introduction to indian economy section 3 MCQ Questions & Answers Detailed Explanation

Answer: (c)

An open market operation (also known as OMO) is an activity by a central bank to buy or sell government bonds on the open market. A central bank uses them as the primary means of implementing monetary policy.

The usual aim of open market operations is to control the short term interest rate and the supply of base money in an economy and thus indirectly control the total money supply.

Answer: (c)

The Reserve Bank of India has the sole right to issue banknotes of all denominations. The distribution of one rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as an agent of the Government.

The system as it exists today is known as the minimum reserve system.

Answer: (a)

A golden handshake is a clause in an executive employment contract that provides the executive with a significant severance package in the case that the executive loses his or her job through firing, restructuring, or even scheduled retirement.

This can be in the form of cash, equity, and other benefits, and is often accompanied by accelerated vesting of stock options.

Answer: (d)

The service sector, also called the tertiary sector, is one of the three parts of the economy in the Threesector hypothesis. It involves the provision of services to businesses as well as final consumers.

Services may involve the transport, distribution and sale of goods from producer to consumers as may happen in wholesaling and retailing, or may involve the provision of a service, such as in pest control or entertainment.

Answer: (d)

Gross National Product refers to the money value of total output or production of final goods and services produced by the nationals of a country during a given period of time, generally a year.

In the calculation of GNP, we include the money value of goods and services produced by nationals outside the country.

Answer: (c)

There are different types of economic types.

1. The benefit of a mixed economy is to achieve a welfare state with a socialistic pattern of society.
2. India is a federal economy.
3. India is a developing economy.
4. India’s population is getting increased in each decade.