introduction to indian economy section 1 MCQ Questions & Answers Detailed Explanation

Answer: (a)

The Indian economy constitute of predominance of agriculture, low per capita income, massive unemployment.

Answer: (d)

Ways and means advances (WMA) is a mechanism used by the Reserve Bank of India (RBI) under its credit policy by which provides to the States banking with it to help them to tide over temporary mismatches in the cash flow of their receipts and payments.

These are temporary advances (overdrafts) extended by RBI to the government. Section 17(5) of the RBI Act allows RBI to make WMA both to the Central and State governments. It aims to bridge the interval between expenditure and receipts.

Answer: (c)

India switched over to decimal currency in 1957 with the amendment of the Indian Coinage Act. The rupee remained unchanged in value and nomenclature. It, however, was now divided into 100 ‘Paisa’ instead of 16 Annas.

Answer: (b)

Karnataka’s Chief Minister Siddaramaiah, in March 2016, made the announcement to abolish the tax on agricultural income while presenting the State Budget for 2016-17.

This in turn will provide relief to many tea and coffee companies besides thousands of individual coffee growers. Plantation companies had to pay a 35 per cent tax on their net income.

Answer: (b)

The category Special economic zone includes free trade zones (FTZ), export processing Zones (EPZ), free Zones (FZ), industrial parks or industrial estates (IE), free ports, free economic zones, and urban enterprise zones.

The goal of an SEZ structure is to increase foreign direct investment by foreign investors.

Answer: (d)