Indian Economy Quiz: Day 133

April 4, 2023

Consider the following statements:
1. In a green economy, growth is driven by public and private investment into such economic activities, that allow prevention of the loss of biodiversity and ecosystem services.
2. The notion of green economy replaces the concept of sustainable development.
Which of the statements given below is/are incorrect?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

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Answer: (b)

Consider the following statements:
1. World’s first stock exchange was established in Antwerp, Belgium.
2. First stock exchange in India, the Bombay Stock Exchange was set up in 1870.
Which of the statements given below is/are correct?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) None

Show Answer

Answer: (c)

World’s first stock exchange was established in Antwerp, Belgium (then part of the Netherlands) in 1631
First stock exchange in India, the Bombay Stock Exchange known as The Native Share and Stock Brokers’ Association was set up in 1870

Which of the following statement(s) is/are correct?
1. Himachal Pradesh’s water cess Bill provides for levying a 10 paisa per cubic metre cess on projects with heads up to 30 metres.
2. A cess is different from taxes as it is imposed as an additional tax besides the existing tax.
Select the answer using the codes:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

Show Answer

Answer: (c)

Which of the following statements is/are correct?
1. Debentures are the debt instruments which can be issued by a listed firm only.
2. Derivative is a product whose value is derived from the value of underlying asset.
Select the answer using the codes:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

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Answer: (b)

Debentures are the debt instruments which may be issued by a listed or non-listed firm to raise funds in a security market.
Derivative is a product whose value is derived from the value of one or more basic variables, called bases. Underlying asset can be equity, forex, Commodity or any other asset.

Which of the following is/are correct?
1 Kuznets curve represent the level of inequality associated with economic development.
2. Phillips’s curve shows that inflation and unemployment have a stable and inverse relationship.
3. Lorenz curve represent economic inequality.
Select the answer using the codes given below:

(A) 1 and 3 only
(B) 2 and 3 only
(C) 1 and 2 only
(D) 1, 2 and 3

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Answer: (d)

In a situation of disguised unemployment, which of the following will be always true?
1 Marginal productivity of capital will be zero.
2. Productivity of labour will be less.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

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Answer: (b)

Disguised unemployment arises because more labourers work in the factory/land than are required.
And hence productivity i.e. production per unit of labour will be less.
In such case if we add more capital then production may increase but if we add more labour then production will not increase.
So, marginal productivity of capital = change in production/ change in capital will be positive but marginal productivity of labour = change in production /change in labour will be zero

Consider the following statements:
1. GSTN is registered as a not-for-profit company under the companies Act.
2. GST is a comprehensive indirect tax on manufacture, sale, and consumption of goods and services throughout India.
Select the correct statements using the code given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

Show Answer

Answer: (c)

Consider the following statements:
1 Bankruptcy is synonymous with insolvency.
2. The objective of the Insolvency and Bankruptcy Code IBC is to increase the credit supply in the economy.
Select the incorrect statement(s) using the code given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

Show Answer

Answer: (a)

Insolvency is a situation where individuals or companies are unable to repay their outstanding debt.
Bankruptcy, on the other hand, is a situation whereby a court of competent jurisdiction has declared a person or other entity insolvent, having passed appropriate orders to resolve it and protect the rights of the creditors.
It is a legal declaration of one’s inability to pay off debts.

During these plans a whole new agricultural strategy was implemented. It involving wide-spread distribution of high-yielding varieties of seeds, extensive use of fertilizers, exploitation of irrigation potential and soil conservation. It paved the path for the planned growth ahead. Which plan is being referred to here?

(A) Fourth Five year Plan
(B) Fifth Five year Plan
(C) Sixth Five year Plan
(D) Annual Plans 1966-69

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Answer: (d)

Consider the following statements:
1 Shadow banking is a term used to describe bank-like activities.
2. The term ‘shadow bank’ was coined by Paul McCulley in 2007.
Which of the above given statement(s) is/are correct?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor

Show Answer

Answer: (c)

Which of the following statement(s) is/are correct?
1 Wholesale price index is released by the Ministry of Commerce and Industry.
2. WPI is measured at first Stage and CPI is measured at final Stage.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

Show Answer

Answer: (c)

Consider the following statements regarding the Foreign Trade Policy 2023:
1 The new policy has no sunset date.
2. It aims to increase India’s goods and services exports to $2 trillion by 2025.
Which of the above given statement(s) is/are correct?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

Show Answer

Answer: (a)

The New policy hasreplaced the old policy that had been in place since 2015,the new policy kicks in from 2023-24 and aims to almost triple India’s goods and services exports to $2 trillion by 2030, from an estimated $760 billion in 2022-23.
The new policy will have no sunset date (ending date)and will be tweaked based on the emerging world trade scenario and industry feedback.

Consider the following statements regarding the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India scheme:
1 Phase 2 of the FAME scheme to subsidize electric vehicles has achieved only 51.96 per cent of its target.
2. In the recently presented Union Budget, Finance Minister doubled the FAME II budget but didn’t extend the timeline.
Which of the above given statement(s) is/are incorrect?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor

Show Answer

Answer: (d)

Consider the following statements:
1 Prepaid Payment Instruments facilitate purchase of goods and services, enable remittance facilities against the value stored therein.
2. PPIs can be issued by both banks and non-banks.
Which of the above given statement(s) is/are correct?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

Show Answer

Answer: (c)

The National Payments Corporation of India (NPCI) is a?

(A) A non-profit organization
(B) A for-profit organization
(C) An organisation incorporated under Banking Regulation Act
(D) None

Show Answer

Answer: (a)