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

Answer: (a)

The PV Narasimha Rao government established the National Renewal Fund (NRF) in February 1992 to provide a social safety net to the workers who were likely to be affected by technological up-gradation and modernisation in the Indian industry.

NRF was intended to provide funds for employment generation schemes in the organised and unorganised sectors in order to provide a social safety net for labour.

Answer: (a)

Indira Vikas Patra was a small scale deposit scheme operated by the post offices all over the country to encourage the idea of investment in the minds of the lower-middle class people.

Answer: (c)

The National Sample Survey Office(NSSO) in India is a unique setup to carry out surveys on socioeconomic, demographic, agricultural and industrial subjects for collecting data from households and from enterprises located in villages and in the towns.

It is a focal agency of the Government of India for the collection of statistical data in the areas which are vital for developmental planning.

Answer: (b)

Coins may be coined at the Mint for issue under the authority of the Central Government, (of such denominations not higher than one hundred rupees), of such dimensions and designs, and of such metals or of mixed metals of such composition as the Central Government may, by notification in the Official Gazette, determine.) Paper Currency in India consists of notes of various denominations which are issued by the RBI and the Government of India.

The one rupee note is issued by the Ministry of Finance and bears the signature of the secretary. All currency notes are legal tender.

Answer: (d)

The Reserve Bank of India (RBI) is known as the Lender of Last Resort. This is because when a commercial bank faces a financial crisis and fails to obtain funds from other sources, then the central bank provides them with financial assistance in the form of credit.

This role of the central bank saves the commercial bank from bankruptcy. Thus, the RBI plays the role of guarantor for commercial banks and maintains a sound banking system in the economy.