Create a custom practice set
Pick category, difficulty, number of questions, and time limit. Start instantly with your own quiz.
Generate QuizEconomics – MCQ – GK Questions
Free practice for SSC, UPSC, Banking & Railway exams. No login required.
What is the primary objective of the e-NAM (National Agriculture Market) portal launched by the Government of India?
- To provide direct subsidies to farmers' bank accounts
- To create a unified national market for agricultural commodities by networking existing APMC mandis
- To export Indian agricultural produce to foreign markets exclusively
- To regulate the prices of fertilizers and seeds
Answer: To create a unified national market for agricultural commodities by networking existing APMC mandis
e-NAM is a pan-India electronic trading portal that networks the existing Agricultural Produce Market Committee (APMC) mandis. By enabling online bidding and transparent price discovery, it aims to break down interstate trade barriers, ensure farmers get better remunerative prices, and reduce the influence of middlemen.
The National Bank for Agriculture and Rural Development (NABARD) was established in 1982 based on the recommendations of which committee?
- Narasimham Committee
- Shivaraman Committee
- Rangarajan Committee
- Gadgil Study Group
Answer: Shivaraman Committee
NABARD was set up on July 12, 1982, to replace the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of the RBI, along with the Agricultural Refinance and Development Corporation (ARDC). The Shivaraman Committee recommended a single, dedicated apex institution to oversee and refinance rural credit delivery in India.
The 'Stand-Up India' scheme was launched to specifically promote entrepreneurship among:
- Only rural youth
- SC/ST and Women entrepreneurs
- Only tech startups
- Large corporate houses
Answer: SC/ST and Women entrepreneurs
Stand-Up India facilitates bank loans between Rs. 10 lakh and Rs. 1 crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch. The goal is to foster inclusive economic growth by supporting greenfield enterprises in the non-farm sector.
The 'Paradox of Thrift' states that if everyone tries to increase their savings simultaneously during a recession, the ultimate result will be:
- A massive increase in total national wealth
- A decrease in aggregate demand and total savings
- High economic growth
- Zero inflation
Answer: A decrease in aggregate demand and total savings
Proposed by Keynes, the paradox illustrates that while saving is virtuous for an individual, a collective increase in savings reduces consumption. This drops aggregate demand, leading to lower production, job losses, and ultimately a lower total income, meaning the economy's actual total savings end up falling.
What does the term 'Twin Deficit' refer to in the context of the Indian economy?
- High inflation and high unemployment
- Simultaneous Fiscal Deficit and Current Account Deficit
- Trade Deficit and Budget Deficit
- Revenue Deficit and Capital Deficit
Answer: Simultaneous Fiscal Deficit and Current Account Deficit
The Twin Deficit hypothesis suggests a strong link between a government's budget deficit (fiscal deficit) and the country's external trade deficit (CAD). High government borrowing increases domestic demand, which spills over into higher imports, thereby widening the Current Account Deficit.
A country's voting power and financial contribution quota in the International Monetary Fund (IMF) are primarily determined by its:
- Population size
- Geographical area
- Relative size in the global economy
- Military expenditure
Answer: Relative size in the global economy
The IMF uses a quota system based on a country's GDP, openness, economic variability, and international reserves. This quota determines how much the country must contribute to the IMF, its voting weight on the Executive Board, and the maximum financing it can access.
The Index of Industrial Production (IIP) is compiled and published monthly by which organization?
- Central Statistics Office (now NSO)
- Office of the Economic Adviser (OEA)
- NITI Aayog
- Department of Industrial Policy and Promotion
Answer: Central Statistics Office (now NSO)
The NSO (under MoSPI) releases the IIP data with a lag of six weeks from the reference month. It measures the short-term growth of a basket of industrial products, with manufacturing accounting for the vast majority (over 77%) of its total weight.
Regional Rural Banks (RRBs) in India were established primarily on the recommendations of which committee?
- Narasimham Committee
- Rangarajan Committee
- Shivaraman Committee
- Urjit Patel Committee
Answer: Narasimham Committee
The Narasimham Working Group (1975) recommended the creation of RRBs to bridge the credit gap in rural areas. They operate with a local orientation and lower cost structure, with their equity jointly held by the Government of India (50%), the concerned State Government (15%), and the Sponsor Bank (35%).
What is the specific sub-target for lending to the Agriculture sector under the Priority Sector Lending (PSL) guidelines for domestic banks?
- 10%
- 18%
- 25%
- 32%
Answer: 18%
Within the overall 40% PSL target, banks must allocate at least 18% of ANBC specifically to agriculture. Furthermore, 10% of ANBC must be directed towards small and marginal farmers, ensuring that the most vulnerable agrarian sections receive adequate institutional credit.
What is the primary objective of Open Market Operations (OMOs) conducted by the RBI?
- To regulate the stock market
- To manage durable liquidity in the banking system
- To fix the exchange rate of the Rupee
- To distribute government subsidies
Answer: To manage durable liquidity in the banking system
OMOs involve the outright sale or purchase of government securities by the RBI. Selling securities absorbs permanent (durable) liquidity from the market, while buying them injects liquidity. It is a primary tool for signaling the monetary policy stance over the medium term.
In which year did the Government of India announce the demonetization of Rs. 500 and Rs. 1000 currency notes?
- 2014
- 2015
- 2016
- 2017
Answer: 2016
Demonetization was announced on November 8, 2016, with the stated objectives of curbing black money, eliminating counterfeit currency, and pushing the economy towards digital payments. It resulted in 86% of the currency in circulation being temporarily withdrawn from the system.
Which component is added to M1 to derive the broad money measure, M3?
- Savings deposits with post offices
- Time deposits (fixed deposits) with banks
- Currency held in bank vaults
- Inter-bank call money
Answer: Time deposits (fixed deposits) with banks
M3, widely used for monetary policy analysis, is calculated as M1 plus time deposits held by the public with banks. While time deposits are less liquid than demand deposits because they have a fixed maturity period, they still represent a significant store of purchasing power in the economy.
According to Gresham's Law, what happens when two forms of commodity money with the same face value circulate simultaneously?
- Good money drives out bad money
- Bad money drives out good money
- Both circulate equally
- Both are hoarded
Answer: Bad money drives out good money
Gresham's Law states that if there are two forms of money in circulation with the same face value but different intrinsic values, people will hoard the 'good' money (higher intrinsic value, like gold) and spend the 'bad' money (lower intrinsic value). Consequently, the bad money dominates the market.
The 'Demographic Dividend' in India refers to the economic growth potential arising from a shift in the population structure where:
- The elderly population exceeds the youth population
- The working-age population is larger than the non-working-age dependent population
- The female workforce participation reaches 100%
- The rural population exceeds the urban population
Answer: The working-age population is larger than the non-working-age dependent population
India is currently experiencing a demographic dividend because its working-age population (15-59 years) is growing faster than its dependent population (children and elderly). To actually reap this dividend, however, the country must invest heavily in education, health, and job creation.
The Incremental Capital-Output Ratio (ICOR) is used to measure:
- The marginal efficiency of capital
- The efficiency of investment in generating additional output
- The depreciation rate of capital assets
- The ratio of foreign to domestic capital
Answer: The efficiency of investment in generating additional output
ICOR indicates how much additional capital is needed to produce one additional unit of output. A lower ICOR signifies high efficiency and productivity of investments, whereas a high ICOR indicates inefficiency, poor infrastructure, or technological bottlenecks in the economy.
The 'Make in India' initiative, aimed at transforming the country into a global design and manufacturing hub, was launched in which year?
- 2012
- 2014
- 2016
- 2018
Answer: 2014
Launched in September 2014, Make in India focuses on 25 key sectors of the economy. It aims to facilitate investment, foster innovation, enhance skill development, and build best-in-class manufacturing infrastructure to increase the manufacturing sector's share in GDP.
How many industries are classified as 'Core Industries' for the purpose of calculating the Index of Industrial Production (IIP) in India?
- 6
- 8
- 10
- 12
Answer: 8
The Eight Core Industries (Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity) comprise over 40% of the weight of the items included in the IIP. They are considered leading indicators of overall industrial and economic activity.
In Game Theory, a situation where no player has an incentive to change their strategy, given the strategy chosen by the other player, is called a:
- Zero-sum game
- Prisoner's Dilemma
- Nash Equilibrium
- Dominant Strategy
Answer: Nash Equilibrium
Named after mathematician John Nash, this equilibrium concept describes a stable state in a strategic interaction. Each player is making the best possible decision they can, taking into account the decisions of the other players, meaning no unilateral deviation is profitable.
The 'Market for Lemons' theory, which won George Akerlof a Nobel Prize, illustrates the concept of:
- Moral Hazard
- Adverse Selection
- Principal-Agent Problem
- Tragedy of the Commons
Answer: Adverse Selection
Akerlof used the used-car market to show how asymmetric information (sellers knowing more than buyers) leads to adverse selection. Buyers, fearing they will get a 'lemon' (bad car), offer low prices, which drives sellers of good cars out of the market, potentially causing market collapse.
The TRIPS agreement administered by the WTO primarily deals with:
- Trade in Services
- Trade-Related Investment Measures
- Trade-Related Aspects of Intellectual Property Rights
- Technical Barriers to Trade
Answer: Trade-Related Aspects of Intellectual Property Rights
TRIPS establishes minimum standards for the regulation of various forms of intellectual property (IP) rights, including patents, copyrights, and trademarks, as they apply to global trade. It has been a contentious issue, particularly regarding access to affordable pharmaceuticals in developing nations.