introduction to indian economy section 10 MCQ Questions & Answers Detailed Explanation

Answer: (a)

Assuming national income being measured as the Gross Domestic Product (GDP), the lion’s share in the national income of India is of the SERVICE sector (tertiary sector) which stands at 57% in 2013.

India’s dynamic services sector has grown rapidly in the last decade with almost 72.4 per cent of the growth in India’s GDP in 2014-15 coming from this sector. (Source: Economic Survey 2015-16).

Answer: (c)

A large quantity of imports of India comes from OPEC countries like Saudi Arabia, Iran, Brazil, etc.

Normally, this group accounts for more than 25 per cent of India's imports. As per the Economic Survey 2011-2012, the United Arab Emirates and Saudi Arabia were the major exporters to India.

India's foreign trade with developing countries has been on the rise. The share of these countries in India's import trade has increased to over 31 per cent.

Answer: (b)

The State Bank of India traces its ancestry to British India when the Bank of Calcutta was established on 2 June 1806. The Bank of Bengal was one of three Presidency banks, the other two being the Bank of Bombay (1840) and the Bank of Madras (1843).

The Presidency banks amalgamated on 27 January 1921 as the Imperial Bank of India. On 1 July 1955, the Imperial Bank of India became the State Bank of India.

Answer: (b)

Despite the developing countries’ impressive aggregate growth of the past 25 years, its benefits have only reached the poor to a very limited degree.

Not only have the poorest countries grown relatively slowly, but growth processes are such that within most developing countries, the incomes of the poor increase much less than the average.

Much of the poverty is due to severe inequality which in turn is due to lop-sided development. Income inequality is the major determinant of poverty both in developed and non-developed countries.

Rising unemployment is a major source of spreading poverty. Lack of access to crucial assets and services (health care, schooling, and infrastructure) exclude the poor from the very beginning.

Answer: (c)

Open Market Operations (OMO) is the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system. Purchases inject money into the banking system and stimulate growth while sales of securities do the opposite.

OMOs are the market operations conducted by the Reserve Bank of India by way of sale/ purchase of Government securities to/ from the market with an objective to adjust the rupee liquidity conditions in the market on a durable basis.

Answer: (d)

All these statements are components of internal debt.