Indian Economy MCQs

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India’s First Five-year Plan was implemented from the year 1951 till 1956. It mainly focused on the development of primary sector. The Plan was based on the Harrod–Domar model implemented with some modifications.

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The main motive of the government behind setting up fair price shops is to provide essential commodities to people living below the poverty line. The government buys commodities from farmers at their desirable prices and sells them through fair price shops at half price. This allows people who are unable to buy things from the market due to high prices to purchase necessary products.
Fair price shops are also known as ration shops. Any family with a ration card can purchase a stipulated amount of food grains, sugar, kerosene, etc..
Dual pricing, also known as dynamic pricing or surge pricing, is a pricing strategy in which a business charges different prices for the same product or service based on factors such as demand, inventory levels, or weather conditions. The purpose of dual pricing is to drive other competitors out of the business in order to dominate a product niche or even an entire industry.

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The correct answer is that the World Bank has the right to float bonds and use the proceeds for loans. This is a crucial function as it allows the World Bank to raise capital from international markets to fund development projects in member countries. The World Bank issues bonds to investors, which are backed by the institution’s financial strength and the repayment capacity of its borrowing countries. This mechanism is vital for financing infrastructure, education, and health projects globally. The World Bank has issued bonds since its inception in 1944, making it one of the largest issuers of bonds in the world.

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Euribor (Euro Interbank Offered Rate )is similar to LIBOR (London Interbank Offer rate)

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The head of the “Board for Financial Supervision” (BFS) in India is the RBI Governor. Established in 1994, the BFS is responsible for overseeing the financial system, ensuring its stability and soundness. The Reserve Bank of India (RBI) plays a crucial role in regulating the banking sector, and the Governor, as the chief executive, leads this board.

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Total food grains typically include rice, wheat, coarse cereals, and pulses. In agricultural terms, “food grains” refers to the edible seeds of cereal crops and legumes. 1. Rice: A staple food for over half the world’s population, particularly in Asia. 2. Wheat: The second most produced cereal globally, essential for bread and pasta. 3. Coarse cereals: Includes millet and barley, often used in animal feed and for human consumption in various cultures. 4. Pulses: Leguminous crops like lentils and chickpeas, rich in protein and vital for sustainable agriculture. Thus, the correct representation of total food grains is 4, as it encompasses all four categories listed.

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Karnataka is the leading producer of raw silk in India, accounting for more than 40 percent of the total raw silk production. This is in large part due to the state’s favourable climate conditions for silk cultivation, as well as the degree of governmental support in the state for silk farmers.

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KYC guidelines were issued under Section 35 A of the Banking Regulation Act, 1949.These were introduced in year 2002 by RBI and all banks were asked to make all accounts KYC compliant by 31 December 2005.Banks are also required to periodically update their customers’ KYC details.

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Mumbai port has excellent harbor facilities for importing long staple cotton and machinery to meet the requirements of the petrochemical and cotton textile industries. Mumbai Port Trust is a port which lies midway on the West coast of India, on the natural deep water harbour of Mumbai in Maharashtra.

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The Engine division of Hindustan Aeronautics Limited (HAL), a defence enterprise of the Government of India, is located at Sunabeda, 15 km from Koraput town. This factory manufactures aircraft engines for MiG and Sukhoi fighter aircraft. Koraput is a district of Odisha, India, and known for rich and diverse types of mineral deposits. It is located along the Eastern Ghats.