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

Answer: (c)

IDBI Bank, formerly known as Industrial Development Bank of India, was established in 1July 964 by an Act of Parliament to provide credit and other financial facilities for the development of the fledgling Indian industry. It is headquartered in Mumbai, Maharashtra. It is one of 27 commercial banks owned by the Government of India.

Answer: (c)

The Insurance Regulatory and Development Authority (IRDA) is an autonomous apex statutory body that regulates and develops the insurance industry in India. It was constituted by a Parliament of India act called Insurance Regulatory and Development Authority Act, 1999.

The IRDA Act, 1999 was passed as per the major recommendation of the Malhotra Committee report (1994) which recommended the establishment of an independent regulatory authority for the insurance sector in India. Later, It was incorporated as a statutory body in April 2000.

Answer: (b)

Workers in the Iron and Steel industry hold more than 2000 different types of jobs.

About 80 per cent of all workers are directly engaged in moving raw materials and steel products about the plants, making iron and steel products, and maintaining the vast amount of machinery used in the industry.

In addition, other workers are needed to do clerical, sales, professional, technical, administrative and supervisory works.

Answer: (c)

The Reserve Bank of India is the main monetary authority of the country and beside that the central bank acts as the bank of the national and state governments. It formulates, implements and monitors the monetary policy as well as it has to ensure an adequate flow of credit to productive sectors.

Answer: (a)

The EXIM Policy for 2002-07 which came into effect on 1st April 2002 was the first policy that had to be formulated keeping in view all the commitments India had made under the WTO.

In 2001, all quantitative restrictions on imports were removed. The medium-term export strategy for 2002-07 had set a target of 1 per cent share of global trade by 2006-07.

According to the then estimates by the Directorate-General of Foreign Trade, to corner 1 per cent of the global trade pie, exports needed to grow at a compounded annual growth rate of 14.25 per cent over the next three years.

Answer: (c)

A Pigovian tax is a tax applied to a market activity that is generating negative externalities (costs for somebody else) like cigarette consumption, burning of fossil fuel.