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

Answer: (c)

The national income of a country can be measured by:

1. Product Method or the Output Method
2. Income Method, and
3. Expenditure Method.

The output approach focuses on finding the total output of a nation by directly finding the total value of all goods and services a nation produces.

The expenditure approach is basically an output accounting method.

Under the Income method, national income is measured as a flow of factor incomes.

Answer: (c)

The Government of India set up Regional Rural Banks (RRBs) on October 2, 1975.

Initially, five RRBs were set up on October 2, 1975, which were sponsored by Syndicate Bank, State Bank of India, Punjab National Bank, United Commercial Bank and United Bank of India.

Capital share being 50% by the central government, 15% by the state government and 35% by the scheduled bank

Answer: (c)

The normal duration of the 5th Five Year Plan was 1974-1979.

However, the newly elected Morarji Desai government rejected the plan in 1978 and introduced a new Sixth Five-Year Plan (1978-1983). This plan was again rejected by the Indian National Congress government in 1980 and a new Sixth Plan was made.

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: (d)

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

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.