Ans: B

Exp:

Pair 1 is correct: M. Visvesvaraya’s Plan emphasised shifting from agriculture to industrialisation and also increasing employment in industries. It aimed to double national income within 10 years. In his book titled Planned Economy for India (1934), Visvesvaraya set the goal of poverty eradication through growth.

Pair 2 is correct: Gandhian Plan drafted by Acharya Shriman Narayan Agarwal. It emphasized economic decentralisation and the promotion of small-scale and cottage industries.

Pair 3 is incorrect: FICCl Proposal – It intended to end laissez-faire and presented the opinion of the capitalist class and advocated for setting up National Planning Commission

Pair 4 is incorrect: People’s Plan drafted by M.N. Roy for a period of 10 years. The main priorities of the plan were agricultural development and an increase in agricultural production, along with maintaining an equal balance with industrialisation.

Ans: D

Exp:

NITI Aayog, also known as the National Institution for Transforming India, is a policy think tank and a government agency in India. It was established on 1 January 2015, to replace the Planning Commission. The primary objective of NITI Aayog is to foster sustainable development and promote cooperative federalism in India. Some of the indexes released by NITI Aayog are :

• India  Innovation Index
• Sustainable Development Goal India index 
• State Energy and Climate  Index      
• State Health Index
• District Hospital Index            
• State Energy Index  
• School Education Quality Index,
• Composite Water Management Index, 
• Export Competitiveness Index

Ans: D

Exp:

Ans: A

Exp:

Statement 1 is correct: The High Powered money is also known as ‘reserve money’ or ‘monetary base’ It  is the liability of the monetary authority of the country, i.e., the RBI. Reserves refer to commercial bank deposits and any money held in reserves by these institutions at the central bank, whereas money in circulation refers to anything held and used by the general public. It acts as a basis for credit creation.

Statement 2 is correct: It can be expanded through the money multiplier effect of the fractional reserve banking system. The money multiplier measures how an initial deposit results in a larger final increase in the total money supply. It is a ratio of commercial bank money to central bank money. It is based on the fractional reserve banking system, where banks are required to keep a certain percentage of deposits as reserves. 

Statement 3 is incorrect: The High powered money includes all of the physical paper and coin currency in circulation and bank reserves held by the central bank.

Reference: Chapter 3.pmd (ncert.nic.in)

Ans: B

Exp:

Pair 1 is correct: Fiat Money is the currency that is issued by the government and is not backed by a physical commodity, such as gold or silver. The value of fiat money is derived from the relationship between supply and demand and the stability of the issuing government. They do not have intrinsic value like a gold or silver coin (Intrinsic Value refers to the value of the metal that the coin contains). Currency notes and coins are called fiat money. They are also called legal tenders, as they cannot be refused by any citizen of the country for settlement of any kind of transaction.

Pair 2 is correct: M3 and M4 are known as broad money. 

M4 = M3 + Total deposits with Post Office savings organisations (excluding National Savings Certificates) 

M3 = M1 + Net time deposits of commercial banks. The word ‘net’ implies that only deposits from the public held by the banks are to be included in the money supply. Interbank deposits, which a commercial bank holds in other commercial banks, are not to be regarded as part of the money supply.

M1 = CU + DD, where, CU is currency (notes plus coins) held by the public and DD is net demand deposits held by commercial banks. 

Hence, Demand Deposits are included in the Broad Money.

Pair 3 is incorrect: M1 and M2 are known as narrow money. 

M1 = Currency notes plus coins + Net Demand Deposits held by the commercial banks.

 M2 = M1 + Savings deposits with Post Office savings banks .

Hence, Time deposits are not included in the Narrow Money.

Reference: Chapter 3.pmd (ncert.nic.in)