MCQOPTIONS
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MCQOPTIONS
This section includes 2956 Mcqs, each offering curated multiple-choice questions to sharpen your UPSC IAS Exam knowledge and support exam preparation. Choose a topic below to get started.
| 2201. |
Choose the type of capital market: 1. Securities Market 2. Financial institutions 3. Gill-edged market 4. Incorporated securities Which among the following code is correct? |
| A. | 1 and 4 |
| B. | 1 and 3 |
| C. | 1 and 2 |
| D. | 3 and 4 |
| Answer» D. 3 and 4 | |
| 2202. |
Consider the following in regards of types of loan: 1. Draft Loan 2. Term Loan 3. Cash credit 4. Overdraft Choose the one which is not a loan. |
| A. | 1 only |
| B. | 2 only |
| C. | 3 only |
| D. | 4 only |
| Answer» B. 2 only | |
| 2203. |
To know whether the rich are getting richer and the poor getting poorer, it is necessary to compare |
| A. | the wholesale price index over different periods of time for different regions |
| B. | the distribution of income of an identical set of income recipients in different period of time |
| C. | the distribution of income of different sets of income recipients at a point of time |
| D. | the availability of foodgrains among two sets of people, one rich and the other poor, over different period of time |
| Answer» C. the distribution of income of different sets of income recipients at a point of time | |
| 2204. |
What are the functions of RBI? 1. Issue of notes 2. Banker to the government 4. Controller of debit 5. Custodian of foreign reserves Choose the incorrect function of RBI. |
| A. | 1 only |
| B. | 2 only |
| C. | 3 only |
| D. | 4 only |
| Answer» D. 4 only | |
| 2205. |
Which among the following are the Nationalised Banks? 1. Bank of India 2. Punjab National Bank 3. Canara Bank 4. United Commercial Bank Choose the code. |
| A. | 1 and 2 |
| B. | 3 and 4 |
| C. | 1 and 4 |
| D. | 1, 2, 3, 4 |
| Answer» E. | |
| 2206. |
Certificate of Deposit (CD) and Commercial Paper were introduced by a Bank in March 1989: 1. Reserve Bank of India 2. State Bank of India 3. HDFC Bank 4. ICICI Bank Choose the name of the Bank. |
| A. | 1 only |
| B. | 2 only |
| C. | 3 only |
| D. | 4 only |
| Answer» B. 2 only | |
| 2207. |
Consider the following statement: 1. Ad hoc treasury bills are sold to the banks and public and are freely marketable. 2. Regular treasury bills are not sold to the banks and the general public, and are not marketable.Choose the correct code. |
| A. | 1 only |
| B. | 2 only |
| C. | 1 and 2 |
| D. | None of the Above |
| Answer» E. | |
| 2208. |
Which among the following is the type of organizer sector of Indian money market? 1. Call money market 2. Treasury Bill Market 3. Commercial Bill Market 4. Collateral loan market Choose the correct code. |
| A. | 1 and 2 |
| B. | 3 and 4 |
| C. | 1, 2, 3, 4 |
| D. | None of the Above |
| Answer» D. None of the Above | |
| 2209. |
What are the measures of checking deflation? 1. Increasing money supply 2. Promote credit creation by the banks. 3. Curtailment in taxes so as to increase the purchasing power of the people. Choose the correct measure. |
| A. | 1 only |
| B. | 2 only |
| C. | 3 only |
| D. | 1, 2, 3 |
| Answer» E. | |
| 2210. |
Which of the following was described as the biggest ever cash purchase of the shares of a bank in India? |
| A. | Purchase of Nedungadi Bank shares by Punjab National Bank |
| B. | Amalgamation of Global Trust Bank with Oriental Bank of Commerce |
| C. | Merger of Centurion Bank of Punjab with HDFC Bank |
| D. | Purchase of State Bank of India shares from RBI by the Central Government |
| Answer» E. | |
| 2211. |
The definition of Wholesale Price Index (WPI) is as follows: 1. The WPI is a weighted average of indices covering 676 commodities, which are traded in primary, 2. Manufacturing and fuel and power-sectors. 3. It is the retail price average of a basket of goods and services directly consumed by the people. Choose the correct definition. |
| A. | 1 only |
| B. | 2 only |
| C. | 1 and 2 |
| D. | None of the Above |
| Answer» B. 2 only | |
| 2212. |
What are the causes of inflation? 1. Increase in demand for goods & services 2. Decrease in the supply of goods & services 3. Decrease in demand for goods & services 4. Increase in the supply of goods & services Choose the correct code. |
| A. | 1 and 2 |
| B. | 3 and 4 |
| C. | 1 and 4 |
| D. | 2 and 3 |
| Answer» B. 3 and 4 | |
| 2213. |
Consider the following statement: 1. Increase in private expenditure 2. Increase in exports 3. Increase in taxation 4. Rapid growth of population Choose the factor that does not cause an increase in demand of goods and services. |
| A. | 1 only |
| B. | 2 only |
| C. | 3 only |
| D. | 4 only |
| Answer» D. 4 only | |
| 2214. |
How is the price level measured? 1. Wholesale Price Index 2. Consumer Price Index 3. Gross Domestic Product (GDP) Deflator 4. Business Price Index Choose the correct code. |
| A. | 1, 2, 3, 4 |
| B. | 1, 2, 3 |
| C. | 1, 2 |
| D. | 1 |
| Answer» C. 1, 2 | |
| 2215. |
What is the main cost-push factor in India? 1. Problem of hoarding by traders and black marketeers 2. Taxation which gives the traders an opportunity to raise the prices of goods, the proportion of which is often more than the levy of taxes 3. Administered Prices 4. Hike in Oil Prices Choose me correct code. |
| A. | 1, 2, 3 |
| B. | 1, 2, 3, 4 |
| C. | 1, 2 |
| D. | None of the Above |
| Answer» C. 1, 2 | |
| 2216. |
Which among the followings is the type of inflation? 1. Demand Pull Inflation 2. Cost Push Inflation 3. Stagflation 4. Hyperinflation Choose the correct type. |
| A. | 1, 2, 3, 4 |
| B. | 1, 2 |
| C. | 3, 4 |
| D. | 1, 4 |
| Answer» B. 1, 2 | |
| 2217. |
Consider the following statement: 1. Inflation is a decrease in price of goods 2. Inflation is caused by excess demand in economy 3. Inflation results from excessive increase in the money supply 4. Inflation effects all segments of the economyWhich among the following statement is/are incorrect? |
| A. | 1 only |
| B. | 2 only |
| C. | 3 only |
| D. | 4 only |
| Answer» B. 2 only | |
| 2218. |
The ___ is the total amount of monetary assets available in an economy at a specific time. 1. Money Supply 2. Money Stock 3. Money Demand 4. Stock in Demand Choose the correct answer from the above code: |
| A. | 1 and 2 |
| B. | 3 and 4 |
| C. | 1 and 3 |
| D. | 2 and 4 |
| Answer» B. 3 and 4 | |
| 2219. |
Consider the following statement regarding concept of money: 1. \[{{M}^{1}}\]Money with the Public (currency notes and coins) + Demand deposits of banks (on current and saving bank accounts) + Other demand deposits with RBI. It is highly liquid and banks will not be able to run their lending programmes on this basis. 2. \[{{M}^{2}}\]: \[{{M}^{1}}\]+ Saving bank deposits with Post-offices. 3. \[{{M}^{3}}\]: \[{{M}^{2}}\] + Term deposits with the bank. 4. \[{{M}^{4}}\]: \[{{M}^{3}}\] + All deposits of Post-offices. Which among the following is correct? |
| A. | 1, 2, 3, 4 |
| B. | 1, 2, 3 |
| C. | 1, 3, 4 |
| D. | 1, 2, 4 |
| Answer» E. | |
| 2220. |
When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen? |
| A. | India's GDP growth rate increases drastically |
| B. | Foreign Institutional Investors may bring more capital into our country |
| C. | Scheduled Commercial Banks may cut their lending rates |
| D. | It may drastically reduce the liquidity to the banking system |
| Answer» D. It may drastically reduce the liquidity to the banking system | |
| 2221. |
Which of the following grants/grant direct credit assistance to rural households? 1. Regional Rural Banks 2. National Bank for Agriculture and Rural Development 3. Land Development BanksSelect the correct answer using the codes given below. |
| A. | 1 and 2 only |
| B. | 2 only |
| C. | 1 and 3 only |
| D. | 1, 2 and 3 |
| Answer» D. 1, 2 and 3 | |
| 2222. |
The Reserve Bank of India regulates the commercial banks in matters of: 1. Liquidity of assets 2. Branch expansion 3. Merger of banks 4. Winding-up of banks Select the correct answer using the codes given below. |
| A. | 1 and 4 only |
| B. | 2, 3 and 4 only |
| C. | 1, 2 and 3 only |
| D. | 1, 2, 3 and 4 |
| Answer» E. | |
| 2223. |
In the context of Indian economy, consider the following pairs: Term Most Appropriate description 1. Melt down Fall in stock prices 2. Recession Fall in growth rate 3. Slow down Fall in GDP Which of the pairs given above is/are correctly matched? |
| A. | 1 only |
| B. | 2 and 3 |
| C. | 1 and 3 |
| D. | 1, 2 and 3 |
| Answer» D. 1, 2 and 3 | |
| 2224. |
With reference to inflation in India, which of the following statements is correct? |
| A. | Controlling the inflation in India is the responsibility of the Government of India only |
| B. | The Reserve Bank of India has no role in controlling the inflation |
| C. | Decreased money circulation helps in controlling the inflation |
| D. | Increased money circulation helps in controlling the inflation |
| Answer» D. Increased money circulation helps in controlling the inflation | |
| 2225. |
Consider the following statements in context with Treasury Bills:1. They are issued by Government of India on behalf of Reserve Bank of India2. They are mostly for Short term borrowings3. Treasury Bills cannot be purchased by any person resident of India Which among the above is / are correct? |
| A. | All are correct |
| B. | 2 & 3 are correct |
| C. | Only 2 is correct |
| D. | Only 3 is correct |
| Answer» D. Only 3 is correct | |
| 2226. |
Consider the following: 1. Change in the Reserve Requirements 2. Taxation 3. Government Spending Which among the above terms are closest to the Fiscal policy? |
| A. | Only 1 & 2 |
| B. | Only 2 & 3 |
| C. | Only 1 |
| D. | Only 1 & 3 |
| Answer» C. Only 1 | |
| 2227. |
Consider the following statements: 1. There is almost no speculation in the G sec market 2. The Investors in the G Sec Market are predominantly the institutions Which among the above statements is/are correct? |
| A. | Only 1 is correct |
| B. | Only 2 is correct |
| C. | Both 1 & 2 are correct |
| D. | Neither 1 nor 2 is correct |
| Answer» D. Neither 1 nor 2 is correct | |
| 2228. |
Indian Currency Printing Institutions are located in which of the following places? (1) Nasik (2) Hoshangabad (3) Hyderabad (4) Aurangabad (5) Devas Select the correct option: |
| A. | 1, 2 and 4 |
| B. | 1, 2, 3 and 4 |
| C. | 1, 2, 3 and 5 |
| D. | All of the above |
| Answer» D. All of the above | |
| 2229. |
Demand management to control inflation may lead to: |
| A. | increase in government expenditure |
| B. | increase in unemployment due to contraction of the economy |
| C. | expansion of credit |
| D. | creation of excess liquidity |
| Answer» C. expansion of credit | |
| 2230. |
What is government owned companies? I. They are primarily meant to provide essential services such as railways. II. They are public enterprises that came into existence by a Special Act of the Parliament. III. They are companies in which 51% or more of the paid up capital is held by the central or any state government (partly or wholly by both). IV. They are set up whenever it is felt that certain functions need to be discharged outside the governmental set up with some amount of independence and flexibility without day-to-day interference from the governmental machinery |
| A. | Only III |
| B. | I & III |
| C. | Only II |
| D. | None of the above |
| Answer» B. I & III | |
| 2231. |
What is Statutory Corporation? I. They are primarily meant to provide essential services such as railways. II. They are public enterprises that came into existenc by a Special Act of the Parliament. III. They are companies in which 51% or more of the paid up capital is held by the central or any state government (partly or wholly by both). IV. They are set up whenever it is felt that certain functions need to be discharged outside the governmental set up with some amount of independence and flexibility without day-to-day interference from the governmental machinery |
| A. | Only I |
| B. | I & III |
| C. | Only II |
| D. | None of the above |
| Answer» D. None of the above | |
| 2232. |
What is departmental undertaking? I. They are primarily meant to provide essential services such as railways. II. They are public enterprises that came into existence by a Special Act of the Parliament. III. They are companies in which 51% or more of the paid up capital is held by the central or any state government (partly or wholly by both). IV. They are set up whenever it is felt that certain functions need to be discharged outside the governmental set up with some amount of independence and flexibility without day-to-day interference from the governmental machinery |
| A. | Only I |
| B. | I & III |
| C. | Only III |
| D. | None of the above |
| Answer» B. I & III | |
| 2233. |
What are the categories of PSEs? I. Departmental undertakings II. Statutory corporations III. Government-owned companies IV. Autonomous bodies |
| A. | II & III |
| B. | II & IV |
| C. | All the above |
| D. | Only I |
| Answer» D. Only I | |
| 2234. |
Which statement is correct regarding iron and steel industry? I. Large scale iron and steel production was started in TISCO established at Jamshedpur. II. In 1919, Indian Iron and Steel Company (IISCO) was established at Burnpur. Both TISCO and IISCO are private sector companies. III. The first public sector company was ?Vishwashwaraiya Iron and Steel Works at Bhadravat?'. |
| A. | I & II |
| B. | Only II |
| C. | II & III |
| D. | All the above |
| Answer» E. | |
| 2235. |
Which statement is correct regarding cotton industry? I. The first Indian modernised cotton mill, located in Kolkata in 1818 II. The second mill named 'Bombay Spinning and Weaving Co. ?was established in 1854 at Bombay by KGN Dabber III. There were 394 cotton mills in India before the partition |
| A. | I & II |
| B. | II & III |
| C. | Only II |
| D. | All the above |
| Answer» E. | |
| 2236. |
Match the following according to the contribution of cotton industries in different sectors: Column I Column III.GDPa.13.5%II.Manufacturing Valueb.4%III.Export earningc.l4% |
| A. | I - b, II - c, Ill - a |
| B. | I - a, II - c, III - b |
| C. | I - b, II - a, III - c |
| D. | I - c, II - b, III - a |
| Answer» B. I - a, II - c, III - b | |
| 2237. |
Which statement is correct regarding village industries? I. The industries established in rural areas having population below 10,000 and having less than Rs. 15,000 as fixed capital investment per worker will be termed as village industries. II. KVIC and state village Industries Board provide economic and technical assistance in establishing and operating these industrial units. |
| A. | I & II |
| B. | Only I |
| C. | Only II |
| D. | None of the above |
| Answer» B. Only I | |
| 2238. |
Consider the statements: I. Small industrial units employ wage earning labour and production is done by the use of modern techniques. II. Capital investment is also present in small industries which among the above statement is correct regarding small industries? |
| A. | Only I |
| B. | Only II |
| C. | Both I & II |
| D. | None of the above |
| Answer» D. None of the above | |
| 2239. |
Which statement is correct regarding cottage industries? I. Cottage industry is run by family members on full or part time basis. II. It possesses negligible capital investment. III. The production is done by hands and no wage earning person is employed in cottage industry. |
| A. | I & II |
| B. | II & III |
| C. | Only II |
| D. | All the above |
| Answer» E. | |
| 2240. |
Match the following investment requirements under the Service Enterprises category: Column I Column II I.Micro Enterprise a.2 crores to upto 5 crores II.Small Enterprise b.10 lakh to upto 2 crores III.Medium Enterprise c.Upto 10 lakh |
| A. | I - c, II - b, III - a |
| B. | I - b, II - c, III - a |
| C. | I - c, II - a, III - b |
| D. | I - a, II - b, III - c |
| Answer» B. I - b, II - c, III - a | |
| 2241. |
Match the following investment requirements under the Manufacturing Enterprises category: Column I Column II I. Micro Enterprise 10 crores a. 5 crores to upto II. Small Enterprise crores b. 25 lakh to upto 5 III. Medium Enterprise c. Upto 25 lakh |
| A. | I - c, II - b, III - a |
| B. | I - b, II - c, III - a |
| C. | I - c, II - a, III - b |
| D. | I - a, II - b, III - c |
| Answer» B. I - b, II - c, III - a | |
| 2242. |
What were the policy measures taken under Industrial Policy 1991? I. Non-Resident Indians Scheme (NRIs are allowed to invest upto 100% equity on non-repatriation basis in all activities except for a small negative list). II. Electronic Hardware Technology Park (EHTP), Software Technology Park (STP) Scheme for building up strong electronic industry to enhance exports. III. Liberalised policy for Foreign Direct Investment (FDI). IV. Abolition of the MRTP limit. |
| A. | I & III |
| B. | III & IV |
| C. | Only II |
| D. | All the above |
| Answer» E. | |
| 2243. |
Industrial Policy 1991 mainly focuses on which points? I. Deregulating Indian industry. II. Allowing the industry freedom & flexibility in responding to market forces III. Providing a policy regime which facilitates and fosters growth of Indian industry. |
| A. | I & II |
| B. | II & III |
| C. | Only III |
| D. | All the above |
| Answer» E. | |
| 2244. |
Which among the below statements are correct regarding the Features of Industrial Policy 1991? I. To maintain a sustained growth in productivity. II. To enhance gainful employment. III. Liberalisation of Industrial Licensing Policy. IV. Introduction of Industrial Entrepreneur's Memorandum (i.e., no industrial approval is required for industries not requiring compulsory licensing). |
| A. | I & II |
| B. | I & III |
| C. | Only IV |
| D. | All the above |
| Answer» B. I & III | |
| 2245. |
Which statements are correct regarding Industrialization post 1990?I. Exemption from licensing was allowed for all Startups and for those with an investment worth Rs. 2.5 crores in fixed assets and a right to import up to 30% of the total value of plant and machinery.II. Foreign equity investment was allowed up to 70%.III. Geographical restrictions and investment cap for small industries were removed. |
| A. | I & II |
| B. | Only II |
| C. | I & III |
| D. | All the above |
| Answer» D. All the above | |
| 2246. |
Consider the following statements: I. The policy listed out the various Appendix 1 industries that could be started by large business houses so that small industries were not driven out of business. II. The establishment of small and medium industries was encouraged. III. Private industries were encouraged to set up production units in rural areas and in backward areas with a vision to give thrust for the economic development of those areas. Which statement is /are correct regarding Industrial Policy 1973: |
| A. | I & II |
| B. | II & III |
| C. | Only III |
| D. | All the above |
| Answer» E. | |
| 2247. |
Which statement is correct regarding FERA 1973? I. The Foreign Exchange and Regulation Act (FERA) was passed in 1980. II. This resulted in a tremendous shift in the foreign investment policy of the Government of India. III. Foreign Investment was allowed in only those industries that were directly into exports. |
| A. | I & II |
| B. | Only III |
| C. | II & III |
| D. | All the above |
| Answer» D. All the above | |
| 2248. |
Which statement is correct regarding Industrial Policy 1956? I. The policy of 1956, for the first time, recognized the contribution of small scale industries in the growth of the Indian economy. II. It laid stress on rational distribution of national income and effective utilization of resources. III. This policy is considered one of the most important industrial policies of India as it decided the nature and scope of the Indian economy till the reforms of 1991. |
| A. | I & II |
| B. | II & III |
| C. | All the above |
| D. | Only I |
| Answer» D. Only I | |
| 2249. |
Which statement is correct regarding joint venture?I. 15 industrial areas were put under this category.II. This category also carried the provision of compulsory licensing.III. This provision led to the establishment of the so-called 'Licence-Quota-Permit raj' in the economy. |
| A. | I & II |
| B. | II & III |
| C. | Only I |
| D. | All the above |
| Answer» C. Only I | |
| 2250. |
Match the following: Column I Column III. PSU?sa.Category CII.Joint Ventureb.Category AIII.Private Sectorc.Category B |
| A. | I - b, II - c, III - a |
| B. | I - a, II - c, III - b |
| C. | I - c, II - b, III - a |
| D. | I - b, II - a, III - c |
| Answer» B. I - a, II - c, III - b | |