introduction to indian economy section 8 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (b)

Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society.

For financial inclusion 'Know your customer' norms should be relaxed and no-frills account should be opened for low-income segments which are looking for basic banking only.

Along with general-purpose credit cards should be issued and bank branches should be opened in unbanked rural areas.

Answer: (d)

The principal source of States own tax revenues is sales tax which accounts for about 60 per cent of the total. The other major components of States own tax revenues according to their revenue share are State excise, registration and stamp duty, motor vehicle and passenger tax, electricity duty, land revenues, profession tax, entertainment taxes and other sundry taxes.

Answer: (b)

Videsh Sanchaar Nigam Limited (VSNL) was the first Indian PSU to be listed in the New York Stock Exchange in 2000. The company operates a network of earth stations, switches, submarine cable systems, and value added service nodes to provide a range of basic and value added services.

Answer: (e)

The Reserve Bank of India (RBI), on 25 October 2011, deregulated savings bank deposit interest rates, leaving it to the banks to select their own interest rates.

However, each bank will have to offer a uniform interest rate on savings bank deposits up to Rs.1 lakh, irrespective of the amount in the account within this limit.

Besides, for savings bank deposits over Rs.1 lakh, a bank may provide differential rates of interest, if it so chooses.

Answer: (a)

National Income is based on the production of goods and services.

A variety of measures of national income and output are used in economics to estimate,

1. total economic activity in a country or region,
2. including gross domestic product (GDP),
3. gross national product (GNP),
4. net national income (NNI), and
5. adjusted national income (NNI* adjusted for natural resource depletion).

All are especially concerned with counting the total amount of goods and services produced within some “boundary”.