MCQOPTIONS
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MCQOPTIONS
This section includes 121 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 International Development Association, a lending agency is administered by the |
| A. | IBRD |
| B. | IFAD |
| C. | UNDP |
| D. | UNIDO |
| Answer» B. IFAD | |
| 2. |
WTO came into existence at the conclusion of which round of GATT? |
| A. | Singapore |
| B. | Uruguay |
| C. | Tokyo |
| D. | Marrakesh |
| Answer» E. | |
| 3. |
World Investment Report is published by which of the following? |
| A. | WEF |
| B. | WTO |
| C. | GATT |
| D. | UNCTAD |
| Answer» E. | |
| 4. |
Which of the following group of countries has formed the NAMA - 11 of World Trade Organization? |
| A. | developed countries |
| B. | least developing countries |
| C. | developing countries |
| D. | None of above |
| Answer» D. None of above | |
| 5. |
In which one of these countries do less than 10% say national economic conditions are good ? |
| A. | Malaysia |
| B. | Greece |
| C. | Bolivia |
| D. | Australia |
| Answer» C. Bolivia | |
| 6. |
The largest tax collected at the federal government level is the : |
| A. | income tax |
| B. | sales tax |
| C. | property tax |
| D. | Social security tax |
| Answer» B. sales tax | |
| 7. |
What is happening with the import of Chinese toys in India? |
| A. | Indian toys are selling more |
| B. | Indian consumers are buying less |
| C. | Indian consumers are getting more choice at cheaper rates |
| D. | Chinese consumers are falling short of choice |
| Answer» D. Chinese consumers are falling short of choice | |
| 8. |
The reason in difference between GNP and GDP is |
| A. | Gross Foreign Investment |
| B. | Net Foreign Investment |
| C. | Net Exports |
| D. | Net Factor Income from abroad |
| Answer» E. | |
| 9. |
Special drawing rights are not |
| A. | a credit line allocated by the IMF to member countries according to each country's quot(a) |
| B. | backed by US dollars. |
| C. | the IMF's unit of account. |
| D. | a basket of four currencies. |
| Answer» C. the IMF's unit of account. | |
| 10. |
In which year was the new currency Euro introduced? |
| A. | 1983 |
| B. | 2001 |
| C. | 1999 |
| D. | 1995 |
| Answer» D. 1995 | |
| 11. |
Which one of the following curves is a graphical representation of the relationship between unemployment and the job vacancy rate ? |
| A. | Philips curve |
| B. | Laffer,s curve |
| C. | Beveridge curve |
| D. | Friedman,s curve |
| Answer» D. Friedman,s curve | |
| 12. |
Which one among the following is the total amount of money available in an economy at a specific time ? |
| A. | Near money |
| B. | Narrow money |
| C. | Money volume |
| D. | Money stock |
| Answer» E. | |
| 13. |
Which one of the following is the recognized lender of the External Commercial Borrowings in the international Capital Market ? |
| A. | Export Credit Agencies |
| B. | Asian Development Bank |
| C. | IFC |
| D. | All of the above |
| Answer» E. | |
| 14. |
Which one of the following areas is the main aim of ASIDE scheme started by Indian Government ? |
| A. | To facilitate the import in the country |
| B. | To encourage the export |
| C. | To facilitate the movement of expatriates |
| D. | None of the above |
| Answer» C. To facilitate the movement of expatriates | |
| 15. |
Special Drawing Rights (SDRs) is available at |
| A. | IBRD |
| B. | IMF |
| C. | IDA |
| D. | OECD |
| Answer» C. IDA | |
| 16. |
Which one of the following countries of the world has signed the first Comprehensive Economic Partnership Agreement with India ? |
| A. | Sri Lanka |
| B. | Malaysia |
| C. | Mauritius |
| D. | Singapore |
| Answer» B. Malaysia | |
| 17. |
The standard of living in a country is represented by its |
| A. | Poverty ratio |
| B. | Per capita income |
| C. | National income |
| D. | Unemployment rate |
| Answer» C. National income | |
| 18. |
Which one of the following is related with the Atkinson,s index of an economy ? |
| A. | A method to determine the income ineqality |
| B. | An effect of supply demand mismatch |
| C. | A method to determine the unemployment |
| D. | None of these |
| Answer» B. An effect of supply demand mismatch | |
| 19. |
Which sister organisation of the World Bank provides long term loans at zero interest to poorest developing countries ? |
| A. | Asian Development Bank |
| B. | IMF |
| C. | International Development Association |
| D. | International Finance Corporation |
| Answer» D. International Finance Corporation | |
| 20. |
Foreign currency which has a tendency of quick migration is called |
| A. | Hot currency |
| B. | Soft currency |
| C. | Gold currency |
| D. | Scarce currency |
| Answer» B. Soft currency | |
| 21. |
Which one of the following is the proposed currency of the Gulf Cooperation Council (GCC) ? |
| A. | Khaleeji |
| B. | Sucre |
| C. | Minar |
| D. | None of these |
| Answer» B. Sucre | |
| 22. |
'Global Competitiveness Report' is released by which of the following organisation ? |
| A. | WTO |
| B. | EU |
| C. | World Bank |
| D. | WEF |
| Answer» E. | |
| 23. |
TRIPS (Trade Related Aspects of Intellectual Property Rights) agreement is administered by |
| A. | UNCTD |
| B. | UNO |
| C. | WTO |
| D. | World Bank |
| Answer» D. World Bank | |
| 24. |
Which one of the following institutions publishes the report of 'World Economic Outlook' ? |
| A. | IMF |
| B. | World Bank |
| C. | RBI |
| D. | UNCTAD |
| Answer» B. World Bank | |
| 25. |
Which one of the following factors is taken into account to calculate the Balance of Payments (BOP) of a country ? |
| A. | Current Account |
| B. | Changes in the Foreign Exchange Reserves |
| C. | Errors and Omissions |
| D. | All of the above |
| Answer» E. | |
| 26. |
Which one of the following causes the condition in which prices increase rapidly as a currency loses its value ? |
| A. | Stagflation |
| B. | Conflation |
| C. | Stealth inflation |
| D. | Hyper inflation |
| Answer» E. | |
| 27. |
Which one of the following is the correct sequence of the countries having Foreign Exchange Reserve from high to low ? |
| A. | China - Russia - India - France |
| B. | China - France - India - Russia |
| C. | France - China - Russia - India |
| D. | France - China - India - Russia |
| Answer» B. China - France - India - Russia | |
| 28. |
The representation of the relationship between possible rates of taxation and the resulting levels of government revenue is called |
| A. | Laffer Curve |
| B. | Griffin curve |
| C. | Philips curve |
| D. | Gini's curve |
| Answer» B. Griffin curve | |
| 29. |
Which one of the following is the act of stimulating the economy by increasing the money supply or by reducing taxes ? |
| A. | Disinflation |
| B. | Reflation |
| C. | Inertial inflation |
| D. | Inflation hedge |
| Answer» C. Inertial inflation | |
| 30. |
Which of the following organisations is related with Doha Development Agenda? |
| A. | IMF |
| B. | WTO |
| C. | World Bank |
| D. | UNO |
| Answer» C. World Bank | |
| 31. |
In which one of the following Five Year Plans, was the EXIM bank establish in India ? |
| A. | Second Five Year Plan |
| B. | Third Five Year Plan |
| C. | Sixth Five Year Plan |
| D. | Seventh Five Year Plan |
| Answer» D. Seventh Five Year Plan | |
| 32. |
Which of the following sectors of the Indian Economy is prohibited from Foreign Direct Investments (FDIs) ? |
| A. | Retail Trading |
| B. | Lottery Business |
| C. | Gambling and Betting |
| D. | All of the above |
| Answer» E. | |
| 33. |
Which one of the following countries has the highest percentage of the services sector in the GDP of the country ? |
| A. | United States |
| B. | France |
| C. | United Kingdom |
| D. | Spain |
| Answer» B. France | |
| 34. |
Which of the following statements is true about supply-side economics? |
| A. | The main change made by the tax laws of 1981 and 1986 was to increase marginal tax rates in order to balance the budget |
| B. | The Laffer Curve says that, if marginal tax rates fall, tax revenues will rise, and the budget deficit will decrease |
| C. | If the tax laws of 1981 and 1986 had had their intended effect, consumption would have risen, causing an increase in both real GDP and in the price level |
| D. | All of these |
| Answer» C. If the tax laws of 1981 and 1986 had had their intended effect, consumption would have risen, causing an increase in both real GDP and in the price level | |
| 35. |
In which of the following countries was a National Exchange Control Administration (CADIVI) set up to approve all legal purchases of foreign currency? |
| A. | Brazil |
| B. | Spain |
| C. | Venezuela |
| D. | Mexico |
| Answer» D. Mexico | |
| 36. |
Multilateral Investment Guarantee Agency (MIGA) is a part of the- |
| A. | United Nations |
| B. | World Economic Forum |
| C. | World Trade Organisation |
| D. | World Bank |
| Answer» E. | |
| 37. |
What percentage of currency devaluation was allowed by the IMF in the Bretton Woods Agreement? |
| A. | 10% |
| B. | 7% |
| C. | 20% |
| D. | 15% |
| Answer» B. 7% | |
| 38. |
Gilt-edged market means |
| A. | Market of government securities |
| B. | Bullion market |
| C. | Market dealing with metals |
| D. | Market dealing with exports |
| Answer» B. Bullion market | |
| 39. |
The value of gold is determined in |
| A. | London |
| B. | Dubai |
| C. | Rome |
| D. | Teheran |
| Answer» B. Dubai | |
| 40. |
Which of the following would cause consumption to rise ? |
| A. | the GDP Deflator rises |
| B. | a greater proportion of the population is between age 20 and 30 |
| C. | transitory income increases |
| D. | income is taken from poor people and given to rich people |
| Answer» C. transitory income increases | |
| 41. |
Which of the following is an example of "portfolio investment"? |
| A. | An American places funds in a savings account in Canada |
| B. | Tokyo Bank of Japan buys Union Bank of the United States |
| C. | Saturn Corp. (owned by General Motors) builds a new factory in Tennessee |
| D. | An American puts $10,000 into a money market fund |
| Answer» B. Tokyo Bank of Japan buys Union Bank of the United States | |
| 42. |
According to the monetarists, in the long-run, the Phillips Curve is : |
| A. | vertical |
| B. | horizontal |
| C. | downward sloping |
| D. | upward sloping |
| Answer» B. horizontal | |
| 43. |
Which of the following credit rating agencies is the 'Big Three Credit rating agencies' of the world ? |
| A. | Fitch Group |
| B. | Moody's Corporation |
| C. | Standard and Poor's |
| D. | All of the above |
| Answer» E. | |
| 44. |
In which on of the following places was the Asia's first Export Processing Zone (EPZ) set-up? |
| A. | Santa Cruz |
| B. | Kandla |
| C. | Cochin |
| D. | Surat |
| Answer» C. Cochin | |
| 45. |
The capital of IMF is generated by contribution of the |
| A. | Credit |
| B. | Deficit financing |
| C. | Member nations |
| D. | Borrowings |
| Answer» D. Borrowings | |
| 46. |
Which one of the following International institutions has offered the concessional loans and grants to the world's poorest developing countries ? |
| A. | IFC |
| B. | IDA |
| C. | IMF |
| D. | WB |
| Answer» C. IMF | |
| 47. |
Which one of the following major markets has the highest share of composition of exports of ores and minerals in the world? |
| A. | United States |
| B. | India |
| C. | Brazil |
| D. | China |
| Answer» E. | |
| 48. |
Which country started privatisation of state-owned enterprises as a major state policy? |
| A. | UK under Margaret Thatcher |
| B. | Russia in CIS |
| C. | Mexico, Argentina and Brazil |
| D. | Italy, France and Malaysia |
| Answer» B. Russia in CIS | |
| 49. |
Which one of the following is the final session of the General Agreement on Tariff-and Trade (GATT) ? |
| A. | Singapore session |
| B. | Geneva session |
| C. | Washington session |
| D. | Uruguay session |
| Answer» E. | |
| 50. |
Token privatisation or deficit privatisation of public sector units occurs when the government sells |
| A. | 5% of shares |
| B. | 10% of shares |
| C. | 49% of shares |
| D. | 51% of shares |
| Answer» B. 10% of shares | |