Indian Economy MCQs

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The Financial Action Task Force is an intergovernmental body established in 1989 at the G7 Summit in Paris. FATF sets international standards to prevent money laundering and terrorist financing. The organization developed 40 Recommendations as technical standards. It conducts mutual evaluations of members. FATF monitors risks and trends in global money laundering and terrorist financing.

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The Indira Gandhi Canal is the longest irrigation canal of India. It starts from the Harike Barrage at Harike, a few kilometers below the confluence of the Satluj and Beas rivers in the Indian state of Punjab and terminates in irrigation facilities in the Thar Desert in the north west of Rajasthan state.

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A ubiquitous resource is a natural resource that is available just about anywhere you live. Air, wind, water are all ubiquitous resources. Localized resources are natural resources only found in certain places.

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The banking sector is the main formal channel for mobilizing savings. Banks collect household and business savings by accepting deposits in savings, current, fixed, and recurring deposit accounts. These deposits are then pooled and used to provide credit and other financial services. Compared with other sectors, banks are the most important formal financial institutions for converting small individual savings into investible funds in the economy.

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In 1991-92, interest payments were the largest non-plan expenditure, estimated at Rs. 27,450 crores, surpassing other items like subsidies and compensations. This reflected the high fiscal burden due to accumulated government debt and was a key reason for economic reforms initiated that year.

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USA has a capitalist system followed in its economy. The prices are controlled by the market forces of demand and supply.

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Goods and Services Tax was launched on July 1, 2017. It is an indirect tax used in India on the supply of goods and services.

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India is still classified as developing due to low per capita income. Agriculture dependence, limited industrialization, and scarce capital are other reasons. Despite rapid growth, India’s per capita income remains well below high-income thresholds, keeping it in the developing country category per World Bank standards.

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The Rolling Plan for backward countries was suggested by Gunnar Myrdal. The rolling plan consists of three different steps, First, a plan for the current year which includes the annual budget. Second, a plan fixed for a fixed number of years, say three-four or five years. As per the requirement of the economy, it is revised every year. Third a perspective plan for 10, 15, or 20 years.

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Under the Environmental Protection Act,1986 GM seeds cannot be used without approval. Violation of this can result in a 5-year jail term or fine up to 1 lakh rupees.