Economy-related general knowledge is a vital section for competitive exams like UPSC, SSC, Banking, Railways, NDA, CDS, and State PSCs. A strong grasp of economic concepts, policies, and current trends helps aspirants score well in the general awareness section.
To boost your preparation, here are some important Economy GK questions with answers that frequently appear in exams.
Economy GK Questions and Answers
1. Basic Economic Concepts
Q1. What is the primary function of the Reserve Bank of India (RBI)?
👉 Answer: Regulating monetary policy and controlling inflation
Q2. What does GDP stand for?
👉 Answer: Gross Domestic Product
Q3. What is the full form of FDI?
👉 Answer: Foreign Direct Investment
Q4. What is Fiscal Policy?
👉 Answer: Government policies related to taxation and spending
Q5. What is the current base year for calculating GDP in India?
👉 Answer: 2011-12
Q6. What is the term for an economy experiencing rising prices but stagnant demand?
👉 Answer: Stagflation
Q7. What is the difference between GNP and GDP?
👉 Answer: GNP (Gross National Product) includes income from abroad, while GDP measures only domestic production
Q8. What does the term ‘Monetary Policy’ refer to?
👉 Answer: RBI’s policy to control money supply and interest rates
Q9. Which index measures inflation in India?
👉 Answer: Consumer Price Index (CPI) and Wholesale Price Index (WPI)
Q10. What is the main objective of economic planning in India?
👉 Answer: Balanced economic development and poverty reduction
2. Indian Economy – Growth & Development
Q11. Who is known as the ‘Father of Indian Planning’?
👉 Answer: M. Visvesvaraya
Q12. When was the first Five-Year Plan launched in India?
👉 Answer: 1951
Q13. What is the role of NITI Aayog?
👉 Answer: Policy-making and economic planning for India’s development
Q14. Which sector contributes the most to India’s GDP?
👉 Answer: Service sector
Q15. What is the current GST rate structure in India?
👉 Answer: 5%, 12%, 18%, and 28%
Q16. What is the objective of the ‘Make in India’ initiative?
👉 Answer: To boost manufacturing and attract foreign investments
Q17. Which Indian state has the highest per capita income?
👉 Answer: Goa (as per latest data)
Q18. What is the full form of MSME?
👉 Answer: Micro, Small, and Medium Enterprises
Q19. What is the minimum capital required to start a small-scale industry in India?
👉 Answer: ₹1 crore (as per MSME classification)
Q20. What does the term ‘Disinvestment’ mean in the Indian economy?
👉 Answer: Selling government shares in public sector companies
3. Banking & Finance
Q21. Which is the largest public sector bank in India?
👉 Answer: State Bank of India (SBI)
Q22. What is the repo rate?
👉 Answer: The interest rate at which RBI lends money to commercial banks
Q23. What is the reverse repo rate?
👉 Answer: The interest rate at which banks deposit excess funds with RBI
Q24. What is the meaning of CRR (Cash Reserve Ratio)?
👉 Answer: The percentage of a bank’s total deposits that must be kept with the RBI
Q25. What is the full form of NBFC?
👉 Answer: Non-Banking Financial Company
Q26. Which Indian bank first introduced Internet Banking?
👉 Answer: ICICI Bank
Q27. What does ‘Inflation’ mean in economics?
👉 Answer: A rise in the general price level of goods and services
Q28. What is the base year for the Consumer Price Index (CPI) in India?
👉 Answer: 2012
Q29. What is the purpose of the Pradhan Mantri Jan Dhan Yojana (PMJDY)?
👉 Answer: Financial inclusion and access to banking for all
Q30. Which body regulates the stock market in India?
👉 Answer: Securities and Exchange Board of India (SEBI)
4. International Economics & Trade
Q31. What is the headquarters of the World Bank?
👉 Answer: Washington, D.C., USA
Q32. What is the full form of WTO?
👉 Answer: World Trade Organization
Q33. What does ‘Balance of Payments’ (BoP) mean?
👉 Answer: A record of all economic transactions between a country and the rest of the world
Q34. What is the meaning of ‘Dumping’ in international trade?
👉 Answer: Selling goods in a foreign market at a price lower than the domestic market
Q35. Which international organization releases the Global Economic Outlook report?
👉 Answer: International Monetary Fund (IMF)
Q36. What is the full form of SDR (in IMF)?
👉 Answer: Special Drawing Rights
Q37. Which country is the largest trading partner of India?
👉 Answer: USA (as per latest trade data)
Q38. What is the full form of ASEAN?
👉 Answer: Association of Southeast Asian Nations
Q39. What is the purpose of the G20 summit?
👉 Answer: Discussing global economic and financial issues
Q40. What is the full form of BRICS?
👉 Answer: Brazil, Russia, India, China, and South Africa
5. Government Schemes & Policies
Q41. What is the objective of the PM Kisan Yojana?
👉 Answer: Providing financial assistance to farmers
Q42. What is the purpose of the MGNREGA scheme?
👉 Answer: Providing 100 days of guaranteed wage employment in rural areas
Q43. Which scheme aims to promote digital transactions in India?
👉 Answer: Digital India Initiative
Q44. What is the goal of the Atmanirbhar Bharat initiative?
👉 Answer: Promoting self-reliance in manufacturing and economy
Q45. What is the aim of the Startup India initiative?
👉 Answer: Encouraging entrepreneurship and innovation
Q46. What is the target year for India to achieve a $5 trillion economy?
👉 Answer: 2027-28 (as per government projections)
Q47. What is the objective of the National Monetization Pipeline (NMP)?
👉 Answer: Monetizing government assets to raise funds for infrastructure
Q48. What is the minimum investment for FDI in India’s retail sector?
👉 Answer: 51% in multi-brand retail, 100% in single-brand retail
Q49. Which ministry is responsible for the implementation of GST?
👉 Answer: Ministry of Finance
Q50. What is the name of the digital currency launched by the RBI?
👉 Answer: Central Bank Digital Currency (CBDC)
Why is Economic Knowledge Important for Exams?
✅ Frequently Asked in Competitive Exams – Many UPSC, SSC, and Banking questions are based on economic policies.
✅ Enhances Analytical Skills – Helps in understanding government budgets, taxation, and global trade.
✅ Useful for Interviews & Discussions – Strong economic knowledge boosts confidence in group discussions and interviews.
✅ Keeps You Informed About Financial Changes – Knowing about inflation, RBI policies, and GDP growth helps in daily life.
Final Thoughts
Understanding economic concepts is essential for anyone preparing for competitive exams. Regularly reading economic news, budget reports, and RBI updates will help you stay ahead in your preparation.
📌 Stay informed, stay prepared!