introduction to indian economy section 13 MCQ Questions & Answers Detailed Explanation

Answer: (d)

The Fourth Five-Year Plan (1969–1974) set before itself the two principal objectives – growth with stability and progress towards self–reliance.

It laid great emphasis on agriculture’s growth rate so that a chain reaction can start. The Fifth Five-Year Plan (1974–1979) also focused on self-reliance in agricultural production and defence.

Answer: (b)

MUDRA (Micro Units Development and Refinance Agency) is a public sector financial institution that provides loans at low rates to micro-finance institutions and non-banking financial institutions which then provide credit to MSMEs.

It was launched by Prime Minister Narendra Modi on 8 April 2015.

Answer: (d)

Jeevan Aastha policy of Life Insurance Corporation of India is a single premium assurance plan which offers guaranteed benefits on death and maturity.

The plan has a maximum shelf life of 45 days and offers five and ten-year maturities to customeRs.The scheme has fixed the minimum age at entry as 13 years which would enable parents to make provisions for the higher education of their children.

Similarly, the maximum age at entry has been fixed as 60 years. The plan offers guaranteed addition of Rs100 for every thousand of maturity sum assured for 10 years term and Rs90 per annum for policies with a five-year term.

The policyholder can also avail of the benefits of tax exemption and has the option of surrendering the policy or raising a loan under the policy.

Answer: (b)

Open market operations (OMO) refers to 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.

A central bank (Reserve Bank of India) uses OMO as the primary means of implementing monetary policy.

Answer: (d)

V.K. R.V. Rao has done pioneering works on national income in India. One of his works on national income was 'Changes in India's National Income-A Static Economy in Progress' (1954). The other was ‘The National Income of British India’ (1941).

Answer: (d)

Absolute poverty is defined as a situation in which the individual’s basic needs are not covered, in other words, there is a lack of basic goods and services (normally related to food, housing and clothes).

This concept of poverty is strongly linked to destitution which is an inability to meet the minimum consumption expenditure. It is a level of poverty as defined in terms of the minimal requirements necessary to afford minimal standards of food, clothing, health care and shelter.

According to a UN declaration that resulted from the World Summit on Social Development in Copenhagen in 1995, absolute poverty is “a condition characterised by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information. It depends not only on income but also on access to services.”