Indian Economy GK Questions with Answers – Page 11

Public goods are non-rival and non-excludable, but externalities cause market failure, so the market does not supply the optimal amount.

Bretton Woods set up fixed, not floating, exchange rates. At the Bretton Woods Conference in New Hampshire, USA, in July 1944, 44 Allied nations agreed on a new post-war money order.

As its name says, the Act guarantees work to households in rural areas; towns and cities are outside its scope.

Many sellers of an identical product, none of whom can change the price, is the definition of a perfectly competitive market.

The International Labour Organisation put it forward in the 1970s, asking that every person first have the essentials of a decent life.

Farming needs large areas of land, while most non-farm work, such as a shop, a dairy, transport or small manufacturing, can be carried out on very little land.

The account is opened by a guardian in the name of a girl child before she completes ten years of age, deposits are made for the first fifteen years, and the account matures twenty-one years from the date it was opened; a part withdrawal is allowed for higher education after…

A ULIP is sold by an insurance company, which puts one part of the premium towards life cover and invests the rest in funds chosen by the policyholder; because the contract is a policy of insurance, it is regulated by the Insurance Regulatory and Development Authority of India, set up…

An open-ended scheme has no fixed maturity; the fund house keeps creating and cancelling units, so an investor may buy or redeem on any working day at the NAV declared for that day, which is why most schemes sold today are open-ended.

The Pension Fund Regulatory and Development Authority, which was given statutory status by the PFRDA Act of 2013, regulates the National Pension System and the Atal Pension Yojana, appoints the pension fund managers and the central record keeping agency, and prescribes the Tier I and Tier II account structure.

In an SIP the same sum is invested at fixed intervals, so it automatically buys more units when the NAV is low and fewer when it is high; over a full market cycle the average cost per unit therefore works out lower than a lump sum invested at a high…

An ETF is listed on a stock exchange and traded through a broker in a demat account at prices that move during market hours, which is what separates it from every other kind of scheme.

An ELSS is an equity mutual fund scheme that qualifies for the deduction allowed on specified savings, and each instalment is locked in for three years from the date of investment, which is the shortest lock-in among the instruments eligible for that deduction.

The AMC is appointed by the trustees, is registered with SEBI and runs the schemes from day to day: it employs the fund managers, decides which securities to buy and sell, and is paid a management fee out of the scheme.

The Unit Trust of India was established in 1963 by an Act of Parliament and launched its first scheme, Unit Scheme 1964 or US-64, in the following year; it held a monopoly of the business until 1987.

The NAV is the per unit book value of a scheme: take the market value of all the securities and cash the scheme holds, subtract its liabilities and accrued expenses, and divide by the number of units outstanding.

Mutual funds in India are registered with and regulated by the Securities and Exchange Board of India under the SEBI (Mutual Funds) Regulations, 1996, which lay down the three-tier structure of sponsor, trustees and asset management company, the scheme categories, the cap on the expense ratio and the disclosures a…

An implicit subsidy does not appear in the budget as a payment; it is hidden in the low price at which a public service is provided, so that the government simply recovers less than it spends, as happens with canal water and with electricity supplied to farms.

The Act provides that the ration card shall be issued in the name of the eldest woman of the household who is eighteen years of age or more, and that if there is no such woman, the eldest male member holds the card until a female member of eighteen years…

The committee headed by Shanta Kumar submitted its report in 2015 and recommended that the coverage of the National Food Security Act be reduced, that procurement and storage be handed over in part to the states, and that the grain subsidy be gradually replaced by cash transfers into bank accounts.