1. Which institution is known as the "lender of last resort" for banks in India?
- a) State Bank of India
- b) Reserve Bank of India
- c) World Bank
- d) Ministry of Finance
Answer:b) Reserve Bank of India
Explanation:The Reserve Bank of India (RBI) acts as the lender of last resort for banks, providing them with liquidity in times of financial stress.
2.What is the full form of GST in the Indian economy?
- a) Goods and Supply Tax
- b) Goods and Sales Tax
- c) Goods and Services Tax
- d) General Sales Tax
Answer:c) Goods and Services Tax
Explanation: GST is an indirect tax levied on the supply of goods and services, and it has replaced many indirect taxes in India.
3. Which of the following is the largest contributor to India's Gross Domestic Product (GDP)?
- a) Agriculture
- b) Industry
- c) Services
- d) Mining
Answer:c) Services
Explanation: The services sector is the largest contributor to India's GDP, followed by industry and agriculture.
4. What is India's central bank called?
- a) State Bank of India
- b) Reserve Bank of India
- c) Punjab National Bank
- d) National Bank for Agriculture and Rural Development
Answer:b) Reserve Bank of India
Explanation: The Reserve Bank of India (RBI) is India's central bank, responsible for regulating the issue of currency and the monetary policy of the country.
5.What is disinvestment in the context of the Indian economy?
- a) Selling public sector enterprises to private companies
- b) Reducing foreign investments in India
- c) Increasing investments in infrastructure
- d) Reducing government spending
Answer: a) Selling public sector enterprises to private companies
Explanation:Disinvestment refers to the process by which the government sells its stakes in public sector enterprises to private players.
6. Which of the following schemes was launched to promote financial inclusion in India?
- a) Make in India
- b) Pradhan Mantri Jan Dhan Yojana
- c) Ayushman Bharat
- d) Skill India
Answer:b) Pradhan Mantri Jan Dhan Yojana
Explanation: The Pradhan Mantri Jan Dhan Yojana aims to provide universal access to banking facilities, especially for the poor and marginalized sections of society.
7.Which organization publishes the "Economic Survey" in India?
- a) NITI Aayog
- b) Reserve Bank of India
- c) Ministry of Finance
- d) World Bank
Answer: c) Ministry of Finance
Explanation: The Economic Survey is prepared and published annually by the Ministry of Finance, providing an overview of the state of the Indian economy.
8.What does "FDI" stand for in the Indian economy?
- a) Foreign Debt Investment
- b) Foreign Direct Investment
- c) Fixed Deposit Investment
- d) Foreign Deposit Income
Answer:b) Foreign Direct Investment
Explanation:FDI refers to investments made by foreign companies directly into the Indian economy by establishing businesses or acquiring assets.
9. Who is responsible for setting the Repo Rate in India?
- a) Securities and Exchange Board of India (SEBI)
- b) Ministry of Finance
- c) Reserve Bank of India (RBI)
- d) World Bank
Answer: c) Reserve Bank of India (RBI)
Explanation:The RBI sets the repo rate, which is the rate at which the central bank lends money to commercial banks to control inflation and liquidity.
10.Which organization is responsible for regulating the securities market in India?
- a) Reserve Bank of India
- b) NITI Aayog
- c) Securities and Exchange Board of India (SEBI)
- d) Insurance Regulatory and Development Authority
Answer:c) Securities and Exchange Board of India (SEBI)
Explanation:SEBI is the regulatory authority for the securities market in India, responsible for protecting investors and ensuring the smooth functioning of the market.
11.Which of the following statements is NOT associated with the White Revolution in India?
A) It was launched under the leadership of Dr. Verghese Kurien.
B) The primary objective was to increase milk production and make India self-sufficient in milk.
C) It was part of Operation Flood, launched in 1970.
D) The revolution primarily focused on increasing rice and wheat production in India.
Answer -D) The revolution primarily focused on increasing rice and wheat production in India.
Explain:The White Revolution is specifically associated with increasing milk production and not crops like rice and wheat, which were part of the Green Revolution. It aimed at improving the dairy industry through cooperative efforts, advanced technology, and infrastructure. Dr. Verghese Kurien's leadership and the launch of Operation Flood in 1970 were instrumental in its success. This revolution played a significant role in making India the world's largest milk producer.
12.Which of the following is the primary goal of the Beti Bachao Beti Padhao (BBBP) scheme?
a) Promoting higher education for boys
b) Improving the Child Sex Ratio and promoting girls' education
c) Reducing the population growth rate
d) Providing financial aid to single mothers
Ans:B) Improving the Child Sex Ratio and promoting girls' education
Explanation:The BBBP scheme aims to address the declining Child Sex Ratio (CSR) and promote the education of girls. It is a joint initiative by the Government of India to raise awareness and improve the overall situation of girls in society.
13.Which ministries are primarily involved in implementing the Beti Bachao Beti Padhao scheme?
a) Ministry of Health, Ministry of Finance, Ministry of Labour
b) Ministry of Women and Child Development, Ministry of Health, Ministry of Education
c) Ministry of Home Affairs, Ministry of Rural Development, Ministry of Finance
d) Ministry of External Affairs, Ministry of Defence, Ministry of Labour
Ans-b) Ministry of Women and Child Development, Ministry of Health, Ministry of Education
Explanation:The BBBP scheme is a collaborative effort involving the Ministry of Women and Child Development, the Ministry of Health, and the Ministry of Education to improve the status of girls by ensuring their survival, protection, and education.
3.Which of the following measures is NOT a focus area under the Beti Bachao Beti Padhao scheme?
a) Enforcing the Pre-Conception and Pre-Natal Diagnostic Techniques (PCPNDT) Act
b) Promoting gender equality through public awareness
c) Ensuring the health and nutrition of boys
d) Improving access to education for girls
Ans-c) Ensuring the health and nutrition of boys
Explanation:The BBBP scheme focuses specifically on the survival, protection, and education of girls. It promotes gender equality and addresses issues like the declining Child Sex Ratio, with no specific focus on boys' health and nutrition.
1.What is the central bank of India?
a) Reserve Bank of India
b) State Bank of India
c) Indian Overseas Bank
d) Punjab National Bank
Answer: a) Reserve Bank of India
Explanation: The Reserve Bank of India (RBI) is the central bank of the country, responsible for regulating the banking system and monetary policy.
2.Which bank is known as the Banker’s Bank?
a) Reserve Bank of India
b) HDFC Bank
c) ICICI Bank
d) Axis Bank
Answer: a) Reserve Bank of India
Explanation: RBI acts as the bank for all commercial banks in India and provides them with essential banking services like clearing and settlement.
3.What does CRR stand for in the banking sector?
a) Cash Return Ratio
b) Cash Reserve Ratio
c) Credit Risk Ratio
d) Customer Reserve Ratio
Answer: b) Cash Reserve Ratio
Explanation: CRR is the percentage of total deposits that a bank must keep as reserves with the central bank, influencing liquidity and money supply.
4.Which is the largest public sector bank in India?
a) Punjab National Bank
b) Bank of Baroda
c) State Bank of India
d) kotak mahindra bank
Answer: c) State Bank of India
Explanation: State Bank of India (SBI) is the largest public sector bank in India in terms of assets and number of branches.
5.Which committee recommended the establishment of NABARD?
a) Narasimham Committee
b) Malhotra Committee
c) B.Sivaraman Committee
d) Raghuram Rajan Committee
Answer: c) B.Sivaraman Committee
Explanation: The B.Sivaraman Committee recommended setting up the National Bank for Agriculture and Rural Development (NABARD) to promote rural development.
6.What is the primary function of a commercial bank?
a) Managing the economy
b) Issuing currency
c) Accepting deposits and providing loans
d) Managing inflation
Answer: c) Accepting deposits and providing loans
Explanation: Commercial banks provide basic banking services such as accepting deposits, offering loans, and other financial services to the public.
7.Which of the following is a priority sector under RBI guidelines?
a) Agriculture
b) Real estate
c) Entertainment industry
d) Oil and Gas
Answer: a) Agriculture
Explanation: RBI mandates banks to provide a certain percentage of their loans to sectors like agriculture, which are critical for the economy’s development.
8.What is the full form of NEFT?
a) National Electronic Funds Transfer
b) National Emergency Fund Transfer
c) Non-Essential Funds Transfer
d) National Equal Fund Transfer
Answer: a) National Electronic Funds Transfer !
Explanation: NEFT is a nationwide payment system that allows for the transfer of funds between banks electronically.
9.Which banking institution is responsible for regulating the securities market in India?
a) SEBI
b) NABARD
c) RBI
d) SENSEX
Answer: a) SEBI
Explanation: The Securities and Exchange Board of India (SEBI) regulates the securities market to protect investors and ensure the market's integrity.SEBI was established in 1988 as a non-statutory body and was later given statutory powers on April 12, 1992, through the SEBI Act, 1992.
10.Which of the following is an example of a non-banking financial company (NBFC)?
a) LIC
b) Bank of India
c) ICICI Bank
d) Axis Bank
Answer: a) LIC
Explanation: Life Insurance Corporation (LIC) is an NBFC that offers financial services, such as insurance, but is not classified as a bank since it cannot accept demand deposits.
1. What is the Gross Domestic Product (GDP) of India?
a) The total export value of goods
b) The total market value of goods and
services produced in a country
c) Total import value
d) Net national income
Answer: b) The total market value of goods and services produced in a country
Explanation: GDP is the sum of all goods and services produced within India's borders, reflecting the economy's size.
2.Which committee was responsible for suggesting reforms in the Indian banking sector?
a) Narasimham Committee
b) Kelkar Committee
c) Rangarajan Committee
d) Tendulkar Committee
Answer: a) Narasimham Committee
Explanation: The Narasimham Committee suggested key reforms in banking, such as reduced government control and increasing competitiveness.
3.Which of the following is not a component of India’s capital account in the balance of payments?
a) Foreign Direct Investment (FDI)
b) Portfolio Investment
c) Export of goods
d) External borrowings
Answer: c) Export of goods
Explanation: Exports are part of the current account, while the capital account includes financial transfers like FDI and portfolio investments.
4.Which year saw the introduction of Goods and Services Tax (GST) in India?
a) 2015
b) 2017
c) 2016
d) 2018
Answer: b) 2017
Explanation: GST was implemented on July 1, 2017, unifying multiple indirect taxes into one comprehensive tax system.
5.What does the term "stagflation" mean in economics?
a) High inflation with high growth
b) Low inflation with low growth
c) High inflation with stagnant growth
d) Deflation with high growth
Answer: c) High inflation with stagnant growth
Explanation: Stagflation is a situation where inflation rises, but economic growth remains slow or stagnant, leading to unemployment.
6.Which Indian body is responsible for preparing national accounts, including GDP?
a) National Statistical Office (NSO)
b) Reserve Bank of India (RBI)
c) NITI Aayog
d) Ministry of Finance
Answer: a) National Statistical Office (NSO)
Explanation: NSO prepares national accounts, including GDP estimates, for India.
7.What was the key objective of the Green Revolution in India?
a) Increase industrial output
b) Increase agricultural productivity
c) Promote education
d) Reduce population growth
Answer: b) Increase agricultural productivity
Explanation: The Green Revolution aimed to increase food grain production, especially in wheat and rice, through high-yield seeds and modern technology.
8.Which of the following is the largest contributor to India's GDP?
a) Agriculture
b) Industry
c) Services
d) Mining
Answer: c) Services
Explanation: The services sector contributes the largest share to India’s GDP, including IT, telecommunications, and financial services.
9.Which tax is levied on the sale of goods and services in India?
a) Excise Duty
b) Custom Duty
c) Goods and Services Tax (GST)
d) Corporate Tax
Answer: c) Goods and Services Tax (GST)
Explanation: GST is an indirect tax levied on the supply of goods and services, replacing multiple indirect taxes like VAT and service tax.
10.Which institution is responsible for maintaining foreign exchange reserves in India?
a) State Bank of India
b) National Stock Exchange
c) Reserve Bank of India
d) NITI Aayog
Answer: c) Reserve Bank of India
Explanation: The Reserve Bank of India manages India's foreign exchange reserves, ensuring liquidity to stabilize the currency in global markets.
11.Which report is released by the government of India to analyze the economy?
a) Budget
b) Economic Survey
c) Five-Year Plan
d) NITI Aayog Report
Answer: b) Economic Survey
Explanation: The Economic Survey is released before the Union Budget, providing an overview of the Indian economy's performance in the previous year.
12.What does disinvestment mean in economic terms?
a) Increasing government holdings in public companies
b) Selling government stakes in public sector undertakings
c) Investing in private companies
d) Nationalizing industries
Answer: b) Selling government stakes in public sector undertakings
Explanation: Disinvestment refers to the government selling its shares in public enterprises to reduce its involvement in the market.
13.What was the primary goal of India’s 1991 economic reforms?
a) Increasing exports
b) Liberalizing the economy
c) Promoting agriculture
d) Strengthening the defense sector
Answer: b) Liberalizing the economy
Explanation: The 1991 reforms focused on liberalization, privatization, and globalization (LPG), aiming to open up the economy to global competition.
14.What is the ‘Inflation Targeting’ policy in India managed by?
a) Reserve Bank of India
b) Ministry of Finance
c) SEBI
d) SBI
Answer: a) Reserve Bank of India
Explanation: The RBI targets inflation within a specific range, usually between 2% and 6%, to ensure price stability.
15. **Which financial instrument is used to raise money in the domestic market?**
a) Commercial Paper
b) External Commercial Borrowing
c) Masala Bonds
d) Foreign Currency Convertible Bonds
Answer: a) Commercial Paper
Explanation: Commercial paper is a short-term financial instrument used by companies to raise working capital in the domestic market.
16. **Which of the following sectors is not included in India's GDP calculation?**
a) Agriculture
b) Services
c) Industry
d) Black Market Transactions
Answer: d) Black Market Transactions
Explanation: GDP includes only legal economic activities, excluding informal and illegal transactions such as black market dealings.
17. **Which of the following is considered a direct tax in India?**
a) Income Tax
b) Goods and Services Tax (GST)
c) Excise Duty
d) Service Tax
Answer: a) Income Tax
Explanation: Income tax is a direct tax levied on individuals and companies based on their earnings.
18. **The term "Repo Rate" refers to which of the following?**
a) The interest rate at which RBI lends to commercial banks
b) The rate at which banks lend to customers
c) The fixed exchange rate
d) The rate at which RBI borrows from banks
Answer: a) The interest rate at which RBI lends to commercial banks
Explanation: Repo rate is the rate at which the RBI lends money to commercial banks in case of short-term liquidity shortages.
19. **Which of the following committees was set up to review Indian taxation reforms?**
a) Kelkar Committee
b) Narasimham Committee
c) Rangarajan Committee
d) Tendulkar Committee
Answer: a) Kelkar Committee
Explanation: The Kelkar Committee was set up to suggest reforms in direct and indirect taxes in India.
20. **Which body is responsible for formulating India's monetary policy?**
a) Ministry of Finance
b) Reserve Bank of India
c) NITI Aayog
d) Planning Commission
Answer: b) Reserve Bank of India
Explanation: The RBI formulates and implements India's monetary policy to control inflation, manage liquidity, and maintain financial stability.
21. **Which sector does the term "inclusive growth" focus on?**
a) Manufacturing sector
b) All sectors, especially the marginalized
c) Agriculture sector
d) Information technology sector
Answer: b) All sectors, especially the marginalized
Explanation: Inclusive growth refers to broad-based growth that benefits all sections of society, including the poor and marginalized.
22. **Which of the following is not a function of the Securities and Exchange Board of India (SEBI)?**
a) Regulating stock exchanges
b) Ensuring investor protection
c) Managing foreign exchange reserves
d) Preventing insider trading
Answer: c) Managing foreign exchange reserves
Explanation: SEBI regulates stock markets, whereas the management of foreign exchange reserves is a function of the Reserve Bank of India.
23. **What is the aim of the Pradhan Mantri Jan Dhan Yojana (PMJDY)?**
a) Encourage foreign investment
b) Provide basic financial services to all
c) Promote agricultural growth
d) Increase industrial production
Answer: b) Provide basic financial services to all
Explanation: PMJDY is aimed at financial inclusion by providing affordable access to financial services such as bank accounts, credit, and insurance to every Indian citizen.
24. **What is the role of the NITI Aayog?**
a) Create five-year plans
b) Act as a policy think-tank
c) Regulate financial institutions
d) Implement monetary policy
Answer: b
