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The following question based on Introduction to Indian Economy topic of indian economy mcq
(a) Taxation where the tax rate increases irrespective of fall or rise in taxable incomes.
(b) Taxation where the tax rate increase with the increase of taxable income
(c) Tax that takes a larger perentage from lowincome people than from high income people.
(d) None of above
The correct answers to the above question in:
Answer: (c)
A regressive tax is generally a tax that is applied uniformly. This means that it hits lower-income individuals harder.
The regressive tax imposes a greater burden (relative to resources) on the poor than on the rich — there is an inverse relationship between the tax rate and the taxpayer’s ability to pay as measured by assets, consumption, or income.
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Question : 1
Which of the following Mahatma Gandhi series of currency notes issued by the RBI has a drawing of the ‘Parliament House’ depicted on it?
a) Rs.100
b) Rs.500
c) Rs.50
d) Rs.10
Answer »Answer: (c)
The Reserve Bank has introduced banknotes in the Mahatma Gandhi Series since 1996 and has so far issued notes in the denominations of Rs.5, Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1000 in this series.
Mahatma Gandhi series of Rs.50 notes has a picture of the Parliament of India on its reverse.
Question : 2
What is the revised upper limit for foreign direct investment in telecom service companies ?
a) 51 per cent
b) 49 per cent
c) 66 per cent
d) 74 per cent
Answer »Answer: (d)
At present 74% to 100% FDI is permitted for various telecom services. 100% FDI is permitted in the area of telecom equipment manufacturing and provision of IT-enabled services. This has made telecom one of the major sectors attracting FDI inflows in India.
For Basic and cellular, Unified Access Services, National / International Long Distance, VSat, Public Mobile Radio Trunked Services (PMRTS), Global Mobile Personal Communications Services (GMPCS) and other value-added telecom services - FDI up to 74% (including FDI, FII, NRI, FCCBs, ADRs, GDRs, convertible preference shares, and proportionate foreign equity in Indian promoters/ Investing Company) is permitted. FDI up to 49% is permitted under automatic route and beyond 49% by relevant FIPB guidelines.
For ISP (with gateways), end to end bandwidth and Radio Paging Service - FDI up to 74% is permitted subject to licensing and security requirements. Here also, FDI up to 49% is permitted under automatic route and beyond 49% by FIPB guidelines.
For ISP without gateway, Infrastructure Providers providing dark fibre, right of way, duct space, Tower (Category-I), Electronic Mail and Voice Mail - FDI up to 100% is allowed subject to the conditions that such companies would divest 26% of their equity in favour of Indian public in 5 years if these companies are listed in other parts of the world.
Again, FDI up to 49% is permitted under automatic route and beyond 49% by FIPB guidelines.
Question : 3
The slogan ‘Garibi Hatao’ was included in the
a) First plan
b) Second plan
c) Fifth plan
d) Fourth plan
Answer »Answer: (c)
Garibi Hatao Desh Bachavo (Abolish Poverty to rescue the country) was the theme and slogan of Indira Gandhi’s 1971 election bid. It was part of the 5th Five Year Plan.
The plan prepared by D. Dhar proposed to achieve two main objectives viz, ‘removal of poverty’ (Garibi Hatao) and ‘attainment of self-reliance
Question : 4
Which one of the following is not a method of measurement of National Income?
a) Expenditure Method
b) Value Added Method
c) Income Method
d) Investment Method
Answer »Answer: (d)
The investment method is not a method of measurement of National Income.
There are three methods of measurement; income method, product or value-added method and the expenditure method. In the initial phase, the production of goods and services takes place.
During the course of production, payment is made to all factors of production like wages to labour etc. Once the production completes the output is distributed for different uses like consumption etc.
Question : 5
The bank cheques are processed by using
a) PMR
b) MICR
c) OMR
d) OCR
Answer »Answer: (b)
Magnetic Ink Character Recognition, or MICR, is a character-recognition technology used primarily by the banking industry to facilitate the processing of cheques and makes up the routing number and account number at the bottom of a cheque.
The technology allows computers to read the information (such as account numbers) off printed documents. Unlike barcodes or similar technologies, however, MICR codes can be easily read by humans.
MICR characters are printed in special typefaces with magnetic ink or toner, usually containing iron oxide.
Question : 6
What is known as the open market operation of the RBI ?
a) Auctioning of foreign exchange
b) Buying and selling of stocks
c) Trading in securities
d) Transactions in gold
Answer »Answer: (c)
OMOs are the market operations conducted by the Reserve Bank of India by way of sale/ purchase of Government securities to/ from the market with an objective to adjust the rupee liquidity conditions in the market on a durable basis.
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