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

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FERA was repealed in 1999 by the government of Atal Bihari Vajpayee and replaced by the Foreign Exchange Management Act, which liberalised foreign exchange controls and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: (c)

The State Bank of India, in September 2007, became the first public sector bank to touch a market capitalisation of Rs 1,00,000 crore following a surge of over three per cent in its share price.

The bank’s shares closed at Rs 1950.70 per share on the BSE, giving it a market cap of about Rs 1,02,665.12 crore. Earlier in the day, the shares rose to a lifetime high of Rs 1,969.80 crore before ending with a gain of 3.43 per cent over the previous close.

SBI is the only second bank in India to have attained a market capitalisation of more than Rs 1,00,000 crore.

Besides, SBI, ICICI Bank has also achieved this milestone and its market cap.

Answer: (d)

Human Development Report the HDI combines three dimensions:

1. A long and healthy life: Life expectancy at birth,
2. Education Index: Mean years of schooling and
3. Expected years of schooling and A decent standard of living: GNI per capita (PPP US$).

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)

The Goods and Services Tax (GST) is a Value Added Tax (VAT) replacing all indirect taxes levied on goods and services by the Indian Central and State governments.

India is a federal republic, and the GST is thus implemented concurrently by the central and state governments as the Central GST and the State GST respectively.

Exports will be zero-rated and imports will be levied the same taxes as domestic goods and services adhering to the destination principle.

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.