Indian Economy Quiz:

ANSWER – B

• It is a discontinuous process
• It measures both the quantitative and qualitative aspects of change in national income
• It is a long-term process

Answer: D

National Income at Constant Prices

• If goods and services produced in a year are valued at constant prices, that is, prices of the base year, we get national income at constant prices.
• For example, the CSO treats 2011-2012 as the base year in India, and if the goods and services produced in 2019-2020 are valued at prices prevailing in 2011-2012 (base year prices), then it will be called national income at constant prices for the year 2019-2020.
• It is change in volume of physical output produced during the year, which affects national income at constant prices because prices remain constant.
• National income at constant prices is also called real national income.

Answer: A

• The Green Revolution was crop specific and region specific, and created interpersonal and regional inequalities.
• The use of HYV seeds displaced indigenous species and agricultural system that had been built up over generations.
• The in-migration of labor is believed to have depressed wage rate of labor in Punjab.

Answer: A

• With a progressive tax, the tax burden is higher for the wealthy than it is for those with lower incomes. This kind of tax helps lower-income families pay for basics such as shelter, food, and transportation. A progressive tax allows them to spend a larger share of their incomes on cost-of-living expenses.

Answer: D

• Green Revolution was launched in the Kharif season of 1966.
• Norman Borlaug is hailed as “the father of Green Revolution,” “agriculture’s greatest spokesperson,” and “the man who saved a billion lives.”
• The noted agriculture scientist M.S. Swaminathan is hailed as the father of Green Revolution in India.
• M.S. Randhawa, the former civil servant, botanist, and historian is called the father of Green Revolution in Punjab.

Answer: A

Reports by IMF:

1. Global Financial Stability Report.
2. World Economic Outlook.

World Economic Outlook

• It is a survey by the IMF that is usually published twice a year in the months of April and October. It analyzes and predicts global economic developments during the near and medium term.

Answer: C

Shrinkflation is the practice of reducing the size of a product while maintaining its sticker price. Raising the price per given amount is a strategy employed by companies, mainly in the food and beverage industries, to stealthily boost profit margins or maintain them in the face of rising input costs.

Answer: B

• The government has transformed Banks Board Bureau (BBB) into Financial Services Institutions Bureau (FSIB) by making some amendments.
• BBB is a self-governing autonomous and advisory body of the Central Government to improve the management of public sector banks.
• Statement 1 is incorrect: The Chairman is selected by the central government and the RBI governor does not head it.
• Statements 2 and 3 are correct: Banks Board Bureau recommends the selection of head for Public Sector Banks. It also develops strategies for raising capital and improving the performance of PSBs.

Answer: B

Answer: D

Foreign Exchange Reserves

• Foreign exchange reserves are assets held on reserve by a central bank in foreign currencies, which can include bonds, treasury bills and other government securities.
• It needs to be noted that most foreign exchange reserves are held in US dollars.
• India’s Forex Reserve include:

1. Foreign Currency Assets
2. Gold reserves
3. Special Drawing Rights
4. Reserve Tranche Position with the International Monetary Fund (IMF).