Indian Economy MCQs GK SSC UPSC RRB APSC Competitive Exam Set-2

Q.1. Progressive Taxation is most closely associated to the base which the tax proposals are generally developed is __?

[A] Expediency Theory
[B] Cost of service approach
[C] Ability to pay approach
[D] Concentration approach

Answer: C [Ability to pay approach]

Q.2. In which of the following cities Diesel Locomotive Works of the Indian Railways located?

[A] Varanasi
[B] Chennai
[C] Mumbai
[D] Jhansi

Answer: A [Varanasi]

The Diesel Locomotive Works (DLW) in Varanasi, India, is a production unit owned by Indian Railways, that manufactures diesel-electric locomotives and its spare parts. It is the largest diesel electric locomotive manufacturer in India. It is located on DLW to BHU road of the metropolitan city of Varanasi.

Q.3. What is India’s rank in the production of eggs?

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

Answer: C [3]

India is ranked 3 in egg production in the world. It produces about 3.8 billion Kg of unprocessed hen’s eggs annually. China and USA are top 2 eggs producers.

Q.4. Which government agency has received the maximum funding for research?


Answer: A [DRDO]

Amongst the 12 Central Government major scientific agencies, DRDO accounted for the maximum share of 31.6% of R&D expenditure followed by DOS (19.0%), ICAR (11.1%), DAE (10.8%), CSIR (9.5%) and DST (7.3%), DBT ( 3.7%) and ICMR (3.1%),MoES (2.3%), MEITY (0.8%), MoEFCC (0.5%), MNRE (0.1%).

Q.5. What is the minimum investment by an Angel Investor in Startups?

[A] 50 lakhs
[B] 1 crore
[C] 10 lakhs
[D] 2 crores

Answer: A [50 lakhs]

The minimum investment by an Angel Investment in startups is 50 lakhs to 5 crores. It is regulated by SEBI.

Q.6. Which among the following is the first Indian bank to commence operations in Singapore?

[A] State Bank of India
[B] Bank of India
[C] Indian Overseas Bank
[D] Indian Bank

Answer: C [Indian Overseas Bank]

Q.7. Which sector does Air India belong to?

[A] Public sector
[B] Private sector
[C] Organised sector
[D] Both 1 and 3

Answer: D [Both 1 and 3]

Air India is a Public sector undertaking owned by the government of India which provides Airway services to the people of the country. It comes under the Organised sector as it is a regulated and registered company.

Q.8. Which among the following is a task of Krishi Vignan Kendras?

  1. Assit farmers with agriculture loans
  2. On-farm testing of technology
  3. Capacity development of farmers
  4. Assist farmers with new technologies in agriculture

Choose the correct option from the choices given below:

[A] 1,2 and 3 only
[B] 2,3 and 4 only
[C] 3 and 4 only
[D] 1 and 3 only

Answer: B [2,3 and 4 only]

The Krishi Vignan Kendras main mandate is Technology Assessment and Demonstration for its Application and Capacity Development. The following are the activities:

  1. On-farm testing to assess the location specificity of agricultural technologies under various farming systems.
  2. Frontline demonstrations to establish production potential of technologies on the farmers’ fields
  3. Capacity development of farmers and extension personnel to update their knowledge and skills on modern agricultural technologies
  4. To work as Knowledge and Resource Centre of agricultural technologies for supporting initiatives of public, 5. private and voluntary sectors in improving the agricultural economy of the district.
  5. Provide farm advisories using ICT and other media means on varied subjects of interest to farmers.
    KVK would produce quality technological products (seed, planting material, bio-agents, livestock) and make it available to farmers, organize frontline extension activities, identify and document selected farm innovations and converge with ongoing schemes and programs within the mandate of KVK.

Q.9. What is the support received by the Educational sector in the total extramural R&D?

[A] 50%
[B] 70%
[C] 35%
[D] 48%

Answer: B [70%]

The academic sector received 70% of the total extramural R&D support. The women’s participation in extramural R&D support.

Q.10. From which year SEBI started to allow buyback shares in India?

[A] 1999
[B] 2000
[C] 1998
[D] 1995

Answer: C [1998]

The Sebi started to allow buyback shares in India from 1998. Buyback shares is the process of a company’s repurchase of stock it has issued at a price.

Q.11. As a wholly owned subsidiary of which of the following, the Small Industries Development Bank of India (SIDBI) was started in 1990?

[A] Industrial Investment bank of India Ltd
[B] Industrial Finance Corporation of India
[C] Industrial Development Bank of India
[D] Reserve Bank of India

Answer: C [Industrial Development Bank of India]

Q.12. Which sector comprises of the activities like exploitation of natural resources?

[A] Secondary
[B] Tertiary
[C] Primary
[D] Unorganised

Answer: C [Primary]

The exploitation of natural resources is part of the primary sector. The primary sector includes activities that are directly dependent on nature.

Q.13. When was National Manufacturing Competitiveness Council (NMCC) established?

[A] 2004
[B] 2005
[C] 2010
[D] 2008

Answer: A [2004]

The National Manufacturing Competitiveness Council (NMCC) was established in 2004. Its mandate was to provide a continuing forum for policy dialogue to energize and sustain the growth of manufacturing industry.

Q.14. What is the maximum time for which a loan is lent in Money Market?

[A] 6 months
[B] 14 days
[C] 1 year
[D] 1 month

Answer: C [1 year]

The maximum time for which a loan is lent in the money market is 1 year. Above 1 year it is called capital market.

Q.15. The RBI”s control the credit through which of the following means

[A] Open and Close
[B] Monetary and Fiscal
[C] Quantitive and Qualititive
[D] None

Answer: C [Quantitive and Qualititive]

RBI”s control the credit through Quantitive and Qualititive methods. The monetary and fiscal policies are the policies and not the means.

Q.16. Any banking company can undertake any business other than the banking business in accordance with the provisions contained in which among the following acts?

[A] Reserve Bank of India Act
[B] Negotiable Instruments Act
[C] Banking Regulation Act
[D] None of the above

Answer: C [Banking Regulation Act]

Q.17. Which sector was the most affected due to the de-industrialization of the British?

[A] Jute
[B] Textile
[C] Ship building
[D] Banking

Answer: B [Textile]

The textile industry was the most affected due to the de-industrialization of the British. The British followed the systematic destruction of the Indian Industries. Indian textiles were banned in European markets and Indian markets were flooded with machine-made goods which destroyed the Indian industry.

Q.18. What is the main objective of SFURTI scheme?

[A] Regeneration of traditional industries
[B] Promote electronics startups
[C] Promote Robotics
[D] None of the above

Answer: A [Regeneration of traditional industries]

Scheme of Fund for Regeneration of Traditional Industries(SFURTI) is a scheme of fund for Regeneration of traditional industries. It is for the promotion of MSME.

Q.19. How many types of T-Bills are issued by the government of India?

[A] 2
[B] 3
[C] 4
[D] 5

Answer: B [3]

The government of India issues 3 types of T-Bills. They are 91 day, 182 day and 364 day bills.

Q.20. Indian Institute of Technology, Kharagpur was established in which year?

[A] 1952
[B] 1951
[C] 1953
[D] 1954

Answer: B [1951]

Indian Institute of Technology Kharagpur is the first IIT to be established in India in 1951. It is one of the oldest technical institutes in West Bengal. Bidhan Chandra Roy insitsted Nehru Cabinet to establish the first IIT in West Bengal because of heavy population concentration in the state.

Q.21. Corporation tax:

[A] is levied and appropriated by the States
[B] is levied by the Union and collected and appropriated by the States
[C] is levied by the Union and shared by the Union and the States
[D] is levied by the Union and belongs to it exclusively

Answer: C [ is levied by the Union and shared by the Union and the States ]

Q.22. Which of the following is a reason for India to be a developing country?

[A] Most pople depend on agriculture
[B] No rapid Industrialization
[C] Scarce Capital
[D] Low per capita income

Answer: D [Low per capita income]

India is an agricultural country that is seeking to become more advanced economically and socially. India has achieved much in the last decades. But the per capita income growth rate is slow in our country as compared to developed countries, hence it is defined as a developing country.

Q.23. Which city is known as the Hub for petrochemical Industries?

[A] Mumbai
[B] Vishakhapatnam
[C] Jamnagar
[D] Hajira

Answer: A [Mumbai]

Mumbai is known as hub of the petrochemical industries. The units are also located in Auraiya (Uttar Pradesh), Jamnagar, Gandhinagar and Hajira (Gujarat), Nagothane, Ratnagiri (Maharashtra), Haldia (West Bengal) and Vishakhapatnam (Andhra Pradesh).

Q.24. What is the maximum term for certificate of deposit issued by a financial institution?

[A] 1 year
[B] 3 years
[C] 2 years
[D] None of the above

Answer: B [3 years]

The certificate of deposits are the short term money market instruments of Scheduled commercial banks and Financial Institutions. The Financial Institutions can issue the certificate of deposit for a minimum of 1 year and maximum of 3 years.

Q.25. National highway development project was started in which year?

[A] 1998
[B] 1999
[C] 2000
[D] 2001

Answer: A [1998]

The National highway development project was started in 1998. It was constructed with a cost of Rs 540 billion.

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