Indian Economy GK Quiz-17

Indian Economy GK Quiz-17

Indian Economy Multiple Choice Questions (MCQs) Quiz for State and UPSC Civil Services Examinations. Objective Questions on Indian Economy for competitive examinations.

    321. Name the Indian State with the highest tax revenue.

    (1) Assam 
    (2) Sikkim
    (3) Karnataka
    (4) Maharashtra
    Answer:
    321. (4) As per data released by Brickwork Ratings in December 2015, Maharashtra earns approximately 70 per cent of its total receipts through tax revenues — the highest among the bigger states — followed by Gujarat and Tamil Nadu. It is the biggest economy within India at Rs 16.87 lakh crore in terms of gross state domestic product (GSDP). The state also contributesto about 40 percent of India’s income tax collections.

    322. When was RBI established?

    (1) 1943 
    (2) 1935
    (3) 1939 
    (4) 1936
    Answer:
    322. (2) The Reserve Bank of India (RBI) was founded on 1 April 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. Following India’s independence on 15 August 1947, the RBI was nationalised on 1 January 1949.

    323. When was the Mumbai Stock Exchange set up?

    (1) 1947 
    (2) 1900
    (3) 1857 
    (4) 1875
    Answer:
    323. (4) The Mumbai Stock Exchange, also known as Bombay Stock Exchange (BSE), was established in 1875. It claims to be Asia’s first stock exchange and the world’s fastest stock exchange, with a median trade speed of 6 microseconds.

    324. Who prepares National Income in India?

    (1) Planning commission
    (2) Central Statistical Organization
    (3) Reserve Bank of India
    (4) National Income Committee
    Answer:
    324. (2) Since 1955 the national income estimates are being prepared by Central Statistical Organisation (CSO).The CSO uses different methods like the Product Method, Income Method and Expenditure method for various sectors in the process of estimating the National Income.

    325. How do you calculate the poverty line?

    (1) Income of an individual under a threshold value published by Government of India
    (2) Income of any individual less than 50 INR in a day
    (3) Average income of all the individuals in a country
    (4) Income of a family less than 100 INR in a day
    Answer:
    325. (1) The poverty line in India defines a threshold income; households earning below this threshold are considered poor. In 2011, the Suresh Tendulkar Committee defined the poverty line on the basis of
    monthly spending on food, education, health, electricity and transport. According to this estimate, a person who spends Rs. 27.2 in rural areas and Rs. 33.3 in urban areas a day are defined as living below
    the poverty line.

    326. Which of the following are used to calculate economic freedom of a country?

    (1) Rule of Law, Regulatory Efficiency, Market Openness, Government Size
    (2) Gross domestic product, Regulatory Efficiency, Market Openness, Foreign Direct Investment
    (3) Rule of Law, Inflation, Gross domestic product growth rate, Government Size
    (4) Rule of Law, Regulatory Efficiency, Inflation, Foreign Direct Investment
    Answer:
    326. (4) The economic freedom of a country is calculated using the Economic Freedom Index that focuses on four key aspects of the economic environment over which governments typically exercise policy control: l Rule of law (property rights, freedom from corruption); l Government size (fiscal freedom, government spending); l Regulatory efficiency (business freedom, labor freedom, monetary freedom); and l Market openness (trade freedom, investment freedom, financial freedom).

    327. Which one of the following is not a scheme/project of the present Government?

    (1) AMRUT
    (2) Swachh Bharat
    (3) AYUSH
    (4) Jan Dhan Yojana
    Answer:
    327. (2) Swachh Bharat is India’s biggest ever cleanliness campaign that was originally known as Nirmal Bharat Abhiyan and Total Sanitation Campaign from 1999 to 2012. On 2 October 2014, the Nirmal Bharat Abhiyan campaign was relaunched as Swachh Bharat Abhiyan (Clean India Mission) which aims to eradicate open defecation by 2019.

    328. In India which of the following taxes is levied by the State Governments?

    (1) Excise duty on liquor
    (2) Capital gains tax
    (3) Customs tax
    (4) Corporation tax
    Answer:
    328. (1) Excise duty on production few items including that on liquor is imposed by state governments. Excise duty on alcohol, alcoholic preparations, and narcotic substances is collected by the State Government and is called “State Excise” duty. For most of the states, excise duty is the second largest tax revenue after sales taxes (State VAT).

    329. Which one is not the main objective of fiscal policy in India?

    (1) To increase liquidity in the economy
    (2) To promote price stability
    (3) To minimize the inequalities of income & wealth
    (4) To promote employment opportunity
    Answer:
    329. (1) Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation’s economy. It is used to stabilize the economy over the course of the business cycle. Fiscal policy is the sister strategy to monetary policy through which a central bank influences a nation’s money supply.

    330. Commercial banks lend to which of the following Priority sectors ?

    (1) Heavy Industries
    (2) Agriculture, Small scale industries
    (3) Foreign Companies
    (4) State Government in emergency situation
    Answer:
    330. (2) Priority sector lending is an important role given by the Reserve Bank of India (RBI) to the banks for providing a specified portion of the bank lending to few specific sectors like agriculture and allied activities, micro and small enterprises, and weaker sections. It aims to ensure that adequate institutional credit flows into some of the vulnerable sectors of the economy, which may not be attractive for the banks from the point of view of profitability.

    331. What is the accounting year of the Reserve Bank of India ?

    (1) April-March
    (2) July-June
    (3) October-September
    (4) January-December
    Answer:
    331. (2) The Reserve Bank’s accounting year is July to June.After its establishment on 1 April 1935, the RBI changed its accounting year from January-December to July-June on 11 March 1940. Normally, RBI remains closed for public transactions every July 1 on account of its annual closing of accounts.

    332. The GST (Goods and Services Tax), recently passed by Government will be levied on which of the following products ?

    (1) Petroleum Crude
    (2) Tobacco
    (3) Natural Gas
    (4) Aviation Turbine Fuel
    Answer:
    332. (2) GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Products like kerosene, naphtha and LPG will be under the ambit of GST, while five items in the basket — crude oil, natural gas, aviation fuel, diesel and petrol — have been excluded during the initial years.

    333. Fixed Foreign Exchange Rate can be changed by

    (1) RBI 
    (2) SEBI
    (3) Ministry of Finance
    (4) FIPB
    Answer:
    333. (3) The Reserve Bank of India has the responsibility of maintaining fixed exchange rates with all other member countries of the International Monetary Fund. Besides maintaining the rate of exchange of the rupee, the Reserve Bank has to act as the custodian of India’s reserve of international currencies. It operates the exchange control system.

    334. If Reserve Bank of India reduces the cash reserve ratio, it will :

    (1) increase credit creation
    (2) decrease credit creation
    (3) have no impact on credit creation
    (4) have no definite impact on credit creation
    Answer:
    334. (1) Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank.Increase in CRR means that banks have less funds available and money is sucked out of circulation; on the contrary, reduction in CRR leads to credit creation. CRR is used by RBI to control liquidity in the banking system.

    335. Which of the following controls the insurance business of India?

    (1) RBI 
    (2) IDBI
    (3) SEBI 
    (4) IRDA
    Answer:
    335. (4) The Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous, statutory agency tasked with regulating and promoting the insurance and re-insurance industries in India. It was constituted by the Insurance Regulatory and Development Authority Act, 1999.

    336. The Swarna Jayanti Shahari Rojgar Yojna (SJSRY) mainly aims at creating employment opportunities for

    (1) both self employment and wage employment in urban areas
    (2) self employment in urban areas only
    (3) wage employment in urban areas only
    (4) None of these
    Answer:
    336. (1) The Swarna Jayanti Shahari Rozgar Yojana (SJSRY) seeks to provide gainful employment to the urban unemployed or underemployed through the setting up of self-employment ventures or provision of wage employment. It is a Centrally Sponsored Scheme which came into effect on 1 December 1997.

    337. National Income of India is compiled by

    (1) Finance Commission
    (2) Indian Statistical Institute
    (3) National Development Council
    (4) Central Statistical Organization
    Answer:
    337. (4) The National Income Unit of the Central Statistical Organisation (CSO) is responsible for the estimation of national income. It is responsible for coordination of statistical activities in India, and evolving and maintaining statistical standards. CSO’s other works include: conduct of Annual Survey of Industries, Economic Censuses and its follow up surveys, compilation of Consumer Price Indices for Urban Non-Manual Employees, etc.

    338. Golden Hand Shake scheme is the name of

    (1) Retirement Scheme
    (2) Voluntary Retirement Scheme
    (3) One Rank One Pension Scheme
    (4) Private Sector Retirement Scheme
    Answer:
    338. (2) The Voluntary Severance Scheme (VSS) is popularly known as Golden Hand Shake. It is a stipulation in an employment agreement which states that the employer will provide a significant severance package if the employee loses their job. A golden handshake is usually provided to top executives for loss of employment through layoffs, firing or even retirement.

    339. What is the maximum number of days of employment a rural poor would get under ‘MGNREGA’?

    (1) 180 days 
    (2) 120 days
    (3) 100 days 
    (4) 90 days
    Answer:
    339. (3) Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), is an Indian labour law and social security measure that aims to guarantee the ‘right to work’. It aims to enhance livelihood security in rural areas by providing at least 100 days of wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.

    340. Scheduled bank is a bank which is

    (1) Nationalised
    (2) Not Nationalised
    (3) Based in foreign Country
    (4) Included in the second schedule of RBI
    Answer:
    340. (4) A scheduled bank, in India, refers to a bank which is listed in the 2ndSchedule of the Reserve Bank of India Act, 1934. Banks not under this Schedule are called non-scheduled banks. Scheduled banks are usually private, foreign, and nationalized banks operating in India.

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