Indian Economy GK Quiz-11

Indian Economy GK Quiz-11

Indian Economy Multiple Choice Questions (MCQs) Quiz for State and UPSC Civil Services Examinations. Objective Questions on Indian Economy for competitive examinations.

    201. Who estimated the National Income for the first time in India ?

    (1) Mahalanobis
    (2) Dadabhai Naoroji
    (3) V.K.R.V. Rao
    (4) Sardar Patel
    Answer:
    201. (2) Dadabhai Naoroji prepared the first estimates of National income in 1876. He estimated the national income by first estimating the value of agricultural production and then adding a certain percentage as non-agricultural production.

    202. The Accounting Year of Reserve Bank of India runs from :

    (1) April to March
    (2) July to June
    (3) January to December
    (4) August to July
    Answer:
    202. (2) The financial year of Reserve Bank of India is from July to June. The central bank publishes its
    annual report in August which relates to the financial year. It is the statement of the Board of Directors on the state of the economy, and on the balance sheet of the Reserve Bank. It also presents an assessment and prospects of the Indian economy.

    203. The latest volume of foodgrains to be given per family as determined under ‘Annapurna Scheme’ is —

    (1) 35 kg 
    (2) 20 kg
    (3) 10 kg 
    (4) 40 kg
    Answer:
    203. (3) When the Annapurna Scheme was launched in April 2000, the beneficiaries were to be given 10 Kg. of food grains per month free of cost. It aims at providing food security to meet the requirement of those Senior Citizens who through eligible have remained uncovered under the National Old Age
    Pension Scheme (NOAPS). 

    204. The fish catch by Indian fishermen in the international waters are part of the GDP of

    (1) Sri Lanka
    (2) India and Sri Lanka
    (3) India
    (4) India and Indonesia
    Answer:
    204. (3) Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time. The United Nations Conference on the Law of the Sea has defined sovereign rights over international waters by defining such concepts as Internal Waters, exclusive economic zones (EEZs), continental shelf jurisdiction, etc. According to this law, the income generated by Indian fishermen would be accounted in GDP of India.

    205. While computing national income estimates, which of the following is required to be observed ?

    (1) The value of exports to be added and the value of imports to be subtracted
    (2) The value of exports to be subtracted and the value of imports to be added
    (3) The value of both exports and imports to be added
    (4) The value of both exports and imports to be subtracted
    Answer:
    205. (1) National income is also computed by the expenditure approach wherein the focus is on finding
    the total output of a nation by finding the total amount of money spent. As per this approach, GDP= C+I+G+ (X-M) where, C = household consumption expenditures / personal consumption expenditures;
    I = gross private domestic investment; G = government consumption and gross investment expenditures; X = gross exports of goods and services; and M = gross imports of goods and services. (X - M) is often written as XN, which stands for "net exports".

    206. Which one of the following is not an objective of Fiscal Policy in India?

    (1) Full Employment
    (2) Price Stability
    (3) Equitable Distribution of Wealth and Incomes
    (4) Regulation of International Trade
    Answer:
    206. (4) Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments of fiscal policy are government taxation and changes in the level and composition of taxation and government spending.

    207. Which one of the following is not a quantitative credit control measure of a Central Bank ?

    (1) Bank Rate Policy
    (2) Open Market Operations
    (3) Cash Reserve Ratio
    (4) Moral Suasion
    Answer:
    207. (4) The Central Bank uses Quantitative control to regulate the volume of total credit. Quantitative
    methods are: (i) Manipulation of Bank Rate; (ii) Open market operations; (iii) Manipulation of Cash reserve ratio; (iv) Repo & Reverse Repo; and (v) Altering Statutory Liquidity Ratio. Moral persuasion and direct action is a qualitative method.

    208. Which of the following is deducted from NNP to arrive at Nl ?

    (1) Indirect Tax
    (2) Capital consumption allowance
    (3) Subsidy 
    (4) Interest
    Answer:
    208. (1) Net national income (NNI) is an economics term used in national income accounting. It can be defined as the net national product (NNP) minus indirect taxes. Net national income encompasses the income of households, businesses, and the government. 

    209. The best example of a capital intensive industry in India is

    (1) Textile Industry
    (2) Steel Industry
    (3) Tourism Industry
    (4) Sports Goods Industry
    Answer:
    209. (2) Capital Intensive Industry refers to that industry which requires substantial amount of capital for the production of goods. In the Capital Intensive Industries, proportion of capital involved is much
    higher than the proportion of labor. This is because the industrial structure and industry type require
    high value investments in capital assets. On the basis of this standard, iron and steel industry can be
    termed as a capital intensive industry.

    210. India’s Balance of Payments can be corrected through

    (1) Devaluation of currency
    (2) Vigorous export promotion
    (3) Import substitution
    (4) All of the above
    Answer:
    210. (4) Broadly speaking, there are three possible methods to correct Balance of Payments (BOP)
    imbalances. These methods are adjustments of exchange rates; adjustment of a nations internal prices
    along with its levels of demand; and rules based adjustment. This can be achieved by vigorous import
    substitution which means export promotion and devaluation of local currency as then it makes export
    cheaper to the international market.

    211. After ONGC, OIC, NTPC and SAIL, the ‘Navratna’ PSU which was awarded ‘Maharatna’ status is

    (1) HAL 
    (2) GAIL
    (3) Coal India Ltd 
    (4) BHEL
    Answer:
    211. (3) In April 2011, Coal India Limited (CIL) was conferred the Maharatna status by the Union
    Government of India and ranked as one of India's most valuable companies by market value. It is the
    world's largest coal miner with revenue exceeding Rs. 624.15 billion in 2012. 

    212. Which of the following ‘Public Undertakings’ has not been conferred with ‘Maharatna’ Status ?

    (1) SAIL 
    (2) BHEL
    (3) ONGC
    (4) Coal India Limited
    Answer:
    212. (2) There are 5 Maharatna companies: Coal India Limited, Indian Oil Corporation Limited, NTPC
    Limited, Oil and Natural Gas Corporation Limited and Steel Authority of India limited. Bharat Heavy
    Electricals Limited (BHEL) is a navaratna company.

    213. After ONGC, OIC, NTPC and SAIL, the ‘Navratna’ PSU which was awarded ‘Maharatna’ status is

    (1) HAL 
    (2) GAIL
    (3) Coal India Ltd 
    (4) BHEL
    Answer:
    213. (3) In April 2011, Coal India Limited (CIL) was conferred the Maharatna status by the Union
    Government of India. CIL is an Indian state-controlled coal mining company headquartered in Kolkata. It contributes around 85% of coal production in India. It is currently 90% owned by the Government of India with the remaining 10% owned by the public.

    214. Which one of the following is not included while estimating national income through income method?

    (1) Rent
    (2) Mixed incomes
    (3) Pension
    (4) Undistributed profits
    Answer:
    214. (4) The income approach equates the total output of a nation to the total factor income received by
    residents or citizens of the nation. The main types of factor income are: Employee compensation (cost of fringe benefits, including unemployment, health, and retirement benefits); Interest received net of interest paid; Rental income (mainly for the use of real estate) net of expenses of landlords; and Royalties paid for the use of intellectual property and extractable natural resources. All remaining value added generated by firms is called the residual or profit. If a firm has stockholders, they own the residual, some of which they receive as dividends. Profit includes the income of the entrepreneur - the businessman who combines factor inputs to produce a good or service.

    215. Taxation is a tool of

    (1) Monetary policy
    (2) Fiscal policy
    (3) Price policy
    (4) Wage policy
    Answer:
    215. (2) Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy.

    216. Which one is correct about the duration of the Eleventh Five Year Plan?

    (1) 01.01.2005 to 31.12.2010
    (2) 01.04.2005 to 31.03.2010
    (3) 01.01.2006 to 31.12.2011
    (4) 01.04.2006 to 31.03.2011
    Answer:
    216. (*) The period of Eleventh Five Year Plan was 2007- 2012. It completed its term in March 2012 and the twelfth plan is currently underway.

    217. Which of the following is an example of Joint-Sector enterprise in India?

    (1) Maruti Udyog Limited
    (2) The Indian Oil Corporation
    (3) Hindustan Antibiotics Ltd.
    (4) Bharat Aluminium Ltd.
    Answer:
    217. (1) Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The BJP-led government held an initial public offering of 25% of the company in June 2003. As of 10 May 2007, the government of India sold its complete share to Indian financial institutions and no longer has any stake in Maruti Udyog. 

    218. In how many denominations is Indian paper currency printed at present ?

    (1) 9 
    (2) 8
    (3) 7 
    (4) 6
    Answer:
    218. (3) At present, notes in India are issued in the denomination of Rs.5, Rs.10, Rs.20, Rs.50, Rs.100,
    Rs.500 and Rs.1000. These notes are called bank notes as they are issued by the Reserve Bank of India (Reserve Bank). The printing of notes in the denominations of Re.1 and Rs.2 has been discontinued as these denominations have been coinised. However, such notes issued earlier are still in circulation. The printing of notes in the denomination of Rs.5 had also been discontinued.

    219. Who advocated the adoption of ‘PURA’ mbdel to eradicate rural poverty ?

    (1) M.S. Swaminathan
    (2) Maulana Abul Kalam Azad
    (3) Dr. A.P.J. Abdul Kalam
    (4) A.M.Khusro
    Answer:
    219. (3) Providing Urban Amenities to Rural Areas (PURA ) is a strategy for rural development. The concept was given by former President Dr. APJ Abdul Kalam.

    220. Monetary policy in India is formulated by : 

    (1) Finance Ministry
    (2) RBI
    (3) SEBI 
    (4) CLB
    Answer:
    220. (2) The Reserve Bank of India formulates Monetary Policy in India.

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