Indian Economy Most Important MCQ

Q. Agriculture was exploited through _____ system of land revenue.

a. Ryotwari

b. Zamindari

c. Mahalwari

d. None of these

Answer:  Zamindari

Q. Who were declared as owners of the soil, under colonial exploitation of Indian agriculture sector?

a. Tillers

b. Zamindars

c. People of main government

d. None of these

Answer:  Zamindars

Q. Who got bare minimum for survival under colonial exploitation of Indian agriculture sector?

a. Tillers

b. Zamindars

c. Government

d. Public

Answer: Tillers

Q. Who spent their revenue income on the luxurious of life, under colonial exploitation of Indian agriculture sector?

a. Tillers

b. Zamindars

c. Government

d. Public

Answer:  Zamindars

Q. Before the destruction by the British government, Indians _____enjoyed a World Wide reputation for their variety and quality.

a. International trade

b. Handicrafts

c. Agriculture sector

d. Service sector

Answer:  Handicrafts

Q. Which economy shows little Or no growth in income?

a. Backward

b. Stagnant

c. Mixed

d. Capital

Answer:  Stagnant

Q. Which of the following economy has low per capita income?

a. Backward

b. Stagnant

c. Mixed

d. Semi – feudal

Answer:  Backward

Q. Which of the following are features of Indian economy?

a. Stagnant economy

b. Backward economy

c. Poor infrastructure

d. All of these

Answer:  All of these

Q. On the eve of independence, Indian economy was a _____ economy.

a. Feudal

b. Semi – feudal

c. Capitalist

d. None of these

Answer: Semi – feudal

Q. Who was the notable economist that estimated India’s national and per capita income?

a. Adam Smith

b. Milton Friedman

c. Joseph E. Stiglitz

d. William Digby

Answer: William Digby

Q. _____ farming is a form of farming in which the crops are produced to provide for the basic needs of the family.

a. Organic farming

b. Subsistence farming

c. Commercial farming

d. Nomadic farming

Answer:  Subsistence farming

Q. Farmers were forced for cultivation of _____ crops

a. Rice

b. Wheat

c. Indigo

d. Maize

Answer: Indigo

Q. In how many sectors is the occupational structure of India divided?

a. six

b. Two

c. Three

d. Four

Answer:  Three

Q. Service sector is also called _____

a. Tertiary

b. Primary

c. Secondary

d. Agriculture

Answer:  Tertiary

Q. The nature of the Indian economy on the eve of independence was

a. Stagnant

b. Backward

c. Underdeveloped

d. All of these

Answer: All of these

Q. The life expectancy at birth in India on the eve of Independence was

a. 44 years

b. 50 years

c. 60 years

d. 75 years

Answer:  44 years

Q. The growth rate of per capita income in India on the eve of Independence was

a. 0.9%

b. 0.5%

c. 1.2%

d. 3%

Answer:  0.5%

Q. Which of the following activities are included in the primary sector?

a. Agriculture

b. Service

c. Industries

d. All of these

Answer: Agriculture

Q. Manufacturing activity is included in _____ sector.

a. Primary

b. Tertiary

c. Secondary

d. All of these

Answer:  Secondary

Q. The first iron and steel company was established in _____

a. Kolkata

b. Jamshedpur

c. Patna

d. Ranchi

Answer:  Jamshedpur

Q. The tax or duty on imports is called

a. Tariff

b. Quota

c. Export

d. None of these

Answer:  Tariff

Q. Which of the following was the major occupation on the eve of independence?

a. Industry

b. Service

c. Agriculture

d. None of these

Answer:  Agriculture

Q. The second stage of demographic transition began after ________ in India.

a. 1920

b. 1921

c. 1922

d. 1931

Answer:  1921

Q. Indian economy served as a source of _______ for the British industry and a market for its finished goods.

a. Financial help

b. Natural resources

c. Raw material

d. None of these

Answer: Raw material

Q. ______ were developed by the British raj as a means to enlarge the size of the market for the British goods.

a. Ships

b. Railways

c. Roadways

d. Bicycles

Answer: Railways

Q. In which year did the British introduced the railways in India?

a. 1845

b. 1850

c. 1867

d. 1885

Answer: 1850

Q. The ________ sector accounted for 17.2 percent of the working population on the eve of Independence.

a. Industry

b. Service

c. Agriculture

d. None of these

Answer: Service

Q. India’s first official census was undertaken in the year _____

a. 1880

b. 1888

c. 1881

d. 1887

Answer:  1881

Q. The country’s growth of aggregate real output was less than ______ during the first half of the twentieth century.

a. 1%

b. 2%

c. 4%

d. 5%

Answer: 2%

Q. In which year was Suez Canal opened in

a. 1864

b. 1869

c. 1880

d. 1854

Answer: 1869

Q. ____ refer to a set of economic policies directed to accelerate the pace of growth and development.

a. Economic development

b. Economic guideline

c. Economic Reforms

d. Economic principles

Answer: Economic Reforms

Q. When did the government of India initiate a series of economic reforms?

a. 1990

b. 1991

c. 1992

d. 1994

Answer:  1991

Q. Economic reforms came to be known as

a. Economic policy

b. New Economic Power (NEP)

c. New Economic Policy (NEP)

d. None of these

Answer: New Economic Policy (NEP)

Q. Three broad components of NEP are

a. Licensing, patrolling, globalisation

b. Liberalisation, patrolling, commercialisation

c. Liberalisation, privatisation, globalisation

d. None of these

Answer:  Liberalisation, Privatisation, Globalisation

Q. LPG was set to replace ____

a. LQR

b. LQY

c. LPR

d. LQP

Answer: LQP

Q. The policy of liberalisation was brought in place of ____ for the industries and trade.

a. Livelihood

b. Quotas

c. Licensing

d. Permits

Answer: Licensing

Q. The policy of privatisation was brought in place of____ for the industrialists.

a. Livelihood

b. Quotas

c. Licensing

d. Permits

Answer: Quotas

Q. The policy of____  was brought in place of permits for exports and imports.

a. Liberalisation

b. Privatisation

c. Licensing

d. Globalisation

Answer: Globalisation

Q. Need for NEP or economic reforms was felt owing to :

a. Rise in foreign exchange reserves

b. BoP Crises

c. High fiscal Deficit

d. Both b and c

Answer: Both b and c

Q. The process of involving the private sector in the ownership or operation of a state owned enterprise is known as

a. Liberalisation

b. Privatisation

c. Licensing

d. Globalisation

Answer: Privatisation

Q. Economic Reforms were based on the assumption that ____ would drive the economy towards the path of competitive growth and development.

a. Government

b. Market forces

c. Public

d. Foreign leaders

Answer: Market forces

Q. Economic reforms under liberalisation do not include:

a. Industrial sector reforms

b. Public sector reforms

c. Financial sector reforms

d. Fiscal sector reforms

Answer: Public sector reforms

Q. In which reforms Abolition of industrial licensing, contraction of public sector, are included?

a. Industrial sector reforms

b. Public sector reforms

c. Financial sector reforms

d. Fiscal sector reforms

Answer:  Industrial Sector reforms

Q. Banking and non-banking financial institutions, stock exchange market, foreign exchange market are included in which reforms?

a. Industrial sector reforms

b. Public sector reforms

c. Financial sector reforms

d. Fiscal sector reforms

Answer: Financial sector reforms

Q. Who regulates and controls the Financial Sector in India?

a. Local banks

b. RBI

c. Public

d. Political parties

Answer: RBI

Q. Liberalisation implied a sustainable shift in the role of the RBI from ____ to____

a. a facilitator to a regulator

b. a regulator to a facilitator

c. a producer to a seller

d. a seller to a producer

Answer:  A regulator to a facilitator

Q. Which of the following are the examples of Foreign Institutional Investors?

a. RBI

b. Merchant bankers

c. Mutual funds

d. Both b and c

Answer: Both b and c

Q. Fiscal policy refers to ____ policy of the government

a. Money

b. Revenue and expenditure

c. Capital investing

d. None of these

Answer: Revenue and Expenditure

Q. Principal components of fiscal reforms are :

a. Foreign exchange reforms

b. Foreign trade policy reforms

c. Tax reforms

d. None of these

Answer:  Tax Reforms

Q. Example of direct taxes are

a. Income tax

b. GST

c. Wealth tax

d. Both a and c

Answer:  Both a and c

Q. Foreign exchange reforms and foreign trade policy reforms are included in:

a. Industrial sector reforms

b. Financial sector reforms

c. Fiscal reforms

d. External sector reforms

Answer: External Sector Reforms

Q. Foreign exchange reforms were initiated in ____

a. 1989

b. 1990

c. 1991

d. 1992

Answer:  1991

Q. ____ implies Lowering the value of our currency in relation to other currencies of the world.

a. Depreciation

b. Depression

c. Devaluation

d. Revaluation

Answer: Devaluation

Q. Foreign trade policy underwent a sustainable change in the wake of ____

a. Liberalisation

b. Privatisation

c. Licensing

d. Globalisation

Answer: Liberalisation

Q. Which of the following is the example of indirect tax?

a. Income tax

b. Wealth tax

c. Goods and service tax

d. None of these

Answer:  Goods and service tax

Q. Which generation reforms do not require any legislative action?

a. First

b. Second

c. Third

d. Fourth

Answer:  First

Q. Which generation reforms require legislative action?

a. First

b. Second

c. Third

d. Fourth

Answer:  Second

Q. Tariff barriers mainly refer to

a. Quota – barriers

b. Barriers on exports

c. Barriers on imports through high import duty

d. None of these

Answer:  Barriers on imports through high import duty

Q. Privatisation implies supremacy of ____

a. Social interest over self interest

b. Self-interest over social interest

c. social issues over self-issues

d. Self-issues over social issues

Answer:  Self-interest over social interest

Q. Diversification of production is promoted through

a. Liberalisation

b. Privatisation

c. Licensing

d. Globalisation

Answer: Privatisation

Q. Sources of human capital formation involve

a. Expenditure on education

b. Expenditure on health

c. Migration

d. All of these

Answer: All of these

Q. ____ is known as the ability to read and write.

a. Education

b. Human capital

c. Literacy

d. Human development

Answer: Literacy

Q. As per census 2011, the literacy rate in rural India is about

a. 72%

b. 45%

c. 69%

d. 56%

Answer: 69%

Q. What is the percentage of Female literacy in India?

a. 66%

b. 81%

c. 89%

d. 70%

Answer:  66%

Q. Migration of skilled manpower to developed countries of the world is known as

a. Migration

b. Human capital

c. Brain drain

d. Decentralization

Answer:  Brain drain

Q. Merit of human capital formation includes

a. Improves technical knowledge

b. Enlarges the size of business

c. Increases cost of production

d. Changes social outlooks

Answer: Increases cost of production

Q. ____ is not an indicator of education level?

a. Years of schooling

b. Life expectancy

c. Teacher-pupil ratio

d. Enrollment rate

Answer: Life expectancy

Q. Expenditure per student in _______ education is higher than that of elementary.

a. Secondary

b. Primary

c. Tertiary

d. None of these

Answer:  Tertiary

Q. _______ is the prime funding authority for university education.

a. LPG

b. UGL

c. UPSC

d. UGC

Answer: UGC

Q. India has the potential to become a leading _______ economy.

a. Capital based

b. Youth based

c. Knowledge-based

d. All of these

Answer: Knowledge-based

Q. Higher-income causes building of high level of ________ capital.

a. Physical

b. Human

c. Financial

d. None of these

Answer: Human

Q. Human capital considers education and health as a means to increase _________

a. Publicity

b. Population

c. Private powers

d. Productivity

Answer: Productivity

Q. Economic growth means ________ in real national income of a country

a. Increase

b. Decrease

c. No change

d. Zero

Answer: Increase

Q. ________ capital is completely mobile between countries.

a. Physical

b. Human

c. Financial

d. None of these

Answer: Physical

Q. _______ is the reason for the rural-urban migration in India.

a. Over population

b. Unemployment

c. Higher infant mortality rate

d. Childhood marriages

Answer:  Unemployment

Q. Individuals invest in education with the objective of increasing their future ________

a. Friends

b. Income

c. Family

d. All of these

Answer: Income

Q. Human capital formation is a _______ process.

a. Physical

b. Social

c. Chemical

d. Long

Answer: Social

Q. Role of on-the-job training doesn’t include

a. Eradicates inequality

b. Encourages innovation

c. Promotes modern methods

d. Enhances productivity

Answer: Enhances productivity

Q. What was the average youth literacy rate in 2015?

a. 89.5 percent

b. 74 percent

c. 88 percent

d. 95.5 percent

Answer:  89.5 percent

Q. In which year Right to Education Act was enacted?

a. 2008

b. 2009

c. 2010

d. 2012

Answer:  2009

Q. What percent of GDP was invested in education in the year 1952?

a. 7.92 percent

b. 11.7 percent

c. 0.64 percent

d. 3.31 percent

Answer:  0.64 percent

Q. What was the share of education in total government expenditure in 2014?

a. 7.92 percent

b. 15.7 percent

c. 0.64 percent

d. 3.31 percent

Answer: 15.7 percent

Q. Which level of education takes a major share of total education expenditure in India?

a. Elementary

b. Secondary

c. Higher

d. Tertiary

Answer: Elementary

Q. Which of the following institute comes under the health sector?

a. NCERT

b. UGC

c. AICTE

d. ICMR

Answer: ICMR

Q. _____ five-year plan recognizes the importance of human capital?

a. Seventh

b. Sixth

c. Tenth

d. First

Answer: Seventh

Q. ______ capital is tangible and can be sold in the Market

a. Human

b. Physical

c. Service

d. None of these

Answer: Physical

Q. _____ organisation enforces the rules and regulations regarding technical education

a. NCERT

b. AICTE

c. ICMR

d. UGC

Answer: AICTE

Q. Institutions providing elementary education have increased up to ______ times

a. Four

b. Five

c. Six

d. Seven

Answer: Five

Q. Rural development means ____ for the social and economic growth of the rural areas.

a.Policy

b.Rule

c. Action – plan

d. None of these

Answer:  Action – plan

Q. The action plan under rural development is to focus on :

a.More Improving the quality of life of Urbans

b.Lingering and emerging challenges in rural areas

c.Voting strategy in rural areas

d.None of these

Answer: Lingering and emerging challenges in rural areas

Q. The principal lingering challenge under rural areas is

a.The challenge of organic farming

b.Exploring options of sustainable livelihood

c.Challenge of rural credit

d.None of these

Answer:  Challenge of rural credit

Q. The principal emerging challenges include

a.Challenge of rural marketing.

b.The challenge of organic farming

c.Exploring options of sustainable livelihood

d.Both b and c

Answer: Both b and c

Q. ____ is basically required for the purchase of inputs like seeds, fertilizer etc.

a.Short – term credit

b.Medium – term credit

c.Long- term credit

d.None of these

Answer: Short – term credit

Q. _____ loans are raised generally for a period ranging between 6 to 12 months.

a.Short – term credit

b.Medium – term credit

c.Long- term credit

d.None of these

Answer: Short – term credit

Q. ____ is required for the purchase of machinery, digging wells.

a.Short – term credit

b.Medium – term credit

c.Long- term credit

d.None of these

Answer:  Medium – term credit

Q. _____ loans are raised generally for a period ranging between 12 months to 5 years.

a.Short – term credit

b.Medium – term credit

c.Long- term credit

d.None of these

Answer: Medium – term credit

Q. Long – term credit is required for :

a.Construction fences

b.Purchase of insecticides

c.Purchase of additional land

d.None of these

Answer: Purchase of additional land

Q. Long- term credit loans ranges between :

a.6 to 12 months

b.2 to 5 years

c.12 months to 5 years

d.5 to 20 years

Answer: 5 to 20 years

Q. The credit requirement of the farmers may also be classified into

a.Good and bad

b.Social and non-social

c.Productive and unproductive

d.Legal and illegal

Answer:  Productive and unproductive

Q. The important sources of non – institutional rural credit in India include:

a.Government

b.The regional rural banks

c.Moneylenders

d.Commercial banks

Answer: Moneylenders

Q. The important sources of institutional rural credit in india include

a.Landlords

b.Commercial banks

c.Village traders

d.Moneylenders

Answer: Commercial banks

Q. _____ provide guidance in diverse agricultural operations with a view to raising crop productivity.

a.RRBs

b.NABARD

c.State bank of India

d.Cooperative credit societies

Answer:  Cooperative Credit Societies

Q. The state bank of india was set up in ____ with a focus on rural credit.

a.1947

b.1950

c.1955

d.1959

Answer: 1955

Q. ____ were set – up to promote credit supplies, particularly in the remote rural areas and backward districts

a.Regional Rural Banks (RRBs)

b.NABARD

c.State bank of india

d.Cooperative credit societies

Answer: Regional Rural Banks (RRB)

Q. _____ structure of rural banking is called multi-agency system.

a.Organisational

b.Non – Institutional

c.Institutional

d.None of these

Answer: Institutional

Q.  SHGs stands for

a.Self Honor Groups

b.Self Help Groups

c. Secondary Help Groups

d.Stand Helping Groups

Answer: Self Help Groups

Q. ____ promote thrift among rural households

a.KCC scheme

b.NABARD

c.SHGs

d.Cooperative credit societies

Answer: SHGs

Q. KCC scheme stands for :

a.Kisan Cash Card

b.Kisan Committee Card

c.Kisan Credit Card

d.None of these

Answer: Kisan Credit Card

Q. ____  aims at adequate and timely support to the farmers for their short- term credit needs

a.KCC scheme

b.NABARD

c.SHGs

d.Cooperative credit societies

Answer: KCC scheme

Q. ____ refers to a situation when the farmers are compelled to sell their produce immediately after the harvest, no matter how low the market price is.

a.Open sale

b.Cash sale

c.Distress sale

d.Credit sale

Answer: Distress sale

Q. ____ is an important step initiated by the government to improve agricultural marketing system.

a.KCC scheme

b.NABARD

c.SHGs

d.MSP policy

Answer: MSP Policy

Q. ____ refers to the re – allocation of some of farm’s productive resources into new activities or crops reduces market risk.

a.Agricultural activities

b.Agricultural diversification

c.Animal husbandry

d.Horticulture

Answer: Agricultural Diversification

Q. Operating flood is a system of ____ cooperative

a.Food

b.Milk

c.Agricultural product

d.None of these

Answer:  Milk

Q. Operation flood system was launched in the year ____

a.1956

b.1966

c.1976

d.1986

Answer: 1966

Q. Milk cooperatives in India have their epicenter in the state of ____

a.Haryana

b.Gujarat

c.Punjab

d.Rajasthan

Answer: Gujarat

Q. Animal husbandry is also called as :

a.Horticulture

b.Organic farming

c.Livestock farming

d.Multi cropping

Answer: Livestock farming

Q. Important components of livestock in India are :

a.Poultry

b.Cattle

c.Goats/ sheep

d.All of these

Answer: All of these

Q. Principal problems related to livestock sector are :

a.Unhygienic environment

b.Deficient veterinary care

c.Deforestation

d.All of these

Answer: Deficient Veterinary Care

Q. Which one of the following is principal state in India where fisheries is an important source of livelihood in the rural areas?

a.Haryana

b.Kerala

c.Punjab

d.Madhya Pradesh

Answer: Kerala

Q. Which country is the second largest producer of fruits and vegetables in the world?

a.India

b.America

c.France

d.Italy

Answer: India

Q. ____ refers to a series of research, development and technology transfer initiatives that increased production of horticulture crops.

a.Green revolution

b.White revolution

c.Golden revolution

d.Blue revolution

Answer: Golden Revolution

Q. Which project was launched in Tamil Nadu with a view to training women in diverse techniques of farming.

a.NABARD

b.TANWA

c.TANWI

d.SHG

Answer: TANWA

Q. ____ is a system of farming that relies upon the use of organic inputs for cultivation.

a.Organic farming

b.Inorganic farming

c.Animal husbandry

d.Horticulture

Answer: Organic farming

Q. Which of the following is a notable advantage of organic farming, compared with conventional farming?

a.Environment – friendly

b.Sustains soil fertility

c.Healthier and tastier food

d.All of these

Answer: All of these

Q. Which of the following farming erodes fertility of soil

a.Organic

b.Inorganic

c.Conventional

d.Livestock

Answer: Conventional

Q. ____ has been accorded to the retail chains and supermarkets for selling organic food?

a.Eco Status

b.Sustainable Status

c.Nutritional Status

d.Green Status

Answer: Green Status

Q. What percentage of the inland sources contribute to the total fish production in India

a.64%

b.33%

c.50%

d.74%

Answer: 64%

Q. What is the name of the vegetable and fruit market in Andhra Pradesh?

a.Apni Mandi

b.Hadaspar Mandi

c.Rythu Bazars

d.Uzhavar Sandies

Answer:  Rythu Bazars

Q. What was the growth rate of agricultural output during 2007-12?

a.6% per annum

b.32% per annum

c.5% per annum

d.5% per annum

Answer:  32% Per Annum

Q. The minimum requirements of a human include:

a.Food and shelter

b.Gold Jewellery

c.Salon

d.Kids toys

Answer: Food and shelter

Q. Two variants of poverty are

a.Relative poverty and Irrelative poverty

b.Absolute poverty and inabsolute poverty

c.Relative poverty and absolute poverty

d.None of these

Answer:  Relative poverty and absolute poverty

Q. ____ poor include landless agricultural workers, managerial holders and tenants at will.

a.Rural

b.Urban

c.Chronic

d.Both a and b

Answer:  Rural

Q. ____ poor include migrants from the rural areas in search of employment

a.Rural

b.Urban

c,Chronic

d.Both a and b

Answer: Urban

Q. What is the single most important reason of poverty in India?

a.Rising illiteracy rate

b.Rising population

c.Rising infant mortality rate

d.Rising unemployment rate

Answer: Rising population

Q. Poverty with reference to underdevelopment of the Indian economy includes factors like ____

a.Low level of national product

b.Unequal distribution of income

c.Lack of infrastructure

d.Both a and c

Answer: Both a and c

Q. ____ provides assistance to elderly people.

a.VAMBAY

b.NSAP

c.PMGY

d.PMRY

Answer:  NSAP

Q. NFWP was launched in ____

a.November 2004

b.December 2003

c.November 2002

d.December 2005

Answer:  November 2004

Q. Which state had the highest poverty rate in India?

a.Odisha

b.Bihar

c.Madhya Pradesh

d.Haryana

Answer:  Odisha

Q. _____regularly moves in and out of poverty.

a.Chronically poor

b.Churning poor

c.Occasionally poor

d.Transient poor

Answer:  Churning poor

Q. In which year was the task Force on Projections of Minimum Needs and Effective Consumption Demand formed?

a.1969

b.1979

c.1989

d.1999

Answer:  1979

Q. Which of the following is the poverty determination measure?

a.Head Count Ratio

b.Sen Index

c.Poverty Gap Index

d.All of these

Answer:  All of these

Q. What was the percentage of the population below the poverty line in India in 2011-12?

a.1%

b.3%

c.22%

d.32%

Answer: 22%

Q. More than _______ of the world’s poor live in India.

a.two – third

b.one-third

c.one-fourth

d.one-fifth

Answer:  One-fifth

Q. ____ initiates Rural Employment Generation Programme ( REGP)

a.NSIC

b.KVIC

c.PMRY

d.DCE

Answer: KVIC

Q. From 1972-73 , both rural and urban poverty has shown a significant ____

a.Growth

b.Decline

c.Increase

d.None of these

Answer: Decline

Q. In comparison to ____ , ____  has more population below poverty line

a.Haryana, Punjab

b.Punjab, Haryana

c.Punjab, Sri Lanka

d.None of these

Answer:  Punjab, Haryana

Q. _____ sets up the Poverty line norms for monetary value of minimum calories intake.

a.Nehru committee

b.Tendulkar committee

c.Both a and b

d.None of these

Answer:  Tendulkar committee

Q. In India, the concept of poverty was first discussed by ____

a.Jawaharlal Nehru

b.Indira Gandhi

c.Dadabhai Naoroji

d.Amartya Sen

Answer: Dadabhai Naoroji

Q. ____ people having income below the poverty line.

a.Poor

b.Rich

c.Nourished

d.None of these

Answer:  Poor

Q. MPCE stands for :

a.Monthly Per Capital Expenditure

b.Minimum Per Capital Expenditure

c.Maximum Per Capital Expenditure

d.None of these

Answer: Monthly Per Capital Expenditure

Q. Which organization collects data on poverty in India?

a.SGRY

b.SJSRY

c.NSSO

d.MGNREGA

Answer: NSSO

Q. A thing which is commonly accepted as a medium of exchange is called

a. Money

b. Investment

c. Deposits

d. None of these

Answer:  Money

Q. _____ is a system in which goods are exchanged for goods.

a. Monetary system of exchange

b. Barter system of exchange

c. Charter system of exchange

d. Barter system of exchange

Answer: Barter system of exchange

Q. C-C economy stands for :

a. Cash for credit exchange economy

b. Cash for cash exchange economy

c. Commodity for commodity exchange economy

d. None of these

Answer: Commodity for commodity exchange economy

Q. _____ implies that the two individuals are in possession of such goods which they are willing to exchange for the satisfaction of their wants.

a. Fiat money

b. Double coincidence of wants

c. Fiduciary money

d. Credit money

Answer: Double coincidence of wants

Q. Introduction of money has separated the acts of ____ and ____

a. Sale and purchase

b. Purchase returns and sales returns

c. Cash and credit

d. Fiduciary money and credit money

Answer: Sale and purchase

Q. Which of the following is a drawback of the barter system of exchange?

a. Absence of both parties

b. Lack of common unit of value

c. Double coincidence of wants

d. Both b and c

Answer: Both b and c

Q.____ refers to that money wherein money value is more than commodity value

a. Fiat money

b. Fiduciary money

c. Full bodied money

d. Credit money

Answer: Credit money

Q. Money is known as full-bodied money when

a. Money value < commodity value

b. Money value > commodity value

c. Money value = commodity value

d. Money value = 0 = commodity value

Answer: Money value = commodity value

Q. Money is known as credit money when

a. Money value < commodity value

b. Money value > commodity value

c. Money value = commodity value

d. Money value = 0 = commodity value

Answer: Money value > commodity value

Q. Money plays no role in a situation when there is no ____

a. Government

b. Cash policy

c. Exchange

d. Both a and b

Answer: Exchange

Q. ____ refers to total stock of money held by the people of a country at a point of time.

a. Fiat money

b. Demand of money

c. Supply of money

d. Cash reserve

Answer: Supply of money

Q. Supply of money doesn’t include stock of money held by the ________ of a country.

a. People

b. Politicians

c. Government

d. Foreign investors

Answer:  Government

Q. The stock of money held by the suppliers of money is ____ treated as a part of the supply of money in the country.

a. Always

b. Compulsory

c. Often

d. Never

Answer: Never

Q. The government and the banking system of a country are the _____

a. Enemy of money

b. Producers of money

c. Owner of money

d. All of these

Answer: Producers of money

Q. In M1 = C + DD + OD , C stands for :

a. Currency

b. Capital

c. Cash

d. Credit

Answer: Currency

Q. In M1 = C + DD + OD , DD stands for:

a. Demand Draft

b. Demand Deposits

c. Draft Deposit

d. None of these

Answer: Demand Deposits

Q. Term deposits are for ____ period of time.

a. Long

b. Specific

c. 12 years

d. Unspecified

Answer: Specific

Q. Who supplies money ?

a. Opposition party

b. Commercial banks

c. RBI

d. Both b and c

Answer: Both b and c

Q. Money credit by the commercial banks by way of demand deposits is called ____

a. Credit Money

b. Cash pay

c. Bank money

d. Bill payable

Answer: Bank money

Q. The credit money includes :

a. Cheque and draft

b. Promissory note

c. Exchange note

d. All of these

Answer: All of these

Q. The near money includes :

a. Bonds

b. Insurance policy

c. Securities

d. All of these

Answer:  All of these

Q. Which of the following is the feature of money?

a. General acceptability

b. Homogeneous unit

c. Liquid asset

d. All of these

Answer:  All of these

Q. In order to encourage investment in the economy, the Central Bank may ________

a. Reduce Cash Reserve Ratio

b. Increase Cash Reserve Ratio

c. Sell Government securities in the open market

d. Increase Bank Rate

Answer: Reduce Cash Reserve Ratio

Q. Institution that accepts deposits for lending purpose is known as __________

a. Commercial Bank

b. Central Bank

c. Government

d. Public

Answer: Commercial Bank

Q. Functions of a commercial bank include :

a. Accepting deposits

b. Credit creation

c. Agency function

d. All of these

Answer: All of these

Q. Which of the following is a narrow measure of the money supply?

a. M2

b. M3

c. M1

d. M4

Answer: M1

Q. When was the minimum reserve system started in India?

a. 1947

b. 1948

c. 1951

d. 1957

Answer:  1957

Q. High Powered Money includes:

a. C + DD + OD

b. C + R + OD

c. C + R + TD

d. C + DD + TD

Answer: C + R + OD

Q. Indian Monetary System is based on ________

a. Paper Standard

b. Metallic Standard

c. Gold Standard

d. Credit Money Standard

Answer: Paper Standard

Q. _____ is the apex bank of India

a. RBI

b. SBI

c. SBP

d. PNB

Answer: RBI