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

Answer: (a)

Under Section 22 of the Reserve Bank of India Act, the Bank has the sole right to issue banknotes of all denominations. The distribution of one rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as an agent of the Government.

The one rupee note is issued by the Ministry of Finance and bears the signature of the secretary. The responsibility for coinage vests with the Government of India on the basis of the Coinage Act, 1906 as amended from time to time.

The designing and minting of coins in various denominations are also attended to by the Government of India.

Answer: (c)

According to the Reserve Bank of India, cooperative marketing is a cooperative association of cultivators formed primarily for the purpose of helping the members to market their products more profitably than is possible through private trade. Under the system of co-operative marketing whole responsibility of marketing is taken up by the farmers themselves, organized on a co-operative basis.

The area of operation of marketing society is usually fixed with reference to local conditions - area based or commodity-based. The commodity-based societies related to grapes, oranges, bananas, pomegranates, etc. have wider jurisdiction covering the major areas growing each crop.

There are societies at the producer’s level and they federate at the state or national level to deal with bigger markets including foreign markets for the export of their produce.

Answer: (d)

Indian Economy grew by 8.6% and 9.3% in 2009-10 and 2010-11 before it plunged again into slow growth.

CPI has a high weightage for food. In India, during the mentioned period food grain production actually had gone up.

GAAR is kept in abeyance as of now.

Answer: (a)

A universal bank participates in many kinds of banking activities and is both a commercial bank and an investment bank. Universal banks may offer credit, loans, deposits, asset management, investment advisory, payment processing, securities transactions, underwriting and financial analysis.

Fiscal 2002 marked a turning point in the history of the ICICI group, as it witnessed the culmination of the ICICI group’s strategy of becoming an integrated financial services provider – the merger of ICICI Limited (ICICI) with ICICI Bank. The merger was a path-breaking initiative, which created India’s first “universal bank” and the second-largest bank in the country.

As part of the reorganization, two of ICICI’s wholly-owned retail finance subsidiaries viz. ICICI Personal Financial Services Limited (ICICI PFS) and ICICI Capital Services Limited (ICICI Capital), were also merged with ICICI Bank, in order to integrate and consolidate the retail business.

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)

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.