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Indian EconomyEasyAsked in: CDS · CDS-II 2024, GK

Financial Action Task Force is :

  1. A.A wing under the Central Economic Intelligence Bureau
  2. B.A division of Enforcement Directorate
  3. C.A global money laundering and terrorist financing watchdog
  4. D.A UN Anti-Corruption Agency

Correct answer

C. A global money laundering and terrorist financing watchdog

Explanation

The correct answer is C, a global money laundering and terrorist financing watchdog. The FATF sets the international standards that countries follow to fight dirty money and terror funding.

The FATF is an inter-governmental body set up in 1989 at the G7 summit in Paris, and its secretariat is housed at the OECD in Paris. Its 40 Recommendations are the global yardstick for anti-money-laundering laws. It checks member countries through mutual evaluations and names weak jurisdictions on two public lists: the 'grey list' of jurisdictions under increased monitoring and the 'black list' of high-risk jurisdictions. India became a full member in 2010, and in India the Prevention of Money Laundering Act, 2002 follows its standards.

A is wrong because the Central Economic Intelligence Bureau is an Indian body under the Finance Ministry. B is wrong because the Enforcement Directorate is an Indian agency, and the FATF is international. D is wrong because the FATF is not a UN body; the UN's anti-corruption work runs through UNODC.

Exam tip: FATF: 1989, G7 Paris, 40 Recommendations, grey and black lists; India a member since 2010.

Practice Questions

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Q1.Indian EconomyAsked in: UPSC CAPF · CAPF 2018, Paper IMedium

The Reserve Bank of India defines narrow money as

  1. A.CU (currency notes + coins) + DD (net demand deposits held by commercial banks)
  2. B.CU + DD + saving deposits with post office savings banks
  3. C.CU + DD + net time deposits of commercial banks
  4. D.CU + DD + net time deposits of commercial banks + total deposits of post offices
Show answer
Correct answer: A. CU (currency notes + coins) + DD (net demand deposits held by commercial banks)

Narrow money, M1, is currency held by the public plus net demand deposits with commercial banks, the most liquid forms of money.

Q2.Indian EconomyAsked in: UPSC CAPF · CAPF 2018, Paper IHard

In National Income (NI) accounts, Personal Income (PI) is defined as

  1. A.NI - undistributed profits - net interest payments made by households - corporate tax + transfer payments to the households from the government and firms
  2. B.NI - undistributed profits - corporate tax + transfer payments to the households from the government and firms
  3. C.undistributed profits - net interest payments made by households + transfer payments to the households from the government and firms
  4. D.undistributed profits - net interest payments made by households - corporate tax
Show answer
Correct answer: A. NI - undistributed profits - net interest payments made by households - corporate tax + transfer payments to the households from the government and firms

Personal Income is the part of National Income that actually reaches households, plus the transfers they receive. National Income counts all factor incomes earned in the economy, but not all of it is paid out to people.

Q3.Indian EconomyMedium

The Khushkhera-Bhiwadi-Neemrana Investment Region is a node of the Delhi Mumbai Industrial Corridor in which state?

  1. A.Haryana
  2. B.Rajasthan
  3. C.Uttar Pradesh
  4. D.Gujarat
Show answer
Correct answer: B. Rajasthan

Khushkhera, Bhiwadi and Neemrana lie in the Alwar and Khairthal-Tijara belt of north-eastern Rajasthan, close to the Delhi border and on the Delhi-Jaipur highway, and the region is already a cluster of automobile ancillary, electronics and Japanese-owned units.

Q5.Indian EconomyMedium

The National Industrial Corridor Development Corporation works under which ministry?

  1. A.The Ministry of Road Transport and Highways
  2. B.The Ministry of Commerce and Industry
  3. C.The Ministry of Heavy Industries
  4. D.The Ministry of Railways
Show answer
Correct answer: B. The Ministry of Commerce and Industry

The National Industrial Corridor Development Corporation, which was earlier the Delhi Mumbai Industrial Corridor Development Corporation, is the implementing agency of the National Industrial Corridor Development Programme and functions under the Department for Promotion of Industry and Internal Trade in that ministry.