Indian Economy MCQs

41. MGNREGA primarily aims to:
A. Increase exports
B. Provide wage employment in rural areas
C. Promote higher education
D. Encourage foreign investment
Answer: B

42. The full form of MGNREGA is:
A. Mahatma Gandhi National Rural Employment Guarantee Act
B. Mahatma Gandhi National Road Employment Act
C. National Rural Employment Scheme
D. Mahatma Gandhi National Revenue Guarantee Act
Answer: A

43. Which indicator measures average income per person?
A. GDP
B. Per Capita Income
C. Fiscal Deficit
D. Inflation Rate
Answer: B

44. Which policy is mainly used by the RBI to control inflation?
A. Fiscal Policy
B. Monetary Policy
C. Industrial Policy
D. Trade Policy
Answer: B

45. Which policy is mainly used by the Government to influence aggregate demand through taxation and expenditure?
A. Monetary Policy
B. Fiscal Policy
C. Foreign Policy
D. Population Policy
Answer: B

46. Which of the following is a direct tax?
A. GST
B. Customs Duty
C. Income Tax
D. Excise Duty (on applicable goods)
Answer: C

47. Which of the following institutions regulates the banking system in India?
A. SEBI
B. RBI
C. NABARD
D. IRDAI
Answer: B

48. Which institution promotes cooperative federalism in economic planning?
A. RBI
B. NITI Aayog
C. GST Council
D. SEBI
Answer: B

49. Which of the following statements is correct?
A. Monetary Policy is formulated by the Ministry of Finance.
B. Fiscal Policy is formulated by the RBI.
C. The RBI formulates Monetary Policy, while the Government formulates Fiscal Policy.
D. Both Monetary and Fiscal Policies are formulated by NITI Aayog.
Answer: C

50. Which of the following statements is correct?
A. GST is a direct tax.
B. NITI Aayog replaced the Planning Commission in 2015, and the RBI is India’s central bank responsible for monetary policy.
C. Inflation always increases employment.
D. Fiscal Policy is implemented by the Election Commission.
Answer: B