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

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: (a)

State Government transactions are carried out by the Reserve Bank of India in terms of the agreement entered into with the State Governments in terms of section 21 A of the Act.

As of now, such agreements exist between RBI and all the State Governments except with the Government of Jammu and Kashmir.

Answer: (c)

A currency is deemed convertible on the current account if it can be freely converted into other convertible currencies for the purchase and sale of commodities and services.

For example, if the rupee is convertible on the current account an Indian firm should be able to freely convert the rupee into Yen (JPY) to purchase from a Japanese Company.

Since August 20, 1994, the rupee has been made a freely convertible currency on the current account.

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: (a)

Income Tax (corporate and non-corporate combined) contribute about 56 per cent of tax revenue of India. But, income tax, apart from agricultural income is shared between the Union and states. Among the given options, Excise duty is the chief and single largest source of revenue income.

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).