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

Answer: (b)

Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society.

For financial inclusion 'Know your customer' norms should be relaxed and no-frills account should be opened for low-income segments which are looking for basic banking only.

Along with general-purpose credit cards should be issued and bank branches should be opened in unbanked rural areas.

Answer: (d)

The principal source of States own tax revenues is sales tax which accounts for about 60 per cent of the total. The other major components of States own tax revenues according to their revenue share are State excise, registration and stamp duty, motor vehicle and passenger tax, electricity duty, land revenues, profession tax, entertainment taxes and other sundry taxes.

Answer: (b)

Videsh Sanchaar Nigam Limited (VSNL) was the first Indian PSU to be listed in the New York Stock Exchange in 2000. The company operates a network of earth stations, switches, submarine cable systems, and value added service nodes to provide a range of basic and value added services.

Answer: (a)

India Brand Equity Foundation is a Trust established by the Ministry of Commerce with the Confederation of Indian Industry (CII) as its associate.

IBEF’s primary objective is to promote and create international awareness of the Made in India label in markets overseas and to facilitate the dissemination of knowledge of Indian products and services.

Towards this objective IBEF works closely with stakeholders across government and industry. IBEF works with a network of stakeholders – domestic and international – to promote Brand India.

Answer: (a)

A merchant bank is a financial institution which provides capital to companies in the form of share ownership instead of loans. It is a bank that deals mostly in (but is not limited to) international finance, long-term loans for companies and underwriting. Merchant banks do not provide regular banking services to the general public.

Answer: (a)

The first stage of stable or slow population growth:

The growth of the population was slow due to the high death rate which nullified the high birth rate. In this stage, these economies were primitive and primarily agrarian, with widespread illiteracy, poor sanitation and health care conditions, negligible knowledge of family planning and large family sizes which contributed to factors such as high fertility rate and high death rate.

In the period between the first and the second stages, the death rates start reducing and birth rates remain stable which brings an imbalance in the economy. Measures like diseases control, improving nutrition levels, and sanitation improvement are implemented to reduce death rates, but the measures for controlling birth rates are not implemented, which results in a population explosion. This required a period of transition for adjustment, thus bringing the second stage of transition.

The second stage of population explosions:

In this stage rise in income levels contributed to improvement in health care, education, disease control and so on which in turn contributed to reducing the death rates. This accelerated the growth of the population. The family size reduced and improved trade and economic conditions resulted in more food and better food habits which further helped the population to grow at a much higher rate than in the first stage. The demographic changes brought imbalances in the economy, creating conditions for further transition of society.

The third stage of low birth rates and low death rates:

Modernization and industrialization changed the living pattern in such nations, the rural population shifted to cities and family sizes were reduced to become nuclear families. The standard of living increased which further brought down mortality rates and birth rates. As a result, the growth of the population declined.