Indian Economy Questions and Answers

Answer: D

ICICI is a financial institution.

The Industrial Credit and Investment Corporation of India was set up in 1955 with World Bank participation to lend to private industry. It converted into ICICI Bank through a reverse merger in 2002, and is now one of India's largest private banks.

Answer: C

It was constituted on 15 March 1950.

The Planning Commission was set up by a Cabinet resolution, with the Prime Minister as chairman, and had no constitutional or statutory basis - which is why it could be replaced by NITI Aayog by executive decision in 2015.

Answer: D

ICICI is a financial institution.

The Industrial Credit and Investment Corporation of India was set up in 1955 with World Bank participation to lend to private industry. It converted into ICICI Bank through a reverse merger in 2002, and is now one of India's largest private banks.

Answer: D

It was established at Surat.

The Surat Export Processing Zone at Sachin was the first in the private sector, developed by the Diamond Park promoters in Gujarat, in a state whose diamond and textile trades dominate its exports.

Answer: C

Short-term finance runs up to twelve months.

It meets working capital needs - stocks, wages, receivables - through cash credit, overdraft and trade credit. Medium-term finance runs one to five years and long-term beyond that.

Answer: C

It blends the Devanagari ‘ra’ and the Roman ‘R’.

The symbol was designed by D. Udaya Kumar of IIT Guwahati and adopted in 2010. The two parallel lines at the top suggest both the tricolour and the equals sign, and the letter without its horizontal bar is the Devanagari ra.

Answer: A

The ratio stood at about 80 : 20.

Long-term debt made up roughly four-fifths of India's external debt and short-term the remaining fifth. A high short-term share is the danger sign in an external debt profile, since it must be rolled over frequently - it was the immediate trigger of the crisis of 1991.

Answer: C

It came into force in 1987.

The Consumer Protection Act was passed in 1986 and brought into force in 1987, creating the District, State and National consumer disputes redressal forums. It was replaced by the Consumer Protection Act, 2019.

Answer: C

Land reform gives encouragement to the actual tillers.

Security of tenure and ownership give the cultivator both the incentive to invest in the land and the collateral to borrow for it. Abolishing intermediaries, fixing ceilings and regulating rent are all steps to that end.

Answer: C

The Life Insurance Corporation was established in 1956.

Life insurance was nationalised that year and the business of 245 insurers was transferred to the new corporation. The industry was reopened to private participation only in 2000.