Chapter Wise Indian Economy MCQ’s With Explanation

Today’s Topic:Schemes and Taxes-2

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Today’s Topic:Schemes and Taxes-2


Q1.Consider the following statement regarding take out financing:

  1. It is for infrastructure projects which have long gestation period.
  2. It helps to prevent any possible asset- liability mismatch.

Which of the above statements are correct?

a) Only 1       b) Only 1 and 2        c) Only 2                      d) Neither 1 nor 2

Ans:     B

Explanation:     Take out financing is a method of providing finance for longer duration projects of about 15 years by banks sanctioning medium term loans for 5-7 years. It is given out of books of the financing bank within prefixed period by another institution, thus preventing any possible asset liability mismatch


Q2.Which among the following are the wholly/partly owned subsidiaries of the reserve bank of India (RBI) ?

  1. National Housing Bank (NHB)
  2. National Bank for Agriculture and Rural development (NABARD)
  3. Deposit Insurance and credit Guarantee Corporation (DICGC)

a) 1 and 3       b) 2 and 3       c) 1 and 2         d) 1, 2 and 3

Ans:     D

Explanation:     The reserve Bank of India was established on April 1, 1935 in accordance with the provision of the reserve Bank of India Act, 1934. NABARD is entrusted with providing refinance to lending institution in rural areas.


Q3.The Concept of Universal Banking was implemented in India on the recommendations of :

a) Sajid Khan Committee b) Adid Hussain Committee

c) Ramdhar Committee d) R. H. Khan Committee

Ans:     D

Explanation:     Universal banking means allowing FCs and banks to undertake all kids of activity associated with that, subject to compliance of statutory and other requirements prescribed by RBI Govt and related legal Acts. RBI guidelines on Universal Banking as per RBI guidelines of April, 2001.


Q4.Which of the following agricultural commodity of India gives largest in terms of Export value:

a) Basmati Rice       b) Tea

c) Spices                  d) None of these

Ans:     A

Explanation:     Basmati is a variety of long grain rice which is traditionally from India and Pakistan. The areas of basmati rice production in India are in the states of Haryana, Jammu and Kashmir, Himachal Pradesh, Punjab, Delhi, Uttarkhand and Western Uttar Pradesh


Q5.Which of the following Price Indices of India is considered for measuring ‘Headline Inflation’?

a) WPI           b) GDP             c) CPI-IW         d) None of these

Ans:     A

Explanation:     Wholesale Price Index (WPI) is the price of a representative basket of wholesale goods. Some Countries use WPI changes as a central measure of inflation. However, united states now report a producer price index instead. The Indian WPI is now weekly basis.


Q6.Consider the following statements:

The main functions of the office of Economic Advisor include:

  1. Formulation of Industrial policies and the effect of trade policies on them
  2. Examination of general economic issue.
  3. Analysis of micro economics aggregates.

Which of the statements given below is correct?

a) Only 3     b) Only 2       c) 1 and 3         d) 1, 2 and 3

Ans:     D

Explanation:     The industrial Policies and the effect of trade policies on them. Compilation and publication of the weekly wholesale price index number in India. Compilation and publication of hand Book of industrial policy and statistics.


Q7.Consider the following statements:

  1. Bulk of employment in India is in rural areas.
  2. Industrialization has rendered several people jobless in India
  3. The disguised unemployment in agriculture sector is perennial

Which of the following statements given above are correct?

a) Only 1      b) Only 1 and 2        c) 2 and 3         d) None of these

Ans:     B

Explanation:     India Bulls companies have operation in every major Indian city Mumbai, Delhi NCR, Chennai, Hyderabad, Bangalore, Nasik, Ahmadabad.

Bharat Udyog Ltd. (BUL), a premier Indian Infrastructure company is committed to the development efforts of the nation.


Q8.Which is not one of the salient features of Annapurna Scheme?

  1. It was launched by the ministry of Human Resource Ministry, food and Public distribution in2002-2003.
  2. 12 kg of food grains per month are supplied free of cost to the targeted group.

a) Only 1              b) Only 2                      c) 1 and 2         d) None of these

Ans:     C

Explanation:     The ministry of rural development has been chosen as the nodal ministry to implement the scheme. The scheme has been launched on 1st April, 2000. Through the new “Annapurna” scheme, it is intended to provide 10 kgs. From 2002-03, the scheme has been transferred to state plan along with the National Social Assistance Programme


Q9. Public Distribution system (PDS) means distribution of essential commodities to a large number of people through a network of fair price shops on a recurring basis. The Commodities distributed under PDS are:

  1. Wheat       2. Rice         3. Sugar            4. Pulses           5. Kerosene

Select the correct option

a) 1 and 2            b) 3 and 4        c) 2, 3 and 4     d) 1, 2, 3 and 5

Ans:     D

Explanation:The commodities distributed under public Distribution system (PDS) are as follow:

Wheat, Rice, Sugar and Kerosene


Q10.In the context of Indira Awaas Yojana consider the following statements

  1. Indira awaas Yojana was launched in may, 1985 a sub scheme of JRY.
  2. Indira Awass Yojana seek to provide shelter to rural BPL households
  3. Allotment under this housing scheme is made only in the name of the female member of the household

Which of the following are correct?

a) Only 1      b) Only 2 and 3       c) 1 and 2         d) 1, 2 and 3

Ans:     D

Explanation:     Indira Awaas Yojana is a Govt. of the social welfare programme to provide housing for the rural poor in India. Under the scheme financial assistance worth Rs. 70000 in Plan areas and Rs. 75000 in difficult areas is provided for construction of the house



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