Indian Economy MCQs

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The two presses of Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) are located at Mysore and Salboni.

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Small Industries Development Bank of India is an independent financial institution aimed to aid the growth and development of micro, small and medium-scale enterprises. Small Industries Development Bank of India (SIDBI) was set up on April 2, 1990 under small industries development bank of India act.

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First statement is incorrect. The “Adopt a Heritage Scheme” is an initiative under Ministry of Tourism. Second statement is correct. Under this scheme, the government has appointed private as well as public companies as “Monument Mitras” for making heritage tourism more sustainable through conservation and development. The short-listed companies, to be called Monument Mitras, are from various sectors such as hospitality, travel, and banking.

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India has used a managed floating exchange rate regime since 1993. The Reserve Bank of India intervenes in the foreign exchange market to reduce excessive volatility. The exchange rate is mainly market-determined but subject to RBI intervention. The International Monetary Fund describes India’s regime as a managed float. RBI does not follow a fully fixed or fully floating rate policy.

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Alang is located in Bhavnagar district, Gujarat. It is recognized as the world’s largest ship-breaking yard. Alang consists of 183 ship breaking yards along 14 kilometers of coastline with a maximum capacity of 4.5 million Light Displacement Tonnage. As of 2024–25, Alang dismantles about 98% of ships broken up in India.

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In the calculation of national income, the value of old goods sold is not included. National income accounting typically focuses on the value of goods and services produced within a specific period, usually a year. It includes the production of new goods and the provision of services. However, the resale of old goods does not contribute to the current production of goods and services and therefore is not counted. Additionally, non-market services such as the services of a housewife, which are not paid for in the market, are also not included in the national income calculations. This exclusion is due to the difficulty in accurately measuring the economic value of such non-market services.

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Net worth equals total assets minus total liabilities. It includes properties, financial investments, cash, and all debts. Net worth calculation is used for individuals, companies, and governments to assess overall financial position. The term is commonly used in balance sheets and personal financial statements. As of 2024, net worth remains the primary financial indicator in banking, accounting, and wealth management sectors globally.

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Inflation is caused by an increase in the money supply and a decrease in production. Demand-pull inflation arises when the growth in money supply surpasses economic output. Cost-push inflation occurs with supply shocks or reduced production. Both factors together can increase the general price level. India has experienced inflation due to these sources in multiple years.

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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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Consumer equilibrium occurs when marginal utility per rupee spent is equal across goods, ensuring maximum satisfaction from available income. This concept is central in utility theory of consumer behavior in economics.