A) Wholesale Price Index (WPI)
B) Services Sector Index (SSI)
C) Purchasing Managers’ Index (PMI)
D) Consumer Price Index (CPI)
Correct Answer: C) Purchasing Managers’ Index (PMI)
Explanation: The Purchasing Managers’ Index (PMI) – Services is an indicator of the economic health of the services sector in India. It provides information about the business conditions in the services sector, such as output, sales, and employment.
A) National Bank for Agricultural and Rural Development
B) National Bureau for Agriculture and Rural Development
C) National Association for Business and Rural Development
D) National Agency for Agriculture and Rural Development
Correct Answer: A) National Bank for Agricultural and Rural Development
Explanation: NABARD stands for National Bank for Agricultural and Rural Development, which is an apex development financial institution in India focused on the promotion of sustainable agriculture and rural development.
A) Prime Minister
B) President
C) Finance Minister
D) RBI Governor
Correct Answer: C) Finance Minister
Explanation: The Union Budget of India is annually presented by the Finance Minister in the Parliament. This budget outlines the government’s revenue and expenditure for the upcoming fiscal year.
A) Sixth Five-Year Plan
B) Eleventh Five-Year Plan
C) Ninth Five-Year Plan
D) Seventh Five-Year Plan
Correct Answer: B) Eleventh Five-Year Plan
Explanation: The Eleventh Five-Year Plan of India (2007-2012) focused on growth with social justice and equity, aiming to reduce poverty and address inequalities in the society.
A) The benefit from a decrease in the country’s population
B) The financial support from the diaspora
C) The advantage of having a large youth population
D) The revenue generated from demographic surveys
Correct Answer: C) The advantage of having a large youth population
Explanation: Demographic dividend refers to the economic benefit arising from a significant proportion of working-age individuals in the population, which India is poised to capitalize on due to its large youth population.
A) Regulating stock exchanges
B) Monitoring rural development
C) Handling agricultural loans
D) Governing educational policies
Correct Answer: A) Regulating stock exchanges
Explanation: The primary function of the Securities and Exchange Board of India (SEBI) is to regulate and supervise the securities market in India, ensuring the protection of investors and the development of the securities market.
A) Rangarajan Committee
B) Kelkar Committee
C) Nayak Committee
D) Bimal Jalan Committee
Correct Answer: D) Bimal Jalan Committee
Explanation: The recommendation to replace the Planning Commission with NITI Aayog was proposed by the Bimal Jalan Committee, focusing on a more decentralized approach to governance and development.
A) Securities and Exchange Board of India
B) Reserve Bank of India
C) National Payments Corporation of India
D) Clearing Corporation of India Limited
Correct Answer: D) Clearing Corporation of India Limited
Explanation: The Clearing Corporation of India Limited (CCIL) acts as the central counterparty in various segments of the financial market, handling the settlement of transactions in government securities, among other financial instruments.
A) Education reform
B) Defense expenditure
C) Budgetary stability
D) Agricultural subsidies
Correct Answer: C) Budgetary stability
Explanation: The Fiscal Responsibility and Budget Management (FRBM) Act of 2003 in India is aimed at ensuring fiscal discipline by setting targets for the government to manage its deficits and expenditure.
A) Information Technology
B) Ocean resources
C) Manufacturing
D) Healthcare
Correct Answer: B) Ocean resources
Explanation: The term ‘Blue Economy’ refers to the sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of ocean ecosystems.
A) A special session in Parliament for tax reforms
B) A provision for government spending before the election
C) An exclusive economic zone vote
D) A community vote on public sector investments
Correct Answer: B) A provision for government spending before the election
Explanation: A ‘vote on account’ is a provision in the Indian financial system that allows the government to obtain Parliament’s approval for funds to meet its expenses until the full budget is passed, especially used during election years.
A) 2011-12
B) 2004-05
C) 1990-91
D) 2001-02
Correct Answer: A) 2011-12
Explanation: India uses 2011-12 as the base year for calculating GDP. This change provides a more accurate and up-to-date reflection of the country’s economic status.
A) Base Rate
B) Benchmark Prime Lending Rate
C) Bank Rate
D) Discount Rate
Correct Answer: A) Base Rate
Explanation: The MCLR was introduced by the RBI to make the lending rates more responsive to policy changes, replacing the Base Rate system.
A) Excise duty
B) Service tax
C) Wealth tax
D) Sales tax
Correct Answer: C) Wealth tax
Explanation: Wealth tax is a direct tax, which means it is levied directly on the wealth of individuals, trusts, or firms.
A) Gujarat
B) Rajasthan
C) Maharashtra
D) Uttar Pradesh
Correct Answer: A) Gujarat
Explanation: Gujarat is home to India’s first Greenfield Industrial Smart City, part of the ambitious Delhi-Mumbai Industrial Corridor project aimed at developing new industrial cities as “Smart Cities.”
A) Consumer Product Index
B) Consumer Price Index
C) Commercial Price Index
D) Commodity Price Index
Correct Answer: B) Consumer Price Index
Explanation: The Consumer Price Index measures changes in the price level of a market basket of consumer goods and services purchased by households.
A) Primary
B) Secondary
C) Tertiary
D) Quaternary
Correct Answer: D) Quaternary
Explanation: The quaternary sector, although a part of modern economic discussions, is typically not classified independently in GDP calculations, which are usually divided into primary (agriculture), secondary (manufacturing), and tertiary (services) sectors.
A) Three months
B) Six months
C) Twelve months
D) One month
Correct Answer: A) Three months
Explanation: A stale cheque is one that has not been presented for payment within three months from the date of issue, after which it is considered invalid.
A) To regulate the activities of stock brokers
B) To provide licenses to mutual funds
C) To insure the deposits of the banks
D) To protect the interests of investors in securities
Correct Answer: C) To insure the deposits of the banks
Explanation: Insuring the deposits of banks is not a function of SEBI; this is typically a role handled by other financial authorities like the Deposit Insurance and Credit Guarantee Corporation (DICGC).
A) The conversion of physical certificates into electronic form
B) Dissolving a company
C) The process of settling debts
D) Devaluing a national currency
Correct Answer: A) The conversion of physical certificates into electronic form
Explanation: Dematerialization refers to the process of converting physical share certificates and other paper documents into electronic form to facilitate easy trade and management.
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