Indian Economy MCQs

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Muriate of potash is a common name for potassium chloride. It is chemically neutral and does not significantly alter soil pH. Farmers use it mainly as a source of potassium. Urea and ammonia may acidify soil with repeated use, while rock phosphate tends to make soil slightly acidic over time. Muriate of potash is widely produced and used worldwide.

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OPEC accounted for about 40% of global crude oil production as of 2023. OPEC’s production ranged near 34 million barrels per day in 2023. The organization also holds over 70% of the world’s proven oil reserves. OPEC was founded in 1960 in Baghdad. Major OPEC members include Saudi Arabia, Iran, Iraq, and Venezuela.

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The correct answer is Frictional unemployment. This type occurs when individuals are temporarily unemployed while transitioning between jobs or searching for new employment. It reflects the time taken for job seekers to find a position that matches their skills and preferences. Frictional unemployment is a natural part of a healthy economy, as it indicates mobility in the labor market. According to the U.S. Bureau of Labor Statistics, frictional unemployment typically accounts for about 2-3% of the total unemployment rate.

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Non-Plan Expenditure covers routine government expenses such as interest payments, defense costs, and pensions. Central Assistance to States for developmental projects is categorized as Plan Expenditure, intended for developmental activities as per the Planning Commission guidelines before 2017. After 2017, India merged Plan and Non-Plan expenditure in Union Budget, but the classification in this question refers to the pre-2017 structure.

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In 1991 The Reserve Bank of India had proposed the committee chaired by M. Narasimham, former RBI Governor to review the Financial System and aspects relating to the Structure, Organization, Procedures and Functioning of the financial system. Committee submitted two reports, in 1992 and 1998, which laid significant thrust on enhancing the efficiency and viability of the banking sector. The Narasimham Committee laid the foundation for the reformation of the Indian banking sector.

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Refinery products have the highest weightage of 28.04% in the Index of Industrial Production as per the IIP series with base year 2011-12. The Index of Industrial Production was first published in 1937. The IIP is calculated and released by the National Statistical Office, Ministry of Statistics and Programme Implementation, Government of India.

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The Seed Crop Insurance scheme was launched in India as a pilot in the financial year 2000-2001. It covered selected districts in 11 major seed-producing states. The scheme aimed to provide insurance protection to certified seed growers against crop loss due to natural calamities and pests. The program targeted crops produced for certified seed purposes, not regular grain crops.

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The Integrated Action Plan (IAP) is aimed at bridging the development deficit in the extremely backward areas that are affected by Left Wing Extremism.

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The Reserve Bank of India increases cash reserves of commercial banks by purchasing government securities through open market operations. When government securities are purchased, funds are transferred to commercial banks, raising their cash reserves. OMOs are used by the RBI as a monetary policy instrument to regulate liquidity and money supply. As of 2023, RBI actively uses OMOs to manage system liquidity.

Notes:
Open unemployment is a condition in which people have no work to do. They are able to work and are also willing to work but there is no work for them. They are found partly in villages, but very largely in cities. Most of them come from villages in search of jobs, many originate in cities themselves. Such employment can be seen and counted in terms of the number of such persons. Hence it is called open unemployment.