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Quiz: Introduction To Indian Economy

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Number of Questions: 40

Question: 21 -

Of the following land uses, which is restricted to Special Economic Zones ?

Options:

  1. Free trade Centres

  2. Marketing Centres

  3. Educational Institutions

  4. Information Technology Companies

    5. Answer:

    Free trade Centres
    Solution:

    The category Special economic zone includes free trade zones (FTZ), export processing Zones (EPZ), free Zones (FZ), industrial parks or industrial estates (IE), free ports, free economic zones, and urban enterprise zones.

    The goal of an SEZ structure is to increase foreign direct investment by foreign investors.

Question: 22 -

Consider the following statements in regard to ‘Marginal Standing Facility (MSF)’ of RBI :

  1. It will help in reducing volatility in the overnight lending rates in the inter-bank market.
  2. The borrowing under the MSF should be over and above the statutory liquidity requirement.

Which of the statements given above is/are correct?

Options:

  1. 2 only

  2. 1 only

  3. Neither 1 nor 2

  4. Both 1 and 2

    5. Answer:

    1 only
    Solution:

    Marginal Standing Facility (MSF) is the rate at which scheduled banks could borrow funds overnight from the Reserve Bank of India (RBI) against approved government securities.

    Banks can borrow funds through MSF during acute cash shortages (considerable shortfall of liquidity). This measure has been introduced by RBI to regulate short-term asset-liability mismatch more effectively and the borrowing is within Statutory liquidity requirements.

    The Marginal Standing Facility (MSF) is pegged 100bps or 1 % above the Repo Rate.

Question: 23 -

Indian economy is a developing economy as there is?

  1. Dominance of agriculture.
  2. Huge unemployment
  3. Low quality of human capital
  4. Low per capita consumption.

Options:

  1. 2 and 3

  2. 1, 2, 3 and 4

  3. 1, 2 and 3

  4. 1 and 4

    5. Answer:

    1, 2, 3 and 4
    Solution not available.

Question: 24 -

‘Self Reliance’ was the main objective of

Options:

  1. Fourth Plan

  2. Sixth Plan

  3. Third Plan

  4. Seventh Plan

    5. Answer:

    Sixth Plan
    Solution:

    The sixth five-year plan had long-term objectives of removal of poverty and the achievement of self-reliance.

    It also aimed at the achievement of economic and technological self-reliance with the help of modernisation.

Question: 25 -

Which State Government has recently abolished “agriculture income tax”

Options:

  1. Rajasthan

  2. Assam

  3. Bihar

  4. Karnataka

    5. Answer:

    Karnataka
    Solution:

    Karnataka’s Chief Minister Siddaramaiah, in March 2016, made the announcement to abolish the tax on agricultural income while presenting the State Budget for 2016-17.

    This in turn will provide relief to many tea and coffee companies besides thousands of individual coffee growers. Plantation companies had to pay a 35 per cent tax on their net income.