Indian Economy MCQs

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Fund of Funds (FOF) is an investment vehicle that pools capital to invest in multiple mutual funds. FOFs do not invest in stocks or bonds directly. In India, FOFs are regulated by the Securities and Exchange Board of India (SEBI). They can invest in mutual funds within the same fund house (fettered) or across different fund houses (unfettered). FOFs offer diversification and professional fund management.

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The International Monetary Fund was established in 1944. The IMF has 190 member countries. The World Economic Outlook Report is published by the IMF biannually. The report provides analyses and projections of the global economy. The WEO was first published in 1980. Updates to the report are typically released in January and July.

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The Balance of Payments (BOP) crisis struck India in 1991. This triggered an economic crisis due to escalating oil prices, inflation and low foreign exchange reserves, which beleaguered India’s ability of import payments. Repercussions included severe rupee devaluation. The crisis incited economic liberalization, lowering of import tariffs and eased foreign exchange restrictions. With help from International Monetary Fund and other organizations, India managed to stabilize its situation, highlighting the necessity for constant economic overhauls to sustain financial equilibrium.

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Collateralized Borrowing and Lending Obligation (CBLO) was introduced in India in 2003. It is a money market instrument developed by the Clearing Corporation of India Limited (CCIL) and approved by the Reserve Bank of India. CBLO facilitates collateralized borrowing and lending among financial institutions by using government securities as collateral and operates under the RBI’s regulatory framework, with maturity periods from one day to one year.

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Human Development Report was first launched in 1990 by the Pakistani Economist Mahbub ul Haq and Indian Nobel laureate Amartya Sen.

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Brazil, India, and Mexico have the highest outstanding IBRD loan commitments as per recent World Bank data. Brazil’s net IBRD commitments lead global figures. India was among the top recipients in 2023, borrowing over 4.3 billion U.S. dollars. Mexico also remains a principal IBRD borrower for infrastructure and development projects in recent years. These three countries routinely top IBRD debt statistics globally.

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Singareni Collieries Company Limited (SCCL) is jointly owned by the Government of Telangana and Government of India on a 51:49 equity basis.

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The Nadabet Seema Darshan Project is in Banaskantha district, Gujarat. It was inaugurated by the Union Home Minister in April 2022. The project replicates the Wagah Border retreat ceremony. Nadabet was significant during the 1971 Indo-Pakistani War. The complex includes a museum, auditorium, and displays military equipment such as tanks and aircraft. The investment for the project was Rs 125 crore.

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The Tank irrigation is more in the rocky plateau area of the county, where the rainfall is uneven and highly seasonal. The Eastern Madhya Pradesh, Chhattisgarh, Orissa, Interiors of Tamil Nadu and some parts of Andhra Pradesh have more land under tank irrigation.

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The Laffer Curve was developed by economist Arthur Laffer in 1974. It illustrates that government tax revenue increases with higher tax rates up to a specific optimal point. Beyond this optimal rate, further increases in the tax rate lead to a decline in revenue due to reduced economic activity and shrinking tax base. The precise optimal rate is not fixed and varies by country and economy.