86. Which group faces the highest unemployment rate in India?
a) Rural men
b) Agricultural laborers
c) Senior citizens
d) Urban educated youth
Answer:
d) Urban educated youth
Explanation:
Due to a severe lack of adequate white-collar job creation matching the output of graduates, urban educated youth structurally face the highest recorded unemployment rates in India.
87. If a country has a current account deficit, which of the following must be true?
a) The country’s foreign exchange reserves are increasing
b) The country is borrowing from abroad or selling assets
c) The country’s exports are higher than imports
d) The country has no fiscal deficit
Answer:
b) The country is borrowing from abroad or selling assets
Explanation:
A current account deficit indicates a nation is spending more on foreign trade than it is earning. This deficit must mathematically be financed by a net inflow of capital (borrowing or selling assets) in the financial account.
88. If the Reserve Bank of India (RBI) raises the Cash Reserve Ratio (CRR), what will be its likely impact on the money supply in the economy?
a) Decrease
b) Increase
c) Remain Unchanged
d) Increase initially, then decrease
Answer:
a) Decrease
Explanation:
Raising the CRR forces commercial banks to hold a larger fraction of their deposits in reserve with the RBI, leaving them with less money to lend, which decreases the overall money supply.
89. After the 1991 economic reforms, which sector experienced the fastest growth in India?
a) Agriculture
b) Manufacturing
c) Services
d) Mining
Answer:
c) Services
Explanation:
Following the liberalization reforms of 1991, India’s tertiary (services) sector, particularly IT, telecommunications, and finance, bypassed manufacturing to become the fastest-growing sector of the economy.
90. Which of the following programs aims to provide 100 days of guaranteed wage employment to rural households?
a) PM-KISAN
b) MGNREGA
c) Pradhan Mantri Gram Sadak Yojana
d) Startup India
Answer:
b) MGNREGA
Explanation:
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is an Indian labor law and social security measure that aims to guarantee the ‘right to work’ by providing 100 days of wage employment per year to rural households.
