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Indian Economy (Important facts-1) – HPExams.in
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Indian Economy (Important facts-1)

  • Inflation is an increase in the average level of prices. This implies that- Money supply grows at a higher rate than GDP in real terms.
  • The existence of Black Money in the economy is recoged as a threat to the Indian economic system. Which features is/are attributes of Black Money- It refers to money generated through illegitimate means such as drug trade, crime, terrorism and corruption. Wealth may have been generated through legitimate means but income thereon has not been declared nor the taxes due paid to the government.
  • Which is not a reason for cost-push inflation- The payment of dearness allowance to employees
  • Among the supply side measures to contain inflation is- postponing public expenditure- maintaining price levels through an effective PDS.
  • The purpose of central and state warehousing corporations is to- provide storage facility.
  • The rationale given in the first plan for state intervention in the industrial sector was that- private sector was neither willing nor capable of investing in certain sectors.
  • Population experts refer to the possible demographie dividend’ that may acerue to India around 2016 AD. They are referring to the phenomenon of- a surge in the population in the productive age group.
  • The Enforcement Directorate (ED) of the Finance Ministry is responsible for- the provisions of Foreign Exchange Management Act (FEMA). 2. Collection of imelligence regarding possible cases of money laundering. 3.Confiscation of property of crime under Prevention of Money Laundering Act (PMLA)
  • Which statement is true of the Indian economy- 1. Its share of world population is 17.5 per cent but its share of world GDP is less than 2 per cent; 2. Almost 50 per cent of its working population is engaged in agriculture but the contribution of agriculture to the national income is only about 22 per cent, 3. India occupies only 2.4 per cent of the world’s geographical area.
  • The only two areas reserved for the public sector under the Industrial Policy of Government of India are- atomic energy and railway transport
  • Which statement is correct regarding the Foreign Exchange Management Act (FEMA), 1999- 1. Payments of foreign exchange to anyone outside the country or receipt of remittance from anyone outside is regulated by the Act; 2. Any resident India can remit up to US Dollar 200,000 per year to acquire real estate outside the country . 3. The deposits made into a Non-Resident External (NRE) Account is freely repatriable.
  • According to the Census 2011, one state in India has made tremendous progress in total literacy. However, it also accounted for the widest gap between female and male literacy. The state in question is- Bihar
  • Which is not one of the findings of the 2011 Census- The ratio of women to men (sex ratio) has further declined when compared to the Census 2001 figures.
  • Government of India’s Disinvestment Policy provides for strategic sale’ of PSU shares. The new policy involves- sale with a change in management;
  • Which is not true of the Regional Rural Banks (RRBs)- They are co-sponsored by Reserve Bank of India.
  • ‘Level playing field’ argument of industries requires- domestic industry to be treated on par with MNCs.
  • A company is said to be sick’ when the accumulated loss at the end of any financial year leads to erosion of…….. percent of its net worth-50%
  • Nine Ultra Mega Power Projects are being set up in various parts of the country. These will use as fuel- compressed natural gas (CNG)
  • Which is not an internal factor for industrial sickness- Power shortage
  • One of the disadvantages of the Wholesale Price Index in India is that- it does not cover the services sector;
  • Which point does not figure in the year Action Plan formulated under the National Population Policy, 2000- Special reward for men who adopt terminal fan planning methods.
  • In India the workers in the organised sector are only about…….percent of the total work force- 7%
  • Which statement is not correct- Human Development Report is an authoritative annual publication brought out by the World Bank.
  • Which legislations may not be charactarised as based on ‘rights-based approach’- Pre-Conception and Prenatal Diagnostic Techniques Act
  • The annual financial statement is laid before the two Houses of Parliament in accordance with- Article 112
  • According to the Reserve Bank of India Credit and Monetary Policy, the rate of increase in the Minimum Support Price (MSP) of food grains has been more than that of the rate of inflation. This would mean that- increase in the price of food grains will be more than proportionate to the rate of inflation
  • On the basis of the size and composition of external debt, World Bank has classified India as- a less indebted country;
  • Among the tax revenues of the union government, the most important source is- Union Excise Duties
  • Which South Asian country has adopted Gross National Happiness as an index of the well-being of its citizens- Bhutan
  • A significant victory for the developing countries on the issue of TRIPS at the Doha Meet was- power to grant exemption from patent regime in the interest of public health;
  • Direct taxation is a better form of taxation because- it allows for taxation according to means
  • Which conditions need not be fulfilled for declaring an offence under the Prevention of Money Laundering Act, 2002?- The crime must have been committed beyond the country’s boundaries;
  • Which statement is correct about India’s tax-to-GDP Ratio- 1. The ratio is arrived at by dividing the total tax collection of Central and State Governments by the GDP of the country 2.The ratio has been declining since 2007 3.Inflation can lead to a reduction in the ratio 4. The introduction of Goods and Services Tax is expected to increase the ratio.
  • Which is correct functions of the Reserve Bank of India- Issue of bank notes of all denominations, Lender of the last resort, Periodic inspection of commercial banks.
  • Which agency is responsible for the estimation of poverty in India- NITI Aayog’s task force.
  • It is observed that poverty in India is increasingly getting concentrated in six states. Which are those six states? Orissa, Madhya Pradesh, Chhattisgarh, Uttar Pradesh, Bihar, Jharkhand. BIMARU is an formed from the first letters of the names of these and it was coined by in the mid-1980s. BIMARU has a resemblance to a word “Bimar” which means sick.
  • Which is not one of the missions announced by the Prime Minister as part of the action plan for sustainable development- Family planning
  • In demography, one consequence of the ‘youth bulge is- Increase in the absolute number of births, even when couples may have fewer children
  • Currently, India’s largest trading partner- USA
  • Which factors are responsible for India’s adverse Balance of Payments (BoP) situation- 1. Euro zone crisis 2. High crude oil price 3. Declining foreign investment flows 4. Falling Rupee exchange rate
  • Which of the following explanations for the population of India growing may not be relevant- Rampant use of sex determination tests.
  • The functions and powers of the centre and the states are laid down in the Constitution in- Article 246
  • Bank rate refers to- the rate at which banks rediscount bills with RBI
  • Which is not an objective of the monetary policy of RBI- Ensure social justice
  • Which statement is not correct, in respect of India’s urbanization- Migration is a major reason for urban growth

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