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Quiz: Introduction To Indian Economy

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Number of Questions: 40

Question: 26 -

Which of the following will not contribute to a higher current account deficit?

  1. Increase in price of crude oil
  2. Rise in export of software services
  3. Rise in import of services

Choose the correct answer using the codes given below:

Options:

  1. 3 only

  2. 1 and 2

  3. 2 only

  4. 1 and 3

    5. Answer:

    2 only
    Solution:

    The current account deficit is a measurement of a country’s trade in which the value of goods and services it imports exceeds the value of goods and services it exports. An increase in crude oil price and rise in services of import of oil, increase the current account deficit.

    However, an increase in export software services will reduce the deficit.

Question: 27 -

Which among the following statement characterize Indian Economy:

  1. pre-dominance of agriculture
  2. low per capita income
  3. massive unemployment

Select the correct answer using the codes given below

Options:

  1. 1 and 2

  2. 1 only

  3. 2 only

  4. 1, 2 and 3

    5. Answer:

    1, 2 and 3
    Solution:

    The Indian economy constitute of predominance of agriculture, low per capita income, massive unemployment.

Question: 28 -

Government takes ‘ways and means advances’ from

Options:

  1. RBI

  2. SBI

  3. ICICI

  4. IDBI

    5. Answer:

    RBI
    Solution:

    Ways and means advances (WMA) is a mechanism used by the Reserve Bank of India (RBI) under its credit policy by which provides to the States banking with it to help them to tide over temporary mismatches in the cash flow of their receipts and payments.

    These are temporary advances (overdrafts) extended by RBI to the government. Section 17(5) of the RBI Act allows RBI to make WMA both to the Central and State governments. It aims to bridge the interval between expenditure and receipts.

Question: 29 -

In which of the following years India switched over to decimal currencies?

Options:

  1. 1960

  2. 1957

  3. 1956

  4. 1955

    5. Answer:

    1957
    Solution:

    India switched over to decimal currency in 1957 with the amendment of the Indian Coinage Act. The rupee remained unchanged in value and nomenclature. It, however, was now divided into 100 ‘Paisa’ instead of 16 Annas.

Question: 30 -

In which year the planning commission was set-up ?

Options:

  1. 1949

  2. 1950

  3. 1951

  4. 1952

    5. Answer:

    1950
    Solution:

    After India gained independence, a formal model of planning was adopted, and accordingly the Planning Commission, reporting directly to the Prime Minister of India was established on 15 March 1950. Prime Minister Jawaharlal Nehru was the first chairman.