Indian Economy MCQs

Poverty & Unemployment, Monetary Policy, Taxation, Fiscal Policy, Inflation, Banking System, Indian Planning & NITI Aayog

1. Which institution is responsible for formulating India’s Monetary Policy?
A. Ministry of Finance
B. RBI
C. NITI Aayog
D. SEBI
Answer: B

2. The Monetary Policy Committee (MPC) consists of:
A. 5 members
B. 6 members
C. 7 members
D. 9 members
Answer: B

3. Which rate is the rate at which the RBI lends money to commercial banks?
A. Reverse Repo Rate
B. Repo Rate
C. Bank Rate
D. MSF Rate
Answer: B

4. Which rate is the rate at which the RBI borrows money from commercial banks?
A. Repo Rate
B. Reverse Repo Rate
C. Bank Rate
D. SLR
Answer: B

5. An increase in the Repo Rate generally:
A. Increases inflation
B. Reduces borrowing and inflation
C. Increases money supply
D. Reduces interest rates
Answer: B

6. CRR stands for:
A. Cash Reserve Ratio
B. Capital Reserve Ratio
C. Credit Reserve Ratio
D. Cash Recovery Ratio
Answer: A

7. SLR stands for:
A. Statutory Liquidity Ratio
B. Standard Liquidity Ratio
C. State Liquidity Ratio
D. Secure Liquidity Reserve
Answer: A

8. Which institution issues currency notes in India (except ₹1 note)?
A. Ministry of Finance
B. RBI
C. SEBI
D. SBI
Answer: B

9. The Reserve Bank of India was established in:
A. 1934
B. 1935
C. 1947
D. 1950
Answer: B

10. RBI was nationalised in:
A. 1935
B. 1947
C. 1949
D. 1951
Answer: C