introduction to indian economy section 9 MCQ Questions & Answers Detailed Explanation

Answer: (d)

Deflation may be caused by a combination of the supply and demand for goods and the supply and demand for money, specifically the supply of money going down and the supply of goods going up.

Answer: (b)

Money laundering occurs in three steps: the first step involves introducing cash into the financial system by some means called as placement; the second involves carrying out complex financial transactions to camouflage the illegal source called layering; and the final step entails acquiring wealth generated from the transactions of the illicit funds called as integration.

Answer: (d)

Depreciation is equal to GNP–NNP (Gross national products–Net national products) Depreciation is also known as consumption of fixed capital. It is the wear and tear to the physical assets. It measures the amount of GNP that must be spent on new capital goods to maintain the existing physical capital stock.

Answer: (b)

Answer: (a)

The Swarna Jayanti Swarozgar Yojana (SGSY) has been renamed as National Rural Livelihood Mission (NRLM).

NRLM is a poverty alleviation project implemented by the Ministry of Rural Development, Government of India. This scheme is focused on promoting self-employment and the organization of rural poor.

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”.

The Government of India issues rupee coins in the denomination of Rs.1, 2, and 5 to the public. These coins are required to be circulated to the public only through the Reserve Bank under Section 38 of the RBI Act.