introduction to indian economy section 10 MCQ Questions & Answers Detailed Explanation

Answer: (b)

The shareable central taxes include corporation tax, income tax, wealth tax, customs, excise duty and service tax. The taxes, which are not shared with states include some cesses like education and road.

Income Tax in India includes all income except the agricultural income that is levied and collected by the central government (List I, Entry 82).

Answer: (a)

The NSE’s key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalization.

Nifty Fifty was an informal term used to refer to 50 popular large-cap stocks on the New York Stock Exchange in the 1960s and 1970s that were widely regarded as solid buy and hold growth stocks. NIFTY means National Index for Fifty.

Answer: (c)

In India, inflation is measured by the wholesale price Index . The wholesale prices of commodities of base year are compared with wholesale prices of current year to compute inflation.

Answer: (c)

Answer: (d)

Dadabhai, known as the Grand Old Man, wrote the book ‘Poverty and Un-British Rule in India’ describing the theory of economic drain of India during British rule.

Answer: (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.