300+ TOP MCQs on Indian Economy and Answers

MCQs on Indian Economy: Below are the list of Commerce MCQs and Answers as per the new syllabus. Indian Economy Objective Questions. Understand the concept clearly by consistently practicing the Multiple Choice Questions and score well in your exams.

MCQs on Indian Economy :

1. What option does the central government does not include in development expenditure?
(A) Grant to States
(B) Expenditure on Social and Community Services
(C) Expenditure on Economic Services
(D) Defence Expenditure

Answer

Answer: (D)

2. Depreciation is defined as
(A) destruction of a plant in a fire accident
(B) loss of equipment over time due to wear and tear
(C) closure of a plant due to labour trouble
(D) closure of a plant due to lockout

Answer

Answer: (B)

3. In general, deficit financing can create inflation, but it can be checked if.
(A) Government expenditure increases the aggregate supply in the aggregate demand ratio
(B) All the investment is indicated as payment on national debt only
(C) Only aggregate demand is increased
(D) All of the above

Answer

Answer: (D)

4. On July 12, 1982, The ARDC collaborated with
(A) NABARD
(B) EXIM Bank
(C) RBI
(D) None of the above

Answer

Answer: (A)

5. What is the main cause of exports surplus?
(A) Country’s stringent import policy
(B) Developments in national and international markets
(C) Country’s exports promotion value
(D) None of the above

Answer

Answer: (B)

6. If RBI reduces the cash reserve ratio, the credit creation will
(A) No impact
(B) Decrease
(C) Increase
(D) None of the above

Answer

Answer: (C)

7. Which option is not mentioned in a firms balance sheet?
(A) Cash held at the bank
(B) Revenue from sales of the company’s products
(C) Total issued capital
(D) Value of stocks of raw materials held

Answer

Answer: (B)

8. The state financial corporation in the State bank of India gives assistance especially to
(A) Medium and Small-scale Industries
(B) Large-scale Industries
(C) Cottage Industry
(D) Agricultural Farms

Answer

Answer: (A)

9. The central co-operative banks are directly associated with
(A) Central Government
(B) Land Development Banks
(C) State Co-operative Banks
(D) Farmers

Answer

Answer: (C)

10. The first complete Indian Bank was established in the year.
(A) 1794
(B) 1894
(C) 1896
(D) 1902

Answer

Answer: (B)

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