Indian Economy Test 40

Result

Indian Economy Test 40

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

Consider the following statements:
1) Reserve Bank of India was nationalised in the year 1955.
2) Reserve Bank of India is a member bank of the Asian Clearing Union.
Which of the statement(s) given above is/are correct?

A
Only 1

B
Only 2

C
Both 1 and 2

D
Neither 1 nor 2

Solution

RBI was nationalised as per RBI Act, 1948 with effect from 1st January, 1949. Asian Clearing Union is an organisation set up to provide a system for clearing payments among the member countries on a multilateral basis. India, Iran, Pakistan, Bhutan, Bangladesh, Maldives, Myanmar, Nepal, Sri Lanka are its members.
Question 2
1 / -0

Supply of money remaining the same when there is an increase in demand for money, there will be _____________.

A
a fall in the level of prices

B
an increase in the rate of the interest

C
a decrease in the rate of interest

D
an increase in the level of income and employment

Solution

Supply remaining the same, increase in demand for money will lead to more options to lend money for the banks. Thus, banks will lend money at greater rate of interest to earn more money as there are more customers for the same amount of money.
Question 3
1 / -0

With reference to Indian economy, consider the following:
1) Bank rate
2) Open market operations
3) Public debt
4) Public revenue
Which of the above is/are component/components of Monetary policy?

A
Only 1

B
2, 3 and 4

C
1 and 2

D
1, 3 and 4
Solution
- Bank rate is the rate at which RBI lends long term to its clients. Open market operations refer to buying and selling of Govt securities by RBI in order to control the money supply in the market. Both are instruments of monetary policy.
- Public debt and public revenue are part of fiscal policy.
Question 4
1 / -0

Consider the following statements:
1) Reserve Bank of India can print and issue currency notes of denominations from two rupee notes to ten-thousand rupee notes.
2) Reserve Bank of India maintains a separate issue department to look after currency issue.
Which of the statement(s) given above is/are correct?

A
Only 1

B
Only 2

C
Both 1 and 2

D
Neither 1 nor 2
Solution
- As per RBI Act, RBI can issue notes of any denomination not exceeding Rs 10000. Government notifies the denomination of notes and the RBI acts accordingly.
- RBI has a separate Issue department whose assets and liabilities are kept separate from the Banking department.
Question 5
1 / -0

Consider the following sectors of the Indian economy with respect to share of employment:
$$1.$$ Agricultural Sector
$$2.$$ Industrial Sector
$$3.$$ Service Sector
Arrange these sectors from the highest to lowest in the term of share of employment and select the correct answer using the codes given below.

A
$$1, 2, 3$$

B
$$1, 3, 2$$

C
$$3, 1, 2$$

D
$$3, 2, 1$$

Solution

Primary sector (agriculture and allied services) of the Indian economy provides employment to around 60% of the population while secondary or the industrial sector provides employment to 16% of the population. Tertiary or the services sector provides employment to about 24% of the population in India.
Question 6
1 / -0

With reference to India, consider the following statements about the cultural services of the economy.
$$1.$$ Indian film industry is the largest in the world.
$$2.$$ High rates of entertainment tax and lack of uniformity in tax structure across states are major factors inhibiting growth of the film industry.
Which of the statements given above is/ are correct?

A
Only $$1$$

B
Only $$2$$

C
Both $$1$$ and $$2$$

D
Neither $$1$$ nor $$2$$
Question 7
1 / -0

Which one of the following states has the highest share of the Services sector in the Gross State Domestic Product in India?

A
Maharashtra

B
Goa

C
Haryana

D
Tamil Nadu

Solution

Among the mentioned states, Maharashtra has the highest share of services sector in the Gross State Domestic Product in India. Among all the Indian states and Union territories, Chandigarh tops the list of entity with highest share of services sector in GSDP, followed by Delhi.
Question 8
1 / -0

Which one of the following economists proposed the LPG model of economic development in India?

A
Dr C Rangarajan

B
Dr Montek Singh Ahluwalia

C
Dr Amartya Sen

D
Dr Manmohan Singh

Solution

Dr Manmohan Singh was the finance minister in the Narasimha Rao government and he proposed the opening of economy for trade. This ushered in an era of liberalisation, privatisation and globalisation. The focus shifted to encouraging exports and imports and maintain optimum current account deficit.
Question 9
1 / -0

With reference to union budget, which of the following is/are covered under non-plan expenditure?
1. Defence expenditure
2. Interest payments
3. Salaries and pensions
4. Subsidies
Select the correct answer using the codes given below.

A
Only 1

B
2 and 3

C
1, 2, 3 and 4

D
None of these

Solution

Non-plan expenditure constitutes the dominant portion of budget expenditure. These expenses are spread across defence, interest payments for debt, subsidies (especially for food and fertilisers) and salaries and pensions of employees in various government services.
Question 10
1 / -0

Which one of the following services of the Services sector in the Indian Economy contributed the highest percentage in the Gross Domestic Product at the Factor Cost in the last ten years?

A
Hotels and restaurants

B
Railways transport

C
Banking and insurance

D
Trade

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Indian Economy Test 40

Result

Indian Economy Test 40

Score

-

Rank

-

SHARING IS CARING

Question 1

Only 1

Only 2

Both 1 and 2

Neither 1 nor 2

Solution

Question 2

a fall in the level of prices

an increase in the rate of the interest

a decrease in the rate of interest

an increase in the level of income and employment

Solution

Question 3

Only 1

2, 3 and 4

1 and 2

1, 3 and 4

Solution

Question 4

Only 1

Only 2

Both 1 and 2

Neither 1 nor 2

Solution

Question 5

$$1, 2, 3$$

$$1, 3, 2$$

$$3, 1, 2$$

$$3, 2, 1$$

Solution

Question 6

Only $$1$$

Only $$2$$

Both $$1$$ and $$2$$

Neither $$1$$ nor $$2$$

Question 7

Maharashtra

Goa

Haryana

Tamil Nadu

Solution

Question 8

Dr C Rangarajan

Dr Montek Singh Ahluwalia

Dr Amartya Sen

Dr Manmohan Singh

Solution

Question 9

Only 1

2 and 3

1, 2, 3 and 4

None of these

Solution

Question 10

Hotels and restaurants

Railways transport

Banking and insurance

Trade

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.