Economics and Finance Flashcards

What does GDP stand for in economics?

Answer: Gross Domestic Product

GDP stands for Gross Domestic Product, which measures the total monetary value of all goods and services produced within a country's borders in a given period.

Which organization is responsible for formulating and implementing monetary policy in India?

Answer: Reserve Bank of India (RBI)

The Reserve Bank of India (RBI) is India's central bank and is responsible for regulating the money supply and maintaining financial stability through monetary policy.

What is the full form of NITI Aayog?

Answer: National Institution for Transforming India

NITI Aayog stands for National Institution for Transforming India, which replaced the Planning Commission in January 2015.

Goods and Services Tax (GST) is classified as which type of tax?

Answer: Indirect tax

GST is an indirect tax levied on the supply of goods and services, collected by the seller from the buyer and remitted to the government.

Fiscal deficit is defined as the difference between the government's total expenditure and its total receipts excluding which of the following?

Answer: Borrowings

Fiscal deficit = Total Expenditure − Total Receipts (excluding borrowings); it represents the amount the government needs to borrow to meet its expenses.

India's First Five Year Plan was launched in which year?

Answer: 1951

India's First Five Year Plan was launched in 1951 under Prime Minister Jawaharlal Nehru, focusing primarily on agricultural development.

Which of the following best describes inflation?

Answer: A sustained increase in the general price level

Inflation refers to a sustained and general rise in the price level of goods and services in an economy over a period of time, reducing the purchasing power of money.

The repo rate is defined as the rate at which the Reserve Bank of India lends money to which entities?

Answer: Commercial banks in India

The repo rate is the rate at which the RBI lends short-term funds to commercial banks against government securities, used as a key tool to control inflation and liquidity.

SEBI (Securities and Exchange Board of India) primarily regulates which sector?

Answer: Securities and capital markets

SEBI was established in 1992 to regulate and develop the securities markets in India, protecting investors and ensuring fair market practices.

What does NABARD stand for?

Answer: National Bank for Agriculture and Rural Development

NABARD stands for National Bank for Agriculture and Rural Development, established in 1982 to provide credit and development support to agriculture and rural industries.

What is Cash Reserve Ratio (CRR)?

Answer: The minimum percentage of deposits banks must keep as reserves with the RBI

CRR is the minimum percentage of a bank's net demand and time liabilities (NDTL) that must be maintained as cash reserves with the RBI, used to control liquidity.

What does FDI stand for in the context of international economics?

Answer: Foreign Direct Investment

FDI stands for Foreign Direct Investment, which refers to investment made by a company or individual in one country into business interests in another country.

The headquarters of the Reserve Bank of India is located in which city?

Answer: Mumbai

The Reserve Bank of India's central office is located in Mumbai (formerly Bombay), though it was originally established in Kolkata in 1935 and moved to Mumbai in 1937.

Which of the following is a direct tax in India?

Answer: Income Tax

Income Tax is a direct tax levied directly on the income of individuals and entities and paid directly to the government by the taxpayer.

Which sector contributes the largest share to India's Gross Domestic Product (GDP)?

Answer: Services sector

The services sector (including IT, banking, retail, and hospitality) contributes over 50% to India's GDP, making it the largest contributor to the Indian economy.

The base year currently used for calculating India's GDP at constant prices is:

Answer: 2011-12

India revised its GDP base year to 2011-12 in January 2015, replacing the earlier base year of 2004-05, to more accurately reflect the current structure of the economy.

What does the term 'disinvestment' mean in the context of the Indian government?

Answer: The government selling its stakes in public sector enterprises

Disinvestment refers to the process by which the government reduces its shareholding in Public Sector Undertakings (PSUs) by selling equity to raise funds and improve efficiency.

India's Union Budget is typically presented in Parliament on which date?

Answer: February 1

Since 2017, the Union Budget has been presented on February 1 each year, changed from the last working day of February by Finance Minister Arun Jaitley.

What does Balance of Trade (BoT) measure?

Answer: The difference between the value of a country's exports and imports of goods

Balance of Trade measures the difference between a country's merchandise (goods) exports and imports; a positive balance means a trade surplus and a negative balance means a trade deficit.

The International Monetary Fund (IMF) was established as a result of which international conference?

Answer: Bretton Woods Conference, 1944

The IMF was established at the Bretton Woods Conference in 1944, held in New Hampshire, USA, to promote international monetary cooperation and global financial stability.