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Indian Economy - General Knowledge Multiple Choice Questions and Answers | Page-2

11 Which of the following is the most important domestic source of planned finance?
A Additional taxation
B Domestic private savings
C Profit from public sector units
D Balance of current revenue

Answer: Option [B]

The correct answer is Domestic private savings. Domestic saving primarily consist of three components, viz., household sector saving, private corporate sector saving and public sector saving. Household sector saving constitutes the largest portion of gross domestic saving. Household sector saving comprises saving in financial assets and saving in physical assets. Household saving in financial assets (net) is estimated as gross financial assets net of financial liabilities, while household saving in physical assets is the net addition to physical assets by the households.

12 What is the name of the electronic communication network of the Reserve Bank of India?

Answer: Option [C]

The correct answer is RBINET. RBINet, a communication software, developed in 'C' and available for both DOS and UNIX machines, allows free format messaging and file transfer on the existing BANKNET infrastructure with the help of UNIX servers installed at the 4 NCCs. The software allows free format messaging without any restrictions on the length of the message, enables file transfer of both ASCII-text and Binary (spreadsheets, data bases, programs etc.) files, facilitates dial-up access, and has security features such as end-to-end encryption, audit trail, etc.



13 Which authority decides about the States’ share in central taxes?
A Finance Ministry
B Election Commission
C Planning Commission
D Finance Commission

Answer: Option [D]

The correct answer is Finance Commission. The Finance Commission was established by the President of India in 1951 under Article 280 of the Indian Constitution. It was formed to define the financial relations between the central government of India and the individual state governments.

14 Which of the following is has the sole right of issuing currency (except one rupee coins and notes) in India?
A The Reserve Bank of India
B The State Bank of India
C The Planning Commission
D The Government of India

Answer: Option [A]

The correct answer is The Reserve Bank of India. In terms of Section 22 of the Act, Reserve Bank has the sole right to issue banknotes in India.

15 RBI does not transact the business of which State Government?
A Assam
B Bihar
C Jammu and Kashmir
D Nagaland

Answer: Option [C]

The correct answer is Jammu and Kashmir. Sate Government transactions are carried out by RBI in terms of the agreement entered into with the State Governments in terms of section 21 A of the RBI Act. As of now, such agreements exist between RBI and all the State Governments except with the Government of Jammu and Kashmir.

16 ICI is the name associated with
A A private sector bank
B Indian Cement Industry
C Chamber of Commerce and Industry
D A MNC which manufactures chemicals

Answer: Option [D]

ICI is the name associated with a MNC which manufactures chemicals. Imperial Chemical Industries (ICI) was a British chemical company. It was, for much of its history, the largest manufacturer in Britain. It was formed by the merger of four leading British chemical companies in 1926. Its headquarters were at Millbank in London.

17 Reserve Bank of India was nationalized in
A 1948
B 1949
C 1950
D 1951

Answer: Option [B]

Reserve Bank of India was nationalized in 1949. The Reserve Bank of India was nationalised with effect from 1st January, 1949 on the basis of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948. All shares in the capital of the Bank were deemed transferred to the Central Government on payment of a suitable compensation.

18 Per capita income is obtained by dividing National Income by
A Area of the country
B Volume of capital used
C Total working population
D Total population of the country

Answer: Option [D]

Per capita income is obtained by dividing National Income by total population of the country. Per capita income is used to determine the average per-person income for an area and to evaluate the standard of living and quality of life of the population. Per capita income for a nation is calculated by dividing the country's national income by its population.

19 GDP at Factor Cost is
A GDP minus indirect taxes plus subsidies
B GDP minus subsidies plus indirect taxes
C NNP plus depreciation allowances
D GDP minus depreciation allowances

Answer: Option [A]

GDP at Factor Cost is GDP minus indirect taxes plus subsidies. GDP at factor cost or basic prices are equal to market prices minus taxes on transaction of products plus subsidies on products. The sum of net value added in various economic activities is known as GDP at factor cost.

20 NREGP is the abbreviated form of
A National Rapid Employment Guarantee Programme
B National Rapid Educational Guarantee Programme
C National Rural Employment Guarantee Programme
D National Rural Educational Guarantee Programme

Answer: Option [C]

The correct answer is National Rural Employment Guarantee Programme. The Government of India passed the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 in September, 2005. The Act gives legal guarantee of a hundred days of wage employment in a financial year to adult members of a rural household who demand employment and are willing to do unskilled manual work.

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