Indian Economy MCQs

Notes:
Sacred Groves, National Parks, and Biosphere Reserves are indeed in-situ modes of wildlife conservation. In-situ conservation refers to the conservation of species in their natural habitats and ecosystems. Sacred Groves protect patches of forest and ecological hotspots. National Parks and protected areas provide protection for ecosystems, habitats and wildlife in their native environments. And Biosphere Reserves are large swaths of terrestrial, coastal and marine ecosystems protected in their natural state.
Ex-situ conservation involves maintaining species outside their natural habitat, for example in zoos, botanical gardens, home gardens etc.

Notes:
Gresham’s law, enunciated by Sir Thomas Gresham, states that inferior currency (bad money) in circulation displaces valuable or superior currency (good money) if both are accepted at same face value, as people hoard the good currency and spend the bad.

Notes:
IMF in 1969 to provide financial assistance to members with a temporary balance of payments need arising from contributions to buffer stocks established under approved international commodity agreements

Notes:
The Competition Commission of India (CCI) was set up to replace the anachronistic Monopolies and Restrictive Trade Practices Commission (MRTPC). It was established to eliminate practices that adversely affect competition in different industries/areas and protect interests of consumers and ensure freedom of trade. The Competition Act of 2002 called for the creation of CCI. However, it was established in 2003 and became fully functional only by 2009. The CCI is a quasi-judicial body which gives opinions to statutory authorities and also deals with other cases. It has one chairman and six members. It is the youngest and the only cross-sector regulator in India.

Notes:
Kerala produces approximately 90% of India’s rubber. The state has a tropical climate ideal for rubber cultivation, and it is home to vast rubber plantations. Rubber was introduced to India in the late 19th century, and Kerala has since become the leading producer, importantly contributing to the state’s economy.

Notes:
Fiscal policy is the government’s use of taxation and spending to influence the economy. The government adjusts its spending levels and tax rates to monitor and influence the nation’s economy. The two main instruments of fiscal policy are changes in the level and composition of taxation and government spending in various sectors.
Fiscal policy is one of the main policy approaches used by economic managers to steer the broad aspects of the economy. The other main policy approach is monetary policy, which deals with the supply of money in the economy and the rate of interest.

Notes:
Financial inclusion is not a direct measure to control inflation. Monetary policy involves adjusting interest rates and money supply, while fiscal policy includes government spending and taxation strategies. Price control refers to setting price limits on goods to manage inflation. Financial inclusion aims to provide access to financial services, which can support economic growth but does not directly address inflation control.

Notes:
The Trade and Economic Relations Committee (TERC) in India is headed by the Prime Minister. This committee was established to enhance India’s trade relations and economic policies, reflecting the government’s focus on international trade as a key driver of economic growth. The Prime Minister’s leadership underscores the importance of trade in India’s economic strategy.

Notes:
The correct answer is “Invisible Export.” Income from tourism is classified as an invisible export because it involves services provided to foreign visitors, generating revenue without the physical transfer of goods. This aligns with the economic concept where exports of services (like tourism) contribute to a country’s balance of payments.

Notes:
The correct agency to approach for FDI approval in ‘Single Brand’ retailing in India is the Department of Industrial Policy and Promotion (DIPP), now part of the Ministry of Commerce and Industry. This department is responsible for formulating and implementing policies related to foreign direct investment, including approvals for single brand retail, which allows foreign companies to operate retail stores in India under a single brand. The DIPP ensures compliance with the Foreign Exchange Management Act (FEMA) and other regulations.