Indian Economy GK Quiz-6

Indian Economy GK Quiz-6

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

    101. In the budget figures of the Government of India, interest payments, subsidies, pensions, social services and the like are parts of the

    (1) Plan Expenditure
    (2) State Government Expenditure
    (3) Public Debt in the form of Capital Expenditure
    (4) Non-plan Expenditure
    Answer:
    101. (4) There are two components of expenditure - plan and non-plan. Of these, plan expenditures are
    estimated after discussions between each of the ministries concerned and the Planning Commission.
    Non-plan revenue expenditure is accounted for by interest payments, subsidies (mainly on food and
    fertilisers), wage and salary payments to government employees, grants to States and Union Territories
    governments, pensions, police, economic services in various sectors, other general services such as tax
    collection, social services, and grants to foreign governments.

    102. Who coined the term ‘Hindu rate of growth’ for Indian economy?

    (1) A.K. Sen
    (2) Kirit S. Parikh
    (3) Raj Krishna
    (4) Montek Singh Ahluwalia
    Answer:
    102. (3) The Hindu rate of growth refers to the low annual growth rate of the socialist economy of India before 1991, which stagnated around 3.5% from 1950s to 1980s, while per capita income growth averaged 1.3%. The term was coined by Indian economist Raj Krishnaa. It suggests that the low growth rate of India, a country with a high Hindu population was in a sharp contrast to high growth rates in other Asian countries, especially the East Asian Tigers, which were also newly independent. This meaning of the term, popularised by Robert McNamara, was used disparagingly and has connotations that refer to the supposed Hindu outlook of fatalism and contentedness.

    103. Which of the following Indian banks became the first to touch a market capitalisation of Rs. 1,00,000 crore in India ?

    (1) ICICI 
    (2) HDFC
    (3) SBI 
    (4) PNB
    Answer:
    103. (3) The State Bank of India, in September 2007, became the first public sector bank to touch a market capitalisation of Rs 1,00,000 crore following a surge of over three per cent in its share price. The bank’s shares closed at Rs 1950.70 per share on the BSE, giving it a market cap of about Rs 1,02,665.12 crore. Earlier in the day, the shares rose to a life-time high of Rs 1,969.80 crore before ending with the gain of 3.43 per cent over the previous close. SBI is the only second bank in India to have attained a market capitalisation of more than Rs 1,00,000 crore. Besides, SBI, ICICI Bank has also achieved this milestone and its market cap. 

    104. The Commission in India dealing with minimum support price, procurement price, etc in  connection with agricultural goods is the

    (1) Planning Commission
    (2) Agricultural Costs and Prices Commission
    (3) Agricultural Price Commission
    (4) National Marketing Commission
    Answer:
    104. (1) The Commission for Agricultural Costs and Prices (CACP), the government’s nodal agency to recommend the minimum price for farm commodities. The Agricultural Prices Commission was set up in January, 1965 to advise the Government on price policy of major agricultural commodities with a view to evolving a balance and integrated price structure in the perspective of the overall needs of the economy and with due regard to the interests of the producer and the consumer. Since March 1985, the Commission has been known as Commission for Agricultural Costs and Prices.

    105. Which one of the following is not correct ?

    (1) First Five Year Plan–1951–56
    (2) Second Five Year Plan1956– 61
    (3) Third Five Year Plan–1961– 66
    (4) Fourth Five Year Plan–1966–71
    Answer:
    105. (4) Fourth Five-Year Plan was from 1969 to 1974. At this time Indira Gandhi was the Prime Minister. The Indira Gandhi government nationalised 14 major Indian banks and the Green Revolution in India advanced agriculture.

    106. In the post-independence period, economic reforms were first introduced in India under

    (1) P.V. Narasimha Rao Government (1990)
    (2) Indira Gandhi Government (1980)
    (3) Rajiv Gandhi Government (1985)
    (4) Janata Party Government (1977)
    Answer:
    106. (1)The economic liberali-sation in India refers to ongoing economic reforms in India that started on 24 July, 1991. In 1991, the government of P. V. Narasimha Rao and his finance minister Manmohan
    Singh (currently the Prime Minister of India) started breakthrough reforms which included opening for
    international trade and investment, deregulation, initiation of privatization, tax reforms, and inflation controlling measures.

    107. The Report of Vijay Kelkar Committee relates to

    (1) Trade Reforms
    (2) Centre-State Financial Relations
    (3) Disinvestment in Public Sector Enterprises
    (4) Tax Reforms
    Answer:
    107. (4) Vijay Kelkar, former finance secretary and advisor to the finance minister almost a decade ago, was mandated by the finance minister to give a report outlining a roadmap for fiscal consolidation. Kelkar, who headed the 13th Finance Commission, was told to present a fiscal road map for the medium term.

    108. ICI is the name associated with

    (1) a MNC which manu-factures chemicals
    (2) Indian Cement Industry
    (3) Chamber of Commerce and Industry
    (4) a private sector bank
    Answer:
    108. (1) Imperial Chemical Industries (ICI) was a British chemical company, taken over by a number of
    chemical companies, including Huntsman Corporation, a United States-based company, and
    AkzoNobel, a Dutch conglomerate, two of the largest chemical producers in the world. In its heyday, ICI was the largest manu-facturing company in the British Empire, and commonly regarded as a “bellwether of the British economy. It produced paints and speciality products (including ingredients for foods, specialty polymers, electronic materials, fragrances and flavours).

    109. With the inclusion of Shipping Corporation of India recently in the list of Nav Ratna PSEs, their number now stands at

    (1) 15 
    (2) 16
    (3) 17 
    (4) 18
    Answer:
    109. (2) Navratna was the title given originally to nine Public Sector Enterprises (PSEs) identified by the Government of India in 1997 as “public sector companies that have comparative advantages”, giving them greater autonomy to compete in the global market so as to “support [them] in their drive to
    become global giants”. The number of PSEs having Navratna status has been raised to 16, the most
    recent addition being Oil India Limited.

    110. ‘Nextzone’ an information technology SEZ is being establihsed at

    (1) Panki in Uttar Pradesh
    (2) Panvel in Maharashtra
    (3) Bangalore in Karnataka
    (4) Secunderabad in Andhra Pradesh
    Answer:
    110. (2) Mumbai-based Marathon Realty has unveiled a Rs 900-crore plan for an information technology Special Economic Zone (SEZ), named Nextzone, at Panvel near Mumbai. The investment, to be made in three phases over six years, will include cost of land and construction and infrastructure development. Work begins from September 2008, and the project will be funded through a mix of debt and equity in a 2:1 ratio. The proposed SEZ with road, rail and maybe even air connectivity will provide IT companies with a cheaper option to set up development centers near Mumbai. A Special Purpose Vehicle (SPV) of Marathon Realty will implement the SEZ project.

    111. When was the Jawahar Rozgar Yojna launched ?

    (1) 1985 
    (2) 1987
    (3) 1989 
    (4) 1991
    Answer:
    111. (3) By merging the two erstwhile wage employment programme - National Rural Employment programme (NREP) and Rural Landless Employment Guarantee Programme (RLEGP) the Jawahar Rozgar Yojana (JRY) was started with effect from April, 1, 1989 on 80:20 cost sharing basis between the centre and the States. The main objective of the Yojana was additional gainful employment for the unemployed and under-employed persons in rural areas. The other objective was the creation of sustained employment by strengthening rural economic infrastructure and assets in favour of rural poor for their direct and continuing benefits.

    112. Reserve Bank of India was nationalised in

    (1) 1947 
    (2) 1948
    (3) 1949 
    (4) 1951
    Answer:
    112. (3) The Reserve Bank of India (RBI) is India’s central banking institution, which controls the monetary policy of the Indian rupee. It was established on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve Bank of India Act, 1934. Following India’s independence in 1947, the RBI was nationalised in the year 1949. Though originally set up as a shareholders’ bank, the RBI has been fully owned by the Government of India since its nationalization in 1949.

    113. Which is not the objective of Public Procurement and Distribution system followed by Indian Government ?

    (1) Maintain price stability through creation of buffer stocks
    (2) Protect the interests of both consumers and poor farmers 
    (3) Control the production of food grains
    (4) Reduce personal and regional inequality in the distribution
    Answer:
    113. (3) Since 1951 public distribution of food grains has been retained as deliberate social policy by India with the objectives of: Providing food grains and other essential items to vulnerable sections of the society at reasonable (subsidized) prices; put an indirect check on the open market prices of various items and to attempt socialization in the matter of distribution of essential commodities. PDS is an
    important constituent of the strategy for poverty eradication and is intended to serve as a safety net
    for the poor. Controlling the production of food grains is not the avowed aim of this system. It is a welfare measure, not some economic regulatory system.

    114. Where is the Indian Institute of Foreign Trade Located ?

    (1) New Delhi
    (2) Hyderabad
    (3) Mumbai
    (4) Ahmedabad
    Answer:
    114. (1) The Indian Institute of Foreign Trade (IIFT) is an autonomous public business school established in 1963 by the government of India to help professionalize the country’s foreign trade
    management and increase exports by developing human resources, generating, analyzing and
    disseminating data. It is located in New Delhi, India.

    115. The Centre for Agricultural Marketing is located at

    (1) Jaipur 
    (2) New Delhi
    (3) Nagpur 
    (4) Hyderabad
    Answer:
    115. (1) The Chaudhary Charan Singh (CCS) National Institute of Agricultural Marketing (NIAM) is a premier National level Institute set up by the Government of India in August 1988 to offer specialized Training, Research, Consultancy and Education in Agricultural Marketing. NIAM is an autonomous body under the aegis of the Ministry of Agriculture, Government of India. It was set up as a Registered Society to cater to the needs of Agricultural Marketing personnel in India as well as from South East Asian countries. The Union Minister for Agriculture is the President of the General body of NIAM and Secretary, Department of Agriculture and Cooperation is the Chairman of the Executive Committee. The Campus of the National Institute of Agricultural Marketing is situated m a 32 acre plot of land on the outskirts of Jaipur City.

    116. Per capita income is obtained by dividing National Income by

    (1) Total population of the country
    (2) Total working population
    (3) Area of the country
    (4) Volume of capital used
    Answer:
    116. (1) Per capita income or average income or income per person is the mean income within an economic aggregate, such as a country or city. It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross National Income) and dividing it by the total population.

    117. Token privatisation or deficit privatisation of public sector units occur when the government sells

    (1) 5% of shares
    (2) 10% of shares
    (3) 15 % of shares
    (4) 20% of shares
    Answer:
    117. (1) There are different forms of privatization. When the government disinvests its shares to the extent of 5 to 10 per cent to meet the deficit in the budget, this is termed as deficit privatization. This is also referred to as token privatization. A typical tactic adopted towards privatization is the incremental
    method where shares are sold in steps. On the other hand token privatization is adopted in circumstances of acute budget deficit wherein a lump of shares is sold off.

    118. The Narasimham Committee (1991) on financial reforms proposed for establishment of a

    (1) Four tier hierarchy of the Banking structure
    (2) Three tier hierarchy of the Banking structure
    (3) Two tier hierarchy of the Banking structure
    (4) Unified control by the apex institutions
    Answer:
    118. (1) Two expert Committees were set up in 1990s under the chairmanship of M. Narasimhan (an exRBI (Reserve Bank of India) governor). The first Narasimhan Committee (Committee on the Financial System - CFS) was appointed by Manmohan Singh as India’s Finance Minister on 14 August 1991, and the second one (Committee on Banking Sector Reforms) was appointed by P. Chidambaram as Finance Minister in December 1997. The 1991 committee submitted its report to the Finance Minister in November 1991 which was placed on the table of Parliament on December 17, 1991. It recommended the introduction of a four tier banking system in the country: I tier: 3 or 4 International Banks; II tier: 8 to 10 National Banks; III tier Regional Banks; and IV tier: Rural Banks.

    119. The Planning Commission of India was constituted in the year

    (1) 1942 
    (2) 1947
    (3) 1950 
    (4) 1955
    Answer:
    119. (3) The Planning Commission is an institution in the Government of India, which formulates India’s FiveYear Plans, among other functions. It was set up on 15 March 1950, with Prime Minister Jawaharlal Nehru as the chairman. Planning Commission though is a non statutory as well extra constitutional body, i.e. has been brought by an executive order. The Planning Commission does not derive its creation from either the Constitution or statute, but is an arm of the Central/Union Government.

    120. Which plan gave emphasis on removal of poverty for the first time ?

    (1) Fourth 
    (2) Fifth
    (3) Sixth 
    (4) Seventh
    Answer:
    120. (2) The Fifth Five-Year Plan (1974–1979) laid stress on employment, poverty alleviation, and justice. The plan also focused on self-reliance in agricultural production and defence.

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