Gk Question and answer , Indian Economy – General Knowledge MCQs

1.Which of the following items is characterized by highest income elasticity of demand among others?

[A] Car
[B] Milk
[C] Paddy
[D] Tobacco

Correct Answer: A [ Car ]

2.Approximately, what fraction of market capitalization of the Bombay Stock Exchange is accounted by the 30 stocks of the BSE SENSEX?

[A] 10%
[B] 20%
[C] 30%
[D] 40%

Correct Answer: B [20%]

3.Which among the following is the largest export market for India, for its marine products?

[B] EU
[C] China
[D] Japan

Correct Answer: B [EU]

4.Progressive Taxation is most closely associated to the base which the tax proposals are generally developed is __?

[A] Expediency Theory
[B] Cost of service approach
[C] Ability to pay approach
[D] Concentration approach

Correct Answer: C [Ability to pay approach]

5.Which among the following phrases generally denotes National Income?

[A] Gross National Product at Market Prices
[B] Net National Product at Market Prices
[C] Gross National Product at Factor Cost
[D] Net National Product at Factor Cost

Correct Answer: D [Net National Product at Factor Cost]

6.Which among the following taxes is levied by state government only?

[A] Wealth Tax
[B] Estate Duty
[C] Corporation tax
[D] Entertainment Tax

Correct Answer: D [Entertainment Tax]

7.Which among the following maintains Real Time Gross Settlement?

[A] Reserve Bank of India
[B] Asian Development Bank
[C] World Bank
[D] State Bank of India

Correct Answer: A [Reserve Bank of India]

8.In which year Tax Reforms committee was constituted by Government of India?

[A] 1975
[B] 1980
[C] 1991
[D] 1995

Correct Answer: C [1991]

9.In an inflationary trend, the pricing of the bank products are:

[A] At increasing trend
[B] At decreasing trend
[C] No relevance of Inflation
[D] Constant

Correct Answer: A [At increasing trend]

10.Which of the following rates is used by banks in India as a reference to price the rupee loans and advances

[A] Bank Rate
[B] Base Rate
[C] MCLR Rate
[D] Repo Rate

Correct Answer: C [ MCLR Rate ]