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

Answer: (a)

There are 5 Maharatna companies: Coal India Limited, Indian Oil Corporation Limited, NTPC Limited, Oil and Natural Gas Corporation Limited and Steel Authority of India limited. Bharat Heavy Electricals Limited (BHEL) is a navaratna company.

Answer: (a)

Inflation redistributes wealth from creditors to debtors i.e., lenders suffer and borrowers benefit out of inflation.

Bondholders = this person has lent money (to debtors) and received a bond in return.

So he is a lender, he suffers, by the way, they haven’t specifically used the word – “inflation-indexed bonds”, hence we cannot say inflation benefits the bond-holders.

Answer: (c)

Prime Minister Narendra Modi launched the Pradhan Mantri Fasal Bima Yojana (PMFBY) on 13 January 2016. The Prime Minister unveiled the detailed guidelines for implementing the Fasal Bima Yojana at a farmers’ convention in Madhya Pradesh on 18 February 2016.

PMFBY aims to provide more efficient insurance support to the farmers of the country in the event of crops being destroyed by heavy rain, other natural calamities, pests or diseases.

Answer: (c)

Fiscal policy is the use of government revenue collection (mainly taxes) and expenditure (spending) to influence the economy. In India, the fiscal policy is formulated by the Union Ministry of Finance.

Fiscal policy is distinguished from monetary policy that deals with the money supply, lending rates and interest rates and is formulated by the Reserve Bank of India.

Answer: (a)

Central Value Added Tax (CENVAT), popularly known as Central Excise Duty, is a duty on the manufacture/ production of goods in India. It is an adaptation of VAT, which came into force in the country in 1986 in the form of MODVAT (Modified Value Added Tax).

MODVAT was re-named as CENVAT on 1 April 2000.

Answer: (a)

The concept of a mixed economy evolved from the ideas of Keynes. The concept of a mixed economy means that both private enterprises and public enterprises coexist.

However, the condition attached is that the private enterprises must work for serving society rather than having only self-interest.

Further, private enterprises may not be allowed in every sector of the economy like area of national importance.