Economic Infrastructure - Questions & Answers

MULTIPLE CHOICE QUESTIONS

1. Economic infrastructure refers to all the basic facilities which are necessary for ____________.
(a) economic growth    (b) human development    (c) Both (a) and (b)    (d) Neither (a) nor (b)
Answer: (a) economic growth

2. Which of the following is a component of economic infrastructure?
(a) Health    (b) Education    (c) Energy    (d) None of these
Answer: (c) Energy

3. Indian Railways had its beginning in ____________ when first passenger train ran between Bombay to Thane-a distance of 34 km.
(a) 1857    (b) 1853    (c) 1951    (d) 1793
Answer: (b) 1853

4. ____________ is the most suitable means of transport for carrying heavy and bulky goods over long distances.
(a) Air transport    (b) Road transport    (c) Rail transport    (d) None of these
Answer: (c) Rail transport

5. ____________ are the main roads in India which connect various state capitals.
(a) Rural roads    (b) District road    (c) State highways    (d) National highways
Answer: (d) National highways

6. ____________ is the fastest means of transport.
(a) Water transport    (b) Rail transport    (c) Road transport    (d) Air transport
Answer: (d) Air transport

7. Postal services were introduced in ____________ in India.
(a) 1901    (b) 1921    (c) 1837    (d) 1853
Answer: (c) 1837

8. ____________ is the latest means of communication.
(a) Telephone    (b) Fax    (c) Television    (d) Internet
Answer: (d) Internet

9. With the rapid rate of economic growth, there has been a corresponding increase in the use of energy.
(a) True    (b) False
Answer: (a) True

10. Which of the following has the largest source of power in India?
(a) Wind power    (b) Solar power    (c) Hydro electricity    (d) Thermal power
Answer: (d) Thermal power

11. Which of the following is a renewable resource of energy?
(a) Solar energy    (b) Wind energy    (c) Both (a) and (b)    (d) None of these
Answer: (c) Both (a) and (b)

12. Power generated from water is called ____________.
(a) Thermal Power    (b) Hydro-electric power    (c) Atomic Power    (d) Tidal Power
Answer: (b) Hydro-electric power

13. ____________ is the largest commercial bank of India.
(a) Reserve Bank of India    (b) ICICI Bank    (c) Punjab National Bank    (d) State Bank of India
Answer: (d) State Bank of India

14. ____________ is a person to whom the amount of a cheque is payable.
(a) Drawer    (b) Drawers    (c) Payee    (d) Customer
Answer: (c) Payee

15. Which is/are the main sources of irrigation in India?
(a) Canals    (b) Tanks    (c) Wells    (d) All of these
Answer: (d) All of these

16. When was the Insurance Regulatory and Development Authority of India (IRDA) was constituted?
(a) 1938    (b) 1972    (c) 1999    (d) 2001
Answer: (c) 1999

17. Which of the following types of companies/organisation issue ULIP?
(a) Banks    (b) Reserve Bank of India    (c) Insurance Companies    (d) Private Companies
Answer: (c) Insurance Companies

18. Which of the following is the only public sector company in the field of life insurance?
(a) New India Assurance Company    (b) Oriental Insurance Company    (c) ICICI Prudential Life Insurance    (d) Life Insurance Corporation of India
Answer: (d) Life Insurance Corporation of India

19. Which statement is NOT true about Reserve Bank of India?
(a) It is the Central Bank of India    (b) Individuals can open account in RBI    (c) It was established in 1935    (d) It enjoy monopoly over issue of currency notes
Answer: (b) Individuals can open account in RBI

20. People keep their savings with banks because ____________.
(a) It is safe    (b) It earns interest income    (c) It can be withdrawn any time    (d) All of these
Answer: (d) All of these

21. Which of the following organisations is responsible for regulation and development of the Insurance sector in India
(a) TRAI    (b) IRDA    (c) SEBI    (d) RBI
Answer: (b) IRDA

22. When was the General Insurance Corporation of India (GIC) incorporated).
(a) 1970    (b) 1972    (c) 1974    (d) 1975
Answer: (b) 1972

23. ____________ may be described as a social device to reduce or eliminate risk of loss to life and property.
(a) Insurance    (b) Loan    (c) Investment    (d) None of these
Answer: (a) Insurance

24. Which of the following is NOT a type of waterway transport?
(a) Coastal shipping    (b) Inland waterways    (c) Pipelines    (d) Ocean liners
Answer: (c) Pipelines

25. Which of the following organisations is responsible for regulating the telecommunications sector in India?
(a) TRAI    (b) DoT    (c) IRDA    (d) SEBI
Answer: (a) TRAI


ASSERTION - REASONING & MATCHING BASED QUESTIONS

1. From the set of statements given in column I and Column II, choose the incorrect pair of statements :

Column I	Column II
(a) Axis Bank	(i) Public Sector Bank
(b) BSNL	(ii) Public Sector Enterprises
(c) Renewable Source of Energy	(iii) Thermal Power
(d) Health Insurance	(iv) Cover life risk

Options:
(a) a - (i)    (b) b - (ii)    (c) c - (iii)    (d) d - (iv)
Answer: (a) a - (i)

2. Identify the correct sequence of alternative given in Column II by matching them with reptective terms in Column I :

Column I	Column II
(A) Indian Railways	(i) 1949
(B) Postal Service	(ii) 1850
(C) Nationalisation of RBI	(iii) 1956
(D) Life Insurance Corporation	(iv) 1837

Choose the correct alternative:
(a) A - (ii), (B) - (iv), (C) - (i), (D) - (iii)    (b) A - (iv), (B) - (i), (C) - (ii), (D) - (iii)
(c) A - (ii), (B) - (i), (C) - (iv), (D) - (iii)    (d) A - (iii), (B) - (iv), (C) - (iii), (D) - (i)
Answer: (a) A - (ii), (B) - (iv), (C) - (i), (D) - (iii)

3. Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives:
Assertion (A): Solar energy is an example of renewable source of energy.
Reason (R): Solar energy is renewable because the sun will always produce power.
Alternatives :
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
Answer: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

4. Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives:
Assertion (A): Railways are capable of carrying large number of people comfortably and safe.
Reason (R): Air transport is free from geographical hurdles such as mountains rivers, deserts etc.
Alternatives :
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
Answer: (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).


SHORT ANSWER TYPE QUESTIONS

1. Explain the term 'infrastructure'.
Ans: Infrastructure refers to the facilities, activities and services which support operation and development of other sectors of the economy. They are also useful in the daily life of the society.

2. Mention the principal modes of transport in India.
Ans: The principal modes of transport in India are railways, road transport, water transport, and air transport.

3. Give two advantages of a well-developed transport system.
Ans: (i) A good transport system helps to expand the market for goods.
(ii) Transport system also helps in the movement of labour from surplus areas to deficit areas.

4. Give two advantages of road transport.
Ans: (i) Except road transport, no other means of transport can reach remote areas.
(ii) Road transport is useful for a variety of vehicles like bullock-cart, cycles, trucks, buses, motor cars.

5. How would you classify roads in India?
Ans: Indian roads are classified into different parts as National Highways, State Highways, District Roads, Village Roads, and Border Roads.

6. Write two functions of commercial banks.
Ans: (i) Commercial banks accept deposits from the public who have surplus funds with them and pay them interest.
(ii) Commercial banks give loans to the borrowers who are in need of funds and earn interest in turn.

7. What is E-banking?
Ans: E-banking is a process of banking services and products through electronic channels like personal computer or mobile phone.

8. What are different methods of power generation in India? Name them.
Ans: The different methods of power generation in India are Thermal Power, Hydro-electric Power, Nuclear Power, and Renewable sources of energy.

9. Mention important sources of irrigation in India.
Ans: Important sources of irrigation in India are: (i) Canals, (ii) Wells, and (iii) Tanks.


LONG ANSWER TYPE QUESTIONS

1. Describe the contribution of transport to the development of Indian economy.
Ans: A good transport system acts as the body and bones of the economy. It facilitates the easy movement of raw materials and fuel, increases the mobility of labour, greatly expands the market for goods, helps remove distance barriers, provides vast employment opportunities, raises the standard of living, and encourages tourism and foreign trade.

2. Describe briefly the role of railways in the Indian transport system.
Ans: Railways are the backbone of the country's logistic sector and its biggest nationalised enterprise. They are highly suitable and economical for carrying heavy and bulky goods, as well as a large number of people, over long distances safely. They provide employment to over 1.2 million people and play a vital role in minimizing famines by quickly transporting foodgrains to hit areas.

3. Discuss briefly the significance of postal services.
Ans: Postal services are significant because they are available at relatively much lower rates than other means of communication. They encourage ordinary people to make small savings through various schemes. By making mail and remittances highly accessible, they facilitate the growth of internal and external trade, aid in distant learning, and efficiently connect remote rural populations with the rest of the country.

4. What is E-banking? Explain its importance.
Ans: E-banking means banking operations through electronic media like a personal computer or mobile phone. Its importance lies in providing 24 hours, 365 days a year service to customers. It significantly lowers transaction costs, develops a sense of financial discipline, promotes total transparency in transactions, and vastly reduces the physical load on bank branches.

5. Describe briefly the chief sources of power in India.
Ans: The chief sources of power in India include: (i) Thermal Power, generated from coal, oil, and natural gas, making up about 66.8% of generation. (ii) Hydro-electric Power, generated from fast-flowing rivers or large dams, accounting for 13.6%. (iii) Nuclear Power, generated from radioactive elements like uranium, making up just 2.1%. (iv) Renewable Energy sources like solar and wind power, which account for 17.5%.

6. What is the importance of irrigation in the Indian economy?
Ans: Irrigation is the lifeline for Indian agriculture. Because rainfall in India is uncertain and unequally distributed, irrigation ensures a reliable water supply. It enables multiple cropping (growing 2 or 3 crops a year), is essential for the successful use of High-Yielding Varieties (HYV) of seeds, helps in controlling floods and famines, and creates new farm employment opportunities.

7. "Lack of Infrastructural facilities has retarded the process of economic development in India." Explain the statement.
Ans: This statement is true as weak infrastructure causes severe setbacks. A lack of permanent irrigation keeps agricultural productivity low. Shortages in power, transport, and banking systems slow down industrial growth and deter foreign investment. Furthermore, it results in the under-utilisation of vast natural resources, maintains a low standard of living, and creates tremendous pressure on land and inadequate transport networks.

8. Mention any four points indicating the importance of irrigation in Indian agriculture.
Ans: (i) The development of agricultural production and productivity depends strictly upon the timely availability of water in sufficient quantity.
(ii) Rainfall in India is highly unpredictable, making artificial irrigation essential.
(iii) It allows for multiple cropping, enabling farmers to grow more than one crop in a year.
(iv) It is vital for the High-Yielding Varieties Programme, which requires substantial water to be successful.


QUESTION BANK

1. Define the term infrastructure.
Ans. Infrastructure refers to the facilities, activities and services which support operation and development of other sectors of the economy. They are also useful in the daily life of the society.

2. Mention one advantage of infrastructure.
Ans. Infrastructure can increase the productivity of factors of production.

3. What are the two main components of Infrastructure?
Ans. Two Components of Infrastructure :
(i) Economic infrastructure.
(ii) Social infrastructure.

4. What do you mean by economic infrastructure?
Ans. Economic infrastructure consists of those facilities which affect the production and distribution directly. Transport and communication, power, irrigation, etc. fall under economic infrastructure of an economy.

5. What are the main means of transport in India?
Ans. Means of transport in India are railways, road transport, water transport, air transport.

6. Write three points of significance of transport system.
Ans. (i) A good transport system helps to expand the market for goods.
(ii) Transport system also helps in the movement of labour from surplus areas to deficit areas.
(iii) A well developed transport system encourages tourism in the country.

7. How are roads classified in India?
Ans. Indian roads are classified into different parts as National Highways, State Highways, District Roads, Village Roads, Border Roads.

8. Give two advantages of rail transport.
Ans. Two Advantages of Rail Transport
(i) It is most suitable means of transport for carrying heavy and bulky goods over long distances.
(ii) Railways are an important source of employment.

9. Give two advantages of road transport.
Ans. Two Advantages of Road Transport
(i) Except road transport, no other means of transport can reach remote areas.
(ii) Road transport is useful for a variety of vehicles like bullock-cart, cycles, trucks, buses, motor cars.

10. Give two merits of water transport
Ans. (i) Water transport is the cheapest means of transport as it involves no cost of construction of tracks, roads etc.
(ii) It is a suitable means of transport for heavy and bulky goods.

11. Give two advantages of air transport.
Ans. (i) It is most suitable means of transport for very long distances.
(ii) Air transport is free from geographical hurdles like mountains, oceans, rivers, etc.

12. When were postal services introduced in India?
Ans. Postal services were introduced in 1837 in India.

13. Give any three sources of irrigation.
Ans. (i) Canals (ii) Wells (iii) Tanks.

14. Explain the importance of energy. OR Why do we need energy? Explain.
Ans. Energy is needed because of the following reasons:
(i) It is essential for industries.
(ii) It is used on a large scale in agriculture and related areas like production and transportation of fertilisers, pesticides and farm equipment.
(iii) It is needed by households for cooking, lighting and heating.

15. What are the three basic sources of generating power?
Ans. Electricity is the most common term used for power. Three basic sources of power generation in India are :
(i) Thermal Power : It is the major source of electricity. It is generated from coal, oil and natural gas. It accounts for about 66.8 per cent of total generation of power.
(ii) Hydro-electric Power : It is generated from the waters of fast flowing rivers or high dams. It is the cheapest among all the three sources and it is pollution free. It is a renewable source of energy. The share of hydro electric power in total power generation is 13.6 per cent.
(iii) Nuclear Power : It is generated from radioactive elements like uranium and thorium. It accounts for just 2.1 per cent in total power generation.

16. What is a commercial bank? Write two functions of commercial bank.
Ans. (a) Commercial Bank is a financial institution which accepts deposits from the public and provides loans to such persons who need it.
(b) Two Functions :
(i) Commercial banks accept deposits from the public who have surplus funds with them and pay them interest.
(ii) Commercial banks give loans to the borrowers who are in need of funds and earn interest in turn.

17. How do banks play an important role in the economy of India?
Ans. (i) They keep money of the people in its safe custody.
(ii) They mediate between those who have surplus money and those who are in need of money.
(iii) They provide loans to a large number of people at low interest rate.
(iv) Special provision are made through banks for the upliftment of agriculture and industry like waiving of loans of the farmers.

18. How many general and life insurance companies are currently operating in India?
Ans. Presently, there are 33 general insurance companies and 24 life insurance companies are operating in India.

19. What is the IRDA?
Ans. The IRDA (Insurance Regulatory and Development Authority) is an autonomous body responsible for the regulation and development of the insurance industry in India.

20. What is e-rupee?
Ans. E-rupee is digital electronic version of Indian currency notes.

21. What is importance of life insurance?
Ans. (i) Life insurance provides protection to the family in case of untimely death of an individual.
(ii) It gives financial protection at old age when earning capacity is reduced.
(iii) Life insurance is not only a protection but also an investment because certain sum of money is either returned at the time of maturity or at the time of death.

22. What is E-banking?
Ans. E-banking is a process of banking services and products through electronic channels like personal computer mobile phone.

23. What is general insurance?
Ans. Non-life insurance policies are called general insurance.

24. What is Unit Linked Insurance Plan (ULIP)?
Ans. ULIP is an investment cum insurance plan. The premiums provide coverage as well as they are for the purchase of units of market-linked equity, debt and other instruments. This has the potential to provide an opportunity for wealth creation along with the life cover provision. Life Insurance coverage plans also come with tax benefits under section 80 C.

25. What is insurance premium?
Ans. Premium is an amount paid periodically to the insurer by the insured for covering his risk.

26. How many public sector banks are in India at present?
Ans. There are a total of 12 public sector banks in India.

27. What are the major sectors of the Indian telecommunication industry?
Ans. Telephone, internet and television.

28. When were 5G services launched in India?
Ans. October 1, 2022.