The price declared by the Government every year before the sowing season to provide incentives to the farmers is called

The correct answer is C, GDP at market price + Net factor income from abroad. 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. So to move from GDP to GNP, we add the income our residents earn abroad and subtract what foreigners earn in India; this net figure is called net factor income from abroad (NFIA). If NFIA is negative, GNP is smaller than GDP. Option A is wrong because GDP at market price minus depreciation gives NDP at market price, not GNP. Option B is wrong because it uses GNP to define itself, and adding subsidies is a step used to move from market price to factor cost, not to find GNP. Option D is wrong because NDP at factor cost plus NFIA gives NNP at factor cost, which is the national income. Exam tip: domestic to national, add NFIA; gross to net, subtract depreciation; market price to factor cost, subtract indirect taxes and add subsidies.

The correct answer is B, M3. M3 is called broad money or aggregate monetary resources. It equals M1 plus the time deposits of the public with banks, so it measures almost all the money available in the economy. The Reserve Bank of India uses four measures, M1 to M4, introduced in 1977, and M3 is the one most often used to track money supply. Liquidity falls as we move from M1 to M4, because time deposits and post office deposits cannot be spent as quickly as cash. Option A is wrong because M2 is M1 plus the savings deposits with post office savings banks. Option C is wrong because M4 is M3 plus total post office deposits, excluding National Savings Certificates. Option D is wrong because M1 is narrow money: currency with the public, demand deposits with banks and other deposits with the RBI. Exam tip: M1 is narrow money and M3 is broad money or aggregate monetary resources; M1 is the most liquid and M4 the least.

The correct answer is B, SBI. The State Bank of India was not part of the 1969 nationalisation because it was already a government-owned bank. It was created on 1 July 1955, when the Imperial Bank of India was taken over under the State Bank of India Act, following the advice of the All India Rural Credit Survey Committee. On 19 July 1969, the government of Indira Gandhi nationalised 14 major commercial banks, each with deposits of over ₹50 crore. Six more banks were nationalised in 1980. Option A is wrong because Canara Bank was one of the 14 banks nationalised in 1969. Option C is wrong because UCO Bank, then called United Commercial Bank, was also on the 1969 list. Option D is wrong because Bank of Baroda was likewise nationalised in 1969. Exam tip: Imperial Bank became SBI in 1955; 14 banks were nationalised in 1969 and 6 in 1980; the RBI itself was nationalised in 1949.

The correct answer is C, FRBM Act. 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. It deals with the government's budget, not with banks and financial markets. Financial sector reforms after 1991 began with the Narasimham Committee on the financial system, which asked for sound banking rules. Banks had to keep capital in proportion to their risky assets, the capital adequacy ratio based on the Basel norms, and to recognise bad loans honestly as non-performing assets (NPAs) instead of hiding them in their books. Option A is wrong because capital adequacy norms were a core banking reform. Option B is wrong because clear rules for NPAs were part of the same reform. Option D is wrong because the SARFAESI Act, 2002 lets banks seize and sell the security of defaulting borrowers without going to court, a major step to recover bad loans. Exam tip: banking reforms = capital adequacy, NPA norms, SARFAESI; FRBM = fiscal discipline of the government.

The correct answer is B, Both (A) and (B) are correct. 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. Core inflation removes the items whose prices swing the most, mainly food and fuel, to show the underlying trend in prices. The difference matters for policy: a jump in vegetable prices after a poor monsoon may fade in a few months, but a steady rise in core inflation tells the central bank that price pressure has spread across the economy. That is why the RBI's Monetary Policy Committee watches both numbers. In India the all-India CPI is compiled every month by the National Statistics Office. Option A is wrong because both statements are correct definitions. Option C is wrong because statement A is also correct. Option D is wrong because statement B is also correct. Exam tip: headline = the whole basket; core = the basket minus food and fuel.