Exercise 2

Question 21 :

Reserve Bank of India was nationalized in the year

A). 1935
B). 1945
C). 1949
D). 1969
Answer : Option C

Explanation :

RBI established in 1935 and nationalized in 1949.

Question 22 :

In India, rural incomes are generally lower than the urban incomes, which of the following reasons account for this?

A large number of farmers are illiterate and know little about scientific agriculture
Prices of primary products are lower than those of manufactured products
Investment in agriculture has been low when compared to investment in industry

A). I, II, III
B). I, II
C). I, III
Answer : Option A

Question 23 :

National Agricultural Insurance Scheme replacing Comprehensive Crop Insurance Scheme was introduced in the year

A). 1997
B). 1998
C). 1999
D). 2000
Answer : Option C

Question 24 :

If the fiscal deficit of the Union Government is Rs. 75,000 crores relending to State is Rs. 25,000 crores, interest payments are Rs. 25,000 crores, what is the amount of the primary deficit?

A). Rs. 50,000 crores
B). Rs. 25,000 crores
C). Rs. 1,00,000 crores
D). Rs. 1,25,000 crores
Answer : Option A

Question 25 :

Fiscal deficit in the Union Budget means

A). the difference between current expenditure and current revenue
B). net increase in Union Governments borrowings from the Reserve Bank of India
C). the sum of budgetary deficit and net increase in internal and external borrowings
D). the sum of monetized deficit and budgetary deficit
Answer : Option C