Table of Contents
INDIAN ECONOMY MCQs
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Q21. What is Bank Rate?
a) a higher rate charged by RBI when it gives loan to Foreign Banks
b) the rate lower than REPO rate charged by RBI from other banks
c) a higher rate charged by RBI when it gives loan to commercial banks
d) all of the above
ANSWER:C
Q22. Cash Reserve Ratio (CRR) refers to
a) liquid reserves
b) fixed deposits
c) liquid assets
d) a & b both
ANSWER:A
Q23. Who keeps the Statutory Liquidity Ratio (SLR)?
a) RBI
b) banks itself
c) customers
d) businessman
ANSWER:B
Q24. What does Capital to Risk Weighted Assets Ratio (CRAR) stands for?
a) division of the fixed assets and current assets
b) determination of debts
c) division of the capital of the bank with aggregated risk weighted assets
d) division of liabilities and assets
ANSWER:C
Q25. Which one is the Government Security?
a) Treasury bill
b) Treasury notes
c) Treasury bonds
d) All of the above
ANSWER:D
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Q26. NNP stands for
a) National Net Product
b) New National Product
c) Net National Product
d) B only
ANSWER:C
Q27. Who is the Father of Economics?
a) Prof. Marshall
b) Prof. Pigou
c) Lord Keynesian
d) Adam Smith
ANSWER:D
Q28. NDP refers to
a) National Development Project
b) Net Domestic Product
c) Net Domestic Project
d) c only
ANSWER:B
Q29. Personal Income (PI) includes
a) income received by primary sector
b) money income received by an economy
c) total money income received by individuals and households of a country
d) total money income received by commercial banks
ANSWER:C
Q30. What is Per Capita Income?
a) derived by dividing the national income by the total population of a country
b) derived by dividing personal income by gross domestic product
c) a sum of national income and net domestic product
d) a only
ANSWER:A
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Q31. How many types of consumer goods do we have?
a) 5
b) 6
c) 4
d) 3
ANSWER:C
Q32. What are durable and semi durable consumer goods?
a) durable goods are those which can be used for several years
b) semi-durable goods are used for a period of one year
c) both goods are same
d) a & b are right
ANSWER:D
Q33. What are services?
a) those non- material goods which directly satisfy human wants
b) those material goods which indirectly satisfy human wants
c) goods which are used in a single act of consumption
d) that things which satisfies the producer’s needs
ANSWER:A
Q34. How capital goods can be defined?
a) the goods which are used for consumption
b) those goods which are used in the process of production
c) goods which are used in the production of other goods
d) b only
ANSWER:B
Q35. What is the meaning of ‘Flow’?
a) a quantity measured over a specified period of time
b) a quantity measured at a particular point of time
c) shows the deposits in the saving bank account
d) differentiates the capital and quantity of money
ANSWER:A
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Q36. How many phases of circular flow do we have?
a) 2
b) 1
c) 5
d) 3
ANSWER:D
Q37. Which phase of circular Flow is known as Phase of value addition?
a) Phase of Income Generation
b) Phase of Expenditure
c) Phase of Production
d) None of the above
ANSWER:C
Q38. Which is an example of the Phase of Income Generation?
a) rent for land
b) interest for capital
c) wages/salaries for labour
d) all of the above
ANSWER:D
Q39. What do you understand by Wholesale Price Index (WPI)?
a) measures the changes in price at retail level
b) measures the changes in price charged by manufacturers & wholesalers
c) an index which represents the price of services paid by consumers
d) a only
ANSWER:B
Q40. What is Consumer Price Index (CPI)?
a) an index measures the average price of goods paid by producers
b) measures the average price of goods & services that the consumers have to pay
c) a & b both
d) a only
ANSWER:B
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