Indian Economy MCQs

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Arbitrage is a type of trade in which a security is simultaneously bought and sold, in different markets. This type of trade takes advantage of the difference in prices of the same financial instrument being offered on different exchanges.

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Fund of Funds (FOF) is an investment vehicle that pools capital to invest in multiple mutual funds. FOFs do not invest in stocks or bonds directly. In India, FOFs are regulated by the Securities and Exchange Board of India (SEBI). They can invest in mutual funds within the same fund house (fettered) or across different fund houses (unfettered). FOFs offer diversification and professional fund management.

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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.

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The International Monetary Fund was created in 1944 at the Bretton Woods Conference. Its main function is to provide temporary financial assistance to member countries facing balance of payments deficits. The IMF uses facilities like Stand-By Arrangements and Extended Fund Facility. Membership includes 190 countries as of 2023. The IMF also conducts economic surveillance and policy advice, but direct financial support for balance of payments stability is its core function.

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Refinery products have the highest weightage of 28.04% in the Index of Industrial Production as per the IIP series with base year 2011-12. The Index of Industrial Production was first published in 1937. The IIP is calculated and released by the National Statistical Office, Ministry of Statistics and Programme Implementation, Government of India.

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The Agreement on the Application of Sanitary and Phytosanitary Measures – also known as the SPS Agreement is an international treaty of the World Trade Organization. It was negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade, and entered into force with the establishment of the WTO at the beginning of 1995. Under the SPS agreement, the WTO sets constraints on member-states’ policies relating to food safety (bacterial contaminants, pesticides, inspection and labeling) as well as animal and plant health (phytosanitation) with respect to imported pests and diseases. The SPS agreement is closely linked to the Agreement on Technical Barriers to Trade, which was signed in the same year and has similar goals.

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The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the Member of G7. The FATF has developed a series of Recommendations that are recognised as the international standard for combating of money laundering and the financing of terrorism and proliferation of weapons of mass destruction. Group of 7 (G7) is a group consisting of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.

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First statement is incorrect. The “Adopt a Heritage Scheme” is an initiative under Ministry of Tourism. Second statement is correct. Under this scheme, the government has appointed private as well as public companies as “Monument Mitras” for making heritage tourism more sustainable through conservation and development. The short-listed companies, to be called Monument Mitras, are from various sectors such as hospitality, travel, and banking.

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Unified Package Insurance Scheme aims at providing financial protection to citizens associated in agriculture sector, thereby ensuring food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from financial risks. The cover will be for one full year except for Crop Insurance (which will be bi-annual separately for Kharif and Rabi seasons) renewable from year to year.

Notes:
Both statements are correct. Adopt a Heritage 2.0 is a programme of the Archaeological Survey of India under the Ministry of Culture. It invites public and private sector entities, NGOs, trusts and societies to help provide visitor-friendly amenities at protected monuments. The focus is on non-conservation support such as washrooms, drinking water, seating, signage and other facilities that improve the tourist experience while archaeological conservation remains with ASI experts.