introduction to indian economy section 8 MCQ Questions & Answers Detailed Explanation

Answer: (c)

Kisan Credit Card Scheme (KCC) aims at providing adequate and timely support from the banking system to the farmers for their short-term credit needs for the cultivation of crops. This mainly helps farmers purchase inputs etc., during the cropping season.

The credit card scheme proposed to introduce flexibility to the system and improve cost efficiency. It was introduced in August 1998.

Answer: (b)

Indian Railway is an Indian state-owned enterprise, owned and operated by the government of India through the Ministry of Railways. Railways were first introduced to India in 1853 from Bombay to Thane.

In 1951 the systems were nationalized as one unit, the Indian Railways, becoming one of the largest networks in the world.

IR operates both long-distance and suburban rail systems on a multi-gauge network of broad, metre and narrow gauges.

Answer: (a)

Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy.

Answer: (b)

The Commission for Agricultural Costs and Prices (CACP), the government’s nodal agency to recommend the minimum price for farm commodities.

The Agricultural Prices Commission was set up in January 1965 to advise the Government on the price policy of major agricultural commodities with a view to evolving a balance and integrated price structure in the perspective of the overall needs of the economy and with due regard to the interests of the producer and the consumer.

Since March 1985, the Commission has been known as Commission for Agricultural Costs and Prices

Answer: (c)

The new logo of the Bank of Baroda is a unique representation of a universal symbol. It comprises dual ‘B’ letterforms that hold the rays of the rising sun.

It is known as the ‘Baroda Sun’ which is the single most powerful source of light and energy – its far-reaching rays dispel darkness to illuminate everything they touch.

With this logo, the Bank of Baroda seeks to be the source that will help all its stakeholders realise their goals. To customers, the bank seeks to be a one-stop, reliable partner who will help them address different financial needs.

To employees, the bank offers rewarding careers and to our investors and business partners, maximum return on their investment.

Answer: (d)

Inflation reflects a situation where the demand for goods and services exceeds their supply in the economy. Higher interest rates in low inflation means higher real returns not just on money, but on all other assets too. These higher real returns increases the allocation of investment.