Indian Economy MCQs

Notes:
Trombay, Nangal, and Sindri are famous for fertilizers. The first fertilizer plant was established in Sindri, Jharkhand. Fertilizers are materials that are applied to soil or plant tissue to provide nutrients for plant growth. They can be natural or synthetic in origin.  Trombay is located in Maharashtra. Nangal is a town in Punjab, India. Sindri is a neighborhood in Dhanbad, Jharkhand.

Notes:
The correct answer is “RBI announces selective credit control in the quarterly review of the monetary policy.” Selective credit control is a qualitative tool used by the Reserve Bank of India (RBI) to regulate the flow of credit to specific sectors, ensuring that credit is directed towards priority areas of the economy. This approach allows the RBI to manage inflation and economic growth more effectively. In contrast, the other options (Reverse Repo rate, CRR, and Bank rate adjustments) are quantitative tools aimed at controlling the overall money supply.

Notes:
India has established itself as a major player in the global steel industry, holding the position of the world’s second-largest steel producer after China and the top producer of sponge iron. The country is also the third-largest consumer of finished steel globally, trailing only China and the United States. India’s steel sector has shown remarkable growth, with production increasing by 8.5% year-on-year from January to April 2024, outperforming other top steel producers who experienced declines during the same period. Looking ahead, the National Steel Policy 2017 sets an ambitious target to nearly double India’s steel production capacity from around 161 million tonnes to 300 million tonnes. The country’s steel industry is supported by several equipment manufacturers, including Heavy Engineering Corporation, Larsen & Toubro, and CG Industrial Solutions, further strengthening its position in the global market.

Notes:
Dividends from public sector enterprises are profits distributed to shareholders, not a tax. In contrast, export duties, stamp fees, and registration fees are direct forms of taxation imposed by governments to generate revenue. For instance, export duties are levied on goods leaving a country, while stamp fees are charged on legal documents. Public sector dividends, however, are a return on investment rather than a tax revenue source.

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The correct answer is “Private Banks.” In India, “Other Scheduled Commercial Banks” referred to banks that did not fall into the categories of National Banks or Foreign Banks. Private Banks, which are owned by private entities, were classified under this term before the regulatory framework evolved. As of now, the Reserve Bank of India (RBI) categorizes banks into various groups, including Public Sector Banks, Private Sector Banks, Foreign Banks, and Scheduled Cooperative Banks. Notably, the first private bank in India was the “Oudh Commercial Bank,” established in 1881.

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The correct answer is “India, Mexico, South Africa.” As of recent data, India is one of the largest borrowers from the World Bank, primarily for development projects. Mexico also has important loans for infrastructure and social programs. South Africa has received funding for various initiatives, including poverty alleviation and economic development. The World Bank’s lending is aimed at reducing poverty and promoting sustainable development in these countries.

Notes:
Short Term Funds – Indian Money Market,
Medium and Long Term Funds- Indian Capital Market

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Exchange Earners’ Foreign Currency (EEFC) Accounts are special accounts in India that allow residents to hold foreign currency. 1. Opened with RBI: EEFC accounts are not directly opened with the Reserve Bank of India (RBI) but are maintained with authorized banks. 2. Earn interest: These accounts do earn interest on deposits, but the rate is typically lower than domestic currency accounts. 3. Minimum balance: There is no mandatory minimum balance requirement for EEFC accounts, making them flexible for account holders. Thus, the correct answer is “None of them” as none of the statements are entirely accurate.

Notes:
The oldest Public Sector Bank in India is Allahabad Bank, established in 1865. It was nationalized in 1969, making it one of the first banks to be included in the public sector. Punjab National Bank was founded in 1894, Imperial Bank of India (now part of State Bank of India) was established in 1921, and Central Bank of India was founded in 1911.

Notes:
Labour force participation rate reflects the persons who express their willingness to work.