Indian Economy GK Quiz-19

Indian Economy GK Quiz-19

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

    361. The 14th Finance Commission has recommended increase in States share in net proceeds from tax collection from 32% to

    (1) 35% 
    (2) 40%
    (3) 42% 
    (4) 45%
    361. (3) In the largest ever change in the percentage of devolution, the 14thFinance Commission (FFC) recommended that the States’ share in the net proceeds of the Union tax revenues be 42%. The recommendation of tax devolution at 42% is a huge jump from the 32% recommended by the 13thFinance Commission. 

    362. Fiscal policy in India is formulated by

    (1) Reserve Bank of India
    (2) Planning Commission
    (3) Finance Ministry
    (4) SEBI
    362. (3) Fiscal policy is the use of government revenue collection (mainly taxes) and expenditure (spending) to influence the economy. In India, the fiscal policy is formulated by the Union Ministry of Finance. Fiscal policy is distinguished from monetary policy that deals with the money supply, lending rates and interest rates and is formulated by the Reserve Bank of India.

    363. The new symbol of Indian currency is designed by

    (1) Santosh Kumar
    (2) Y.V. Reddy
    (3) Udaya Kumar
    (4) Dr. Rangarajan
    363. (3) Udaya Kumar, an assistant professor at IIT Guwahati, is the designer of the Indian rupee sign. The design resembles both the Devanagari letter “j” (ra) and the Latin capital letter “R”, with a double horizontal line at the top. The design was selected through an “open” competition among Indian residents.

    364. What is MUDRA?

    (1) Development and Refinance Agency
    (2) Scheme for Agricultural Insurance
    (3) New Planet Discovered
    (4) Development and Regulatory Authority for Urban Township
    364. (1) MUDRA (Micro Units Development and Refinance Agency) is a public sector finance institution that provides loans at low rates to micro-finance institutions and non-banking financial institutions which then provide credit to MSMEs. It was launched by Prime Minister Narendra Modi on 8 April 2015. 

    365. Which State in India has introduced FAT Tax on junk food

    (1) Rajasthan
    (2) Kerala
    (3) Andhra Pradesh
    (4) Bihar
    365. (2) In a first-of-its-kind move in the country, Kerala, in July 2016, introduced a ‘fat tax’ on the consumption of junk food items like pizzas and burgers sold through branded restaurants. The state government imposed 14.5% tax on branded restaurants selling items like tacos, pizzas, burgers, sandwiches, among others.

    366. The operational period of 12th Five Year Plan is

    (1) 2007–12 
    (2) 2012–17
    (3) 2015–20 
    (4) 2005–10
    366. (2) The operational period of 12th Five Year Plan is 2012-2017. This is the last five-year plan since the National Institution for Transforming India (NITI) Aayog, in May 2016, decided to come up with a 15-year vision document instead of five yearly plans. The first 15-year vision document will come into effect from 2017-18.

    367. Regional Rural Banks are sponsored by

    (1) Nationalised Commercial Bank
    (2) Reserve Bank of India
    (3) State Bank of India
    (4) Government of India
    367. (1) Regional Rural Banks (RRBs) were set up as government-sponsored, regional based rural lending institutions under the Regional Rural Banks Act, 1976. Every RRB is owned by three entities with their respective shares as follows: Central Government (50%); State government (15%); Sponsor bank (35%). Each Regional Rural Bank is sponsored by a Public-Sector Bank.

    368. The main effect of Direct Taxes is on

    (1) Food prices
    (2) Consumer goods
    (3) Capital goods
    (4) Income
    368. (4) Direct tax is a type of tax where the incidence and impact of taxation fall on the same entity. In
    general, it is a tax imposed on income as distinct from a tax imposed upon a transaction. These are
    largely taxes on income or wealth. Income tax, corporation tax, property tax, inheritance tax and gift
    tax are examples of direct tax.

    369. “Himayat” is a training cum placement programme for unemployed youth in the State of

    (1) Haryana
    (2) Punjab
    (3) Jammu and Kashmir
    (4) Himachal Pradesh
    369. (3) Himayat is a training-cum-placement programme for unemployed youth in Jammu and Kashmir. Under the program, the youth of the state will be provided short-term training for at least 3 months, in a range of skills for which there is good market demand. The scheme aims to train 1,00,000 youth in 5 years and provide atleast 75% of them with jobs.

    370. Redistribution of income in a country can be brought about through

    (1) Progressive taxation combined with progressive expenditure
    (2) Progressive taxation combined with regressive expenditure
    (3) Regressive taxation combined with regressive expenditure
    (4) Regressive taxation combined with progressive expenditure
    370. (1) Redistribution of income and redistribution of wealth are respectively the transfer of income and of wealth (including physical property) from some individuals to others by means of taxation, monetary policies, etc. This can be achieved with a combination or progressive taxation and progressive expenditure. Progressive tax is one such means since they are imposed in an attempt to reduce the tax incidence of people with a lower ability to pay, as such taxes shift the incidence increasingly to those with a higher ability-to-pay. Regarding the distributive impact of public expenditure, the principle of maximum social advantage should be the underlying criteria of public spending. Hence, progressive public expenditure is the best antidote to reduce income inequality existing in the society. The expenditure on social security like free medical aid, free education, subsidized houses etc. is progressive in nature. For example, if only the lower salaried employees were given free residential quarters, it is a case of progressive expenditure. Such expenditure helps to reduce the glaring inequality existing in the distribution of income. Progressive redistributive expenditure may also take the shape of
    provision of cheap or free services and commodities. Free primary education, free medical aid, subsidies to food and housing and the provision of free meals to school children are examples of this type of progressive grant. Such expenditure benefits the poorer among the poorest and helps to raise the living standards of the weaker sections.

    371. Who was the first Indian governor of the Reserve Bank of India?

    (1) C.D. Deshmukh
    (2) Sachindra Roy
    (3) S Mukherjee
    (4) None of these
    371. (1) C.D. Deshmukh was the first India to be appointed as the Governor of the Reserve Bank of Indian in 1943. He subsequently served as the Finance Minister in the Union Cabinet (1950–1956). He was a civil servant by profession.

    372. Which among the following is a tax levied by Centre and not shared with States ?

    (1) Sales Tax
    (2) Excise Duty
    (3) Corporation Tax
    (4) Income Tax
    372. (3) Taxes levied, collected and retained by the Centre are:
    Ø Corporation Tax (Corporate tax)
    Ø Customs Duties.
    Ø Surcharge on Income Tax.
    Ø Taxes on capital value of assets of individual and companies.
    Ø Fees on matters of the Union list.
    These taxes belong to the centre exclusively. In other words, no part of the proceeds of these taxes can be assigned to the states.

    373. ‘Pradhan Mantri Jan-Dhan Yojana’ has been launched for :

    (1) Promoting financial inclusion in the country
    (2) Providing loans to poorest people in the country
    (3) Providing financial help to the marginalised community
    (4) Promoting women in backward areas
    373. (1) Pradhan Mantri Jan Dhan Yojana is India's national mission for financial inclusion to ensure access to financial services, namely banking savings & deposit accounts, remittance, credit, insurance, pension in an affordable manner. This financial inclusion campaign was launched by the Prime Minister of India Narendra Modi on 28 August 2014.

    374. Which of the following sets of taxes belongs to Central Government?

    (1) Excise duty, Sales tax and Custom duty
    (2) Income tax, Custom duty and House tax
    (3) Excise duty, Custom duty and Income tax
    (4) Custom duty, Entertainment tax and Income tax
    374. (3) The taxing powers of the central government encompass taxes on income (except agricultural income), excise on goods produced (other than alcohol), customs duties, and inter-state sale of goods. The authority to levy a tax is comes from the Constitution which allocates the power to levy various taxes between the Centre and the State.

    375. The headquarters of RBI is in

    (1) Delhi 
    (2) Kanpur
    (3) Mumbai 
    (4) Nasik
    375. (3) The headquarters of Reserve Bank of India (RBI) is located at Mumbai, Maharashtra. Initially, the headquarter of RBI was in Calcutta (Now Kolkata) but in 1937 it was permanently moved to Bombay (now Mumbai). The RBI commenced its operations on 1 April, 1935 during the British Rule in accordance with the provisions of the Reserve Bank of India Act, 1934.

    376. Economic Survey in India is published officially, every year by the :

    (1) Reserve Bank of India
    (2) NITI Aayog
    (3) Ministry of Finance
    (4) Ministry of Commerce
    376. (3) The Economic Survey of India is a flagship annual document of the Ministry of Finance, Government of India. It reviews the developments in the Indian economy over the previous 12 months, summarizes the performance on major development programs, and highlights the policy initiatives of the government and the prospects of the economy.

    377. As per the 2016–17 Budget, the largest source of money to the Government of India is :

    (1) Income Tax
    (2) Corporation Tax
    (3) Nontax revenues
    (4) Borrowings and other liabilities
    377. (4) According to the 2016-17 budget, Borrowings and other liabilities contribute the maximum of about 21% of total government earnings. It is followed by Corporation Tax (19%) and Income Tax (14%). Corporation tax and income tax together constitute one third of the total government earnings.

    378. What is a bank rate ?

    (1) Rate at which Central bank of a country advances loans to other banks in the country
    (2) Rate at which banks advance loans to the customers
    (3) Rate at which banks lend among themselves
    (4) Rate at which banks lend to money lenders
    378. (1) Bank Rate refers to the official interest rate at which RBI will provide loans to the banking system which includes commercial/cooperative banks, development banks etc. Such loans are given out either by direct lending or by rediscounting (buying back) the bills of commercial banks and treasury bills. Thus, bank rate is also known as discount rate.

    379. Which of the following tax systems will help to reduce economic inequalities in India ?

    (1) Regressive Tax
    (2) Progressive Tax
    (3) Flat rate tax
    (4) None of these
    379. (2) A progressive tax is a tax in which the tax rate increases as the taxable amount increases. Progressive taxes are imposed in an attempt to reduce the tax incidence of people with a lower ability to pay, as such taxes shift the incidence increasingly to those with a higher ability-to-pay. It reduces tax burdens on people who can least afford to pay them and is, thus, considered as effective in reducing economic inequalities.

    380. Beginning from the Financial Year 2017–18 NITI Ayog plans to replace the 5 year plans with which of the following?

    (1) 5 year Vision Document
    (2) 10 year Vision Document
    (3) 15 year Vision Document
    (4) 20 year Vision Document
    380. (3) Abandoning the ancient concept of five-year plans that India has been following since 1951, the National Institution for Transforming India (NITI) Aayog has decided to come up with a 15-year vision document in tandem with global trends and economic growth.Cleared by Prime Minister Narendra Modi in May 2016, the new blueprint will be implemented after the last of the five-year plans, the 12th (2012- 17) ends in 2017.

    381. Which one of the following organisations is a financial institution ?

    (1) KVIC 
    (2) IFCO
    (3) SEBI 
    (4) ICICI
    381. (4) ICICI (Industrial Credit and Investment Corporation of India) Bank is an Indian multinational banking and financial services company headquartered in Mumbai, Maharashtra. It is the largest private sector bank and overall the second largest bank in India after State Bank of India.

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