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

Answer: (a)

India, among the countries, has the lowest GDP per capita.

GDP per capita is as follows-

1. India 1509 USD,
2. China 6959 USD,
3. Sri Lanka 3204 USD,
4. Indonesia 3510 USD.

Answer: (b)

India’s Trade Policy 2009-14 had a view to achieve a growth of 15% per annum in export rather than 25% per annum.

Answer: (d)

An excise or excise tax (sometimes called an excise duty) is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country).

It is charged on many goods like cars, writing paper, printing paper and packing paper, drugs and pharmaceuticals, alcoholic liquor, water filtration and purification devices, pan masala, etc.

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: (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: (a)

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