MCQs on India's Economy: GDP, Inflation, RBI Policy

431.

An increase in a country's external debt, if not managed properly, can lead to:

A Increased foreign exchange reserves.

B Currency appreciation and lower import costs.

C Strain on foreign exchange reserves and potential currency depreciation.

D Reduced dependence on foreign capital.

432.

Which of the following is a key indicator used to assess the sustainability of a country's external debt?

A Inflation Rate

B Fiscal Deficit

C Debt-to-GDP Ratio

D Current Account Surplus

433.

External debt of a country refers to:

A The total debt owed by its citizens to domestic banks.

B The total debt owed by the country to foreign creditors.

C The debt incurred by the central bank for monetary policy operations.

D The internal debt of the central government.

434.

The 'Make in India' initiative is closely aligned with the broader government vision of:

A Import substitution only.

B Self-reliance and becoming a global manufacturing powerhouse.

C Promoting a purely service-driven economy.

D Reducing the role of the private sector in manufacturing.

435.

The evolution to 'Make in India 2.0' emphasizes:

A Reducing domestic production and increasing imports.

B Focusing on value addition, technology adoption, and export promotion.

C Shifting entirely to a service-based economy.

D Discouraging foreign investment in manufacturing.

436.

Which of the following sectors has NOT been a primary focus of the 'Make in India' initiative or its subsequent phases?

A Automotive

B Defence

C Textiles

D Traditional Handicrafts (as a primary focus)

437.

What is the core mechanism of the Production Linked Incentive (PLI) scheme?

A Providing subsidies for raw material procurement.

B Offering tax exemptions on all manufacturing profits.

C Giving financial incentives based on incremental sales of manufactured goods.

D Mandating minimum wage increases for factory workers.

438.

The 'Make in India' initiative was launched with the primary objective of:

A Promoting the service sector.

B Transforming India into a global manufacturing hub.

C Encouraging the import of finished goods.

D Reducing foreign direct investment.

439.

India's commitment to increasing renewable energy capacity is closely linked to its obligations under which international agreement?

A Kyoto Protocol

B Montreal Protocol

C Paris Agreement

D Copenhagen Accord

440.

Green finance initiatives, such as green bonds, are primarily aimed at:

A Financing fossil fuel exploration projects.

B Mobilizing capital for environmentally sustainable projects.

C Increasing government debt without specific project allocation.

D Funding traditional infrastructure development.

Economy & Business MCQs