Trivia Quiz On Indian Economy And Economic Reforms In India
Below is a trivia quiz on the Indian economy and economic reforms in India, these reforms were first introduced in the year 1991, and they aimed at opening India up for foreign investment and trade. Take up the interesting quiz and see if you understand the reforms and their impact on the economy of the nation as a whole. All the best!
- 1.
Which of the following statements is correct?
- A.
The public sector was given a dominant position in the newly Independent India.
- B.
The foreign trade policy post independence allowed free trade of all goods and service.
- C.
Monetary policy post Independence sought to keep the CRR at a very low level.
- D.
None of the above.
Correct Answer
A. The public sector was given a dominant position in the newly Independent India.Explanation
The correct answer is that the public sector was given a dominant position in the newly Independent India. This means that after India gained independence, the government played a significant role in the country's economic activities, with state-owned enterprises and public institutions having a major presence and influence. This decision was made to promote economic development and social welfare through government control and intervention in key sectors of the economy.Rate this question:
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- 2.
All of the following developments were noticed during 1991 (when economic reforms were enforced) except one. Identify it.
- A.
National debt was nearly 60 per cent of the GNP of India.
- B.
Inflation crossed double digits.
- C.
Foreign reserves were maintained at a very high level.
- D.
None of the above.
Correct Answer
C. Foreign reserves were maintained at a very high level.Explanation
During 1991, when economic reforms were enforced in India, several developments were noticed. The national debt was nearly 60% of the GNP, indicating a significant financial burden. Inflation crossed double digits, indicating a rise in prices and a decrease in purchasing power. However, the exception is that foreign reserves were not maintained at a very high level. This suggests that India did not have a large amount of foreign currency reserves during this period.Rate this question:
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- 3.
Which of the following statement is correct about the New Industrial Policy, 1991?
- A.
It made it compulsory for the industry to obtain license for all projects.
- B.
It abolished licensing for all projects except IS industries of strategic and security importance.
- C.
It gave dominant position to the public sector.
- D.
None of the above.
Correct Answer
B. It abolished licensing for all projects except IS industries of strategic and security importance.Explanation
The correct answer is "It abolished licensing for all projects except IS industries of strategic and security importance." The New Industrial Policy of 1991 aimed to liberalize and deregulate the Indian economy. As part of this policy, licensing requirements were abolished for most industries, except for those considered to be of strategic and security importance (IS industries). This move was intended to promote entrepreneurship, attract foreign investment, and foster competition in the Indian industrial sector. By eliminating unnecessary regulations, the government aimed to create a more business-friendly environment and stimulate economic growth.Rate this question:
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- 4.
At present only_____________________ industries are reserved for the public sector.
- A.
5
- B.
7
- C.
8
- D.
3
Correct Answer
D. 3Explanation
At present only 3 industries are reserved for the public sector.Rate this question:
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- 5.
At present there are only______________ industries for which licensing is compulsory.
- A.
18
- B.
6
- C.
10
- D.
9
Correct Answer
B. 6Explanation
There are currently only 6 industries for which licensing is compulsory.Rate this question:
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- 6.
At present, 100 per cent FDI is allowed in ____________. .
- A.
Defence.
- B.
Drugs and pharmaceuticals.
- C.
Banks.
- D.
Insurance.
Correct Answer
B. Drugs and pharmaceuticals.Explanation
At present, 100 per cent FDI is allowed in the drugs and pharmaceuticals sector. This means that foreign companies can fully own and invest in Indian companies involved in the manufacturing and selling of drugs and pharmaceutical products. This policy allows for increased foreign investment and technology transfer in the sector, which can lead to growth and development in the Indian pharmaceutical industry.Rate this question:
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- 7.
In private banking________________ per cent FDI is allowed now.
- A.
100
- B.
49
- C.
74
- D.
26
Correct Answer
C. 74Explanation
In private banking, 74% FDI is allowed now.Rate this question:
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- 8.
As a result of the New Industrial Policy, 1991:
- A.
Prior approval of central government is required for establishing new undertakings, and expanding the present undertaking.
- B.
An industry intending to have more than 100 crore of assets is required to obtain the permission of the central government.
- C.
Prior approval of central government for establishing new undertakings and expanding existing undertaking is not required
- D.
Two or more companies deciding to amalgamate are required to take the prior approval of the centra] government.
Correct Answer
C. Prior approval of central government for establishing new undertakings and expanding existing undertaking is not requiredExplanation
The correct answer is that prior approval of the central government for establishing new undertakings and expanding existing undertakings is not required. This means that under the New Industrial Policy of 1991, businesses are no longer required to seek permission from the central government before starting new ventures or expanding existing ones. This policy change aims to promote and facilitate entrepreneurship and economic growth by reducing bureaucratic hurdles and allowing businesses to operate more freely.Rate this question:
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- 9.
Under the New Industrial policy, 1991:
- A.
The mandatory convertibility clause is applicable for all term loans.
- B.
The mandatory convertibility clause is applicable for term loans of more than 10 years.
- C.
The mandatory convertibility clause is applicable for term loans of less than 10 years.
- D.
The mandatory convertibility clause is no longer applicable.
Correct Answer
D. The mandatory convertibility clause is no longer applicable.Explanation
Under the New Industrial Policy of 1991, the mandatory convertibility clause is no longer applicable. This means that term loans are no longer required to be converted into equity shares after a certain period of time. This change was made to provide more flexibility to businesses and to attract foreign investment. By removing this requirement, businesses have more freedom in managing their finances and can choose whether or not to convert their loans into equity shares.Rate this question:
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- 10.
As a result of the New Industrial Policy, 1991:
- A.
The public sector has been stripped off all its power.
- B.
The public sector has been given the commanding heights of the economy.
- C.
The public sector's portfolio will be reviewed with greater realism. The focus will be on strategic high tech and essential infrastructure industries.
- D.
The public sector's management has been passed over to the private sector.
Correct Answer
C. The public sector's portfolio will be reviewed with greater realism. The focus will be on strategic high tech and essential infrastructure industries.Explanation
The correct answer is that the public sector's portfolio will be reviewed with greater realism. The focus will be on strategic high tech and essential infrastructure industries. This means that under the New Industrial Policy of 1991, there will be a reassessment of the public sector's investments and priorities. The government will prioritize industries that are considered strategic, such as high tech industries, and essential infrastructure industries. This suggests a shift in focus towards sectors that are crucial for the country's economic growth and development.Rate this question:
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- 11.
In the pre-reform period, the banking sector:
- A.
Functioned in a highly regulated environment.
- B.
Functioned in a manner detrimental to the general public.
- C.
Concentrated on making huge profits.
- D.
None of the above.
Correct Answer
A. Functioned in a highly regulated environment.Explanation
During the pre-reform period, the banking sector operated in a highly regulated environment. This means that there were strict rules and regulations in place that governed the functioning of banks. These regulations aimed to ensure stability and protect the interests of the general public. Banks had to adhere to guidelines regarding interest rates, lending practices, and capital requirements, among other things. This regulatory framework was put in place to prevent risky behavior and maintain the overall health of the banking sector.Rate this question:
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- 12.
Which of the following is correct in relation to banks in the post-reform period?
- A.
Bank rate has been increased to 10 per cent.
- B.
CRR has been increased to 20 per cent.
- C.
Public sector banks have been asked to raise their funds from their private resources only.
- D.
None of the above.
Correct Answer
D. None of the above.Explanation
The given options state various changes in relation to banks in the post-reform period. However, the correct answer states that none of the options are correct. This implies that the bank rate has not been increased to 10 per cent, the CRR has not been increased to 20 per cent, and public sector banks have not been asked to raise their funds from their private resources only.Rate this question:
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- 13.
Which of the following statements is correct with regard to the external sector in the pre-reform period?
- A.
The foreign trade policy was very liberal; it allowed import of all types of goods.
- B.
Import of foodgrains was strictly prohibited.
- C.
The balance of payments situation was quite comfortable.
- D.
None of the above.
Correct Answer
D. None of the above.Explanation
The correct answer is "None of the above" because none of the statements provided are correct with regard to the external sector in the pre-reform period. The foreign trade policy was not very liberal; it had significant restrictions and regulations on imports. Import of foodgrains was not strictly prohibited; there were certain quotas and controls in place. The balance of payments situation was not quite comfortable; India faced significant challenges in managing its external debt and trade deficits during this period. Therefore, none of the statements are correct.Rate this question:
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- 14.
Which of the following statements is correct with regard to the external sector in the post-reform period?
- A.
Quantitative restrictions have been imposed on a number of tradable items.
- B.
Quantitative restrictions have been removed on most of the items except a few goods.
- C.
The tariff walls have been further raised.
- D.
Foreign investment is now being discouraged.
Correct Answer
B. Quantitative restrictions have been removed on most of the items except a few goods.Explanation
In the post-reform period, the correct statement is that quantitative restrictions have been removed on most of the items except a few goods. This means that the government has relaxed restrictions on the import and export of goods, allowing for more free trade. However, there are still a few goods that are subject to quantitative restrictions, indicating that some level of control and regulation still exists in the external sector. This approach promotes economic liberalization while maintaining some level of protection for certain industries or goods.Rate this question:
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- 15.
FERA stands for
- A.
Foreign Export Revaluation Act.
- B.
Funds Exchange Resources Act.
- C.
Finance and Export Regulation Association.
- D.
Foreign Exchange Regulation Act.
Correct Answer
D. Foreign Exchange Regulation Act.Explanation
The correct answer is Foreign Exchange Regulation Act. FERA stands for Foreign Exchange Regulation Act, which was a law enacted by the Indian government in 1973 to regulate foreign exchange transactions and preserve the stability of the country's currency. This act aimed to control and restrict the use of foreign exchange and prevent its misuse. It imposed strict regulations on foreign exchange transactions, including restrictions on the possession and transfer of foreign currency. FERA was eventually replaced by the Foreign Exchange Management Act (FEMA) in 1999.Rate this question:
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- 16.
FEMA stands for
- A.
Foreign Exchange Management Act.
- B.
Funds Exchange Management Act.
- C.
Finance Enhancement Monetary Act.
- D.
Future Exchange Management Act.
Correct Answer
A. Foreign Exchange Management Act.Explanation
The correct answer is "Foreign Exchange Management Act." FEMA stands for Foreign Exchange Management Act. This act is a legislation passed by the Indian government to regulate foreign exchange transactions, currency exchange rates, and related matters. It aims to facilitate external trade and payments and promote orderly development and maintenance of foreign exchange market in India.Rate this question:
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- 17.
As a result of the foreign trade reforms:
- A.
The number of import licenses has increased.
- B.
Only a few types of goods and services can now be exchanged freely.
- C.
EPCG scheme has been abolished.
- D.
The average tariff rates have been reduced.
Correct Answer
D. The average tariff rates have been reduced.Explanation
The correct answer is that the average tariff rates have been reduced. This means that the taxes imposed on imported goods have been lowered, making them more affordable and accessible to consumers. This reduction in tariff rates encourages foreign trade by making it more economically viable for businesses to import goods. It also promotes competition in the domestic market by allowing foreign goods to enter at lower costs. Overall, reducing average tariff rates is a positive outcome of foreign trade reforms as it stimulates economic growth and benefits consumers and businesses alike.Rate this question:
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- 18.
All of the following statements except one are correct about the Foreign Trade Policy, 2004-09. Identify the incorrect statement:
- A.
Certain thrust areas like agriculture, handlooms, handicrafts etc. have been identified.
- B.
Vishesh Krishiupaj Yojana has been started.
- C.
'Served from India' scheme has been started.
- D.
The entry of FDI in India has been restricted.
Correct Answer
D. The entry of FDI in India has been restricted.Explanation
The given answer is incorrect because the Foreign Trade Policy, 2004-09 did not restrict the entry of FDI in India. Instead, it aimed to promote foreign direct investment and create a favorable environment for foreign investors. The policy focused on liberalizing trade and attracting FDI to boost economic growth and development.Rate this question:
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- 19.
DFEC stands for
- A.
Direct Foreign Exchange Control.
- B.
Direct Finance Exchange Control.
- C.
Duty Free Export Credit.
- D.
Duty Free Exchange Credit.
Correct Answer
C. Duty Free Export Credit.Explanation
DFEC stands for Duty Free Export Credit. This term refers to a type of credit facility that is provided to exporters to promote and support their exports. Duty Free Export Credit allows exporters to access funds at favorable terms and conditions, enabling them to finance their export activities, cover production costs, and expand their business. This credit facility is typically offered by financial institutions or government agencies to encourage and incentivize exports, ultimately contributing to the growth of the economy.Rate this question:
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- 20.
EPCG stands for
- A.
Export Promotion Capital Goods.
- B.
Expert Programme for Credit Generation.
- C.
Exchange Programme for Consumer Goods.
- D.
Export Promotion Consumer Goods.
Correct Answer
A. Export Promotion Capital Goods.Explanation
EPCG stands for Export Promotion Capital Goods. This program is designed to promote exports by allowing import of capital goods for pre-production, production, and post-production at zero customs duty. This helps in boosting the manufacturing sector and enhancing the competitiveness of Indian goods in the international market. The program provides various benefits and incentives to exporters, encouraging them to invest in new technology and machinery for improving their production capabilities.Rate this question:
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- 21.
FIEO stands for
- A.
Foreign Import Export Organisation.
- B.
Federation of Import Export Organisation.
- C.
Forum of Indian Export Organisations.
- D.
Federation of Indian Export Organisations.
Correct Answer
D. Federation of Indian Export Organisations.Explanation
The correct answer is "Federation of Indian Export Organisations." FIEO is an abbreviation for this organization which represents and promotes the interests of Indian exporters. It serves as a platform for exporters to address their concerns, network, and collaborate with government bodies and other stakeholders. The organization plays a crucial role in enhancing India's exports and contributing to the growth of the country's economy.Rate this question:
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- 22.
Fiscal policy means
- A.
Policy relating to money and banking in a country.
- B.
Policy relating to public revenue and public expenditure.
- C.
Policy relating to non-banking financial institutions.
- D.
None of the above.
Correct Answer
B. Policy relating to public revenue and public expenditure.Explanation
Fiscal policy refers to the government's decisions and actions regarding its revenue generation and spending. It involves policies related to taxation, government spending, borrowing, and debt management. This policy aims to influence the overall economy by controlling the level of aggregate demand, promoting economic growth, and stabilizing inflation. It is different from monetary policy, which focuses on controlling the money supply and interest rates. Therefore, the correct answer is "Policy relating to public revenue and public expenditure."Rate this question:
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- 23.
The unsustainable levels of government deficits in the late '80s can be attributed to:
- A.
High levels of government expenditures.
- B.
Insufficient revenues.
- C.
Poor returns on government investments.
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The correct answer is "All of the above" because unsustainable levels of government deficits in the late '80s were caused by a combination of high levels of government expenditures, insufficient revenues, and poor returns on government investments. High levels of government expenditures indicate that the government was spending more money than it was bringing in, leading to deficits. Insufficient revenues suggest that the government was not generating enough income to cover its expenses. Poor returns on government investments imply that the government's investments were not generating enough profit or income to contribute to balancing the budget. Together, these factors contributed to the unsustainable levels of government deficits.Rate this question:
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- 24.
CENVAT stands for
- A.
Common Entity Value Added Tax.
- B.
Corporate Entities Value Added Tax.
- C.
Central Value Added Tax.
- D.
None of the above.
Correct Answer
C. Central Value Added Tax.Explanation
CENVAT stands for Central Value Added Tax. This tax is levied on the value added to goods or services at each stage of production and distribution. It is a form of indirect tax that is collected by the central government in India. The correct answer option states the correct expansion of CENVAT.Rate this question:
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- 25.
The FRBMA stands for
- A.
Foreign Regulation and Budget Management Act.
- B.
Fiscal Responsibility and Budget Management Act.
- C.
Finance Regulations and Bonds Management Association.
- D.
Funds Reallocation and Budget Management Act.
Correct Answer
B. Fiscal Responsibility and Budget Management Act.Explanation
The correct answer is "Fiscal Responsibility and Budget Management Act." This act was passed by the Indian government in 2003 to ensure fiscal discipline and reduce the country's fiscal deficit. It aims to promote transparency and accountability in fiscal management, improve the overall financial health of the government, and strengthen the country's macroeconomic stability. The act sets targets for fiscal deficit reduction, debt management, revenue generation, and expenditure control, and requires the government to adhere to these targets. It also establishes mechanisms for monitoring and reporting on the government's fiscal performance.Rate this question:
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- 26.
The FRBMA, 2003 emphasises on:
- A.
Revenue-led fiscal consolidation.
- B.
Better expenditure outcomes.
- C.
Rationalisation of tax regime.
- D.
All of the above.
Correct Answer
D. All of the above.Explanation
The FRBMA, 2003 emphasizes on all of the above options. It aims to achieve revenue-led fiscal consolidation by focusing on increasing revenue generation and reducing fiscal deficit. It also aims for better expenditure outcomes by ensuring efficient and effective utilization of government funds. Additionally, it emphasizes the rationalization of the tax regime by simplifying and streamlining the tax structure to promote ease of compliance and reduce tax evasion.Rate this question:
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- 27.
The economic reforms have failed to
- A.
Keep fiscal deficits to the targeted levels.
- B.
Fully implement industrial deregulation.
- C.
Fully open the economy to trade.
- D.
All of the above.
Correct Answer
D. All of the above.Explanation
The correct answer is "All of the above" because the statement mentions three different aspects of economic reforms - keeping fiscal deficits to targeted levels, fully implementing industrial deregulation, and fully opening the economy to trade. The answer suggests that all three aspects have failed to be achieved, indicating that none of them were successfully implemented as intended.Rate this question:
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- 28.
Under the New Industrial Policy, 1991:
- A.
The system of phased manufacturing programme approved on case to case basis will not be applicable to new projects.
- B.
The system of phased manufacturing programme will be applicable to new projects.
- C.
The system of phased manufacturing programmes will be applicable to new projects costing more than 10 crores.
- D.
None of the above.
Correct Answer
A. The system of phased manufacturing programme approved on case to case basis will not be applicable to new projects. -
- 29.
Before financials reforms, the banking system was characterized by all of the following except:
- A.
Administered interest rates structure.
- B.
Quantitative restrictions on credit flow.
- C.
High revenue requirements.
- D.
Keeping very less lendable resources for the priority sector.
Correct Answer
D. Keeping very less lendable resources for the priority sector.Explanation
Before financial reforms, the banking system was characterized by administered interest rates structure, quantitative restrictions on credit flow, and high revenue requirements. However, it did not keep very few lendable resources for the priority sector.Rate this question:
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- 30.
WTO stands for
- A.
World Trade Organisation.
- B.
World Transport Organisation.
- C.
World Tariff Organisation.
- D.
Women Teachers Organisation.
Correct Answer
A. World Trade Organisation.Explanation
The correct answer is World Trade Organisation. WTO is an international organization that deals with the global rules of trade between nations. It aims to ensure that trade flows as smoothly, predictably, and freely as possible. The organization provides a forum for negotiating trade agreements, settling disputes, and monitoring the implementation of trade policies. It plays a crucial role in promoting economic growth, development, and job creation worldwide.Rate this question:
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- 31.
_________________ refers to relaxation of previous government restrictions.
- A.
Privatisation.
- B.
Globalisation.
- C.
Disinvestment.
- D.
Liberalisation.
Correct Answer
D. Liberalisation.Explanation
Liberalisation refers to the relaxation of previous government restrictions. It involves reducing regulations and barriers to trade and investment, allowing for more economic freedom and competition. Privatisation, globalisation, and disinvestment do not specifically refer to the relaxation of government restrictions, making them incorrect options.Rate this question:
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- 32.
______________refers to the transfer of assets or services functions from public to private ownership.
- A.
Globalisation.
- B.
Privatisation.
- C.
Disinvestment.
- D.
Liberalisation.
Correct Answer
B. Privatisation.Explanation
Privatisation refers to the transfer of assets or services functions from public to private ownership. This involves the sale or transfer of government-owned businesses, industries, or services to private individuals or companies. Privatisation is often implemented as a way to increase efficiency, improve service quality, and stimulate economic growth by allowing the private sector to take over the management and operation of previously government-controlled entities. This can also lead to increased competition and innovation in the market.Rate this question:
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- 33.
______________ refers to disposal of public sector's units in equity in the market.
- A.
Globalisation.
- B.
Privatisation.
- C.
Disinvestment.
- D.
Liberalisation.
Correct Answer
C. Disinvestment.Explanation
Disinvestment refers to the process of selling off equity shares of public sector units in the market. This is usually done to reduce the government's stake in these units and promote private ownership. Privatisation, on the other hand, involves transferring ownership and control of public sector units to private entities. Globalisation and liberalisation are broader concepts that encompass various economic reforms and policies aimed at opening up markets and promoting international trade.Rate this question:
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- 34.
The pre-condition for privatization to be successful requires
- A.
Liberalisation and de-regulation of the economy.
- B.
Capital markets should be sufficiently developed.
- C.
None of the above.
- D.
(a) & (b) both.
Correct Answer
D. (a) & (b) both.Explanation
The correct answer is (a) & (b) both. In order for privatization to be successful, it is necessary to have both liberalization and de-regulation of the economy, as well as sufficiently developed capital markets. Liberalization and de-regulation create a competitive environment that allows for private companies to thrive and operate efficiently. On the other hand, developed capital markets provide the necessary infrastructure for privatization to take place, such as stock exchanges for the trading of shares. Therefore, both (a) liberalization and de-regulation of the economy, and (b) sufficiently developed capital markets are pre-conditions for successful privatization.Rate this question:
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- 35.
Which of the following statements regarding privatization is correct?
- A.
Privatisation is panacea for all economic problems.
- B.
Privatisation always leads to attaining social and economic efficiency.
- C.
Privatisation may result in lopsided development of industries in the country.
- D.
None of the above.
Correct Answer
C. Privatisation may result in lopsided development of industries in the country.Explanation
Privatisation may result in lopsided development of industries in the country. This means that when industries are privatised, there is a possibility that certain industries may thrive while others may suffer, leading to an uneven distribution of economic development. This could occur due to factors such as market competition, investment priorities, and the interests of private companies. Therefore, privatisation does not guarantee balanced growth and can potentially lead to an imbalanced industrial landscape in a country.Rate this question:
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- 36.
Privatization in India has taken place in all of the cases except
- A.
CMC.
- B.
BALCO.
- C.
VSNL.
- D.
None of the above.
Correct Answer
D. None of the above.Explanation
The correct answer is "None of the above." This means that privatization has taken place in all of the mentioned cases, including CMC, BALCO, and VSNL.Rate this question:
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- 37.
Which of the following statements is correct?
- A.
The disinvestment programme has been successfully carried out in India.
- B.
Privatisation up to 100 percent has been carried out in all the PSUs in India.
- C.
Under strategic sale method of disinvestment, the government sells a major share to a strategic buyer.
- D.
None of the above.
Correct Answer
C. Under strategic sale method of disinvestment, the government sells a major share to a strategic buyer.Explanation
The correct answer is "Under strategic sale method of disinvestment, the government sells a major share to a strategic buyer." This statement accurately describes the process of strategic sale in disinvestment. In this method, the government sells a significant portion of its shares in a public sector undertaking (PSU) to a strategic buyer, who is usually a private entity that can bring in expertise and resources to improve the PSU's performance. This strategy is often used to attract investment and promote efficiency in the PSU sector.Rate this question:
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- 38.
____________ means integrating the domestic economy with the world economy.
- A.
Globalisation.
- B.
Privatisation.
- C.
Liberalisation.
- D.
Disinvestment.
Correct Answer
A. Globalisation.Explanation
Globalisation refers to the process of integrating the domestic economy with the world economy. It involves the exchange of goods, services, capital, and information across borders, leading to increased interconnectedness and interdependence among countries. Through globalisation, countries open up their markets, remove trade barriers, and promote international trade and investment. This allows for the flow of goods, services, and capital across borders, leading to economic growth, technological advancements, and cultural exchange. Therefore, globalisation is the correct answer as it best describes the integration of the domestic economy with the world economy.Rate this question:
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- 39.
In 2009, the disinvestment program took off with the IPO of
- A.
NTPC.
- B.
NHPC.
- C.
Oil India Limited.
- D.
Rural Electrification Corporation.
Correct Answer
B. NHPC.Explanation
In 2009, the disinvestment program started with the initial public offering (IPO) of NHPC. This means that NHPC was the first company to be included in the disinvestment program in 2009.Rate this question:
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- 40.
SEZ Act came into effect in _____________
- A.
2002
- B.
2003
- C.
2006
- D.
2007
Correct Answer
C. 2006Explanation
The Special Economic Zones (SEZ) Act came into effect in 2006. This act was implemented to promote exports, attract foreign investment, and boost economic growth in India. SEZs are designated areas where businesses enjoy special incentives and tax benefits, encouraging them to set up operations and contribute to the country's economy. By establishing SEZs, the government aimed to create employment opportunities, enhance infrastructure development, and increase foreign exchange earnings. The SEZ Act of 2006 played a crucial role in facilitating the growth of SEZs and promoting economic development in India.Rate this question:
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- 41.
FDI is prohibited in all of the following except:
- A.
Atomic energy
- B.
Lottery business,
- C.
Gambling and betting
- D.
Banking operations
Correct Answer
D. Banking operationsExplanation
FDI (Foreign Direct Investment) refers to the investment made by a foreign entity in the business operations of another country. The question asks for an exception where FDI is not prohibited. The correct answer is "Banking operations." This means that foreign entities are allowed to invest in banking operations in the given context. However, it is important to note that FDI may be subject to certain regulations and restrictions in different countries.Rate this question:
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- 42.
FDI is allowed in all of the following except:
- A.
Lottery business
- B.
Banking operations
- C.
Insurance
- D.
Air transport services
Correct Answer
A. Lottery businessExplanation
FDI, or Foreign Direct Investment, refers to the investment made by a foreign entity in the business activities of another country. In this case, the question is asking which of the given options does not allow FDI. The correct answer is "Lottery business." This means that foreign entities are not permitted to invest in lottery businesses. However, FDI is allowed in banking operations, insurance, and air transport services.Rate this question:
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- 43.
Which is the soft lending arm of the World bank?
- A.
IDA
- B.
IFC
- C.
MIGA
- D.
ICSID
Correct Answer
A. IDAExplanation
IDA, or the International Development Association, is the soft lending arm of the World Bank. It provides low-interest or interest-free loans and grants to the world's poorest countries. IDA's main goal is to reduce poverty by supporting development projects and programs that promote economic growth, improve education and healthcare, and address other pressing development challenges. Unlike other branches of the World Bank, IDA focuses specifically on assisting countries with the greatest need and limited ability to access traditional commercial loans.Rate this question:
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- 44.
Match the following: A. WTO I Provides loans to address short-term balance of payments problems B. RBI II Multilateral trade negotiating body. C. IMF Ill Facilitating lending and borrowing for reconstruction and development D. IBRD IV Central Bank of India
- A.
(A)III (B)II (C)I (D)IV
- B.
(A)I (B)III (C)IV (D)II
- C.
(A)II (B)IV (C)I (D)III
- D.
(A)IV (B)I (C)II (D)III
Correct Answer
C. (A)II (B)IV (C)I (D)IIIExplanation
The correct answer is (A)II (B)IV (C)I (D)III. The explanation is that the World Trade Organization (WTO) is a multilateral trade negotiating body, the Reserve Bank of India (RBI) is the central bank of India, the International Monetary Fund (IMF) provides loans to address short-term balance of payments problems, and the International Bank for Reconstruction and Development (IBRD) facilitates lending and borrowing for reconstruction and development.Rate this question:
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- 45.
Which of the following pairs is not correctly matched?
- A.
WTO - Generally forbids the use of quantitative restrictions on trade.
- B.
IMF - Provides finance to correct disequilibrium in balance of payments.
- C.
RBI - Promotes trade among south Asian countries.
- D.
IBRD - Gives long term loans for development.
Correct Answer
C. RBI - Promotes trade among south Asian countries.Explanation
The given answer is correct because the RBI, which stands for Reserve Bank of India, is the central bank of India and its main objective is to maintain price stability and ensure the stability of the Indian financial system. It is responsible for regulating and supervising the banking sector in India, managing the country's foreign exchange reserves, and formulating and implementing monetary policy. While the RBI plays an important role in the Indian economy, it does not have a specific mandate to promote trade among South Asian countries. That responsibility falls under the purview of other organizations such as the South Asian Association for Regional Cooperation (SAARC).Rate this question:
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Mar 21, 2023Quiz Edited by
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Feb 24, 2012Quiz Created by
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