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

Answer: (c)

As per the Economic Survey 2011-12, Petroleum, oil and lubricants (POL) imports constituted 31.4 per cent of total imports in the first half of 2011-12 due to high prices of crude oil.

1. Food and allied products comprised 3.1 per cent share;
2. Fertilizers: 1.7 per cent;
3. Capital Goods: 11.6 per cent;
4. Chemicals: 5.1 per cent;
5. Pearls, Precious Stones: 6.0 per cent;
6. Gold & Silver: 13.3 per cent; and
7. Electronic goods comprised a 7.2 per cent share of the total imports.

Answer: (c)

The Reserve Bank of India has the responsibility of maintaining fixed exchange rates with all other member countries of the International Monetary Fund.

Besides maintaining the rate of exchange of the rupee, the Reserve Bank has to act as the custodian of India’s reserve of international currencies. It operates the exchange control system.

Answer: (c)

OMOs are the market operations conducted by the Reserve Bank of India by way of sale/ purchase of Government securities to/ from the market with an objective to adjust the rupee liquidity conditions in the market on a durable basis.

Answer: (b)

Magnetic Ink Character Recognition, or MICR, is a character-recognition technology used primarily by the banking industry to facilitate the processing of cheques and makes up the routing number and account number at the bottom of a cheque.

The technology allows computers to read the information (such as account numbers) off printed documents. Unlike barcodes or similar technologies, however, MICR codes can be easily read by humans.

MICR characters are printed in special typefaces with magnetic ink or toner, usually containing iron oxide.

Answer: (d)

The investment method is not a method of measurement of National Income.

There are three methods of measurement; income method, product or value-added method and the expenditure method. In the initial phase, the production of goods and services takes place.

During the course of production, payment is made to all factors of production like wages to labour etc. Once the production completes the output is distributed for different uses like consumption etc.