Indian Economy MCQs - Set 9

1)   What is the contribution of FMCG to the GDP of India?

a. 15%
b. 10%
c. 5%
d. 20%
Answer  Explanation 

ANSWER: 10%

Explanation:
The contribution of FMCG to GDP is 10%. It is one of the fastest-growing sector and 4th largest sector in India.


2)   How many permanent members are there in the Washington accord?

a. 10
b. 20
c. 16
d. 13
Answer  Explanation 

ANSWER: 20

Explanation:
The Washington Accord is an is an elite international agreement on engineering studies and the mobility of engineers. There are 20 permanent signatories to the Washington Accord.


3)   What is the contribution of Gems and jewellery to Indian GDP?

a. 13%
b. 4%
c. 16%
d. 7%
Answer  Explanation 

ANSWER: 7%

Explanation:
The gems and jewelry plays an important role in the development of Indian economy. It contributes about 7% to Indian GDP. India is the leading exporter of processed diamonds in the world.


4)   Hoe many pharmaceutical generic brand are there in India?

a. 30000
b. 50000
c. 60000
d. None of the above
Answer  Explanation 

ANSWER: 60000

Explanation:
India is the source of 60,000 generic brands across 60 therapeutic categories and manufactures more than 500 different Active Pharmaceutical Ingredients (APIs).


5)   What is the rank of the construction sector in terms of FDI inflow into India?

a. 3
b. 4
c. 5
d. 6
Answer  Explanation 

ANSWER: 4

Explanation:
FDI in the sector (includes construction development and construction activities) stood at US$ 42.50 billion from April 2000 to March 2020. Construction sector is the fourth largest sector in terms of FDI inflow.


6)   Which country has the largest installed spindles in the world?

a. China
b. India
c. Bangladesh
d. Vietnam
Answer  Explanation 

ANSWER: China

Explanation:
China has the largest capacity of Installed spindles. India with 43.13 million spindles is at second place.
A spindle is a straight spike usually made from wood used for spinning, twisting fibres such as wool, flax, hemp, cotton into yarn.


7)   What is the total global export market value of Paper and its products?

a. US$ 190.2 billion
b. US$ 170.5 billion
c. US$ 100.22 billion
d. US$ 180.23 billion
Answer  Explanation 

ANSWER: US$ 170.5 billion

Explanation:
Global sales for paper exports by all country totaled US$170.5 billion in 2019. India alone exports 1490.8 million USD worth pape products.


8)   What is the share of FDI received by IT industry of India after 2000?

a. 17%
b. 9.5%
c. 14%
d. 20%
Answer  Explanation 

ANSWER: 9.5%

Explanation:
The IT industry has received large FDI from 2000-2020. It has received about 9.5% FDI out of the total FDI. It has received 44.9 bn.


9)   What is the share of Print media revenue in the total revenue of Media and Entertainment Industry?

a. 34%
b. 21%
c. 24%
d. 56%
Answer  Explanation 

ANSWER: 24%

Explanation:
The share of Print media revenue in the total revenue of Media and Entertainment Industry is 24%.The share of the Advertising industry in the overall Media and Entertainment Industry is 38.1%. The share of TV industry is 44.2%.


10)   What is second generation of ethanol?

a. ethanol produced from corn
b. ethanol prouced from sugarcane
c. ethanol produced from molasses
d. None of the above
Answer  Explanation 

ANSWER: ethanol produced from molasses

Explanation:
The first generation ethanol deals with the production of ethanol from food crops like corn and sugarcane. Whereas second-generation deals with ethanol production from non-food crops like molasses.


11)   What is the FDI allowed in Education sector in India?

a. 51%
b. 49%
c. 74%
d. 100%
Answer  Explanation 

ANSWER: 100%

Explanation:
Education is one of the top priorities of the government. Indian allows 100% FDI in education sector.


12)   Which hospital is first opened in India?

a. Kolkata hospital
b. Madras general hospital
c. King George Hospital
d. None of the above
Answer  Explanation 

ANSWER: Madras general hospital

Explanation:
The Madras general hospital is the first hospital opened in India. It was opened in 1664 in chennai.


13)   When was the Indian Newspaper Society Founded?

a. 1939
b. 1940
c. 1935
d. 1931
Answer  Explanation 

ANSWER: 1939

Explanation:
The Indian Newspaper Society (INS) was founded in 1939. It acts as the central organization of the Press of India is an independent body. It is an organization that plays a major role in protecting and promoting the freedom of the press in India. Its headquarters are at Rafi Marg, New Delhi.


14)   What is the contribution of the retail Industry to GDP of India?

a. 13%
b. 10%
c. 21%
d. 15%
Answer  Explanation 

ANSWER: 10%

Explanation:
The retail industry has been growing at a very fast rate. It is contributing 10% to the GDP of India.


15)   What is the maximum time for which a loan is lent in Money Market?

a. 6 months
b. 14 days
c. 1 year
d. 1 month
Answer  Explanation 

ANSWER: 1 year

Explanation:
The maximum time for which a loan is lent in the money market is 1 year. Above 1 year it is called capital market.


16)   Which among the following is the major functions of Money market in India?
1. Money Markets help in effective implementation of the RBI’s monetary policy
2. Money markets help to maintain demand and supply equilibrium with regard to short term funds.
3.They help in maintaining liquidity in the economy
Choose the correct option from the choices given below:


a. 1,2 and 3 only
b. 2 only
c. 1 and 3 only
d. 3 only
Answer  Explanation 

ANSWER: 1,2 and 3 only

Explanation:
The major function of the money markets is to cater to the short term financial needs of the economy. The other functions are as follows:
1. Money Markets help in effective implementation of the RBI’s monetary policy
2. Money markets help to maintain demand and supply equilibrium with regard to short term funds
3. They cater to the short term fund requirement of the governments
4. They help in maintaining liquidity in the economy


17)   How many times in a year does RBI release Monetary policy?

a. 3
b. 6
c. 4
d. 2
Answer  Explanation 

ANSWER: 6

Explanation:
RBI releases monetary policy once in 2 months. So the Monetary policy is a bi-monthly policy so it is released 6 times in a year.


18)   What is the minimum maturity period of capital market?

a. 2 years
b. 7 years
c. 1 year
d. 3 years
Answer  Explanation 

ANSWER: 1 year

Explanation:
The minimum maturity period of the capital market is 1 year. The demand comes from both government and private sector.


19)   When was SEBI act passed in parliament?

a. 1990
b. 1992
c. 1993
d. 1989
Answer  Explanation 

ANSWER: 1992

Explanation:
The Securities and Exchange Board of India (SEBI) is the regulator of the securities and commodity market in India owned by the Government of India. It was established on 12 April 1988 and given Statutory Powers on 30 January 1992 through the SEBI Act, 1992