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

Answer: (a)

A credit rating agency (CRA) is a company that assigns credit ratings for issuers of certain types of debt obligations as well as the debt instruments themselves. In some cases, the servicers of the underlying debt are also given ratings.

CRISIL is the most influential and largest credit rating agency among all the credit rating agencies in India. ICRA Limited (ICRA) is one of India’s premier financial information services companies. It offers credit rating information and professional financial consulting services across India, as well as in the Asia-Pacific region through its subsidiaries.

CARE Ratings commenced operations in April 1993 and over nearly two decades, it has established itself as the second-largest credit rating agency in India.

The government established The Industrial Finance Corporation of India (IFCI) on July 1, 1948, as the first Development Financial Institution in the country to cater to the long-term finance needs of the industrial sector.

Answer: (d)

Agriculture sector has a high rate of disguised unemplyment. The surplus labours in agriculture sector forms ‘disguised unemployment’.

Answer: (a)

In India, a planned economy is based on the socialist system in which all have equal opportunities to education, healthcare, non-exploitation, equality of wealth etc.

The concept was borrowed from Russia and is based on achieving directive principles mentioned in our constitution.

Answer: (c)

Deficit financing is a pragmatic tool of economic development and has been used by Indian govt. to obtain necessary resources to finance the five year plans.

Answer: (b)

GDP is defined as the value of all final goods and services produced in an economy in a year.

The total quantity of goods produced in an economy during the year is multiplied by their current prices to get the GDP.

Answer: (a)

Indian Economy is highly dependent on agriculture because still the maximum population stays in rural area.