Directions: In the following Indian economy general knowledge questions, four answers are given, and only one answer is correct. Read the questions and choose the correct answers. If you want to check the answer, click on the answer button and know the correct answer with an explanation.
1. When was the decimal system of Indian currency started in India?
Answer: (d) 1957
Solution: Indian coinage went decimal on April 1, 1957, ten years after it gained Independence from the British. India changed from the rupee, anna, pice system to decimal currency. Before 1957, one rupee was divided into 16 annas or 64 pice, with each anna therefore equal to 4 pice. The rupee remained unchanged in value and nomenclature. However, one rupee was now divided into 100 ‘paisa’.
2. The Indian economy can be most appropriately described as a ______.
Answer: (d) Mixed economy
Solution: India has adopted a mixed economy. All the basic industries such as railways, post and telegraph, defence production, atomic energy etc. are in the public sector. Industries dealing with consumer goods are in the private sector.
3. What is the animal on the insignia of the RBI?
Answer: (a) Tiger
Solution: The logo of the Reserve Bank of India comprises a tiger walking underneath a palm tree.
4. Inflation is caused by____.
Decrease in supply of goods
Increase in supply of goods
Increase in money supply
Decrease in money supply
Answer: (c) Increase in money supply.
Solution: In economics, inflation is the rise in the price of goods and services. Economists generally agree that a long sustained period of inflation is caused by excessive growth of the money supply.
5. What is the revised upper limit for foreign direct investment in defence manufacturing sector companies?
Answer: (b) 74%
Solution: In 2020, the Indian government changed its foreign direct investment (FDI) limit up to 74 per cent in the defence manufacturing sector, which was previously limited to 49 per cent.