Indian Economy MCQs

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The new Rupee symbol of India was designed by an Indian academic and designer D Udaya Kumar in 2010. The sign has been placed at the position of U+20B9 in the Unicode character set.

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Currency depreciation is the loss of value of a country’s currency with respect to one or more foreign reference currencies. This is a term used in floating exchange rate system, where the exchange rates of a currency are market driven and not fixed by the country’s central bank.

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The scheme is Rejuvenation, Modernization and Technology Up gradation of the Coir Industry (REMOT) and aims providing financial assistance to groups of spinners and tiny household workers for replacement of outdated ratts/looms, establishment of work sheds, etc

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A wage spiral occurs when workers demand higher wages in response to rising prices, and employers raise prices in response to higher wage costs. This can create a cycle of wage increases and price increases, leading to overall inflation in the economy. Inflation can be caused by a variety of factors, such as an increase in the money supply, high levels of government spending, or a decrease in the availability of goods and services. Inflation can also be influenced by factors such as the state of the economy, the level of competition in the market, and the level of workers’ productivity.

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The term “Mint Road” refers to the Reserve Bank of India (RBI). It is located in Mumbai, where the RBI’s headquarters is situated. The RBI, established in 1935, is responsible for regulating the Indian banking system and issuing currency. The term is derived from the proximity of the RBI to the Government of India Mint, which produces coins.

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Securities and Exchange Board of India (SEBI) regulates mutual funds in India. SEBI was established in 1988 and derived its powers from the Securities and Exchange Board of India Act 1992. SEBI regulates all mutual funds, both private and public sector. SEBI’s regulations are designed to protect investors and preserve transparency in the operation of mutual funds. SEBI also regulates India’s securities market.
The RBI also regulates bank-sponsored mutual funds, especially those that offer guaranteed returns. The Small Industries Development Bank of India (SIDBI) regulates micro, small, and medium enterprise finance companies in India.

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‘White label ATM’: These are ATM’s which are not owned by banks but by private ATM service providers. Customers from any bank can deposit or
withdraw money from such ATMs. They will provide ATM services to customers of all banks. Such ATMs will be White Label Automated Teller Machines-WLAs and will provide ATM services to customers of all banks. WLA cannot charge customers.

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The correct answer is WPI (Wholesale Price Index). Headline inflation in India is primarily measured using the WPI, which reflects the price changes at the wholesale level for a basket of goods. The WPI includes prices of commodities like food, fuel, and manufactured goods, making it a comprehensive measure of inflation. In contrast, the CPI (Consumer Price Index) focuses on retail prices and consumer goods, while the GDP deflator measures price changes in all domestically produced goods and services. The WPI has been used in India since 1978, and it is crucial for policymakers to gauge inflation trends.

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There are central Taxes on the income and Union excise duties are levied by the Union but are allotted to the states in a prescribed manner. The question is who determines which share is to get how much? This is done by the Parliament. Parliament may take into considerations the recommendations of finance commission.

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‘Long-term investors’ include SEBI-registered ‘sovereign wealth funds’ (SWFs), multilateral agencies, endowment funds, insurance funds, pension funds and foreign central banks.