Indian Economy Basics

J&K Bank PO · General & Financial Awareness · 19 practice questions with answers and explanations: 11 Easy, 8 Medium, 0 Hard.

Sample questions

Sample Easy question 1

The Nifty 50 is the benchmark index of which exchange?

  1. RBI
  2. BSE
  3. NSE
  4. SEBI
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Answer: C. The Nifty tracks 50 large companies on the National Stock Exchange.

Sample Easy question 2

When the economy faces a combination of high inflation and low growth with high unemployment, it is called:

  1. Stagflation
  2. Disinflation
  3. Hyperinflation
  4. Deflation
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Answer: A. Stagflation combines stagnation and inflation.

Sample Easy question 3

In which year was demonetisation of ₹500 and ₹1,000 notes announced in India?

  1. 2014
  2. 2018
  3. 2019
  4. 2016
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Answer: D. The announcement was made on 8 November 2016.

Sample Medium question 4

Inflation is best described as:

  1. A fall in prices
  2. A rise in exports
  3. A rise in the value of money
  4. A sustained rise in the general price level
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Answer: D. Inflation reduces the purchasing power of money.

Sample Medium question 5

A sustained fall in the general price level is called:

  1. Deflation
  2. Devaluation
  3. Stagflation
  4. Inflation
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Answer: A. Deflation is the opposite of inflation.

Sample Medium question 6

The Finance Commission is constituted under which Article of the Constitution?

  1. Article 266
  2. Article 110
  3. Article 360
  4. Article 280
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Answer: D. The Finance Commission recommends how tax revenue is shared between the Union and the states.

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