Indian Economy Previous Year Questions (PYQ) with Answers – Page 20

Statement 3 is wrong because the RBI uses CPI, not WPI, as its main measure of inflation. Food has a much larger weight in the CPI, close to half of the basket, than in the WPI, where food articles and manufactured food together form roughly a quarter.

SAUBHAGYA, the Pradhan Mantri Sahaj Bijli Har Ghar Yojana, aimed to give an electricity connection to every household. The scheme was launched by the Ministry of Power in September 2017 and was carried out mainly through the Rural Electrification Corporation.

The short-term part of the Kisan Credit Card covers working capital for farm assets, household consumption needs and post-harvest expenses.

All four policies shape the market price of rice in India, because the government is the biggest buyer, holder and seller of the grain.

Public investment means government spending that creates lasting assets or capacity, while support prices, free power and loan waivers are subsidies or transfers.

An expansionist policy aims to make money cheaper and more plentiful, so the RBI would not raise the Marginal Standing Facility rate, which makes borrowing dearer.

FDI comes in as equity ownership, so India does not have to repay it with interest. Under Indian rules, FDI is investment by a person resident outside India in an unlisted company, or in ten per cent or more of the paid-up equity of a listed company.

PAHAL is the direct benefit transfer scheme for subsidy on cooking gas (LPG). PAHAL stands for Pratyaksh Hanstantrit Labh, meaning direct transferred benefit.

Withdrawing cash only changes the form in which the money is held; the total stays the same.

India's mobile telecom market is served by a handful of large operators, each big enough that its tariffs affect the others.

Adam Smith used the "invisible hand" for the way free markets, guided by prices, turn private self-interest into a benefit for society.

Since 2010 the UNDP measures the education dimension of the HDI with mean years of schooling and expected years of schooling.

Wheat, paddy and sugar are food items counted in the food indices, while tobacco is not a food and is kept out of them.

The Fifth Plan (1974–79) made removal of poverty, or Garibi Hatao, and self-reliance its main aims. Garibi Hatao was the slogan with which Indira Gandhi's Congress won the 1971 Lok Sabha election.

The reserve tranche is the part of a member's IMF quota that it can draw on at any time, without conditions.

The Soviet Union under Joseph Stalin launched the world's first Five Year Plan in 1928. The first Soviet plan, for 1928 to 1932, set targets for rapid industrial growth and collectivised agriculture, with the state deciding what to produce.

PM-KISAN was announced in the interim budget of February 2019 and formally launched on 24 February 2019 from Gorakhpur in eastern Uttar Pradesh, with the first instalment released there, although the scheme was given effect from 1 December 2018.

The FRBM Act requires the government to lay this statement before Parliament along with the Budget. Section 3 of the FRBM Act, 2003 lists the fiscal policy statements that must accompany the annual financial statement: the Macro-economic Framework Statement and the Medium-term Fiscal Policy cum Fiscal Policy Strategy Statement.

The National Infrastructure Pipeline was announced in the Budget speech of 2019-20 and the task force under the Secretary, Department of Economic Affairs, drew it up for the five years from 2019-20 to 2024-25, with projected capital expenditure of about 111 lakh crore rupees.

The Human Development Index is built from exactly three dimensions and nothing more: a long and healthy life, knowledge, and a decent standard of living.