Practice Industries manufacturing service sectors - indian economy mcq Online Quiz (set-1) For All Competitive Exams

Q-1)   What is the approximate share of SSIs in gross industrial value added in the Indian economy?

(a)

(b)

(c)

(d)

Explanation:

The small-scale industries sector plays a vital role in the growth of the country. It contributes almost 40% of the gross industrial value added in the Indian economy.


Q-2)   ‘World Investment Report’ is the annual report published by the International institution

(a)

(b)

(c)

(d)

Explanation:

‘World Investment Report’ is the annual report published by the UNCTAD. Each year the report covers the latest trends in foreign direct investment around the world and analyses in depth one selected topic related to foreign direct investment and development.


Q-3)   India’s first port-based Special Economic Zone named International Container Trans-shipment Terminal (ICTI) is being set-up at?

(a)

(b)

(c)

(d)

Explanation:

The Kochi International Container Transhipment Terminal (ICTT), locally known as the Vallarpadam Terminal, is a container trans-shipment facility which is part of the Cochin Port in Kochi, India.


Q-4)   In June 2013 the CRR of Bank in the country was

(a)

(b)

(c)

(d)

Explanation:

The CRR of Bank in the country in June 2013 was 4%. Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank.


Q-5)   How much percentage of the Debt Service Ratio of India during 2012–13?

(a)

(b)

(c)

(d)


Q-6)   Match the given companies with their locations and select the correct answer by using the codes given below:
List I List II
(Company) (Location)
A. BALCO 1. Hirakund
B. HINDALCO 2. Korba
C. Indian Aluminium company 3. Koraput
D. NALCO 4. Renukoot
Codes: A B C D

(a)

(b)

(c)

(d)

Explanation:

The correct locations of the given companies are :

  1. BALCO — Korba
  2. HINDALCO — Renukoot
  3. Indian Aluminium Company — Hirakund
  4. NALCO — Koraput


Q-7)   What is/are the recent policy initiative of the government of India to promote the growth of the manufacturing sector?
  1. Setting up of National Investment and Manufacturing Zones.
  2. Providing the benefit of single window clearance.
  3. Establishing the technology acquisition and development fund.
Select the correct answer using the codes given below :

(a)

(b)

(c)

(d)

Explanation:

The recent policy initiative of the government of India to promote the growth of the manufacturing sector is setting up

  1. National Investment and manufacturing zones,
  2. providing the benefit of single window clearance and establishing the technology acquisition and development.


Q-8)   Consider the following statements:
  1. Bombay Stock Exchange (BSE) launched BSE Carbonex.
  2. Carbonex is the first carbon-based thematic index of India.
  3. Bombay Stock Exchange (BSE) has launched Islamic Equity Index.
Which of the above is/are correct?

(a)

(b)

(c)

(d)

Explanation:

The BSE and S&P Dow Jones Indices have launched an Islamic Equity Index — S&P BSE 500 Shariah Index. — comprising, the largest 500 companies in the Indian index. 

BSE launched BSE Carbonex, the first carbon-based thematic index in the country, which takes a strategic view of organisational commitment to climate change mitigation.


Q-9)   Consider the following objectives of the National Manufacturing Policy (NMP) of the Indian Economy?
  1. To enable the manufacturing sector to contribute at least 25% of GDP by 2022.
  2. To create 500 million additional jobs in the manufacturing sector by 2022.
  3. To create the appropriate skill sets among the rural migrant and urban poor for their easy absorption in the manufacturing sector.
  4. To allow more Foreign Direct Investment in the Manufacturing sector by 2017?
Which of the statements given above are correct?

(a)

(b)

(c)

(d)

Explanation:

The Government of India has announced a National Manufacturing Policy with the objective of enhancing the share of manufacturing in GDP to 25% within a decade and creating 100 million jobs.

It also seeks to empower rural youth by imparting necessary skill sets to make them employable. Sustainable development is integral to the spirit of the policy and technological value addition in manufacturing has received special focus.


Q-10)   Consider the following statements about Special Drawing Rights (SDR):
  1. It is an international financing instrument.
  2. It is created in 2000.
  3. It is neither paper nor gold but an accounting entry.
  4. IMF is associated with it.
Which of the above statements are correct

(a)

(b)

(c)

(d)

Explanation:

SDR (Special Drawing Rights) is an international financing instrument created in 1970 by the International Monetary Fund (IMF).

It is also called paper gold, an SDR is neither paper nor gold but an accounting entry.

It is not backed by any currency or precious metal and is used only among governments and IMF for the balance of payments settlements.


Q-11)   The Government of India earns maximum revenue from

(a)

(b)

(c)

(d)

Explanation:

The Government of India earns maximum revenue from Union Excise Duty which is indirect tax levied and collected on the goods manufactured in India and consumed within the country.


Q-12)   The BPL formula was suggested for the evaluation of poverty in the chairmanship of

(a)

(b)

(c)

(d)

Explanation:

Prof. Tendulkar’s pioneering contribution was his extensive work on poverty and the estimation of people below the poverty line (BPL).

A committee was formed by the government of India in 2009, with Tendulkar as Chairman to 'report on methodology of estimation of poverty'.

In 2009, this committee came out with a new method to calculate poverty.


Q-13)   Arrange the following Acts in order in which they were enacted. Use the codes given below.
  1. The Industrial Employment (Standing orders) Act.
  2. The Indian Trade Unions Act
  3. The Industrial Disputes Act
  4. The Employment Exchange (Compulsory Notification) Act
Codes:

(a)

(b)

(c)

(d)

Explanation:


Q-14)   When was the “Package for Promotion of Micro and Small Enterprises” announced?

(a)

(b)

(c)

(d)

Explanation:

In February 2007, a “Package for Promotion of Micro and Small Enterprises” was announced.

This includes measures addressing concerns of credit, fiscal support, cluster-based development, infrastructure, technology, and marketing.

Capacity building of MSME Associations and support to women entrepreneurs are the other important attributes of this package.


Q-15)   Which Indian Company has been included for the first time in U.S. A’s index NASDAQ-100?

(a)

(b)

(c)

(d)

Explanation:

Software major Infosys Technologies is included in the coveted Nasdaq-100 Index.

This is the first time that an Indian company has found a place in a stock index outside the country.


Q-16)   In India ‘Report on Currency and Finance’ is the annual publication of

(a)

(b)

(c)

(d)

Explanation:

In India, ‘Report on Currency and Finance’ is the annual publication of Reserve Bank of India.

The report highlights the evaluation or devaluation of rupee as a currency along with its other aspects and projects the financial condition of the economy.


Q-17)   Which one of the following is a raw material oriented industry?

(a)

(b)

(c)

(d)

Explanation:

Crude oil is the basic raw material upon which all refinery processes are founded.


Q-18)   Consider the following statements regarding the “Concessional Finance Scheme”:
  1. Under the scheme, projects are selected by the Ministry of External Affairs
  2. Under the scheme, Govt. of India gives a 2% interest subsidy
  3. The scheme is operated through EXIM Bank of India
Select the correct answer using the code given below:

(a)

(b)

(c)

(d)

Explanation:

Under the Concessional Finance Scheme (CFS), Govt. of India supports Indian entities bidding for strategically important infrastructure projects abroad.

The Scheme is presently being operated through the Export-Import (EXIM) Bank of India, which raises resources from the market to provide concessional finance to the Indian entities abroad. Govt. of India provides counter guarantee and interest equalization (subsidy) support of 2% to the EXIM Bank.

Under the Scheme, the Ministry of External Affairs (MEA) selects the specific projects keeping in view the strategic interest of India and sends the same to the Department of Economic Affairs (DEA). There is an inter-ministerial committee that approves the project for availing CFS. Once approved by the Committee, DEA issues a formal letter to EXIM Bank conveying approval for financing of the project under CFS.

Prior to the introduction of CFS, Indian entities were not able to bid for large projects abroad since the cost of financing was very high for them and bidders from other countries such as China, Japan, Europe and the US were able to provide credit at superior terms,

i.e., lower interest rate and longer tenures which works to the advantage of bidders from those countries.


Q-19)   Consider the following statements regarding the "Zero Defect, Zero Effect (ZED)" scheme:
  1. The scheme is for the MSME sector
  2. It ensures producing high-quality manufacturing products
  3. It ensures minimal negative impact on the environment.
  4. It is a cornerstone of the flagship Make in India programme
Select the correct answer using the code given below:

(a)

(b)

(c)

(d)

Explanation:

Micro Small and Medium Enterprises (MSMEs) sector are crucial for the economic progress of India and it must match global quality control standards. The Zero Defect, Zero Effect (ZED) scheme was launched in October 2016 to ensure that all the MSMEs are delivering top quality products and using clean technology.

This means the public will now onwards be able to use clean technology products and they will also set parameters that are specific to each industry. The main purpose of the scheme is to match the global quality control standards.

The ZED scheme is the cornerstone of the Make in India project which aims to turn India into a manufacturing hub and generate jobs and increase incomes and boost the overall economy of the country.


Q-20)   Which of the following statements are true regarding the "Open Acreage Licensing Policy (OALP)"?
  1. The policy is for the oil and gas sector
  2. Any private developer can participate without experience in the oil and gas sector
  3. Private players can suggest to Government to put specific blocks on bid
  4. The policy is a part of the New Exploration Licensing Policy
Select the correct answer using the code given below:

(a)

(b)

(c)

(d)

Explanation:

The government of India in 2016 launched the Hydrocarbon Exploration and Licensing Policy (HELP) for the exploration and production (E&P) of oil and gas which will replace the New Exploration Licensing Policy (NELP). The following are some of the important features of the policy:

A uniform/single license to enable the EØ&P operators to explore and extract conventional and unconventional oil and gas resources including Coal Bed Methane, Shale Gas/Oil, Tight gas, Gas hydrates and any other resource which falls within the definition of "Petroleum" and "Natural Gas"

Open Acreage Licensing Policy (OALP): Earlier E&P operators were forced to bid for only those blocks which were chosen by the government. Now they can apply for particular areas/blocks they deem to be attractive to invest in, and the Centre will put those areas up for bids.

This is more attractive for prospective operators because, in the past, the blocks are chosen by the government often were large swathes of land or sea in which only a small fraction had hydrocarbon reserves. By offering companies the freedom to choose exactly the areas they want to explore, and their size, the government has a better chance to woo serious energy investors in an effort to help achieve a more cohesive framework of the country’s energy security.

The E&P operators will have to bid for the blocks based on a revenue-sharing model rather than profit sharing. Bidders will be required to quote % of revenue share to the Govt. in their bids which will be a key parameter for selecting the winning bid. In this model the operator will have to share the revenue with the government from the first year of production notwithstanding the operator is making a profit or loss.

This model does not require auditing of costs incurred by the operator but is riskier for investors as it requires sharing of the revenues with the government from the first year itself before the operators have recovered their costs and even if they are making losses.

National Data Repository, which is envisaged as a centralized database of geological and hydrocarbon information, in line with the Digital India initiative, will be available to all. Besides allowing potential investors to make informed decisions, this will open up a new sector in India.

There are a number of companies around the world that make it their business to simply explore hydrocarbon basins and sell the information they gather. The new initiative seeks to incentivise such prospectors.