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

Answer: (a)

India borrowed features of fundamental duties and planning mechanisms from the former Soviet Union. India opted for a planned economic growth model as resources were scarce at the time of independence.

So it was imperative for the leaders to move along planned model so as to achieve optimum utilization of resources development and meeting the aim of social justice simultaneously.

Answer: (c)

Qualitative credit (used by the RBI for selective purposes) are:

1. Margin requirements,
2. Consumer Credit Regulation,
3. RBI Guidelines,
4. Rationing of credit,
5. Moral Suasion and
6. Direct Action.

The Quantitative Credit measures which control the total quantity of credit are:

1. Bank Rate policy,
2. Open Market Operations,
3. Cash Reserve Ratio and
4. Statutory Liquidity Ratio.

Answer: (a)

National income is the sum total of wages, rent, interest, and profit earned by the factors of production of a country in a year.

Thus it is the aggregate values of goods and services rendered during a given period counted without duplication.

Answer: (d)

Expenditure incurred on the non-development plans is called non-plan expenditure, which includes subsidies, interest payments, etc.

Non-plan revenue expenditure is accounted for by,

1. interest payments,
2. subsidies,
3. wage and salary payments to government employees,
4. grants to States and Union Territories governments,
5. pensions,
6. police, and economic services in various sectors,
7. other general services, such as tax collection, social services, and grants to foreign governments.

Non-plan capital expenditure mainly includes defence, loans to public enterprises, loans to states, Union territories and foreign governments.

Answer: (d)

The Department of Posts, trading as India Post, is a government-operated postal system in India. Owing to its far-flung reach and its presence in remote areas, the Indian postal service is involved in other services such as small savings banking and financial services.

The post office has offered and continues to offer various savings schemes, including National Savings Certificates, the Public Provident Fund, Savings Bank Accounts, Monthly Income Schemes, Senior Citizen Saving Schemes, and Time Deposit Accounts.

Small savings accounts in rural post offices were a keystone to the department’s policy and the department had the largest number of savings accounts across the country.

Answer: (a)

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.