introduction to indian economy section 7 MCQ Questions & Answers Detailed Explanation

Answer: (a)

The logo of the Reserve Bank of India comprises a tiger walking underneath a palm tree. When RBI was created, it was decided that the reverse of Double Mohur, the Lion and Palm design should be used as the emblem of RBI. The last minute modification was made introducing Tiger instead of Lion

Answer: (b)

A fiscal deficit refers to a situation when a government’s total expenditures exceed the revenue that it generates (excluding money from borrowings). Deficit differs from debt, which is an accumulation of yearly deficits. A fiscal deficit is regarded by some as a positive economic event.

For example, economist John Maynard Keynes believed that deficits help countries climb out of economic recession. On the other hand, fiscal conservatives feel that governments should avoid deficits in favour of a balanced budget policy.

Answer: (a)

The responsibility for coinage lies with central government on the basis of the Coinage Act, 1906. The designing and minting of coins in various denominations is decided by Central government.

Answer: (c)

The Government launched Kutir Jyoti Programme on the occasion of Nehru Centenary Year (1988-89) for extending single point light connection to the households of rural poor families below the poverty line.

These were to include Harijan and tribal families. The programme had come under criticism for rampant increase in transmission & distribution (T&D) losses.

Answer: (b)

Answer: (a)

GDP per capita is often used as an indicator of living standards. Notably on the rationale that all citizens would benefit from their country’s increased economic production as it leads to an increase in consumption opportunities which in turn increases the standard of living.