Indian Economy Quiz: Day 138

April 12, 2023

Consider the following statements:
1. External Benchmark Lending Rates (EBLR) are the lending rates set by the banks based on external benchmarks such as repo rate.
2. The RBI has projected real GDP growth for 2023-24 at 6.5 per cent.
Which of the statements given below is/are correct?

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

Show Answer

Answer: (c)

External Benchmark Lending Rates (EBLR) are the lending rates set by the banks based on external benchmarks such as repo rate, 91 days Treasury bill and 182 days Treasury bill.
The RBI has projected real GDP growth for 2023-24 at 6.5 per cent.

Consider the following statements:
1. In case of indirect tax, the incidence of tax, and impact of tax is on the same person.
2. Direct Tax is progressive in nature.
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: (b)

In Indirect tax, the incidence of tax and impact of tax do not lie on the same person.

Which of the following statement(s) is/are correct?
1. Income Tax Act 1961 governs Corporate tax.
2. Effective tax rate which companies pay in India comprises of Corporate Taxes, surcharges and cess.
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 regarding Inclusive growth?
1. Inclusive growth is fuelled by market driven sources of growth.
2. Inclusive growth focuses on productive employment.
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)

Inclusive growth is typically fueled by market-driven sources of growth with the government playing a facilitating role.
Inclusive growth focuses on both the pace and pattern of growth.
How growth is generated is critical for accelerating poverty reduction, hence it focuses on productive employment rather than income redistribution.

Which of the following is/are correct?
1. The unemployment caused due to the workers living far from the regions and are unable to move to the locations where jobs are available is an example of Structural unemployment.
2. Cyclical Unemployment is a result of the business cycle.
3. Disguised Unemployment is traced in the agricultural sector of India
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

Show Answer

Answer: (d)

Which of the following is correct?
1. NITI Aayog’s recommendations require approval by the Union Cabinet and thereby is binding.
2. NITI Aayog has financial allocation powers for policy programmes.
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: (d)

NITI Aayog has no financial role.
They are only policy guide maps for the government.
The three-year action plan only provides a broad roadmap to the government and does not outline any schemes or allocations as it has no financial powers.
Since it doesn’t require approval by the Union Cabinet, its recommendations are not binding on the government.

Which of the following measures can be implemented to address the deficit in Balance of Trade of India?
1 Recognition and setting up of towns of export.
2. Giving Income Tax concessions to exporters.
3. Promoting PLI scheme for different industries
Select the correct statements using the code given below:

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

Show Answer

Answer: (d)

Consider the following statements:
1 The year 2023 marks the birth tercentenary of Adam Smith.
2. Adam Smith wrote “An Inquiry into the Nature and Causes of the Wealth of Nations” in 1776.
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: (d)

This year i.e. 2023 marks the birth tercentenary of Adam Smith, widely regarded as the father of modern economics.
While he is among the most cited in economic conversation, particularly the “invisible hand”, his works are among the least read.
Adam Smith wrote two books, “The Theory of Moral Sentiments” in 1759 and the celebrated “An Inquiry into the Nature and Causes of the Wealth of Nations” in 1776.

The plan undertook drastic policy measures to combat the bad economic situation and to undertake an annual average growth of 5.6% through introduction of fiscal & economic reforms including liberalisation under the Prime Minister ship of Shri P V Narasimha Rao. Which plan is being referred to here?

(A) Fourth Five year Plan
(B) Fifth Five year Plan
(C) Sixth Five year Plan
(D) Eighth Five year Plan

Show Answer

Answer: (d)

If the US Central Bank raises their interest rate, then it may lead to:

(A) Rupee depreciation
(B) Rupee appreciation
(C) Investors moving to India
(D) Increase in money supply

Show Answer

Answer: (a)

Which of the following statement(s) is/are correct regarding the Purchasing Managers Index?
1. The PMI is compiled by IHS Markit.
2. It is a survey-based measure that asks the respondents about changes in their perception about key business variables as compared with the previous month.
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)

Purchasing Managers Index-

It is a survey-based measure that asks the respondents about changes in their perception about key business variables as compared with the previous month.
The purposeof the PMIis to provide information about current and future business conditions to company decision makers, analysts, and investors.
It iscalculatedseparately for the manufacturing and services sectors and then a composite index is also constructed.
The PMIis a number from 0 to 100.
A print above 50means expansion, while a score below that denotes contraction.
A reading at 50indicates no change.

Consider the following statements:
1 The bank credit is the total amount of money that a person or business can borrow from a bank.
2. Bank credit grew in the fiscal ended March 2023 due to higher demand for funds.
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)

Bank credit grew by 15 per cent year-on-year in the fiscal ended March 2023 due to low base of last year and higher demand for funds as economic activity picked up.
Bank advances rose to Rs 136.75 lakh crore as on March 24, 2023 from Rs 118.91 lakh crore as on March 25, 2022, according to the provisional data released by the Reserve Bank of India (RBI).

Consider the following statements regarding the Stand up India Scheme:
1 Of the funds sanctioned till March 2023, about 80 per cent of the loans have been given to women entrepreneurs.
2. It has been extended up to 2030.
3. It is based on the third pillar of National Mission for Financial Inclusion namely “Funding the unfunded”
4. Stand up India Scheme was in launched in 2014.
Which of the above given statement(s) is/are incorrect?

(A) 1 and 3 only
(B) 2 and 4 only
(C) 3 and 4 only
(D) 1 and 2 only

Show Answer

Answer: (a)

Stand up India Scheme, launched on April 5, 2016, with a focus on economic empowerment and job creation, has been extended up to 2025.
It was aimed to promote entrepreneurship amongst women and SC/ST to help them in starting a greenfield enterprise in manufacturing, services or the trading sector.
Of the funds sanctioned till March 21, 2023, about 80 per cent of the loans have been given to women entrepreneurs.
It is based on the third pillar of National Mission for Financial Inclusion namely “Funding the unfunded”

Consider the following statements:
1. The world's largest single-location oil refinery complex is located at Jamnagar.
2. Windfall taxes are designed to tax the profits a company derives from an external, sometimes unprecedented event.
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)

Reliance Industries Ltd, which operates the world’s largest single-location oil refinery complex at Jamnagar in Gujarat, and Rosneft-backed Nayara Energy are primary exporters of fuel in India.
Windfall taxes are designed to tax the profits a company derives from an external, sometimes unprecedented event— for instance, the energy price-rise as a result of the Russia-Ukraine conflict.

The Unified Payments Interface (UPI) supports which of the following?

(A) Transactions between deposit accounts at banks
(B) Transactions between banks intermediated by pre-paid instruments including wallets
(C) Pre-sanctioned credit lines at banks
(D) All of the above

Show Answer

Answer: (d)