Practice Quiz set 10 - indian economy mcq Online Quiz (set-1) For All Competitive Exams
Q-1) Which from the following is not a Navaratna PSU ?
(a)
(b)
(c)
(d)
Navratna was the title given originally to nine Public Sector Enterprises (PSEs) identified by the Government of India in 1997 as "public sector companies that have comparative advantages", giving them greater autonomy to compete in the global market so as to "support [them] in their drive to become global giants".
Life Insurance Corporation has not been conferred this status.
Q-2) Which of the following is the characteristic of progressive tax? - Marginal tax rate should be increasing.
- Marginal tax rates should be more than average tax rate.
Select the correct answer using the code given below:
(a)
(b)
(c)
(d)
A progressive tax is a tax in which the tax rate increases as the taxable base amount increases Regarding progressive tax, marginal tax rate should be increasing and it should be more than average tax rate.
Q-3) Among the following, which is the reason for different types of economic system? - Time requirement
- Money requirement
(a)
(b)
(c)
(d)
Different types of economy are dependent on time which helps in providing several ways to structure an economy.
Q-4) Consider the following : - Market borrowing
- Treasury bills
- Special securities issued to RBI
Which of these is/are components of internal debt?
(a)
(b)
(c)
(d)
All these statements are components of internal debt.
Q-5) Estimation of national income in India are not accurate as there is: - illiteracy
- non-monetised consumption
- inflation
- people holding multiple jobs
(a)
(b)
(c)
(d)
Q-6) Consider the following statements in regard to ‘Inflation Index bonds’?
- Investment in these bonds is more risky as these bonds increase the inflation risk attached to the investment.
- It is better financial instrument compared to gold to hedge the risk rising out of volatile economy.
Which of the statements given above is/are correct?
(a)
(b)
(c)
(d)
Inflation-indexed bonds are bonds where the principal is indexed to inflation. They are thus designed to cut out the inflation risk of an investment.
These bonds thus decrease the inflation risk attached to the investment. Moreover, these bonds are a better hedge than gold in a volatile economy as gold does.
Q-7) Which of the following grants/grant direct credit assistance to rural households?
- Regional Rural Banks
- National Bank for Agriculture and Rural Development
- Land Development Bank
Select the correct answer using the codes given below :
(a)
(b)
(c)
(d)
NABARD doesn’t give “direct” credit assistance.
It provides credit via intermediaries such as microfinance companies, co-operative society, RRB.
Therefore, 2 is false.
Q-8) The Minimum Alternative Tax (MAT) was introduced in the budget of the Government of India for the year?
(a)
(b)
(c)
(d)
The Minimum Alternative Tax (MAT) was introduced for the first time in the Budget for the year 1996-97.
Minimum alternate tax or MAT is a tax levied on firms/ companies or limited liability partnerships (LLPs) making abundant profits as well as distributing dividends to its shareholders who leveraging on the features of the Indian Taxation system do not contribute towards the government’s taxation kitty.
Thus, for such corporates, a minimal tax amounting to some fixed percentage of book profits i.e. profits according to accounting records is charged as minimal alternative tax (MAT).
Q-9) Consider the following statements:
- Indian Clearing Corporation has been granted the status of Qualified Central Counterparty (QCCP) by RBI.
- QCCP status means to adheres to the principles for Financial Market Infrastructure.
Which of the statements given above is/are correct?
(a)
(b)
(c)
(d)
The Reserve Bank of India granted the status of Qualified Central Counterparty to Clearing Corporation of India Ltd. (CCIL).
QCCP status means that CCIL now adheres to the principles for Financial Market Infrastructure an international standard to handle counterparty risk on derivatives.
Q-10) In India, rural incomes are generally lower than urban incomes. Which of the following reasons account for this?
- A large number of farmers are illiterate and know little about scientific agriculture.
- Prices of primary products are lower than those of manufactured products.
- Investment in agriculture has been lower when compared to investment in the industry.
(a)
(b)
(c)
(d)
In India a large number of farmers are illiterate and know little about scientific agriculture, prices of primary products are lower than those of manufactured products and Investment in agriculture has been lower when compared to investment in the industry.
All these reasons are responsible for lower rural income.