planning economic development & five year plans section 3 MCQ Questions & Answers Detailed Explanation
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The following question based on Planning, Economic Development & Five year Plans topic of indian economy mcq
- to increase the money supply
- to decrease the interest rate
(a) Only II is true
(b) Both I & II are true
(c) Only I is true
(d) Neither I nor II are true
The correct answers to the above question in:
Answer: (c)
Quantitative easing is distinguished from standard central banking monetary policies, which usually targets the interbank interest rate. When interest rates have been lowered to nearly zero (because of either deflation or extremely low money demand), when a large number of non-performing or defaulted loans prevent further lending (money supply growth) by member banks, and when the main systemic risk is a recession or depression because banks cannot lend any more money, then central banks need to implement a new set of tactics. These are known as quantitative easing.
The central bank may enact quantitative easing by purchasing a predetermined quantity of bonds or other assets from financial institutions without reference to the interest rate.
The goal of this policy is to increase the money supply rather than to decrease the interest rate, which cannot be decreased further. This is often considered a last resort to stimulate the economy.
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Read more planning economic development five year plans Based Indian Economy Questions and Answers
Question : 1
‘Inclusive growth’ is a phrase used in India’s
- 9th Plan
- 10th Plan
- 11th Plan
- 12th Plan
a) 2 and 4
b) 3 and 4
c) 1, 2 and 3
d) Only 4
Answer »Answer: (b)
Inclusive growth is a phrase used in India for 11th (2007-2012) and 12th (2012-2017) Five year plans.
Question : 2
Which among the following is not correct with regard to Sampoorna Garmeena Rozgar Yojana?
- The cash component of the programme is borne exclusively by the Central Government.
- Foodgrains are provided free of costs to the States/ Union Territories.
a) 1 only
b) Both 1 and 2
c) 2 only
d) Neither 1 Nor 2
Answer »Answer: (c)
Question : 3
Which of the following programmes is launched to develop basic infrastructure in the country?
a) Special Economic Zones
b) Technical Mission
c) Bharat Nirman Programme
d) National Rural Employment Guarantee Act
Answer »Answer: (c)
Bharat Nirman programme is launched to develop basic infrastructure in the country.
Question : 4
After the launch of New Economic Policy:
a) rural poverty increased initially but declined in 1993-94
b) both urban and rural poverty increased
c) rural poverty increased but urban poverty declined
d) both rural & urban poverty decreased
Answer »Answer: (a)
Question : 5
In the context of Indian Five Year Plans, a shift in the pattern of industrialization, with lower emphasis of heavy industries and more on infrastructure being in :
a) Sixth plan
b) Eighth plan
c) Fourth plan
d) Tenth plan
Answer »Answer: (a)
Sixth five-year plan started in 1980-85 marked the beginning of economic liberalization in India.
In Sixth Five year plan, a shift in pattern of Industrialisation with a lower emphasis on heavy industry and move on infrastructure begins.
Question : 6
Which of the following statements is/are incorrect?
- Open Unemployment: It refers to unemployment that occurs at certain seasons of the year. The period of such unemployment varies from state to state, depending upon the methods of farming, the condition of the soil, the type and numbers of crops grown, etc.
- Frictional Unemployment: It refers to temporary unemployment that exists during the period, wherein workers leave one job and join some other.
- Cyclical Unemployment: It is associated with the downswing and depression phases 9 business cycle. It is the most common type of unemployment in the developed capitalist economies.
a) 1 only
b) 3 only
c) 2 only
d) 2 and 1
Answer »Answer: (a)
Seasonal Unemployment: It refers to unemployment that occurs at certain seasons of the year. The period of such unemployment varies from state to state, depending upon the methods of farming, the condition of the soil, the type and numbers of crops grown, etc.
Frictional Unemployment: It refers to temporary unemployment that exists during the period, wherein workers leave one job and join some other.
Cyclical Unemployment: It is associated with the downswing and depression phases 9 business cycle. It is the most common type of unemployment in the developed capitalist economies.
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