introduction to indian economy section 4 MCQ Questions & Answers Detailed Explanation

Answer: (d)

ICICI (Industrial Credit and Investment Corporation of India) Bank is an Indian multinational banking and financial services company headquartered in Mumbai, Maharashtra.

It is the largest private sector bank and overall the second largest bank in India after State Bank of India.

Answer: (d)

The Reserve Bank of India is the main monetary authority of the country and besides 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 has to ensure an adequate flow of credit to productive sectors.

Objectives are maintaining price stability and ensuring adequate flow of credit to productive sectors.

Answer: (d)

Answer: (c)

NTPC Limited is the largest Indian state-owned electric utilities company based in New Delhi, India.

NTPC’s core business is engineering, construction and operation of power generating plants and providing consultancy to power utilities in India and abroad.

The name of the Company “National Thermal Power Corporation Limited” was changed to “NTPC Limited” with effect from 28 October 2005. The primary reason for this was the company’s foray into hydro and nuclear-based power generation along with backward integration by coal mining.

The Power Grid Corporation of India is an Indian state-owned electric utility company headquartered in Gurgaon, India. Power Grid wheels about 50% of the total power generated in India on its transmission network.

Power Grid has also diversified into the Telecom business and established a telecom network of more than 25,000 km across the country.

Answer: (c)

The process of curing inflation by reducing money supply is called disinflation. Disinflation is a decrease in the rate of inflation – a slowdown in the rate of increase of the price level of goods and services in GDP. Disinflation occurs when the increase in the “consumer price level” slows down from the previous period when the prices were rising.

Answer: (b)

The interest paid on bonds is known as ‘coupon’ or ‘coupon rate’. Bonds and debentures both are the instruments of raising long-term capital but while the former is supported by collateral in the former is supported by collateral in the form of immovable property, the latter are not.