Indian Economy Question answers|Economics Q & A

Indian Economy Question answers|Economics Q & A

Indian Economy

Father of Modern Economics

Ans : Adam Smith (Scotland)

Laissez - Faire policy is associated with

Ans : Adam Smith

'Wealth of Nation' is the famous book of

Ans : Adam Smith

Study of wealth is called

Ans : Aphnology

 

The position of Indian economy in the world

Ans : 7

The financial capital of the world

Ans : Zurich (Switzerland)

Father of Micro Economics

Ans : Alfred Marshall/David Ricardo

Father of Macro Economics

Ans : John Maynard Keynes

Financial capital of India

Ans : Mumbai

Father of Indian Economics

Ans : Dadabhai Naoroji

Father of Indian Statistics

Ans : P.C. Mahalanobis 

The first official attempt to calculate National Income in India was made by P.C. Mahalanobis  The National income Committee (NIC) set up in 1949 by the Government of India under the chairmanship of

Ans : P.C. Mahalanobis

P.C.Mahalanobis founded the Indian Statistical Institute in

Ans : Kolkata (1931)

Central statistical organization was founded by

Ans : P.C. Mahalanobis 

Head quarters of Central Statistical Organization

Ans : New Delhi (1951)

Indian statistics day

Ans : June - 29 

Birthday of PC Mahalanobis is observed as

Ans : Indian Statistics Day 

THEORY

  

ECONOMIST

Laissez Faire Theory - Adam Smith

Population theory - Thomas Robert Malthus

Marginal Productivity theory - J.B. Clark

Theory of Distribution - David Ricardo

Elasticity of Demand - Alfred Marshall

The Brain Drain theory was put forward by

Ans : Dadabhai Naoroji

Poverty and UnBritish rule in India is the Famous book of

Ans : Dadabhai Naoroji

First estimate of National Income in India was made by

Ans : Dadabhai Naoroji

First person to adopt a scientific procedure in calculating the National Income was

Ans : V.K.R.V. Rao (1931)

TYPES OF ECONOMY

1.CAPITALIST ECONOMY

The type of economy in which private enterprises are existing in the sphere of production

Ans : Capitalist Economy

The type of economy in which Government does not have control over markets and does not take part in any kind of production process

Ans : Capitalist Economy

Type of economy in which the profit of service is earned by an individual

Ans : Capitalist Economy

Examples of Capitalist Economy

Ans : USA, Britain, Japan, Brazil, France

2.SOCIALIST ECONOMY

The type of economy in which public enterprise or state ownership of capital is existing in all the important sphere of production

Ans : Socialist Economy

In socialist economy all means of production are controlled by the

Ans : Government

In socialist Economy, what to produce, how to produce and for whom to produce depend on the demand of the

Ans : Society

Examples of Socialist Economy

Ans : China, Cuba

3.MIXED ECONOMY

Type of economy in which a mixture of public and private enterprises is existing

The type of economy which is the combination of Capitalism and Socialism

Ans : Mixed Economy

The type of economy in which all means of production are shared between the public and private sector

Ans : Mixed Economy

Examples for Mixed Economy

Ans : India, Australia

COMMUNIST ECONOMY

Type of Economy in which the means of production and social welfare for the people is given a priority over individual profit

Ans : Communist Economy

Example for Communist Economy

Ans : North Korea

THREE SECTORS OF ECONOMY

1.PRIMARY SECTOR

The sector of an economy making direct use of natural resources

Ans : Primary sector

eg. Agricultural sector

2.SECONDARY SECTOR

The activities including the manufacturing of physical goods and other industrial production come under

Ans:Secondary Sector

eg : Industrial sector

3.TERTIARY SECTOR

Tertiary Sector is otherwise known as

Ans : Service Sector

The service sector which gives support to all activities for the development of the primary and secondary sectors

Ans : Tertiary sector

eg : Banking sector, Transportation and communication

World Nations are divided into three

1.Developed Nation

2.Developing Nation

3.Least Developed Nation (Undeveloped)

1.DEVELOPED NATION

A country having high levels of National and Per Capita incomes is known as

Ans : Developed Country

The country having high standard of life is known as

Ans : Developed Country

Country having high economic growth and security is termed as

Ans : Developed Country

Countries which are more advance in scientific and technological field

Ans : Developed Countries

Eg: USA, England, Japan, Germany, France

2.DEVELOPING NATION

Another term for Developing countries

Ans : Third world countries

Countries having low standard of living are included in the

Ans : Developing Nation

Illiteracy, Low National Income, Unemployment, Low Human Development Index (HDI) etc. are the main characteristics of a

Ans : Developing Nation

Earlier name of developing countries

Ans : Under developed countries

Eg : India, South Africa, Brazil

3.LEAST DEVELOPED COUNTRIES

Extreme poverty, very low GDP, low percapita income, high rate of population, unemployment are the characteristics of

Ans : Least Developed Countries

Weak economy, inadequate human resource and vulnerable natural disasters are the features of

Ans : Least Developed Countries

Examples of Least Developed Countries

Ans : Afghanistan, Angola, Benin

HUMAN DEVELOPMENT INDEX (HDI)

The composite statistics of life expectancy, education, and per capita income indicators of countries

Ans : Human Development Index (HDI)

HDI was launched by

Ans : Amartya Sen (Indian) and Mahbub Ul Haq (Pak Economist)

HDI was launched in

Ans : 1990

Standard measurement for distinguishing whether the country is developed, developing or under developed

Ans : HDI

As per the Human Development Index published on March 21, 2017, the country tops in the list is

Ans : Norway

As per the Human Development Index published on March 21, 2017, the position of India is

Ans : 131

GDP (Gross Domestic Product)

The value of all goods and services produced within a country during a given period

Ans : GDP

GNP (Gross National Product)

The sum total of all goods and services produced by the nationals of a country during a year

Ans : GNP

National Income

The sum total of all final goods and services produced in a country in a particular period of time usually one year

Ans : National Income

Per Capita income

It refers National Income divided by the population of the country

TAXES

Compulsory payment made by citizen or corporate bodies to Government

Ans : Tax

Article 265 of Indian constitution deals with

Ans : Taxes

Tax was imposed for the first time in

Ans : Egypt

John Mathai Commission or Taxation Enquiry commission was set up to study the

Ans : Taxation system in India

John Mathai Commission or Taxation Enquiry commission was set up in

Ans : 1954

Income tax Act came into force on

Ans : 1st April 1962

BOOKS

      

AUTHORS

Wealth of Nations-Adam Smith

Das Capital-Karl Marx

Poverty and UnBritish Rule in India - Dadabhai Naoroji

Poverty and Famine - Amartya Sen

Rationality and Freedom - Amartya Sen

Development as freedom - Amartya Sen

The Argumentative Indian - Amartya Sen

Commodities and Capabilities - Amartya Sen

Choice of Techniques - Amartya Sen

Beyond the crisis;Development Strategies in Asia - Amartya sen

Human Rights and Asian Values - Amartya Sen

Asian Drama - Gunnar Myrdal

The myth of free trade  - Ravi Batra

Crash of the Millennium - Ravi Batra

Great Depression of 1990 - Ravi Batra

Principle of Political Economy and Taxation - David Ricardo

Communist Manifesto - Karl Marx Fredrik Engels

General Theory of Employment Interest and money - J.M.Keynes

There are mainly two types of taxes

(1)Direct Tax

(2)Indirect Tax

ECONOMIC COMMISSIONS

Raja Chelliah

Ans : Tax Reforms 

Ans : Vijay Kelkar

Direct and Indirect Tax Structures

Narasimham

Ans : Banking Sector Reforms 

Malhotra

Ans : Insurance Privatisation 

Damoderan Committee

Ans : Banking Service Reforms

Lakadawala Committee

Ans : Poverty line

Ashoka Mehta

Ans : Panchayat Raj Reforms

Sen

Ans:Decentralisation of powers to Panchayat Raj institutions

Indira Goswami

Ans : Industrial Sickness

R.S. Sarkaria

Ans : Central State Relationship

Swaminathan

Ans : Agricultural Reforms

LC Gupta

Ans : Trading of Shares

G.V. Ramakrishna

Ans : Disinvestment commission

Sachar commission

Ans : The Socio - Economic and Educational Status of the Muslim - Community in India

Mandal Commission

Ans : To identify the socially or educationally backward

Kothari Commission

Ans : Education commission

C.D. Mayee Commission

Ans : Endosulfan

Tendulkar Commission

Ans : Identifying people below the poverty line

DIRECT TAX

A tax directly paid to the government by the individuals or organizations on whom it is imposed is called

Ans : Direct Tax

The tax which cannot be shifted by the taxpayer to someone else

Ans : Direct Tax

The main examples of Direct Taxes are

Ans : Income Tax, Gift Tax, Wealth Tax, Property Tax, Corporate Tax, Capital Gains Tax, Securities Transaction Tax, Perquisite Tax, etc

INDIRECT TAX

The taxes paid while purchasing goods and services are called

Ans : Indirect Tax

The tax which can be shifted by the taxpayer to someone else

Ans : Indirect Tax

TAXES IMPOSED BY THE CENTRAL GOVERNMENT

Income Tax

Corporate Tax

Property Tax

Wealth Tax

Gift Tax

Custom Duty

Service Tax

TAX IMPOSED BY THE STATE GOVERNMENT

Land Revenue Tax

Stamp Duty

State excise Duty

Road Tax

Entertainment Tax

Motor Vehicle Tax

Agricultural Income Tax

Agriculture Land Revenue etc.

Eg : Excise duty,sales Tax,Entertainment Tax,Custom duty and Octroi,Goods and Services Tax(GST),Services Tax,Value Added Tax (VAT)

A local tax collected on various articles brought into a district for consumption

Ans : Octroi

VAT (Value Added Tax)

The type of consumption tax that is placed on a product whenever value is added at a stage of production and at final sale

Ans : VAT

Value Added Tax (VAT) was introduced in

Ans : France (1954)

First Asian Country to introduce VAT

Ans : South Korea

First Indian state to introduce VAT

Ans : Haryana (April 1,2003)

VAT was introduced in India on

Ans : April 1, 2005

The first country introduced value added tax (VAT)

Ans : France

First country introduced Goods and service Tax (GST)

Ans : France

First country introduced fat Tax

Ans : Denmark

First country introduced carbon tax

Ans : New Zealand

First country Introduced salt tax

Ans : China

The Chairman of the Empowerment Committee introduced VAT in India

Ans : Asim Das Gupta

MODVAT stands for

Ans : Modified Value Added Tax

MODVAT was introduced with effect from

Ans : March 1,1986

Modvat has later been replaced by

Ans : CEN VAT (Central Value Added Tax)

CEN VAT came into force in

Ans : April 1, 2000

STOCK EXCHANGE

An organised market for buying and sellinq shares and other securities

Ans : Stock Exchange

World's first stock exchange was formed at

Ans : Antwerp in Belgium

Oldest stock exchange in Asia

Ans : Bombay Stock Exchange (BSE)

Largest stock exchange in the world

Ans : NYSE Euronext (formerly known as Area Ex.)

Stock exchange index of America is known as

Ans : NASDAQ

NASDAQ

Ans : National Association of Securities Dealers Automated Quotation system

First electronic stock exchange

Ans : NASDAQ

Headquarters of Newyork Stock Exchange

Ans : Wallstreet

STOCK EXCHANGES INDEX

New York - Nasdaq

New York - Dow Jones

India - Sensex

India - Nifty

Japan - Nikkei

Singapore - Simex

Frankfurt - Mid Dax

London - FTSE

Hong Kong - Hang Seng

Brazil - Bovespa

First Indian company to be listed on the US NASDAQ

Ans : Infosys Technologies 

First Indian public sector Unit of New York Stock Exchange

Ans : VSNL

Financial Capital of China

Ans : Shanghai

INDIAN STOCK EXCHANGES

Second largest share holding population in the world

Ans : India

The terms associated with the Stock Exchanges

Ans : Bull and Bear

The upward market trend is termed as

Ans : Bull

The downward market trend is termed as

Ans : Bear

High valued shares are known as

Ans : Blue chips

BOMBAY STOCK EXCHANGE (BSE)

Old name of Bombay Stock Exchange

Ans : The Native Share & Stock Brokers Association

The oldest stock exchange in Asia

Ans : BSE

BSE was established in

Ans : 1875

BSE located on

Ans : Dalai street, Mumbai

First company registered in Bombay stock exchange was

Ans : D.S. Prabhudas and Company

BSE share index is known as

Ans : SENSEX (Stock Exchange Sensitive Index)

The name SENSEX was proposed by

Ans : Deepak Mohani

The Edge is Efficiency is the caption of

Ans : BSE

The pulse of the domestic Stock markets in India

Ans : SENSEX

10th largest stock market in the world by market capitalization

Ans : BSE

Cochin stock exchange was founded in

Ans : 1978

First stock exchange in Kerala

Ans : Cochin Stock Exchange

NATIONAL STOCK EXCHANGE (NSE)

National Stock Exchange was founded in

Ans : 1992

Largest stock exchange in India

Ans : National Stock Exchange

Headquarters of NSE

Ans : Mumbai

Share Index of NSE

Ans : NIFTY

NSE was set up on the recommendation of

Ans : Pherwani Committee (1991)

Second fastest growing stock exchange in the world

Ans : NSE

Bombay Stock Exchange -1875

Ahmedabad Stock Exchange -1894

Kolkata Stock Exchange -1908

Cochin Stock Exchange -1978

National Stock Exchange -1992

SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)

Regular for the securities market in India

Ans : SEBI

SEBI was established in the year

Ans : 1988

SEBI was given statutory power on

Ans : April 12, 1992

Headquarters of SEBI

Ans : Bandra kurla Complex (Mumbai)

First Chairman of SEBI

Ans : S.A.Dave

Forward Market Commission was merged with SEBI in

Ans : 2015

INSURANCE

First insurance company in India

Ans : Oriental Life Insurance company

Oriental Life Insurance was established at

Ans : Kolkata

Oriental Life Insurance was established in

Ans : 1818

First native insurance provider in India

Ans : The Bombay Mutual life Assurance society

The Bombay Mutual life Assurance society was established in

Ans : 1870

The year in which the Government of India issued an ordinance for nationalising the life insurance sector in India

Ans : 1956

R.N. Malhotra Commission is associated with the

Ans : Insurance sector

An autonomous body instituted to regulate and develop the insurance industry in India

Ans : Insurance Regulatory and Development Authority (IRDA)

Headquartes of IRDA

Ans : Hyderabad

IRDA was incorporated as a statutory body in

Ans : April 2000

General Insurance Corporation of India was Formed in

Ans : 1972

General Insurance Corporation was nationalized on

Ans : January 1,1973

Head quarters of General Insurance Corporation

Ans : Mumbai

LIFE INSURANCE CORPORATION (LIC)

Life Insurance Corporation was set up in

Ans : 1956

Headquarters of Life Insurance Corporation is in

Ans : Mumbai

Motto of LIC

Ans : Yogakshemam Vahamyaham (your welfare is our responsibility)

The person who founded Hindustan Insurance Society, which later became Life Insurance Corporation

Ans : Surendranath Tagore

Largest insurance group fully owned by the Government of India

Ans : LIC

Mundra Case is related to

Ans : LIC

First woman Managing Director of LIC

Ans : Usha Sangwan

BANKING

First bank in India

Ans : Bank of Hindustan

Bank of Hindustan was established in

Ans : Calcutta (1770)

Oldest public sector bank in India

Ans : Allahabad Bank

NATIONALISATION OF BANKS IN INDIA

The Prime Minister who nationalised banks in India for the first time

Ans : Indira Gandhi

First nationalisation of banks was held on

Ans : July 19,1969

Number of banks in India nationalised for the first time

Ans : 14

Total asset of a bank which was nationalised in 1969 was exceeded

Ans : 50 crores

The second phase of bank nationalisation in India was held on

Ans : April 15,1980

Number of banks nationalised in second phase

Ans : 6

The Prime Minister who nationalised Banks in India in 1980

Ans : Indira Gandhi

Total asset of a Bank which was nationalised in 1980 was exceeded

Ans : 200 crores

Allahabad Bank was established in

Ans : 1865

UTI ( Unit Trust of India) Bank is the former name of

Ans : Axis Bank

First Bank in the world

Ans : Bank of Venice

First Bank to begin permanent issue of bank notes

Ans : Bank of England

First private bank in India

Ans : City Union Bank

ATM in India : HSBC

Internet Banking : ICICI Bank

Mutual Fund : Unit Trust-of India (UTI)

Credit card facility : Central Bank of India

First bank to get ISO Certificate : Canara Bank

Savings Bank Facility : Presidency Bank

First Indian bank to open branch outside India : Bank of India (London)

Online Banking : HDFC

Cheque facility : Bengal Bank

Talking ATM : Union Bank of  India

Indian bank to get Green Bond Award of Britain :YES Bank

Greenfield Bank licence awarded by RBI :YES Bank

RESERVE BANK OF INDIA

Reserve Bank of India act was passed in

Ans : 1934

Reserve Bank of India was established on

Ans : April 1,1935

The head quarters of RBI was initially established in

Ans : Kolkata

The headquarters of RBI was permanently shifted to Mumbai in

Ans : 1937

RBI was setup on the recommendation of

Ans : Hilton Young Commission (1926)

Hilton Young Commission was also known as

Ans : Royal Commission

The Bank known as Banker's Bank

Ans : RBI

The apex bank of India

Ans : RBI

The Central bank of India

Ans : RBI

The regulator of loans

Ans : RBI

The bank which is often referred as Mint Street

Ans : RBI

The Banking Ombudsman Scheme has been formulated by

Ans : RBI

The credit controller of India

Ans : RBI

The bank which represents India in- the IMF

Ans : RBI

RBI was nationalised on

Ans : January 1, 1949

Headquarters of RBI in Kerala

Ans : Thiruvananthapuram

The animal embossed on the emblem of Reserve Bank of India

Ans : Tiger

The tree embossed on the emblem of Reserve Bank of India

Ans : Palm Tree

First Governor of RBI

Ans : Sir Osborne Smith

First Indian to become the Governor of RBI

Ans : C.D. Deshmukh

The longest serving Governor of Reserve Bank of India

Ans : Benegal Rama Rao

Second Governor of RBI

Ans : James Taylor

First woman RBI Deputy Governor

Ans : K.J. Udeshi

The Indian Prime Minister who had served as Reserve Bank Governor

Ans : Man Mohan Singh

The only state which does not come under financial supervision of the RBI

Ans : Jammu & Kashmir

MAIN FUNCTIONS OF RBI

To work as monetary authority and implement its Monetary policy

To serve as issuer of bank notes

To Serve as banker to central and state governments

To serve as debt manager to central and state governments

To provide ways and means advances to the state governments

To Serve as banker to the banks and lender of last resort(LOLR) for them

To work as supervisor and regulator of the banking and financial system

Management of Foreign Exchange Reserves of the country

To support the government In the development of the country

The amount of funds that the banks are bound to keep with Reserve bank of India

Ans : Cash Reserve Ratio

The rate at which the banks borrow money from RBI

Ans : Repo rate

Repo rate is otherwise known as

Ans : Repurchase rate

The rate at which the RBI borrows money from Banks

Ans : Reverse Repo rate

The rate of interest which a central bank charges on the loans and advances to a commercial bank

Ans : Bank Rate

Bank rate is also referred to as

Ans : Discount rate

PUNJAB NATIONAL BANK

First Indian Bank purely managed by the Indians

Ans : Punjab National Bank

Founder of Pujab National Bank

Ans : Lala Lajpat Rai

Punjab National Bank was established in

Ans : Lahore

Punjab National Bank was founded in

Ans : 1894

Punjab National Bank began to function in

Ans : 1895

First bank in India to introduce the Voluntary Retirement Scheme (VRS)

Ans : Punjab National Bank

Head quarters of Punjab National Bank

Ans : New Delhi

Maha Bachat Scheme was started by

Ans : Punjab National Bank

New India was merged in Punjab National Bank in

Ans : 1993

STATE BANK OF INDIA (SBI)

Largest commercial bank in India

Ans : State Bank of India

Headquarters of SBI is at

Ans : Mumbai

The earlier name of SBI

Ans : Imperial Bank

The name Imperial Bank of India was suggested by

Ans : Lord John Keynes

Imperial Bank of India Act was passed in

Ans : 1920

The Imperial Bank of India was established in

Ans : 1921

The Imperial Bank of India became the State Bank of India on

Ans : July 1,1955

SBI was nationalised in

Ans : 1955

The bank which has the most number of branches in India

Ans : SBI

India's first floating ATM was launched by

Ans : SBI

First Indian bank to open a branch in Israel

Ans : SBI

First Malayali Chairman of SBI

Ans : John Mathai

First woman Chairperson of State Bank of India

Ans : Arundhati Bhatacharya

National poet who was depicted as the customer in the advertisement of SBI

Ans : Tagore

The policy adopted by SBI to bring back its old customers

Ans : Bank Vapassi

Five Associated Banks of SBI were merged with SBI on

Ans : March 31, 2017

The Prime Minister who took initiative for the merging of Associated banks of SBI

Ans : Narendra Modi

The bank which was merged with SBI along with the 5 Associated banks of SBI

Ans : Bharatiya Mahila Bank

ASSOCIATE BANKS OF SBI

State Bank of Hyderabad 

State Bank of Mysore

State Bank of Patiala

State Bank of Travancore  

State Bank of Bikaner & Jaipur

TAGLINE OF SBI

The Bank of Common Man

Pure Banking, Nothing else

With you always

The Banker to Every Indian

The Nation Bank on us

NATIONAL BANK FOR AGRICULTURAL AND RURAL DEVELOPMENT [NABARD]

NABARD was established on

Ans : 12th July 1982

Headquarters of NABARD is at

Ans : Mumbai

NABARD was established on the recommendation of

Ans : Sivaraman Committee

The apex bank in India for agriculture development

Ans : NABARD

The bank to facilitate credit flow for the promotion and development of agriculture

Ans : NABARD

India's specialised bank for Agriculture and Rural Development in India

Ans : NABARD

The bank known for its 'SHG Bank Linkage Programme'

Ans : NABARD

BHARATIYA MAHILA BANK (BMB)

First women's bank in India

Ans : Bharatiya Mahila Bank 

Headquarters of BMB

Ans : New Delhi

Bharatiya Mahila Bank was established on

Ans : November 19,2013

Bharatiya Mahila Bank was inagurated by

Ans : Manmohan sigh and Sonia Gandhi at Mumbai

India is the third country in the world to have a bank especially for women after

Ans : Pakistan and Tanzania

First Chairperson and Managing Director of Bharatiya Mahila Bank

Ans : Usha Anantha Subramanian

First branch of BMB was opened in

Ans : Mumbai

First branch of BMB was opened in Kerala at

Ans : Kamaleshwaram (Thiruvananthapuram)

The bank which was inaugurated on the 96th birth anniversary of Indira Gandhi

Ans : BMB

The committee related with the establishment of the BMB

Ans : MBN Rao Committee

The tag line of BMB

Ans : Empowering Women, Empowering India

BMB was merged with SBI on

Ans : March 31, 2017

REGIONAL RURAL BANK (RRB)

Regional Rural Banks were established on

Ans : October 2,1975

RRB was setup under recommendation of

Ans : Narasimham committee

First Regional Rural Bank was started in

Ans : Moradabad (UP)

Regional Rural Bank is popularly known as

Ans : Gramin Bank

State having most number of Regional Rural Banks in India

Ans : Uttar Pradesh

Regional Rural Banks have not been started in

Ans : Sikkim and Goa

Largest Regional Rural Bank in India

Ans : Kerala Gramin Bank

The Headquarters of Kerala Gramin Bank

Ans : Malappuram

LEAD BANK

Lead Bank system in India was started in

Ans : 1969

The Committee which recommended for the Lead bank

Ans : Gadgil Committee

The bank which works for financial and industrial development of the district concerned

Ans : Lead Bank

LAND DEVELOPMENT BANK

The bank which provides loan for digging wells, purchasing seeds etc. under the security of properties

Ans : Land Development Bank

The bank which entertains Green Revolution

Ans : Land Development Bank

First Land Development Bank was started in

Ans : Punjab

NEDUNGADI BANK

The first bank in Kerala is

Ans : Nedungadi Bank

Nedungadi Bank was founded in

Ans : 1899

Founder of Nedungadi Bank

Ans : Appu Nedungadi

Nedungadi Bank merged with

Ans : Punjab National Bank

Nedungadi Bank merged with Punjab National Bank in

Ans : 2003