Economics Flashcards
What is the present rank of India in terms of voting share in the IMF?
13th
2.44%
India’s current quota in the IMF is SDR (Special Drawing Rights) 5,821.5 million, making it the 13th largest quota holding country at IMF and giving it shareholdings of 2.44%. However, based on voting share, India (together with its constituency countries Viz.
India’s largest trading partner in 2019 was
1 China 84.4
2 The United States 74.3
3 United Arab Emirates 49.74
4 Saudi Arabia 26.72
who has developed the concept of Human Development Index
Mahbub ul Haq
Pakistani economist Mahbub ul Haq created HDI in 1990 which was further used to measure the country’s development by the United Nations Development Program (UNDP).
what is the primary objective of the governments in opting for the deliberate devaluation of the currency?
To Boost Exports
Currency devaluations can be used by countries to achieve economic policy.
Having a weaker currency relative to the rest of the world can help boost exports, shrink trade deficits and reduce the cost of interest payments on its outstanding government debts
in the world economic forum, inclusive development index in 2019 India was ranked at
62nd place
who is the CEO of Niti Aayog
Amitabh Kant.
what percentage of employees provident fund can be invested in equity shares
Min 5% and Max 15%
the measurement of the poverty line in India is based on the criteria of
Calorie Consumption
The ease of doing business index is prepared by
World Bank Group.
Reserve Bank of India was established in
1 April 1935, Kolkata
the five-year plan of India was based on
Harrod-Domar model
On December 8, 1951, Prime Minister Jawaharlal Nehru presented the first five-year plan to the Parliament of India
fiscal deficit means
revenue receipts minus expenditure
what do you understand by bear raid?
A bear raid is a type of stock market strategy, where a trader (or group of traders) attempts to force down the price of a stock to cover a short position. The name is derived from the common use of bear or bearish in the language of market sentiment to reflect the idea that investors expect downward price movement.
the national income estimates of India are prepared by
central statistical organization (C.S.O).
very Rapid growth in prices in which money loses its value to the point where even barter may be preferable is known as
hyper-inflation
India’s foreign exchange reserve has become the ______ largest in the world
8th
the world’s largest nuclear power station is
Kashiwazaki-Kariwa plant
the word Economics is derived from which Greek word
‘Oikonomia’.
Its meaning is ‘household management’. Economics was first to read in ancient Greece. Aristotle, the Greek Philosopher termed Economics as a science of ‘household management’.
Ponzi scheme referred to as a pearl and Investment operations that pay a return to its investors from
A Ponzi scheme is an investment fraud that pays existing investors with funds collected from new investors. Ponzi scheme organizers often promise to invest your money and generate high returns with little or no risk. But in many Ponzi schemes, the fraudsters do not invest the money.
special drawing rights SDR related to
International Monetary Fund (IMF)
Special drawing rights (SDR) refer to an international type of monetary reserve currency created by the International Monetary Fund (IMF) in 1969 that operates as a supplement to the existing money reserves of member countries
India is regarded as a country with demographic dividend this is due to
India has more than 60% of its population in the age-group of 15-64 years, which is capable of working and hence the highest potential to contribute to the need of labour and human capital
gilt-edged market means
of the best quality
The market for government securities or the securities guaranteed by the government. Since the government cannot default on its payment obligations, the government securities are risk-free and hence known as “gilt-edged” - which means ‘of the best quality
Which organization publishes the world investment report annually
UNCTAD |.. World Investment Reports.
The World Investment Report has been published annually since 1991.
the difference between outflow and inflow of foreign currency is known as
Current Account Deficit
which theory is also known as the theory of income determination
Keynes theory of employment
In addition, Keynes advocated that if there is an increase in national income, there would be an increase in the level of employment and vice versa. Therefore, Keynes’s theory of employment is also known as the theory of employment determination and the theory of income determination.
which Enactments in India has been framed specially to deal more effectively with the problem of Non-Performing Assets in the Banking System?
SARFAESI Act, 2002
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests Act (2002)
is an act allowing banks and other financial institutions to auction residential or commercial properties of the Defaulter of a loan to recover the loan
what indicates borrowing requirements of the government
Primary Deficit
indicates the borrowing requirements of the government, excluding interest. It is the amount by which the total expenditure of a government exceeds the total income. … Normally, when the government raises a loan, it includes the interest amount.
A repair for a known software bug, usually available at no charge on the internet, is called a
Patch
which tax payable on a person’s property on his death
Estate duty,
imposed when someone dies, was a tax on the value of assets transferred upon the person’s demise. The duty rate was as high as 85 percent
India’s largest export earning comes from
Mineral fuels including oil: US$48.3 billion (14.9% of total exports)
Gems, precious metals: $40.1 billion (12.4%)
the SEBI was established in which year
12 April 1992
Amartya Sen was awarded the 1998 Nobel Prize for economics forest contribution in
welfare economics
‘WPI’ is used as an acronym for.
Wholesale Price Index.
ncmp stands for
National Commission on Materials Policy
who was the first Chairman of Sebi as well as disinvestment Commission of India
G.V. Ramakrishna
the Reserve Bank of India was established in which year
1 April 1935, Kolkata
reduction in the rate of taxation leads to more than proportionate increase in tax yield”. This law is known as
Laffer Effect
who wrote the “wealth of nations”?
Adam Smith
who wrote, “small is beautiful”?
E. F. Schumacher
who wrote Asian drama
Gunnar Myrdal
tax rate increases with the higher level of income it shall be called
progressive tax
who is known for the law of diminishing Returns
David Ricardo,
who is known for the law of markets
Jean-Baptiste Say
French economist
what is obtained by deducting depreciation from GDP
NDP (Net Domestic Product)
NDP=GDP-Depreciation.
whose signature does the one rupee note bear
Finance Secretary,
Under Section 22 of the Reserve Bank of India Act, RBI has the sole right to issue currency notes of various denominations except one rupee notes. The One Rupee note is issued by Ministry of Finance and it bears the signatures of Finance Secretary, while other notes bear the signature of Governor RBI
Which of the following is the oldest large scale industry in India
cotton textiles industry.
what is Gresham law?
Badd currency drives out good currency from circulation
Gresham’s law is a monetary principle stating that “bad money drives out good”. For example, if there are two forms of commodity money in circulation, which are accepted by law as having similar face value, the more valuable commodity will gradually disappear from circulation.
USP (unique selling proposition) a well-known marketing term was coined by
Rosser Reeves of
Ted Bates & Company.
New Capital issue is placed in
primary market
ICDS stands for
Integrated Child Development Services
Bank deposits that can be withdrawn without notice are called
demand deposits.
People deposit their savings in banks. They can withdraw their money whenever required. Because the deposits in the bank account can be withdrawn on demand, these deposits are called demand deposits.
expenditure that has been made and cannot be recovered is called
sunk cost.
the practice of selling goods in a foreign country at a price below their domestic selling price is called
Dumping
Dumping is a term used in the context of international trade. It’s when a country or company exports a product at a price that is lower in the foreign importing market than the price in the exporter’s domestic market
structural unemployment refers to
Structural unemployment is a form of involuntary unemployment caused by a mismatch between the skills that workers in the economy can offer, and the skills demanded of workers by employers (also known as the skills gap).
Apex bank for rural credit is
NABARD is an apex development financial institution of India. It was established in 1982 with regards to policy, planning and operations in the field of credit for agriculture and other economic activities in rural parts of India.
Under what heading the salaries of government servants come under Indian Budget
Current Expenditure
An industrial unit is sick if
Sick Industrial Companies Act of 1985 (SICA)
The act defined a sick industrial unit as one that had existed for at least five years and had incurred accumulated losses equal to or exceeding its entire net worth at the end of any financial year
in India the FEMA Act means
Foreign Exchange Management Act, 1999
which enactment has enabled the bank to realize their dues without the intervention of courts and tribunals
SARFAESI Act, 2004
Due to Indo Pak war, two successive years of, devaluation of the currency, etc., planning was thrown off track and three Annual Plans were formulated during
1966-69
what is super tax
an additional tax on certain kinds of income that has already been taxed. surtax.
borrowing from foreigners are known as
Capital receipts
Omkar Goswami Committee was set up to study
Industrial Sickness
The level playing field’ argument of industries requires.
domestic industry to be treated on par with MNCs.
which committee was related to reforms in the Insurance sector
Malhotra Committee
In 1993, the Govt. of India set up a committee under the chairmanship of Shri. R N Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector. The objective was to complement the reforms initiated in the financial sector
zero-based budgeting Lays emphasis on
Traditional Budgeting. … Zero-based budgeting aims to put the onus on managers to justify expenses, and aims to drive value for an organization by optimizing costs and not just revenue.
the annual report on Human Development Index prepared by UNO is based on
Income, Health & Education of the member of country
estimates of national income in India is prepared by
CSO
A science for measuring consumer lifestyle is called
psychographics
the study and classification of people according to their attitudes, aspirations, and other psychological criteria, especially in market research.
8th round of GATT was known as
Uruguay Round
who is The Economist who advocated the first theory of rent
David Ricardo
Theory of Rents
Ricardo was the first economist to discuss the idea of rents, or benefits that accrue to the owners of assets solely due to their ownership rather than their contribution to any actually productive activity.
incidence of tax refers to
Tax incidence (or incidence of tax) is an economic term for understanding the division of a tax burden between stakeholders, such as buyers and sellers or producers and consumers. Tax incidence can also be related to the price elasticity of supply and demand
free trade refers to
Free trade refers to the absence of restrictions on international trade between two nations. … Where protectionism calls for tariffs and duties on imports to “protect” a country’s domestic producers, free trade is a policy of allowing imports and exports to flow freely between nations without any restrictions.
effective revenue deficit is the
Effective Revenue Deficit is the difference between revenue deficit and grants for creation of capital assets. The concept of effective revenue deficit has been suggested by the Rengarajan Committee on Public Expenditure. It is aimed to deduct the money used out of borrowing to finance capital expenditure
what are the teaser loan extended by the bank?
A teaser loan is any loan that offers a lower interest rate for a fixed amount of time as a purchase incentive. Common teaser loans include credit cards with low introductory offers and adjustable-rate mortgages. Borrowers must be aware of the rates that will apply after a teaser rate expires
GAAR stands for
General anti-avoidance rule
General anti-avoidance rule (GAAR) is an anti-tax avoidance law under Chapter X-A of the Income Tax Act, 1961 of India.
how many Indians companies have been included in Forbes Global 2000 list released in 2019
57
Natura non facit saltum’ this motto on the title page of ‘Principles of Economics” by Alfred Marshall means
Nature does not make a jump
selective credit control is a tool of
Monetary Policy
Selective credit control is a tool in the hands of the Reserve Bank of India to restrict bank finance against sensitive commodities. … All these commodities, as would be observed, are of mass consumption and Government makes all efforts to ensure an adequate supply of these commodities in the free market
