JAIIB Paper 1 Module A Quiz 10

Such evidence points to a diversified pre-industrial economy with specialised crafts and commercial exchange alongside agriculture. It would be inaccurate to describe the economy as entirely subsistence-based or to assume that modern factory production and national accounts already existed.

Targets without a credible financing plan may not be implementable. Economic planning requires prioritisation and an assessment of available financial resources, including public revenue, borrowing and other legitimate sources; the plan cannot make resource constraints disappear.

Indicative planning provides broad directions and signals rather than centrally determining every production decision. Local adaptation can be part of implementation, especially in a diverse federal economy; it is not the same as either complete command allocation or the absence of public planning.

A change in the output mix does not automatically mean that labour has moved to higher-productivity activities. Structural transformation should be assessed using output, employment and productivity together, not by the services share alone.

Growing cotton is a primary-sector activity because it obtains a raw product from nature. Converting cotton into fabric is manufacturing and therefore secondary. Transport is a service and belongs to the tertiary sector. A value chain can involve multiple sectors.

The quinary sector is commonly used for high-level decision-making and leadership roles in government, business and major institutions. Data analysis and research are more often placed in the quaternary sector, while routine retail and farming belong to other sectors.

Irrigation can improve and stabilise crop yields; storage can reduce post-harvest losses; dairy diversifies household income; and market access can improve the ability to sell output. Together these measures address production, risk and value realisation rather than relying on one yield measure.

Sunrise sectors are emerging or rapidly expanding activities with potential for future growth, innovation and employment. Their potential depends on skills, investment, infrastructure and demand; the label does not guarantee that every firm will succeed or that employment will automatically rise.

Formal documentation and coverage under applicable labour and social-security frameworks are typical features of organised employment. Informality can occur in agriculture, manufacturing or services, so the distinction should not be reduced to a single industry or to whether a person is self-employed.

The RBI’s Third Amendment Directions dated 11 September 2026 changed the specified end date from 30 September 2026 to 31 August 2026. This is a narrow amendment to the treatment of specified deposit-related exclusions in ANBC computation, not a wholesale replacement of PSL categories or targets.

The PSL framework aims to ensure adequate credit flow to sectors important for socio-economic development, particularly specified segments whose credit needs may remain underserved despite being creditworthy. It does not remove normal credit appraisal or make loans risk-free.

A primary health centre expands access to preventive and curative care and is a social-infrastructure asset. Highways, freight rail and power transmission are usually classed as economic or physical infrastructure, although both kinds support development.

More reliable electricity reduces downtime, spoilage and disruption to equipment-intensive production and services. It can improve productivity and investment confidence, though it does not guarantee profitability or remove the need for other inputs.

Fair globalisation accepts the potential gains from international integration while recognising that benefits and adjustment costs can be unevenly distributed. Skills support and targeted protection for vulnerable groups help workers adapt without requiring complete isolation from trade.

Reducing unnecessary industrial licensing and entry barriers changes the operating environment for producing goods and services, so it is a real-sector reform. Bank capital requirements and reserve ratios are financial-sector/regulatory measures, while securities settlement changes market infrastructure.

Simplified and more predictable customs procedures can reduce compliance time and transaction costs for exporters. This is trade facilitation; it does not itself mean that the exchange rate changes or that all imports are prohibited.

Foreign direct investment is associated with a lasting interest and a degree of influence or control in an enterprise. Portfolio investment generally involves financial securities without the same management involvement or lasting business relationship.

The IMF’s central role includes supporting international monetary cooperation and addressing balance-of-payments difficulties. The World Bank Group focuses substantially on long-term development financing and poverty reduction. Their mandates overlap in some programmes but are not identical.

Economic growth measures an increase in real output, while economic development is broader and includes improvements in living standards, capabilities and access to services. Higher GDP per person is important but does not prove that development gains are inclusive or comprehensive.

The financial system acts as a bridge that channels savings from surplus units (savers) to deficit units (investors/borrowers).