Welcome to the Indian Economy Quiz 2026! Test your knowledge of India’s economic system, policies, institutions, and key economic indicators with these 10 MCQs. Each question includes detailed explanations.
- What is the current name of the Planning Commission of India? A) Finance Commission B) NITI Aayog C) Economic Advisory Council D) Development Council Answer: B) NITI Aayog Explanation: The Planning Commission was replaced by NITI Aayog (National Institution for Transforming India) on January 1, 2015.
- Which institution is known as the lender of last resort in India? A) State Bank of India B) Reserve Bank of India C) Industrial Development Bank of India D) Export-Import Bank Answer: B) Reserve Bank of India Explanation: The Reserve Bank of India (RBI) is the lender of last resort for banks in India, providing funds in times of crisis.
- What does GDP stand for? A) Gross Domestic Production B) General Domestic Product C) Gross Domestic Product D) Gross Development Product Answer: C) Gross Domestic Product Explanation: GDP stands for Gross Domestic Product, which measures the total value of goods and services produced within a country.
- Which sector contributes the most to India’s GDP? A) Agriculture B) Industry C) Services D) Manufacturing Answer: C) Services Explanation: The services sector contributes more than 50% to India’s GDP, making it the largest sector of the Indian economy.
- When was the Goods and Services Tax (GST) implemented in India? A) July 1, 2016 B) July 1, 2017 C) January 1, 2018 D) April 1, 2017 Answer: B) July 1, 2017 Explanation: GST was implemented in India on July 1, 2017, replacing multiple indirect taxes with a unified tax system.
- What is the minimum age to become a Member of Parliament in Lok Sabha? A) 21 years B) 25 years C) 30 years D) 35 years Answer: B) 25 years Explanation: The minimum age to become a Member of Parliament in Lok Sabha is 25 years, as per the Constitution of India.
- Which bank is known as the banker’s bank in India? A) State Bank of India B) Reserve Bank of India C) Bank of India D) Central Bank of India Answer: B) Reserve Bank of India Explanation: The RBI is called the banker’s bank because it provides banking services to commercial banks and maintains their accounts.
- What does FDI stand for? A) Foreign Direct Investment B) Foreign Development Initiative C) Financial Direct Investment D) Foreign Deposit Institution Answer: A) Foreign Direct Investment Explanation: FDI stands for Foreign Direct Investment, which refers to investment made by a company or individual in one country into business interests in another country.
- Which is the largest stock exchange in India? A) National Stock Exchange (NSE) B) Bombay Stock Exchange (BSE) C) Calcutta Stock Exchange D) Delhi Stock Exchange Answer: A) National Stock Exchange (NSE) Explanation: The NSE is the largest stock exchange in India by market capitalization and trading volume.
- What is the currency of India? A) Rupee B) Dollar C) Pound D) Euro Answer: A) Rupee Explanation: The Indian Rupee (INR) is the official currency of India, issued and regulated by the Reserve Bank of India.
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