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

Answer: (b)

Real Gross Domestic Product (real GDP) is a macroeconomic measure of the value of economic output adjusted for price changes (i.e., inflation or deflation).

Nominal gross domestic product is defined as the market value of all final goods produced in a geographical region.

Answer: (b)

Regional Rural Banks (RRBs) were set up as government-sponsored, regional based rural lending institutions under the Regional Rural Banks Act, 1976.

Every RRB is owned by three entities with their respective shares as follows:

1. Central Government (50%);
2. State government (15%);
3. .Sponsor bank (35%).

Each Regional Rural Bank is sponsored by a Public-Sector Bank.

Answer: (c)

Dr. Manmohan Singh, the then Union Finance Minister, in his Budget speech for the year 1994-95 introduced the new concept of Service Tax. It was given constitutional status by Chapter VA of the Finance Act, 2003.

Answer: (d)

The First Five-Year Plan (1951–1956), based on the Harrod-Domar model, addressed, mainly, the agrarian sector, including investments in dams and irrigation.

The total planned budget of Rs.2069 crore was allocated to seven broad areas:

1. irrigation and energy (27.2 percent),
2. agriculture and community development (17.4 percent),
3. transport and communications (24 percent),
4. industry (8.4 percent),
5. social services (16.64 percent),
6. land rehabilitation (4.1 percent), and
7. for other sectors and services (2.5 percent).

Answer: (b)

Answer: (c)

The Rashtriya Krishi Bima Yojna was introduced in 1999.

The scheme provides comprehensive risks insurance against yield losses viz. Drought, Hailstorm, Floods, Pests Disease etc. It is implemented by the Agriculture Insurance Corporation of India (AIC).