Indian Economy MCQs

Notes:
Disinflation refers to a reduction in the rate of inflation. In other words, prices may still rise, but they rise more slowly than before. This makes disinflation an anti-inflationary measure because it eases the pace of price increase without necessarily causing a fall in the overall price level. It is different from deflation, which means a persistent decline in the general price level.

Notes:
In India, the responsibility for designing, minting and issuing coins rests with the Government of India. The Reserve Bank of India does not mint coins; it only distributes them through its issue offices and the banking system. This arrangement is provided under the Coinage Act, 2011, which governs coinage in India. Hence, the correct answer is Government of India.

Notes:
The Commission for Agricultural Costs and Prices (CACP) was established in January 1965 as the Agricultural Prices Commission and renamed CACP in 1985. CACP functions as an attached office under the Ministry of Agriculture and Farmers Welfare. CACP annually recommends MSPs for 22-23 crops to the government. Its recommendations consider factors such as production costs, market prices, and inter-crop price parity.

Notes:
The provisions relating to promissory notes are incorporated in the Negotiable Instruments Act, 1881. This Act governs various financial instruments, including promissory notes, bills of exchange, and cheques. It was enacted to facilitate trade and commerce by providing a legal framework for negotiable instruments in India. The Indian Contract Act, 1872, primarily deals with general contract law, while the Indian Partnership Act, 1932, focuses on partnerships.

Notes:
Authorized capital is the maximum share capital stated in a company’s Memorandum of Association. Registered capital and nominal capital are alternate terms for authorized capital. This ceiling cannot be exceeded without shareholder approval and modification in company documents as per the Companies Act, 2013.

Notes:
The Balance of Payments (BoP) records all economic transactions between residents and the rest of the world. Items 1 (Balance of Trade), 2 (Foreign Direct Investments), 3 (Foreign Portfolio Investments), 4 (Foreign Aid), and 5 (Foreign Tourist Expenditures) are included in BoP. Item 6 (Domestic Tourism Expenditures) involves only domestic money flow and is not recorded in BoP.

Notes:
Frictional unemployment refers to temporary unemployment that occurs when people are between jobs or are actively looking for work. It is a normal part of labor market movement and usually reflects the time taken to find a suitable job match. Unlike cyclical unemployment, it is not caused by recession, and unlike structural unemployment, it is not due to a mismatch of skills or job locations. Hence, the correct answer is frictional unemployment.

Notes:
NLCPR The broad objective of the Non-Lapsable Central Pool of Resources (NLCPR) is to ensure speedy development of infrastructure in the North Eastern Region and Sikkim by increasing the flow of budgetary financing for specific viable infrastructure projects/schemes in the region. The provision is for funding these projects. The outlay includes a provision of Rs. 50 crore for funding special projects/schemes for the economic development of the Karbi Anglong Autonomous Territorial Council (KAATC) area in Assam.

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Small Industries Development Bank of India is an independent financial institution aimed to aid the growth and development of micro, small and medium-scale enterprises. Small Industries Development Bank of India (SIDBI) was set up on April 2, 1990 under small industries development bank of India act.

Notes:
Second Five Year Plan of 1956 to 1961 was given Importance to an establishment of heavy industries only. The main thrust of industrial development was on iron and steel,Heavy engineering and fertilizer industries. Three new iron and steel plants were located in Bhilai, Durgapur, and Rourkela.