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

Answer: (c)

The Reserve Bank of India (RBI) is India’s central banking institution, which controls the monetary policy of the Indian rupee. It was established on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve Bank of India Act, 1934.

Following India’s independence in 1947, the RBI was nationalised in the year 1949. Though originally set up as a shareholders’ bank, the RBI has been fully owned by the Government of India since its nationalization in 1949.

Answer: (c)

A mixed economy is a combination of the market economy as well as government planning. It has both private sector and public sector.

Some businesses are owned by private individuals while some businesses are owned by the government. India is an example of a mixed economy.

Answer: (c)

Food Corporation of India

Answer: (d)

Hedge funds invest in a diverse range of markets and use a wide variety of investment styles and financial instruments. Hedge funds are open only to certain types of investors in a country specified by the regulator and cannot be offered or sold to the general public.

Legally, hedge funds are most often set up as private investment partnerships that are open to a limited number of investors and require a very large initial minimum investment.

Answer: (c)

Seasonal employment refers to a situation where a number of persons are not able to find jobs during some months of the year. Example: Agriculture is a seasonal activity.

There is an increased demand for labour at the time of sowing, harvesting, weeding and threshing.

In between, there is little or no demand for labour. Besides, disguised unemployment is also seen in agriculture in India.

Answer: (c)

Devaluation happens in countries with a fixed exchange rate. In a fixed-rate economy, the government decides what its currency should be worth compared with that of other countries. The exchange rate can change only when the government decides to change it.

If a government decides to make its currency less valuable, the change is called devaluation. Depreciation happens in countries with a floating exchange rate. A floating exchange rate means that the global investment market determines the value of a country’s currency.