Indian Economy GK Questions with Answers – Page 31

M3, called broad money or aggregate monetary resources, is the measure the Reserve Bank watches most closely, and it adds the time deposits of the banking system to narrow money.

Statement I is right: commercial paper is an unsecured money market instrument issued in the form of a promissory note, so it is backed only by the credit standing of the issuer and not by any security.

It was created under the General Insurance Business Nationalisation Act of 1972 as a holding company with four subsidiaries, namely National Insurance, New India Assurance, Oriental Insurance and United India Insurance.

The Pradhan Mantri Fasal Bima Yojana, launched in 2016, fixes the farmer share of the premium at two per cent of the sum insured for kharif food and oilseed crops, with the rest of the actuarial premium shared by the central and state governments.

The Insurance Amendment Act of 2021 amended the Insurance Act of 1938 to raise the permissible foreign direct investment in an Indian insurance company to seventy-four per cent, subject to conditions designed to keep management and control in Indian hands.

It functions under the Ministry of Labour and Employment and administers three schemes under the Employees Provident Funds and Miscellaneous Provisions Act of 1952: the Employees Provident Fund Scheme of 1952, the Employees Pension Scheme of 1995 and the Employees Deposit Linked Insurance Scheme of 1976.

The principle of indemnity means a general insurance claim restores the insured to the position held before the loss but never pays more than the loss actually suffered, which is why a motor or fire claim is settled on the value of the damage.

The Atal Pension Yojana was launched in 2015 in place of the earlier Swavalamban scheme and is aimed at workers of the unorganised sector.

Under the National Pension System a subscriber holds a Permanent Retirement Account Number and a Tier I account, which is the pension account proper and permits only restricted withdrawal before retirement, and may additionally open a Tier II account, which is a voluntary savings account from which money can be…

The National Pension System, a defined contribution arrangement, applies compulsorily to central government employees who joined service on or after 1 January 2004, with the armed forces excluded; employees recruited before that date remain under the older defined benefit pension.

The authority first worked as an interim body set up by a government resolution in October 2003, and it was given statutory status by the Pension Fund Regulatory and Development Authority Act of 2013, which came into force on 1 February 2014.

The Life Insurance Corporation of India came into being on 1 September 1956 under the Life Insurance Corporation Act, which nationalised life insurance in India and took over the business of about two hundred and forty-five insurers; its head office is at Mumbai.

The committee on insurance sector reforms was appointed in 1993 under R. N. Malhotra, a former Governor of the Reserve Bank of India.

The Insurance Regulatory and Development Authority of India was constituted under the Act of 1999, became a statutory body in April 2000 and has its head office at Hyderabad, having moved there from Delhi in its early years.

Concluded in 1975 under the auspices of the United Nations Economic and Social Commission for Asia and the Pacific, it was renamed the Asia-Pacific Trade Agreement in 2005 and its members are India, Bangladesh, China, South Korea, Sri Lanka, Laos and Mongolia.

SAFTA was signed at the twelfth SAARC summit held in Islamabad in January 2004 and came into force on 1 January 2006, replacing the earlier and far weaker South Asian Preferential Trading Arrangement of 1995.

Rules of origin test whether a product really originates with the partner, usually by requiring a change in its tariff classification there together with a minimum share of value added in that country.

Article 7.1 of TEPA commits the EFTA states to increase foreign direct investment in India by 50 billion US dollars in the first ten years and a further 50 billion in the following five years, a total of 100 billion over fifteen years, with the stated aim of generating one…

The India-Australia Economic Cooperation and Trade Agreement, abbreviated ECTA, was signed in April 2022 and came into force in December 2022 as an interim step towards a wider comprehensive agreement.

A customs union removes duties on trade among its members and, in addition, requires every member to levy the same tariff on goods coming from outside the union, which is the common external tariff.