Indian Economy-GK Practice MCQ Questions – 07 Posted on July 15, 2020December 20, 2020 by admin Question 1In India, the first bank of limited liability managed by Indians and founded in 1881 was A. Hindustan Commercial Bank B. Oudh Commercial Bank C. Punjab National Bank D. Punjab and Sind Bank Question 2Fiscal deficit in the Union Budget means A. the difference between current expenditure and current revenue B. net increase in Union Governments borrowings from the Reserve Bank of India C. the sum of budgetary deficit and net increase in internal and external borrowings D. the sum of monetized deficit and budgetary deficit Question 3If the fiscal deficit of the Union Government is Rs. 75,000 crores relending to State is Rs. 25,000 crores, interest payments are Rs. 25,000 crores, what is the amount of the primary deficit? A. Rs. 50,000 crores B. Rs. 25,000 crores C. Rs. 1,00,000 crores D. Rs. 1,25,000 crores Question 4Subsidies mean A. payment by government for purchase of goods and services B. payment made by business enterprises to factors of production C. payment made by companies to shareholders D. payment made by the government to business enterprises, without buying any goods and services Question 5How many banks were nationalized in 1969? A. 16 B. 14 C. 15 D. 20 Question 6The annual yield from which of the following Union Government taxes is the highest? A. Custom duties B. Corporation tax and income tax C. Inheritance tax, wealth tax, interest tax and gift tax D. Excise duties Question 7Resurgent India bonds were issued in US dollar, Pound Sterling and A. Japanese Yen B. Deutsche Mark C. Euro D. French Franc Question 8The average rate of domestic savings (gross) for the Indian economy is currently estimated to be in the range of A. 15 to 20 percent B. 20 to 25 percent C. 25 to 30 percent D. 30 to 35 percent Question 9National expenditure includes A. consumption expenditure B. investment expenditure C. government expenditure D. All of the above Question 10In India, inflation measured by the A. Wholesale Price Index number B. Consumers Price Index for urban non-manual workers C. Consumers Price Index for agricultural workers D. National Income Deflation