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

Answer: (b)

Stagflation is a condition of slow economic growth and relatively high unemployment.

It is accompanied by a rise in prices, or inflation. Stagflation occurs when the economy isn’t growing but prices are increasing, which is not a good situation for a country to be in.

Answer: (d)

A non-bank financial institution (NBFI) is a financial institution that does not have a full banking license or is not supervised by a national or international banking regulatory agency.

LIC is an example of a NonBanking Financial institution.

Answer: (a)

Dadabhai Naoroji prepared the first estimates of National income in 1876. He estimated the national income by first estimating the value of agricultural production and then adding a certain percentage as non-agricultural production.

Answer: (c)

Indian Oil Corporation Limited is the largest commercial undertaking and India’s No.1 Company in Fortune the magazine’s prestigious listing of the world’s 500 largest Corporations, ranked 98 for the year 2011 based on fiscal 2010 performance.

Answer: (c)

The Foreign Exchange Management Act, 1999 (FEMA) is an Act of the Parliament of India “to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India”.

It was passed in the winter session of Parliament in 1999, replacing the Foreign Exchange Regulation Act (FERA).

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.