Indian Economy GK Quiz-8

Indian Economy GK Quiz-8

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

    141. The Annapurna Scheme was implemented in the year

    (1) 1998 
    (2) 1996
    (3) 1999 
    (4) 2000
    Answer:
    141. (4) The Annapurna Scheme was launched by the Ministry of Rural Development on April 1, 2000 as a 100 per cent Centrally Sponsored Scheme aiming at providing food security to meet the requirement of those destitute senior citizens who though eligible have remained uncovered under the National Old Age Pension Scheme (NOAPS). From 2002-2003, this scheme was transferred to State Plan along with the NSAP. Indigent senior citizens or 65 years of age or above who though eligible for old age pension under the National Old Age Pension Scheme (NOAPS) but were not getting the pension were covered under the Scheme. 10 kgs of foodgrains per person per month was supplied free of cost under the scheme. 

    142. The objective of ‘Jawahar Rojgar Yojana’ is to

    (1) provide employment to youth in rural areas
    (2) create employment opportunities for unemployed persons
    (3) strengthen the rural economic and social structure
    (4) All of the above
    Answer:
    142. (4) 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.

    143. Which of the following sectors contributed more to the savings in India?

    (1) Public sector
    (2) Household sector
    (3) Corporate sector
    (4) Private sector
    Answer:
    143. (2) Household savings contribute 60-80% of India’s gross domestic savings, and have been its most stable and highest component for over six decades. A tenth of total assets is in currency; a similar amount goes to the government through small savings schemes. Since there is no social security in India, life insurance and provident funds tend to be allocated significant amounts from total household savings. Finally, capital market instruments- such as shares, debentures, mutual funds get less than 5% of total investment.

    144. The highest foreign exchanged earners have been the export of

    (1) engineering goods
    (2) gems and jewellery
    (3) minerals
    (4) tea
    Answer:
    144. (2) The gems and jewellery sector is a major foreign exchange earner. At present, gems and jewellery is the second largest foreign exchange earner in the country surpassing even what was earned by the textile and apparel sector. The countries where demand is increasing for Indian jewellery include the UAE, the US, Russia, Singapore, Hong Kong, Latin America and China.

    145. Where is the biggest private sector power project in India located?

    (1) Rajahmundry in Andhra Pardesh
    (2) Neyveli in Tamil Nadu
    (3) Korba in Madhya Pradesh
    (4) Dabhol in Maharashtra
    Answer:
    145. (*) Tata Power, in March 2012, synchronized the second unit of its Maithon power project in
    Jharkhand. With this 525 megawatt (Mw) unit, the company has a total power generation capacity of
    5,297 Mw, making it the country’s largest private sector power generating firm. The Maithon project's
    first unit was commissioned in September 2011. It is a 74:26 joint venture between Tata Power and
    Damodar Valley Corporation.

    146. What is the “Gram Samridhi Yojana” in replacment of

    (1) Indra Awas Yojana
    (2) Jawahar Rozgar Yojana
    (3) Prime Minister’s Employment Scheme.
    (4) I.R.D.P
    Answer:
    146. (2) Jawahar Gram Samridhi Yojana (JGSY) is the restructured, streamlined and comprehensive version of the erstwhile Jawahar Rozgar Yojana (JRY). It was launched on 1st April, 1999. It has been designed to improve the quality of life of the rural poor by providing them additional gainful employment.

    147. The largest share in our imports is from

    (1) North America
    (2) European Community
    (3) OPEC (Organisation of Petroleum Exporting Countries)
    (4) African and Asian Developing Countries
    Answer:
    147. (3) Large quantity of imports of India comes from OPEC countries like Saudi Arabia, Iran, Brazil, etc. Normally, this group accounts for more than 25 per cent of India's imports. As per the Economic Survey 2011-2012, United Arab Emirates and Saudi Arabia were the major exporters to India. India's foreign trade with developing countries has been on the rise. Share of these countries in India's import trade has increased to over 31 per cent.

    148. The largest share of India’s national income originates in the

    (1) Primary sector
    (2) Secondary sector
    (3) Tertiary sector
    (4) Any of the above
    Answer:
    148. (3) National Income is essentially what a country produces in a given year. It takes into account the value of all the goods and services in an economy. The term is interchangeable with Gross Domestic
    Product (GDP) The services industry accounted for over 57% of India's gross domestic product in 2010- 2011 and is by far the largest.

    149. Which of the following is not a part of national income?

    (1) Wages and Salaries
    (2) Profits
    (3) Rent
    (4) Interest on national debt
    Answer:
    149. (4) National Income is the money value of all goods and services produced in a country during a year. The income method of the calculation of National Income adds up all incomes received by the factors of production generated in the economy during a year. This includes wages from employment and selfemployment, profits to firms, interest to lenders of capital and rents to owners of land.

    150. Among the tax revenues of the Union Government, what is the largest source?

    (1) Income Tax
    (2) Corporation Tax
    (3) Central Excise
    (4) Customs Duty
    Answer:
    150. (2) As per the Union Budget 2011-12, direct taxes contributed between 50-60 per cent of tax revenue. Corporation Tax is the single biggest income source for the government. The contributions of excise and customs duties have been gradually declining after 1990-91 reform due to rationalization of tax structures and reduction of levy rates. Excise duties, at present, contribute 17 per cent; Custom duties: 17 per cent, while Service Duty contributes 9 per cent. In the early 1990s, the share of net corporate tax revenues in the total tax revenues (from direct and indirect tax) stood at 12.4 per cent, while that of net excise duty was 32 per cent. However, over the years, economic gains in India Inc have trickled down to the exchequer in the form of higher Corporate Tax collections.

    151. What does the open market operations of the RBI mean?

    (1) Buying and selling shares
    (2) Auctioning of foreign exchange
    (3) Trading in securities
    (4) Transactions in gold
    Answer:
    151. (3) An open market operation (also known as OMO) is an activity by a central bank to buy or sell
    government bonds on the open market. A central bank uses them as the primary means of implementing monetary policy. The usual aim of open market operations is to control the short term interest rate and the supply of base money in an economy, and thus indirectly control the total money supply.

    152. The Reserve Bank of India

    (1) provides direct fiancee to agriculture
    (2) provides finance to primary cooperative societies
    (3) provides finance to state cooperative banks
    (4) does not provide finance to agriculture
    Answer:
    152. (4) The agricultural policy of the Government of India envisages substantial credit flow to increase
    agricultural production and productivity. Banks provide term finance to farmers for development purposes and short term loans for production purposes. Besides, NABARD provides its refinance for the promotion of agriculture in India. 

    153. In which sector of the Indian economy is productivity the highest ?

    (1) Manufacturing
    (2) Transport, Communication and Commerce
    (3) Agriculture
    (4) Other sectors
    Answer:
    153. (1) Lately, the manufacturing industry has been witnessing a positive overall growth across spectrum. This can be said on the basis of the Industrial Outlook survey that was conducted by the Reserve Bank of India (RBI) for 2010 on the Indian manufacturing sector. As per UNIDO’s new report titled ‘Yearbook of Industrial Statistics 2010’, India has emerged as one of the world’s top 10 countries in industrial production, while as per the report ‘2010 Global Manufacturing Competitiveness Index’, by Deloitte Touche Tohmatsu and the US Council on Competitiveness, India has ranked second for its
    manufacturing competence.

    154. To achieve economic self-reliance was the main objective of which Five Year Plan?

    (1) First Five Year Plan
    (2) Second Five Year Plan
    (3) Third Five Year Plan
    (4) Fourth Five Year Plan
    Answer:
    154. (4) The Fourth Five-Year Plan (1969–1974) set before itself the two principal objectives – growth with stability and progress towards self – reliance. It laid great emphasis on agriculture’s growth rate so that a chain reaction can start. The Fifth Five-Year Plan (1974–1979) also focused on self-reliance in
    agricultural production and defense.

    155. The preparation of National Income Estimates is the responsibility of the

    (1) Planning Commission
    (2) National Development Council
    (3) National Sample Survey Organisation
    (4) Central Statistical Organisation
    Answer:
    155. (4) The Central Statistical Organization (CSO) prepares national accounts, compiles and publishes industrial statistics and conducts economic census and surveys. The first official estimates of the national income, prepared by the CSO at constant prices with base year 1948-49, as well as at current prices, were brought out in 1956.

    156. Commercial banking system in India is

    (1) mixed banking
    (2) unit banking
    (3) branch banking
    (4) None of these
    Answer:
    156. (3) Branch banking implies engaging in banking activities such as accepting deposits or making loans at facilities away from a bank's home office. It means a system of banking in which a banking organization works at more than one place. The main place of business is called head office and other places of business are called branches. The head office controls and co-ordinates the work at branches. This system of banking is prevalent throughout the world. In India also, all the major banks have been operating under branch banking system.

    157. The gift edged market in the capital market of India refers to

    (1) long-term private securities
    (2) market dealing in existing securities.
    (3) market for corporate securities
    (4) market for Government securities
    Answer:
    157. (2) The gilt-edged market refers to the market for Government and semi-government securities, backed by the Reserve Bank of India (RBI). Government securities are tradeable debt instruments issued by the Government for meeting its financial requirements. The term gilt-edged means 'of the best quality'. This is because the Government securities do not suffer from risk of default and are highly liquid (as they can be easily sold in the market at their current price). The open market operations of the RBI are also conducted in such securities.

    158. Which of the following yields the largest revenue to the Government of India?

    (1) Sales tax
    (2) Excise duty
    (3) Income tax
    (4) Entertainment tax
    Answer:
    158. (2) Income Tax (corporate and non-corporate combined) contribute about 56 per cent of tax revenue of India. But, income tax, apart from agricultural income is shared between the Union and states. Among the given options, Excise duty is the chief and single largest source of revenue income. The Government of India earns maximum from Union Excise Duty.

    159. The credit control operation in India is performed by

    (1) Rural banks
    (2) Commercial banks
    (3) Reserve Bank of India
    (4) State Bank of India
    Answer:
    159. (3) Credit control is most important function of Reserve Bank of India. By using credit control methods RBI tries to maintain monetary stability. There are two types of methods: (a) Quantitative control to regulate the volume of total credit; and (b) Qualitative Control to regulate the flow of credit.

    160. NABARD is the name of a 

    (1) Commercial bank
    (2) Financial Institution
    (3) Specialised bank to help agriculture
    (4) Non-Banking Financial Institution
    Answer:
    160. (3) The National Bank for Agriculture and Rural Development (NABARD) was established on 12 July 1982 by a special act by the parliament and its main focus was to uplift rural India by increasing the credit flow for elevation of agriculture & rural non farm sector. It has been accredited with "matters
    concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas in India.”

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