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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Circular trading is a fraudulent practice where sell orders are entered by a broker who knows that offsetting buy orders, the same number of shares at the same time and at the same price, have either been or will be entered. Essentially, it is a deceptive practice that creates the illusion of extensive trading activity in a security to attract further investment which often leads to artificially inflated stock prices.

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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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Chetan Bhagat, the correct answer, worked as an investment banker at Deutsche Bank before becoming a bestselling author and columnist. His debut novel, “Five Point Someone,” published in 2004, gained immense popularity and was adapted into a successful Bollywood film. Bhagat’s writing often addresses contemporary issues faced by Indian youth, making him a prominent figure in Indian literature.

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The correct agency to approach for FDI approval in ‘Single Brand’ retailing in India is the Department of Industrial Policy and Promotion (DIPP), now part of the Ministry of Commerce and Industry. This department is responsible for formulating and implementing policies related to foreign direct investment, including approvals for single brand retail, which allows foreign companies to operate retail stores in India under a single brand. The DIPP ensures compliance with the Foreign Exchange Management Act (FEMA) and other regulations.

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Larger capital inflows are not always sign of economic development.

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KYC guidelines were issued under Section 35 A of the Banking Regulation Act, 1949.These were introduced in year 2002 by RBI and all banks were asked to make all accounts KYC compliant by 31 December 2005.Banks are also required to periodically update their customers’ KYC details.

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Micro or Small Enterprise (as defined in the MSMED Act 2006) may be said to have become Sick, if any of the borrowal account of the enterprise remains NPA for three months or more.

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A centrally planned economy is an economic system in which the state or government makes economic decisions rather than the these being made by the interaction between consumers and businesses.