Indian Economy MCQs

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Stagflation refers to persistent high inflation coupled with high unemployment and stagnant demand /growth in economy.
High Inflation + Low Economic Growth {or conditions of recession} + Low Employment Generation = Stagflation

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Countervailing duties are tariffs imposed on imported goods to offset subsidies provided to producers or exporters in the exporting country. This aims to level the playing field for domestic producers who compete with subsidized imports. The World Trade Organization (WTO) allows such duties to counteract unfair trade practices.

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The secondary market is for trading securities that have already been issued. Transactions involve investors buying and selling among themselves. The issuing company does not receive any funds from these trades. Major examples include stock exchanges like NYSE and NASDAQ. The market provides liquidity and facilitates price discovery for already existing securities including shares, bonds, and debentures.

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In 1944 Eight Industrialists of Bombay including Mr. JRD Tata, GD Birla, Purshottamdas Thakurdas , Lala Shriram, kasturbhai lalbhai, AD Shroff , Ardeshir Dalal, & John Mathai working together prepared “A Brief Memorandum Outlining a Plan of Economic Development for India” which was popularly known as Bombay Plan. This plan envisaged doubling the per capita income in 15 years and tripling the national income during this period.

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A dividend is a portion of a company’s after-tax profits paid to shareholders at regular intervals. Typical dividend payments occur quarterly. The amount per share is fixed by the company’s board. Dividends are distinct from retained earnings, dividend yield, and share repurchase. Large listed companies in India often declare interim and final dividends in a financial year.

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The Reserve Bank of India introduced the Market Stabilisation Scheme (MSS) in 2004. The RBI issues Treasury Bills and/or dated securities under MSS to absorb excess liquidity from the banking system. The funds raised are kept in a separate account and not used for government expenditure. The scheme helps manage surplus liquidity arising mainly from large capital inflows or currency management operations.

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The Consumer Welfare Fund was established under Section 57 of the CGST Act, 2017. Its main sources are unclaimed duty refunds under Central Excise and Customs Acts and unutilized indirect tax amounts not refundable to individuals. Receipts under GST, including unclaimed tax refunds, also finance the fund. The Department of Consumer Affairs administers the fund.

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The World Economic Forum published the Global Competitiveness Report annually from 2004 to 2020. The report used the Global Competitiveness Index to assess countries’ economic fundamentals, institutions, and policies. The Global Competitiveness Report was discontinued after 2020 and is not currently published by any organization.

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MUDRA (SIDBI) Bank operates as a refinance agency primarily providing refinance support to banks, MFIs, and NBFCs for lending to micro and small enterprises. It also provides support services such as management of financing portals and data analysis. It does not directly lend to micro enterprises. MUDRA Bank operates under the Pradhan Mantri MUDRA Yojana scheme since its formation in 2015.

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Dividend is the portion of profits that a company distributes among its shareholders in the form of cash. Usually it is expressed per share. In some cases it is expressed as a percentage of the share’s face value. So if your company declares a 100% dividend, you will get an amount equal to the face value of the share and not equal to its market price. When dividend is expressed in percentage terms, it is the face value that is referred to. The same holds good when it comes to dividends declared by mutual funds — it is the par value of units that is considered — which usually stands at Rs 10.