Indian Economy Previous Year Questions (PYQ) with Answers – Page 10

The Reserve Bank of India issued the fifty-rupee note of the Mahatma Gandhi (New) series in August 2017 with fluorescent blue as its base colour.

India's literacy rate at independence in 1947 is put at about 12 per cent. Colonial education reached only a thin urban layer, and the figure for women was far lower, around six per cent.

This law makes the right to work a legal guarantee: every rural household whose adult members are willing to do unskilled manual work is entitled to at least 100 days of wage employment in a financial year.

The Finance Commission is constituted by the President under Article 280, and it therefore makes its recommendations to the President.

Statement A is correct: Article 280 provides that the Commission shall consist of a Chairman and four other members appointed by the President.

Article 280 requires the President to constitute a Finance Commission every fifth year, or earlier if needed, with a chairman and four other members.

When the rate of interest is already very low, people believe it can hardly fall further and must rise, so they hold cash instead of bonds.

The reverse repo rate is what the Reserve Bank pays banks when it takes their surplus cash for a short period.

Zero-based budgeting was first put to use in the United States. Peter Pyhrr developed it at Texas Instruments around 1970, and Jimmy Carter, then Governor of Georgia, applied it to a state budget in 1973 and later carried it to the federal government as President.

A hawkish stand means the central bank is more worried about inflation than about slow growth, so it leans towards raising the policy rate and tightening money.

GDP counts everything produced within the country's borders, whoever produces it. GNP counts what is produced by the country's own normal residents, wherever they work.

The State Bank of India was not part of the 1969 nationalisation because it was already a government-owned bank.

Headline inflation is the change in the overall Consumer Price Index, which tracks the average price of a fixed basket of goods and services bought by a typical household, including food, fuel, clothing, housing and services.

The Twelfth Finance Commission, set up in 2002, was headed by Dr. C. Rangarajan, a former Governor of the Reserve Bank of India, and its award covered the five years 2005–10.

On 15 April 1980 the government nationalised six more private banks, each with deposits of over ₹200 crore, which raised the number of nationalised banks to 20.

The government bond market and the stock market deal in long-term funds, so they are capital markets; call money and treasury bills belong to the money market.

Sterilization means cancelling out the effect of foreign exchange operations on the domestic money supply, and the RBI does it mainly through open market operations.

Under Section 22 of the RBI Act, 1934, the Reserve Bank has the sole right to issue banknotes in India.

Kshitish Chandra Neogy chaired the First Finance Commission, set up by the President in November 1951, which gave its report in 1952 for the period 1952 to 1957.

In a progressive tax the rate rises as income rises, so each extra rupee is taxed at a higher rate than the rupees before it.