introduction to indian economy section 14 MCQ Questions & Answers Detailed Explanation

Answer: (c)

As per the data of 2009-2010, China, India and the United States were the first three major produceRs.India is the second largest cotton producer and consumer. The textile industry accounted for 14.4% of the country’s export earnings.

Answer: (c)

Micro-credit extended by banks to individuals is reckoned as a part of their priority sector lending and no particular model has been prescribed for microfinance and banks have been extended freedom to formulate their own models.

Answer: (a)

The Foreign Exchange Regulation Act (FERA) was legislation passed by the Indian Parliament in 1973 with the aim of regulating payments and foreign exchange.

FERA was repealed in 1999 by the government of Atal Bihari Vajpayee and replaced by the Foreign Exchange Management Act, which liberalised foreign exchange controls and restrictions on foreign investment.

FEMA, which replaced Foreign Exchange Regulation Act (FERA), had become the need of the hour since FERA had become incompatible with the pro-liberalisation policies of the Government of India.

FEMA has brought a new management regime of Foreign Exchange consistent with the emerging framework of the World Trade Organisation (WTO).

Answer: (a)

Varada Grameena Bank is a Regional Rural Bank (RRB) named after the Wardha River which is one of the biggest rivers in the Vidarbha region in India.

It is one of those banks which were amalgamated and newly opened. It has been serving Kumta in Karnataka, providing excellent banks service to those in need.

Answer: (b)

The most appropriate measure of a country’s economic growth is its per capita real income. Per capita income is average income, a measure of the wealth of the population of a nation. It is used to measure a country’s standard of living thus a better indicator of economic growth.

Answer: (c)

The Hindu rate of growth refers to the low annual growth rate of the socialist economy of India before 1991, which stagnated around 3.5% from the 1950s to the 1980s, while per capita income growth averaged 1.3%. The term was coined by Indian economist Raj Krishnaa.

It suggests that the low growth rate of India, a country with a high Hindu population was in sharp contrast to high growth rates in other Asian countries, especially the East Asian Tigers, which were also newly independent.

This meaning of the term, popularized by Robert McNamara, was used disparagingly and has connotations that refer to the supposed Hindu outlook of fatalism and contentedness.