introduction to indian economy section 2 MCQ Questions & Answers Detailed Explanation
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The following question based on Introduction to Indian Economy topic of indian economy mcq
(a) Prof. Shenoi
(b) Jagdish Bhagwati
(c) V. K. R. V Rao
(d) P. N Dhar
The correct answers to the above question in:
Answer: (c)
The first person to adopt a scientific procedure in estimating the national income was Dr. VKRV Rao in 1931.
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Read more introduction Based Indian Economy Questions and Answers
Question : 1
The effect of a government surplus upon the equilibrium level of NNP [Net National Product] is substantially the same as
a) an increase in saving
b) an increase in consumption
c) an increase in investment
d) a decrease in saving
Answer »Answer: (b)
The effect of a government surplus upon the equilibrium level of NNP (Net National Product) is substantially the same as an increase in consumption.
Question : 2
Consider the following statements:
- Infant mortality rate takes into account the death of infants within a month after birth.
- Infant mortality rate is the number of infant deaths in a particular year per 100 live births during that year.
a) 2 only
b) Both 1 and 2
c) 1 only
d) Neither 1 nor 2
Answer »Answer: (d)
Infant mortality rate indicates the number of infant death under one years of age per 1000 live birth under one year of age.
Question : 3
The banks are required to maintain a certain ratio between their cash in the hand and total assets. This is called :
- Statutory Bank Ratio (SBR)
- Statutory Liquid Ratio (SLR)
- Central Bank Reserve (CBR)
- Central Liquid Reserve (CLR)
a) All of the above
b) 1 and 4 only
c) 2 and 3 only
d) 2 only
Answer »Answer: (d)
Banks are required to invest a portion of their statutory liquidity ratio besides CRR.
Statutory liquidity ratio (SLR) is the Indian government term for reserve requirement that the commercial banks in India require to maintain in the form of gold, cash or government-approved securities before providing credit to the customers.
SLR is determined and maintained by the Reserve Bank of India in order to control the expansion of bank credit.
Question : 4
The symbol of Reserve Bank of India is
a) Kuber with a purse of money
b) Capitol of Asokan Pillar
c) Tiger before a Palm tree
d) A dog sitting in a defensive state
Answer »Answer: (c)
The logo of the Reserve Bank of India comprises a tiger walking underneath a palm tree.
It is contended that the Reserve Bank of India copied the tiger and palm tree symbol from the gold Mohur issued by the East India Company in the 19th century.
The double Mohur of William IV had a nice reverse, which was a symbol of a Lion and a Palm tree. When RBI was created, it was decided that the reverse of Double Mohur, the Lion and Palm design should be used as the emblem of RBI.
The last-minute modification was made introducing Tiger instead of Lion.
Question : 5
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 : 6
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.
GET Introduction to Indian Economy PRACTICE TEST EXERCISES
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introduction to indian economy section 14
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