Practice Introduction - indian economy mcq Online Quiz (set-2) For All Competitive Exams

The current Fiscal Deficit percentage in GDP (Gross Domestic Product) is 4 per cent.

Note: In his budgetary speech Finance Minister Arun Jaitley pegs fiscal deficit at 3.2% of GDP for 2017-18.

Industrial and Commercial Bank of China (ICBC) tops the list of global banks, with a market capitalisation of $285 billion, over seven times that of HDFC Bank.

The Reserve Bank of India formulates Monetary Policy in India.

Infosys Technologies became the first Indian company to be listed on the US NASDAQ in March 1999. Infosys was incorporated on July 2, 1981 as a private limited company in India. It became public limited company in June 1992.

The Government of India nationalized 14 major commercial banks in July 1969. This was followed by a second phase of nationalization in 1980, when Government of India acquired the ownership of 6 more banks, thus bringing the total number of nation-alised banks to 20.

The tertiary sector of the economy (also known as the service sector) is one of the three economic sectors. The service sector consists of activities where people offer their knowledge and time to improve productivity.

Examples of tertiary industries may include the following:

1. telecommunication,
2. hospitality industry/tourism,
3. mass media,
4. healthcare/hospitals,
5. information technology,
6. banking,
7. insurance,
8. investment management,
9. accountancy,
10. legal services,
11. consulting,
12. retail sales,
13. real estate,
14. education.

Mumbai is the commercial capital of India. It is one of the world's top 10 centres of commerce in terms of global financial flow, generating 5% of India's GDP, and accounting for 25% of industrial output, 70% of maritime trade in India (Mumbai Port Trust & JNPT), and 70% of capital transactions to India's economy.

The city houses important financial institutions such as the Reserve Bank of India, the Bombay Stock Exchange, the National Stock Exchange of India, the SEBI and the corporate headquarters of numerous Indian companies and multinational corporations.

Navratna was the title given originally to nine Public Sector Enterprises (PSEs) identified by the Government of India in 1997 as “public sector companies that have comparative advantages”, giving them greater autonomy to compete in the global market so as to “support [them] in their drive to become global giants”.

The number of PSEs having Navratna status has been raised to 16, the most recent addition being Oil India Limited.

The list of such companies is:

1. Bharat Heavy Electricals Limited;
2. Bharat Electronics Limited;
3. Bharat Petroleum Corporation Limited;
4. Hindustan Aeronautics Limited;
5. Hindustan Petroleum Corporation Limited;
6. Mahanagar Telephone Nigam Limited;
7. National Aluminium Company Limited;
8. National Mineral Development Corporation Limited;
9. Neyveli Lignite Corporation Limited;
10. Oil India Limited;
11. Power Finance Corporation Limited;
12. Power Grid Corporation of India Limited;
13. Rashtriya Ispat Nigam Limited;
14. Rural Electrification Corporation Limited;
15. Shipping Corporation of India Limited;
16. GAIL (India) Limited.

The first stage of stable or slow population growth:

The growth of the population was slow due to the high death rate which nullified the high birth rate. In this stage, these economies were primitive and primarily agrarian, with widespread illiteracy, poor sanitation and health care conditions, negligible knowledge of family planning and large family sizes which contributed to factors such as high fertility rate and high death rate.

In the period between the first and the second stages, the death rates start reducing and birth rates remain stable which brings an imbalance in the economy. Measures like diseases control, improving nutrition levels, and sanitation improvement are implemented to reduce death rates, but the measures for controlling birth rates are not implemented, which results in a population explosion. This required a period of transition for adjustment, thus bringing the second stage of transition.

The second stage of population explosions:

In this stage rise in income levels contributed to improvement in health care, education, disease control and so on which in turn contributed to reducing the death rates. This accelerated the growth of the population. The family size reduced and improved trade and economic conditions resulted in more food and better food habits which further helped the population to grow at a much higher rate than in the first stage. The demographic changes brought imbalances in the economy, creating conditions for further transition of society.

The third stage of low birth rates and low death rates:

Modernization and industrialization changed the living pattern in such nations, the rural population shifted to cities and family sizes were reduced to become nuclear families. The standard of living increased which further brought down mortality rates and birth rates. As a result, the growth of the population declined.

Since independence, India’s economic development has been guided by the twin objectives

1. a rapidly and technologically progressive economy by democratic means; and
2. a social order based on justice, offering equal opportunity to every citizen of the country.

During last decade tertiary sector has shown remarkable expansion. The economy is divided into three sectors on the basis of activities–primary, secondary and tertiary.

Primary sector is involved in agriculture, Secondary sector is involved in manufacturing, mining, construction while tertiary sector is involved in trade, transport, communication, banking & other services.

In the last decade, India has expanded maximum in providing services like IT, Telecommunication, Healthcare, Tourism which is contributing around 60% to GDP.

Tertiary sector of the Indian Economy contributes the largest to the GNP. During the last decade tertiary sector has shown remarkable expansion. The economy is divided into three sectors on the basis of activities-Primary, Secondary and tertiary.

Primary sector is involved in agriculture, Secondary sector is involved in manufacturing, mining, construction while tertiary sector is involved in trade, transport, communication, banking & other services.

In the last decade, India has expanded maximum in providing services like IT, Telecommunication, Healthcare, Tourism which is contributing around 60% to GDP.

Plan Holiday refers to three annual plans implemented during 1966-69 after the end of the Third Five Year Plan (1961-66).

During these plans, a whole new agricultural strategy involving the widespread distribution of High–Yielding Varieties (HYVs) of seeds, the extensive use of fertilizers, exploitation of irrigation potential and soil conservation was put into action to tide – over the crisis in agricultural production.

The exchange rate can be defined as the value of one currency in terms of another. India follows a floating exchange rate system for the determination of the exchange rate.

A floating exchange rate system can be defined as a system where the exchange rate between currencies is not fixed but keep fluctuating, as they are determined by the demand and supply for the domestic currency in the international market.

India has been operating on a managed floating exchange rate regime since March 1993, marking the start of an era of a market-determined exchange rate regime of the rupee with provision for timely intervention by the central bank.

Globalization can affect the labour market by increasing the capacity of developing countries to create new opportunities for work and production following the alleviation of price distortions with respect to both labour and capital. Globalization on business management is the interconnection of international markets and managing businesses in a global industry.

This includes the management of resources for foreign investments whereby a company expands its business and invests in foreign countries. Globalization means inter-linkage among the countries of the globe. This can only happen when infrastructure is in proper shape.

A well-developed infrastructure is an indispensable condition for faster globalization.

When development in the economy takes place, the share of the tertiary sector in national income keeps on increasing because the tertiary sector is involved in services within and outside the country.

With development the disposable income of individuals income results in the growth of banking, trading, communication etc., both domestically and internationally.

In the parlance of economy, Gild-edged market is called market of safe securities. “Gildedged” denotes high-grade securities, consequently carrying low yields.