Indian Economy Test 87

Result

Indian Economy Test 87

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Weekly Quiz Competition

Question 1
1 / -0

Consider the following:
1. Swarnajayanti Gram Swarozgar Yojana
2. Pradhan Mantri Gram Sadak Yojana
3. Sampoorna Grameen Rozgar Yojana
4. Indira Awas Yojana
Select the correct chronological order of the above yojanas?

A
2-3-4-1

B
4-1-2-3

C
1-2-3-4

D
4-3-1-2

Solution

Indira Awas Yojana was shelved out of the Jawahar Rozgar Yojana in 1997-98, while Swarnjayanti Gram Swarozgar Yojana commenced in 1999 to provide consistent income to the poorest of poor in rural areas. Pradhan Mantri Gram Sadak Yojana intended to connect all villages to good all-weather roads and was launched in 2000. In 2001, Atal Bihari Vajpayee launched the Sampoorna Grameen Rozgar Yojana so that the poor in rural areas can gain from employment income.
Question 2
1 / -0

Which of the following is/are the selective credit control measures of RBI?
1) Cash Reserve Ratio
2) Statutory Liquidity Ratio
3) Margin requirements
4) Moral suasion
Choose the correct answer using the codes given below.

A
1 and 2

B
3 and 4

C
Only 4

D
All of these
Solution
- There are two different types of credit control measures used by RBI : Quantitative and Qualitative.
- Quantitative measures are used to regulate the volume of credit and these include Open Market Operations, SLR, CRR etc.
Qualitative or selective credit control measures are used to regulate the flow of credit. These include Margin Requirements, Consumer Credit Regulation, Rationing of credit, Moral Suasion etc.
Question 3
1 / -0

Which one of the following indicators is not used in the determination of Gender Development Index (GDI) in the Human Development Report (HDR)?

A
Life expectancy of female

B
Female adult literacy and gross enrollment

C
Female political empowerment

D
Female per capita income

Solution

Gender Development Index measures the gender gap based on disparities between male and female, and it considers three factors of human development: long and healthy life, knowledge and standard of living. Longevity is measured by life expectancy, while knowledge is calibrated on female literacy and schooling or enrollment. To quantify standard of living, GDI measures the female per capita income against the male to calculate the Gender Development Index (GDI).
Question 4
1 / -0

In 1980s, Indian economy was in the process of the Hindu rate of growth. Which one of the following is associated with the Hindu rate of growth?

A
Growth rate of Naxalism

B
Growth rate of foodgrain production

C
Growth rate of Gross Domestic Product

D
Population growth rate

Solution

India's GDP growth before liberalization (1950s - 1980s) had settled for a meager 3.5% and this was called the Hindu rate of growth by Professor Rajkrishna, an Indian economist then. It was the time when other economies were ambitious for achieving higher growth rates while India was content with a 3.5%.
Question 5
1 / -0

The Second Five Year Plan that called for the establishment of Socialist pattern of society was commonly referred to as the ___________.

A
Harrod-Domar Plan

B
Mahalanobis Plan

C
Nehru Plan

D
People's Plan

Solution

The Feldman–Mahalanobis model is a Neo-Marxian model of economic development. It was created independently by Soviet economist Grigory Feldman in 1928, and Indian statistician Prasanta Chandra Mahalanobis in 1953. The model suggested that there should be an emphasis on the heavy industries, which can lead the Indian Economy to a long-term higher growth path. The Second Five Year Plan and Industrial policy Resolution 1956 were based on Mahalanobis Plan.
Question 6
1 / -0

MODVAT is different from VAT in the sense that:
1. Under MODVAT, tax is levied only on value addition while under VAT, excise Is imposed on final value and then rebate is given on inputs.
2. MODVAT is only at the production stage white VAT extends both to production and distribution stage.
3. Under MODVAT, excise is levied on final value and then rebate is given on inputs while under VAT, tax is levied only on value addition.
4. MODVAT implies rationalisation of excise duty only while VAT implies rationalisation of excise sales and turnover taxes etc also.
Which of the statements given above are correct?

A
2, 3 and 4

B
1, 2 and 3

C
2 and 3

D
3 and 4
Solution
VAT is an indirect tax levied at different stages of trade by the government. The primary purpose of VAT is to ensure that there is no duplication or repetition of tax, thereby ensuring that no single entity is overburdened by it. VAT is typically collected by the state government in which the final transaction takes place, putting the onus on respective state commercial tax departments to ensure that it is collected.
CENVAT is an adaptation of VAT, which came into force in the country in 1986 in the form of MODVAT (Modified Value Added Tax). This MODVAT was converted into CENVAT in the early 2000’s with no major changes in its implementation or execution.
Today, MODVAT isn’t used as a term and CENVAT is the tax charged by the Central government on products or services at different levels of manufacture. Thus, MODVAT is only at the production stage white VAT extends both to production and distribution stage.
Under MODVAT, excise is levied on final value and then rebate is given on inputs while under VAT, tax is levied only on value addition.
MODVAT implies rationalisation of excise duty only while VAT implies rationalisation of excise sales and turnover taxes, etc. Thus statements 2, 3, 4 are correct.
Question 7
1 / -0

GDI measures differences between male and female achievements in 3 basic dimensions of human development. Choose the correct statement regarding this:
(1) Life expectancy at birth is adjusted for the average of 5 years biological advantage that women have over men.
(2) It provides insights into gender disparity.
(3) It is calculated in entirely different manner as compared to HDI.

A
Only 1

B
Only 2

C
1 and 2

D
All of the above
Question 8
1 / -0

Which of the following measures would result in an increase in the money supply in the economy ?
1) Purchase of government securities from the public by the Central Bank.
2) Deposit of currency in commercial banks by the public.
3) Borrowing by the government from the Central Bank.
4) Sale of government securities to the public by the Central Bank.
Select the correct answer using the codes given below

A
Only 1

B
2 and 4

C
1 and 3

D
2 , 3 and 4

Solution

Money supply increases when money flows out of the RBI. Purchase of Govt securities from the public by the Central bank leads to transfer of money to the public thereby leading to increase in money supply in the economy. Similarly, borrowing by the government from Central bank leads to increased money supply.

However, deposit of currency in commercial banks by public doesn't lead to increase in money supply as the money just gets transferred from public to commercial banks.
Question 9
1 / -0

The RBI was established on 1st April, 1935 on the recommendation of ___________.

A
Khandwal Commission

B
Narasimham Commission

C
Nachiket Mor Commission

D
Hilton Young Commission
Solution
RBI was established in 1935 on the recommendations of Hilton-Young Commission which had recommended its creation in 1926. There were two chief reasons behind this recommendation:
To separate the control of currency and treasury from the Govt
To augment banking facilities across the country,
Question 10
1 / -0

In sociology cultural beliefs that serve to legitimate key interests and hence justify social stratification is called

A
Caste

B
Symbol

C
Ideology

D
Race

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Re-Attempt Weekly Quiz Competition

Indian Economy Test 87

Result

Indian Economy Test 87

Score

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Rank

-

SHARING IS CARING

Question 1

2-3-4-1

4-1-2-3

1-2-3-4

4-3-1-2

Solution

Question 2

1 and 2

3 and 4

Only 4

All of these

Solution

Question 3

Life expectancy of female

Female adult literacy and gross enrollment

Female political empowerment

Female per capita income

Solution

Question 4

Growth rate of Naxalism

Growth rate of foodgrain production

Growth rate of Gross Domestic Product

Population growth rate

Solution

Question 5

Harrod-Domar Plan

Mahalanobis Plan

Nehru Plan

People's Plan

Solution

Question 6

2, 3 and 4

1, 2 and 3

2 and 3

3 and 4

Solution

Question 7

Only 1

Only 2

1 and 2

All of the above

Question 8

Only 1

2 and 4

1 and 3

2 , 3 and 4

Solution

Question 9

Khandwal Commission

Narasimham Commission

Nachiket Mor Commission

Hilton Young Commission

Solution

Question 10

Caste

Symbol

Ideology

Race

User

Question Analysis

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