Indian Economy Questions and Answers

Answer: D

India depends on imports for mercury.

There are no workable mercury deposits in the country, so the whole requirement is imported. India has large reserves of iron ore, bauxite and mica - it is in fact among the world's leading producers of all three.

Answer: A

The National Development Council mainly approves the Five Year Plans.

Set up in 1952, it was chaired by the Prime Minister and included all Chief Ministers and Union Cabinet ministers. A plan drawn up by the Planning Commission became operative only after the Council approved it. Like the Commission, it was wound up after 2014.

Answer: B

Uttar Pradesh produces the most sugarcane.

It accounts for the largest share of both area and output, with the crop concentrated in the western districts and the Terai. Maharashtra is second and has a higher sucrose recovery, since its cane is grown under irrigation in a drier climate.

Answer: B

Horlicks is a brand name.

A brand identifies a particular seller's product and distinguishes it from rivals; when registered it becomes a trademark. The company is a separate thing from the brand, and one company may own many brands.

Answer: A

The Ninth Plan had that theme.

Running from 1997 to 2002, it made 'growth with social justice and equity' its objective, with priority to agriculture, rural development and the basic minimum services.

Answer: D

It started in 1870.

The Bengal Iron Works Company set up its plant at Kulti near the Raniganj coalfield in 1870, the first successful modern iron works in India. Large-scale steel had to wait for Tata's Jamshedpur plant, which began production in 1912.

Answer: C

All of these can raise non-tax revenue.

Non-tax revenue comes from what the government sells or charges for - transport fares, electricity tariffs and irrigation water rates. All three sets of undertakings have run at losses, so improving their working converts a drain on the exchequer into a source of receipts.

Answer: C

The most appropriate cause is developments in national and international markets.

An export surplus arises when the balance of supply and demand at home and abroad favours selling outward - relative prices, exchange rates and world demand. Promotion measures and import restrictions can contribute, but market conditions are the governing factor.

Answer: C

It is signed by the Secretary of the Finance Ministry.

The one-rupee note is issued by the Government of India under the Coinage Act, not by the Reserve Bank, which is why it alone carries the Finance Secretary's signature. Every higher denomination is signed by the RBI Governor.

Answer: B

Central banking functions are performed by the Reserve Bank of India alone.

The RBI issues currency, acts as banker to the government and to the banks, manages foreign exchange and controls credit. The Central Bank of India, the State Bank of India and Punjab National Bank are all commercial banks despite their names.