Indian Economy MCQs GK SSC UPSC RRB APSC Competitive Exam Set-1

Q.1. Which of the following is main objective of Aadhaar Pay?

[A] To enable peer-to-peer money transaction
[B] To enable merchants to receive digital payments using Aadhaar
[C] To integrate UPI with Aadhaar
[D] To link Jan-Dhan Accounts with Aadhaar number

Answer: B [ To enable merchants to receive digital payments using Aadhaar ]

Aadhaar Pay is proposed to be launched in April, 2017 and is meant for merchants to receive digital payments from customers over the counter through Aadhaar authentication.

Q.2. Urban Co-operative banks are governed by?

[A] State Governments
[C] Both a and b
[D] Central Government

Answer: C [Both a and b]

Q.3. What is the contribution of seafood to agricultural exports?

[A] 20%
[B] 10%
[C] 30%
[D] 15%

Answer: A [20%]

Fish and fish products have presently emerged as the largest group in agricultural exports from India, with 13.77 lakh tonnes in terms of quantity and Rs. 45,106.89 crore in value. This accounts for around 10% of the total exports and nearly 20% of the agricultural exports.

Q.4.What is the fund created to support India-Russia joint R&D collaboration?

[A] 30 crores
[B] 15 crores
[C] 45 crores
[D] 5 crores

Answer: B [15 crores]

The DST launches INR 15 Crore fund to support India-Russia collaboration, joint R&D and cross-country technology adaptation.

Q.5.Which among the following region has the highest density of rail network?

[A] Eastern Asia
[B] Western Europe
[C] South east Asia
[D] North America

Answer: B [Western Europe]

Railways are the major carriers of passenger and freight traffic in countries having a developed rail network. At the global level, the most important regions with a high density of railroad network include Western Europe, eastern parts of US, Russia, Japan, China, India and southern parts of Africa.
Western European region has the highest density of rail network.

Q.6. Planning Commission of India was established by which among the following means?

[A] Act of Parliament
[B] Presidential Order
[C] Presidential Ordinance
[D] Cabinet Resolution

Answer: D [Cabinet Resolution]

The Planning Commission was set up by a Cabinet Resolution of the Government of India in March 1950. Jawaharlal Nehru was the first Chairman of the Planning Commission. It had the responsibility to formulate plans to utilize the available resources.

Q.7. In context with debentures, consider the following statements:

  1. A Debenture represents a debt
  2. The income incurred by debenture is generally the interest income
  3. Debenture is generally secured by assets

Which among the above statements is / are correct?

[A] Only 1 is correct
[B] Only 1 & 2 are correct
[C] 1, 2 & 3 are correct
[D] 1 & 3 are correct

Answer: C [ 1, 2 & 3 are correct ]

Debentures are instrument issued by companies to raise debt capital. As an investor, you lend you money to the company, in return for its promise to pay you interest at a fixed rate (usually payable half yearly on specific dates) and to repay the loan amount on a specified maturity date say after 5/7/10 years (redemption). Normally specific asset(s) of the company are held (secured) in favour of debenture holders. This can be liquidated, if the company is unable to pay the interest or principal amount.

Q.8. Which state has the highest dependence of Fuelwood on forests?

[A] Madhya Pradesh
[B] Maharashtra
[C] Bihar
[D] Jarkhand

Answer: B [Maharashtra]

In India dependence of fuelwood on forests is the highest in the State of Maharashtra.

Q.9. When was Software technology parks established in India?

[A] 1999
[B] 1991
[C] 1995
[D] 2000

Answer: B [1991]

The software technology parks was established as a society in 1991 by MEITY. It is to boost exports of IT industry of India.

Q.10. What is the share of Information Technology in the R&D spending of India?

[A] 9.4%
[B] 10.3%
[C] 15.4%
[D] 8.7%

Answer: D [8.7%]

In industrial R&D, Drugs and Pharmaceuticals occupied the first place with a share of 24.3% followed by Transportation 16.4%, information Technology 8.7%, Chemical (other than fertilizer) 7.2% and Defence Industries 6.8% respectively

Q.11. In September 1999, which organization established the Poverty Reduction and Growth Facility (PRGF) to make the objectives of poverty reduction and growth more central to lending operations in its poorest member countries?

[A] Asian Development Bank
[B] International Monetary Fund
[C] World Bank
[D] US Federal Bank

Answer: B [International Monetary Fund]

The Poverty Reduction and Growth Facility (PRGF) was set up by the International Monetary Fund in September 1999. Its objective was to formulate policies focusing on growth and poverty reduction.

Q.12. What facilities are provided by the Payment Banks?

  1. Fixed Deposits
  2. Debit Cards
  3. Credit Cards
  4. Loans

Select the correct option from the codes given below:

[A] Only 1 & 2
[B] Only 2 & 3
[C] Only 2 & 4
[D] Only 2

Answer: D [ Only 2 ]

Payment Banks: Scope of activities Payment banks can accept demand deposits. This implies that customers can open savings accounts as well as current accounts; but NO time deposits (such as FDs).

  1. An account balance cannot exceed Rs. 1 Lakh for an individual customer.
  2. Payment Banks can issue ATM/debit cards but not credit cards.
  3. Payment Banks can NOT give loans.
  4. Payments and remittance services through various channels.
    A payment bank can become Banking Correspondent of another bank and offer all products / services which a BC can offer. Payment Banks can distribute non-risk sharing financial products like mutual fund units and insurance products, etc. The revenue of these banks would come mainly from the transaction fees.

Q.13. Which is the largest tobacco-producing state in India?

[A] Tamil Nadu
[B] Karnataka
[C] Andhra Pradesh
[D] Madhya Pradesh

Answer: C [Andhra Pradesh]

The top Tobacco producing states are Andhra Pradesh (45%), Karnataka (26%), Gujarat (14%), Uttar Pradesh (5%), Tamil Nadu (2%), Bihar (2%) and West Bengal (1%).

Q.14. What is the teledensity of the telecommunication system in India?

[A] 87.45%
[B] 79.86%
[C] 80.43%
[D] 75.45%

Answer: A [87.45%]

India is also the world’s second-largest telecommunications market. It’s total telephone subscriber base and teledensity reached 1,177.02 million and 87.45 percent by the end of January 2020.

Q.15. How many times in a year does RBI release Monetary policy?

[A] 3
[B] 6
[C] 4
[D] 2

Answer: B [6]

RBI releases monetary policy once in 2 months. So the Monetary policy is a bi-monthly policy so it is released 6 times in a year.

Q.16. In which year Lead Bank Scheme was introduced?

[A] 1955
[B] 1960
[C] 1965
[D] 1969

Answer: D [1969]

Q.17. Which among the following shows a correct descending order of liquidity in M1, M2 and M3?

[A] M1 > M2 > M3
[B] M2 > M1 >M3
[C] M3 > M2 > M1
[D] M1 > M3 > M2

Answer: A [ M1 > M2 > M3 ]

Kindly remember that M1 is most liquid. M2, M3 and M4 keep on degrading in liquidity terms.

Q.18. Which of the following breed of cow is produce the highest amount of Milk?

[A] Gir
[B] Haryani
[C] Saahiwal
[D] None of the above

Answer: B [Haryani]

Haryani is the largest milk-producing cow. Indian milk production increased after the milk revolution.

Q.19. What is the total FDI received by India in the last 2 decades?

[A] USD 37.27 billion
[B] USD 137.27 billion
[C] USD 27.12 billion
[D] USD 79.71 billion

Answer: A [USD 37.27 billion]

FDI inflow into the telecom sector during the last 2 decades i.e April 2000 – March 2020 totalled US$ 37.27 billion. This is according to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT).

Q.20. Which among the following is known as policy rate?

[A] Repo rate
[B] Reverse repo rate
[C] Bank rate

Answer: A [Repo rate]

The repo rate is known as the policy rate. It is used to signal the financial system to adjust its lending and borrowing operations.

Q.21. What is the minimum maturity on Certificates of Deposit in India?

[A] 7 days
[B] 10 days
[C] 15 days
[D] 30 days

Answer: A [7 days]

CDs issued by banks should not have the maturity less than seven days and not more than one year. Financial Institutions are allowed to issue CDs for a period between 1 year and up to 3 year

Q.22. Consider the following statements about the Rashtriya Arogya Nidhi Scheme:

  1. The scheme provides for financial assistance in the form of “one time grant” to patients living below poverty line and suffering from life-threatening diseases
  2. Under the scheme, the assistance for treatment is available only in Government Hospitals.

Which of the above statements is/are correct?

[A] 1 Only
[B] 2 Only
[C] Both 1 & 2
[D] Neither 1 nor 2

Answer: C [Both 1 & 2]

First statement is correct. The Rashtriya Arogya Nidhi Scheme aims to provide financial assistance to patients living below poverty line and suffering from the life-threatening diseases. The scheme provides financial assistance in the form of grant-in-aid. Second statement is correct. The assistance for treatment is available only in Government hospitals. Central Government & State Government employees are not eligible for the scheme.

Q.23. Which of the following are the components of the Blue Revolution in India?

  1. National Fisheries Development Board (NFDB) and its activities
  2. Strengthening of Database & Geographical Information System of the Fisheries Sector
  3. Development of Inland Fisheries and Aquaculture

Choose the correct option from the codes given below:

[A] 1,2 and 3
[B] 2 and 3
[C] 1 and 3
[D] None of the above

Answer: A [1,2 and 3]

The Blue revolution was launched in 1895-90. The following are the components:

  1. National Fisheries Development Board (NFDB) and its activities
  2. Strengthening of Database & Geographical Information System of the Fisheries Sector
  3. Development of Inland Fisheries and Aquaculture
  4. National Scheme of Welfare of Fishermen
  5. Development of Marine Fisheries, Infrastructure and Post-Harvest Operations
  6. Monitoring, Control and Surveillance (MCS) and other need-based Interventions
  7. Institutional Arrangement for the Fisheries Sector

Q.24. Which among the following factor/factors affect the amount of freight carried by railways?

  1. Length of the route
  2. Availability of inland waterways.
  3. Length of rail route

Select the correct code from the options given below:

[A] Only 1
[B] Only 1 & 3
[C] Only 2 & 3
[D] 1, 2 & 3

Answer: D [1, 2 & 3]

The amount of freight carried by railways is a function not only of the route length of railways but also a number of other factors such as the availability of inland waterways and the length of rail routes. In countries having facilities of inland
waterways, more freight tends to be carried by waterways than railways.

Q.25. What is Rationing of credit?

[A] Limits loans to customers
[B] Limits loans given to a sector
[C] Limits loans to banks by RBI
[D] None

Answer: B [Limits loans given to a sector]

Rationing of credit is limiting of credit given to different sectors by RBI. This is to ensure all the sectors get enough credit.

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