The Indian Economy

The narrative would mainly focus on explaining the various aspects of the Indian Economy and would also attempt to clear out various doubts through the applications of multiple-choice questions. The informative essay shall also aim on providing brief explanations of the various solutions to the mentioned MCQ questions to make the learners clear about the topic of understanding.

The aspect of understanding and learning about the topic of economy is very vital as it defines and aims at making optimum and viable use of different assets,  resources and utilities so that they can be provided to involve them in the process of making them beneficial to the common public as well protecting the quality and quantity of resources so that they can take part in long term future development and progress. The economy also focuses on learning in detail about the manufacture, sharing and uptake of vital resources and utilities. Economics doesn’t only involve taking care of the financial part rather it also focuses on proper decision making, maintaining a well-engaged system of balancing money with resources, providing a proper goal that would focus both on enhancing the condition of an individual also providing a visionary approach on the growth and development of the whole

In contrast to discussing the topic of the Indian economy and later going on to discuss the various vital aspects of the Indian economy through the MCQs,  we first need to be briefed about the topic of the Indian economy. The aspect of the Indian economy can be defined as an in-between and income-oriented developing market nation. India also comes sixth in the list of GDP( Gross Domestic Product) and third under the contention of purchasing aspect of power parity. Post-independent India saw the implementation of various policies and norms that were aimed at strengthening the Indian economy and also improving the economic and financial flow in the arena of changing market conditions. The recent upgrades and economic conditions since the onset of the 21st Century saw an elevation in levels of GDP from 6 to 7% and it also needs to be mentioned that between the years 2013-2018 India also achieved its position in the globe’s surpassing primary developing economy even by coming ahead of China. The economical position further gains its renounce as it is considered that India contained the most prominent economy in the globe ranging from the 1ST to the 19th century period of the economical history.

Multiple choice questions for improvising the understanding

The aim of learning through the aspect of MCQs help learners and readers acquire a good understanding of the various major and small details of the topic. The various MCQs discussed below aim at attempting to improve the topic depth and grasp a fundamental approach to the topic of the Indian economy. The answers to the MCQs have also been provided for better reference.

1. Which of the mentioned properties is applied by the Indian Banks as a fundamental benchmark to calculate the Indian currency loans and credits?

1. 1. Rate of interest of Bank
   2. Rate of interest according to the base
   3. The rate of MCLR
   4. The interest according to  the repo

Answer: The correct answer will be option C which is the MCLR interest rate. The MCLR stands for the marginal cost of funds based Lending rate. It sets an optimum interest norm under which the financial establishments are not allowed to provide financial loans which come with exceptions in certain conditions.

2. The correct term among the mentioned revolutions that properly corresponds to ‘fertilizers’ is?

1. 1. Silver Revolution
   2. The grey revolution
   3. Golden Revolution
   4. Pink Revolution

Answer: The correct answer among the following will be option B which is the grey revolution. Grey revolution is an important event in the economical history of India that emphasized more on elevating levels of fertilizer manufacture. The grey revolution primarily helped in bringing out the cons of the green revolution by which the possibilities of malfunctioning irrigation equipment and ill effects of high chemical involvement in the agriculture field came to light.

3. How is the CD ratio defined in the field of Banking strategies?

1. 1. Cash Deposit Ratio
   2. Credit Debit Ratio
   3. Cash Debt Ratio
   4. Current Debt cumulative proportion

Answer: The correct answer among the following is option A which is the cash deposit proportion ratio. It is defined as the ratio of in acquisition cash and financial balances with correspondence to the Reserve Bank of India through the cumulative weightage of the deposits based on aggregates. It primarily represents the cash regulated by the banks per Indian rupee of accepted deposits.

4. Which among the below mentioned option states the financial accounting time of the Reserve Bank of India?

1. 1. April to March
   2. From January to December
   3. Extending between September to August
   4. July-June

Answer: The period extending from July to June is considered the official accounting year for the Reserve Bank of India. The accounting year was established in correspondence with the calendar of the central government. The establishment of the accounting year was undertaken by the RBI directors.

5. If a non-profit establishment is transformed into a profit-acquiring company, the procedure would be stated as:

1. 1. Dematerialization
   2. Rematerialization
   3. Demutualization
   4. Decentralization

Answer: The correct option among the following will be option C which is Demutualization. Demutualization is a process in which a cooperative organization is managed by its members and is converted to an establishment that is further shared and managed by the shareholders.

6. Which among the below mentioned can be stated as the primary goal of ATAL Incubators?

1. 1. To encourage creativity
   2. To instil and grow the sense of entrepreneurship
   3. To develop industries
   4. To enhance product development and quality

Answers: The correct option among the following will be option B which is the aim to instill and grow a sense of entrepreneurship. ATAL incubators is a growth-oriented flagship approach to enhance and help encourage the idea of innovative culture and encourage the culture of entrepreneurship and promote new business ideas among the Indian youth and growth sector.

7. An uncontrolled increase in Population rate of population explosion in a nation points towards?

1. 1. Increased birth rate and the elevated death count
   2. Elevated birth rate and the decreased death count
   3. Low birth count and increased death rate
   4. decreased birth rate and elevated death stats

Answer: The correct option among the following will be option C which is elevated birth rate and decreased death count. The situation of population explosion denotes a high rate of increase in birth stats and also gathers its data from the census undertaken by the government. It also represents issues that may interfere in managing the vital distribution of resources and utilities among the population. 

8. The elasticity of demand is the condition of demand to?

1. 1. Increase or decrease on the change of price
   2. Elevation of the increase in price
   3. Reduction condition of the decreased levels of price
   4. Fixed constant condition of requirement and demand on conditions of increase and decrease in prices

Answer: The correct option among the following will be option A which is the condition of increase or decrease on the change of price. The demand elasticity states the sensitivity requirement of a resource or good according to the various economic properties such as the rate of a commodity or the condition of income.

9. The term Capital is defined as the financial wealth of?

1. 1. Which is further utilized in the generation of wealth
   2. Wealth is stored and saved inside storage and lockers
   3. The wealth that is kept for the sake of property
   4. The wealth that is saved and kept for future utilization

Answer: The correct option among the following will be option A which is the wealth that is further used for the generation of more wealth. The term capital includes a very vital meaning in the field of both economical and financial aspects as it focuses on generating and involves policies that improvise to generate more financial wealth rather than only focusing on savings and consumption according to needs.

10. The criteria for defining the poverty line primarily depends on the factor of?

1. 1. Condition of living and accommodation 
   2. The type and criteria of employment
   3. Expenditure required for the acquisition of goods and associated resources
   4. Literacy level

Answer: The correct answer among the following will be option C which is the expenditure required for the acquisition of goods,  utilities and important resources. The designated poverty line criteria are defined based on the financial expenditure required to buy or acquire resources, and commodities according to the income generated annually.