Indian Economy MCQs

Notes:
It is a much traded Cotton variety. Some other varieties are:

• Suvin – Known for its long staple length and premium quality, it is a hybrid of Egyptian and Indian cotton.
• DCH-32 – A hybrid cotton known for its extra-long staple.
• Bunny – A high-yielding variety of cotton.
• Jaydhar – An indigenous variety grown mainly in Maharashtra.
• LH-1556 – A hybrid variety, often grown in Northern India.
• Varalaxmi – A hybrid variety popular in South India.
• Shankar-4 – Similar to Shankar-6, this variety is also known for its medium staple cotton.
• Mech-184 – A genetically modified (Bt) cotton variety.

Notes:
Monetary policy is a tool adopted by the central bank of a nation to control either the interest rates and the money supply in the economy. It is mostly used to give a direct impact on inflation, price stability and stability of the nation’s currency

Notes:
The Commission for Agricultural Costs and Prices (CACP) is a body set up by the Government of India to recommend the minimum support prices (MSPs) for various agricultural commodities. The CACP takes into account a number of factors, including the cost of production, changes in input prices, and demand and supply conditions in the market, in order to arrive at its recommendations for MSPs. These recommendations are then used by the government to set the MSPs for various crops.

Notes:
Gross Budgetary Support (GBS) refers to the total financial assistance provided by the central government to various sectors, ministries, and departments, including support for state and union territory plans. It encompasses the government’s planned expenditure aimed at development and welfare initiatives. GBS is crucial for funding public services and infrastructure projects, reflecting the government’s fiscal priorities. In India, GBS is a key component of the annual budget, influencing economic growth and regional development.

Notes:
The correct answer is “Broad Money.” M3 is a measure of the total money supply in an economy, including cash, demand deposits, and easily convertible near money. It encompasses all liquid and near-liquid assets, making it a comprehensive indicator of money available for spending and investment. M3 is often used by central banks to gauge economic health and inform monetary policy.

Notes:
Portfolio investments typically include Foreign Institutional Investments (FII) and American Depository Receipts (ADRs). FIIs are investments made by foreign entities in domestic financial markets, while ADRs represent shares of foreign companies traded on U.S. exchanges. Foreign Direct Investments (FDI) involve direct investment in physical assets, and Global Depository Receipts (GDRs) are similar to ADRs but can be issued in multiple countries. Thus, the correct answer is 2 (Foreign Institutional Investments and American Depository Receipts).

Notes:
Fiscal Responsibility and Budget Management (FRBM) Act, 2003 requires the Ministry of Finance to review every quarter the trends in Receipts and Expenditure in relation to the Budget and place it before both Houses of Parliament. As part of this exercise, the Economic Division of Department of Economic Affairs prepares the Mid-Year Review in the second quarter of each year for placing it before Parliament. In addition, at the end of first quarter and third quarter a Macro-Economic backdrop statement is prepared and provided to the Budget Division for incorporating in the review of quarterly receipts and expenditure

Notes:
Approval comes from Cabinet Committee on Economic Affairs (CCEA). The FRP is the minimum price that sugarcane farmers are legally guaranteed

Notes:
When an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public, it is called Initial Public Offering or IPO. In an IPO, the issuer obtains the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), the best offering price and the time to bring it to market.

Notes:
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.