Economy Set 1 MCQs

Economy GK

Economy Set 1 MCQs

Practice Economy GK MCQs on basic economic concepts including economy, economics, microeconomics, macroeconomics, goods and services, demand and supply, factors of production, opportunity cost, economic activities, sectors of economy and other fundamental concepts frequently asked in SSC, Railway, Banking, UPSC, JKSSB, JKPSC, Police, Defence and other competitive examinations.

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Page 82 of 111
Question #1621
The 'Gift City' in Gujarat is an International Financial Services Centre that offers:
A. only domestic banking
B. tax incentives and international financial services
C. only stock trading
D. only commodity trading
Discuss
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Correct Answer: Option B

Explanation:
GIFT City offers international financial services with tax and regulatory incentives.
This question belongs to: Economy GK Economy Set 1
Question #1622
The 'Foreign Portfolio Investor' route in India is regulated by:
A. SEBI
B. PFRDA
C. RBI only
D. IRDAI
Discuss
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Correct Answer: Option A

Explanation:
Foreign Portfolio Investors are regulated by SEBI.
This question belongs to: Economy GK Economy Set 1
Question #1623
The 'Foreign Direct Investment' policy in India is formulated by:
A. Department for Promotion of Industry and Internal Trade
B. SEBI
C. RBI
D. NITI Aayog
Discuss
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Correct Answer: Option A

Explanation:
FDI policy is formulated by the Department for Promotion of Industry and Internal Trade.
This question belongs to: Economy GK Economy Set 1
Question #1624
The 'automatic route' for FDI means:
A. no prior approval is required
B. prior approval is required
C. only government companies can invest
D. only foreign individuals can invest
Discuss
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Correct Answer: Option A

Explanation:
Under the automatic route, FDI does not require prior government approval.
This question belongs to: Economy GK Economy Set 1
Question #1625
The 'government route' for FDI requires:
A. only RBI approval
B. prior approval from the government
C. no approval
D. only SEBI approval
Discuss
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Correct Answer: Option B

Explanation:
Government route requires prior approval from the concerned government ministry.
This question belongs to: Economy GK Economy Set 1
Question #1626
The 'Sovereign Wealth Fund' is a state-owned investment fund that invests in:
A. only government bonds
B. only domestic infrastructure
C. only gold
D. various financial assets including equities and real estate
Discuss
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Correct Answer: Option D

Explanation:
Sovereign wealth funds invest in financial assets such as equities, bonds and real estate.
This question belongs to: Economy GK Economy Set 1
Question #1627
The 'Norges Bank Investment Management' manages the sovereign wealth fund of:
A. Norway
B. UAE
C. China
D. Saudi Arabia
Discuss
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Correct Answer: Option A

Explanation:
Norges Bank Investment Management manages Norway's Government Pension Fund Global.
This question belongs to: Economy GK Economy Set 1
Question #1628
The 'index of eight core industries' does not include which of the following?
A. Pharmaceuticals
B. Cement
C. Coal
D. Steel
Discuss
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Correct Answer: Option A

Explanation:
Pharmaceuticals is not included in the eight core industries.
This question belongs to: Economy GK Economy Set 1
Question #1629
The 'Index of Industrial Production' is published with a time lag of about:
A. one month
B. one quarter
C. one week
D. six weeks
Discuss
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Correct Answer: Option A

Explanation:
IIP is released with a lag of about one month.
This question belongs to: Economy GK Economy Set 1
Question #1630
The 'Fiscal deficit' is financed by:
A. only foreign aid
B. only disinvestment
C. only taxes
D. market borrowings and other liabilities
Discuss
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Correct Answer: Option D

Explanation:
Fiscal deficit is financed through market borrowings and other liabilities.
This question belongs to: Economy GK Economy Set 1
Question #1631
The 'Revenue deficit' indicates that the government's:
A. total budget is balanced
B. revenue expenditure exceeds revenue receipts
C. revenue receipts exceed revenue expenditure
D. capital expenditure exceeds capital receipts
Discuss
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Correct Answer: Option B

Explanation:
Revenue deficit is the excess of revenue expenditure over revenue receipts.
This question belongs to: Economy GK Economy Set 1
Question #1632
The 'Effective Revenue Deficit' was introduced to exclude from revenue deficit those grants:
A. given to foreign countries
B. given to states for revenue expenditure
C. used for interest payments
D. used for creation of capital assets
Discuss
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Correct Answer: Option D

Explanation:
Effective revenue deficit excludes grants for creation of capital assets from revenue deficit.
This question belongs to: Economy GK Economy Set 1
Question #1633
The 'Fiscal Responsibility and Budget Management Act' originally targeted elimination of revenue deficit by which year?
A. 2013-14
B. 2006-07
C. 2010-11
D. 2008-09
Discuss
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Correct Answer: Option D

Explanation:
FRBM aimed to eliminate revenue deficit by 2008-09.
This question belongs to: Economy GK Economy Set 1
Question #1634
The 'Debt to GDP ratio' in India is monitored as part of which framework?
A. Monetary policy framework
B. Trade policy
C. Exchange rate policy
D. FRBM fiscal policy framework
Discuss
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Correct Answer: Option D

Explanation:
Debt to GDP ratio is a key parameter under the FRBM framework.
This question belongs to: Economy GK Economy Set 1
Question #1635
The 'Fiscal Deficit' in the Union Budget is expressed as a percentage of:
A. total expenditure
B. total debt
C. Gross Domestic Product
D. revenue receipts
Discuss
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Correct Answer: Option C

Explanation:
Fiscal deficit is conventionally expressed as a percentage of GDP.
This question belongs to: Economy GK Economy Set 1
Question #1636
The 'Primary deficit' is a useful measure because it shows:
A. the deficit excluding interest payments
B. only revenue deficit
C. the entire fiscal deficit
D. only capital deficit
Discuss
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Correct Answer: Option A

Explanation:
Primary deficit excludes interest payments from fiscal deficit.
This question belongs to: Economy GK Economy Set 1
Question #1637
The 'non-plan expenditure' and 'plan expenditure' classification in the budget was removed from which financial year?
A. 2018-19
B. 2020-21
C. 2017-18
D. 2015-16
Discuss
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Correct Answer: Option C

Explanation:
The plan/non-plan expenditure classification was removed from the 2017-18 budget.
This question belongs to: Economy GK Economy Set 1
Question #1638
The 'Goods and Services Tax' was implemented in India from which date?
A. 1 July 2017
B. 1 January 2017
C. 1 April 2017
D. 1 April 2016
Discuss
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Correct Answer: Option A

Explanation:
GST was implemented on 1 July 2017.
This question belongs to: Economy GK Economy Set 1
Question #1639
The 'Goods and Services Tax' is a:
A. wealth tax
B. indirect tax
C. direct tax
D. capital gains tax
Discuss
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Correct Answer: Option B

Explanation:
GST is an indirect tax on goods and services.
This question belongs to: Economy GK Economy Set 1
Question #1640
The 'Goods and Services Tax' is levied on the supply of:
A. only imports
B. only goods
C. only services
D. both goods and services
Discuss
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Correct Answer: Option D

Explanation:
GST is levied on the supply of both goods and services.
This question belongs to: Economy GK Economy Set 1
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