Indian Economy MCQs
61. UDYAMI helpline is for?
[A] Large capital Industries
[B] Female entrepreneur
[C] Farmers introducing technology in Farming
[D] Micro, small & medium size enterprises
Show Answer
Correct Answer: D [Micro, small & medium size enterprises]
62. National Food Grain Movement Plan is primarily related to which among the following?
[A] Development of new seed varieties of food grains
[B] Opening food grain seeds villages
[C] Modernization of Public Distribution System
[D] All the above
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Correct Answer: C [Modernization of Public Distribution System]
63. In context with banking, what is the correct full form of ADF?
[A] Automatic Debt Function
[B] Automatic Data Function
[C] Automated Data Flow
[D] Additional Debt Finance
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Correct Answer: C [Automated Data Flow]
64. It has been generally viewed that when an economy grows beyond its potential growth rate, it causes inflation. How does growing faster than the potential rate cause inflation?
[A] Fast growth causes quick resource utilization to fulfill the higher demand
[B] Fast growth causes more employment opportunities which leads to rise in prices
[C] Fast growth causes more productivity which leads to higher supply and cost push inflation
[D] All of above mentioned reasons
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Correct Answer: A [Fast growth causes quick resource utilization to fulfill the higher demand]
Notes:
There are two major determinants of the potential rate at which an economy can grow in the long run. One is the rate of increase in key inputs such as labour and capital, while the other is the rise in productivity. Within the two key inputs, labour has a bigger say in determining the potential growth rate. The increase in labour supply – through an increase in number of workers or the numbers of hours put by a given number of workers – and an increase in labour productivity will result in an increase in the long-term potential growth rate. Anything that aids productivity increases can help boost potential growth rate. Infrastructure investments and skilling of labour can raise India’s potential growth rate because the country has ample labour supply. The overall demand in the economy picks up due to fast growth and more resources are used to meet higher demand. After a point, the economy may not find enough inputs to meet the demand, leading to an increase in prices. If there is surplus capacity in the economy then it can grow above the potential rate for a while. But for an economy already working at full capacity, excessive demand results in increase in the price level.
65. One of the economic laws says that as incomes increase, the proportion of starchy staples in the food basket declines relative to the share of more expensive sources of calories. What this hypothesis is known as ?
[A] Engel’s Law
[B] Bennet’s Law
[C] Campbell’s law
[D] Gresham’s law
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Correct Answer: B [Bennet’s Law]
66. What is the upper limit of RTGS transaction in India?
[A] Rs. 5 Lakh
[B] Rs. 10 Lakhs
[C] Rs. 15 Lakhs
[D] No limit
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Correct Answer: D [No limit]
67. Interests payable on savings bank accounts in India is ___
[A] Not regulated
[B] Regulated by RBI
[C] Regulated by Central Government
[D] Regulated by State Governments
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Correct Answer: A [Not regulated]
68. Central Employment Guarantee Council overlooks the progress of which among the following scheme?
[A] MGNREGA
[B] Food for Works Programme
[C] National Rural Livelihood Mission
[D] All of them
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Correct Answer: A [MGNREGA]
69. Commercial Paper (CP) is an unsecured money market instrument issued in the form of a _____?
[A] Demand Draft
[B] Cheque
[C] Bill of Exchange
[D] Promissory Note
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Correct Answer: D [Promissory Note]
70. In which of the following years, the Family Planning Insurance Scheme was launched in India?
[A] 2004
[B] 2005
[C] 2006
[D] 2007
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