Indian Economy GK Quiz-14

Indian Economy GK Quiz-14

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

    261. Rashtriya Krishi Bima Yojana was introduced in

    (1) 1992 
    (2) 1998
    (3) 1999 
    (4) 1996
    261. (3) The Rashtriya Krishi Bima Yojna was introduced in 1999. The scheme provides comprehensive risks insurance against yield losses viz. Drought, Hailstorm, Floods, Pests Disease etc. It is implemented by the Agriculture Insurance Corporation of India (AIC).

    262. India exports power to ____.

    (1) Bangladesh
    (2) Myanmar
    (3) Pakistan 
    (4) Bhutan
    262.(1) India’s commercial export of power to Bangladesh commenced in October 2013 with the inauguration of the Bangladesh-India Power Transmission Centre at western Bherampura, near
    West Bengal. India will export 500 MW of electricity daily to Bangladesh for 35 years.

    263. In India the largest single item of current government expenditure is

    (1) Defence Expenditure
    (2) Interest payment of debt
    (3) Payment of subsidies
    (4) Investment in social overheads
    263. (2) Interest payments are the single largest item of expenditure. They account for more than 40% of the total non-development expenditure. These items of expenditure are charged on the Consolidated Fund of India and are not required to be voted by the Lok Sabha.

    264. The ‘more mega store’ retail chain belongs to which Indian Industry ?

    (1) Reliance Industry
    (2) Bharti Enterprises
    (3) Aditya Birla Group
    (4) None of these
    264. (3) Aditya Birla Retail Limited (ABRL), the retail arm of Aditya Birla Group company, operates two store formats - Supermarket and Hypermarket under the brand ‘more’. ABRL is the 4th largest supermarket chain in India after Future Group, Reliance Retail and D-Mart.

    265. As an export item of India, which spice occupies the top position in value ?

    (1) Pepper 
    (2) Chillies
    (3) Turmeric 
    (4) Cardamom
    265. (2) According to the latest figures, in terms of export value (in lakhs), chilli occupied first place among spices in 2013-14 (estimated). The total value of chillies was 272,227.20 lakhs, Cumin: 160,006.00 lakh, Pepper: 94,002.34 lakh, etc (Data: Spices Board of India, Union Ministry of Commerce & Industry).

    266. The fourteen major banks in India were nationalised in the year

    (1) 1967 
    (2) 1968
    (3) 1969 
    (4) 1971
    266. (3) In 1969, 14 major private commercial banks were nationalized. This was followed by a second phase of nationalization in 1980, when Government of India acquired the ownership of 6 more banks, thus bringing the total number of nationalized Banks to 20. 

    267. One rupee notes are issued by the

    (1) Reserve Bank of India
    (2) State Bank of India
    (3) President of India
    (4) Government of India
    267. (4) While the Reserve Bank of India (RBI) has the authority to issue bank notes of denominational values of Rs. 2, Rs. 5, Rs. 10, Rs. 20, Rs. 50, Rs. 100, Rs. 500, Rs. 1,000, Rs. 5,000 and Rs. 10,000, the
    one rupee note was printed and issued by the central government. The Government of India also has the
    sole right to mint coins of all denominations.

    268. India switched over to the decimal currency system in

    (1) 1955 
    (2) 1956
    (3) 1957 
    (4) 1958
    268. (3) India changed from the rupee, anna, pie system to decimal currency on 1 April 1957. To distinguish between the two, the coins minted between 1957 and 1964 have the legend “Naya Paisa” (“new” paisa). 

    269. The second plan gave priority to

    (1) Agriculture
    (2) Services
    (3) Heavy Industry
    (4) Foreign Trade
    269. (3) The Second Plan between years 1956-1961 was focused on development of India by establishing heavy industries under public sector. Total money allotted for this 5-year plan was 48 Billion rupees. The plan followed the Mahalanobis model of economic development.

    270. Small farmers in the country have been defined as those farmers having land holding of

    (1) below one hectare
    (2) one to two hectare
    (3) two to three hectare
    (4) three to four hectare
    270. (2) In India, ‘Small Farmer’ means a farmer cultivating (as owner or tenant or share cropper) agricultural land of more than 1 hectare and up to 2 hectares (5 acres). ‘Marginal Farmer’ means a farmer cultivating agricultural land up to 1 hectare (2.5 acres).

    271. The number of Nationalised Banks in India is

    (1) 14 
    (2) 21
    (3) 20 
    (4) 22
    271. (3) On July 19, 1969, 14 commercial banks were nationalized, which got presidential approval on August 9, 1969. In 1980, in order to provide government more power and command over credit delivery, six more commercial banks in India were nationalized. If the associate banks of State Bank of India are counted, then the number goes to 27.

    272. Maruti cars are mainly based on 

    (1) Japanese Technology
    (2) Korean Technology
    (3) Russian Technology
    (4) German Technology
    272. (1) Maruti Udyog Ltd. came into being in the year 1982 when Suzuki Motor Corporation (SMC) entered into a joint venture with Government of India to manufacture fuel-efficient passenger cars under the brand name Maruti. Maruti cars, based on Japanese philosophy for super-efficient manufacturing, brought about the renaissance of the Indian components industry.

    273. About how many Indians cannot meet their essential needs as per a report by McKinsey Global Institute (MGI) released on 19th February, 2014 ?

    (1) 66% 
    (2) 56%
    (3) 46% 
    (4) 36%
    273. (2) In its report, McKinsey Global Institute (MGI) estimated that 680 million Indians, or 56 per cent of the population, lacks the means to meet their essential needs. It proposed a new “empowerment line” that aims to measure the minimum economic cost for a household to fulfill eight most basic needs.

    274. Which is NOT a measure undertaken by government to check inflation ?

    (1) Increase in consumption
    (2) Increase in production
    (3) Reduction in Deficit financing
    (4) Taxation measures
    274. (1) One of the important fiscal measures undertaken by governments to check inflation is to cut personal consumption expenditure. It is done by raising the rates of personal, corporate and commodity taxes and even levying new taxes. The government can also reduce unnecessary expenditure on non-development activities in order to curb inflation.

    275. The ‘Slack Season’ in the Indian Economy is

    (1) March-April
    (2) September-December
    (3) January-June
    (4) February-April
    275. (3) July–December corresponds to the main agricultural season in India, while January–June is a relatively ‘slack’ season. Since more than 50% of India’s workforce is engaged in agriculture sector, the slackness of this sector imparts sluggishness to the entire economy.

    276. Which one of the following is not a qualitative control of credit by the Central Bank of a country ?

    (1) Rationing of credit
    (2) Regulation of consumer credit
    (3) Variation of margin requierments.
    (4) Regulation of margin requirements.
    276. (3) Qualitative credit (used by the RBI for selective purposes) are: Margin requirements, Consumer Credit Regulation, RBI Guidelines, Rationing of credit, Moral Suasion and Direct Action. The Quantitative Credit measures which control the total quantity of credit are: Bank Rate policy, Open Market Operations, Cash Reserve Ratio and Statutory Liquidity Ratio.

    277. The market in which loans of money can be obtained is called

    (1) Reserve market
    (2) Institutional market
    (3) Money market
    (4) Exchange market
    277. (3) Money market helps in securing short-term loans to meet working capital requirements through the system of finance bills, commercial papers, etc. it plays crucial role in financing both internal as well as international trade.

    278. If the marginal returan encrease at a diminishing rate, the total return

    (1) increases
    (2) decreases
    (3) remains constant
    (4) becomes income
    278. (2) The question talks about marginal return increasing at diminishing rate which, in reality, is diminishing marginal return. In economics, the law of diminishing returns states: “If increasing amounts of a variable factor are applied to a fixed quantity of other factors per unit of time, the increments in total output will first increase but beyond some point, it begins to decline”. Richard A. Bilas describes the law of diminishing returns as: “If the input of one resource to other resources is held constant, total output will increase but beyond some point, the resulting output increases will become smaller and smaller.” So as the marginal return increases at diminishing rate, the total return will eventually decrease.

    279. The law of Increasing Returns means

    (1) increasing cost
    (2) Decreasing cost
    (3) increasing production
    (4) increasing income
    279. (2) Increasing returns mean lower costs per unit just as diminishing returns mean higher costs. Thus, the law of increasing return signifies that cost per unit of the marginal or additional output falls with the expansion of an industry. As more and more units of the commodity are produced, the cost per unit goes on steadily falling. Besides, the return is more than proportionate.

    280. As per newspapers report what percent of Government stake will be disinvested in Rashtriya Ispat Nigam Ltd. (RINL) ?

    (1) 5% 
    (2) 50%
    (3) 10% 
    (4) 12%
    280. (3) Rashtriya Ispat Nigam Ltd (RINL), on 23 September 2014, filed a draft prospectus with market regulator SEBI for an initial public offering (IPO) through which the government will sell 10 per cent of its stake in the company. The government proposes to raise Rs 43,425 crore through disinvestment in PSUs.

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