introduction to indian economy section 11 MCQ Questions & Answers Detailed Explanation

Answer: (a)

The Reserve Bank’s accounting year is July to June. After its establishment on 1 April 1935, the RBI changed its accounting year from January-December to July-June on 11 March 1940.

Normally, RBI remains closed for public transactions every July 1 on account of its annual closing of accounts.

Answer: (c)

At present, notes in India are issued in the denomination of Rs.5, Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1000. These notes are called banknotes as they are issued by the Reserve Bank of India (Reserve Bank).

The printing of notes in the denominations of Rs.1 and Rs.2 has been discontinued as these denominations have been coined. However, such notes issued earlier are still in circulation.

The printing of notes in the denomination of Rs.5 had also been discontinued.

Answer: (c)

Answer: (c)

Aditya Birla Retail Limited (ABRL), the retail arm of Aditya Birla Group company, operates two store formats - Supermarket and Hypermarket under the brand ‘more’. ABRL is the 4th largest supermarket chain in India after Future Group, Reliance Retail and D-Mart.

Answer: (b)

Generally, the small-scale sector is defined in terms of investment ceilings on the original value of the installed plant and machinery.

As per the Ministry of Micro, Small & Medium Enterprises of India, a small scale industry is an industrial undertaking in which the investment in fixed assets in plant and machinery whether held on ownership terms on lease or on hire purchase does not exceed Rs 10 million.

Fixed capital investment in a unit has been adopted as criteria to make a distinction between small-scale and largescale industries. This limit is being continuously raised upwards by the government.

Answer: (d)

During inflation interest rates should increase so that the investor invests more in lieu of higher interest-earning thus money supply reduces which can reduce inflation.

Similarly higher interest rates mean credit becomes costly so that again supply of money reduces which helps in curbing inflation.