introduction to indian economy section 10 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (d)

All these statements are components of internal debt.

Answer: (c)

Open Market Operations (OMO) is the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system. Purchases inject money into the banking system and stimulate growth while sales of securities do the opposite.

OMOs are the market operations conducted by the Reserve Bank of India by way of sale/ purchase of Government securities to/ from the market with an objective to adjust the rupee liquidity conditions in the market on a durable basis.

Answer: (b)

Despite the developing countries’ impressive aggregate growth of the past 25 years, its benefits have only reached the poor to a very limited degree.

Not only have the poorest countries grown relatively slowly, but growth processes are such that within most developing countries, the incomes of the poor increase much less than the average.

Much of the poverty is due to severe inequality which in turn is due to lop-sided development. Income inequality is the major determinant of poverty both in developed and non-developed countries.

Rising unemployment is a major source of spreading poverty. Lack of access to crucial assets and services (health care, schooling, and infrastructure) exclude the poor from the very beginning.

Answer: (d)

Answer: (a)

Assuming national income being measured as the Gross Domestic Product (GDP), the lion’s share in the national income of India is of the SERVICE sector (tertiary sector) which stands at 57% in 2013.

India’s dynamic services sector has grown rapidly in the last decade with almost 72.4 per cent of the growth in India’s GDP in 2014-15 coming from this sector. (Source: Economic Survey 2015-16).