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Indian Economy

Indian Economy - Important Points


21. Which of the following sectors of the Indian economy has the highest share in the country's Gross Domestic Product (GDP)?

A. Agriculture

B. Manufacturing

C. Services

D. Mining

Discuss Work Space

Answer: option c

Explanation:

The services sector has the highest share in India's GDP, accounting for around 55% of the total.

22. Which of the following is not a feature of a mixed economy?

A. Coexistence of public and private sectors

B. Central planning by the government

C. Free market forces

D. Emphasis on social welfare

Discuss Work Space

Answer: option b

Explanation:

In a mixed economy, both public and private sectors coexist, free market forces operate, and social welfare is emphasized, but central planning by the government is not a defining feature.

23. The National Rural Employment Guarantee Act (NREGA) guarantees how many days of employment per year to rural households in India?

A. 50 days

B. 100 days

C. 150 days

D. 200 days

Discuss Work Space

Answer: option b

Explanation:

NREGA guarantees 100 days of employment per year to rural

24. Which of the following is not a component of India's financial system?

A. Banks

B. Insurance companies

C. Stock exchanges

D. Agricultural cooperatives

Discuss Work Space

Answer: option d

Explanation:

The components of India's financial system include banks, insurance companies, stock exchanges, mutual funds, pension funds, and non-banking financial companies (NBFCs). Agricultural cooperatives are not considered a part of the financial system.

25. Which of the following is not a function of the Reserve Bank of India (RBI)?

A. Issuing currency notes and coins

B. Regulating the money supply in the economy

C. Conducting monetary policy

D. Regulating the prices of essential commodities

Discuss Work Space

Answer: option d

Explanation:

The Reserve Bank of India (RBI) is the central bank of India and has several functions, including issuing currency notes and coins, regulating the money supply in the economy, conducting monetary policy, supervising and regulating banks and financial institutions, and managing foreign exchange reserves. However, regulating the prices of essential commodities is not a function of the RBI.


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