introduction to indian economy section 1 MCQ Questions & Answers Detailed Explanation
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The following question based on Introduction to Indian Economy topic of indian economy mcq
(a) Seventh Plan
(b) Fourth Plan
(c) Third Plan
(d) Sixth Plan
The correct answers to the above question in:
Answer: (d)
The sixth five-year plan had long-term objectives of removal of poverty and the achievement of self-reliance.
It also aimed at the achievement of economic and technological self-reliance with the help of modernisation.
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Read more introduction Based Indian Economy Questions and Answers
Question : 1
Consider the following statements in regard to ‘Marginal Standing Facility (MSF)’ of RBI :
- It will help in reducing volatility in the overnight lending rates in the inter-bank market.
- The borrowing under the MSF should be over and above the statutory liquidity requirement.
a) 2 only
b) Both 1 and 2
c) 1 only
d) Neither 1 nor 2
Answer »Answer: (c)
Marginal Standing Facility (MSF) is the rate at which scheduled banks could borrow funds overnight from the Reserve Bank of India (RBI) against approved government securities.
Banks can borrow funds through MSF during acute cash shortages (considerable shortfall of liquidity). This measure has been introduced by RBI to regulate short-term asset-liability mismatch more effectively and the borrowing is within Statutory liquidity requirements.
The Marginal Standing Facility (MSF) is pegged 100bps or 1 % above the Repo Rate.
Question : 2
Indian economy is a developing economy as there is?
- Dominance of agriculture.
- Huge unemployment
- Low quality of human capital
- Low per capita consumption.
a) 1 and 4
b) 2 and 3
c) 1, 2 and 3
d) 1, 2, 3 and 4
Answer »Answer: (d)
Question : 3
Of the following land uses, which is restricted to Special Economic Zones ?
a) Information Technology Companies
b) Free trade Centres
c) Marketing Centres
d) Educational Institutions
Answer »Answer: (b)
The category Special economic zone includes free trade zones (FTZ), export processing Zones (EPZ), free Zones (FZ), industrial parks or industrial estates (IE), free ports, free economic zones, and urban enterprise zones.
The goal of an SEZ structure is to increase foreign direct investment by foreign investors.
Question : 4
The Oilseeds Production Programme (OPP) was launched in
a) 1987
b) 1986
c) 1988
d) 1990
Answer »Answer: (b)
The Government of India started the Oil Seeds Production programme in 1986 to harness the best of production, processing and management technologies to accelerate self-reliance in oilseeds and vegetable oils.
The programme was designed to supplement the efforts of the state governments to increase the production and productivity of groundnut, rapeseed/ mustard, soybean, sunflower, Sesamum, castor, safflower, linseed and Niger grown in the states.
Question : 5
Which of the following Government of India programmes aims to help, build or upgrade dwelling units of below the poverty line rural families?
a) Jawahar Rozgar Yojana
b) National Social Assistance Programme
c) Indira Awaas Yojana
d) Jawaharlal Nehru National Urban Renewal Mission
Answer »Answer: (c)
India Awas Yojana is a Government of India social welfare programme to provide housing for the rural poor in India.
Started in 1985 as part of the Rural Landless Employment Guarantee Programme (RLEGP), Indira Awas Yojana was subsumed in Jawahar Rozgar Yojana in 1989 and has been operating as an independent scheme since 1996.
Question : 6
The basic regulatory authority for mutual funds and stock markets lies with the
a) Reserve Bank of India
b) Government of India
c) SEBI
d) Stock Exchange
Answer »Answer: (c)
The Securities and Exchange Board of India (frequently abbreviated SEBI) is the regulator for the securities market in India.
SEBI has to be responsive to the needs of three groups, which constitute the market:
- the issuers of securities;
- the investors; and
- the market intermediaries.
It is entrusted with regulating the business in stock exchanges and any other securities markets;
- registering and regulating the working of stockbrokers,
- sub-brokers,
- share transfer agents,
- bankers to an issue,
- trustees of trust deeds,
- registrars to an issue,
- merchant bankers,
- underwriters,
- portfolio managers,
- investment advisers and
- such other intermediaries who may be associated with securities markets in any manner; registering and regulating the working of [venture capital funds and collective investment schemes], including mutual funds; etc.
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