introduction to indian economy section 2 MCQ Questions & Answers Detailed Explanation

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.

Answer: (c)

In economics, the money supply or money stock is the total amount of monetary assets available in an economy at a specific time.

It is governed and regulated by the central bank of a country. The Reserve Bank of India regulates the money supply in India through its several policy rates and reserve ratios.

Answer: (d)

National Income is the money value of all the final goods and services produced by a country during a period of one year.

National Income consists of a collection of different types of goods and services of different types.

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

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.

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.