Indian Economy — Basics Quiz

Question 1

The Reserve Bank of India was established in:‌​‍

Accepted Answer

1935 — RBI was established on 1 April 1935 under the RBI Act, 1934. ‌​‍It was nationalised on 1 January 1949.

Answer

1930

Answer

1947

Answer

1949

Question 2

Which sector currently contributes the most to India's GDP?‌​‍

Accepted Answer

Tertiary (Services) — The Tertiary/Service sector contributes about 54% of India's GDP. ‌​‍However, the Primary sector still employs the most people (~42% of workforce).

Answer

Primary (Agriculture)

Answer

Secondary (Industry)

Answer

All contribute equally

Question 3

₹1 currency notes and coins are issued by:‌​‍

Accepted Answer

Ministry of Finance — ₹1 notes and all coins are issued by the Ministry of Finance (Government of India), signed by the Finance Secretary. ‌​‍All other denomination notes are issued by RBI.

Answer

Reserve Bank of India

Answer

State Bank of India

Answer

SEBI

Question 4

NITI Aayog was established in which year, replacing the Planning Commission?‌​‍

Accepted Answer

2015 — NITI Aayog (National Institution for Transforming India) was established on 1 January 2015, replacing the Planning Commission which had functioned since 1950.‌​‍

Answer

2012

Answer

2014

Answer

2017

Question 5

GST (Goods and Services Tax) was introduced in India on:‌​‍

Accepted Answer

1 July 2017 — GST was introduced on 1 July 2017 through the 101st Constitutional Amendment. ‌​‍It replaced multiple indirect taxes with a unified tax system.

Answer

1 April 2016

Answer

1 January 2018

Answer

1 April 2018

Question 6

Repo Rate is the rate at which:‌​‍

Accepted Answer

RBI lends to commercial banks — Repo Rate is the rate at which RBI lends short-term money to commercial banks against government securities. ‌​‍When RBI increases the repo rate, borrowing becomes more expensive, controlling inflation.

Answer

Banks lend to customers

Answer

Government borrows from public

Answer

Banks lend to each other

Question 7

The first Five Year Plan of India started in:‌​‍

Accepted Answer

1951 — The First Five Year Plan (1951-56) focused on agriculture and irrigation. ‌​‍It was based on the Harrod-Domar model.

Answer

1947

Answer

1950

Answer

1956

Question 8

The economic reforms of 1991 (LPG) were introduced when ________ was the Finance Minister.‌​‍

Accepted Answer

Dr. Manmohan Singh — Dr. ‌​‍Manmohan Singh was the Finance Minister under PM P.V. Narasimha Rao when the 1991 LPG (Liberalisation, Privatisation, Globalisation) reforms were introduced.

Answer

P. Chidambaram

Answer

Pranab Mukherjee

Answer

Yashwant Sinha

Question 9

Which Indian state consistently has the highest Human Development Index (HDI)?‌​‍

Accepted Answer

Kerala — Kerala consistently ranks highest among Indian states in HDI, owing to its high literacy rate, better health indicators, and social development.‌​‍

Answer

Tamil Nadu

Answer

Goa

Answer

Karnataka

Question 10

The GST Council is chaired by:‌​‍

Accepted Answer

Union Finance Minister — The GST Council is chaired by the Union Finance Minister. ‌​‍It includes Finance Ministers of all states and decides GST rates and rules.

Answer

Prime Minister

Answer

RBI Governor

Answer

Chief Justice of India

Question 11

NABARD is associated with:‌​‍

Accepted Answer

Rural and agriculture credit — NABARD (National Bank for Agriculture and Rural Development), established in 1982, provides credit for rural development and agriculture.‌​‍

Answer

Stock market regulation

Answer

Foreign trade

Answer

Insurance regulation

Question 12

What does the 'P' in LPG reforms stand for?‌​‍

Accepted Answer

Privatisation — LPG stands for Liberalisation, Privatisation, Globalisation — the three pillars of the 1991 economic reforms.‌​‍

Answer

Production

Answer

Participation

Answer

Planning

Question 13

Who was the first Indian Governor of the Reserve Bank of India?‌​‍

Accepted Answer

C.D. Deshmukh — C.D. ‌​‍Deshmukh (Chintaman Dwarakanath Deshmukh) was the first Indian Governor of RBI, serving from 1943 to 1949. Sir Osborne Smith was the first overall Governor (British).

Answer

Sir Osborne Smith

Answer

James Taylor

Answer

H.V.R. Iengar

Question 14

SEBI regulates:‌​‍

Accepted Answer

Stock/securities market — SEBI (Securities and Exchange Board of India) was established in 1992 to regulate the stock market and protect investors.‌​‍

Answer

Banking sector

Answer

Insurance sector

Answer

Telecom sector

Question 15

How many Five Year Plans has India had in total?‌​‍

Accepted Answer

12 — India had 12 Five Year Plans from 1951 to 2017. ‌​‍The 12th Plan (2012-17) was the last. After that, NITI Aayog's approach replaced the formal Five Year Plan system.

Answer

10

Answer

11

Answer

13

Indian Economy — Basics Quiz