Indian Economy GK Questions
41. The minimum support prices (MSP) for major agricultural products are fixed by the government, each year, after taking into account the recommendations of which of the following organizations?
[A] Planning Commission of India
[B] Finance Commission of India
[C] Farmer’s Commission of India
[D] Commission for Agricultural Costs and Prices
D [Commission for Agricultural Costs and Prices]
Notes:
The Commission for Agricultural Costs and Prices (CACP) is a body set up by the Government of India to recommend the minimum support prices (MSPs) for various agricultural commodities. The CACP takes into account a number of factors, including the cost of production, changes in input prices, and demand and supply conditions in the market, in order to arrive at its recommendations for MSPs. These recommendations are then used by the government to set the MSPs for various crops.
42. In context with the currency management in India the responsibility for coinage vests with which of the following?
[A] Government of India
[B] Reserve Bank of India
[C] Currency Chests
[D] Commercial Banks
A [Government of India]
Notes:
Government of India on the basis of the Coinage Act, 1906
43. Which among the following is the most important source region of NRI remittances to India ?
[A] North America
[B] Europe
[C] Middle East
[D] South America
A [North America]
44. Which among the following country is India’s biggest Trade partner?
[A] China
[B] United States
[C] UAE
[D] Saudi Arabia
A [China]
45. Consider the following:
- Reverse Repo Rate
- Cash Reserve Ratio
- Statutory Liquidity Ratio
- Bank Rate
An increase in which among the above could raise the interest rates in the market?
[A] 1
[B] 1 & 2
[C] 1, 2 & 3
[D] 1, 2, 3 & 4
D [1, 2, 3 & 4]
Notes:
The Reserve Bank uses various policy levers, such as repo rate, reverse repo rate, cash reserve ratio, statutory liquidity ratio and bank rate, to influence the amount of money in the market. An increase in any one of these could raise the interest rates.
46. Which among the following is correct in context with the White ATMs (Automated Teller Machines) ?
[A] ATMs owned by Foreign Companies
[B] ATMs not owned by banks but by private ATM service providers.
[C] Outsourced ATM Service by Banks – The ATM named under a brand sponsor bank but ATM machine not owned by the Bank
[D] ATMs owned by Government
B [ATMs not owned by banks but by private ATM service providers.]
Notes:
‘White label ATM’: These are ATM’s which are not owned by banks but by private ATM service providers. Customers from any bank can deposit or
withdraw money from such ATMs. They will provide ATM services to customers of all banks. Such ATMs will be White Label Automated Teller Machines-WLAs and will provide ATM services to customers of all banks. WLA cannot charge customers.
47. Consider the following statements about Kul Irrigation technique:
- The technique is most prevalent in southern India
- The method involves natural or artificial removal of surface and sub-surface water from a given area
Which of the above statements is/are correct?
[A] 1 Only
[B] 2 Only
[C] Both 1 & 2
[D] Neither 1 nor 2
D [ Neither 1 nor 2]
Notes:
First statement is incorrect because the technique is most prevalent in Himalayan region. Second statement is incorrect because the technique involves contribution to farming, which utilises kuls (diversion channels) to carry water from glacier to village.
48. In context with banking in India, a Custodial Account is created for __:
[A] Illiterates
[B] Women
[C] Minor persons
[D] Senior Citizens
C [ Minor persons ]
49. Which of the following differences between the payment banks and small finance banks is/are correct?
- While small finance bank can undertake lending activities, payment banks are not allowed to do so
- While small finance banks can set up subsidiaries for NBFC business, payment banks are not allowed to do so
Select the correct option from codes given below:
[A] 1 Only
[B] 2 Only
[C] Both 1 & 2
[D] Neither 1 nor 2
C [Ministry of Agriculture]
Notes:
The Directorate of Marketing and Inspection (DMI) operates under the Department of Agriculture, Cooperation, and Farmers Welfare, Ministry of Agriculture and Farmers Welfare. It was established in 1935 and serves as the regulatory body responsible for promoting and regulating marketing and quality control of agricultural and allied products in the country.
50. Which one of the following is correct regarding stabilization and structural adjustment as two components of the new economic policy adopted in India?
- [A] Stabilization is a gradual, multi-step process while structural adjustment is a quick adaptation process
- [B] Structural adjustment is a gradual, multi-step process, while stabilization is a quick adaptation process
- [C] Stabilization and structural adjustment are very similar and complementary policies. It is difficult to separate one from the other
- [D] Stabilization mainly deals with a set of policies which are to be implemented by the Central Government while structural adjustment is to be set in motion by the State Governments
B [Structural adjustment is a gradual, multi-step process, while stabilization is a quick adaptation process]
Notes:
New Economic Policy was adopted in 1991 based on Rao-Manmohan model. Stabilization component of any economy is essentially a short-term programme while the structural readjustment component is a long term process.
