introduction to indian economy section 11 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (a)

National income measures the net value of goods and services produced in a country during a year and it also includes net earned foreign income.

Answer: (b)

The exchange rate can be defined as the value of one currency in terms of another. India follows a floating exchange rate system for the determination of the exchange rate.

A floating exchange rate system can be defined as a system where the exchange rate between currencies is not fixed but keep fluctuating, as they are determined by the demand and supply for the domestic currency in the international market.

India has been operating on a managed floating exchange rate regime since March 1993, marking the start of an era of a market-determined exchange rate regime of the rupee with provision for timely intervention by the central bank.

Answer: (d)

Antyodaya Anna Yojana (AAY) is a centrally sponsored scheme that was launched on December 25, 2000, for one crore of the poorest families. It is an important milestone in providing foodgrains to the poor.

It contemplated providing 25 kg. of foodgrains per month at highly subsidized rates of Rs.2 per kg. for wheat and Rs.3 per kg. for rice to each Antyodaya family.

This scheme reflects the commitment of the Government of India to ensure food security for all, create a hunger-free India in the next five years and reform and improve the Public Distribution System so as to serve the poorest of the poor in rural and urban areas.

Answer: (a)

In a first-of-its-kind move in the country, Kerala, in July 2016, introduced a ‘fat tax’ on the consumption of junk food items like pizzas and burgers sold through branded restaurants.

The state government imposed a 14.5% tax on branded restaurants selling items like tacos, pizzas, burgers, sandwiches, among others.

Answer: (d)

Basel III (or the Third Basel Accord) is a global, voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity risk.

So all the given statements are correct.