Indian Economy MCQs

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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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Stagflation refers to persistent high inflation coupled with high unemployment and stagnant demand /growth in economy.
High Inflation + Low Economic Growth {or conditions of recession} + Low Employment Generation = Stagflation
Stagflation generally occurs because recession reduces demand for goods. In the post 2008 crisis years, slowdown in growth and investment was accompanied by elevated levels of consumer price inflation in India. This condition was called stagflation.

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Saraswat Bank is India’s largest multi-state co-operative bank. It’s also the largest urban co-operative bank in Asia. Saraswat Bank operates in six states: Maharashtra, Goa, Gujarat, Delhi, Madhya Pradesh, Karnataka. The bank was established in 1933 and has been growing for over a century.

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Demand-pull inflation refers to the inflation from rapid growth in aggregate demand and when excess demand causes ‘too much money chasing too few goods.’ This generally happens when an economy is growing at a faster rate.

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Issuance of currency makes RBI the sole agent of the government to issue currency notes, Ways and means advances are advances to the state and central government, Maintenance of currency chests comes under currency management, Collection of credit information is related to regulation of borrowers, Liquidity adjustment facility is the most appropriate option which gives an indication of RBI working as bankers` Bank.

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A monopolist can maximize profits when the marginal cost is equivalent to the marginal revenue. This strategy is implemented because the greatest profit occurs at the output level where the difference between total revenue and total cost is the greatest. This ensures economic efficiency and profit gains for the monopolist.

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In 2024, China led global tea exports with 374,100 tonnes, dominating the market. Green tea constituted around 86.57% of China’s tea exports. Export value reached about US $1.419 billion, reinforcing China’s top position among tea-exporting nations worldwide.

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The Directorate of Marketing and Inspection (DMI)  operates under the Department of Agriculture, Cooperation, and Farmers Welfare, Ministry of Agriculture and Farmers Welfare. It was established in 1935 and serves as the regulatory body responsible for promoting and regulating marketing and quality control of agricultural and allied products in the country.

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The Middle East and North Africa (MENA) hosts a population of approximately 381 million, corresponding to around 6% of the global population. The region is renowned for its rich reserves of petroleum, thereby making petroleum the primary industry. These reserves have played a significant role in shaping the economic, political, and social spheres of the region. Besides petroleum, the region also has concentrations of other resources such as natural gas and mineral resources.

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As per the Cooperative Societies Act, Reserve Bank of India (RBI) regulates the cooperative banks and these are governed by the Banking Regulations Act, 1949 and the Banking Laws (Cooperative Societies) Act, 1965.