Indian Economy MCQs

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Travel and Tourism Development Index (TTDI) is a biennial publication of the World Economic Forum(WEF) which evaluates the travel and tourism (T&T) competitiveness of economies and measures the set of factors that enable the sustainable development of the T&T sector of a country. Travel and Tourism Development Index (TTDI), 2021 is an update of Travel and Tourism Competitiveness Index (TTCI). As per the released ranking, India has been ranked as 54th in TTDI, 2021 out of 117 countries.

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The Central Statistics Office (CSO) is a governmental agency in India under the Ministry of Statistics and Programme Implementation. It is responsible for estimating National Income, Index of Industrial Production and Consumer Price Indices.

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In progressive taxation, the tax liability increases with individual or entity income. This is based on principle of “ability to pay”. Under this system, lowest income people are generally exempted while highest income people pay highest taxes. Income Tax is thus an example of progressive tax. Progressive taxation results in redistribution of income from rich to poor.

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The correct answer is “Both 1 & 2 are correct.” 1. The G-sec (Government Securities) market is characterized by low speculation due to the stability and low risk associated with government bonds, making them a safe investment. 2. Institutional investors, such as banks, insurance companies, and pension funds, dominate the G-sec market, accounting for a important portion of trading volume. In India, for instance, institutions hold over 80% of G-secs, reflecting their preference for stable returns.

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The tourist attractions mentioned, including the Chatham Saw Mill, which is one of the oldest and largest saw mills in Asia, and the scenic Wandoor Beach, along with Mount Harriet, the third highest peak in the Andamans offering stunning views, and the intrigue-filled Limestone Caves are all located in the beautiful Andaman and Nicobar Islands. This Indian Union Territory in the Bay of Bengal is rich in natural beauty and historical significance.

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The correct answer is the World Economic Forum (WEF). The Global Enabling Trade Report assesses the factors that facilitate or hinder trade across countries. It evaluates aspects like infrastructure, market access, and regulatory environment. The WEF, founded in 1971, is known for its annual meetings in Davos and focuses on improving the state of the world through public-private cooperation.

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The correct answer is “Printing of Currency.” In deficit financing, when a government faces a budget shortfall, it may resort to printing more money as a last resort. This method can lead to inflation if not managed properly. Historically, countries like Zimbabwe and Germany in the 1920s experienced hyperinflation due to excessive money printing. This approach is typically avoided until other options, such as borrowing, are exhausted.

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SWIFT stands for Society for Worldwide Interbank Financial Telecommunication. SEPA stands for Single Euro Payment Are. The aim of SEPA is to ensure that payments within Europe take place as simply and effectively as those within a single country. IBAN stands for the International Bank Account Number is a unique identifier helping banks process payments from person to person automatically. The IBAN contains all necessary information of the owner if a bank account such as the account number, bank and branch information and country code. BBAN is short for Basic Bank Account Number. It represents a country-specific bank account number.

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Arundhati Bhattacharya is a retired Indian banker and former Chairman of the State Bank of India. She was the first woman to be the Chairman of State Bank of India.

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In banking terminology, remittance means transfer of fund one place to another. When money transferred from one country to another, this is called Foreign Remittance.