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

Answer: (a)

Special Economic Zone (SEZ) was established in India with the objectives of:

1. Generation of additional economic activity;
2. Promotion of exports of goods and services;
3. Promotion of investment from domestic and foreign sources;
4. Creation of employment opportunities;
5. Development of infrastructure facilities.

It aimed to attract larger foreign investments.

Answer: (b)

Tata Consultancy Services (TCS) is India’s top software services exporter. TCS is part of the Tata Group conglomerate that also manufactures cars and steel, and serves customers including Citigroup Inc and BP Plc.

It is one of India’s most valuable companies and is the largest India-based IT services company by 2012 revenues.

Answer: (c)

Commercial agriculture is the large-scale production of crops for sale, intended for widespread distribution to wholesalers or retail outlets.

In commercial farming crops such as wheat, maize, tea, coffee, sugarcane, cashew, rubber, banana, and cotton are harvested and sold into world markets.

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: (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: (d)

Currency notes and coins are called fiat money. They don’t have intrinsic value like a gold or silver coin. The currency-deposit ratio measures the relationship between the cash people have on hand and what they have in their accounts.