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

Answer: (b)

Answer: (b)

According to the latest figures released by Government –

Goa leads the country with a per capita income of Rs.1,92,652/-,

while Bihar has the lowest with a per capita income of only Rs.24,681/-.

An average Goan earns 6 times more than an average Bihari.

Answer: (c)

Branch banking implies engaging in banking activities such as accepting deposits or making loans at facilities away from a bank's home office. It means a system of banking in which a banking organization works in more than one place. The main place of business is called head office and other places of business are called branches.

The head office controls and coordinates the work at branches. This system of banking is prevalent throughout the world. In India also, all the major banks have been operating under a branch banking system.

Answer: (b)

Answer: (b)

The Tarapore Committee on capital account convertibility had laid down a three year, three-phase schedule for allowing convertibility.

It laid down three pre-conditions:

1. fiscal consolidation implying that the centre’s fiscal deficit should come down to 3.5 per cent of GDP;
2. a mandated inflation target; and
3. strengthening of the financial system to
   1. involve a near-complete clampdown on activities of weak banks,
   2. major cut in the CRR, and
   3. complete deregulation of interest rates.

Answer: (a)

Income Tax (corporate and non-corporate combined) contribute about 56 per cent of the 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. The Government of India earns maximum from Union Excise Duty