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State PSC Indian Economy — practice questions

Explore 135 free Indian Economy questions in State PSC Economy. Open each question or exercise to read its content, reference answers and available explanation.

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Indian Economy questions and exercises with answers

Showing questions 1–30 of 135.

With reference to the Indian economy, “Collateral Borrowing and Lending Obligations” are the instruments of :Read the answer and worked solution →Complete the planning frameworkRead the answer and worked solution →True or false: five year plansRead the answer and worked solution →Planning in IndiaRead the answer and worked solution →Tap every goal of Indian planning named in the chapterRead the answer and worked solution →True or false: self-reliance and the Green RevolutionRead the answer and worked solution →Short horizon or long horizon?Read the answer and worked solution →Assertion and reasonRead the answer and worked solution →Two are true, one is notRead the answer and worked solution →Flip and pair: term with meaningRead the answer and worked solution →Spot the one that does not belongRead the answer and worked solution →Order the planning processRead the answer and worked solution →True or false: what a plan document containsRead the answer and worked solution →Which goal does this describe?Read the answer and worked solution →Reading the planning storyRead the answer and worked solution →Spot the one that does not belongRead the answer and worked solution →Growing cotton depends mainly on rainfall, sunshine and climate. Such activities belong to the:Read the answer and worked solution →Spinning yarn from cotton or making sugar from cane is an activity of the:Read the answer and worked solution →Transport, storage, banking and trade support production without making goods. They form the:Read the answer and worked solution →The tertiary sector is also called the:Read the answer and worked solution →Wheat sold to a mill and flour sold to a biscuit maker are examples of:Read the answer and worked solution →Only final goods are counted in GDP because the value of intermediate goods is:Read the answer and worked solution →The value of all final goods and services produced within a country in a year is its:Read the answer and worked solution →At the initial stages of development in now developed countries, the most important sector was:Read the answer and worked solution →In the past 100 years, developed countries have shifted from the secondary to the:Read the answer and worked solution →By 2013-14, which sector had become the largest producing sector in India?Read the answer and worked solution →More than half of India's workers are in the primary sector, yet it produces only about what share of GDP?Read the answer and worked solution →All five members of Laxmi's family work on two hectares, yet removing two would not cut output. This is:Read the answer and worked solution →A well on Laxmi's field could give two people work for how many days in a season?Read the answer and worked solution →Besides water, poor farmers need cheap ___ to improve farming.Read the answer and worked solution →

Worked practice questions

With reference to the Indian economy, “Collateral Borrowing and Lending Obligations” are the instruments of :

  1. Bond market
  2. Forex market
  3. Money market
  4. Stock market
Show answer and solution

Correct answer: C. Money market

Answer: C. Collateralized Borrowing and Lending Obligation (CBLO) is a MONEY MARKET instrument. CBLO is a money-market product introduced by Clearing Corporation of India Ltd (CCIL) in 2003 for short-term funds. It allows borrowing and lending against eligible collateral (mainly G-Secs) with maturities ranging from one day to one year. Discontinued in 2018 and replaced by the Tri-party Repo (TREPS). CBLO/TREPS are short-tenor instruments serving banks, mutual funds, insurance companies and other institutions for liquidity management. The money market deals with such short-term debt instruments (typically less than one year), as opposed to bond market (long-term debt), forex (currency), or stock market (equities). Source: RBI Money Market documentation / CCIL website.

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Complete the planning framework

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Missing parts
  1. Answer
    five
    Choices
    1. five
    2. three
    3. ten
  2. Answer
    Soviet Union
    Choices
    1. Soviet Union
    2. United States
    3. Japan
  3. Answer
    perspective
    Choices
    1. perspective
    2. annual
    3. rolling
Complete the statement
India's plans ran for {0} years each and were borrowed from the former {1}, the pioneer of national planning. The longer horizon they sat inside is called the {2} plan.
India borrowed the five year plan idea and set it inside a longer horizon. Source: syllabus Indian Economic Development, Ch 2.

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True or false: five year plans

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Questions
  1. Statement is true
    Yes
    Statement
    Each plan covered five years.
  2. Statement is true
    Yes
    Statement
    The idea was borrowed from the former Soviet Union.
  3. Statement is true
    Yes
    Statement
    Plan documents specified objectives to be attained.
  4. Statement is true
    No
    Statement
    The five year plans stood alone with no longer horizon.
  5. Statement is true
    Yes
    Statement
    A longer horizon plan is called a perspective plan.
The structure of Indian planning. Source: syllabus Indian Economic Development, Ch 2.

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