Top 550+ Solved Indian Economy MCQ Questions Answer
Q. The primary objective of Unit Trust of India is:
a. to assist the industries in financial difficulties
b. to diffuse the benefit of development among the masses
c. to accumulate funds for public investment expenditure
d. to promote the investment habit among those who have not been able to diversify investment risk
Q. Which of the following is now a punishable offence by a Bank Account holder ? [BankPO 1990]
a. If a cheque is not crossed
b. If a post-dated cheque is issued
c. If a cheque drawn by him is dishonoured for insufficiency of funds in his account
d. Issuing a cheque without signature
Q. Which of the following are the functions of the Central Bank of India? [Railways 1992] 1. Regulation of currency and flow of credit system 2. Maintaining exchange value of rupee 3. Formulating monetary policy of India 4. Supervisory powers over the indigenous bankers and leasing companies
a. 1 and 3
b. 1, 2 and 3
c. 1, 2 and 4
d. 1, 2, 3 and 4
Q. Which of the following are under the purview of Industrial Development Bank of India? 1. Unit Trust of India 2. Life Insurance Corporation of India 3. Export-Import Bank 4. State Finance Corporation of India
a. 1, 2 and 3
b. 2, 3 and 4
c. 1, 3 and4
d. 1, 2 and 4
Q. Which of the following constitute short-term sources of finance for small scaleindustries? 1. Private money lenders 2. Loans by commercial banks 3. Credit Guarantee schemes 4. National Small Industries Corporation
a. 1, 2 and 3
b. 1 only
c. 1, 2 and 4
d. 1, 2, 3 and 4
Q. Which of the following provides the largest part of the demand for loanable funds inIndia?
a. Farmers
b. Private-house purchasers
c. Corporate businesses
d. Hire-purchase borrowers
Q. A crossed cheque is one, which can be encashed only: [IFS 1991]
a. by the drawee
b. through a bank,
c. at the State Bank of India
d. after it has been transferred to another person
Q. Which one of the following Indian banks is not a nationalized bank? [IAS 2006]
a. Corporation Bank
b. Dena Bank
c. Federal bank
d. Vijaya Bank
Q. Which of the following is not an affiliate of the Reserve Bank of India?
a. Unit Trust of India
b. The Industrial Development Bank of India
c. Agricultural Refinance Corporation
d. Deposit Insurance Corporation
Q. The basic regulatory authority for mutual funds and stock markets lies with the:
a. Government of India
b. Reserve Bank of India
c. Securities and Exchange Board of India
d. Stock Exchanges
Q. What is the difference between Debentures and Equity?
a. Debentures are sealed bonds acknowledging that money has been borrowed; equity is a shareholder's share voting rights in proportion to his shareholding
b. An equity shareholder cannot withdraw his amount whereas debentures can be withdrawn by taking back the amount
c. Equity shareholding is more risky, compared to debentures which are bound to return good interest on the principal
d. Both debenture and equity holders have the right of voting irrespective of the proportion of holdings but debentures are of lower value than equity
Q. Which of the following combinations is correct? [IFS 1989]
a. NABARD-Industrial Loans
b. IDBI-Short term loans
c. RBI-Long term finance
d. RRB-Agricultural finance
Q. Which one of the following Public Sector banks' emblem figures a dog and the words 'faithful, friendly' in it ? [CDS 2010]
a. Punjab National Bank
b. Syndicate Bank
c. Oriental Bank of Commerce
d. State Bank of India
Q. Which one of the following statements is not correct? [CDS 2009]
a. The National Association of Securities Dealers Automated Quotations known as NASDAQ, is an American stock exchange
b. Nikkei is the stock market index for the Tokyo Stock Exchange
c. S and P CNX Nifty is the index for 50 large companies on the Bombay Stock Exchange
d. Hang Seng Indexes record daily changes of the largest companies of the Hong Kong stock market