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Indian Economy MCQs with Answer
Q: Plan finance creates increase of money supply if there is
A: increase in taxes
B: increase in loan from the Reserve Bank of India
C: increase in loan from commercial Banks
D: increase in loan from general public
Answer
increase in taxes
Q: Fiscal Deficit is:
A: Government expenditure minus borrowings
B: Government expenditure minus revenue receipts
C: Same as budget deficit
D: Budget deficit minus borrowings and other liabilities
Answer
Government expenditure minus revenue receipts
Q: In order to control inflationary price rise, Reserve Bank directs Banks to
A: Reduce rate of interest on credit
B: Reduce Statutory Liquidity Ratio (SLR)
C: Increase Cash Reserve Ratio (CRR)
D: Buy bonds from capital market
Answer
Increase Cash Reserve Ratio (CRR)
Q: "Swadesh Darshan" is:
A: a scheme for development of tourism infrastructure
B: related with transportation service for sightseeing in Tripura
C: a Char Dham Yatra
D: visit to a natural scenery
Answer
a scheme for development of tourism infrastructure
Q: The equilibrium condition for money market is:
A: demand for money should be equal to supply of money
B: cash in hand should be equal to deposits in bank
C: saving is equal to investment
D: bank rate is equal to repo rate
Answer
demand for money should be equal to supply of money
Q: The growth of per capita income of current prices is higher than that of per capita income at constant prices because the later takes into account the rate of
A: growth of population
B: increase in price level
C: growth of money supply
D: increase in the wage rate
Answer
increase in price level
Q: The purpose of land reforms was to :
A: increase the production in agriculture
B: increase the purchasing power of the rural population
C: ensure distributive justice with economic growth
D: all of the above
Answer
all of the above
Q: The Special Economic Zones Act was passed by the Indian Parliament in 2005 and the Act came into force in:
A: 2006
B: 2009
C: 2010
D: 2012
Answer
2006
Q: The Plan launched in the 50th year of Indian Independence was :
A: Sixth five year plan
B: Eighth five year plan
C: Ninth five year plan
D: Tenth five year plan
Answer
Ninth five year plan
Q: Existence of huge black money creates
A: increase in the inequality of income
B: decrease in the quality of output
C: high living standard for all
D: Both (B) and (C)
Answer
increase in the inequality of income
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