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

Answer: (b)

The total value of all goods and services produced in the economy during a particular period of time is called National Income. The largest component of National Income in India is service sector.

Answer: (a)

The Reserve Bank’s accounting year is July to June. After its establishment on 1 April 1935, the RBI changed its accounting year from January-December to July-June on 11 March 1940.

Normally, RBI remains closed for public transactions every July 1 on account of its annual closing of accounts.

Answer: (c)

At present, notes in India are issued in the denomination of Rs.5, Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1000. These notes are called banknotes as they are issued by the Reserve Bank of India (Reserve Bank).

The printing of notes in the denominations of Rs.1 and Rs.2 has been discontinued as these denominations have been coined. However, such notes issued earlier are still in circulation.

The printing of notes in the denomination of Rs.5 had also been discontinued.

Answer: (c)

Answer: (c)

With the introduction of Economic liberalisation requirement for government licensing has been abolished except for a small list of strategic and potentially hazardous industries and a few industries which are reserved for the small scale sector.

For most industries however industrial investment has been effectively delicensed and investors are free to set up new units or expand existing units subject only to environmental clearances.