Question 1

If a country's GNP is ₹50 lakh crore and Net Factor Income from Abroad (NFIA) is ₹5 lakh crore, what is its GDP?

Accepted Answer

GDP = GNP - NFIA, so ₹50 lakh crore - ₹5 lakh crore = ₹45 lakh crore.

Question 2

Which international organisation was established in 1995 to regulate trade between member nations and resolve trade disputes?

Accepted Answer

The WTO was founded in 1995 and replaced GATT; it oversees global trade agreements and settles disputes between nations.

Question 3

Which of the following is the correct formula for calculating Gross Domestic Product (GDP) using the expenditure approach?

Accepted Answer

GDP by expenditure method = Consumption (C) + Investment (I) + Government spending (G) + Net Exports (X - M), where X is exports and M is imports.

Question 4

The Union Budget is typically presented in Parliament in which month?

Accepted Answer

The Union Budget is presented in February each year, with the financial year running from April to March.

Question 5

Which organization supervises and regulates NBFCs in India?

Accepted Answer

The RBI is the regulatory authority responsible for supervision and oversight of NBFCs to ensure financial stability and consumer protection.

Question 6

Which international organisation is responsible for maintaining international peace and security, and India is a permanent member of its Security Council?

Accepted Answer

The United Nations Organisation has a Security Council with five permanent members (P5), including India's seat since 2021 as a non-permanent member; India is a key stakeholder in international peace operations.

Question 7

A fiscal deficit occurs when a government's expenditure exceeds its revenue. In the context of India's defence spending, which statement is correct?

Accepted Answer

Defence expenditure is a major component of total government expenditure and is fully included in fiscal deficit calculations.

Question 8

Which Five Year Plan was the first to be launched in independent India?

Accepted Answer

The First Five Year Plan (1951-1956) was India's first development plan launched under PM Jawaharlal Nehru.

Question 9

Which of the following is the primary function of the Reserve Bank of India (RBI)?

Accepted Answer

The RBI is India's central bank responsible for monetary policy, regulation of banks, and control of the money supply.

Question 10

As of the latest economic data, India's position in the world economy by GDP (nominal) is approximately which rank?

Accepted Answer

India is the 5th largest economy in the world by nominal GDP, after the USA, China, Germany, and Japan.

Question 11

Which of the following sectors contributes the largest share to India's Gross Domestic Product (GDP)?

Accepted Answer

The Services sector, including IT and software services, is the largest contributor to India's GDP, accounting for over 55% of total output.

Question 12

India's per capita income is classified under which income category by the World Bank?

Accepted Answer

India is classified as an upper-middle-income country by the World Bank based on its per capita income crossing the threshold in recent years.

Question 13

When the general price level of goods and services in an economy increases by 8% in one year, what is this phenomenon called?

Accepted Answer

Inflation is the sustained increase in the general price level of goods and services in an economy over a period of time.

Question 14

India is a founding member of which international organisation established in 1961 to promote cooperation among non-aligned countries?

Accepted Answer

The Non-Aligned Movement was founded in 1961 at Belgrade; India played a key role under Prime Minister Jawaharlal Nehru in establishing this platform for countries independent of Cold War blocs.

Question 15

What is the key difference between a Bank and an NBFC (Non-Banking Financial Company)?

Accepted Answer

Banks are licensed to accept deposits (especially demand deposits like savings accounts) from the public, while NBFCs cannot accept demand deposits despite providing credit facilities.

Question 16

Which of the following is a monetary policy tool used by the Reserve Bank of India to control inflation?

Accepted Answer

The Repo Rate is the key RBI monetary policy rate; raising it reduces money supply and helps control inflation.

Question 17

In which year was NITI Aayog (National Institution for Transforming India) established to replace the Planning Commission?

Accepted Answer

NITI Aayog was officially established on January 1, 2015, as the successor to the Planning Commission.

Question 18

The Fifth Five Year Plan of India was launched in which year?

Accepted Answer

The Fifth Five Year Plan was launched in 1977 after a gap, following the emergency period of 1975-1977.

Question 19

Which of the following is the primary objective of India's Public Distribution System (PDS)?

Accepted Answer

The PDS is a food security scheme that distributes foodgrains and essentials like rice, wheat, and sugar to economically weaker sections at controlled prices.

Question 20

If India's total exports are ₹500,000 crore and total imports are ₹520,000 crore in a financial year, what is India's trade balance?

Accepted Answer

Trade balance = Exports − Imports = 500,000 − 520,000 = −20,000 crore, which is a trade deficit.

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