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

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: (b)

NNP at factor cost is equivalent to national income. Net National Product at factor cost is the aggregate payments made to the factors of production.

NNP at FC is the total incomes earned by all the factors of production in the form of wages, profits, rent, interest etc. plus net factor income from abroad.

Similarly, National income is the sum total of wages, rent, interest, and profit earned by the factors of production of a country in a year. Thus it is the aggregate values of goods and services rendered during a given period counted without duplication.

Answer: (d)

Multi-purpose river valley projects were hailed as “Temples of Modern India” by Jawaharlal Nehru. They were intended and designed for integrated development in the area concerned.

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: (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: (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.