Indian Economy MCQs

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World Bank is one of five institutions created at the Breton Woods Conference in 1944. World Bank is part of the United Nations system, but its governance structure is different. World Bank’s headquarter is situated at Washington DC.

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Reserve money is also called High Powered Money / central bank money. It is the Currency in Circulation plus Deposits of Commercial Banks with RBI.

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As of August 2025, National Stock Exchange became the largest shareholder in NSDL after IDBI Bank reduced its stake by selling 11.11% in the IPO, retaining 14.99%. NSE holds a 24% stake. NSDL was established in 1996. Regulatory norms restrict non-institutional ownership in depositories to 15% in India. NSDL facilitates electronic securities settlement nationwide.

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In 2024–25, China led global tea exports by value with $1,739 million, holding nearly 45% share and surpassing Kenya and Sri Lanka. While Kenya leads in black tea by volume, China remains the largest exporter overall based on latest official data.

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Ad valorem tax is calculated as a percentage of the assessed value of property or transaction. Sales tax, property tax, and import duties are common examples. This tax is proportional to the value, not a fixed amount per unit. The term originates from Latin meaning “according to value.” The assessed value is used to determine the actual tax liability.

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The correct answer is Offshore Banking. In India, banks operating in Special Economic Zones (SEZs) are classified as offshore banks. These banks cater primarily to foreign entities and provide services that are exempt from certain domestic regulations, promoting international trade and investment. SEZs in India were established to enhance economic growth and attract foreign investment, with specific benefits like tax exemptions and simplified regulations.

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Department of Industrial Policy and Promotion is mandated to receive FDI proposals under the Government Route since 2017. It operates under the Ministry of Commerce and Industry. The Foreign Investment Facilitation Portal is managed by the Department for Promotion of Industry and Internal Trade, previously DIPP. FDI proposals in single brand retailing must be filed online with this department, complying with FEMA regulations.

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Primary deficit is the gross deficit which is obtained by subtracting interest payments from budget deficit of any country of a particular year. We need to know the value of primary deficit, while calculating the fiscal deficit. Alternative Definition of Primary Deficit Primary deficit corresponds to the net borrowing, which is required to meet the expenditure excluding the interest payment. Primary Deficit = (Fiscal Deficit – Interest Payment)

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Visakhapatnam Steel Plant, known as Rashtriya Ispat Nigam Limited, was commissioned in 1982 in Andhra Pradesh. It was the first shore-based integrated steel plant in India. The foundation stone was laid in 1971. The plant initially had a capacity of 3.0 million tonnes per annum. The capacity later expanded to 7.3 MTPA by 2017. The plant was established with technological support from the USSR and Germany.

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In a socialist economy, taxes are high on the people as the state has to provide all the goods and services to all. The other options given are the advantages of the system.