introduction to indian economy section 5 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (b)

C. Rangrajan panels have recently recommended the pricing of natural gas by a complex methodology of arriving at an average of international gas hub prices to replace current gas prices.

Answer: (c)

GDP deflator is an economic metric that accounts for inflation by converting output measured at current prices into constant-collar GDP. The GDP deflator shows how much a change in the base year’s GDP relies upon changes in the price level.

Answer: (d)

Megacities of India have more than 5 million population. But not all the major megacities are located on the sea coast or are sea ports. Delhi, which is the national capital is not a sea port.

Answer: (b)

Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank.

An increase in CRR means that banks have fewer funds available and money is sucked out of circulation; on the contrary, reduction in CRR leads to credit creation. CRR is used by RBI to control liquidity in the banking system.

Answer: (d)

By merging the two erstwhile wage employment programme - National Rural Employment Programme (NREP) and Rural Landless Employment Guarantee Programme (RLEGP) the Jawahar Rozgar Yojana (JRY) was started with effect from April 1, 1989, on an 80:20 cost-sharing basis between the centre and the States.

The main objective of the Yojana was additional gainful employment for the unemployed and under-employed persons in rural areas. The other objective was the creation of sustained employment by strengthening rural economic infrastructure and assets in favour of rural poor for their direct and continuing benefits.