Indian Economy Mixed Quiz: Set 2

Machines, buildings and vehicles wear out as they are used, and the value of that wear and tear must be set aside if the country is to keep its capital intact.

The Reserve Bank of India started working on 1 April 1935 under the Reserve Bank of India Act, 1934, following the recommendation of the Hilton Young Commission of 1926.

All four plans came before the First Five Year Plan started on 1 April 1951. The Bombay Plan of 1944 was prepared by eight industrialists led by J. R. D. Tata and G. D. Birla and favoured state-led heavy industry.

Stagflation is a blend of the words stagnation and inflation: output stops growing, unemployment rises, and yet prices keep climbing.

When people keep more of their money in banks instead of as cash, banks can lend more, so each rupee of reserve money creates more money in the economy.

A revenue receipt is money the government gets without creating a liability for itself or selling off an asset; tax collections such as GST, income tax and excise, and non-tax income such as interest, dividends and fees, all fall in this class.

Open market operations, or OMO, are the buying and selling of government securities by the central bank in the open market to control the money supply.

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.

Inflation is a sustained rise in the general price level, measured in India by the CPI and the WPI.

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.

By the balance between estimated receipts and expenditure, a budget is of only three types. A balanced budget has receipts equal to expenditure.

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.

Assam became the first state to ratify the GST Constitution Amendment Bill, on 12 August 2016, soon after Parliament passed it.

The expert group headed by Suresh Tendulkar, which reported in 2009, recommended measuring poverty through MPCE on the Mixed Reference Period.

Money from National Savings Certificates belongs to the savers, not the government, so under Article 266(2) it is credited to the Public Account.

The National Bank for Agriculture and Rural Development was set up on 12 July 1982 by an Act of Parliament, on the recommendation of the Sivaraman Committee (CRAFICARD), as the apex body for rural and farm credit.

Sensex, short for ‘Sensitive Index’, tracks 30 large, well-established and actively traded companies listed on the BSE, chosen from different sectors of the economy.

The MSP is announced before sowing so that farmers know the lowest price at which the government will buy their crop.

The Fiscal Responsibility and Budget Management Act, 2003 is a fiscal reform: it binds the Union government to cut its fiscal and revenue deficits and to report on its borrowing.

Total fertility rate (TFR) adds up the age-specific fertility rates of women aged 15 to 49 to show how many children a woman would have if she lived through these years at current rates.