INDIAN ECONOMY AND POLICY

What to prepare for MCQ Test?

 MCQ test can be tricky if you did not understand the concept at first stage. You need to read
and understand all the concepts, theories and methods/measures taught to you.
 MCQ test can be difficult if you do not understand the question properly. So, do not hurry.
Read the question twice and understand it properly. Then only answer.
 There are some important points to be noted so you can prepare yourself better.
1. Concept Clarity and its application: In this subject, you have studied various theories and
concepts. Read all these again, try to discuss with your friends. E.g. you learnt about GDP,
you should know all the measures of National Income. Which is more suitable. Which
measure is commonly used? Which measure is used for comparison with the other countries
national income? You should have clarity in all the concepts.
2. Concept and Practicality: You studied about the reality and practicality side of Indian
economy. You should know the details. E.g. you studied about the Monetary Policy
Committee. You should know the number of members in the committee. Who are the
present members of the committee? How they vote and what is the weightage of their vote?
What if there will be a tie in voting for monetary policy review. You should know practicality
in all the concepts.
3. Fact-checking: You have studied about various institutions in this subject, such as NITI
Aayog, Planning Commission, Finance Commission, RBI etc. You should know the year of
establishment? Who are their present Chairman, Vice-Chairman, Governor etc? Where is the
headquarter at present? You should have fact-clarity in all the concepts.
4. Remembering numbers: As the subject demands a lot of numbers to remember. If it is asked
as MCQ, It has a lot of importance. You need to know the present number related to Indian
economy as you studied. E.g. what is the present CRR rate? Other rates? What is India’s GDP
in nominal? Fiscal Deficit? Contribution of each sector to GDP? Unemployment rate?
Inflation rate? Etc.
5. Definition: You need to know the meaning of various terminology as you learned already.
E.g. what is repo and reverse repo rate means? What do you mean by Fiscal deficit? Revenue
Expenditure?
6. Policy updates: You have learnt many policies in this subject, mainly Fiscal policy, Monetary
Policy, and FDI policy etc. You should read the present updates in these policies of GOI.
7. Policy Implication: You have learned many policies that have been implemented. What kind
of impact these policies had on Indian economy? E.g. implication of GST, Demonetization,
LPG etc.
8. Abbreviation: Just remember the abbreviations of the terminology taught in the subject. E.g.
MSF, NITI, WPI, GST etc.
9. Differentiate: You need to go through the differentiation in the meaning of words/concepts
for better understanding—E.g. Money bill vs Finance bill.
10. Announcements of Union Budget 2020: As you studied union budget announced on 1 st
February 2020. There were many announcements in terms of different sectors, theme, and
fund allocation. You are expected to remember these budget specifications.

Note: The final suggestion would be revise the PPT presentations (taught in the class) many times,
update your knowledge on policy matters and read all the concepts learned from textbooks or stand
material.