50 GK Questions on Indian Economy and Finance — Quiz with Answers

India's economy is one of the fastest-growing in the world, with a complex history and a promising future. From its agricultural roots to a modern, service-based powerhouse, the Indian financial landscape is a subject of immense importance for students and professionals alike. This quiz will test your knowledge on key concepts, institutions, and milestones that define the Indian economy. Explore topics ranging from fiscal policy and banking to major reforms and economic indicators. Get ready to challenge your understanding of India's financial system and economic journey!

50 GK Quiz Questions on Indian Economy

1. Who is the head of the Reserve Bank of India (RBI)?

• A. Governor
• B. President
• C. Prime Minister
• D. Finance Minister

2. What is the full form of GDP?

• A. Gross Domestic Product
• B. General Domestic Policy
• C. Gross Domestic Product
• D. Government Development Project

3. The term 'SENSEX' is associated with which market?

• A. Commodity market
• B. Stock market
• C. Forex market
• D. Money market

4. Which of the following is not a direct tax?

• A. Income Tax
• B. Corporate Tax
• C. Wealth Tax
• D. Goods and Services Tax (GST)

5. Which organization controls the stock market in India?

• A. SEBI
• B. RBI
• C. PFRDA
• D. IRDAI

6. What is the full form of 'NEFT' in banking?

• A. National Electronic Financial Transfer
• B. National Electronic Funds Transfer
• C. National Economy Funds Transfer
• D. New Electronic Funds Transfer

7. The 'Pink Revolution' is associated with the production of which item?

• A. Grapes
• B. Onions
• C. Prawns
• D. Meat

8. What is the name of the official currency of India?

• A. Rupee
• B. Dollar
• C. Euro
• D. Yen

Indian Economy and Finance Quiz for Competitive Exams

9. What is 'fiscal deficit'?

• A. The total revenue of the government
• B. The excess of total expenditure over total receipts
• C. The total debt of the country
• D. The total profit of the government

10. Who prepares the Union Budget of India?

• A. The President
• B. The Prime Minister
• C. The Finance Minister
• D. The RBI Governor

11. Which bank is known as the 'Banker's Bank' in India?

• A. Reserve Bank of India
• B. State Bank of India
• C. Punjab National Bank
• D. Bank of Baroda

12. What does 'inflation' mean?

• A. A decrease in the general price level of goods and services
• B. An increase in the value of money
• C. A decrease in the supply of money
• D. A sustained increase in the general price level of goods and services

13. The 'Repo Rate' is a tool of which policy?

• A. Fiscal Policy
• B. Monetary Policy
• C. Trade Policy
• D. Industrial Policy

14. The term 'disinvestment' is related to:

• A. Buying shares of a company
• B. Investing in a new project
• C. The sale or liquidation of a government-owned asset
• D. The nationalization of a company

15. Which of the following is the largest public sector bank in India?

• A. State Bank of India
• B. Punjab National Bank
• C. Bank of Baroda
• D. Canara Bank

16. The 'Green Revolution' is primarily concerned with which sector?

• A. Industry
• B. Services
• C. Transport
• D. Agriculture

Multiple Choice Questions on Banking and Finance in India

17. The 'Repo Rate' is the rate at which the RBI:

• A. Lends money to commercial banks
• B. Borrows money from commercial banks
• C. Lends money to the public
• D. Borrows money from the government

18. What is the full form of 'IFSC' in banking?

• A. Indian Financial Security Code
• B. International Financial System Code
• C. Indian Financial System Code
• D. Internal Financial Security Code

19. Which city is known as the 'Financial Capital of India'?

• A. New Delhi
• B. Mumbai
• C. Kolkata
• D. Chennai

20. What is 'GNP'?

• A. Gross National Purchase
• B. Government National Product
• C. Gross National Production
• D. Gross National Product

21. 'PAN' is a unique identification number. What is its full form?

• A. Personal Account Number
• B. Public Account Number
• C. Permanent Account Number
• D. Private Account Number

22. Which of the following is a tax on goods and services at each stage of production?

• A. VAT
• B. Income Tax
• C. Customs Duty
• D. Excise Duty

23. Who is the Chairman of the NITI Aayog?

• A. The President of India
• B. The Prime Minister of India
• C. The Finance Minister of India
• D. The Home Minister of India

24. The term 'Blue Economy' refers to the sustainable use of which resource?

• A. Forests
• B. Land
• C. Minerals
• D. Oceans

General Knowledge Quiz on Indian Economy and Growth

25. What does the 'Poverty Line' in economics signify?

• A. The minimum income required to meet basic needs
• B. The maximum income limit for a family
• C. The average income of a country
• D. The total debt of an individual

26. What does 'FDI' stand for?

• A. Fixed Deposit in India
• B. Financial Development Institution
• C. Foreign Direct Investment
• D. Fiscal Debt and Investment

27. Which sector is the largest contributor to India's GDP?

• A. Agriculture
• B. Services
• C. Industry
• D. Mining

28. The 'Fiscal Policy' of India is framed by:

• A. The Reserve Bank of India
• B. The Planning Commission (now NITI Aayog)
• C. The Ministry of Finance
• D. The Prime Minister's Office

29. What is 'Demonetization'?

• A. The act of stripping a currency unit of its status as legal tender
• B. The process of printing new currency notes
• C. The process of increasing the value of a currency
• D. The process of decreasing the value of a currency

30. The term 'Balance of Payments' is related to:

• A. The balance in a bank account
• B. The record of all economic transactions between residents of a country and the rest of the world
• C. The balance of a company's accounts
• D. The balance of a government's budget

31. The 'White Revolution' is related to which product?

• A. Cotton
• B. Wheat
• C. Fish
• D. Milk

32. What is the main objective of the 'Public Distribution System' (PDS) in India?

• A. To provide loans to farmers
• B. To provide employment to the poor
• C. To distribute essential food grains to the poor at subsidized prices
• D. To provide free education to children

Economic Reforms and Indian Financial System Quiz

33. In which year did India introduce major economic reforms (LPG reforms)?

• A. 1985
• B. 1991
• C. 2000
• D. 2005

34. What is the full form of 'GST'?

• A. Goods and Services Tax
• B. Government Sales Tax
• C. General Services and Tax
• D. Goods and Standard Tax

35. 'Poverty and Un-British Rule in India' was authored by:

• A. Mahatma Gandhi
• B. Jawaharlal Nehru
• C. Dadabhai Naoroji
• D. B.R. Ambedkar

36. What is the minimum age for a person to be eligible for a bank account in India?

• A. 12 years
• B. 14 years
• C. 16 years
• D. No minimum age, but a guardian is required for minors

37. What is 'Stagflation'?

• A. A period of high inflation and high unemployment
• B. A period of low inflation and low unemployment
• C. A period of high economic growth and low inflation
• D. A period of low economic growth and high inflation

38. The 'Monetary Policy Committee' is headed by:

• A. The Finance Minister
• B. The RBI Governor
• C. The Prime Minister
• D. The Chairman of SEBI

39. Which of the following is an indirect tax?

• A. Income tax
• B. Corporate tax
• C. Customs duty
• D. Wealth tax

40. The 'Jan Dhan Yojana' is a government scheme for:

• A. Providing loans to farmers
• B. Providing subsidized food grains
• C. Providing free health insurance
• D. Financial inclusion and banking services for the unbanked

MCQ Quiz with Answers on Indian Economy and Finance

41. What is the full form of 'RTGS'?

• A. Real Time Gross Settlement
• B. Rupee Transfer Government Scheme
• C. Real Time Government Settlement
• D. Reserve Transfer Gross Settlement

42. The 'SEBI' was established in which year?

• A. 1988
• B. 1990
• C. 1992
• D. 1995

43. What is the primary function of the 'Food Corporation of India' (FCI)?

• A. To export food grains
• B. To procure and distribute food grains for the Public Distribution System
• C. To provide loans to farmers
• D. To regulate the food processing industry

44. What does the term 'Bear' signify in the stock market?

• A. An investor who expects prices to rise
• B. A long-term investor
• C. An investor who sells a large number of shares
• D. An investor who expects prices to fall

45. What is the name of India's first ever financial literacy program?

• A. Project Financial Literacy (Project FLAP)
• B. Gyan Prabodh
• C. Gramin Bank Yojana
• D. Dhan Shiksha Abhiyan

46. 'Fiscal Policy' is a policy concerned with:

• A. Money supply and interest rates
• B. Government revenue and expenditure
• C. Foreign exchange rates
• D. Stock market regulations

47. What does the term 'Deflation' mean?

• A. A sustained increase in the general price level
• B. A period of low economic growth
• C. A sustained decrease in the general price level
• D. A period of high unemployment

48. Which is the apex body for agricultural loans in India?

• A. NABARD
• B. SBI
• C. RBI
• D. FCI

49. The 'Minimum Support Price' (MSP) is announced by the government to protect the interests of which group?

• A. Industrialists
• B. Farmers
• C. Traders
• D. Consumers

50. The term 'Repo Rate' is a tool of which body?

• A. Ministry of Finance
• B. NITI Aayog
• C. Reserve Bank of India
• D. SEBI