Indian Economy MCQs

Notes:
The correct answer is SEBI (Securities and Exchange Board of India). SEBI was established in 1988 and became a statutory body in 1992. It regulates the securities market in India, protecting investor interests and promoting the development of the market. The RBI (Reserve Bank of India) primarily oversees monetary policy and banking regulation, while BSE (Bombay Stock Exchange) is a stock exchange, not a regulatory body.

Notes:
The Rural Infrastructure Development Fund was set up by the Government of India in 1995-96 through NABARD. It began with an initial corpus of Rs. 2,000 crore. RIDF aims to provide low-cost finance for rural infrastructure, including roads, irrigation, and bridges. By 2023-24, total allocation reached approximately Rs. 4,98,411 crore. The fund covers 39 eligible activities across India.

Notes:
The Reserve Bank of India regulates foreign currency accounts and remittances for Indian residents. RBI acts under the Foreign Exchange Management Act, 1999 and the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015. Amendments until 2025 empower RBI to set conditions for outward and inward remittance and opening of overseas bank accounts. RBI issues notifications for compliance with FEMA rules.

Notes:
The Nadabet Seema Darshan Project is in Banaskantha district, Gujarat. It was inaugurated by the Union Home Minister in April 2022. The project replicates the Wagah Border retreat ceremony. Nadabet was significant during the 1971 Indo-Pakistani War. The complex includes a museum, auditorium, and displays military equipment such as tanks and aircraft. The investment for the project was Rs 125 crore.

Notes:
Decreasing public expenditure and increasing taxes are classic contractionary fiscal measures to reduce demand and combat inflation. Delaying debt payments helps conserve resources for these fiscal actions. However, reducing public debt is not a direct anti-inflation measure, as it does not immediately affect aggregate demand. Thus, 1, 3 and 4 are correct selective anti-inflation fiscal measures.

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RBI manages the payment and settlement system in India.

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Under FERA, foreign exchange was not limited to foreign currency notes alone. It also covered financial instruments such as traveler’s cheques, letters of credit and bills of exchange when these were expressed or drawn in Indian currency but made payable in a foreign currency. Since each of the listed instruments fits that description, all three are included. Therefore, the correct answer is all of the above.

Notes:
Both actions can tighten banks' liquidity position. When a central bank sells government securities, reserves are drained from the banking system, reducing immediately available funds. Stricter liquidity regulations can also force banks to hold more safe liquid assets or meet higher liquidity buffers, leaving less money available for lending and investment. Quantitative easing does the opposite, because it injects reserves into the system and eases liquidity conditions.

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Public Relations Issues Management is a PR strategy that addresses emerging issues and crises. It guides company communication and action during critical situations. This approach maintains brand reputation and public trust by controlling information and providing timely responses during incidents. The process follows established crisis management frameworks used by organizations worldwide.

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The Rolling Plan, introduced in 1978 by India, provided a flexible planning method by extending the plan each year, maintaining a constant five-year horizon. This system allowed for annual adjustments in targets and allocations, replacing the rigid fixed Five-Year Plans previously followed.