Indian Economy Mixed Quiz: Set 85

Statement 1 is the definition of purchasing power parity, while statement 2 understates India's position. A PPP exchange rate is the rate at which the currency of one country would have to be converted into that of another to buy the same basket of goods and services in both.

A future is a standardised contract in which the exchange fixes the quantity, quality, delivery date and delivery centre, both parties deposit margin, positions are marked to market daily and a clearing corporation becomes the counterparty to both sides, so the risk of default is removed.

The repo rate is an interest rate, not the cost of the collateral. Under a repo, short for repurchase agreement, a commercial bank sells government securities to the central bank and agrees to buy them back, usually the next day, at a slightly higher price.

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.

Only statement 1 is correct. The Stability and Growth Pact, agreed in 1997, is the European Union's set of fiscal rules meant to keep public finances sound so that a shared currency is not weakened by one member's overspending.

The Consumer Protection Act, 1986 created a three-tier machinery and fixed a money limit for each tier: the district forum could hear a complaint where the value of the goods or services and the compensation claimed did not exceed twenty lakh rupees, the state commission took claims above that limit…

The main and certain advantage of GST is that it subsumes many indirect taxes into one and creates a common national market.

SEBI was set up in 1988 as a non-statutory body and was given statutory status and powers by the Securities and Exchange Board of India Act, 1992, after which it became the regulator of the securities market, with its head office in Mumbai; appeals from its orders lie to the…

Switzerland is one of the world's biggest gold exporters by value, but it does not hold the second largest official gold reserves.

Dholera lies in the Ahmedabad district of Gujarat, on the Gulf of Khambhat, and is the largest greenfield node of the Delhi Mumbai Industrial Corridor, planned as an industrial city with its own expressway link to Ahmedabad and an airport.

Expansionary policy cuts interest rates and adds money to the system, which pushes capital out and weakens the rupee further, so it is not a step to defend the currency.

Under this scheme a fixed subsidy is announced for each nutrient contained in a phosphatic or potassic fertiliser, and the manufacturer is free to fix the selling price, the aim being to encourage a balanced use of nutrients in the soil.

The unemployment rate is the share of the labour force that has no work, so it is worked out as (LFPR − WPR) ÷ LFPR × 100.

The commission headed by C. Rangarajan reviewed the Indian statistical system and recommended a permanent and autonomous body to lay down standards, so the National Statistical Commission was constituted in 2005 as an advisory body with a part-time chairperson, members and the chief executive officer as its secretary; the chief…

Rainfed Area Development is meant for farms that depend on rain, not on canals, so improving canal irrigation is not one of its strategies.

Liberalisation means freeing economic activity from government controls: industrial licences, import licences and quantitative restrictions, ceilings on investment and administered interest rates.

The reforms of 1991, launched during a balance of payments crisis, opened India to trade and foreign investment, and three of the listed changes followed.

Saubhagya, the Pradhan Mantri Sahaj Bijli Har Ghar Yojana, was launched in 2017 to give an electricity connection to every household in India.

The European Stability Mechanism is a permanent rescue fund for the countries that use the euro. It was set up by a treaty among the eurozone members and began work in 2012, taking over from the temporary European Financial Stability Facility created during the sovereign debt crisis.

The idea of human development, put forward by Mahbub ul Haq and Amartya Sen, rests on four pillars: equity, sustainability, productivity and empowerment.