1. Who prepares the Union Budget of India?
A) Prime Minister
B) RBI
C) Ministry of Finance ✅
D) NITI Aayog
📘 Prepared by the Department of Economic Affairs under the Ministry of Finance.
2. When is the Union Budget generally presented?
A) 1st April
B) Last day of February
C) 1st February ✅
D) 31st March
📘 Since 2017, budget is presented on February 1.
3. Which article of the Constitution deals with the Annual Financial Statement (Union Budget)?
A) Article 112 ✅
B) Article 110
C) Article 280
D) Article 360
📘 Article 112 mandates the Union Budget or Annual Financial Statement.
4. What is ‘Fiscal Deficit’?
A) Total revenue – total expenditure
B) Total expenditure – total revenue ✅
C) Only capital expenditure
D) Only revenue expenditure
📘 It indicates the borrowing requirement of the government.
5. Who is called the "Father of Indian Budget"?
A) Jawaharlal Nehru
B) R.K. Shanmukham Chetty ✅
C) Morarji Desai
D) Manmohan Singh
📘 Presented the first budget of independent India in 1947.
6. What is the main source of revenue for the government?
A) Borrowing
B) Tax revenue ✅
C) External aid
D) Grants
📘 Includes both direct and indirect taxes.
7. The Planning Commission was replaced by:
A) NITI Aayog ✅
B) RBI
C) Finance Commission
D) SEBI
📘 Established in 2015, aimed at cooperative federalism.
8. Which body determines the distribution of tax between Centre and States?
A) Finance Ministry
B) NITI Aayog
C) Finance Commission ✅
D) RBI
📘 Finance Commission is constituted every five years.
9. GST is a:
A) Direct tax
B) Indirect tax ✅
C) Wealth tax
D) Income tax
📘 Goods and Services Tax is a unified indirect tax.
10. GST was implemented in India on:
A) 1st April 2017
B) 1st July 2017 ✅
C) 1st January 2018
D) 1st March 2017
📘 Major tax reform rolled out from 1st July 2017.
11. Inflation means:
A) Decrease in prices
B) Increase in prices ✅
C) Stable prices
D) Government subsidy
📘 General rise in prices over time.
12. Which index measures inflation in India?
A) GDP
B) CPI ✅
C) BSE Index
D) NSE Index
📘 Consumer Price Index (CPI) measures retail inflation.
13. Which institution issues currency notes in India?
A) Finance Ministry
B) RBI ✅
C) NITI Aayog
D) SEBI
📘 Under RBI Act, 1934.
14. How many members are in the GST Council (including chair)?
A) 10
B) 15
C) 33
D) Varies, but chaired by Finance Minister ✅
📘 Comprises state finance ministers + Union FM.
15. Budget is presented in which house of Parliament?
A) Lok Sabha ✅
B) Rajya Sabha
C) Both
D) Joint Sitting
📘 First introduced in Lok Sabha.
16. What is Disinvestment?
A) Buying shares
B) Selling shares ✅
C) Taking loans
D) None
📘 Selling government’s stake in public sector companies.
17. SEBI regulates which market?
A) Money Market
B) Capital Market ✅
C) Commodity Market
D) Forex Market
📘 Securities and Exchange Board of India.
18. Which tax is levied on income?
A) Direct Tax ✅
B) GST
C) Customs
D) Excise
📘 Income tax is a direct tax.
19. Which tax was abolished after GST?
A) Income tax
B) Wealth tax
C) Excise duty ✅
D) Corporate tax
📘 Excise duty mostly subsumed in GST.
20. Who presents the Economic Survey in Parliament?
A) RBI Governor
B) Finance Minister ✅
C) Prime Minister
D) President
📘 Presented a day before the Union Budget.
21. What does GDP stand for?
A) Gross Development Product
B) Gross Domestic Product ✅
C) General Domestic Product
D) Gross Demand Product
📘 Measures the total value of goods/services produced in a country.
22. Which sector contributes most to India’s GDP?
A) Agriculture
B) Industry
C) Services ✅
D) Manufacturing
📘 Services contribute ~50%+ of India’s GDP.
23. Repo rate is the rate at which:
A) RBI lends to banks ✅
B) Banks lend to RBI
C) Banks lend to customers
D) None of the above
📘 Used to control liquidity and inflation.
24. The rate at which banks borrow from RBI is called:
A) Repo rate ✅
B) Reverse Repo
C) Bank Rate
D) CRR
📘 RBI uses this as a monetary policy tool.
25. CRR stands for:
A) Credit Reserve Rate
B) Cash Reserve Ratio ✅
C) Capital Reserve Rate
D) None
📘 Portion of deposits banks must keep with RBI.
26. The main objective of the Five-Year Plans was:
A) Military Growth
B) Social Justice
C) Planned Economic Development ✅
D) Political Stability
📘 India adopted five-year plans from 1951 to 2017.
27. The first Finance Minister of independent India was:
A) Morarji Desai
B) T.T. Krishnamachari
C) R.K. Shanmukham Chetty ✅
D) C.D. Deshmukh
📘 He presented India’s first budget on 26 Nov 1947.
28. National Income is calculated using:
A) Income Method
B) Expenditure Method
C) Product Method
D) All of the above ✅
📘 Various methods are used depending on context.
29. Which organization releases data on National Income in India?
A) RBI
B) CSO ✅
C) NITI Aayog
D) Finance Ministry
📘 Central Statistics Office (now merged into NSO).
30. What is the full form of NITI Aayog?
A) National Institute for Transforming India ✅
B) New India Technical Institute
C) National Initiative for Trade and Industry
D) None
📘 Established in 2015, replacing Planning Commission.
31. Who is known as the architect of Indian economic reforms (1991)?
A) Atal Bihari Vajpayee
B) Dr. Manmohan Singh ✅
C) P.V. Narasimha Rao
D) Montek Singh Ahluwalia
📘 Introduced liberalisation, privatisation, and globalisation.
32. Which of the following is NOT a direct tax?
A) Income Tax
B) Wealth Tax
C) Corporate Tax
D) GST ✅
📘 GST is an indirect tax.
33. What is Demonetisation?
A) Withdrawal of foreign currency
B) Ban on banking
C) Declaring old currency notes invalid ✅
D) Removing coins
📘 India demonetised ₹500 and ₹1000 notes in 2016.
34. The full form of IMF is:
A) International Monetary Federation
B) International Monetary Fund ✅
C) Indian Monetary Fund
D) International Money Forum
📘 An international financial institution headquartered in Washington D.C.
35. India’s currency system is based on:
A) Decimal System ✅
B) Binary System
C) Fractional System
D) Dual System
📘 Adopted in 1957.
36. What is Deflation?
A) Increase in prices
B) Decrease in prices ✅
C) Stability in prices
D) Price hike in one sector
📘 Opposite of inflation.
37. Headquarters of RBI is located at:
A) New Delhi
B) Mumbai ✅
C) Kolkata
D) Chennai
📘 Since 1937, after moving from Kolkata.
38. Monetary policy is framed by:
A) Finance Ministry
B) RBI ✅
C) SEBI
D) NITI Aayog
📘 To control money supply, inflation, interest rates.
39. Which is NOT a function of RBI?
A) Currency issue
B) Credit control
C) Accepting deposits from public ✅
D) Foreign exchange management
📘 RBI does not accept public deposits.
40. What is Black Money?
A) Money kept in black boxes
B) Illegal unaccounted money ✅
C) Foreign exchange
D) RBI surplus
📘 Not declared for tax purposes.
41. Which tax is shared between the Centre and the States?
A) Customs
B) Income Tax ✅
C) Excise Duty
D) Corporation Tax
📘 As per Finance Commission recommendations.
42. The main objective of WTO is to:
A) Increase taxes
B) Promote free trade ✅
C) Protect domestic industry
D) Encourage black marketing
📘 WTO encourages global trade with minimal barriers.
43. What is the base year for GDP calculation in India (as of 2023)?
A) 2004–05
B) 2011–12 ✅
C) 2010–11
D) 2001–02
📘 Revised in 2015.
44. What does FDI stand for?
A) Foreign Development Initiative
B) Foreign Direct Investment ✅
C) Fiscal Debt Index
D) Finance Disbursement Institution
📘 Investment by foreign companies in domestic business.
45. Which index is used to measure wholesale inflation in India?
A) CPI
B) WPI ✅
C) GDP
D) Forex Index
📘 Wholesale Price Index tracks inflation at producer level.
46. Which sector is also called the 'tertiary sector'?
A) Agriculture
B) Manufacturing
C) Services ✅
D) Mining
📘 Includes transport, banking, education, healthcare etc.
47. India’s central bank is:
A) SBI
B) ICICI
C) RBI ✅
D) SIDBI
📘 Established in 1935, controls monetary policy.
48. Who controls monetary policy in India?
A) Parliament
B) RBI ✅
C) President
D) Finance Commission
📘 Decides repo rate, CRR, SLR etc.
49. The term “Budget” is mentioned in which Article?
A) Article 112 ✅
B) Article 370
C) Article 14
D) Article 324
📘 Also called Annual Financial Statement.
50. What is a Fiscal Policy?
A) Related to banks
B) Government spending and taxation ✅
C) Currency printing
D) Price control
📘 Controlled by the Finance Ministry.
51. What does ‘Balance of Payments’ show?
A) Internal budget
B) International trade record ✅
C) Bank loans
D) Domestic consumption
📘 Difference between a country’s exports and imports.
52. Which of the following is a part of capital receipt in budget?
A) Tax revenue
B) Interest receipts
C) Borrowings ✅
D) Customs
📘 Capital receipts involve creation of liability or reduction in assets.
53. Which tax is imposed on import and export of goods?
A) Excise duty
B) GST
C) Customs Duty ✅
D) Corporation Tax
📘 Levied by Central Government.
54. Which economist is associated with liberalisation in India?
A) Amartya Sen
B) Manmohan Singh ✅
C) Raghuram Rajan
D) Subramanian Swamy
📘 Finance Minister in 1991 during economic crisis.
55. What is the highest denomination currency note ever printed in India?
A) ₹1000
B) ₹5000
C) ₹10,000 ✅
D) ₹2000
📘 ₹10,000 notes were demonetised in 1978.
56. What is the meaning of “Inflationary gap”?
A) Too much supply
B) Excess demand over supply ✅
C) Budget surplus
D) Tax loophole
📘 Leads to rise in prices.
57. Who appoints the Finance Commission in India?
A) Prime Minister
B) Finance Minister
C) President ✅
D) RBI Governor
📘 Under Article 280 of the Constitution.
58. Which tax is not collected by the Union Government?
A) Income Tax
B) GST
C) Land Revenue ✅
D) Excise Duty
📘 Land revenue is collected by state governments.
59. What is ‘Stagflation’?
A) Growth + Inflation
B) Recession + Deflation
C) High inflation + no growth ✅
D) Unemployment + surplus
📘 Stagnant economy + rising prices.
60. What is the currency of IMF transactions?
A) Dollar
B) Euro
C) SDR ✅
D) Pound
📘 Special Drawing Rights (SDR) is IMF’s unit of account.
61. Which year was the first Five-Year Plan launched?
A) 1950
B) 1951 ✅
C) 1947
D) 1952
📘 Focused on agriculture, modelled after Soviet planning.
62. What is meant by depreciation of currency?
A) Rise in value
B) Loss in purchasing power ✅
C) Over-valuation
D) Controlled inflation
📘 Currency becomes cheaper in international markets.
63. What is the full form of NEFT?
A) National Electronic Funds Transfer ✅
B) Net Electronic Funds Transaction
C) National Electronic Financial Trade
D) None
📘 Used for online fund transfer.
64. What is the full form of UPI?
A) United Payment Index
B) Unified Payments Interface ✅
C) Unique Payment Integration
D) Union Pay India
📘 Real-time payment system by NPCI.
65. What is ‘Subsidy’?
A) Bonus payment
B) Government aid to reduce prices ✅
C) Tax refund
D) Loan
📘 To make products affordable.
66. Which Indian economist received Nobel Prize?
A) C. Rangarajan
B) Manmohan Singh
C) Amartya Sen ✅
D) Raghuram Rajan
📘 Won in 1998 for welfare economics.
67. What is primary deficit?
A) Revenue – expenditure
B) Fiscal deficit – interest payments ✅
C) Loans
D) Tax gap
📘 Shows actual borrowing requirement.
68. Which Indian ministry releases the Economic Survey?
A) Ministry of External Affairs
B) Ministry of Finance ✅
C) Planning Commission
D) RBI
📘 Presented a day before Union Budget.
69. What is the meaning of ‘Direct Benefit Transfer’?
A) Cash transfer through agents
B) Cash transfer to intermediaries
C) Cash transfer to bank account of beneficiaries ✅
D) None
📘 Eliminates middlemen in subsidy disbursement.
70. What is the term used for rising production costs causing inflation?
A) Demand-pull inflation
B) Cost-push inflation ✅
C) Monetary inflation
D) Hyperinflation
📘 E.g., rise in oil prices.
71. What is the full form of RTGS?
A) Real Time Gross Settlement ✅
B) Real Time Government Settlement
C) Reserve Time Gross Security
D) Real Time Goods System
📘 Used for instant large-value fund transfers.
72. Which of these is an indirect tax?
A) GST ✅
B) Income Tax
C) Corporate Tax
D) Capital Gains Tax
📘 Indirect taxes are collected from consumers.
73. Who regulates stock markets in India?
A) RBI
B) SEBI ✅
C) NITI Aayog
D) NABARD
📘 Securities and Exchange Board of India.
74. Which of the following is a money market instrument?
A) Shares
B) Bonds
C) Treasury Bills ✅
D) Equity
📘 T-bills are short-term government debt instruments.
75. What is the full form of NPCI?
A) National Payment Central Infrastructure
B) National Payments Corporation of India ✅
C) National Public Credit Institution
D) None
📘 Handles UPI, RuPay, IMPS etc.
76. What is the base year for CPI in India (as of 2024)?
A) 2001
B) 2012 ✅
C) 2005
D) 2000
📘 CPI data published monthly by MoSPI.
77. What is an example of a capital expenditure?
A) Salaries
B) Interest payments
C) Defence purchases ✅
D) Subsidies
📘 Used to acquire or maintain fixed assets.
78. Which bank is known as the Banker’s Bank?
A) SBI
B) RBI ✅
C) HDFC
D) PNB
📘 RBI lends to banks in times of need.
79. Which type of budget shows equal income and expenditure?
A) Surplus
B) Deficit
C) Balanced ✅
D) Capital
📘 Balanced budget = revenue = expenditure.
80. What is meant by liquidity?
A) Availability of funds ✅
B) Borrowing
C) Inflation
D) Budget surplus
📘 Refers to ease of access to money.
81. What is the full form of ATM?
A) Automatic Transfer Machine
B) Automated Teller Machine ✅
C) Automated Transaction Model
D) Automatic Teller Model
📘 ATM allows cash withdrawal without bank staff.
82. Which bank is the largest public sector bank in India?
A) Bank of India
B) Punjab National Bank
C) SBI ✅
D) Canara Bank
📘 State Bank of India is the largest PSU bank.
83. What is a cheque?
A) Credit instrument
B) Paper currency
C) Bill of exchange ✅
D) Promissory note
📘 Cheque is a negotiable instrument instructing the bank to pay.
84. The World Bank is headquartered in:
A) New York
B) Washington, D.C. ✅
C) Geneva
D) Paris
📘 Founded in 1944 for economic development.
85. Who is the current regulator of insurance in India?
A) SEBI
B) RBI
C) IRDAI ✅
D) NITI Aayog
📘 Insurance Regulatory and Development Authority of India.
86. What is meant by 'SENSEX'?
A) Interest rate
B) Stock index of NSE
C) Stock index of BSE ✅
D) GDP measure
📘 Sensex tracks 30 top companies on BSE.
87. Which tax has replaced most indirect taxes in India?
A) VAT
B) GST ✅
C) Income Tax
D) Corporation Tax
📘 GST came into effect on July 1, 2017.
88. GST is a:
A) Direct tax
B) Indirect tax ✅
C) Wealth tax
D) Corporate tax
📘 Paid by consumers; collected by sellers.
89. GST is a ___ based tax.
A) Origin
B) Destination ✅
C) Production
D) Export
📘 Collected at the point of consumption.
90. Which tax is levied on profits of companies?
A) GST
B) Excise
C) Corporation Tax ✅
D) Capital gains
📘 Also called corporate tax.
91. What is PAN used for?
A) Passport
B) Tax identification ✅
C) Voting
D) Currency exchange
📘 Permanent Account Number (PAN) is issued by Income Tax Dept.
92. Who is responsible for collecting Income Tax in India?
A) RBI
B) CBDT ✅
C) SEBI
D) NITI Aayog
📘 Central Board of Direct Taxes under Finance Ministry.
93. Tax levied on goods manufactured within the country is:
A) Customs
B) Excise Duty ✅
C) GST
D) Income Tax
📘 Now mostly subsumed under GST.
94. Which institution controls the monetary policy in India?
A) SEBI
B) Ministry of Finance
C) RBI ✅
D) Supreme Court
📘 Through repo rate, CRR, SLR, etc.
95. What is ‘Double Taxation’?
A) Same income taxed twice ✅
B) Double GST
C) Export taxes
D) Tax evasion
📘 India has treaties to avoid this with many countries.
96. Income tax in India is imposed on:
A) Income above ₹1 lakh
B) Gross income
C) Income above exemption limit ✅
D) Agricultural income
📘 Exemption limit varies with age and category.
97. Which tax is not shared with states?
A) GST
B) Income Tax
C) Corporation Tax ✅
D) Union Excise
📘 Corporation tax is retained entirely by the Centre.
98. Which of the following is not included in GST?
A) Petrol ✅
B) Cement
C) Restaurant services
D) Soap
📘 Petroleum products are currently outside GST.
99. Which of the following is NOT a fiscal policy tool?
A) Taxation
B) Government spending
C) Interest rate ✅
D) Subsidies
📘 Interest rate is a monetary policy tool.
100. Inflation is best controlled by:
A) Printing more money
B) Reducing taxes
C) Increasing money supply
D) Reducing money supply ✅
📘 Reducing money supply curbs inflation (via repo rate, CRR, etc.).
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