introduction to indian economy section 12 MCQ Questions & Answers Detailed Explanation

Answer: (a)

Founded as a public sector company owned by the Government of India in 1963, Kochi Refineries was acquired by the Bharat Petroleum Corporation Limited in 2006 which presently owns and runs it.

Consequent to the merger Order dated 18 August 2006 issued by the Ministry of Company Affairs, the refinery has been amalgamated with Bharat Petroleum Corporation, henceforth to be known as BPCL-Kochi Refinery.

Answer: (c)

RBINet is a communication software, developed in ‘C’ and available for both DOS and UNIX machines. It allows free format messaging and file transfer on the existing BANK NET infrastructure with the help of UNIX servers installed at the 4 NCCs.

Each RBINet user interacts with the local UNIX server through PADs connected to the X.25 switch.  The UNIX servers in turn communicate with each other using TCP/IP over the X.25 protocol.

The software allows free format messaging without any restrictions on the length of the message, enables file transfer of both ASCII-text and Binary (spreadsheets, databases, programs etc.) files, facilitates dial-up access, and has security features such as end-to-end encryption, audit trail, etc.

Answer: (d)

As per Article 268-A of the Constitution of India, Service tax is levied by Union and collected and appropriated by the Union and States. Service tax is a part of Central Excise in India. It is a tax levied on services provided in India, except the State of Jammu and Kashmir.

As per article 269, the taxes levied and collected by the Union but assigned to the States are:

1. duties in respect of succession to property other than agricultural land;
2. estate duty in respect of property other than agricultural land;
3. terminal taxes on goods or passengers carried by railway, sea or air;
4. taxes on railway fares and freights;
5. taxes on the sale or purchase of newspapers and
6. on advertisements published therein;
7. taxes on the consignment of goods (whether the consignment is to the person making it or to any other person), where such consignment takes place in the course of inter-State trade or commerce, etc.

Answer: (c)

National Bank for Agriculture and Rural Development (NABARD) deals with matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas in India. It was established on 12 July 1982 by a special Act of parliament for the upliftment of rural India.

Answer: (a)

In order to curb inflation if CRR is increased, then it may take liquidity from markets as banks will have to deposit more money with RBI.

Moreover, inflation may also be curbed by Permitting Central/ State agencies to import duty-free pulses and sugar.

However, Decreasing SLR will leave more money to banks to give loans, which in turn will lead to inflation.

Answer: (b)

The Constitution of India allocates the taxation of agricultural income to states. Land revenue is a major source of revenue for states in India