introduction to indian economy section 7 MCQ Questions & Answers Detailed Explanation
MOST IMPORTANT indian economy mcq - 14 EXERCISES
-
Top 500+ Basic Indian Economy GK MCQ Quiz For SSC IBPS »
-
New Indian Economy GK MCQ Quiz PDF For UPSC/IAS Prelims »
-
Basic Indian Economy Concepts MCQs Quiz For RRB NTPC Exam »
-
New 499+ Fundamentals of Indian Economy MCQ Quiz For IBPS »
-
555+ Indian Economy Concepts Basics Fundamentals MCQ Quiz »
-
Top 500+ Indian Economy GK MCQs Quiz PDF For SSC UPSC RRB »
-
New 499+ Indian Economy GK Question And Answers Quiz PDF »
-
Best 500+ Indian Economy General Knowledge MCQ Quiz PDF »
-
500+ Indian Economy General Studies Online MCQ Quiz PDF »
-
New 500+ Indian Economy Basic Static GK MCQ Quiz For IBPS »
-
500+ Introduction to Indian Economy GK MCQ Quiz For SSC »
-
800+ Latest Indian Economy GK Questions & Answers MCQ PDF »
-
1000+ Indian Economy GK Questions And Answers Quiz PDF »
-
1000+ Indian Economy Basic Concepts GK MCQ PDF For SBI PO »
The following question based on Introduction to Indian Economy topic of indian economy mcq
(a) Open Market Operations
(b) Bank Rate Policy
(c) Cash Reserve Ratio
(d) Moral Suasion
The correct answers to the above question in:
Answer: (d)
The Central Bank uses Quantitative control to regulate the volume of total credit. Quantitative methods are:
- Manipulation of Bank Rate;
- Open market operations;
- Manipulation of Cash reserve ratio;
- Repo & Reverse Repo; and
- Altering Statutory Liquidity Ratio.
Moral persuasion and direct action is a qualitative method.
Discuss Form
Read more introduction Based Indian Economy Questions and Answers
Question : 1
State which amongst the following is not true about VAT ?
a) State have discretion to fix the rate of tax within the four rates prescribed
b) All States have uniform VAT for the same product
c) It will promote production efficiency of investments
d) It will make our exports more competitive
Answer »Answer: (d)
A value-added tax (VAT) is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price.
From that of the seller, it is a tax only on the value added to a product, material, or service, from an accounting point of view, by this stage of its manufacture or distribution. Being a consumption tax, VAT is usually used as a replacement for sales tax.
Ultimately, it taxes the same people and businesses the same amounts of money, despite its internal mechanism being different. This means that, without special measures, goods that are imported from one country that does have VAT to another country that does not have VAT will be taxed twice.
The exporting country will charge VAT and the importing country will charge sales tax.
Question : 2
Wholesale price based inflation rate in India reached its highest level in 13 years on 27th July, 2008. It was
a) 11.85 per cent
b) 11.75 per cent
c) 12.6 per cent
d) 12.05 per cent
Answer »Answer: (c)
Inflation increased steadily during 2008, reaching 8.75% by the end of May and in June when this jumped to 11% then there was an alarming increase in the prices.
There were many reasons for it but one of the main driving forces was a reduction in government fuel subsidies, which lifted gasoline prices by an average of 10%.In July 2008, the key Indian Inflation Rate
i.e. the Wholesale Price Index touched the mark of 12.6%, the highest rate in the past 16 years of Indian history. This was almost three times the RBI‘s target of 4.1% and almost doubled as compared to 2007.
This continuous rise slipped back to 12.4% by mid-August in 2008.
Question : 3
National income refers to
a) money value of stocks and shares of a country during a year.
b) money value of goods and services produced in a country during a year.
c) money value of capital goods produced by a country during a year.
d) money value of consumer goods produced by a country during a year.
Answer »Answer: (c)
National Income is one of the basic concepts in macroeconomics. National Income means the total income of the nation. The aggregate economic performance of the whole economy is measured by the national income data.
National Income refers to the money value of all final goods and services produced by the normal residents of a country while working both within and outside the domestic territory of a country in an accounting year. National Income also includes net factor income from abroad.
Symbolically, Y = PG + PS,
where, Y = National Income;
P = Price;
G = Goods; and
S = Service.
Question : 4
As per newspapers report what percent of Government stake will be disinvested in Rashtriya Ispat Nigam Ltd. (RINL) ?
a) 50%
b) 5%
c) 10%
d) 12%
Answer »Answer: (c)
Rashtriya Ispat Nigam Ltd (RINL), on 23 September 2014, filed a draft prospectus with market regulator SEBI for an initial public offering (IPO) through which the government will sell 10 per cent of its stake in the company.
The government proposes to raise Rs 43,425 crore through disinvestment in PSUs.
Question : 5
Consider the following statements
- The current Economic Census is the seventh in the series so far conducted in India.
- The Economic Census in India is undertaken by the Department of Economic Affairs (Union Ministry of Finance).
a) Only 2
b) Both l and 2
c) Only 1
d) Neither 1 nor 2
Answer »Answer: (d)
In 1976, Government of India launched a plan scheme called “Economic Census and Surveys”. In 1977 Central Statistical Organisation conducted First economic census in collaboration with the Directorate of Economics & Statistics (DES) in the States/Union Territories. Current Economic Census is Sixth Economic Census held in 2013.
The Central Statistics Office (CSO) in the Ministry of Statistics and Programme Implementation (MOSPI) conducted the Sixth Economic Census during January, 2013 to April, 2014 in collaboration with Directorates of Economics and Statistics in all the States and Union Territories.
Question : 6
The type of note issue system followed in India is :
a) Minimum reserve system
b) Maximum fiduciary system
c) Proportional fiduciary system
d) Fixed fiduciary system
Answer »Answer: (a)
In terms of Section 22 of the Reserve Bank of India Act, the RBI has been given the statutory function of note issue on a monopoly basis. The note issue in India was originally based upon the “Proportional Reserve System”. When it became difficult to maintain the re-serve proportionately, it was replaced by the “Minimum Reserve System “.
According to the RBI Amendment Act of 1957, the bank should now maintain a minimum reserve of Rs.200 crore worth of gold coins, gold bullion and foreign securities of which the value of gold coin and bullion should be not less than Rs.115 crore.
GET Introduction to Indian Economy PRACTICE TEST EXERCISES
introduction to indian economy section 1
introduction to indian economy section 2
introduction to indian economy section 3
introduction to indian economy section 4
introduction to indian economy section 5
introduction to indian economy section 6
introduction to indian economy section 7
introduction to indian economy section 8
introduction to indian economy section 9
introduction to indian economy section 10
introduction to indian economy section 11
introduction to indian economy section 12
introduction to indian economy section 13
introduction to indian economy section 14
Introduction to Indian Economy Shortcuts and Techniques with Examples
Verbal Reasoning
Question & Answer Quiz
Non Verbal Reasoning
Question & Answer Quiz
Quantitative Aptitude
Question & Answer Quiz
Computer MCQ
Question & Answer Quiz
General English
Question & Answer Quiz
History GK
Question & Answer Quiz
Polity GK
Question & Answer Quiz
Geography GK
Question & Answer Quiz
Economy GK
Question & Answer Quiz
General Awareness GK
Question & Answer Quiz
Recently Added Subject & Categories For All Competitive Exams
New Cloze Test Questions and Answers PDF - IBPS Clerk 2024
The most important Cloze Test questions with detailed answers for upcoming IBPS Clerk prelims 2024. Latest English verbal ability practice MCQs, PDF
Continue Reading »
Mensuration Aptitude Practice Mcq Questions IBPS Clerk 2024
Most Important Practice Mensuration aptitude multiple choice questions, answers with detailed solutions, PDF beginner to advanced for IBPS Clerk Prelims 2024
Continue Reading »
Top Clock Aptitude Questions and Answers PDF IBPS Clerk 2024
Recent Important IBPS Clerk Prelims 2024 Aptitude Clock MCQ Questions and answers with easy and logical explanation, PDF. Topic wise Free online practice test
Continue Reading »
New Time and Distance Aptitude MCQ PDF for IBPS Clerk 2024
Latest Time and Distance multiple choice questions and answers with solution PDF for IBPS Clerk Prelims 2024. Practice Speed Aptitude based Objective Mcq
Continue Reading »