MCQOPTIONS
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MCQOPTIONS
This section includes 205 Mcqs, each offering curated multiple-choice questions to sharpen your Indian Economy knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
The one rupee note bears the signature of the |
| A. | Secretary, Ministry of Finance |
| B. | Governor, RBI |
| C. | Finance Minister |
| D. | None of the above |
| Answer» B. Governor, RBI | |
| 2. |
The headquarter of RBI us situated at |
| A. | Delhi |
| B. | Kolkata |
| C. | Chennai |
| D. | Mumbai |
| Answer» E. | |
| 3. |
The major aim of devaluation is to |
| A. | Encourage exports |
| B. | Encourage imports |
| C. | Encourage both exports and imports |
| D. | Discourage both exports and imports |
| Answer» B. Encourage imports | |
| 4. |
Foreign investment in India are normally known as...... |
| A. | FDI |
| B. | CII |
| C. | SFI |
| D. | SME |
| Answer» B. CII | |
| 5. |
Which of the following is NOT a mode of foreign capital inflow to India? |
| A. | FDI |
| B. | FPI |
| C. | NRI Accounts |
| D. | All these are valid foreign capital inflow |
| Answer» E. | |
| 6. |
Earlier it was thought safe to allow each financial institution to carry out only one type of finance service. Butnow Banks are selling shares, Insurance companies can sell banking services. These new financial conglomerates are colloquially referred to as |
| A. | Multinationals |
| B. | Financial Supermarkets |
| C. | Market Regulators |
| D. | Brand Promoters |
| Answer» C. Market Regulators | |
| 7. |
The European Union has adopted which of the following as a common currency? |
| A. | Dollar |
| B. | dinar |
| C. | yen |
| D. | Euro |
| Answer» E. | |
| 8. |
During which Five year Plan the price level in Indian Economy should a decline? |
| A. | Plan I |
| B. | Plan II |
| C. | Plan IV |
| D. | Annual Plans |
| Answer» B. Plan II | |
| 9. |
The question of full capital account convertibility of Indian Money (Rupee) was examined by the committee knows as |
| A. | Vaghul Vommittee |
| B. | Rangrajan Committee |
| C. | Tarapore Committee II |
| D. | Hashim Committee |
| Answer» D. Hashim Committee | |
| 10. |
The RBI issues currency notes under the |
| A. | Fixed Fiduciary System |
| B. | maximum Fiduciary System |
| C. | Minimum Reserve System |
| D. | Proportional Reserve System |
| Answer» D. Proportional Reserve System | |
| 11. |
In calculation of index of wholesale prices which one of the following sector is assigned maximum weightage? |
| A. | Food articles |
| B. | Non-food articles |
| C. | Fuel, power, light and lubricants |
| D. | Manufactured products |
| Answer» B. Non-food articles | |
| 12. |
Which of the following is known as Plastic Money?1. Demand Draft2. Credit Card3. Debit Card |
| A. | Only 1 |
| B. | Only 2 |
| C. | Only 3 |
| D. | Both 2 and 3 |
| Answer» E. | |
| 13. |
Which of the following is NOT a part of India's Money Market? |
| A. | Bill markets |
| B. | Call Money Market |
| C. | Banks |
| D. | Indian Gold Council |
| Answer» E. | |
| 14. |
Devaluation of currency leads to |
| A. | expansion of export trade |
| B. | Contraction of import trade |
| C. | expansion of import substitution |
| D. | all of the above |
| Answer» E. | |
| 15. |
Bolivar is monetary unit of |
| A. | Venezuela |
| B. | Brazil |
| C. | Bolivia |
| D. | Belarus |
| Answer» B. Brazil | |
| 16. |
In the paralance of economy/commerce, what is 'Gittedged market'? |
| A. | Gold and silver market |
| B. | Industrial securities market |
| C. | Market of safe (such as Government) secrrities |
| D. | Market for software technology/service products |
| Answer» D. Market for software technology/service products | |
| 17. |
Which of the following is the currency of Dubai? |
| A. | Taka |
| B. | Dinar |
| C. | Dollar |
| D. | Dirham |
| Answer» E. | |
| 18. |
Sheqel is the currency of |
| A. | Israel |
| B. | Kenya |
| C. | Iran |
| D. | Iraq |
| Answer» B. Kenya | |
| 19. |
In which year the Indian rupee was devalued two times within a month? |
| A. | 1990 |
| B. | 1991 |
| C. | 1994 |
| D. | 1999 |
| Answer» C. 1994 | |
| 20. |
Expend the term LIBOR |
| A. | London Inter-Bank offered Rate |
| B. | London Inter-Bank Operational Rate |
| C. | London Inter-Bank offsite Rate |
| D. | London inter-Bank Onsite Rate |
| Answer» B. London Inter-Bank Operational Rate | |
| 21. |
Many a time we read a term in financial newspapers GDR. What is the full form of the same? |
| A. | Global Depository Receipts |
| B. | Glopal Domestic Ratio |
| C. | Gross Domestic Revenue |
| D. | Gross Depository Revenue |
| Answer» B. Glopal Domestic Ratio | |
| 22. |
Which of the following terms is NOT a financial term? |
| A. | Investment |
| B. | Core Banking Solution |
| C. | RTGS |
| D. | E1 Nino effect |
| Answer» E. | |
| 23. |
In a company the use of price sensitive corporate information by the company-people to make gains or cover losses is know as |
| A. | inside trading |
| B. | future trading |
| C. | foreign trading |
| D. | stock trading |
| Answer» B. future trading | |
| 24. |
The most popular measure of inflation in India is |
| A. | General price rise |
| B. | Wholesale price index |
| C. | Consumer price index |
| D. | Consumer price index for industrial workers |
| Answer» C. Consumer price index | |
| 25. |
Currency Swap is an instrument to manage |
| A. | currency risk |
| B. | interest rate risk |
| C. | currency and interest rate risk |
| D. | cash flows in different currencies |
| Answer» E. | |
| 26. |
The new series of Wholesale Price Index (WPI) released by the Government of India is with reference to the base prices of |
| A. | 1981-82 |
| B. | 1990-91 |
| C. | 1993-94 |
| D. | 1994-95 |
| Answer» D. 1994-95 | |
| 27. |
Which is the following is the regulator of the credit rating agencies in India? |
| A. | RBI |
| B. | SBI |
| C. | SIDBI |
| D. | SFBI |
| Answer» E. | |
| 28. |
New capital issue is placed in |
| A. | Primary Market |
| B. | Secondary Market |
| C. | Grey Market |
| D. | Black Market |
| Answer» B. Secondary Market | |
| 29. |
Which of the following organisations is known as the market regulator in India? |
| A. | SEBI |
| B. | IBA |
| C. | AMFI |
| D. | NSDL |
| Answer» B. IBA | |
| 30. |
Yen is the currency of.......... |
| A. | Chine |
| B. | Taiwan |
| C. | North Korea |
| D. | Japan |
| Answer» B. Taiwan | |
| 31. |
When the prices of commodities, goods and services start declining consistently, the phenomenon is known as |
| A. | Discount yield |
| B. | Deflation |
| C. | Negative growth |
| D. | Market capitalism |
| Answer» C. Negative growth | |
| 32. |
Under the miminum reserve system, the Reserve Bank of India as the sole authority of note issue is required to maintain assets worth not less than |
| A. | 85 crore of rupees |
| B. | 115 crore of rupees |
| C. | 200 crore of rupees |
| D. | 210 crore of rupees |
| Answer» C. 200 crore of rupees | |
| 33. |
In October 2009, a decision has been taken to shift the Wholesale Price Index base year from 1993-94 to |
| A. | 2001-2002 |
| B. | 2002-2003 |
| C. | 2003-2004 |
| D. | 2004-2005 |
| Answer» E. | |
| 34. |
Guilt-edged market means |
| A. | Bullion market |
| B. | market of Government securities |
| C. | market of guns |
| D. | market of pure metals |
| Answer» C. market of guns | |
| 35. |
Inflation is caused by |
| A. | Increase in supply of goods |
| B. | Increase in cash with the Government |
| C. | Decrease in money supply |
| D. | Increase in money supply |
| Answer» E. | |
| 36. |
Which of the following agencies recently laid down guidelines for foreign companies who wish to raise money from the Indian capital markets? |
| A. | RBI |
| B. | IRDA |
| C. | Registrar of Companies |
| D. | SEBI |
| Answer» E. | |
| 37. |
Who formulates the monetary policy India? |
| A. | SEBI |
| B. | RBI |
| C. | Finance Ministry |
| D. | Planning Commission |
| Answer» D. Planning Commission | |
| 38. |
The actual return of an investor is reduced sometimes as the prices of the commodities go up all of a sudden. In financial sector this type of phenomenon is known as |
| A. | Probability risk |
| B. | Market risk |
| C. | Inflation risk |
| D. | Credit risk |
| Answer» C. Inflation risk | |
| 39. |
Shilling is the currency of |
| A. | Kenya |
| B. | Sout Korea |
| C. | Israel |
| D. | Ghana |
| Answer» B. Sout Korea | |
| 40. |
What is the name given to the common currency of the European Union? |
| A. | Rupee |
| B. | Rouble |
| C. | Franc |
| D. | Euro |
| Answer» E. | |
| 41. |
Who has the sole right to issue paper currency in India? |
| A. | The Government of India |
| B. | The Finance Commission |
| C. | The Central Bank of India |
| D. | The Reserve Bank of India |
| Answer» E. | |
| 42. |
The stock market index of London Stock Market is referred as |
| A. | Sensex |
| B. | NIFTY |
| C. | Footsic (FTSE) |
| D. | Bullish |
| Answer» D. Bullish | |
| 43. |
Which of the following cannot be called a Debt Instrument as referred in financial transactions? |
| A. | Certificate of Deposits |
| B. | Bonds |
| C. | Stocks |
| D. | Commercial Papers |
| Answer» D. Commercial Papers | |
| 44. |
In India currency-notes issue system is based on |
| A. | Proportional Reserve System |
| B. | Minimum Reserve System |
| C. | Fixed Exchange Rate System |
| D. | Fully Convertibility System |
| Answer» C. Fixed Exchange Rate System | |
| 45. |
Which amongst the following currencies is the costliest? |
| A. | French Franc |
| B. | Swiss Franc |
| C. | Euro |
| D. | Pound Sterling |
| Answer» E. | |
| 46. |
At present Indian Rupee is |
| A. | Partially convertible on current account |
| B. | fully convertible on current account |
| C. | Partially convertible on capital account |
| D. | fully convertible on capital account |
| Answer» C. Partially convertible on capital account | |
| 47. |
Consider the following1. Market borrowings2. Treasury bills3. Special securities issued to RBIWhich of these is/are component(s) of internal debt? |
| A. | 1 only |
| B. | 1 and 2 |
| C. | 2 only |
| D. | 1, 2 and 3 |
| Answer» E. | |
| 48. |
In which of the following years India switched over to decimal currencies? |
| A. | 1955 |
| B. | 1956 |
| C. | 1957 |
| D. | 1960 |
| Answer» D. 1960 | |
| 49. |
Open market operation of RBI refer to |
| A. | trading of securities |
| B. | transaction of gold |
| C. | buying and selling of shares |
| D. | auctioning of foreign exchange |
| Answer» B. transaction of gold | |
| 50. |
Many a time we see a term in newspaper IPO. What is the full form of the same? |
| A. | Initial Public Offer |
| B. | Indian Public Offer |
| C. | Institutional Purchase Offer |
| D. | Industrial Punchase Offer |
| Answer» B. Indian Public Offer | |