Indian Economy Practice Question and Answer

Q:

Which factor is mainly responsible for increase in demand of natural resources?

1229 0

  • 1
    Scientific advancement
    Correct
    Wrong
  • 2
    Use of biodegradable chemicals
    Correct
    Wrong
  • 3
    Increasing human population
    Correct
    Wrong
  • 4
    Environmental pollution
    Correct
    Wrong
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Answer : 3. "Increasing human population"
Explanation :

The correct answer is Increased human population. As the human population is increasing at an astounding rate, we have reached a number of 7.4 billion today. Naturally, this means that we are utilizing more and more natural resources.

Q:

Who is known as the father of Blue Revolution in India?

617 0

  • 1
    Verghese Kurien
    Correct
    Wrong
  • 2
    Sam Pitroda
    Correct
    Wrong
  • 3
    Hiralal Chaudhuri
    Correct
    Wrong
  • 4
    M.S. Swaminathan
    Correct
    Wrong
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Answer : 3. "Hiralal Chaudhuri"
Explanation :

Hiralal Chaudhuri and Dr. Arun Krishnsnan are known as Father of Blue revolution. The Blue Revolution in India was launched during the 7th Five Year Plan (1985-1990) during the sponsorship of the Fish Farmers Development Agency (FFDA) by the Central Government of India.

Q:

In which year did the Government of India set up the first mutual fund by an Act of Parliament?

477 0

  • 1
    1979
    Correct
    Wrong
  • 2
    1982
    Correct
    Wrong
  • 3
    1963
    Correct
    Wrong
  • 4
    1971
    Correct
    Wrong
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Answer : 3. "1963"
Explanation :

1. The mutual fund industry in India began in 1963 with the formation of UTI by an Act of Parliament in 1963 and functioned under the regulatory and administrative control of the Reserve Bank of India (RBI).

2. Unit Trust of India (UTI) was established by an Act of Parliament in 1963.

3. UTI is the first mutual fund company established in India.

Q:

Which of the following is considered a capital expense?

651 0

  • 1
    Pension  
    Correct
    Wrong
  • 2
    Payment of salaries  
    Correct
    Wrong
  • 3
    Subsidies
    Correct
    Wrong
  • 4
    Construction of school buildings
    Correct
    Wrong
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Answer : 4. "Construction of school buildings"
Explanation :

1. Capital expenditure is money spent by the government on the development of machinery, equipment, buildings, health facilities, education etc.

2. It also includes expenditure by the government on the acquisition of fixed assets like land and investments which give future profits or dividends.

3. Creation of assets as well as repayment of loans is also capital expenditure, as it reduces liability.

Q:

In India, which of the following statements about the National Investment Fund is true?
 Statements:
 I. It was created in 2005.
 II. 75% of its annual income was to be used for schemes promoting health, education and employment.
 III. It was dissolved in 2018.

557 0

  • 1
    Only statement I
    Correct
    Wrong
  • 2
    Only statement II
    Correct
    Wrong
  • 3
    Only statements I and III
    Correct
    Wrong
  • 4
    Only statements I and II
    Correct
    Wrong
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Answer : 4. "Only statements I and II"
Explanation :

All the statements about the National Investment Fund in India are true.

I. It was created in 2005.

II. 75% of its annual income was to be used for schemes promoting health, education and employment.

Q:

Which of the following is NOT a public sector insurance company?

540 0

  • 1
    United India Insurance Company Limited
    Correct
    Wrong
  • 2
    The New India Assurance Company Limited
    Correct
    Wrong
  • 3
    SBI Life Insurance
    Correct
    Wrong
  • 4
    General Insurance Corporation of India
    Correct
    Wrong
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Answer : 3. "SBI Life Insurance"
Explanation :

There are public sector insurance companies.

1. United India Insurance Company Limited

2. The New India Assurance Company Limited

3. General Insurance Corporation of India

Q:

As per the recommendations of the National Statistical Commission, the Base Year of the GDP Series in India was revised from 2004-05 to ______ with effect from January 2015.

472 0

  • 1
    2011-12
    Correct
    Wrong
  • 2
    2013-14
    Correct
    Wrong
  • 3
    2005-06
    Correct
    Wrong
  • 4
    2009-10
    Correct
    Wrong
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Answer : 1. "2011-12"
Explanation :

1. From January 2015, as per the recommendations of the National Statistical Commission, the GDP in India The base year of the (GDP) series was revised from 2004-05 to 2011-12.

Q:

To which of the following sectors of the economy do Basel III norms belong?

569 0

  • 1
    Banking
    Correct
    Wrong
  • 2
    Capital market
    Correct
    Wrong
  • 3
    Automobile
    Correct
    Wrong
  • 4
    Aviation
    Correct
    Wrong
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Answer : 1. "Banking"
Explanation :

1. The Basel norms are international banking rules to strengthen the international banking system.

2. It is in the form of an agreement by the Basel Committee on Banking Supervision which mainly focuses on the risks to banks and the financial system.

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