEBI):

  1. SEBI is the statutory regulator for the securities market in India.
  2. It has three functions: quasi-legislative, quasi-judicial and quasi-executive.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q4. Consider the following Statements regarding International Financial Services Centre (IFSC):

  1. India’s first International Financial Services Centre (IFSC) became operational at Gujarat International Finance Tec (GIFT) City in Gandhinagar.
  2. An IFSC is part of SEZ & caters to customers outside the jurisdiction of the domestic economy.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q5. Consider the following Statements regarding National Payments Corporation of India (NPCI):

  1. It played key role in the development of a domestic card payment network called RuPay.
  2. It is the implementing agency for Lucky Grahak Yojana and Digi-Dhan Vyapar Yojana.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q6. Consider the following Statements regarding CERT-In:

  1. It is Indian Computer Emergency Response Team
  2. It works under the aegis of the Ministry of Science & Technology

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q7. Consider the following Statements regarding Antrix Corporation:

  1. It is the commercial arm of DRDO.
  2. It functions under the aegis of Department of Space (DoS), an independent
    Department directly working under the Prime Minister.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q8. Consider the following Statements regarding National Pharmaceutical Pricing Authority (NPPA):

  1. NPPA decides the ceiling prices of essential medicines under The Drug (Prices Control) Order 2013.
  2. It functions under the aegis of Union Ministry of Consumer Affairs, Food & Public Distribution.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q9. Consider the following Statements regarding Monetary Policy Committee:

  1. The Monetary Policy Committee (MPC) is a committee of the central bank — Reserve Bank of India, headed by its Governor.
  2. The 6 member MPC is entrusted with the task of fixing the benchmark policy interest rate (repo rate) to contain inflation within the target level.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q10. Consider the following Statements regarding Serious Fraud Investigation Office (SFIO):

  1. It is the agency which looks at white collar crimes in Corporate Sector.
  2. It is under the jurisdiction of the Ministry of Corporate Affairs, Government of
    India.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q11. Consider the following Statements regarding Financial Stability and Development Council (FSDC):

  1. It is an apex level forum with the RBI governor as it Chairman for maintaining financial stability in the country.
  2. Its members include heads of the financial sector regulatory authorities (i.e, RBI, SEBI, IRDA, PFRDA), Finance Secretary and/or Secretary, Department of Economic Affairs (Union Finance Ministry), Secretary, Department of Financial Services, and Chief Economic Adviser.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q12. Consider the following Statements regarding Food Safety and Standards Authority of India (FSSAI):

  1. It is a statutory body under Ministry of Consumer Affairs, Food & Public Distribution.
  2. It lays down the Standards and guidelines in relation to articles of food.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q13. Consider the following Statements regarding

ReportReleasing Agency
1World Investment ReportUnited Nations Conference on Trade and Development (UNCTAD)
2Corruption Perception Index (CPI)Transparency International
3World Economic Outlook (WEO)International Monetary
Fund (IMF)
4Ease of Doing Business ReportWorld Bank (WB)

Identify the correct statements:

a) 1,2 & 3 only

b) 2,3 & 4 only

c) All are correct

d) 1,3 & 4 only

Q14. Which of following index is not published by World Economic Forum?

a) Global Competitiveness Index (GCI)

b) Human Capital Index

c) Networked Readiness Index

d) Global Innovation Index

Q15. Consider the following Statements regarding Financial Stability Report:

  1. The Reserve Bank of India releases the Financial Stability Report (FSR).
  2. It is released once in 6 months.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q16. Ratan Watal Committee relates to:

a) Digital Payments

b) Black Money

c) Food Subsidies

d) Welfare of Disabilities

Q17. Shankar Acharya committee was formed to examine the issue of:

a) desirability and feasibility of having a new fiscal year.

b) reduction in tax rate on digital payments.

c) use of socio economic & caste census for various government schemes.

d) Double Taxation Avoidance Agreements (DTAA)

Q18. ____________ refers to those instances where gaps between different tax rules leads to tax avoidance causing harm to the government.

a) BEPS

b) DTAA

c) APA

d) BIT

Q19. Consider the following Statements regarding Market Economy Status (MES).

  1. Under WTO norms, once a country gets MES status, exports from it are to be
    accepted at the production costs and selling price as the benchmark.
  2. India recently granted MES to China.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q20. Consider the following Statements regarding External Commercial Borrowings (ECBs):

  1. Any money borrowed from foreign sources for financing the commercial activities in India are called ECBs.
  2. ECBs are parts of FDI.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q21. Consider the following Statements regarding Permanent Court of Arbitration (PCA):

  1. It is the first permanent intergovernmental organization that provided a forum
    for the resolution of international disputes through arbitration.
  2. It also administers cases under the arbitration rules of the United Nations
    Commission on International Trade Law (UNCITRAL).

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q22. Consider the following Statements regarding Countervailing duties (CVDs):

  1. They are also known as anti-subsidy duties
  2. They are imposed in accordance with the GATT

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q23. Consider the following Statements regarding Participatory Notes (P-Notes):

  1. They are offshore derivative instruments issued by registered foreign institutional investors (FII) to overseas investors
  2. Overseas investors can invest in the Indian stock markets after registering themselves with SEBI using P-Notes.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q24. Consider the following Statements regarding Foreign Currency Non-Resident (FCNR) deposits?

  1. It is a savings account that can be maintained by NRIs and PIOs in foreign currency.
  2. Interest income from FCNR accounts is exempt from Income Tax.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q25. __________ is an ahead-of-time agreement between a taxpayer and a tax authority on an appropriate transfer pricing methodology to bring tax certainty, reduce litigation expenses and avoid risk of double taxation.

a) Advanced Pricing Agreement

b) Double Taxation Avoidance Agreement

c) Bilateral Investment Agreement

d) GAAR

Q26. Which of following schemes are related to solving the problem of Non Performing Assets:

  1. Scheme for sustainable structuring of stressed assets (S4A)
  2. Strategic Debt Restructuring Scheme
  3. 5/25 scheme

a) 1 & 2 only

b) 2 & 3 only

c) All are correct

d) 2 only

Q27. __________ Act empowers Banks/ Financial Institutions to recover their NPAs without the intervention of the court, through acquiring and disposing secured assets in case of outstanding amounts greater than 1 lakh.

a) SARFAESI

b) Banking Regulation

c) RBI

d) Negotiable Instruments

Q28. Consider the following Statements regarding Non Performing Asset (NPA):

  1. It is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.
  2. In case of Agriculture/Farm Loans, the NPA varies for of Short duration crop loan (interest not paid for 2 crop seasons), Long Duration Crops (interest not paid for 1 Crop season).

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None:

Q29. Consider the following Statements regarding Masala bonds:

  1. Masala bond refers to a rupee-denominated bond through which Indian entities can raise money from foreign markets in rupee.
  2. Housing Development Finance Corporation (HDFC) has become the first Indian company to issue rupee-denominated bonds “masala bonds”.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q30. Consider the following Statements regarding Payments banks:

  1. They were created on the recommendation of committee headed by Nachiket Mor.
  2. They can accept demand deposits.
  3. They can issue ATM/debit cards but not credit cards.
  4. They have to comply with CRR & SLR norms of RBI

Identify the correct statements:

a) 1,2 & 4 only

b) 1,2 & 3only

c) All are correct

d) 2 &3 only

Q31. Consider the following Statements regarding Banks Board Bureau (BBB):

  1. It will give recommendations for appointment of full-time Directors as well as non-Executive Chairman of PSBs.
  2. It is part of seven point Indradhanush Mission to revamp the Public Sector Banks
    (PSBs).

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q32. Consider the following Statements regarding Small Finance Banks:

  1. They will primarily undertake basic banking activities of acceptance of deposits and lending to unserved and underserved sections.
  2. They have to comply with Priority sector lending requirement of 75% of total adjusted net bank credit.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q33. _________ is in charge of financial policy in regard to the utilisation of proceeds of disinvestment channelised into the National Investment Fund (NIF).

a) Deptt of Economic Affairs (DEA)

b)  Department of Investment and Public Asset Management (DIPAM)

c) Cabinet Committee on Economic Affairs

d) Chief Economic Advisor

Q34. Consider the following Statements regarding Index of Industrial Production (IIP):

  1. The IIP is compiled and published every month by Central Statistics Office (CSO).
  2. Its current base year is 2011-12.
  3. The eight Core Industries comprise nearly 38% of the weight of items included in IIP.

Identify the correct statements:

a) 1 & 2 only

b) 2 & 3 only

c) All are correct

d) 1 & 3 only

Q35. Consider the following Statements regarding Consumer Price Indices (CPI):

  1. Consumer Price Indices (CPI) released at national level are CPI for Industrial Workers (IW), CPI for Agricultural Labourers (AL)/ Rural Labourers (RL) and CPI (Rural/Urban/Combined).
  2. Base year for CPI (Rural, Urban, and Combined) is 2012.
  3. CPI basket is broader than WPI basket.
  4. CPI covers consumer goods and consumer services.

Identify the correct statements:

a) 1,2 & 3 only

b) 2,3 & 4 only

c) All are correct

d) 1,2 & 4 only

Q36. Consider the following Statements regarding Wholesale Price Index (WPI):

  1. WPI consists of 676 commodities (services are not included in WPI in India).
  2. In India, there are three main components in WPI – Primary Articles, Fuel & Power and Manufactured Products.
  3. Current WPI Base year is 2004-05.
  4. WPI covers only final goods (excluding intermediate goods) transacted in the economy.

Identify the correct statements:

a) 1, 2 & 3 only

b) 2 & 3 only

c) All are correct

d) 1 & 2 only.

Q37. Consider the following Statements regarding Non-bank financial companies (NBFCs):

  1. NBFC cannot accept demand deposits.
  2. They can issue cheques drawn on itself.
  3. The Reserve Bank of India is entrusted with the responsibility of regulating and
    supervising the Non-Banking Financial Companies.
  4. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is
    available to depositors of NBFCs, like in case of banks.

Identify the correct statements:

a) 1 & 3 only

b) 2 & 3 only

c) All are correct

d) 1,3 & 4 only

Q38. What is merchant discount rate?

a) charge that customers pay to merchants every time a debit card or credit card is swiped at their end for a transaction by a customer.

b) charge that banks pay to merchants every time a debit card or credit card is swiped at their end for a transaction by a customer.

c) charge that merchants pay every time a debit card or credit card is swiped at their end for a transaction by a customer.

d) None

Q39. Consider the following Statements regarding Demonetisation in India:

  1. The first demonetization in the independent India was done in the year 1946 and another one in the year 1978.
  2. The legal basis for the order demonetizing currency can be found in the Reserve Bank of India Act, 1934.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q40. What is India INX?

a)India’s first international exchange.

b) New series of currency notes

c) New Export Policy

d) India’s first Masala Bond

Q41. Consider the following Statements regarding Lucky Grahak Yojana and Digi Dhan Vyapar Yojana to promote digital payments:

  1. They were launched by the NITI (National Institution for Transforming India) Aayog.
  2. National Payment Corporation of India (NPCI) will be the implementing agency for
    these schemes.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q42. Consider the following Statements regarding Public Debt Management Cell (PDMC):

  1. Union Finance Ministry has set up a Public Debt Management Cell (PDMC) with
    the objective of deepening bond markets in the country.
  2. It will allow separation of debt management functions from RBI.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q43. Parliament recently passed Benami Transactions (Prohibition) Amendment Act, 2016 to strengthen the fight on black money. What are benami transactions?

a) transactions in which the real beneficiary is the person in whose name the transaction has been done.

b)  transactions in which the real beneficiary is not the person in whose name the transaction has been done.

c)  transactions in which the real beneficiary is the child of the person in whose name the transaction has been done.

d) transactions which are done without use of PAN card.

Q44. Consider the following Statements regarding special economic zone (SEZ):

  1. It is a geographical region that has economic laws different from a country’s typical economic laws.
  2. It is treated as foreign territory for the purpose of trade operations and duties and tariffs.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q45. Consider the following Statements regarding Mission Indradhanush (Banking):

  1. The mission is a brainchild of PJ Nayak committee.
  2. It aims to clean up the balance sheets of PSBs to ensure banks remain solvent and fully comply with global capital adequacy norms, Basel-III.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q46. Consider the following Statements regarding BHIM (Bharat Interface for Money):

  1. It is Aadhaar-based payments app developed by the National Payment Corporation of India (NPCI).
  2. It can only work on smartphones since it requires BHIM app.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q47. Consider the following Statements regarding National Investment and Infrastructure Fund (NIIF):

  1. It is Fund created by the Government of India for enhancing infrastructure financing in
    the country.
  2. It is India’s first sovereign wealth fund & set up as Category II Alternate Investment Fund (AIF) under the Securities and Exchange Board of India (SEBI) Regulations.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q48. Consider the following Statements regarding Unified Payments Interface (UPI):

  1. The UPI is for mobile based payment method using ‘virtual address’ and eliminating the need to exchange sensitive information such as bank account numbers.
  2. The National Payments Corporation of India (NPCI) launched “Unified Payments
    Interface (UPI)”.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q49. Consider the following Statements regarding Sagarmala Programme:

  1. It seeks to develop a string of ports around India’s coast and thus promote “Port-led development”.
  2. The Union Ministry of Shipping is the nodal ministry for this initiative.

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

Q50. Consider the following Statements regarding DigiShala:

  1. It is a satellite channel managed by Doordarshan (DD) to promote cashless transactions.
  2. Union Ministry of Information & Broadcasting has launced the channel as part of the ‘Digidhan’ campaign

Identify the correct statements:

a) 1 only

b) 2 only

c) All are correct

d) None

To check solutions to MCQs Click Here

To check more MCQs (Union Budget, Economic Survey, Government Schemes & much more) – Click Here

Leave a Reply

Your email address will not be published. Required fields are marked *

Optionally add an image (JPEG only)