Indian Economy MCQs

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The Reserve Bank of India conducts open market operations primarily in the gilt-edged market. Gilt-edged market refers to the market for government securities. RBI buys and sells government securities to regulate money supply. OMOs in India deal only with government securities, not private securities. Gilt-edged securities are considered low risk and are issued by the Government of India.

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India’s first Export Promotion Industrial Park (EPIP) was opened in Jaipur. The EPIP in Rajasthan at Sitapura is complete. The park is the largest Export-Park in Northern India.
The EPIP scheme was implemented to create infrastructure for exports in specific locations. The parks have modern infrastructure to boost the export of commodities and services. Units in the EPIP must commit to exporting at least 33% of their production.

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Sterilization involves central banks selling government securities in the open market to absorb liquidity created by foreign capital inflows. The Reserve Bank of India uses open market operations for this purpose. By selling government securities, the central bank withdraws excess rupee liquidity from the banking system. This method helps limit the expansion of the money supply and manage inflationary pressures resulting from increased foreign exchange reserves.

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Economic Planning refers to any plans of economic activity which point to achieve specific social and economic outcomes. It is a subject matter of concurrent list in 7th schedule of Indian constitution.

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Anhydrous ammonia contains about 82% nitrogen by weight. It is a gaseous fertilizer used primarily in large-scale commercial agriculture. It was first used as a fertilizer in the early twentieth century. Anhydrous ammonia must be stored under high pressure or at low temperature to remain in liquid form for application. It is injected into the soil to minimize loss through volatilization.

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Coal is a fossil fuel formed from plant remains over millions of years. It has been used extensively in thermal power plants. India is the second largest producer of coal as of 2023. Coal is classified as a non-renewable, conventional energy source. It primarily consists of carbon, hydrogen, oxygen, nitrogen, and sulfur.

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The United States and the United Kingdom use two-party systems. These systems limit viable electoral parties to two, often due to plurality voting. In such systems, proportional representation has less impact because most legislative seats are divided between the two main parties. The Second Ballot Act 1906 in the UK led toward two-party dominance. Two-party systems emerged in the United States by the 19th century.

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Dadabai Naoroji who is known as the grand old man of India is a critique of the drain of wealth. He explained the British exploitation of Indian wealth and Indian resources through his book “Poverty and un-British rule in India”.

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A breeder seed is a progeny of nucleus seed multiplied in large area under supervision of plant breeder / institute / SAUs and monitored by a committee consisting of the representatives of state seed certification agency. A golden yellow colour certificateis issued for this category of seed by producing breeder.

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Nostoc and Azospirillium are the organisms that are used as bio fertilizers. Nostoc is a blue green algae while Azospirillium is aerobic free-living nitrogen fixers which live in associative symbiosis.