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

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: (c)

Green shoot is a term used colloquially and propagandistically to indicate signs of economic recovery during an economic downturn.

It was first used in this sense by Norman Lamont, the then Chancellor of the Exchequer of the United Kingdom, during the 1991 recession.

Answer: (b)

Indian economy is an example of a mixed economy, an economic system that contains a mixture of markets and economic planning, in which both the private sector and state direct the economy.

It is a mixture of public ownership and private ownership; and market economies with strong regulatory oversight and governmental provision of public goods.

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).