Top 550+ Solved Indian Economy MCQ Questions Answer
Q. Both Foreign Direct Investment (FOI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two? [CSAT 2011]
a. FII helps bring better management skills and technology, while FDI only brings in capital
b. FII helps in increasing capital availability in general, while FDI only targets specific sectors
c. FDI flows only into the secondary market, while FII targets primary market
d. FII is considered to be more stable than FDI
Q. Which one among the following statements is correct? [CDS 2012]
a. Due to border problems, India's trade with China did not register a quantum jump between the years 2001·2010
b. The stand-off between India and China on Pakistan and Arunachal Pradesh did not let India's trade to grow with China in the years 2001-2010 as much as it grew in the years 1991- 2001
c. While India-China trade has registered a quantum jump between the years 2001-2010, both the countries have ensured parity of trade
d. In spite of border problems, India's trade with China registered a quantum jump during the years 2001-2010
Q. Sickness of small units can be because of the factors: 1. under-utilisation of capacity 2. non-payment by the large firms 3. dependence on borrowed funds 4. lack of management expertise
a. 1, 2 and 3
b. 2, 3 and 4
c. 1, 2 and 4
d. 3 and 4
Q. "Sunrise Industries" are Industries:
a. which are well-developed and have ample scope for further development
b. which improve export performance of the country
c. which are small-scale industries
d. which have high growth potential and meet further requirements of the economy
Q. Arbitrage implies:
a. practice of taking advantage of rice difference in two markets
b. the practice of under invoicing exports
c. the practice of dumping viz., selling goods in a foreign market cheaper than the home market
d. the practice of over-invoicing imports
Q. Sector-wise, maximum employment in the public sector is in :
a. electricity, gas and water
b. community, social and personal services
c. finance, insurance and real estate
d. transport, storage and communication
Q. Which one among the following is not true for Special Economic Zones? [CDS 2011]
a. No licence is required for import
b. Manufacturing and service activities are allowed
c. No permission for subcon- tracting
d. No routine examination of cargo for export/import by customs authorities
Q. The biggest Public Sector undertaking in the country is ____ [Corporation Bank PO 2011]
a. Iron & steel plants
b. Roadways
c. Railways
d. Airways
Q. With reference to India, which one of the following statements is NOT correct? [IAS 2003]
a. IPCL is India's largest petrochemical company
b. RIL is the largest private sector· company in India
c. MTNL is listed on NYSE
d. BSNL is the first telecom service organization in India to launch a nationwide cellular service at one time
Q. What is the current account of balance of payments?
a. It is the account showing difference of total exports and imports in one year
b. It is the account showing transactions in invisible account like tourism, shipping, insurance etc.
c. It is the account showing transactions like net external assistance, NRI deposits, et
d. It is the account showing trade balance plus invisible balance
Q. Core industries include:
a. basic industries
b. industries catering to defence requirements
c. critical industries
d. all the above
Q. The core sector includes:I. Coal II. Power III. Petroleum IV. Soaps and Detergent
a. I and II
b. I, II and III
c. I
d. II and III
Q. Invisible Export means export [Corporation Bank PO 2011]
a. Services
b. Prohibited goods
c. Unrecorded goods
d. Goods through smuggling