introduction to indian economy section 1 MCQ Questions & Answers Detailed Explanation

Answer: (b)

Karnataka’s Chief Minister Siddaramaiah, in March 2016, made the announcement to abolish the tax on agricultural income while presenting the State Budget for 2016-17.

This in turn will provide relief to many tea and coffee companies besides thousands of individual coffee growers. Plantation companies had to pay a 35 per cent tax on their net income.

Answer: (b)

After India gained independence, a formal model of planning was adopted, and accordingly the Planning Commission, reporting directly to the Prime Minister of India was established on 15 March 1950. Prime Minister Jawaharlal Nehru was the first chairman.

Answer: (a)

The Indian economy constitute of predominance of agriculture, low per capita income, massive unemployment.

Answer: (d)

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.

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.