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.
| 51. |
What was the Soudi Arabian currency called? |
| A. | Dirham |
| B. | Peso |
| C. | Dinar |
| D. | Riyal |
| Answer» E. | |
| 52. |
In India, one-rupee coins and notes and subsidiary coins are issued by |
| A. | The Reserve Bank of India |
| B. | The Central Government |
| C. | The State Bank of India |
| D. | The Unit Trust of India |
| Answer» C. The State Bank of India | |
| 53. |
Which of the following Mahatma Gandhi series of currency notes issued by RBI has 'ecology' depicted on it? |
| A. | 500/- |
| B. | 100/- |
| C. | 50/- |
| D. | 5/- |
| Answer» C. 50/- | |
| 54. |
The Government of India has replaced FERA by |
| A. | The Competition Act |
| B. | The FEMA |
| C. | The Monopolis Act |
| D. | The MRTP Act |
| Answer» C. The Monopolis Act | |
| 55. |
Which of the following Mahatma Gandhi series currency notes issued by the RBI has a drawing of the 'Parliament House' depicted on it? |
| A. | 500/- |
| B. | 100/- |
| C. | 50/- |
| D. | 10/- |
| Answer» D. 10/- | |
| 56. |
RBI does transact the business of which state government? |
| A. | Jammu and Kashmir |
| B. | Punjab |
| C. | Nagaland |
| D. | Assam |
| Answer» B. Punjab | |
| 57. |
From which year was the FEMA promulgated? |
| A. | 1999 |
| B. | 2000 |
| C. | 2002 |
| D. | 2003 |
| Answer» C. 2002 | |
| 58. |
Many a time we a term PPP in financial Newspapers. What is the full form of the PPP? |
| A. | Purchasing Power Parity |
| B. | Public Per capita Power |
| C. | Per capita Potential Purchases |
| D. | Present Purchasing Power |
| Answer» B. Public Per capita Power | |
| 59. |
The present Indian monetary system is based on |
| A. | Gold Reserve System |
| B. | Proportional Reserve System |
| C. | Convertible Currency System |
| D. | Minimum Reserve System |
| Answer» E. | |
| 60. |
When did the 'naya paisa' introduced with the decimal system of coinage, become 'paise'? |
| A. | April 1, 1957 |
| B. | October 2, 1961 |
| C. | June 1, 1964 |
| D. | April 1, 1965 |
| Answer» B. October 2, 1961 | |
| 61. |
Consider the following1. Currency with the public2. Demand deposits with banksWhich of these are included in Broad Money (M3) in India? |
| A. | 1 and 2 |
| B. | 1 and 3 |
| C. | 2 and 3 |
| D. | 1, 2 and 3 |
| Answer» E. | |
| 62. |
SEBI bans some companies for their role in 'F & O' scam, was the news in some major newspapers. What is the full form of 'F & O' ? |
| A. | Future & Options |
| B. | Future & Operation |
| C. | Free & Operational |
| D. | Fair & Optimum |
| Answer» B. Future & Operation | |
| 63. |
FDI refers to |
| A. | Fixed Deposit interest |
| B. | Fixed Deposit investment |
| C. | Foreign Direct Investment |
| D. | Future Derivative Investment |
| Answer» D. Future Derivative Investment | |
| 64. |
As we all know, Indian Money market is divided in three sectors, namely organised sector, unorganised sector and co-operative sectors, Call money market is the part of which of the following? |
| A. | Organised Sector |
| B. | Unorganised Sector |
| C. | Co-operative Sector |
| D. | Only 'a' & 'b' |
| Answer» B. Unorganised Sector | |
| 65. |
Which of the following organizations is known as Market Regulator in India? |
| A. | IBA |
| B. | SEBI |
| C. | AMFI |
| D. | NSDL |
| Answer» C. AMFI | |
| 66. |
Which is the first Indian Company to be listed on NASDAQ? |
| A. | Reliance |
| B. | TCS |
| C. | HCL |
| D. | Infosys |
| Answer» E. | |
| 67. |
During period of inflation, rates should |
| A. | increase |
| B. | decrease |
| C. | remain constant |
| D. | fluctuate |
| Answer» B. decrease | |
| 68. |
Inflation in India is measured on which of the following indexes/indicators? |
| A. | Cost of Living Index (CLI) |
| B. | Consumer Price Index (CPI) |
| C. | Gross Domestic Product (GDP) |
| D. | Wholesale Price Index (WPI) |
| Answer» E. | |
| 69. |
Many times we read a term 'ECB' in financial newspapers. What is the full form of ECB? |
| A. | External Commercial Borrowing |
| B. | External Credit and Business |
| C. | Essential Commercial Borrowing |
| D. | None of the above |
| Answer» B. External Credit and Business | |
| 70. |
When decimal method was introduced in the Indian Monetary System? |
| A. | 1950 |
| B. | 1954 |
| C. | 1957 |
| D. | 1960 |
| Answer» D. 1960 | |
| 71. |
If over a given period of time both prices and money income have been doubled, the real income will be |
| A. | doubled |
| B. | halved |
| C. | unchanged |
| D. | prices do not affect real income |
| Answer» D. prices do not affect real income | |
| 72. |
Consider the following statementsThe Indian rupee is fully convertible1. in respect of Current Accounts of Balance of Payment2. in respect of Capital Accounts of Balance of Payment3. into GoldWhich of these statements (s) is /are correct? |
| A. | 1 alone |
| B. | 3 alone |
| C. | 1 and 2 |
| D. | 1, 2 and 3 |
| Answer» B. 3 alone | |
| 73. |
Which one of the following statements is an appropriate description of deflation? |
| A. | It is a sudden fall in the value of a currency against other currencies. |
| B. | It is a persistent recession in both the financial and real sectors of economy |
| C. | It is a persistent fall in the general price level of goods and sevices |
| D. | It is a fall in the rate of inflation over a period of time |
| Answer» D. It is a fall in the rate of inflation over a period of time | |
| 74. |
Consider the following of the rupee may mean1. Its free float with other international currencies2. Its direct at any prescribed place inside and outside the country.3. It acts just like any other international currency.Which of these statements are correct? |
| A. | 1 and 2 |
| B. | 1 and 3 |
| C. | 2 and 3 |
| D. | 1, 2 and 3 |
| Answer» B. 1 and 3 | |
| 75. |
Consider the following statements and select the correct answer from the code given belowAssertion (A) : Devaluation of a currency may promote exportReason (R) : Price of the country's product in the international market may fall due to devaluation.Code |
| A. | Both (A) and (R) are true and R is the correct explanation of (A) |
| B. | Both (A) and (R) true but (R) is not a correct explanation of (A) |
| C. | (A) is true but (R) is false |
| D. | (A) is false but (R) is true |
| Answer» C. (A) is true but (R) is false | |
| 76. |
Money times we read a term 'Hot Money' in newspaper. What is/are the characteristics of Hot Money?1. The term is used for fresh currency notes issued by the RBI.2. It is the fund which flows in the market to take advantage of high interest rates.3. It is the fund which is thrown in the market to create in balance in the stock markets.Codes |
| A. | Only 1 |
| B. | Only 2 |
| C. | Only 3 |
| D. | All 1, 2 and 3 |
| Answer» C. Only 3 | |
| 77. |
Currency notes of 2 denomiantion and above are liabilities of |
| A. | Government of India |
| B. | Reserve Bank of India |
| C. | State Bank of India |
| D. | All of these |
| Answer» C. State Bank of India | |
| 78. |
Very often we read in newspapers/ magazines about 'Sovereign Wealth Funds' Which of the following is the correct description of the same? |
| A. | These are the funds or the reserves of a government or central ban of a country which are invested further to earn profitable returns |
| B. | These are the funds which were accumulated by some people over the years but were not put in active circulation as they retain them as Black Money for several Years |
| C. | The funds which are created to be used as relief funds or bailout packages are known as sovereign funds |
| D. | Both 'b' and 'c' |
| Answer» B. These are the funds which were accumulated by some people over the years but were not put in active circulation as they retain them as Black Money for several Years | |
| 79. |
The basis of determining dearness allowance (d.a.) to Government employees in India is |
| A. | National Income |
| B. | Consumer Price Index |
| C. | Standard for living |
| D. | Per Capita Income |
| Answer» C. Standard for living | |
| 80. |
'Euro' is the official currency of |
| A. | all the States of Europe |
| B. | all the States of the European Union |
| C. | only 12 of the States of the European Union |
| D. | only 10 of the States of the European Union |
| Answer» C. only 12 of the States of the European Union | |
| 81. |
Lot of discussion is going on these days on the issue of 'Participatory Notes' (P Notes) used in financial sector/money market. What is a Participatory Note? |
| A. | It is an offshore derivative instrument used by overseas buyers/investors who shares of Indian companies listed in Indian Stock Exchange amonymously |
| B. | It is nothing but another name of the banking operation by which banks exchange Indian Rupees into US Dollars without depositing a single rupee in the account of the part who are NRIs. The entire Operation is carried out by the banks solely on the basis o |
| C. | It is nothing but a type of undertaking given to the banks that they should continue investing money in stock markets on behalf of NRIs and in case the market crashes NRIs will make the losses good without delay |
| D. | All the above |
| Answer» B. It is nothing but another name of the banking operation by which banks exchange Indian Rupees into US Dollars without depositing a single rupee in the account of the part who are NRIs. The entire Operation is carried out by the banks solely on the basis o | |
| 82. |
Currency note in India are printed and supplied by the |
| A. | Sacurity Press, Nashik |
| B. | Reserve Bank of India, New Delhi |
| C. | Security Press, Mumbai |
| D. | Security Press, Noida |
| Answer» C. Security Press, Mumbai | |
| 83. |
Long term funds in the capital market can be raised either by borrowing from certain institutions or through |
| A. | issue of note |
| B. | taking loan from Government |
| C. | Issue of securities |
| D. | taking loan from foreign institutions |
| Answer» D. taking loan from foreign institutions | |
| 84. |
Debenture holders of a company are its |
| A. | shareholders |
| B. | creditors |
| C. | debators |
| D. | directors |
| Answer» C. debators | |
| 85. |
Devaluation of Rupee was last time made on |
| A. | July, 1991 |
| B. | July, 1993 |
| C. | July, 1997 |
| D. | July, 2001 |
| Answer» B. July, 1993 | |
| 86. |
Dinar is the currency of which of the following countries? |
| A. | Sudan |
| B. | Myanmar |
| C. | Afganistan |
| D. | Iraq |
| Answer» E. | |
| 87. |
Which of the following is NOT a speculator in the Stock Exchange? |
| A. | Bull |
| B. | Bear |
| C. | Broker |
| D. | Stag |
| Answer» E. | |
| 88. |
Money Laundering normally involves |
| A. | placement offunds |
| B. | layering of funds |
| C. | integaration of funds |
| D. | all of a, b and c |
| Answer» E. | |
| 89. |
Develuation usually causes the internal prices to |
| A. | Fall |
| B. | Rise |
| C. | Remain unchanged |
| D. | None of these |
| Answer» D. None of these | |
| 90. |
BSE Sensex is an index to measure ups and downs in the shrare market. The number of companies covered under the index are |
| A. | 30 |
| B. | 50 |
| C. | 100 |
| D. | 150 |
| Answer» B. 50 | |
| 91. |
Devaluation of rupee in India was first introduced in the year |
| A. | 1949 |
| B. | 1966 |
| C. | 1972 |
| D. | 1990 |
| Answer» B. 1966 | |
| 92. |
Microfinance is the provision of financial services to people of low-income groups. This included both the consumers and self-employed. The service/services rendered under micro-finance is/are1. Credit facilities2. Saving Facilities3. Insurance facilities4. Fund Transfer facilitiesSelect the correct answer using the codes given below the lists |
| A. | 1 only |
| B. | 1 and 4 only |
| C. | 2 and 3 only |
| D. | 1, 2, 3 and 4 |
| Answer» E. | |
| 93. |
Many is 'Future Trading'?1. It is nothing but a trade between any two stock exchange whee in it is decided to purchase the stocks of each other on fixed price throughout the year.2. It is an agreement between two parties to buy or sell an underlying asset in the future at a predetermined price.3. It is an agreement between stock exchanges that they will not trade the stocks of each other under any cirumstances in future or for a given period of time.Code |
| A. | Only 1 |
| B. | Only 2 |
| C. | Only 3 |
| D. | All 1, 2 and 3 |
| Answer» C. Only 3 | |
| 94. |
Paper currency first started in India in |
| A. | 1862 |
| B. | 1542 |
| C. | 1601 |
| D. | 1880 |
| Answer» C. 1601 | |
| 95. |
Hawala in India is prohibited under the provision of which of the following Acts |
| A. | Financial Action Task Force Acts |
| B. | Fiscal Responsibility and Budget Management Act |
| C. | Foreign Exchange Management Act |
| D. | Banking Regulation Act |
| Answer» D. Banking Regulation Act | |
| 96. |
The existence of a parallel economy or black money |
| A. | makes the economy more competitive |
| B. | makes the monetary policies less effective |
| C. | ensure a better distribution of income and wealth |
| D. | ensure increasing productive investment |
| Answer» C. ensure a better distribution of income and wealth | |
| 97. |
In the parlance of economy/commerce, what is 'Gild-edged market' ? |
| A. | Gold and Silver market |
| B. | Industrial securities market |
| C. | Market of safe securities |
| D. | Market of software technology products |
| Answer» D. Market of software technology products | |
| 98. |
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 | |
| 99. |
Money laundering normally involves |
| A. | placement of funds |
| B. | layering of funds |
| C. | integration of funds |
| D. | all the above |
| Answer» E. | |
| 100. |
High rates of interest in a low inflation region |
| A. | attract people to make an investment |
| B. | discourage people to make an inverstment |
| C. | create atmosphere for capital formation |
| D. | are not favourable for credit expansion |
| Answer» B. discourage people to make an inverstment | |