Business and Economy MCQ Quiz - Objective Question with Answer for Business and Economy - Download Free PDF

The correct answer is option 2.

In News

• The Index of Industrial Production (IIP) showed a growth of only 2.9% in February 2025, marking the slowest growth in the last six months, which was well below market expectations of 4%.

Key Points

• The IIP does not include services and informal sectors. It only measures changes in production for the mining, manufacturing, and electricity sectors. Hence, Statement 1 is incorrect.
• The IIP is indeed published by the Central Statistics Office (CSO), which is a part of the Ministry of Statistics and Programme Implementation (MoSPI). Hence, Statement 2 is correct.
• The base year for the IIP is currently 2011-12, reflecting modern industrial structures and production patterns. Hence, Statement 3 is correct.

Additional Information

• The IIP is a key indicator of industrial performance in India and provides insights into sectoral growth or contraction in mining, manufacturing, and electricity.
• It is used by policymakers to gauge economic health and inform decisions, such as monetary policy.
• Weight Distribution in IIP:
  • Manufacturing: 77.63%
  • Mining: 14.37%
  • Electricity: 7.99%

The correct answer is Option 1.

In News

The government has revised the turnover and investment criteria for classifying MSMEs with effect from April 1.

Key Points

• The investment limit for Micro Enterprises is ₹2.5 crore (correct), but the turnover limit should be ₹10 crore, not ₹5 crore. Hence, row 1 is incorrect.
• The investment limit for Small Enterprises should be ₹25 crore, not ₹10 crore. However, the turnover limit of ₹100 crore is correct. Hence, row 2 is incorrect.
• The investment limit and turnover limit for Medium Enterprises are correctly mentioned as ₹125 crore and ₹500 crore, respectively. Hence, row 3 is correct.

Additional Information

Revised MSME Classification in Budget 2025-26:

The correct answer is option 2.

In News

• The Maharashtra government withdrew a 2022 decision allowing sugar mills to pay farmers the FRP in two installments. This has brought focus back to the Fair and Remunerative Price mechanism for sugarcane.

Key Points

• The crop described prefers warm temperatures and humid climate, which are typical for tropical regions.
• The rainfall requirement of 75–100 cm and the need for deep loamy soils is characteristic of sugarcane cultivation.
• India is the second-largest producer of sugarcane globally, after Brazil. Hence, option 2 is correct.

Additional Information

• Cotton needs a warmer climate and less rainfall than mentioned.
• Tea grows best in slightly cooler climates and hilly regions with more rainfall.
• Coffee prefers even cooler temperatures and is grown in shaded, hilly regions.

The correct answer is Services Sector.

Key Points

• According to the Economic Survey 2024-25, the services sector contributed the most to the Indian economy.
• The services sector accounted for 55.3% of the Gross Value Added (GVA) in FY25, as per the Press Information Bureau (PIB).
• The survey highlighted the resilience of the services sector and its positive impact on overall economic activity.
• The services sector includes industries such as IT, finance, healthcare, education, and tourism, which have grown significantly in recent years.

Additional Information

• The services sector has shown great resilience and continues to be a key driver of India's economic growth.
• In the 2024-25 fiscal year, India’s economic growth is heavily reliant on services, especially in sectors like technology, digital services, and finance.
• Services contribute not only to economic output but also provide a significant portion of employment in India.
• The government's policies and initiatives, such as Make in India and Digital India, have bolstered the growth of the services sector.

The Correct Answer is ​₹26,000 crore.

In News

• RBI buyback sees strong demand with bids doubling notified amount.

Key Points

• The Reserve Bank of India (RBI) held its second bond buyback auction for FY26.

• A buyback involves the RBI repurchasing government securities (G-Secs) before maturity.

• Purpose: to infuse durable liquidity and assist in government debt management.

• In this auction, the RBI received bids worth ₹53,031 crore for a notified amount of ₹26,000 crore.

• The RBI accepted 99% of the notified amount.

• High response indicates strong demand from banks.

The correct answer is 974 crore.

Key Points

• The central government has allocated Rs 3062.60 crore for the financial year 2022-23, an increase of Rs 305.58 crore.
• In the previous financial year, the government had allocated Rs 2596.14 crore for sports, which was later revised to Rs 2757.02 crore. 
• The financial allocation towards the Khelo India programme, which got Rs 657.71 crore in the last budget, was increased to Rs 974 crore.

Additional Information

• On 01 February 2022, Union Finance Minister Nirmala Sitharaman announced that the government will launch the next phase of Ease of Doing Business.
• It will be known as 'Ease of Doing Business 2.0'.
• The new phase would be guided by the active involvement of the states, digitization of manual processes, and interventions.
• It will also have the integration of the central and the state-level systems through IT bridges.
• It will provide single-point access for all citizen-centric services, and standardization and removal of overlapping compliances.

The correct answer is the National Payments Corporation of India.

• ​​Taking the first step towards having a digital currency in the country, PM Modi will launch an electronic voucher-based digital payment system “e-RUPI”.
• The platform, which has been developed by the National Payments Corporation of India (NPCI), Department of Financial Services, Ministry of Health and Family Welfare and the National Health Authority, will be a person-specific and purpose-specific payments system

Key Points

• e-RUPI:
  • e-RUPI is a cashless and contactless digital payments medium, which will be delivered to the mobile phones of beneficiaries in form of an SMS string or a QR code. 
  • This will essentially be like a prepaid gift voucher that will be redeemable at specific accepting centres without any credit or debit card, a mobile app or internet banking. 
  • e-RUPI will connect the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface.

Important Points

• significance of e-RUPI
  • The government is already working on developing a central bank digital currency and the launch of e-RUPI could potentially highlight the gaps in digital payments infrastructure that will be necessary for the success of the future digital currency. 
  • In effect, e-RUPI is still backed by the existing Indian rupee as the underlying asset and the specificity of its purpose makes it different to a virtual currency and puts it closer to a voucher-based payment system.
  • Also, the ubiquitousness of e-RUPI in the future will depend on the end-use cases.
  • On the other hand, central bank digital currency or CBDC — digital currencies issued by a central bank that generally take on a digital form of the nation’s existing fiat currency

The correct answer is Vijaya Bank and Dena Bank.

Key Points 

• Bank of Baroda became the third largest bank after the amalgamation.
• State Bank of India (SBI) and ICICI Bank are the largest banks in India.
• The government of India proposed the merger of Dena Bank and Vijaya Bank with the Bank of Baroda on 17th September 2018.
• Branches of Vijaya Bank and Dena Bank will function as Bank of Baroda after the amalgamation.
• It was the first-ever three-way consolidation of banks in India.
• The Government of India nationalized the Bank of Baroda on 19 July 1969.
• The headquarters of the Bank of Baroda is located at Vadodara in Gujarat.

Additional Information

• Syndicate bank merged with Canara Bank In 2019.
• Allahabad Bank merged with Indian bank In 2019.
•  Andhra Bank and Corporation Bank merged with Union Bank of India in 2019.

The correct answer is  PM's Development Initiative for North-East (PM-DevINE).

Key Points

• A new scheme, Prime Minister's Development Initiative for North-East, PM-DevINE has been announced by the Union Finance Minister Nirmala Sitharaman while presenting the Union Budget 2022-23 on 01 February 2022.
• The PM-DevINE will be implemented through the North-Eastern Council.
• An initial allocation of Rs 1,500 crore will be made for the new scheme.
• It will fund infrastructure, in the spirit of PM GatiShakti, and social development projects based on felt needs of the North-East

• Amazon became the second to hit $900 billion market capitalisation after Apple.
• Amazon is an e-Commerce company based in Seattle in the United State of America.
• Its founder Jeff Bezos is the richest person on the earth.

The correct answer is Ease of Doing Business.

Key Points

• On 01 February 2022, Union Finance Minister Nirmala Sitharaman announced that the government will launch the next phase of Ease of Doing Business.
• It will be known as 'Ease of Doing Business 2.0'.
• The new phase would be guided by the active involvement of the states, digitization of manual processes, and interventions.
• It will also have the integration of the central and the state-level systems through IT bridges.
• It will provide single-point access for all citizen-centric services, and standardization and removal of overlapping compliances.

The correct answer is Digital Sansad App.

Key Points

• The Parliament has launched a new app, Digital Sansad, that will make it easier for people to follow proceedings in Parliament, and also their own lawmakers.
• In addition, it will also help members of parliament access services such as checking personal updates.
• In the future, the MPs can log in for attendance, give questions for the Question Hour, or submit notices for debates.

The correct answer is option 4.

In News

• PIB News: President of India presents the National Panchayat Awards and inaugurates the National Conference on Incentivization of Panchayats.

Key PointsGS NIRNAY mobile app:

• The GS NIRNAY, National Initiative for Rural India to Navigate, InnovAte and Resolve PanchaYat decisions, a mobile application of the Ministry of Panchayati Raj. Hence option 4 is correct.
• It is aimed at empowering rural communities during the National Conference.
• It enables easy access to critical information discussed during a Gram Sabha; acting as a means of verification of facts where necessary or in case of queries that may arise regarding the resolutions undertaken during the Gram Sabha.
• This would bring in more transparency and increase efficiency in the functioning of Panchayats, which play a vital role in decentralized participatory democracy.

The correct answer is India.

Key Points

• India has the highest number of bank branches in the world.
• India is leading in the list prepared by the number of bank branches in the world based on an IMF report published in 2015.
• India has more than 1.2 lakh bank branches.
• China has the second-largest number of bank branches in the world with over 95,680 bank branches.
• Colombia stood in the third position on the list with over 94,074 bank branches.
• RBI data published in 2016 shows that India now has over 1.3 lakh bank branches.
• There only 13.54 bank branches per 1 lakh adults in India while compared to its population size.

Additional Information

• The Bank of Hindustan is the first bank in India.
• Punjab National Bank is the first complete indigenous bank in India.
• City Union Bank is the first private bank in India.

The correct answer is the International Monetary Fund.

Key Points

Rapid Financing Instrument (RFI) :

• It provides rapid financial assistance, which is available to all member countries facing an urgent balance of payments need.
• It was created as part of a broader reform to make the IMF’s financial support more flexible to address the diverse needs of member countries.
• It replaced the IMF’s previous emergency assistance policy and can be used in a wide range of circumstances.

Rapid Credit Facility (RCF) :

• It provides rapid concessional financial assistance to low-income countries (LICs) facing an urgent balance of payments (BoP) need with no ex-post conditionality where a full-fledged economic program is neither necessary nor feasible.
• It was created under the Poverty Reduction and Growth Trust (PRGT) as part of a broader reform to make the Fund’s financial support more flexible and better tailored to the diverse needs of LICs, including in times of crisis.

There are three windows under RCF:

• A regular window for urgent BoP needs to be caused by a wide range of sources including domestic instability, emergencies and fragility;
• An exogenous shock window for urgent BoP needs to be caused by a sudden, exogenous shock; and
• A large natural disaster window for urgent BoP needs arising from natural disasters where damage is assessed to be equivalent to or exceeding 20 percent of the member’s GDP.
• Access under the RCF is subject to annual and cumulative limits, with higher access limits applying for the large natural disaster window.
• For non-PRGT eligible countries, a similar Rapid Financing Instrument (RFI) is available for higher-income countries.Hence, Option 2 is correct.

Additional Information

• International Monetary Fund (IMF):
  • The formation of the IMF was initiated in 1944 at the Bretton Woods Conference.
  • IMF came into operation on 27th December 1945 and is today an international organization that consists of 190 member countries.
  • Headquartered in Washington, D.C., IMF focuses on fostering global monetary cooperation, securing financial stability, and facilitating and promoting international trade, employment, and economic growth around the world.
  • The IMF is a specialized agency of the United Nations.