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Quiz 652: Indian Economy for SSC and State Exams

1. Which of the following organisations assist a country with the adjustment process under its Extended Fund Facility?
[A] Asian Development Bank
[B] World Bank Group
[C] International Monetary Fund (IMF)
[D] New Development Bank (NDB)

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Correct Answer: C [International Monetary Fund (IMF)]
Notes:
When a country faces serious medium-term balance of payments problems, International Monetary Fund assist the country with the adjustment process under its Extended Fund Facility.
2. Which of the following is not a traditional Rabi crop in India?
[A] Chick pea
[B] Mustard
[C] Pigeon Pea
[D] Wheat

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Correct Answer: C [Pigeon Pea]
Notes:
Pigeon pea or Toor Dal is a traditionally Kharif crop sown in June-July with onset of monsoon in various agro-climatic zones in India. Others are Rabi crops. 
3. Which of the following is/are Money Market Instruments?
[A] Treasury Bills
[B] Commercial Papers
[C] Certificate of Deposits
[D] All of the above

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Correct Answer: D [All of the above]
Notes:
Money market securities are debt issues with maturities of one year or less. Treasury Bills, Certificate of Deposit as well as Commercial papers are money market instruments.
4. Bank Rate is defined as the rate at which:
[A] RBI lends short term loans to commercial banks
[B] a commercial bank can lend to its customers
[C] RBI lends long term loans to commercial banks
[D] the commercial banks are able to borrow overnight funds from RBI

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Correct Answer: C [RBI lends long term loans to commercial banks ]
Notes:
Bank rate is the rate of interest which a central bank charges on the long term loans and advances that it extends to commercial banks and other financial intermediaries.
5. Which of the following is / are correct statements regarding the Mixed Economy?
  1. Mixed economy combines the features of both capitalist and socialist market
  2. India is an excellent example of mixed economy

Select the correct option from the codes given below:

[A] 1 Only
[B] 2 Only
[C] Both 1 & 2
[D] Neither 1 nor 2

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Correct Answer: B [2 Only]
Notes:
First statement is incorrect because mixed economy is characterized by a system where government directs economic activity in some socially important areas of the economy, the rest being left to the price mechanism to operate. Second statement is correct.
6. Consider the following statements about the Commission for Agricultural Costs & Prices (CACP):
  1. It is mandated to recommend minimum support prices (MSPs)
  2. Union Agriculture Minister is the ex-officio chairperson of the commission

Which of the above statements is/are correct?

[A] 1 Only
[B] 2 Only
[C] Both 1& 2
[D] Neither 1 nor 2

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Correct Answer: A [1 Only]
Notes:
First statement is correct. Second statement is incorrect. The Commission for Agricultural Costs & Prices (CACP) is an attached office of the Ministry of Agriculture and Farmers Welfare, Government of India. It came into existence in January 1965. Currently, the Commission comprises a Chairman, Member Secretary, one Member (Official) and two Members (Non-Official). It is mandated to recommend minimum support prices (MSPs)
7. India is the biggest producer, as well as the largest consumer and importer of which of the following crops?
[A] Wheat
[B] Cotton
[C] Sugarcane
[D] Pulses

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Correct Answer: D [Pulses]
Notes:
India is the biggest producer, as well as the largest consumer and importer of pulses, but productivity is low. However, for 2016-17, there is a massive rebound in pulse production while Rabi pulses suggests harvest of 134 lakh tons (108 lakh tons), Kharif output is estimated at 87 lakhs tons (previous year 55 lakh tons) taking the annual total to a humungous 221 lakh tons (164 lakh tons)
8. Consider the following statements about Natural rubber (NR) production in India:
  1. Rubber plantation in India is confined to the states of Kerala and Tamil Nadu
  2. As of now, India is the largest producer of natural rubber in world

Which of the above statements is/are correct?

[A] 1 Only
[B] 2 Only
[C] Both 1 & 2
[D] Neither 1 nor 2

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Correct Answer: D [Neither 1 nor 2]
Notes:
First statement is incorrect because Rubber plantation in India is carried out in Karnataka, Kerala, Tamil Nadu and the Andaman and Nicobar Islands. Second statement is again incorrect because Thailand is the largest producer of natural rubber in the world.
 
9. The jute crop is grown in which of the following states of India?
  1. Uttar Pradesh
  2. Bihar
  3. Meghalaya
  4. West Bengal

Select the correct option from codes given below:

[A] 1, 2, 3 & 4
[B] 2, 3 & 4 Only
[C] 3 & 4 Only
[D] 4 Only

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Correct Answer: A [1, 2, 3 & 4]
Notes:
The cultivation of jute in India is mainly confined to the eastern region of the country. The jute crop is grown in  nearly  83  districts  of seven states –  West Bengal ,  Assam ,  Orissa , Bihar , Uttar Pradesh , Tripura and Meghalaya . 
10. Consider the following statements about Jute Production in India:
  1. India is the world’s largest producer of raw jute and jute goods 
  2. West Bengal is the largest producer of Jute in the country

Which of the above statements is/are correct?

[A] 1 Only
[B] 2 Only
[C] Both 1 & 2
[D] Neither 1 nor 2

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Correct Answer: C [Both 1 & 2]
Notes:
The leading world’s jute producing countries are India, Bangladesh, China and Thailand. India is the world’s largest producer of raw jute and jute goods, contributing to over 50 percent and 40 percent respectively of global production. West Bengal alone accounts for over 50 percent raw jute production.