Indian Economy MCQs

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Inflation refers to rise in general price level of goods and services, deflation is fall in general price level of goods and services. Deflation is inflation in negative zone, i.e. a decrease in the general price level of goods and services.

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The Kandla Special Economic Zone (KASEZ) was established in the year 1965 as the first Export Processing Zone in India. It is also the first special economic zone in India and in Asia. It is located in Kutch District of Gujarat.

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Democratic planning is the planning process generally adopted in mixed economy. Mixed economy possesses characteristics of both capitalist economy as well as socialist economy. Democratic planning involves participation of all the citizens of an economy directly or indirectly.

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Loan syndication is the process which involves a group of lenders to fund various portions of a loan for a single borrower. Loan syndication most often used when a borrower requires a large quantum of funds which generally cannot be lent by a single lender.

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The Reserve Bank of India (RBI) is the primary regulator for Housing Finance Companies (HFCs) in India, having taken over these powers from the National Housing Bank (NHB) in 2019. While the NHB remains responsible for the supervision and development of the housing finance sector, regulatory authority, including licensing and setting prudential norms, rests with the RBI.   In 2019, the Finance Act 2019 amended the National Housing Bank Act, 1987, transferring regulatory control from the NHB to the RBI to ensure uniform regulation of all lending institutions.

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The Indian central government projected total debt is ₹214.82 lakh crore by March 2027. In FY 2026-27, the government plans to borrow ₹17.2 lakh crore through gross market borrowings. Net market borrowings are projected at ₹11.7 lakh crore. Reserve Bank of India mainly conducts monetary operations and does not borrow such amounts. State governments’ borrowings are lower than the Centre.

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The Integrated Action Plan (IAP) is aimed at bridging the development deficit in the extremely backward areas that are affected by Left Wing Extremism.

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Allahabad Bank was founded in 1865 in Allahabad. It was nationalized by the Government of India in 1969. The bank’s operations merged with Indian Bank in April 2020. Punjab National Bank started in 1894, Central Bank of India in 1911, and Imperial Bank of India was set up in 1921. Allahabad Bank operated for 155 years until its amalgamation.

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A Pay Order is similar to a Banker’s Cheque, as both are instruments issued by banks guaranteeing payment to a specified payee. Unlike a Bank Draft, which can be issued by individuals, a Banker’s Cheque is always issued by the bank itself. Both are considered safer than cash and are used for transactions where the payee requires guaranteed funds.

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The Financial Stability Board (FSB), in consultation with the Basel Committee on Banking Supervision (BCBS), publishes the annual list of Global Systemically Important Banks (G-SIBs). The publication is typically released each November. The FSB was established in 2009 as an international body. The BCBS was founded in 1974 to strengthen banking supervision worldwide.