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

Answer: (c)

In economics, the money supply or money stock is the total amount of monetary assets available in an economy at a specific time.

It is governed and regulated by the central bank of a country. The Reserve Bank of India regulates the money supply in India through its several policy rates and reserve ratios.

Answer: (d)

National Income is the money value of all the final goods and services produced by a country during a period of one year.

National Income consists of a collection of different types of goods and services of different types.

Answer: (b)

Devaluation is a deliberate downward adjustment to the value of a country’s currency, relative to another currency, group of currencies.

Since it is relative to other currencies so the internal price remains unchanged. It causes a country’s exports to become less expensive and imports more expensive.

Answer: (d)

IDBI Bank Limited is an Indian financial service company headquartered in Mumbai, India. RBI categorised IDBI as an “other public sector bank”. It was established in 1964 by an Act of Parliament to provide credit and other facilities for the development of the fledgling Indian industry.

The Industrial Development Bank of India (IDBI) was established on 1 July 1964 under an Act of Parliament as a wholly-owned subsidiary of the Reserve Bank of India.

On 16 February 1976, the ownership of IDBI was transferred to the Government of India and it was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and developing industry in the country.

Answer: (a)

GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer.

Products like kerosene, naphtha and LPG will be under the ambit of GST, while five items in the basket — crude oil, natural gas, aviation fuel, diesel and petrol — have been excluded during the initial years.