Indian Economy MCQs

Notes:
An Indian Depository Receipt (IDR) is a financial instrument denominated in Indian Rupees, issued by a domestic depository against the equity shares of a foreign company. IDRs are listed and traded on Indian stock exchanges. The concept was introduced under Section 605A of the Companies Act, 1956 and regulated by SEBI. The first IDR was issued by Standard Chartered PLC in 2010.

Notes:
Debtors benefit from inflation as they repay loans with money of reduced purchasing power. During inflation, the real burden of debt decreases. Creditors lose since repayment occurs in depreciated currency. This effect is most significant under unanticipated inflation when previous interest rates did not account for inflation rise. Debtors’ effective liability lowers, giving them a financial advantage.

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The variable reserve ratio device springs from the fact that the central bank, in its capacity as Bankers Bank, must hold a part of the cash reserves of commercial banks. The customary minimum cash reserve ratio is an important limitation on the lending capacity of banks.

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The Department of Economic Affairs, Finance Ministry of India presents the Economic Survey in the parliament every year, just before the Union Budget. It is prepared under the guidance of the Chief Economic Adviser, Finance Ministry. It is the ministry’s view on the annual economic development of the country.

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The quaternary sector consists of intellectual activities often associated with technological innovation. It is sometimes called the knowledge economy.

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Sikkim was recognized as the country’s first organic state in 2018. Uttarakhand is the second organic sate in India.

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India introduced annual plans during the Plan Holiday period from 1966 to 1969. The government opted for three consecutive annual plans in 1966–67, 1967–68, and 1968–69 after the failure of the Third Five-Year Plan. The annual plans bridged the gap until the Fourth Five-Year Plan began in 1969.

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A breeder seed is a progeny of nucleus seed multiplied in large area under supervision of plant breeder / institute / SAUs and monitored by a committee consisting of the representatives of state seed certification agency. A golden yellow colour certificateis issued for this category of seed by producing breeder.

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India produces over 90% of its wool in the carpet grade category. Carpet grade wool is coarser and used mainly for making carpets and blankets. Data from the Ministry of Textiles shows that carpet grade wool dominates total production, while apparel grade is a minor share. India ranks second globally in total raw wool production after China as of 2022.

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According to India State of Forest Report 2023, Madhya Pradesh has the largest bamboo bearing area in India, covering approximately 20,421 square kilometers. The state leads ahead of Arunachal Pradesh, Maharashtra, and Odisha in bamboo bearing area. Total bamboo bearing area in India is reported as 1,54,670 square kilometers. Data is based on forest survey as of 2023.