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

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: (b)

Coins may be coined at the Mint for issue under the authority of the Central Government, (of such denominations not higher than one hundred rupees), of such dimensions and designs, and of such metals or of mixed metals of such composition as the Central Government may, by notification in the Official Gazette, determine.) Paper Currency in India consists of notes of various denominations which are issued by the RBI and the Government of India.

The one rupee note is issued by the Ministry of Finance and bears the signature of the secretary. All currency notes are legal tender.

Answer: (d)

The Reserve Bank of India (RBI) is known as the Lender of Last Resort. This is because when a commercial bank faces a financial crisis and fails to obtain funds from other sources, then the central bank provides them with financial assistance in the form of credit.

This role of the central bank saves the commercial bank from bankruptcy. Thus, the RBI plays the role of guarantor for commercial banks and maintains a sound banking system in the economy.

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: (d)

Infosys Technologies became the first Indian company to be listed on the US NASDAQ in March 1999. Infosys was incorporated on July 2, 1981 as a private limited company in India. It became public limited company in June 1992.

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.