Q.21) Answer (d)
The concept of the inclusive growth is based on both economic and social empowerment of ordinary and under privileged individuals. Thus all the statement are correct.
Q.22) Answer (a)
To reap the benefits of demographic dividend, skills have to be developed because a relatively larger portion of population fall under the category of productive labour force when there is a demographic dividend.
Q.23) Answer (d)
General Price rise may be caused by an increase in the money supply as the real value of the money reduces. The higher aggregate price level will reduce the purchasing power subsequently reducing the consumer spending. Effective demand also increases when there is less purchasing power due to inflation.
Q.24) Answer (d)
Extremely high rates of inflation are generally associated with high rates of money growth. It is often the result of financing large deficits by printing money.
Q.25) Answer (c)
The quantity of money demanded is inversely related to the interest rate.
Q.26) Answer (c)
A country’s economic growth is reflected through capital formation, which in turn encourages private enterprises in enhancing the growth of a country’s economy.
Q.27) Answer (c)
When interest rates decrease then investment expenditure by businesses on capital goods like factories and equipment increase in an economy.
Q.28) Answer (c)
Non-plan expenditure covers interest payments, subsidies (mainly on food and fertilisers), wage and salary payments to government employees, grants to States and Union Territories governments, pensions, police, economic services in various sectors, defence, loans to public enterprises, loans to States, Union Territories and foreign governments.
Q.29) Answer (c)
When inflation becomes very high, the RBI decreases supply of money (to check inflation) by adopting light monetary policy.
Q.30) Answer (a)
Government can go for petroleum products deregulation. Rationalizing subsidies is also the solution.
Q.31) Answer (c)
Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.
Q.32) Answer (a)
Union Government accepted the 14th Finance Commission’s recommendation to devolve an unprecedented 42 per cent of the divisible pool to states during 20015-16 to 2019-20, against 32 per cent suggested by the previous commission.
Q.33) Answer (c)
Convertibility of rupee implies freely permitting the conversion of rupee to other currencies and vice versa. Currency Convertibility is the ease with which a country’s currency can be converted into gold or another currency.
Q.34) Answer (d)
The Government of India has established NITI Aayog to replace the Planning Commission. The Union Government of India announced formation of NITI Aayog on 1 January 2015 and the first meeting of NITI Aayog was held on 8 February 2015.
Q.35) Answer (b)
Around 800 species of orchids found in the Northeast region.