Indian Economy Mixed Practice — MCQs with Answers (Set 5)

The answer is Kochi, in Kerala. The research and training offices are at Alappuzha and Bangalore. Delhi, Coimbatore and Chennai host no head office. Memory hook: coir country, Kochi office.

The answer is the Coir Industry Act, 1953. It is Act 45 of 1953. Section 4 lets the Central Government constitute the Board. The Spices Board and Tea Acts cover other crops. The 1951 Act is a general industry law. Memory hook: Coir Board, Coir Act.

The answer is approvals from shareholders, creditors, stock exchanges, SEBI and the NCLT. Board approval is only the first step. The scheme pays no cash. The President’s approval had already been conveyed on 10 June 2026. Memory hook: boards first, then everyone else.

JCR raised India by one notch, from BBB+ to A-, on 2 September 2026. It cited fast growth, digital public infrastructure, GST and cleaner banks.

Only statement 2 is correct. CRISIL, set up in 1987, was India’s first CRA. SEBI, not the RBI, regulates CRAs under its 1999 regulations. CIBIL is a credit bureau for individuals, not a CRA.

BBB minus (BBB-) is the lowest investment grade at S&P and Fitch. The matching grade at Moody’s is Baa3. Ratings of BB+ and below are high-yield, or junk.

JCR rates India A- (September 2026). S&P rates it BBB (August 2025). Fitch kept India at BBB- (August 2026). Moody’s has India at Baa3 since June 2020.

Both are true, and R explains A. A rating measures the risk of default. Lower risk means lenders ask for less interest. The Finance Ministry said the JCR upgrade will lower India’s borrowing costs.

Only statement 1 is correct. The amendment lets NCDC fund cooperatives and bodies working for them directly. Statement 2 is wrong: NCDC can take part in share capital only with the Centre’s approval. Statement 3 is wrong: the minister said the law adds no extra budget support.

Yuva Sahakar backs new cooperative start-ups. Ayushman Sahakar funds cooperative hospitals and health services. Nandini Sahakar is for women cooperatives. Swayam Shakti Sahakar lends to credit cooperatives for loans to women’s SHGs. So the match is A-2, B-3, C-1, D-4.

NCDC is a statutory body created by the NCDC Act, 1962. It began work in 1963. It works under the Ministry of Cooperation, which was created on 6 July 2021.

Both are true, and R explains A. Many State agencies and expert bodies help cooperatives but are not cooperatives themselves. So NCDC could not fund them directly. Their proposals had to go through State governments or cooperative societies. The 2026 amendment removed this block.

Statements 1, 2 and 4 are correct. The ministry was created on 6 July 2021. NCDC gave out Rs 95,182.88 crore in 2024-25. The Act was amended in 1973, 1974 and 2002. Statement 3 is wrong: in 2021 the Supreme Court held Part IXB operative only for multi-State cooperatives.

Statements 1 and 3 are correct. Section 22 gives the RBI the sole right to issue banknotes. The Government of India issues the one-rupee note. Statement 2 is wrong: the Government designs and mints coins under the Coinage Act, 2011, and the RBI only distributes them.

Salboni and Mysuru are note presses of BRBNMPL, the RBI’s subsidiary. Dewas, like Nashik, is a note press of the Government’s SPMCIL. Noida is one of four SPMCIL coin mints, with Mumbai, Hyderabad and Kolkata. So the match is A-2, B-1, C-3, D-2.

Section 25 says the Centre approves a banknote’s design, form and material after considering the RBI Central Board’s advice. The RBI sent its 2026 polymer note proposal under this section. Section 22 is the sole right to issue notes, Section 24 sets denominations and Section 26 makes notes legal tender.

Both are true, and R explains A. Coins of one rupee and above are legal tender only up to ₹1,000 in one transaction. So nobody can be forced to accept ₹5,000 in coins. Accepting them by choice is still allowed.

Statements 1, 2 and 3 are correct, so the answer is only three. The security thread fluoresces under UV light. The colour-shifting numeral turns from green to blue when tilted. The see-through register joins front and back halves of the numeral against light. Statement 4 is wrong: the watermark shows Mahatma Gandhi.

Output share and jobs share don’t have to move at the same speed. Farming’s output share fell sharply as the economy diversified, but many farm workers lack the skills or mobility for factory and city jobs, so its jobs share fell far more slowly. This output-jobs gap is at the heart of India’s development puzzle.

The May WTI contract was near expiry, and its holders faced physical delivery at Cushing, Oklahoma. Pandemic lockdowns had crushed fuel demand, and usable, booked storage and delivery options were tight, so some traders paid others to take the contract off their hands. This was not the price of every oil barrel — the final settlement the next day was positive, and Brent, linked to seaborne cargoes, stayed positive throughout.

PPP GDP converts output using local price comparisons, not the foreign-exchange market rate. Since many local goods and services cost less in India than in high-income countries, the same rupee income buys more locally — so PPP GDP comes out much larger than market-rate GDP.

IGC membership gives a country shared market data and a seat in policy discussion. It is not a trade permit — the IGC does not set a country’s tariffs or grant market-access rights; national rules and trade agreements do that.

The Urjit Patel Committee (2013–14) recommended inflation targeting through a committee-based rate-setting process. This led to the Monetary Policy Committee, formally set up in 2016. Narasimham dealt with bank reform, Malhotra with insurance, and Tarapore with capital account convertibility.

It is called a factoring unit, the invoice or bill uploaded for financing. The seller usually uploads it; if the buyer uploads it instead, that is called reverse factoring.

Delivery versus payment means both halves of a trade, the money and the security token, settle at the exact same moment on the same ledger, so neither side can end up empty-handed partway through.