Indian Economy GK Question 2021

Indian Economy GK Question 2021


Indian Economy GK Top 10 Question 2021


  1. Who among the following Indian Economists have played a crucial role in the MNREGA formerly NREGA?

[A]       Amartya Sen
[B]       Jean Dreze
[C]       Jagdish Natwarlal Bhagwati
[D]       Dr. Vijay Kelkar

Correct Answer: B [Jean Dreze]

Jean Dreze is an Economist of Indian Origin born in Belgium. He conceptualized and drafted the first version of MGNREGA. He was the member of National Advisory Council and has coauthored “An Uncertain Glory: India and its Contradiction” with noted economist Amartya Sen.

2. Rs. 100 notes are printed in which of the following?

[A]       The Indian Security Press Nasik
[B]       The Security Printing Press Hyderabad
[C]       The bank Note Press, Dewas
[D]       All 1,2 & 3

Correct Answer: D [All1,2&3]

The currency notes in India are printed in 4 presses. Two of them are owned by the Government of India and are located at Nashik and Devas. Two others are owned by the Reserve Bank of India at Mysore and Salboni.

3. The livestock census in India is done every_______?

[A]       1 Year

[B]       3 Years
[C]       5 Years
[D]       10 years

Correct Answer: C [5 Years]

4. In which year, State Bank of Indore was established as Bank of indore?

[A]       1910
[B]       1920
[C]       1930
[D]       1940

Correct Answer: B [1920]

5. Which among the following index is available on Quarterly Basis?

[A]       WPI
[B]       CPI-IW
[C]       CPI-AL/RL
[D]       GDP Deflator

Correct Answer: D [GDP Deflator]

6. Which among the following is the main motive of the Reserve Bank of India behind it’s mechanism known as Devolvement ?

[A] To counter the problem of low capital in the scheduled banks
[B] To counter the volatility in the price of Government Securities
[C] To handle the problem of discrepancy in accounting systems in banks
[D] To control the scheduled banks’ assets and liabilities

Correct Answer: B [To counter the volatility in the price of Government Securities]

7. The most active segment of the Money Market in India is which one of the following?

[A]       Call Money / Notice Money Market
[B]       Repo / Reverse Repo

[C]       Commercial Paper (CP)
[D]       Certificate of Deposit (CD)

Correct Answer: A [Call Money / Notice Money Market]

Call Money / Notice Money Market is the most active segment of the money market in India.

8. One of the following banks is the oldest Public Sector Bank in India having branches all over India and serving the customers for the last 145 years and even today. Identify that Bank:

[A]       Punjab National Bank
[B]       Bank of India
[C]       State Bank of India
[D]       Allahabad Bank

Correct Answer: D [Allahabad Bank]

9. The competitive devaluation by the countries would badly affect which among the following?

[A]       Exporters
[B]       Importers
[C]       Traders
[D]       Service Providers

Correct Answer: A [Exporters]

When competitors devalue their respective currencies, domestic exporters tend to lose out on the price advantage on their exportable as buyers prefer to buy from a cheaper currency. This in turn hurts income as well as the jobs in the export sector and the prospects for the economy. The central bank at such times tries to intervene – buy dollars and create an artificial demand for the dollar, devaluing the value of the rupee in the process and retain some price advantage for the exporter . But buying dollars involves a fiscal cost as the central bank has to pump in equivalent amount of rupees and again mop it up by selling bonds. These bonds need to be serviced by the government. This would in turn worsen the fiscal position.

10. Which among the following correctly denotes the Primary Deficit?

[A]       Revenue Expenditure – Revenue Receipts
[B]      Sum of the net increase in holdings of treasury bills of the RBI and its contributions to the market                             borrowing of the government.
[C]       Budgetary Deficit + Govt. market borrowings and     liabilities
[D]      Fiscal Deficit – Interest Payments

Correct Answer: D [Fiscal Deficit – Interest Payments]

The fiscal deficit may be decomposed into primary deficit and interest payment. The primary deficit is obtained by deducting interest payments from the fiscal deficit. Thus, primary deficit is equal to fiscal deficit less interest payments. It indicates the real position of the government finances as it excludes the interest burden of the loans taken in the past.

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