Indian Economy MCQs

11. Which is known as the ‘Banker’s Bank’?
A. SBI
B. NABARD
C. RBI
D. SIDBI
Answer: C

12. Which of the following is NOT a function of the RBI?
A. Issuing currency
B. Banker to the Government
C. Conducting Population Census
D. Regulating banks
Answer: C

13. Which of the following is India’s central bank?
A. SBI
B. RBI
C. NABARD
D. SEBI
Answer: B

14. Inflation means:
A. Continuous fall in prices
B. Continuous rise in general price level
C. Rise in production only
D. Increase in exports only
Answer: B

15. Deflation refers to:
A. Rise in prices
B. Fall in general price level
C. Increase in taxes
D. Increase in imports
Answer: B

16. Stagflation is a situation of:
A. High growth and low inflation
B. High inflation with high unemployment
C. Low inflation and high growth
D. High exports and low imports
Answer: B

17. Inflation in India is primarily measured for monetary policy using:
A. WPI
B. CPI (Combined)
C. GDP Deflator
D. IIP
Answer: B

18. Which organisation releases the Consumer Price Index (CPI)?
A. RBI
B. Ministry of Statistics and Programme Implementation (MoSPI)
C. NITI Aayog
D. SEBI
Answer: B

19. GST stands for:
A. General Sales Tax
B. Goods and Services Tax
C. Government Service Tax
D. Gross Service Tax
Answer: B

20. GST came into effect in India on:
A. 1 April 2016
B. 1 July 2017
C. 26 January 2017
D. 15 August 2017
Answer: B