Economics Multiple Choice Questions

Q61. In India, M3 includes       [UPPCS (Mains) 2008]

(A) time deposits with banks
(B) demand deposits with banks
(C) currency with the public
(D) All of the above

Ans:(D) All of the above


Q62. The sum of which of the following constitutes Broad Money in India?
1. Currency with public
2. Demand deposits with banks
3. Time deposits with banks
4. Other deposits with RBI
Choose the correct answer using the codes given below.     [UPSC (Pre) 1997]

(A) 1 and 2
(B) 1, 2 and 3
(C) 1, 2, 3 and 4
(D) 1, 2 and 4

Ans:(C) 1, 2, 3 and 4


Q63. When the exchange rate changes from 1 $ = 60 to 1 $ = 58, it means
1. Rupee value has appreciated
2. Dollar value has depreciated
3. Rupee value has depreciated
4. Dollar value has appreciated
Which of the statement(s) given above is/are correct?
[Karnataka PSC (Pre) 2017 UKPCS (Pre) 2014]

(A) 1 and 2 are correct
(B) 2 and 3 are correct
(C) 1 and 4 are correct
(D) 2 and 4 are correct

Ans:(A) 1 and 2 are correct


Q64. The Indian rupee was made convertible into which of the following accounts since March 1993?    [UKPCS (Pre) 2014]

(A) Capital Account
(B) Current Account
(C) Both (A) and (B)
(D) Revenue Account

Ans:(B) Current Account


Q65. Indian rupee had been made fully convertible on    [UPPCS (Pre) 1995]

(A) current account on March 1, 1993
(B) current account in August, 1994
(C) capital account in August, 1994
(D) current account in April, 1995

Ans:(A) current account on March 1, 1993


Q66. Convertibility of the rupee implies    [BPSC (Pre) 2015]


(A) being able to convert rupee notes into gold
(B) freely permitting the conversion of rupee to other major currencies and vice-versa
(C) allowing the value of the rupee to be fixed by market forces
(D) developing an international market of currencies in India

Ans:(B) freely permitting the conversion of rupee to other major currencies and vice-versa


Q67. Which of the following is/are treated as artificial currency?     [HCS (Pre) 2014]

(D) Both ADR and GDR

Ans:(B) SDR


Q68. The one rupee Indian note bears the signature of     [BPSC (Pre) 2008 UKPCS (Mains) 2011]

(A) Governor, Reserve Bank of India
(B) Secretary, Ministry of Finance
(C) Finance Minister
(D) None of the above

Ans:(B) Secretary, Ministry of Finance


Q69. In which year the export-import (EXIM) Bank in India was set up?      [UKPCS (Pre) 2011]

(A) 1980
(B) 1982
(C) 1981
(D) 1989

Ans:(B) 1982


Q70. In India, the interest rate on savings accounts in all the nationalised commercial banks is fixed by    [UPSC (Pre) 2010]

(A) Union Ministry of Finance
(B) Union Finance Commission
(C) Indian Bank’s Association
(D) Banks itself

Ans:(D) Banks itself


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Read More Sections of Indian Economy Objective Questions

Each section contains maximum 80 Questions. To practice more questions visit other sections.

 Indian Economy Objective Questions – Section-1


 Indian Economy Objective Questions – Section-2


 Indian Economy Objective Questions – Section-3


 Indian Economy Objective Questions – Section-4


 Indian Economy Objective Questions – Section-5


 Indian Economy Objective Questions – Section-6

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