JAIIB Paper 1 Module A Quiz 4

Pre-colonial India was not economically uniform, but agriculture was central to livelihoods and artisanal production, crafts, local markets and long-distance trade were significant. The other options project modern industrial and institutional features backwards or incorrectly minimise agriculture.

Plan financing historically drew on domestic resources such as taxation, public-sector surpluses, market borrowing and small savings, alongside external assistance and other sources. Foreign assistance was not the only source, and monetary financing or private donations alone did not fund the plans.

Indicative planning guides expectations and sets priorities while leaving many production and investment decisions to market participants. Command planning involves much more direct central control; the scenario does not describe a complete command system or the absence of planning.

The quinary sector is often used for the highest-level decision-making and leadership activities, such as senior policy, executive and strategic functions. Farming belongs to the primary sector, manufacturing to the secondary sector and routine transport services to the tertiary sector.

“Sunrise sector” is an informal term for a sector with emerging opportunities and growth potential. The term does not guarantee growth, impose a size limit, or refer only to traditional subsistence production.

If a sector produces a larger share of output without a similar increase in its employment share, relative labour productivity may have risen. The data alone do not prove that output fell, wages rose for every worker, or formal status changed.

PSL classification depends on the purpose, borrower, amount and other conditions specified in RBI directions. A borrower being an individual, the presence of collateral or an internal marketing label does not by itself make a loan eligible. The RBI issued the PSL Directions 2025 and subsequent amendments, including an amendment dated 11 September 2026; banks should use the applicable consolidated framework.

The revised MSME criteria effective 1 April 2025 use both investment and turnover ceilings. The limits were enhanced for micro, small and medium enterprises; employee count alone is not the defining test, and turnover remains relevant. Micro ceilings are ₹2.5 crore investment and ₹10 crore turnover; small are ₹25 crore and ₹100 crore; medium are ₹125 crore and ₹500 crore.

Udyam Registration is an official registration mechanism for MSMEs and can help enterprises establish their status for schemes and benefits where eligible. It does not guarantee credit, remove all other legal obligations or serve only large listed companies.

A PPP is a contractual arrangement in which public and private parties share roles and allocate risks for delivering infrastructure or services. A cash transfer is a welfare instrument, a fully public departmental project has no private concessionaire, and monetary policy concerns money and financial conditions.

Preventive healthcare can reduce disease burden, absenteeism and avoidable treatment costs, while supporting healthier and more productive lives. It cannot eliminate all illness or replace other forms of infrastructure.

Fair globalisation recognises the potential gains from cross-border trade and investment while stressing inclusive benefits, decent work, social protection and support for people and regions facing adjustment costs. It does not require abandoning standards, equalising all export earnings or ending global integration.

Industrial delicensing and easing product-market entry affect production, competition and the real economy. SLR and capital-adequacy rules concern banking and financial regulation, while securities settlement is part of financial-market infrastructure.

Duty remission is intended to neutralise eligible duties and taxes embedded in exported goods, helping avoid taxing exports and supporting competitiveness. It does not guarantee a trade surplus or eliminate all customs and compliance procedures. Specific scheme eligibility depends on the applicable foreign-trade rules.

FDI is associated with a lasting interest and a degree of influence or control in an enterprise. Portfolio flows typically involve securities investment without the same management influence. Currency denomination, cross-border status and the expectation of returns do not by themselves distinguish FDI.

Real per-capita income growth is an indicator of economic growth, but development is broader and includes health, education, living standards and distributional outcomes. Higher income alone does not prove that human development is complete.

Regional cooperation can deepen trade and investment links and coordinate policies or infrastructure. It does not automatically create a monetary union, eliminate national policy autonomy or balance every member’s trade.

SDG 1 is “No Poverty.” SDG 4 concerns quality education, SDG 9 covers industry, innovation and infrastructure, and SDG 13 concerns climate action.

Section 135 of the Companies Act, 2013 and the CSR Rules apply to companies meeting specified financial thresholds and prescribe governance, spending and reporting requirements, subject to the law and rules. CSR is not a universal identical obligation for every business, nor a substitute for compliance with other laws.

Rapid urban growth can strain housing, transport, water and sanitation when service capacity lags. Coordinated land-use planning and infrastructure investment address the underlying capacity constraints; the other options do not directly resolve them.