Indian Economy MCQs

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Liquidity adjustment facility (LAF) is a monetary policy tool which allows banks to borrow money through repurchase agreements. It consists of Rep and Reverse Repo Rate.

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Mixed Banking is the system in which banks undertake activities of commercial and investment banking together.

• These banks give short-term and long-term loans to industrial concerns.
• The banks appoint experts which give valuable advice on various financial issues and also help gauge the financial health of companies.
• Industries don’t have to run to different places for differential financial needs.
• They thus promote rapid industrialization.
• They may however pose a grave threat to liquidity of a bank and lead to bad debts.

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The Jamnagar Refinery is owned by Reliance Industries and is located in Jamnagar, Gujarat. Its crude oil processing capacity is 1.4 million barrels per day. Commissioned in 1999, the refinery complex includes both domestic and export-oriented refinery units. It has the highest Nelson Complexity Index in India, standing at 21.1.

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Section 42 of the Reserve Bank of India Act, 1934 mandates scheduled banks to maintain their cash reserve ratio (CRR) with the RBI. The Reserve Bank of India monitors and enforces this statutory reserve requirement on the basis of net demand and time liabilities. The minimum CRR is set by the RBI and is periodically revised. RBI issues directions and circulars related to CRR compliance.

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The Rolling Plan, introduced in 1978 by India, provided a flexible planning method by extending the plan each year, maintaining a constant five-year horizon. This system allowed for annual adjustments in targets and allocations, replacing the rigid fixed Five-Year Plans previously followed.

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The textile industry is the largest employer in India after agriculture. It directly employs about 45 million people as of 2023. Including allied sectors, total employment exceeds 100 million. The industry includes handlooms, powerlooms, spinning, and garment manufacturing. The Indian textile and apparel market was valued at USD 223 billion in 2021 and has significant export share globally.

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Renewable energy technology is classified as a sunrise industry due to its rapid growth and adoption of emerging technologies. It includes solar, wind, and other clean energy solutions. India ranked fourth globally in installed renewable energy capacity as of 2023. Government initiatives like the National Solar Mission target 175 GW of renewable energy capacity by 2022. Sunrise industries focus on innovation and future economic potential.

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Most of central India and much of North India are subject to a humid subtropical climate. Though they experience hot summers, temperatures during the coldest months may fall as low as 0 °C (32 °F). Due to ample monsoon rains, India has only one subtype of this climate under the Köppen system.

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Subsidy a negative tax when the government gives money to reduce the price. A seller receives a subsidy to reduce the price for consumers. A manufacturer receives a subsidy for inputs incurred by them. A buyer sometimes receives a direct subsidy on important essentials like gas.

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The secondary sector includes industries where finished products are made from natural materials produced in the primary sector. Industrial production, cotton fabric, sugar cane production artisan production, Mills producing textiles, Factories producing steel, chemicals, plastic, car activities come under this sector.