introduction to indian economy section 4 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (c)

Open market operation

Answer: (c)

In a bid to make AIDS prevention a mission, the Employees’ State Insurance Corporation of India (ESIC) announced the launch of ‘Project Sankalp’ for strengthening ESIC’s intervention on HIV/AIDS and Family welfare at Mangalore, Karnataka, on 17 August 2008.

It aimed at counselling and treatment to ESIC beneficiaries affected with HIV in the State.

Answer: (b)

National income is also computed by the expenditure approach wherein the focus is on finding the total output of a nation by finding the total amount of money spent.

As per this approach,

GDP = C+I+G+ (X-M)

where, C = household consumption expenditures / personal consumption expenditures;

I = gross private domestic investment;

G = government consumption and gross investment expenditures;

X = gross exports of goods and services; and

M = gross imports of goods and services.

(X - M) is often written as XN, which stands for "net exports".

Answer: (b)

Maruti Udyog Ltd. came into being in the year 1982 when Suzuki Motor Corporation (SMC) entered into a joint venture with the Government of India to manufacture fuel-efficient passenger cars under the brand name Maruti.

Maruti cars, based on the Japanese philosophy for super-efficient manufacturing, brought about the renaissance of the Indian components industry.

Answer: (b)

In order to curb inflation, if CRR is increased, then it may take liquidity from markets as banks will have to deposit more money with RBI. Moreover, inflation may also be curbed by permitting central/state agencies to import duty-free pulses and sugar.

However, decreasing SLR will leave more money to banks to give loans, which in turn will lead to inflation.