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

Answer: (a)

Financial inclusion is the delivery of financial services, at affordable costs, to sections of disadvantaged and low income segments of society. It includes opening educational centres, opening wealth management centres by Citibank etc. Khan commission had put forward its report on financial inclusion.

Answer: (a)

Factors responsible for this are given below:

1. The boost to demand given by monetary and fiscal stimulus following the crisis was large. Final consumption grew at an average of over 8% annually between 2009-10 and 2011-12. The result was strong inflation and a powerful monetary response that also slowed consumption demand.
2. Beginning in 2011-12 corporate and infrastructure investments started slowing both as a result of investment bottlenecks as well as the tighter monetary policy.

Answer: (a)

The independent review committee headed by Dr P. Rama Rao was set up to review the functioning of the Defence Research and Development Organisation (DRDO).

The following recommendations of the committee were accepted by the government:

1. Nomination of nodal officers for structured interaction between DRDO and Services;
2. Integrated Financial Advice Scheme for financial decentralization; etc.

Answer: (c)

Originally, the assets of the Issue Department were to consist of not less than two-fifths of gold coin, gold bullion or sterling securities provided the amount of gold was not less than Rs.40 crore in value.

The remaining three-fifths of the assets might be held in rupee coins, Government of India rupee securities, eligible bills of exchange and promissory notes payable in India.

Due to the exigencies of the Second World War and the post-war period, these provisions were considerably modified.

Since 1957, the Reserve Bank of India is required to maintain gold and foreign exchange reserves of Rs.200 crore (2 billion), of which at least Rs.115 crore should be in gold and Rs.85 crore in the form of Government Securities. The system as it exists today is known as the minimum reserve system.

Answer: (d)

Infosys Technologies became the first Indian company to be listed on the US NASDAQ in March 1999. Infosys was incorporated on July 2, 1981 as a private limited company in India. It became public limited company in June 1992.