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

Answer: (c)

During the last decade, the tertiary sector has shown remarkable expansion. The economy is divided into three sectors on the basis of activities–primary, secondary and tertiary.

Primary sector is involved in agriculture, the secondary sector is involved in manufacturing, mining, construction while the tertiary sector is involved in trade, transport, communication, banking & other services. In the last decade, India has expanded maximum in providing services like IT, Telecommunication, Healthcare, Tourism which is contributing around 60% to GDP.

Answer: (d)

According to Prof. Kindleberger, Todaro, Lewis and Nurkse etc., agriculture makes its contribution to economic development in several ways, viz.,

By providing food and raw material to non-agricultural sectors of the economy,

By creating demand for goods produced in non-agricultural sectors, by the rural people on the strength of the purchasing power, earned by them on selling the marketable surplus,

By providing investable surplus in the form of savings and taxes to be invested in non-agricultural sector,

By earning valuable foreign exchange through the export of agricultural products, etc.

Answer: (d)

The National Development Council (NDC) or the Rashtriya Vikas Parishad is the apex body for decision making and deliberations on development matters in India, presided over by the Prime Minister.

The functions of the Council are

1. to prescribe guidelines for the formulation of the National Plan;
2. to consider the National Plan as formulated by the NITI Aayog;
3. to consider important questions of social and economic policy affecting national development; and
4. to review the working of the Plan from time to time and to recommend such measures as are necessary for achieving the aims and targets set out in the National Plan.

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: (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: (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.