Practice Quiz set 12 - indian economy mcq Online Quiz (set-1) For All Competitive Exams
Q-1) Which of the following institution deals with credit to agriculture and rural development ?
(a)
(b)
(c)
(d)
National Bank for Agriculture and Rural Development (NABARD) deals with matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas in India. It was established on 12 July 1982 by a special Act of parliament for the upliftment of rural India.
Q-2) Consider the following statement related to population- An effective employment policy, which can absorb the growing number of workers and promote economic growth.
- An imaginative family planning programme to encourage families to adopt the small family norm.
Which among the above statements is / are not correct?
(a)
(b)
(c)
(d)
The problem of over population can be solved by two ways
An effective employment policy, which can absorb the growing number of workers and promote economic growth.
An imaginative family planning programme to encourage families to adopt the small family norm.
Q-3) Consider the following statements in regard to money market in India: - It is a market for short-term and long-term funds with maturity ranging from overnight to one year.
- It acts as an instrument of liquidity adjustment for the Central Bank.
Which of the statements given above is/are correct?
(a)
(b)
(c)
(d)
The money market consists of financial institutions and dealers in money or credit who wish to either borrow or lend. Participants borrow and lend for short periods of time, typically up to thirteen months. Money market trades in short-term financial instruments commonly called “paper.”
Q-4) To obtain full benefits of demographic dividend, what should India do ? - Promoting skill development
- Introducing more social security schemes
- Reducing infant mortality rate
- Privatisation of higher education
Which of the above statements is/are correct ?
(a)
(b)
(c)
(d)
To rip maximum demographic dividend, India has to promote skill development. This is what Economic Survey and 12th FYP have been advocating.
Q-5) Consider the following statements about ‘hidden price rise’ and select the correct code : - A situation of reduction in quality or amount of a product offered at an unchanged price
- A situation of increase in indirect taxes on goods, which compromises on the quality of the goods offered for sale
Code :
(a)
(b)
(c)
(d)
For example, reduction in the weight of a packet of chocolate sold at the same price as before. This may take place in quality, too.
Q-6) The decimal system of Indian currency was started in
(a)
(b)
(c)
(d)
India became independent on 15 August 1947 and was left with a legacy of non-decimal coinage. One rupee was divided into 16 annas or 64 pice, with each anna therefore equal to 4 pice. In 1957, India shifted to the decimal system, but for a short period, both decimal and non-decimal coins were in circulation.
To distinguish between the two pice, the coins minted between 1957 and 1964 have the legend “Naya Paisa” (“new” paisa). The denominations in circulation were 1, 2, 5, 10, 20, 25, 50 (Naya paise and one rupee which remained as the same pre-decimal value.
Therefore pre-decimal coins of one, half and quarter rupees could remain in circulation after decimalisation. The rupee remained unchanged in value and nomenclature.
It, however, was now divided into 100 ‘paisa’ instead of 16 annas or 64 pice. For public recognition, the new decimal Paisa was termed ‘Naya Paisa’ till 1 June 1964 when the term ‘Naya’ was dropped.
Q-7) The Reserve Bank of India was nationalised in the year
(a)
(b)
(c)
(d)
The Reserve Bank of India was set up on the basis of the recommendations of the Hilton Young Commission. The Reserve Bank of India Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank, which commenced operations on April 1, 1935.
The Reserve Bank of India was nationalised with effect from 1st January 1949 on the basis of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948.
All shares in the capital of the Bank were deemed transferred to the Central Government on payment of suitable compensation.
Q-8) Which one is not included in NonBanking Financial Institutions (NBFIs)?
(a)
(b)
(c)
(d)
A non-bank financial institution is a financial institution that does not have a full banking license or is not supervised by a national or international banking regulatory agency.
NABARD, EXIM, SIDBI are examples of NBFIs. Bank of India (BoI) is a Mumbai-headquartered commercial bank that has been government-owned since nationalization in 1969.
Q-9) Consider the following statements in regard to ‘poverty line’ :
- The International poverty line according to World Bank is US $ 1.25/day/person based on PPP (Purchasing Power Parity).
- Planning commission of India has defined poverty line based on intake of calories and is different for rural and urban areas.
Which of the statements given above is/are correct?
(a)
(b)
(c)
(d)
The poverty line is a minimum level of income deemed adequate in a particular country. The common international poverty line has in the past been roughly $1 a day.
In 2008, the World Bank came out with a revised figure of $1.25 at 2005 purchasing power parity.
In India, the poverty line is identified in monetary units as the level of income or consumption expenditure required in order to avoid poverty.
Q-10) In the context of the Indian economy, consider the following statements
- The growth rate of GDP has steadily increased in the last five years.
- The growth rate in per capita income has steadily increased in the last five years.
- The growth rate of GDP has steadily increased.
Which of the statements given above is/are correct?
(a)
(b)
(c)
(d)