Indian Economy Set 3

Bachelor of Business Administration (BBA),

Bachelor of Arts (BA),

Bachelor of Arts in Economics (BA Economics),

Union Public Service Commission (UPSC)

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This set of Indian Economy Multiple Choice Questions & Answers (MCQs) focuses on Indian Economy Set 3

Q1 | Indian Iron and Steel company was established in ……………
  • 1919
  • 1909
  • 1976
  • 1090
Answer: 1909
Q2 | …………… is known as the father of Iron and Steel company in India.
  • jamshedji tata
  • ratan tata
  • ambani
  • mittal
Answer: jamshedji tata
Q3 | Bockaro Steel plant was started during ……………. plan .
  • first
  • second
  • third
  • fourth
Answer: fourth
Q4 | WTO prescribes export subsidies as:
  • competition
  • unfair competition
  • monopolistic competition
  • exploitation
Answer: unfair competition
Q5 | Export promotion is an:
  • inward looking strategy
  • outward looking strategy
  • fiscal strategy
  • political strategy
Answer: outward looking strategy
Q6 | Since March 1973, the world, more or less, had a:
  • free floating exchange rate system
  • fixed exchange rate system
  • managed floating exchange rate system
  • adjustable peg system
Answer: managed floating exchange rate system
Q7 | Net National gains from trade is measurable function of:
  • volume of trade
  • relative prices in two countries
  • factor cost of commodities traded
  • volume of trade credited and change in prices caused by trade
Answer: volume of trade credited and change in prices caused by trade
Q8 | Outward looking development policies are not associated with:
  • open system of communications
  • free movement of capital
  • multinational enterprises
  • learning by doing
Answer: learning by doing
Q9 | Import quota is :
  • tariff
  • non-tariff trade barrier
  • concession
  • international obligation
Answer: non-tariff trade barrier
Q10 | Balance of payments must always balance because:
  • trade deficit is cancelled by invisible credits
  • import always equals exports
  • of an accounting connection
  • what a country gets, it must either pay or save
Answer: of an accounting connection
Q11 | Trade Policy measures for correction of balance of paymentsdisequilibrium include of export promotion:
  • export promotion
  • import control
  • both a & b
  • import substitution
Answer: both a & b
Q12 | In calculating India’s balance of payments position, we must:
  • omit invisible items
  • omit exports and imports of gold
  • include expenditure by foreign tourists as imports
  • include long term loans abroad as debit
Answer: omit exports and imports of gold
Q13 | The convertibility of dollar was formally abandoned in:
  • 1971
  • 1966
  • 1973
  • 1962
Answer: 1971
Q14 | Each member of IMF is assigned a quota expressed in:
  • member country’s currency
  • dollar
  • special drawing rights
  • none of the above
Answer: special drawing rights
Q15 | The international monetary system that existed from 1947 to 1971 isgenerally known as:
  • par value system
  • pegged exchange rate system
  • bothe a & b
  • fewer rupees in the spot market than in the home market
Answer: par value system
Q16 | The fundamental cause for the collapse of the Bretton woods system was:
  • liquidity problem
  • the adjustment problem
  • the confidence problem
  • all of the above
Answer: all of the above
Q17 | The direction of trade indicates:
  • the nature of goods that are exported and imported
  • the value of goods that are exported and imported
  • the countries to which commodities are exported and the countries from which commodities are imported
  • the terms at which exports exchanges for imports school of distance education indian economy
Answer: the countries to which commodities are exported and the countries from which commodities are imported
Q18 | The important component of foreign trade:
  • terms of trade, balance of trade and balance of payment
  • the volume of trade, the composition of trade and direction of trade
  • terms of trade and volume of trade
  • terms of trade and direction of trade
Answer: the volume of trade, the composition of trade and direction of trade
Q19 | The balance of payment in unfavorable:
  • when value of export is greater than import
  • when value of import is greater than export
  • when value of imports and exports are equal
  • only when there is much greater difference between exports and imports
Answer: when value of import is greater than export
Q20 | In which of the plan period, the Balance of payment position had surplus:
  • first plan
  • second plan
  • third plan
  • fifth plan
Answer: fifth plan
Q21 | The Mudaliar Committee was related to:
  • export-import policy
  • exim bank
  • small scale industries
  • banking sector
Answer: export-import policy
Q22 | EXIM Bank was set up in:
  • 1980
  • 1982
  • 1991
  • 2000
Answer: 1982
Q23 | The balance of payment on current account shows:
  • the record of the current position of the country in transfer of both visible and invisible items
  • the record of the financial position of the country
  • the extent of the financial position of the country
  • the record of the current position of visible items.
Answer: the record of the current position of the country in transfer of both visible and invisible items
Q24 | “Capitalism” refers to?
  • The use of market
  • Government ownership of capital
  • Private ownership of capital goods
  • Private ownership of homes & cars
Answer: Private ownership of capital goods
Q25 | What is the main cause of exports surplus?
  • Country’s stringent import policy
  • Developments in national and international markets
  • Country’s exports promotion value
  • above all
Answer: above all
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