Nature of Indian Economy

Nature of Indian Economy

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Moderate Questions
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Indian Economy

Nature of Indian Economy
National Income in India
Planning in India
Population of India
Natural Resources of India
Infrastructure
Social Sectors
Agriculture
World Economy
Industry
Money
Banking
Public Finance
Foreign Trade
International Organisations
Centre-State Relations
Public Service Commission-1
Election Commission
Goods and Service Tax
Emergency Provisions
Constitutional Amendments
Order of Precedence
Indian economy miscellaneous
  1. Consider the following statements in regard to 'Marginal Standing Facility (MSF)' of RBI :
    (1) It will help in reducing volatility in the overnight lending rates in the inter-bank market.
    (2) The borrowing under the MSF should be over and above the statutory liquidity requirement.
    Which of the statements given above is/are correct ?








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    Marginal Standing Facility (MSF) is the rate at which scheduled banks could borrow funds overnight from the Reserve Bank of India (RBI) against approved government securities. Banks can borrow funds through MSF during acute cash shortage (considerable shortfall of liquidity). This measure has been introduced by RBI to regulate short-term asset liability mismatch more effectively and the borrowing is within Statutory liquidity requirements. The Marginal Standing Facility (MSF) is pegged 100bps or 1 % above the Repo Rate.

    Correct Option: A

    Marginal Standing Facility (MSF) is the rate at which scheduled banks could borrow funds overnight from the Reserve Bank of India (RBI) against approved government securities. Banks can borrow funds through MSF during acute cash shortage (considerable shortfall of liquidity). This measure has been introduced by RBI to regulate short-term asset liability mismatch more effectively and the borrowing is within Statutory liquidity requirements. The Marginal Standing Facility (MSF) is pegged 100bps or 1 % above the Repo Rate.

  1. The volatility in the Indian share market is due to
    1. inflow and outflow of foreign funds.
    2. fluctuations in foreign capital markets.
    3. changes in the monetary policy
    Which of the above mentioned causes are correct?








  1. View Hint View Answer Discuss in Forum

    1, 2 and 3

    Correct Option: A

    1, 2 and 3

  1. India's Trade Policy (2009-14) seeks to
    1. double the country's share of global trade by 2020
    2. achieve a growth of 25 percent per annum in exports.
    3. double India exports of goods and services by 2014
    Choose the correct statement :








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    India's Trade Policy 2009-14 had a view to achieve a growth of 15% per annum in export rather that 25% per annum.

    Correct Option: C

    India's Trade Policy 2009-14 had a view to achieve a growth of 15% per annum in export rather that 25% per annum.

  1. The Ministry of Corporate Affairs has notified the Corporate Social Responsibility (CSR) rules and they would come into effect from April I. Under the new laws that govern companies, spending on CSR or social welfare activities is mandatory for certain class of firms. They are required to shell out at least 2 per cent of their three----year aver- age annual profit towards such works Which of the following firms classify under the new law to make CSR spend?
    (i) Companies having net worth of at least Rs 750 crore
    (ii) Companies having minimum turnover of Rs. 500 crore
    (iii) Companies with at least net profit of Rs 5 crore








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    Companies having net worth of at least Rs. 500 crore or having minimum turnover of Rs. 1000 crore or those with at least net profit of Rs 5 crore, have to make CSR spend.

    Correct Option: C

    Companies having net worth of at least Rs. 500 crore or having minimum turnover of Rs. 1000 crore or those with at least net profit of Rs 5 crore, have to make CSR spend.

  1. Consider the following statements in regard to Zero Base Budgeting (ZBB) :
    (1) Existing Government program can be discarded under ZBB if they are found to be outdated.
    (2) ZBB is difficult to be applied to Human Development program as the outcome of such program is intangible in nature.
    Which of the statement given above is correct ?








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    Zero-based budgeting is an approach to planning and decision-making which reverses the working process of traditional budgeting.

    Correct Option: C

    Zero-based budgeting is an approach to planning and decision-making which reverses the working process of traditional budgeting. In zero-based budgeting, every line item of the budget must be approved, rather than only changes. During the review process, no reference is made to the previous level of expenditure. Regarding zero Base Budgeting (ZBB) Existing Government program can be discarded under ZBB if they are found to be outdated. Moreover ZBB is difficult to be applied to Human Development program as the outcome of such program is intangible in nature