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) 1900
(b) 1947
(c) 1857
(d) 1875
The correct answers to the above question in:
Answer: (d)
The Mumbai Stock Exchange, also known as Bombay Stock Exchange (BSE), was established in 1875. It claims to be Asia’s first stock exchange and the world’s fastest stock exchange, with a median trade speed of 6 microseconds.
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Read more introduction Based Indian Economy Questions and Answers
Question : 1
Which one is correct about the duration of the Eleventh Five Year Plan?
a) 01.04.2005 to 31.03.2010
b) 01.01.2005 to 31.12.2010
c) 01.01.2006 to 31.12.2011
d) 01.04.2006 to 31.03.2011
e) None of These
Answer »Answer: (e)
The period of Eleventh Five Year Plan was 2007- 2012. It completed its term in March 2012 and the twelfth plan is currently underway
Question : 2
Which authority recommends the principles governing the grantsin-aid of the revenues of the states out of the Consolidated Fund of India?
a) Union Ministry of Finance
b) Public Accounts Committee
c) Finance Commission
d) Inter-State Council
Answer »Answer: (c)
The Finance Commission of India is established under Article 280 of the Indian Constitution by the President of India to define the financial relations between the centre and the state.
It is entrusted with the task of distribution of net proceeds of taxes between Centre and the States, to be divided as per their respective contributions to the taxes; determine factors governing Grants-in-Aid to the states and the magnitude of the same; and work with the State Finance Commissions and suggest measures to augment the Consolidated Fund of the States so as to provide additional resources to Panchayats and Municipalities in the state.
Question : 3
Inflation is caused by :
a) Increase in cash with the government
b) Increase in supply of goods
c) Decrease in money supply
d) Increase in money supply
Answer »Answer: (d)
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.
Economists generally agree that high rates of inflation and hyperinflation are caused by excessive growth of the money supply. Low or moderate inflation may be attributed to fluctuations in real demand for goods and services, or changes in available supplies such as during scarcities, as well as to growth in the money supply.
However, the consensus view is that a long sustained period of inflation is caused by the money supply growing faster than the rate of economic growth.
Question : 4
The value of all final goods and services produced by the normal residents of a country and their property, whether operating within the domestic territory of the country or outside in a year is termed as
a) Gross Domestic Product
b) Gross National Income
c) Net National Income
d) Net Domestic Product
Answer »Answer: (b)
The sum of a nation’s gross domestic product (GDP) plus net income received from overseas. Gross national income (GNI) is defined as the sum of value added by all producers who are residents in a nation, plus any product taxes (minus subsidies) not included in output, plus income received from abroad such as employee compensation and property income.
Question : 5
The Government resorts to devaluation of its currency in order to promote
a) international goodwill
b) national income
c) exports
d) savings
Answer »Answer: (c)
A country devalues its currency in order to promote exports. A key effect of devaluation is that it makes the domestic currency cheaper relative to other currencies. There are two implications of devaluation.
First, devaluation makes the country’s exports relatively less expensive for foreigners. Second, the devaluation makes foreign products relatively more expensive for domestic consumers, thus discouraging imports.
This may help to increase the country’s exports and decrease imports, and may therefore help to reduce the current account deficit. One typical example is Thailand in the 1998 Asian financial crisis.
The baht was pegged at 25 to the US dollar before the crisis. During the crisis, the slowdown in export growth caused Thailand to abandon the dollar peg and devalue its currency in order to promote exports.
Question : 6
The problem of overpopulation can be solved by
- An effective employment policy, which can absorb the growing number of workers and promote economic growth.
- An imaginative family planning programme to encourage families to adopt the small family norm.
a) 2 only
b) 1 and 2
c) 1 only
d) Neither 1 nor 2
Answer »Answer: (b)
Over population of India can be controlled by providing maximum employment and giving proper education how to control population.
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
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introduction to indian economy section 14
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