Indian Economy Quiz with Answers

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Indian Economy Quiz with Answers
Q :  

Where is the headquarters of the Insurance Regulatory and Development Authority?

(A) Ahmedabad

(B) Chennai

(C) New Delhi

(D) Hyderabad


Correct Answer : D
Explanation :

The head office of India's Insurance Regulatory and Development Authority (IRDAI) is in Hyderabad. 

Insurance Regulatory and Development Authority of India (IRDAI): It was constituted by the recommendations of the Malhotra Committee report, in 1999. 

It is an autonomous body. 

It regulates and develops the insurance industry. 

The IRDA was incorporated as a statutory body in April 2000. Objective: Enhance customer satisfaction through increased consumer choice and lower premiums while ensuring the financial security of the insurance market. 

Today there are 34 general insurance companies and 24 life insurance companies operating in the country.


Q :  

Indian stock market is regulated and supervised by whom?

(A) UTI

(B) ICICI Bank

(C) SEBI

(D) RBI


Correct Answer : C
Explanation :

SEBI is the regulator of the securities market in India.

The SCRA (Securities Contracts Regulation Act) has empowered SEBI to recognise and regulate stock exchanges and later commodity exchanges in India; this was earlier done by the Union government.


Q :  

When was the Securities and Exchange Board of India established?

(A) 1992

(B) 1993

(C) 2002

(D) 1988


Correct Answer : D
Explanation :

The Securities and Exchange Board of India was constituted on 12th April 1988. It is the regulator of the securities and commodity market in India owned by the Government of India. It was given Statutory Powers on 30th January 1992 through the SEBI Act, 1992. SEBI has its headquarters at the business district of Bandra Kurla Complex in Mumbai and has Northern, Eastern, Southern, and Western Regional Offices in New Delhi, Kolkata, Chennai, and Ahmedabad respectively. Controller of Capital Issues was the regulatory authority before SEBI came into existence; it derived authority from the Capital Issues (Control) Act, 1947. The aim of SEBI is .to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto. Ms. Madhabi Puri Buch is the current Chairman of SEBI.


Q :  

Which of the following statements is correct regarding the bank reserves?

I. These reserves are kept partly as cash and partly in the form of financial instruments.

II. Cash Reserves Ratio are deposits that commercial banks keep with the Reserve Bank of India.

(A) Only II

(B) Both I and II

(C) Only I

(D) Neither I nor II


Correct Answer : B
Explanation :

The first statement is generally true. Banks and financial institutions keep a certain percentage of their deposits as reserves to ensure that they have enough liquidity to meet their obligations. These reserves can be kept in the form of cash or financial instruments such as government securities, treasury bills, and other approved securities. 

The second statement is also true. Cash Reserve Ratio (CRR) is the percentage of deposits that commercial banks are required to maintain as reserves with the RBI. The purpose of CRR is to control the amount of money that banks can lend to borrowers. When the RBI increases the CRR, banks have less money available to lend, which can help to control inflation. Conversely, when the RBI decreases the CRR, banks have more money available to lend, which can stimulate economic growth.


Q :  

What percentage of the agricultural industry contributes to the gross profit from national income?

(A) 18%

(B) 17.9%

(C) 20%

(D) Others


Correct Answer : A
Explanation :

Agriculture is the most important sector of Indian Economy. Indian agriculture sector accounts for 18 per cent of India's gross domestic product (GDP) and provides employment to 50% of the countries workforce.


Q :  

Which of the following is be an example of employment with job security?

(A) Daily wage labourer

(B) Casual worker

(C) Regular worker

(D) Seasonal worker


Correct Answer : B
Explanation :

Jobs that traditionally have a strong union presence such as many government jobs and jobs in education, healthcare and law enforcement are considered very secure while many non-unionized private sector jobs are generally believed to offer lower job security, although this varies by industry and country.


Q :  

In which market structure the market demand curve is represented by the demand curve of the firm?

(A) Monopoly

(B) Oligarchy

(C) Dual rights

(D) Perfect competition


Correct Answer : A
Explanation :

Since all firms in perfect competition sell identical products and face the same market price, the market demand curve is determined by horizontally summing the individual firm's demand curves. Therefore, the market demand curve coincides with the demand curve of a single firm in perfect competition.


Q :  

Who is the institution that determines the rules related to international trade?

(A) WTO

(B) IM

(C) U.P. N. O.

(D) None of these


Correct Answer : A
Explanation :

The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations.


Q :  

Under perfect competition, the industry has no excess capacity because each firm produces at its minimum point.

(A) Long run marginal cost curve

(B) Long run average cost curve

(C) Long run average variable cost curve

(D) Long run average income curve


Correct Answer : B
Explanation :

Excess capacity in simple terms is when a firm is producing below it's full production potential. So under perfect competition, all firms produce at minimum point where the long-run average cost curve, marginal revenue, average revenue and horizontal demand curve are tangent.


Q :  

The year in which the first industrial policy of independent India was announced was?

(A) 1947

(B) 1948

(C) 1951

(D) 1956


Correct Answer : B
Explanation :

Industrial Policy – 1948. After having attained independence, the Government of India declared its first Industrial Policy on 6th April, 1948. The Industrial Policy 1948 was presented in the parliament by then Industry Minister Dr. Shyama Prasad Mukherjee.


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    Rajesh Bhatia

    A Writer, Teacher and GK Expert. I am an M.A. & M.Ed. in English Literature and Political Science. I am highly keen and passionate about reading Indian History. Also, I like to mentor students about how to prepare for a competitive examination. Share your concerns with me by comment box. Also, you can ask anything at linkedin.com/in/rajesh-bhatia-7395a015b/.

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