Indian Economy MCQs - Set 6

1)   Which of the following statements is/are correct about the Small Finance Bank?
1: They are allowed to accept deposits from customers but not allowed to lend money
2: Airtel Small Finance Bank Ltd is India’s first small finance bank
3: Small finance banks need to maintain SLR and CRR
4: These are registered as a public limited company under the Companies Act, 2013
Select the correct option from codes given below:

a. 1, 2 & 4 Only
b. 3 & 4 Only
c. 1, 2 & 3 Only
d. 1, 2, 3 & 4
Answer  Explanation 

ANSWER: 3 & 4 Only

Explanation:
First statement is incorrect because small finance banks are allowed to take deposits from customers as well as they are also allowed to lend money to people. Second statement is again incorrect because the Capital Small Finance Bank Ltd is the country’s first small finance bank opened in Jalandhar. It is first among the 10 entities that were given the in-principle approval by the Reserve Bank of India (RBI) to set up small finance banks. Third statement is correct. Small Finance Banks need to maintain CRR and SLR. Fourth statement is correct. Small finance banks are registered as a public limited company under the Companies Act, 2013.

2)   Which among the following sponsors Regional Rural Banks(RRBs)?

a. National Commercial Banks
b. Foreign Banks
c. Reserve Bank of India
d. Co-operative Banks
Answer  Explanation 

ANSWER: National Commercial Banks

Explanation:
Regional Rural Banks are formed under RRB act. RRBS can be sponsored by commercial banks ,PSU ,private sector banks with share capital participation by central and state govts

3)   In a centrally planned economy, who among the following plans all the important activities in the economy?

a. Industrialists
b. Citizens
c. Judiciary
d. Government
Answer  Explanation 

ANSWER: Government

Explanation:
A centrally planned economy is an economic system in which the state or government makes economic decisions rather than the these being made by the interaction between consumers and businesses.

4)   What is marginal utilty in economics signify?

a. Small utlity
b. Additional utlity
c. Minimum utility
d. Satisfied utilty
Answer  Explanation 

ANSWER: Additional utlity

Explanation:
Marginal Utility is the additional utility derived from the consumption of an additional unit of commodity. It quantifies the added satisfaction that a consumer garners from consuming additional units of goods or services.

5)   What does Public sector in an economy means?

a. That which is owned by community
b. That which is owned by public
c. That which is owned by government
d. Both a and b
Answer  Explanation 

ANSWER: That which is owned by government

Explanation:
The Public Sector in an economy is that which are owned and operated by the government and exist to provide services for its citizens. They are government-owned and government-controlled and doest exist to generate profits.

6)   What does a good with positive externalities known as?

a. Giffen goods
b. Public goods
c. Merit goods
d. Snob good
Answer  Explanation 

ANSWER: Merit goods

Explanation:
Merit goods are the goods that are provided generally by the government to certain sections of society. Unlike in the case of pure public goods, merit goods are not provided to the entire society; rather they are given to certain targeted people. They Have positive externalities Ex: health, education

7)   Which Economist worked on “Group Measurement,” which evaluated the impact of the NREGA project on India’s citizens?

a. Mihir Shah
b. Subramanian Swamy
c. Reetika Khera
d. None of the above
Answer  Explanation 

ANSWER: Reetika Khera

Explanation:
Reetika Khera is an Indian economist and social scientist. One of her most important projects is the “Group Measurement,” which evaluated the impact the NREGA project has had on India’s citizens that effort is titled, “The Jalore Experiment”.

8)   Which of the below problems occur in an economy?

a. What to produce?
b. How to produce?
c. For whom to produce?
d. All of the above
Answer  Explanation 

ANSWER: All of the above

Explanation:
The limited resources is the main reason for the problems in economy. This leads to a question of
What to produce?
How to produce ?
And How much to produce ?

9)   Which sector contributed the maximum to GDP?

a. Primary sector
b. Secondary sector
c. Tertiary sector
d. Organised sector
Answer  Explanation 

ANSWER: Tertiary sector

Explanation:
The Tertiary sector has contributed 54.17 % of India’s Gross Value Added at the current price in 2018-19. 31.45 % of India’s employed population is working in the services sector.

10)   Which crop is affected by Pink bollworm?

a. Gram
b. Rice
c. Cotton
d. Wheat
Answer  Explanation 

ANSWER: Cotton

Explanation:
Cotton is affected by Pink bollworm. Most Indian cotton is heavily affected by this worm especially in the south.

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