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MCQ on Indian Economy

The architect of the Second Five Year Plan was :

  • Mahatma Gandhi
  • Subhash Chandra Bose
  • P. C. Mahalanobis
  • None of them
  • Correct Option: C  [ P. C. Mahalanobis ]

    Explanation:

"SEBI" stands for the:

  • State Earnings Board of India
  • Securities and Exchange Bank of India
  • Securities and Exchange Board of India
  • State Exchange Bank of India
  • Correct Option: C  [ Securities and Exchange Board of India ]

    Explanation: The Securities and Exchange Board of India was constituted as a non-statutory body on April 12, 1988 through a resolution of the Government of India.
    The Securities and Exchange Board of India was established as a statutory body in the year 1992

Scheme run under MGNREGA are sponsored :

  • by the Central Government alone
  • by the State Government alone
  • partly by the Central Government and partly by the State Government
  • by Centre, State and Panchayat bodies together
  • Correct Option: C  [ partly by the Central Government and partly by the State Government ]

    Explanation:

If the Cash Reserve Ratio (CRR) is lowered by the RBI, its impact on credit creation will be to :

  • decrease it
  • increase it
  • No impact
  • None of these
  • Correct Option: B  [ increase it ]

    Explanation:

Which of the following is not an asset held by the commercial bank ?

  • Bills of exchange
  • Current account deposits
  • Money lent at short notice
  • Credit balances with the Reserve Bank
  • Correct Option: B  [ Current account deposits ]

    Explanation:

Which is the following is direct tax ?

  • Income tax
  • Excise duty
  • Sales tax
  • None of these
  • Correct Option: A  [ Income tax ]

    Explanation:

Who was the first Governor of Reserve Bank of India (RBI)?

  • C D Deshmukh
  • Sir Osborne Smith
  • James Braid Taylor
  • Benegal Rama Rau
  • Correct Option: B  [ Sir Osborne Smith ]

    Explanation: from 1935 to 1937

Fiscal Deficit is:

  • Government expenditure minus borrowings
  • Government expenditure minus revenue receipts
  • Same as budget deficit
  • Budget deficit minus borrowings and other liabilities
  • Correct Option: B  [ Government expenditure minus revenue receipts ]

    Explanation:

If the RBI adopts expansionist open market operations policy, this means that it will:

  • openly announce to the market that it intends to expand credit
  • sell securities in open market
  • offer commercial banks more credit in the open market
  • buy securities from non-government holders
  • Correct Option: B  [ sell securities in open market ]

    Explanation:

Which one of the following is the main source of revenue for the states ?

  • Property tax
  • Sales tax
  • Excise duty
  • None of these
  • Correct Option: B  [ Sales tax ]

    Explanation: