introduction to indian economy section 2 MCQ Questions & Answers Detailed Explanation
MOST IMPORTANT indian economy mcq - 14 EXERCISES
-
Top 500+ Basic Indian Economy GK MCQ Quiz For SSC IBPS »
-
New Indian Economy GK MCQ Quiz PDF For UPSC/IAS Prelims »
-
Basic Indian Economy Concepts MCQs Quiz For RRB NTPC Exam »
-
New 499+ Fundamentals of Indian Economy MCQ Quiz For IBPS »
-
555+ Indian Economy Concepts Basics Fundamentals MCQ Quiz »
-
Top 500+ Indian Economy GK MCQs Quiz PDF For SSC UPSC RRB »
-
New 499+ Indian Economy GK Question And Answers Quiz PDF »
-
Best 500+ Indian Economy General Knowledge MCQ Quiz PDF »
-
500+ Indian Economy General Studies Online MCQ Quiz PDF »
-
New 500+ Indian Economy Basic Static GK MCQ Quiz For IBPS »
-
500+ Introduction to Indian Economy GK MCQ Quiz For SSC »
-
800+ Latest Indian Economy GK Questions & Answers MCQ PDF »
-
1000+ Indian Economy GK Questions And Answers Quiz PDF »
-
1000+ Indian Economy Basic Concepts GK MCQ PDF For SBI PO »
The following question based on Introduction to Indian Economy topic of indian economy mcq
(a) Rs.60000
(b) Rs.80000
(c) Rs.20000
(d) Rs.10000
The correct answers to the above question in:
Answer: (b)
A salaried employee can claim a tax rebate under section 88. The amount of tax rebate is 20% of the gross qualifying amount (Rs.80000) or Rs.16000, whichever is lower.
If a person invests only in other securities, excluding shares, debentures and units of the infrastructure sector; then the maximum rebate is only Rs.12000 (20% of Rs.60000).
This rebate may be extended up to Rs.16000 on further investment up to Rs.20000 in shares and debentures. By investing in shares, debentures and infrastructure units a maximum rebate of Rs.16000 (i.e., 20% of Rs.80000) may be claimed.
Discuss Form
Read more introduction Based Indian Economy Questions and Answers
Question : 1
Corporation tax is a tax imposed on
a) tax imposed by the corporation on individual properties
b) the corporate properties
c) the utilities provided by the corporation
d) the net incomes of the companies
Answer »Answer: (d)
Corporate Tax is a levy placed on the profit of a firm, with different rates used for different levels of profits. Corporate taxes are taxes against profits earned by businesses during a given taxable period.
Most countries tax all corporations doing business in the country on income from that country.
Question : 2
What is NABARD’s primary role?
a) to assist state governments for share capital contribution
b) to provide term loans to state co-operative banks
c) to act as re-finance institution
d) All of the above
Answer »Answer: (d)
NABARD is the apex institution in the country that looks after the development of the cottage industry, small industry and village industry, and other rural industries.
Its other functions are:
- to coordinate the rural financing activities of all institutions engaged in developmental work at the field level and maintain liaison with Government of India, State Governments, Reserve Bank of India (RBI) and other national level institutions concerned with policy formulation;
- to re-finance the financial institutions which finance the rural sector;
- to regulate the cooperative banks and the RRB’s, etc.
NABARD’s refinance is available to;
- State Co-operative Agriculture and Rural Development Banks (SCARDBs),
- State Co-operative Banks (SCBs),
- Regional Rural Banks (RRBs),
- Commercial Banks (CBs) and
- other financial institutions approved by RBI.
Question : 3
The profits of Indian–banks operating in foreign countries are a part of
a) domestic factor income of India
b) income from entrepreneurship earned from abroad
c) profits of the enterprises working in domestic territory of India
d) operating surplus of the banks located in India
Answer »Answer: (b)
Net Factor Income from Abroad (NFIA) refers to income generated by nationals abroad in the form of wages, salaries, rent, interest, dividend and profit.
It has the following three components:
- Net compensation of employees;
- Net income from property i.e., rent, interest and income from entrepreneurship (that is, profits and dividends); and
- Net retained earnings of the resident companies working in foreign countries.
Profits earned by Indian banks functioning abroad come under ‘income from entrepreneurship.’
Question : 4
Consider the following reasons for the continuous decline in average land-holding size in India :
- Law of inheritance
- Consolidation
- Farm mechanisation
- The desire of land ownership
a) A, C and D
b) A, B, C and D
c) A and D
d) A and B
Answer »Answer: (c)
Indian agriculture is a structurally small farm and small farmer based. The overall average size of operational holding in India declined from 2.63 hectares in 1960-61 to 1.33 hectares in 2002-03. Over 80% of the landholdings in India are classified as small and marginal landholdings with a farm size of less than 2 ha.
This implies that over 80% of the farmers in India hold just 39% of the total cultivated land. The Law of inheritance leads to fragmentation of land among the inheritors of the land.
Again, the desire for land ownership could also be attributed to the fragmentation of land. Owning of land is more social status in India, than an economic exigency.
Question : 5
Which of the following is not a necessary condition for the development of India ?
a) Resource discovery
b) Capital Accumulation
c) Population growth
d) Technological develop-ment
Answer »Answer: (c)
The rising population can be a virtue or can be vice with regards to the economic development of a country.
In India, the demerits of population growth outweigh its merits. Due to the large population size and its rate of growth, our per capita income continues to be stagnant at a low level. Since First Five Year Plan, our national income has increased about 11 times but our per capita income has increased only about three and half times, thanks to the rise in population.
Also, large population size has tended to reduce the landman ratio in India which reduces the productivity of land and labour. The growing population has also reduced the per capita availability of cereals and pulses.
Further, due to the high growth rate of the population, unemployment is assuming monstrous proportions. Lack of employment opportunities outside agriculture builds pressure on farming as a source of subsistence. Consequently, disguised unemployment in the farming sector is emerging as a serious challenge.
Question : 6
Consider the following statements relating to the estimation of National Income.
- Foreigners working in India Embassies are normal residents of India.
- Foreigners working in the office of WHO, World Bank, UNO etc, located in India are not normal residents of India.
- Indians working in foreign embassies in India are not normal residents of India.
a) Only 3
b) 1 and 3
c) Only 1
d) All of these
Answer »Answer: (b)
Only statement 2 is correct.
Statements 1 & 3 are wrong.
GET Introduction to Indian Economy PRACTICE TEST EXERCISES
introduction to indian economy section 1
introduction to indian economy section 2
introduction to indian economy section 3
introduction to indian economy section 4
introduction to indian economy section 5
introduction to indian economy section 6
introduction to indian economy section 7
introduction to indian economy section 8
introduction to indian economy section 9
introduction to indian economy section 10
introduction to indian economy section 11
introduction to indian economy section 12
introduction to indian economy section 13
introduction to indian economy section 14
Introduction to Indian Economy Shortcuts and Techniques with Examples
Verbal Reasoning
Question & Answer Quiz
Non Verbal Reasoning
Question & Answer Quiz
Quantitative Aptitude
Question & Answer Quiz
Computer MCQ
Question & Answer Quiz
General English
Question & Answer Quiz
History GK
Question & Answer Quiz
Polity GK
Question & Answer Quiz
Geography GK
Question & Answer Quiz
Economy GK
Question & Answer Quiz
General Awareness GK
Question & Answer Quiz
Recently Added Subject & Categories For All Competitive Exams
100+ Quadratic Equation Questions Answers PDF for Bank
Quadratic Equation multiple choice questions with detailed answers for IBPS RRB SO. more than 250 Attitude practice test exercises for all competitive exams
Continue Reading »
IBPS Aptitude Linear Equations MCQ Questions Answers PDF
Linear equations multiple choice questions with detailed answers for IBPS RRB SO. more than 250 Attitude practice test exercises for all competitive exams
Continue Reading »
New 100+ Compound Interest MCQ with Answers PDF for IBPS
Compound Interest verbal ability questions and answers solutions with PDF for IBPS RRB PO. Aptitude Objective MCQ Practice Exercises all competitive exams
Continue Reading »
100+ Mixture and Alligation MCQ Questions PDF for IBPS
Most importantly Mixture and Alligation multiple choice questions and answers with PDF for IBPS RRB PO. Aptitude MCQ Practice Exercises all Bank Exams
Continue Reading »