introduction to indian economy section 5 MCQ Questions & Answers Detailed Explanation

Answer: (a)

The PV Narasimha Rao government established the National Renewal Fund (NRF) in February 1992 to provide a social safety net to the workers who were likely to be affected by technological up-gradation and modernisation in the Indian industry.

NRF was intended to provide funds for employment generation schemes in the organised and unorganised sectors in order to provide a social safety net for labour.

Answer: (a)

Indira Vikas Patra was a small scale deposit scheme operated by the post offices all over the country to encourage the idea of investment in the minds of the lower-middle class people.

Answer: (c)

The National Sample Survey Office(NSSO) in India is a unique setup to carry out surveys on socioeconomic, demographic, agricultural and industrial subjects for collecting data from households and from enterprises located in villages and in the towns.

It is a focal agency of the Government of India for the collection of statistical data in the areas which are vital for developmental planning.

Answer: (c)

Originally, the assets of the Issue Department were to consist of not less than two-fifths of gold coin, gold bullion or sterling securities provided the amount of gold was not less than Rs.40 crore in value.

The remaining three-fifths of the assets might be held in rupee coins, Government of India rupee securities, eligible bills of exchange and promissory notes payable in India.

Due to the exigencies of the Second World War and the post-war period, these provisions were considerably modified.

Since 1957, the Reserve Bank of India is required to maintain gold and foreign exchange reserves of Rs.200 crore (2 billion), of which at least Rs.115 crore should be in gold and Rs.85 crore in the form of Government Securities. The system as it exists today is known as the minimum reserve system.

Answer: (a)

The independent review committee headed by Dr P. Rama Rao was set up to review the functioning of the Defence Research and Development Organisation (DRDO).

The following recommendations of the committee were accepted by the government:

1. Nomination of nodal officers for structured interaction between DRDO and Services;
2. Integrated Financial Advice Scheme for financial decentralization; etc.

Answer: (a)

Factors responsible for this are given below:

1. The boost to demand given by monetary and fiscal stimulus following the crisis was large. Final consumption grew at an average of over 8% annually between 2009-10 and 2011-12. The result was strong inflation and a powerful monetary response that also slowed consumption demand.
2. Beginning in 2011-12 corporate and infrastructure investments started slowing both as a result of investment bottlenecks as well as the tighter monetary policy.