MCQs- Role of Priority Sector and MSME in the Indian Economy

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Role of Priority Sector and MSME in the Indian Economy – Collapsible Q&A with MCQs

Priority sectors are those sectors which the Government and RBI consider important for the development of the economy and aim to provide institutional credit to.

a) Agriculture
b) Micro, Small and Medium Enterprises
c) Education
d) Real Estate

Correct Answer: d) Real Estate

PSL is a scheme under which banks are directed by RBI to lend a specific portion of their credit to specific sectors such as agriculture, MSMEs, education, housing, and more.

a) 20% of ANBC
b) 30% of ANBC
c) 40% of ANBC
d) 50% of ANBC

Correct Answer: c) 40% of ANBC (Adjusted Net Bank Credit)

MSMEs are classified based on investment and turnover: Micro (investment ≤ ₹1 Cr and turnover ≤ ₹5 Cr), Small (investment ≤ ₹10 Cr and turnover ≤ ₹50 Cr), Medium (investment ≤ ₹50 Cr and turnover ≤ ₹250 Cr).

a) Medium Scale Marketing Enterprises
b) Multi Sectoral Manufacturing Enterprises
c) Micro, Small and Medium Enterprises
d) Manufacturing, Services & Managed Enterprises

Correct Answer: c) Micro, Small and Medium Enterprises

MSMEs contribute significantly to employment generation, exports, innovation, and industrial output. They are vital for inclusive and sustainable growth.

a) 10%
b) 20%
c) 30%
d) 40%

Correct Answer: c) 30%

Key initiatives include Atmanirbhar Bharat package, Make in India, Start-up India, Stand-up India, Emergency Credit Line Guarantee Scheme (ECLGS), and Udyam Registration.

a) Make in India
b) Stand-up India
c) Start-up India
d) Udyog Mitra Yojana

Correct Answer: b) Stand-up India

a) SEBI
b) RBI
c) NABARD
d) Ministry of Finance

Correct Answer: b) RBI

a) Udyam Registration
b) Start-up India
c) Stand-up India
d) Pradhan Mantri Awas Yojana

Correct Answer: d) Pradhan Mantri Awas Yojana

a) Agriculture
b) Real Estate
c) Mining
d) Automobiles

Correct Answer: a) Agriculture

a) Digital India Scheme
b) Emergency Credit Line Guarantee Scheme (ECLGS)
c) National Manufacturing Policy
d) Mudra Yojana

Correct Answer: b) Emergency Credit Line Guarantee Scheme (ECLGS)

a) 2014
b) 2016
c) 2018
d) 2020

Correct Answer: b) 2016

a) Only large companies
b) All MSMEs
c) Only exporters
d) Only government entities

Correct Answer: b) All MSMEs

Chapter NumberPAPER I – INDIAN ECONOMY & INDIAN FINANCIAL SYSTEM
MODULE A: INDIAN ECONOMIC ARCHITECTURE
1. An Overview of the Indian Economy: Evolution, Structure & Key Milestones
2. Economic Planning in India: A Complete Overview,Sectors of the Indian Economy
3. Role of Priority Sector and MSME in the Indian Economy
4. Infrastructure including Social Infrastructure
5. Globalisation – Impact on India
6. Economic Reforms
7. Foreign Trade Policy, Foreign Investments and Economic Development
QandAs/MCQs 1 Q and A - An Overview of the Indian Economy: Evolution, Structure and Key Milestones
QandAs/MCQs 2Q&As- Economic Planning in India – Short Questions and Answers
QandAs/MCQs 3 MCQs- Sectors of the Indian Economy – Important Questions
QandAs/MCQs 4 MCQs- Role of Priority Sector and MSME in the Indian Economy
QandAs/MCQs 5MCQs – Infrastructure, Globalisation, and Economic Reforms
QandAs/MCQs 6 MCQs – Foreign Trade, Investments & International Economic Organizations
QandAs/MCQs 7 MCQs – Climate Change, SDGs, and Indian Economic Issues
MODULE B: ECONOMIC CONCEPTS RELATED TO BANKING
MODULE C: INDIAN FINANCIAL ARCHITECTURE
MODULE D: FINANCIAL PRODUCTS AND SERVICES

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