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

Answer: (c)

Credit control is the most important function of the Reserve Bank of India.  By using credit control methods RBI tries to maintain monetary stability.

There are two types of methods:

1. Quantitative control to regulate the volume of total credit; and
2. Qualitative Control to regulate the flow of credit.

Answer: (c)

In the parlance of economy, Gild-edged market is called market of safe securities. “Gildedged” denotes high-grade securities, consequently carrying low yields.

Answer: (a)

Interest payments are the single largest item of expenditure. They account for more than 40% of the total non-development expenditure.

These items of expenditure are charged on the Consolidated Fund of India and are not required to be voted by the Lok Sabha.

Answer: (a)

Gross Domestic Product (GDP) is a measure of the total value of the goods and services produced in a country during one year, excluding income from investment abroad by residents of the country. It is the Gross National Product less net income from property or investment abroad.

Answer: (a)

Geographical Indication (GI) means the name of a region or a locality, a specific place or, in exceptional cases, a country, used to describe a product originating in that region, locality, specific place or country, which possesses a specific quality, reputation or other characteristics attributable to that geographical origin, and the production and/or processing and/or preparation of which take place in the defined geographical area.

Answer: (b)

The Eleventh Finance Commission of India was appointed by the President on July 3, 1998 for the period 2000-05. It was chaired by Prof. A.M. Khusro and its members were Shri N.C Jain, Shri J.C Jetly, Dr. Amaresh Bagchi, and T.N. Srivastava.

Note : The Finance Commission came into existence in 1951. It was established under Article 280 of the Indian Constitution by the President of India. The chairman of 14th and current finance commission is former RBI governor Y.V.Reddy.