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MCQ on Indian Economy


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Find out the statement which is false.
Financial Structural reform needs

  • fall in government budget deficit
  • increase in profitability of economic sectors
  • reduce inflationary pressure
  • increase in the balance of payment deficit
Correct Option: D  [ increase in the balance of payment deficit ]

Explanation:

Existence of huge black money creates

  • increase in the inequality of income
  • decrease in the quality of output
  • high living standard for all
  • Both (B) and (C)
Correct Option: A  [ increase in the inequality of income ]

Explanation:

In order to control inflationary price rise, Reserve Bank directs Banks to

  • Reduce rate of interest on credit
  • Reduce Statutory Liquidity Ratio (SLR)
  • Increase Cash Reserve Ratio (CRR)
  • Buy bonds from capital market
Correct Option: C  [ Increase Cash Reserve Ratio (CRR) ]

Explanation:

Plan finance creates increase of money supply if there is

  • increase in taxes
  • increase in loan from the Reserve Bank of India
  • increase in loan from commercial Banks
  • increase in loan from general public
Correct Option: A  [ increase in taxes ]

Explanation:

Tertiary sector activities include

  • Cottage industries
  • Mining activities
  • Construction activities
  • Infrastructure services
Correct Option: D  [ Infrastructure services ]

Explanation:

Major part of the Indian agriculture is characterized by

  • Large size farm
  • Capitalist agriculture
  • Small size farm
  • Co-operative farm
Correct Option: C  [ Small size farm ]

Explanation:

If withdrawal of a worker from employment does not create any output loss, this situation is known as

  • Search unemployment
  • Voluntary unemployment
  • Disguised unemployment
  • Frictional unemployment
Correct Option: C  [ Disguised unemployment ]

Explanation:

The World Trade Organisation has replaced which organisation ?

  • ITO
  • UNCTAD
  • GATT
  • OECD
Correct Option: C  [ GATT ]

Explanation:

Which among the following in India has the function of recommending Minimum Support Prices for various commodities to the Government ?

  • National Farmers Commission
  • Commission for Agricultural Costs and Prices
  • Central Statistical organization
  • Department of Agriculture
Correct Option: B  [ Commission for Agricultural Costs and Prices ]

Explanation:

Which among the following in India has the function of recommending Minimum Support Prices for various commodities to the Government ?

  • National Farmers Commission
  • Commission for Agricultural Costs and Prices
  • Central Statistical organization
  • Department of Agriculture
Correct Option: B  [ Commission for Agricultural Costs and Prices ]

Explanation:
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