Vajiram All India Mock #1 Flashcards
What are banknotes in India?
Legal tender issued by a central bank used as a medium of exchange in an economy
Issued by the Reserve Bank of India (RBI) under the Reserve Bank of India Act, 1934.
What does Section 26 of the Reserve Bank of India Act, 1934 state?
The Bank is liable to pay the value of banknote on demand
The promissory clause on banknotes assures their value as legal tender backed by RBI’s guarantee.
Who issues the ₹1 notes in India?
Government of India
All other banknotes are issued by the Reserve Bank of India.
What material is currently used for printing banknotes in India?
Virgin cotton
This material is used for durability and quality.
What backs the banknotes in India?
Gold, government securities, and foreign currency reserves
This is a requirement as per Section 33 of the RBI Act, 1934.
How many languages are included on Indian banknotes?
15 languages in addition to Hindi and English
This reflects the linguistic diversity of India.
Where are banknotes printed in India?
At four currency presses
Two owned by the Government of India and two by the Reserve Bank.
What are push payments?
Payments initiated by the payer to transfer funds to the payee
Examples include cash, bank transfers, and standing orders.
What are pull payments?
Payments initiated by the payee after receiving authorization from the payer
Examples include cheques, card payments, and direct debits.
What is the Secured Overnight Rupee Rate (SORR)?
A proposed benchmark for interest rate derivatives markets to replace MIBOR
Derived from actual transactions in secured money markets.
What is revenue-based financing?
A fundraising method where investors provide capital in exchange for a percentage of ongoing gross revenues
It is non-collateralized and does not require equity from promoters.
What is wash trading?
A practice where a trader buys and sells the same security to create the illusion of higher trading volume
It is illegal and distorts market activity.
What is front running?
A fraudulent practice where traders take advantage of non-public information about large trades
It involves building positions before the trade occurs.
Who controls the management of gold reserves in India?
Reserve Bank of India (RBI)
Gold reserves are part of the country’s foreign exchange reserves.
What is the fiscal glide path?
A strategic approach to reduce the fiscal deficit over time
Proposed by the NK Singh Committee in 2016.
What is the Maximum Retail Pricing (MRP) of fertilizers under the Nutrient Based Subsidy (NBS) scheme?
Market-determined and set by individual companies
The government pays a fixed subsidy per tonne based on nutrient content.
What does Liberal Constitutionalism focus on?
Limiting State power to protect individual freedoms and uphold the rule of law
It ensures checks and balances to safeguard against tyranny.
How many articles does the Constitution of India currently have?
448 articles
Originally consisted of 395 articles, now divided into 24 Parts and 12 Schedules.
What was added by the 42nd Constitutional Amendment Act, 1976?
Part IV-A (Fundamental Duties) and Part XIV-A (Tribunals)
Fundamental Duties are enumerated in Article 51 ‘A’ of the Constitution.
What does Part XIV-A of the Indian Constitution provide for?
Appointment of tribunals for administrative and other disputes
This part was added by the 42nd Constitutional Amendment Act, 1976.
What does Part IX-A of the Constitution contain?
Provisions for local self government at the urban level (The Municipalities)
It was inserted by the 74th Constitutional Amendment Act, 1992.
What does Part IX-B of the Constitution grant?
Constitutional status to co-operative societies and provisions for their democratic functioning
Inserted by the 97th Constitutional Amendment Act, 2011.
What does Natural Justice imply?
Fairness, reasonableness, equity, and equality
It is a legal philosophy that dictates how legal proceedings should be conducted.
Which Articles of the Constitution incorporate the principles of natural justice?
Articles 14 and 21
Article 21 relates to the deprivation of life and personal liberty; Article 14 deals with equality.