Indian Economy MCQs

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The Monetary Policy Committee was formed in 2016 after an amendment to the RBI Act, 1934. The Committee consists of six members: three from the Reserve Bank of India and three nominated by the Central Government. The Governor of the Reserve Bank of India is designated as the ex-officio Chairperson of the Monetary Policy Committee.

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SDRs of the International Monetary Funds are also called Paper Gold. They are allotted to member countries by IMF and cannot be used by private parties. They are supplementary to Forex reserves.

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Monopsony refers to a market structure in which a single buyer substantially controls the market as the major purchaser of goods and services offered by many sellers.

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In the context of industry, a lockout is a temporary measure used by employers to prevent workers from entering the workplace. This is typically done in response to a labor dispute or strike, and is intended to protect the employer’s property and ensure the safety of workers and others on the premises. A lockout may be imposed by an employer unilaterally, or it may be agreed upon as part of a collective bargaining agreement with a labor union. During a lockout, workers are not allowed to enter the workplace or perform their duties, and the employer may not provide any work or pay to the affected workers. A lockout can have significant economic and social consequences for both the employer and the affected workers, and is generally considered a last resort in the resolution of labor disputes.

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The Airports Economic Regulatory Authority (AERA) is the statutory body that regulates tariff and other charges for aeronautical services at major airports, including matters related to development fee. Its role is to determine or revise such fees for airports covered under its jurisdiction. The Airports Authority of India manages airports, but the fee-setting function for major airports is entrusted to AERA under the relevant regulatory framework.

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Targets for the first three plans were set with respect to National Income. Fourth Plan it was Net Domestic Product. In all Plans thereafter it has been Gross Domestic Product at factor cost.

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Foreign Direct Investment (FDI) involves long-term investment in a business’s physical assets, often bringing technology and management expertise. Foreign Institutional Investment (FII) involves short-term capital investment in financial securities like stocks and bonds without management control. FDI investors establish a lasting presence, while FIIs are passive shareholders without operational involvement. FDI is typically more stable compared to FII, which can exit markets quickly.

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Transfer pricing refers to pricing of transactions between associated enterprises, specified in Section 92 of the Income Tax Act, 1961. India implemented transfer pricing provisions in 2001 to prevent shifting profits to low-tax jurisdictions by related parties. The law requires use of the arm’s length principle for cross-border and certain domestic transactions between related parties.

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First statement is incorrect. The “Adopt a Heritage Scheme” is an initiative under Ministry of Tourism. Second statement is correct. Under this scheme, the government has appointed private as well as public companies as “Monument Mitras” for making heritage tourism more sustainable through conservation and development. The short-listed companies, to be called Monument Mitras, are from various sectors such as hospitality, travel, and banking.

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PURA model to eradicate rural poverty was advocated by Dr. A.P.J. Abdul Kalam, theformer president of India. In PURA model (Provision of urban amenities to rural areas) he discussed about the development of the rural development in India.