Indian Economy MCQs

Notes:
Inflation is the decline of purchasing power of a particular currency over time. It is reflected as an increase in general prices. As the demand for credit increases, the pricing of bank products also increases.

Notes:
Second Plan, April 1957, it took over the work of former All India Khadi and Village Industries Board.

Notes:
Plantation crops are crops that are grown on large farms, called plantations, and are typically grown for commercial purposes. These crops are often grown on a large scale using specialized techniques and equipment, and are typically exported to other countries for sale. Some examples of plantation crops include:

1. Sugar cane: This is a tropical grass that is grown for its sweet, juicy stalks, which are used to make sugar.
2. Rubber: This is a tree that is grown for its latex, which is used to make rubber.
3. Tea: This is a bush that is grown for its leaves, which are used to make tea.
4. Coffee: This is a shrub that is grown for its beans, which are used to make coffee.
5. Coconut: This is a tree that is grown for its fruit, which is used to make coconut milk and oil.
6. Banana: This is a tree that is grown for its fruit, which is a popular food around the world.
7. Palm oil: This is a tree that is grown for its fruit, which is used to make palm oil.
8. Tobacco: This is a plant that is grown for its leaves, which are used to make tobacco products such as cigarettes.
9. Cotton: This is a plant that is grown for its fibers, which are used to make textiles and other products.

Plantation crops are an important source of income and employment for many countries, and they contribute significantly to the global economy.

Notes:
The correct answer is “speculation.” Speculation involves taking on risk in hopes of making a profit from price movements, contrasting with hedging, which aims to reduce risk. While hedging protects against losses, speculation seeks to capitalize on market fluctuations. Notably, speculators can importantly influence market liquidity and volatility.

Notes:
Issuance of currency makes RBI the sole agent of the government to issue currency notes, Ways and means advances are advances to the state and central government, Maintenance of currency chests comes under currency management, Collection of credit information is related to regulation of borrowers, Liquidity adjustment facility is the most appropriate option which gives an indication of RBI working as bankers` Bank.

Notes:
Qualitative or selective methods of credit control refers to those methods which limit the nature or variety of money supply rather than its quantity. Such methods include regulation of margin requirement, credit rationing, regulation of consumer credit and direct action.

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Prasantha Chandra Mahalanobis or P. C. Mahalanobis (1893-1972) was the first Indian statistician to receive world recognition. In 1933, Mahalanobis founded the first Indian statistical journal Sankhya, along the lines of Biometrika, which had inspired him greatly. He was architect of India’s second five year plan and due to this second plan is known as Mahalanobis model.

Notes:
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. It is mandated to recommend minimum support prices (MSPs) to incentivize the cultivators to adopt modern technology, and raise productivity and overall grain production in line with the emerging demand patterns in the country.

Notes:
The correct answer is the Reserve Bank of India (RBI). The RBI is responsible for regulating foreign exchange in India under the Foreign Exchange Management Act (FEMA) of 1999. The “Exchange Control Manual” provides guidelines for foreign exchange transactions and is crucial for maintaining the stability of the Indian economy. The RBI also plays a key role in managing the country’s foreign exchange reserves and ensuring compliance with international financial regulations.

Notes:
Romesh Chunder Dutt was an Indian civil servant and a famous economic historian of the nineteenth century. He entered the Indian Civil Service in the year 1871. He is also called as the Pioneer of Economic Nationalism.