introduction to indian economy section 6 MCQ Questions & Answers Detailed Explanation
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The following question based on Introduction to Indian Economy topic of indian economy mcq
(a) exports of the IT sector
(b) salary of employees
(c) sales of a firm
(d) sale of land
The correct answers to the above question in:
Answer: (d)
National Income ignores sale of land.
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Read more introduction Based Indian Economy Questions and Answers
Question : 1
The headquarters of RBI is in
a) Kanpur
b) Delhi
c) Mumbai
d) Nasik
Answer »Answer: (c)
The headquarters of the Reserve Bank of India (RBI) is located in Mumbai, Maharashtra. Initially, the headquarter of RBI was in Calcutta (now Kolkata) but in 1937 it was permanently moved to Bombay (now Mumbai).
The RBI commenced its operations on 1 April 1935 during the British Rule in accordance with the provisions of the Reserve Bank of India Act, 1934.
Question : 2
The nationalisation of major commercial banks took place in
a) 1956
b) 1947
c) 1969
d) 1980
Answer »Answer: (c)
The Government of India nationalized 14 major commercial banks in July 1969. This was followed by a second phase of nationalization in 1980, when Government of India acquired the ownership of 6 more banks, thus bringing the total number of nation-alised banks to 20.
Question : 3
Which plan gave emphasis on removal of poverty for the first time ?
a) Fifth
b) Fourth
c) Sixth
d) Seventh
Answer »Answer: (a)
The Fifth Five-Year Plan (1974–1979) laid stress on employment, poverty alleviation, and justice. The plan also focused on self-reliance in agricultural production and defence.
Question : 4
Which State Government has launched the Smart Village Programme, to improve public facilities in village?
a) Rajasthan
b) Maharashtra
c) Odisha
d) Gujarat
Answer »Answer: (d)
The Gujarat government, on 22 May 2014, launched the Smart Village programme to improve public facilities in villages. The objective of the programme is to make villages self-reliant, clean, and hygienic.
It has been conceptualized on the lines of the Smart Cities initiative of the Union Government under which 100 cities were chosen for infrastructure development.
Question : 5
One of the objectives of Industrial Licensing Policy in India was to ensure :
a) free flow of foreign capital in Indian industries.
b) creation of adequate employment opportu-nities.
c) use of modern technology.
d) balanced industrial development across regions.
Answer »Answer: (d)
In India, there are some regulations and restrictions with regard to establishing industries in certain categories. This is done by making it mandatory to obtain licenses before setting up such an industry.
The Licence Raj continued till 1991 (liberalization was introduced) as a result of India’s decision to have a planned economy where all aspects of the economy are controlled by the state and licences are given to a select few.
Up to 80 government agencies had to be satisfied before private companies could produce something and, if granted, the government would regulate production. The Industrial Policy Resolution 1956 aimed at the removal of regional disparities through the development of regions with low industrial bases.
The Indian economy was then guided by the socialistic model of planned development rather than being guided by profit.
Question : 6
Which of the following is not true when the interest rate in the economy goes up?
a) Lending decreases
b) Return on capital increases
c) Cost of production increases
d) Saving increases
Answer »Answer: (b)
The rise in interest rates results in an increased cost of borrowing so lending decreases because businesses do not borrow at a high cost. Moreover, it results in an increase in the cost of production as the cost for all suppliers of raw material increases due to an increase in their borrowing cost.
For individuals, the savings increase as they start saving in lieu of higher return as interest. Higher rates of interest result in a decrease in return on capital as the cost of investment in capital increases.
GET Introduction to Indian Economy PRACTICE TEST EXERCISES
introduction to indian economy section 1
introduction to indian economy section 2
introduction to indian economy section 3
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introduction to indian economy section 5
introduction to indian economy section 6
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introduction to indian economy section 12
introduction to indian economy section 13
introduction to indian economy section 14
Introduction to Indian Economy Shortcuts and Techniques with Examples
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