introduction to indian economy section 3 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (a)

The tertiary sector of the economy (also known as the service sector) is one of the three economic sectors. The service sector consists of activities where people offer their knowledge and time to improve productivity.

Examples of tertiary industries may include the following:

1. telecommunication,
2. hospitality industry/tourism,
3. mass media,
4. healthcare/hospitals,
5. information technology,
6. banking,
7. insurance,
8. investment management,
9. accountancy,
10. legal services,
11. consulting,
12. retail sales,
13. real estate,
14. education.

Answer: (c)

Since 1951 public distribution of food grains has been retained as deliberate social policy by India with the objectives of:

1. Providing food grains and other essential items to vulnerable sections of the society at reasonable (subsidized) prices;
2. put an indirect check on the open market prices of various items and
3. attempt socialization in the matter of distribution of essential commodities.

PDS is an important constituent of the strategy for poverty eradication and is intended to serve as a safety net for the poor. Controlling the production of food grains is not the avowed aim of this system. It is a welfare measure, not some economic regulatory system.

Answer: (b)

The scheduled primary (urban) cooperative banks are required to maintain with the Reserve Bank of India an average daily balance, the amount of which should not be less than 5 per cent of their net demand and time liabilities in India in terms of Section 42 of the Reserve Bank of India Act, 1934.

Non-scheduled (urban) cooperative banks, under the provision of Section 18 of Banking Regulation Act, 1949 (As Applicable to Cooperative Societies) should maintain a sum equivalent to at least 3 per cent of their total demand and time liabilities in India on a day-to-day basis.

Answer: (a)

The limited advisory function accorded to the Public Service Commission and the continued stress on this aspect by the leaders of our freedom movement resulted in the setting up of a Federal Public Service Commission under the Government of India Act, 1935. The Federal Public Service Commission became the Union Public Service Commission after Independence.

The portfolio system in the Executive was introduced by the Indian constitution council act, 1861. The separation of provincial budgets from the central budget was introduced by the Indian council's Act, 1919.

Answer: (e)

At present, Hindustan Aeronautics Limited and Mahanagar Telephone Nigam Limited are both navaratna companies. Navratna was the title given originally to nine Public Sector Enterprises (PSEs), identified by the Government of India in 1997. The number of PSEs having Navratna status has been raised to 16