Indian Economy MCQs

Notes:
The correct answer is SEBI (Securities and Exchange Board of India). SEBI was established in 1988 and became a statutory body in 1992. It regulates the securities market in India, protecting investor interests and promoting the development of the market. The RBI (Reserve Bank of India) primarily oversees monetary policy and banking regulation, while BSE (Bombay Stock Exchange) is a stock exchange, not a regulatory body.

Notes:
Dear money refers to money that is hard-to-borrow. Money is hard to borrow due to several reasons such as high interest rates. When central banks implement tight monetary policy, interest rates go up and this will will make money hard to borrow.

Notes:
Central Cooperative Banks in India are established at the District Level. They serve as the primary financial institutions for rural and agricultural development, providing credit and financial services to cooperatives and farmers. Established under the Cooperative Societies Act, they play a crucial role in the cooperative credit structure, facilitating access to loans and promoting economic development at the grassroots level.

Notes:
Corporation Tax is a direct tax imposed on the net income or profit of corporations and paid directly by companies to the government. Goods and Services Tax, Customs Duty, and Excise Duty are indirect taxes collected from consumers by intermediaries. The corporate tax rate in India for domestic companies was reduced to 22 percent in 2019.

Notes:
The Financial Action Task Force is an intergovernmental body established in 1989 at the G7 Summit in Paris. FATF sets international standards to prevent money laundering and terrorist financing. The organization developed 40 Recommendations as technical standards. It conducts mutual evaluations of members. FATF monitors risks and trends in global money laundering and terrorist financing.

Notes:
An isoquant is a firm’s counterpart of the consumer’s indifference curve. An isoquant is a curve that shows all the combinations of inputs that yield the same level of output. ‘Iso’ means equal and ‘quant’ means quantity.

Notes:
Increased sales of government securities withdraw funds from banks, reducing reserves. Regulations mandating positive end-of-day central bank balances restrict available liquidity for lending or investment. Quantitative tightening by central banks reduces overall bank reserves as securities mature and are not reinvested. All these actions decrease liquidity in the banking system by shrinking available reserves.

Notes:
Infrastructure Finance Companies in India are registered with the Reserve Bank of India. They primarily provide long-term financial assistance for infrastructure projects. Their main activities include lending for infrastructure development, refinancing, and offering subordinated loans. They also facilitate equity participation and consulting services for large-scale infrastructure projects across sectors such as energy, transportation, and telecommunications. They do not engage in retail banking or property management.

Notes:
The Reserve Bank of India manages the rupee’s exchange rate against a basket of foreign currencies since 1975. Before 1975, the rupee was pegged to the British Pound Sterling. The currency basket includes the US Dollar, Euro, Japanese Yen, and British Pound. India shifted from single-currency pegs to mitigate external shocks and improve stability.

Notes:
The Indian Institute of Heritage is located in Sector 62, Noida, Uttar Pradesh. The institute shifted from the National Museum premises in New Delhi to Noida in 2020. It functions as a Deemed University approved by UGC. The institute offers postgraduate and doctoral courses related to heritage, conservation, museology, and allied fields.