Indian Economy MCQs

Notes:
Income tax was introduced in India in 1860 by Sir James Wilson. Income tax rates in India increase with higher income slabs as per the Finance Act. The income tax structure is defined in the Income Tax Act, 1961. Income tax collection is administered by the Central Board of Direct Taxes. A progressive tax system is implemented where tax liability rises as an individual’s income increases, with no fixed single rate for all.

Notes:
In India, bank deposits that remain unclaimed or are not operated for 10 years or more are transferred by banks to the Depositor Education and Awareness Fund. The Reserve Bank of India framework requires banks to identify such inactive or unclaimed balances and follow the prescribed transfer process. This helps protect depositors’ money while keeping the funds traceable and available for lawful claims by the account holder or eligible claimant.

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:
Bank of America introduced BankAmericard in 1958, which became the first highly successful modern revolving-credit card program. It allowed customers to make purchases on credit and repay the balance over time, making it a landmark innovation in consumer banking. The program later evolved into Visa, helping to shape the global credit card industry and modern payment systems.

Notes:
Business transactions that occur with no exchange of tangible goods called Invisible Trade. It involves the transfer of non-tangible goods and/or service, intellectual property and patents. Examples of invisible trade including consulting, income from foreign investment, shipping services and tourism.

Notes:
A share market Index shows how a specified portfolio of share prices is moving in order to give an indication of market trends. The BSE SENSEX is a free-float market capitalization-weighted stock market index of 30 well-established and financially sound companies listed on Bombay Stock Exchange.

Notes:
Stagflation, as you might know is a condition when economy isn’t growing but prices are. So, this option would be opted out. Next two are disinflation and deflation. Disinflation means rise in prices has slowed down significantly as compared with the previous year. This simply implies that prices don’t fall during disinflation also. Deflation is when the prices actually fall. Kindly note that deflation usually moves hand in hand with economic slowdown, lower productivity and loss of employments.

Notes:
The United Nations Conference on Trade and Development (UNCTAD) has published the World Investment Report annually since 1991. The report compiles trends and data on foreign direct investment (FDI) and operations of multinational enterprises worldwide. UNCTAD’s World Investment Report includes statistics, rankings, and analyses relevant to FDI for over 200 economies.

Notes:
The Janta Government terminated the fifth five year plan in 1977-78 and launched its own sixth five year plan for period 1978-83 and called it a Rolling Plan. This second plan is kept changing as per the requirements of the economy (and politics).

Notes:
Net worth equals total assets minus total liabilities. It includes properties, financial investments, cash, and all debts. Net worth calculation is used for individuals, companies, and governments to assess overall financial position. The term is commonly used in balance sheets and personal financial statements. As of 2024, net worth remains the primary financial indicator in banking, accounting, and wealth management sectors globally.