Indian Economy GK Quiz-5

Indian Economy GK Quiz-5

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

    81. Which of the following sets belong to Central tax ?

    (1) Excise duty, Sales tax and Customs duty
    (2) Excise duty, Customs duty and Income tax
    (3) Income tax, Customs duty and House tax
    (4) Customs duty, Entertainment tax and Income tax
    Answer:
    81. (2) Some of the taxes of the central government are: Taxes on income other than agricultural income; Duties of customs including export duties; Duties of excise on tobacco and other goods manufactured or produced in India except (i) alcoholic liquor for human consumption, and (ii) opium, Indian hemp and other narcotic drugs and narcotics, but including medicinal and toilet preparations containing alcohol or any substance; Corporation Tax; Taxes on capital value of assets, exclusive of agricultural land, of individuals and companies, taxes on capital of companies; Estate duty in respect of property other than agricultural land; etc. Central tax means taxes that are levied and collected by the central government.

    82. Per Capita income is maximum in which of the following states in India?

    (1) Himachal Pradesh
    (2) Punjab
    (3) Gujarat
    (4) Goa
    Answer:
    82. (4) Generally, per capita income is the indicator of progress of any country. According to World
    Development Report 2009, the per capita income of India was $950. Goa has the highest per capita
    income in India. Goa leads the country with per capita income of Rs. 1,92,652. Delhi comes in second after Goa with PCI of Rs. 1,75,812 followed by Chandigarh (1,28,634 – 2011) & Haryana (1,09,227).
    Note : According to recent data given by Ministry of Statistics and Programme Implementation, Goa has highest NSDP per capita among 33 Indian states and union territories. NSDP per capita of Goa is estimated at 224,138 Indian rupees in 2013-14 at current prices. Ranking of Delhi is two with per capita income around of 212,219 INR. Sikkim is at third, Chandigarh is at forth and Puducherry is fifth richest economy of India. Bihar, Uttar Pradesh, Manipur, Assam, and Jharkhand is top 5 poorest state in terms of nsdp per capita. These five states have net state domestic product per capita below Rs. 50,000.

    83. What is the name of the electronic communication network of the Reserve Bank of India ?

    (1) BOLT 
    (2) RBISAT
    (3) RBINET 
    (4) RBIDOT
    Answer:
    83. (3) RBINet is a communica-tion software, developed in ‘C’ and available for both DOS and UNIX machines. It allows free format messaging and file transfer on the existing BANKNET infrastructure with the help of UNIX servers installed at the 4 NCCs. Each RBINet user interacts with the local UNIX server through PADs connected to the X.25 switch. The UNIX servers in turn communicate with each other using TCP/IP over the X.25 protocol. The software allows free format messaging without any restrictions on the length of the message, enables file transfer of both ASCII-text and Binary (spreadsheets, data bases, programs etc.) files, facilitates dial-up access, and has security features such as end-to-end encryption, audit trail, etc.

    84. In India the largest public undertaking is —

    (1) Air India
    (2) Indian Railways
    (3) IOC
    (4) LIC
    Answer:
    84. (3) Indian Oil Corporation Limited is the largest commercial undertaking and India’s No.1 Company in Fortune the magazine’s prestigious listing of the world’s 500 largest Corporations, ranked 98 for the year 2011 based on fiscal 2010 performance.

    85. Punjab National Bank has been honoured with the Golden Peacock Award 2002 for excellence in—

    (1) agricultural finance
    (2) rural industrialisation
    (3) housing development
    (4) corporate excellence
    Answer:
    85. (4) Punjab National Bank, National Thermal Power Corporation Ltd, New Delhi, and Bharat Petroleum Corporation Ltd. were awarded with the Golden Peacock Award 2002 for Excellence in Corporate Governance (GPAECG). Golden Peacock Awards, instituted by Institute of Directors in 1992, are now regarded as holygrail of Corporate Excellence worldwide. All institutions whether public, private, non-profit, government, business, manufacturing and service sector are eligible to apply.

    86. Which of the following is not in the infrastructure sector?

    (1) Power generation
    (2) Construction of roads
    (3) Food production
    (4) Expansion of air ports
    Answer:
    86. (3) Food production or agriculture is a primary activity of economy making direct use of natural resources. This includes agriculture, forestry and fishing, mining, and extraction of oil and gas. This is contrasted with the secondary sector, producing manufactured and other processed goods, and the tertiary sector, producing services. Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function. The term typically refers to the technical structures that support a society, such as roads, bridges, water supply, sewers, electrical grids, telecommunications, and so forth.

    87. In the budget figures of the Government of India, fiscal deficit is 

    (1) total expenditure – total receipts
    (2) revenue expenditure – revenue receipts
    (3) capital expenditure – capital receipts + market borrowings
    (4) sum of budget deficit and Government’s market borrowings and liabilities
    Answer:
    87. (4) The fiscal deficit is the difference between the government’s total expenditure and its total receipts (excluding borrowing). The elements of the fiscal deficit are (a) the revenue deficit, which is the difference between the government’s current (or revenue) expenditure and total current receipts (that is, excluding borrowing) and (b) capital expenditure. The fiscal deficit can be financed by borrowing from the Reserve Bank of India (which is also called deficit financing or money creation) and market borrowing (from the money market that is mainly from banks). 

    88. Which State has the lowest per capita income in India ?

    (1) Bihar 
    (2) Orissa
    (3) Rajasthan 
    (4) Gujarat
    Answer:
    88. (1) According to the latest figures released by Government – Goa leads the country with per capita
    income of Rs. 1,92,652/-, while Bihar has the lowest with a per capita income of only Rs. 24,681/-. An
    average Goan earns 6 times more than an average Bihari.

    89. Which authority decides about the States’ share in central taxes?

    (1) Finance Commission
    (2) Planning Commission
    (3) Election Commission
    (4) Finance Ministry
    Answer:
    89. (1) The Finance Commission of India came into existence in 1951. It was established under Article
    280 of the Indian Constitution by the President of India. It was formed to define the financial relations
    between the centre and the state. The Constitution of India has made several provisions to bridge the
    gap of finances between the Centre and the States. These include various articles in the constitution like
    Article 268, which facilitates levy of duties by the Centre but equips the states to collect and retain the
    same. Similarly, there are Articles 269, 270, 275, 282 and 293 all of which specify ways and means of
    sharing resources between Union and States. Apart from the above- mentioned provisions, The Indian
    Constitution provides an institutional framework to facilitate Centre- State Transfers. This body is the
    Finance Commission.

    90. In India, one-rupee coins and notes and subsidiary coins are issued by

    (1) the Reserve Bank of India
    (2) the Central Govern-ment
    (3) the State Bank of India
    (4) the Unit Trust of India
    Answer:
    90. (2) Under Section 22 of the Reserve Bank of India Act, the Bank has the sole right to issue bank notes of all denominations. The distribution of one rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as agent of the Government. The one rupee note is issued by the Ministry of Finance and bears the signature of the secretary. The responsibility for coinage vests with Government of India on the basis of the Coinage Act, 1906 as amended from time to time. The designing and minting of coins in various denominations is also attended to by the Government of India.

    91. The tenth plan aims to reduce the poverty ratio by 2007 to

    (1) 10% 
    (2) 30%
    (3) 20% 
    (4) 5%
    Answer:
    91. (4) In approving the Approach Paper to the Tenth Plan, the NDC adopted a set of quantifiable and
    monitorable targets which would enable to focus on accelerating growth, not only as an end in itself but
    also as the means to achieve success in other dimensions such as poverty reduction, employment
    creation and improvement in certain critical indicators of the quality of life. These include health,
    environment and education indicator. The Tenth FiveYear Plan (2002–2007) aimed at the reduction of
    poverty ratio by 5 percentage points by 2007.

    92. The total number of nationalised banks in India is

    (1) 14 
    (2) 19
    (3) 21 
    (4) 30
    Answer:
    92. (3) The Government of India issued an ordinance (‘Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969’)) and nationalised the 14 largest commercial banks with effect from
    the midnight of July 19, 1969. These banks contained 85 percent of bank deposits in the country. A second dose of nationalization of 6 more commercial banks followed in 1980. As of now, there are 26 Nationalized Banks in India.
    Note : As of 2017, There are 21 Nationalized Bank in India. These are Allahabad Bank , Andhra Bank, Bank of India, Bank of Baroda, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank, Indian Bank, Indian Overseas Bank, IDBI Bank, Oriental Bank of Commerce, Punjab & Sindh Bank, Punjab National Bank, State Bank of India, Syndicate Bank, UCO Bank, Union Bank of India, United Bank of India, Vijaya Bank.

    93. In which plan was self-reliance first emphasised

    (1) Second Plan 
    (2) Third Plan
    (3) Fourth Plan 
    (4) Fifth Plan
    Answer:
    93. (4) In the Fifth Five-Year Plan (1974–1979), stress was by laid on employment, poverty alleviation, and justice. The plan also focused on self-reliance in agricultural production and defence. For achieving
    economic self reliance, the Plan aimed at elimination of special forms of external assistance,particularly
    food and fertilizer imports.

    94. The famous slogan “GARIBI HATAO” (Remove Poverty) was launched during the

    (1) First Five Year Plan (1951-56)
    (2) Third Five Year Plan (1961-66)
    (3) Fourth Five Year Plan (1964-66)
    (4) Fifth Five Year Plan (1974-79)
    Answer:
    94. (4) Garibi Hatao (Meaning “Abolish Poverty” in Hindi) was the theme and slogan of Indira Gandhi’s 1971 election bid. The slogan and the proposed anti-poverty programs that came with it were designed to give Gandhi an independent national support, based on rural and urban poor. The fifth plan prepared and launched by D.D. Dhar proposed to achieve two main objectives viz, ‘removal of poverty’ (Garibi Hatao) and ‘attainment of self reliance’, through promotion of high rate of growth, better distribution of income and a very significant growth in the domestic rate of savings. 

    95. Which of the following has the sole right of issuing currency (except one rupee coins and notes) in India ?

    (1) The Government of India
    (2) The Planning Commi-ssion
    (3) The State Bank of India
    (4) The Reserve Bank of India
    Answer:
    95. (4) The Reserve Bank of India has the sole right or authority or monopoly of issuing currency notes
    except one rupee note and coins of smaller denomination. These currency notes are legal tender issued by the RBI. Currently it is in denominations of Rs. 2, 5, 10, 20, 50, 100, 500, and 1,000. The RBI has powers not only to issue and withdraw but even to exchange these currency notes for other denominations. It issues these notes against the security of gold bullion, foreign securities, rupee coins,
    exchange bills and promissory notes and government of India bonds.

    96. In the budget figures of the Government of India the difference between total expenditure and total receipts is called

    (1) Fiscal deficit
    (2) Budget deficit
    (3) Revenue deficit
    (4) Current deficit
    Answer:
    96. (1) Fiscal deficit refers to a situation when a government’s total expenditures exceed the revenue
    that it generates (excluding money from borrowings). Deficit differs from debt, which is an accumulation of yearly deficits. A fiscal deficit is regarded by some as a positive economic event. For example, economist John Maynard Keynes believed that deficits help countries climb out of economic recession. On the other hand, fiscal conservatives feel that governments should avoid deficits in favor of a balanced budget policy.

    97. India’s biggest nationalised enterprise today

    (1) the Indian Railways
    (2) the Indian Commercial Banking System
    (3) the Indian Power Sector
    (4) the Indian Telecommu-nication System
    Answer:
    97. (1) Indian Railways is an Indian state-owned enterprise, owned and operated by the government
    of India through the Ministry of Railways. Railways were first introduced to India in 1853 from Bombay to Thane. In 1951 the systems were nationalized as one unit, the Indian Railways, becoming one of the largest networks in the world. IR operates both long distance and suburban rail systems on a multi-gauge network of broad, metre and narrow gauges.

    98. The official agency responsible for estimating National Income in India is

    (1) Indian Statistical Institute
    (2) Reserve Bank of India
    (3) Central Statistical Organisation
    (4) National Council for Applied Economics and Research
    Answer:
    98. (3) At the national level, the Central Statistical Organisation (CSO) is the apex statistical body with
    the primary objective of providing technical leadership in building up the statistical system in the country. It has been charged with the responsibility of coordinating activities in the country, laying down and maintenance of standards relating to concepts, definitions, methodologies, procedures etc, providing consultancy and advisory services to other statistical agencies, computing of national income, keeping liaison with the international statistical agencies, preparing and publishing national accounts statistics, processing, analysing and publication of industrial statistics, conduct of economic censuses, etc.

    99. The highest body which approves the Five Year Plan in India is the

    (1) Planning Commission
    (2) National Development Council
    (3) Finance Ministry
    (4) Union Cabinet
    Answer:
    99. (2) The National Development Council (NDC) or the Rashtriya Vikas Parishad is the apex body for decision making and deliberations on development matters in India, presided over by the Prime Minister. It was set up on August 6, 1952 to strengthen and mobilize the effort and resources of the nation in support of the Plan, to promote common economic policies in all vital spheres, and to ensure the balanced and rapid development of all parts of the country. The Council comprises the Prime Minister, the Union Cabinet Ministers, Chief Ministers of all States or their substitutes, representatives of the union territories and the members of the Commissions. It is an extraconstitutional and non-statutory body. Its status is advisory to planning commission but not binding.

    100. RBI does not transact the business of which State Government ?

    (1) Nagaland
    (2) Jammu and Kashmir
    (3) Punjab
    (4) Assam
    Answer:
    100. (2) Sate Government transactions are carried out by RBI in terms of the agreement entered into with the State Governments in terms of section 21 A of the RBI Act. As of now, such agreements exist between RBI and all the State Governments except with the Government of Jammu and Kashmir.

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