introduction to indian economy section 2 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (b)

The sum of a nation’s gross domestic product (GDP) plus net income received from overseas. Gross national income (GNI) is defined as the sum of value added by all producers who are residents in a nation, plus any product taxes (minus subsidies) not included in output, plus income received from abroad such as employee compensation and property income.

Answer: (d)

The Mumbai Stock Exchange, also known as Bombay Stock Exchange (BSE), was established in 1875. It claims to be Asia’s first stock exchange and the world’s fastest stock exchange, with a median trade speed of 6 microseconds.

Answer: (e)

The period of Eleventh Five Year Plan was 2007- 2012. It completed its term in March 2012 and the twelfth plan is currently underway

Answer: (c)

The Finance Commission of India is established under Article 280 of the Indian Constitution by the President of India to define the financial relations between the centre and the state.

It is entrusted with the task of distribution of net proceeds of taxes between Centre and the States, to be divided as per their respective contributions to the taxes; determine factors governing Grants-in-Aid to the states and the magnitude of the same; and work with the State Finance Commissions and suggest measures to augment the Consolidated Fund of the States so as to provide additional resources to Panchayats and Municipalities in the state.

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.