What is the full form of SIDBI?
- A.Small Industries Development Bank of India
- B.Small Investment Development Bank of India
- C.Service Industries Development Bank of India
- D.Service Investment Development Bank of India
Correct answer
Explanation
The correct answer is A, Small Industries Development Bank of India. SIDBI is the apex institution for micro, small and medium enterprises.
It was set up in 1990 under an Act of Parliament, began work on 2 April that year, and has its head office at Lucknow. It started as a subsidiary of IDBI and became independent later. SIDBI does not usually lend directly in small amounts; it refinances banks, state finance corporations and microfinance institutions, and runs funds such as the Fund of Funds for Startups and the credit guarantee scheme for small units along with the government. It also publishes the MSME Pulse report.
Options B, C and D change one word each and are simply not the name of any institution. The trap is the pair small and service: SIDBI is about small industries, the sector that employs the most people after agriculture.
Exam tip: SIDBI 1990, Lucknow, MSMEs; NABARD 1982, Mumbai, agriculture and rural credit.
Practice Questions
View allAccording to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to
- A.improve
- B.diminish
- C.remain constant
- D.first diminish and then improve
Show answer
Each extra unit of a good gives a consumer less additional satisfaction than the unit before it, so marginal utility falls as consumption rises.
Read the full explanation →Consider the following statements about impact of tax : 1. A tax is shifted forward to consumers if the demand is inelastic relative to supply. 2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand. Which of the statements given above is/are correct?
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
Show answer
The burden of a tax falls more heavily on whichever side of the market is less elastic, the side that cannot easily walk away.
Read the full explanation →UBI, as an alternative for subsidies in poverty alleviation, stands for
- A.Union Basic Income
- B.Undefined Basic Income
- C.Unconditional Basic Income
- D.Universal Basic Income
Show answer
UBI is the idea of paying every citizen a fixed sum of money regularly, without conditions, in place of a large number of separate subsidies and welfare schemes.
Read the full explanation →Who among the following is the Chairman of the Fourteenth Finance Commission?
- A.C. Rangarajan
- B.Vijay Kelkar
- C.Y. V. Reddy
- D.Rakesh Mohan
Show answer
The Fourteenth Finance Commission, set up in 2013 for the award period 2015-2020, was chaired by Y. V. Reddy, a former Governor of the Reserve Bank of India.
Read the full explanation →Why was constitutional amendment needed for introducing GST?
- A.States were not willing to agree with the Union for introduction of GST without amendment in the Constitution.
- B.GST was to be implemented on concurrent base and Article 246 was inadequate for such a case.
- C.The Empowered Committee of Finance Ministers had recommended for constitutional amendment.
- D.The GST Council had recommended for constitutional amendment so that its power enhances.
Show answer
GST is levied by the Union and the States together on the same supply, and Article 246, which splits taxing powers between them through separate lists, did not allow such a concurrent tax.
Read the full explanation →