Indian Economy GK Questions with Answers – Page 10

The Forward Markets Commission was merged with SEBI on 28 September 2015, the Forward Contracts (Regulation) Act of 1952 was repealed by the Finance Act of 2015, and commodity derivatives were brought within the definition of securities under the Securities Contracts (Regulation) Act, 1956, so SEBI now regulates them.

A future is a standardised contract in which the exchange fixes the quantity, quality, delivery date and delivery centre, both parties deposit margin, positions are marked to market daily and a clearing corporation becomes the counterparty to both sides, so the risk of default is removed.

A call is the right to call the asset away from the seller, that is to buy it, and a buyer purchases a call when he expects the price of the underlying to rise above the strike price.

An option gives its buyer the right, but not the obligation, to buy or sell the underlying asset at the strike price on or before a stated date, and for this right the buyer pays a premium to the seller, who is called the writer.

A derivative has no independent value of its own; it is a contract whose worth is drawn from the price of something else, which may be a commodity such as gold or crude oil, a share, a stock index, a currency or an interest rate.

The National Career Service belongs to the Ministry of Labour and Employment, and it serves all job seekers, not only uneducated youth.

Investors accept a lower coupon on a convertible bond in return for the option to become shareholders, and that option gives some protection against rising prices.

The RBI's FI-Index is built from these three sub-indices. The RBI introduced the Financial Inclusion Index in August 2021 to measure how far financial inclusion has spread across the country.

The NSQF recognises skills learnt in any way, formal, non-formal or informal, and aims to let learners move between vocational and general education.

Disinvestment, small savings and market borrowing either create a liability for the government or reduce its assets, so they are capital receipts; interest received is a revenue receipt.

Retail core inflation is the rise in the Consumer Price Index after leaving out its two most volatile groups, food and beverages and fuel and light.

The Pakistani economist Mahbub-ul-Haq gave the concept of human development and launched the first Human Development Report for the UNDP in 1990.

A change in a good's own price, with everything else fixed, moves the buyer up or down the same demand curve.

The law of demand assumes buyers are not swayed by imitating others; the demonstration effect is in fact one of its exceptions.

Petrol is one of the petroleum products kept out of GST for now, so it still bears central excise duty and state VAT.

The FATF sets the international standards that countries follow to fight dirty money and terror funding. The FATF is an inter-governmental body set up in 1989 at the G7 summit in Paris, and its secretariat is housed at the OECD in Paris.

SWAYAM is India's national platform of free online courses. SWAYAM stands for Study Webs of Active-Learning for Young Aspiring Minds.

Only the Centre issues treasury bills and they are sold at a discount, but the RBI also manages state government securities.

The New Economic Policy of 1991 rested on liberalisation, privatisation and globalisation, and trade liberalisation and public sector disinvestment were among its main measures.

Chaired by Y. V. Reddy, it brought the 2011 Census into the devolution formula for the first time, through a criterion called demographic change.