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

Answer: (d)

IDBI Bank Limited is an Indian financial service company headquartered in Mumbai, India. RBI categorised IDBI as an “other public sector bank”. It was established in 1964 by an Act of Parliament to provide credit and other facilities for the development of the fledgling Indian industry.

The Industrial Development Bank of India (IDBI) was established on 1 July 1964 under an Act of Parliament as a wholly-owned subsidiary of the Reserve Bank of India.

On 16 February 1976, the ownership of IDBI was transferred to the Government of India and it was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and developing industry in the country.

Answer: (a)

GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer.

Products like kerosene, naphtha and LPG will be under the ambit of GST, while five items in the basket — crude oil, natural gas, aviation fuel, diesel and petrol — have been excluded during the initial years.

Answer: (d)

Fourth Five-Year Plan was from 1969 to 1974. At this time Indira Gandhi was the Prime Minister. The Indira Gandhi government nationalised 14 major Indian banks and the Green Revolution in India advanced agriculture.

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: (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)

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.