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Indian Economy MCQ for RBI Grade B with PDF Download for Students
The smaller the cash reserve ratio, the scope for lending by banks is:
(a) Smaller
(b) Lesser
(c) Weaker
(d) Greater
Option d – Greater
Which of the following is not helpful in controlling the money supply? ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) CRR
(b) Bank rate
(c) Free market policy
(d) Change in margin requirement
Option c – Free market policy
‘Protection’ means:
(a) Protection to home industries
(b) Restriction imposed on import trade
(c) No free exchange of goods and services between two countries
(d) All of these
Option d – All of these
The system of “Memorandum of Understanding” (MOU) was introduced in: ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) 1987-88
(b) 1988-89
(c) 1989-90
(d) 1990-91
Option a – 1987-88
The government takes ‘ways and means advances’ from:
(a) RBI
(b) SBI
(c) IDBI
(d) ICICI
Option a – RBI
NIFTY is associated with: ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) BSE index
(b) NSE index
(c) Consumer price index
(d) Cloth market price index
Option b – NSE index
Buffer Stock operations are conducted by:
(a) State Trading Corporation of India
(b) Food Corporation of India
(c) Warehousing Corporation of India
(d) Ministry of Agriculture
Option b – Food Corporation of India
Which of the following is not an economic activity? ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) A teacher teaching his own son
(b) A farmer tilling his own land
(c) A laborer working in a factory
(d) A CRPF jawan guarding the country’s border
Option a – A teacher teaching his own son
‘AGMARK’ is a guarantee of standard:
(a) Quality
(b) Quantity
(c) Size
(d) Weight
Option a – Quality
The most accessible medium in India is: ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) Radio
(b) Cinema
(c) Newspaper
(d) Television
Option c – Newspaper
While estimating national income, which of the following is not taken into account?
(a) Services of a housewife
(b) Services of a doctor
(c) Services of a teacher
(d) Services of a maid servant
Option a – Services of a housewife
What is dual pricing? ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) Daily prices and weekly prices
(b) Price fixed by the government and price in the open market
(c) Wholesale price and retail pricing
(d) Pricing by agents and pricing by retailers
Option b – Price fixed by the government and price in the open market
What does ECS in banking transactions stand for?
(a) Extra Cash Status
(b) Exchange Clearing Standard
(c) Electronic Clearing Service
(d) Excess Credit Supervisor
Option c – Electronic Clearing Service
How will a reduction in ‘Bank Rate’ affect the availability of credit? ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) Credit will increase
(b) Credit will decrease
(c) Credit will not increase
(d) None of these
Option a – Credit will increase
The great depression occurred during:
(a) 1914-18
(b) 1929-34
(c) 1939-45
(d) 1922-26
Option b – 1929-34
The difference between GNP and NNP equals: ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) Depreciation
(b) Transfer payment
(c) Personal taxes
(d) Corporate profits
Option a – Depreciation
The time element in price analysis was introduced by:
(a) J. M. Keynes
(b) J. R. Hicks
(c) J. S. Mill
(d) Alfred Marshall
Option d – Alfred Marshall
According to modern thinking, the law of diminishing returns applies to: ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) Industry
(b) Mining
(c) Agriculture
(d) All fields of production
Option d – All fields of production
When marginal utility is zero, the total utility is:
(a) Minimum
(b) Maximum
(c) Decreasing
(d) Increasing
Option b – Maximum
If the price of an inferior good falls, its demand: ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) Falls
(b) Rises
(c) Remains constant
(d) Any of these
Option b – Rises
Price theory is also known as:
(a) Micro Economics
(b) Macro Economics
(c) Public Economics
(d) Development Economics
Option a – Micro Economics
Under perfect competition: ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) Marginal Revenue is less than the average revenue
(b) Average revenue is less than the marginal revenue
(c) Average revenue is equal to marginal revenue
(d) Average revenue is more than the marginal revenue
Option c – Average revenue is equal to marginal revenue
Which one of the following has elastic demand?
(a) Electricity
(b) Match boxes
(c) Rice
(d) Medicines
Option a – Electricity
Poverty in less developed countries is largely due to: ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) Income inequality
(b) Lack of cultural activity
(c) Voluntary idleness
(d) Lack of intelligence of people
Option a – Income inequality
Compared to the rich, the poor save:
(a) A smaller part of their income
(b) An equal part of their income
(c) A larger part of their income
(d) All of their income
Option a – A smaller part of their income
‘Quota’ is: ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) Limit on the quantity of exports
(b) Tax levied on imports
(c) Import of capital goods
(d) Limit on the quantity of imports
Option d – Limit on the quantity of imports
Debenture holders of a company are its:
(a) Creditors
(b) Debtors
(c) Directors
(d) Shareholders
Option a – Creditors
‘Golden Handshake Scheme’ is associated with: ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) Voluntary retirement
(b) Establishing joint enterprises
(c) Private investment in public enterprises
(d) Inviting foreign companies
Option a – Voluntary retirement
A short-term government security paper is called:
(a) Mutual fund
(b) Debenture
(c) Share
(d) Treasury bill
Option d – Treasury bill
The incidence of sales tax falls on: ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) Retail dealers
(b) Consumers
(c) Producers
(d) Wholesale dealers
Option b – Consumers
The worldwide great depression took place in:
(a) 1929
(b) 1928
(c) 1930
(d) 1936
Option a – 1929
A trade policy consists of: ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) Licensing policy
(b) Balance of payment policy
(c) Export-import policy
(d) Foreign exchange policy
Option c – Export-import policy
Movement along the same demand curve is known as:
(a) Contraction of supply
(b) Increase of supply
(c) Extension and contraction of demand
(d) Increase and decrease of demand
Option d – Increase and decrease of demand
Interest paid by the government on the loans raised is called: ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) Discounted Budgeting
(b) Deficit Financing
(c) Bridge Loan
(d) Debt Servicing
Option d – Debt Servicing
VAT is imposed:
(a) On the first stage of production
(b) Directly on the consumer
(c) On the final stage of production
(d) On all stages between production and sale
Option d – On all stages between production and sale
How is the interest level of a country affected by FDI? ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) Decreases
(b) Increases
(c) There is an increase or decrease
(d) Remains unaffected
Option a – Decreases
Money supply is governed by:
(a) Reserve Bank of India
(b) Commercial Banks
(c) Planning Commission
(d) Finance Commission
Option a – Reserve Bank of India
The most accessible medium in India is: ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) Radio
(b) Newspaper
(c) Cinema
(d) Television
Option b – Newspaper
Capital Market Regulator is:
(a) RBI
(b) IRDA
(c) NSE
(d) SEBI
Option d – SEBI
Human Development Index was developed by: ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) Montek Singh
(b) Amartya Sen
(c) Mahbub-ul-Haq
(d) Friedman
Option d – Friedman
Liberalism stands for:
(a) Self-emancipation
(b) Religious orthodoxy
(c) A movement and an attitude
(d) Freedom in social, political, and economic aspects
Option d – Freedom in social, political, and economic aspects
Malthusian theory of population explored the relationship between: ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) Optimum growth and resources
(b) Food supply and technology
(c) Population growth and development
(d) Food supply and population growth
Option d – Food supply and population growth
Gross National Product – Depreciation allowance = ?
(a) Personal Income
(b) Per Capita Income
(c) Net National Product
(d) Gross Domestic Product
Option c – Net National Product
Economic profit or normal profit is the same as:
(a) Net profit
(b) Maximum profit
(c) Accounting profit
(d) Optimum profit
Option a – Net profit
Which of the following is not an economic problem? ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) Deciding between alternative methods of personal saving
(b) Deciding between paid work and leisure
(c) Deciding between expenditure on one good and the other
(d) Deciding between different ways of spending leisure time
Option d – Deciding between different ways of spending leisure time
According to modern theory of rent, rent accrues to:
(a) Labour only
(b) Land only
(c) Capital only
(d) Any factor
Option d – Any factor
It is prudent to determine the size of the output when the industry is operating in the stage of: ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) Increasing returns
(b) Negative returns
(c) Constant returns
(d) Diminishing returns
Option d – Diminishing returns
Who said, “Economics is the science of wealth”?
(a) J. S. Mill
(b) Keyens
(c) Robbins
(d) Adam Smith
Option d – Adam Smith
Equilibrium price is the price when: ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) Supply is less than demand
(b) Supply is greater than demand
(c) Supply is equal to demand
(d) Demand is very high
Option c – Supply is equal to demand
New capital issue is placed in:
(a) Grey market
(b) Black market
(c) Primary market
(d) Secondary market
Option c – Primary market
Fixed cost is known as: ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) Direct cost
(b) Prime cost
(c) Overhead cost
(d) Special cost
Option c – Overhead cost
Toothpaste is a product sold under:
(a) Perfect competition
(b) Monopolistic competition
(c) Duopoly
(d) Monopoly
Option b – Monopolistic competition
The ‘break-even’ point is where: ( Indian Economy MCQ for RBI Grade B with PDF Download )
(a) Average revenue equals average cost
(b) Total revenue equals total cost
(c) Marginal revenue equals marginal cost
(d) None of these
Option b – Total revenue equals total cost
A horizontal demand curve is:
(a) Perfectly inelastic
(b) Perfectly elastic
(c) Relatively elastic
(d) Of unitary elasticity
Option b – Perfectly elastic
Bread and butter, car and petrol are examples of goods which have:
(a) Joint demand
(b) Composite demand
(c) Derived demand
(d) Autonomous demand
Option c – Derived demand
The law of demand is based on:
(a) Consumer’s preference
(b) Seller’s preference
(c) Supplier’s preference
(d) Manufacturer’s preference
Option a – Consumer’s preference
The sale of branded articles is common in a situation of:
(a) Monopoly
(b) Pure competition
(c) Excess capacity
(d) Monopolistic competition
Option d – Monopolistic competition
The study of factor pricing is alternatively called the theory of:
(a) Personal distribution
(b) Income distribution
(c) Wealth distribution
(d) Functional distribution
Option d – Functional distribution
The income of Indians working abroad is a part of:
(a) Income earned from abroad
(b) Domestic income of India
(c) Net domestic product of India
(d) Gross domestic product of India
Option c – Net domestic product of India
Personal disposable income is:
(a) Always more than personal income
(b) Always equal to personal income
(c) Equal to personal income minus direct taxes paid by households
(d) Equal to personal income minus indirect taxes
Option c – Equal to personal income minus direct taxes paid by households
Payment of water charges by farmers to the government represents:
(a) Fixed investment
(b) Final consumption
(c) Intermediate consumption
(d) Inventory investment
Option c – Intermediate consumption
When marginal utility is zero, the total utility is:
(a) Maximum
(b) Minimum
(c) Increasing
(d) Decreasing
Option a – Maximum
In Economics, production means:
(a) Farming
(b) Making
(c) Creating utility
(d) Manufacturing
Option c – Creating utility
If the income elasticity of demand is greater than one, the commodity must be:
(a) An inferior good
(b) A luxury
(c) A necessity
(d) None of these
Option b – A luxury
A want becomes a demand only when it is backed by the:
(a) Necessity to buy
(b) Utility of the product
(c) Ability to purchase
(d) Desire to buy
Option c – Ability to purchase
The most distinguishing feature of oligopoly is:
(a) Number of firms
(b) Price leadership
(c) Negligible influence on price
(d) Interdependence
Option d – Interdependence
Which is the most essential function of an entrepreneur?
(a) Risk bearing
(b) Management
(c) Supervision
(d) Marketing
Option a – Risk bearing
Prime cost is equal to:
(a) Variable cost only
(b) Variable cost plus administrative cost
(c) Fixed cost only
(d) Variable cost plus fixed cost
Option b – Variable cost plus administrative cost
Under which market condition do firms have excess capacity?
(a) Duopoly
(b) Oligopoly
(c) Perfect competition
(d) Monopolistic competition
Option d – Monopolistic competition
(a) Implicit cost
(b) Prime cost
(c) Fixed cost
(d) Variable cost
Option d – Variable cost
If a change in all inputs leads to a proportionate change in output, it is a case of:
(a) Diminishing returns to scale
(b) Constant returns to scale
(c) Variable returns to scale
(d) Increasing returns to scale
Option b – Constant returns to scale
Foreign currency which has a tendency of quick migration is called:
(a) Hot currency
(b) Soft currency
(c) Gold currency
(d) Scarce currency
Option a – Hot currency
Deflation is a situation in which:
(a) The value of money is increasing
(b) The price of goods is increasing
(c) The value of money is falling
(d) The price level is stagnant
Option a – The value of money is increasing
Cheap money means:
(a) Low level of income
(b) Low rates of interest
(c) Low level of saving
(d) Low level of standard of living
Option b – Low rates of interest
Inflation can be checked by:
(a) Increasing exports
(b) Decreasing money supply
(c) Increasing government expenditure
(d) Increasing money supply
Option b – Decreasing money supply
The process of curing inflation by reducing money supply is called:
(a) Disinflation
(b) Cost push inflation
(c) Reflation
(d) Demand-pull inflation
Option a – Disinflation
Which one of the following is an example of optional money?
(a) Bond
(b) Coin
(c) Cheque
(d) Currency note
Option c – Cheque
The terms ‘Bull and Bear’ are associated with:
(a) Internet Trade
(b) Stock Market
(c) Banking
(d) Foreign Trade
Option b – Stock Market
(a) S. L. R.
(b) C. R. R.
(c) N. E. E. R.
(d) Fixed deposits
Option c – N. E. E. R.
Which one of the following is not a function of money?
(a) Price stabilisation
(b) Transfer of value
(c) Value measurement
(d) Store of value
Option a – Price stabilisation
During the period of inflation, tax rates should:
(a) Remain constant
(b) Fluctuate
(c) Increase
(d) Decrease
Option d – Decrease
What is USP in the marketing field?
(a) Unique Selling Proposition
(b) US Programme Based
(c) Universal Standard of Production
(d) Uninterrupted Power Supply
Option a – Unique Selling Proposition
Devaluation makes import:
(a) Dearer
(b) Inelastic
(c) Cheaper
(d) Competitive
Option a – Dearer
Who are the creditors of a corporation?
(a) Stockholders
(b) Bondholders
(c) Holders of preferred stock
(d) Both bondholders & stockholders
Option d – Both bondholders & stockholders
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