introduction to indian economy section 6 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (b)

Pradhan Mantri Jan Dhan Yojana is India's national mission for financial inclusion to ensure access to financial services, namely banking savings & deposit accounts, remittance, credit, insurance, pension in an affordable manner.

This financial inclusion campaign was launched by the Prime Minister of India Narendra Modi on 28 August 2014.

Answer: (a)

State Government transactions are carried out by the Reserve Bank of India in terms of the agreement entered into with the State Governments in terms of section 21 A of the Act.

As of now, such agreements exist between RBI and all the State Governments except with the Government of Jammu and Kashmir.

Answer: (c)

A currency is deemed convertible on the current account if it can be freely converted into other convertible currencies for the purchase and sale of commodities and services.

For example, if the rupee is convertible on the current account an Indian firm should be able to freely convert the rupee into Yen (JPY) to purchase from a Japanese Company.

Since August 20, 1994, the rupee has been made a freely convertible currency on the current account.

Answer: (d)

The National Income Unit of the Central Statistical Organisation (CSO) is responsible for the estimation of national income. It is responsible for the coordination of statistical activities in India, and evolving and maintaining statistical standards.

CSO’s other works include: conduct of the Annual Survey of Industries, Economic Censuses and its follow up surveys, a compilation of Consumer Price Indices for Urban Non-Manual Employees, etc.

Answer: (c)

During the last decade, the tertiary sector has shown remarkable expansion. The economy is divided into three sectors on the basis of activities–primary, secondary and tertiary.

Primary sector is involved in agriculture, the secondary sector is involved in manufacturing, mining, construction while the tertiary sector is involved in trade, transport, communication, banking & other services. In the last decade, India has expanded maximum in providing services like IT, Telecommunication, Healthcare, Tourism which is contributing around 60% to GDP.