planning economic development & five year plans section 3 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 36

After the launch of New Economic Policy:

a) rural poverty increased initially but declined in 1993-94

b) both urban and rural poverty increased

c) rural poverty increased but urban poverty declined

d) both rural & urban poverty decreased

Answer: (a)

Question : 37

Which of the following is the objective of Quantitative easing, an unconventional monetary policy?

  1. to increase the money supply
  2. to decrease the interest rate

a) Only II is true

b) Both I & II are true

c) Only I is true

d) Neither I nor II are true

Answer: (c)

Quantitative easing is distinguished from standard central banking monetary policies, which usually targets the interbank interest rate. When interest rates have been lowered to nearly zero (because of either deflation or extremely low money demand), when a large number of non-performing or defaulted loans prevent further lending (money supply growth) by member banks, and when the main systemic risk is a recession or depression because banks cannot lend any more money, then central banks need to implement a new set of tactics. These are known as quantitative easing.

The central bank may enact quantitative easing by purchasing a predetermined quantity of bonds or other assets from financial institutions without reference to the interest rate.

The goal of this policy is to increase the money supply rather than to decrease the interest rate, which cannot be decreased further. This is often considered a last resort to stimulate the economy.

Question : 38 [CDS- 2014-I]

‘Inclusive growth’ is a phrase used in India’s

  1. 9th Plan
  2. 10th Plan
  3. 11th Plan
  4. 12th Plan
Select the correct answer using the codes given below.

a) 2 and 4

b) 3 and 4

c) 1, 2 and 3

d) Only 4

Answer: (b)

Inclusive growth is a phrase used in India for 11th (2007-2012) and 12th (2012-2017) Five year plans.

Question : 39

Which among the following is not correct with regard to Sampoorna Garmeena Rozgar Yojana?

  1. The cash component of the programme is borne exclusively by the Central Government.
  2. Foodgrains are provided free of costs to the States/ Union Territories.
Select the answer unsing the code given below:

a) 1 only

b) Both 1 and 2

c) 2 only

d) Neither 1 Nor 2

Answer: (c)

Question : 40

Which of the following programmes is launched to develop basic infrastructure in the country?

a) Special Economic Zones

b) Technical Mission

c) Bharat Nirman Programme

d) National Rural Employment Guarantee Act

Answer: (c)

Bharat Nirman programme is launched to develop basic infrastructure in the country.

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1202 Five year Plans based indian economy MCQ section 3 question answer with explanation pdf

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