introduction to indian economy section 6 MCQ Questions & Answers Detailed Explanation

Answer: (d)

The Imperial Bank of India came into existence on 27 January 1921. It was the oldest and the largest commercial bank of the Indian subcontinent, and was subsequently transformed into State Bank of India in 1955.

Answer: (d)

National Income is the Net National Product at the factor cost.

(NI = NNP at factor cost = NNP at market price – Indirect taxes + subsidies)

Answer: (b)

Pradhan Mantri Jan Dhan Yojana is India's national mission for financial inclusion to ensure access to financial services, namely banking savings & deposit accounts, remittance, credit, insurance, pension in an affordable manner.

This financial inclusion campaign was launched by the Prime Minister of India Narendra Modi on 28 August 2014.

Answer: (c)

India changed from the rupee, anna, pie system to decimal currency on 1 April 1957. To distinguish between the two, the coins minted between 1957 and 1964 have the legend “Naya Paisa” (“new” paisa).

Answer: (b)

The small-scale industries sector plays a vital role in the growth of the country. It contributes almost 40% of the gross industrial value added in the Indian economy.

Answer: (a)

The basis of determining dearness allowance (D.A.) to government employees in India is the consumer price index. Dearness Allowance (DA) is an allowance paid to employees to compensate them for the erosion of real income/wage due to inflation.

The increase in the cost of living and the consequent erosion of income is measured in terms of a consumer price index number and, DA to be sanctioned to employees is determined on the basis of the percentage increase in that index.