Economics Part 2 Revision Test in English

Explanation: Except GST all others comes under Direct Tax while Goods and service Tax is an Indirect Tax. Indirect Tax is one if the Tax incidence and Tax impact lies at different Place.

Explanation: 1921- Acworth Committee recommended to Split Railway budget from General Budget and it came into effect in 1924. 2017-2018 BibekDebroy Committee recommended to merge the Railway Budget.

Explanation: Adam Smith written in a book “Wealth of Nation” described about the Economics and Capitalistic Economy in 1776.

Explanation: India always performs deficit Budget.

Explanation: Before the introduction of GST Corporate Tax created more Revenue.

Explanation: Largest Revenue Receipts for the government is Tax.Others are Non-tax Revenue Receipts are Grants, Transfers, Profits from government organization, fiscal charges, fees and charges, interest paid to Indian Government.

Explanation: Malthus Population Shows that in which Population grows at a rate of 2,4,8,16,32 while food grain grows at a rate of 2,4,6,8..

Explanation: Greek word called “OIKONOMIA” meaning House hold Management.

Explanation: Repo rate is increased by Monetary Policy Committee formed in 2016.

Explanation: CPI is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

Explanation: It represents the long run trend in the price level.

Explanation: It was Established in May 2, 1951. Head Quarters at New Delhi which is responsible for co-ordination of statistical activities in the country.

Explanation: Fiscal authority of the country is taken care by Union Government.

Explanation: Money where the face value of notes or coins is unrelated to the value of the material of which they are composed.

Explanation: Because, RBI controls the Monetary authority of the country.

Explanation: Maximum denomination for coins is 1000 rupee coin.

Explanation: It is the act of persuading a person or group to act in a certain way through rhetorical appeals, persuasion or implicit threats, as opposed to the use of outright coercion or force and it is commonly used in central Banks.

Explanation: 5 year plans are prepared by the planning commission of india which is now designated as Niti Aayog.

Explanation: Bimonthly RBI will release the report on Repo Rate, Reverse Repo Rate, Bank Rate and CRR.

Explanation: Decrease in CRR will decrease the SLR.

Explanation: It was introduced by the government of india for the first time in 1966-67 for wheat in the wake of Green Revolution.

Explanation: The Minimum amount of RTGS is 2 lakhs.

Explanation: NABARD was established on 12 July 1982 by a Special act by the parliament. The main objective behind the set up is to uplift rural india by increasing the credit flow for elevation of agriculture and rural non farm sector.

Explanation: KYC is a procedure by which banks can obtain information and details about the identity and address of the customers.

Explanation: In this the successive payments will be missed by the customer.

Explanation: It was proposed by Iltalian statistician Corrado Gini in 1912.

Explanation: City Union Bank is a Century old private Sector Bank.

Explanation: It was Established in May 2, 1951. Head Quarters at New Delhi which is responsible for co-ordination of statistical activities in the country.

Explanation: It was introduced by the government of india for the first time in 1966-67 for wheat in the wake of Green Revolution. Based on the Recommendation of Agricultural costs and Prices MSP is determined.

Explanation: It was Headed by Prof. PC. Mahalnobis and two other members.

Explanation: It was first Passed in parliament in 29 March in 2017.

Explanation: Reduction in statutory liquidity ratio (SLR) and the cash reserve ratio (CRR) were recommended by the Narasimham Committee Report, 1991. It was proposed to cut down the SLR from 38.5 percent to 25 percent within a time span of three years. Similarly, it was proposed that the CRR be brought down to 3 to 5% over a period of four years.

Explanation: It was Written by Ambedkar.

IGST: Collected by the Central Government for inter-state sale (Eg: Maharashtra to Tamil Nadu)

Explanation: It was established in 1951 by president of India under Article 280.

Explanation: One rupee and two rupee notes were first printed in India in the year 1917. The Reserve Bank of India is empowered to issue the Government of India notes since 1935. 500 rupee note currency was introduced later. In 1940, one Rupee notes were issued again.

Explanation:MEC was first introduced by J.M Keynes in 1936 as an important determinant of autonomous investment.

Explanation: The origin of accelerator principle can be traced back in the writings of Aftalion (1909), Hawtrey (1913) and Bickerdike(1914). However, the systematic development of the simple accelerator model was made by J.M.Clark,in 1917.

Explanation: The first hyper inflation of the 21st century Zimbabwe’s annual inflation rate surged to an unprecendented 3714 percent at the end of April 2007.

Explanation: The Ricks Banks of Sweden, which had sprung from a private bank established in 1656 is the oldest central bank in the world.

Explanation: The first rupee was introduced by Sher Shah Suri based on a ratio of 40 copper pieces (paisa) per rupee. The name was derived from the Sanskrit word Rupya, meaning silver. Each banknote has its amount written in 17languages (English and Hindi on the front and 15 other on the back) illustrating the diversity of the country.

Explanation: RBI acts as a custodian of FOREX. It administers and enforces the provision of Foreign Exchange Management Act (FEMA), 1999. RBI buys and sells foreign currency to maintain the exchange rate of Indian rupee v/s foreign currencies.

Explanation: RBI introduced the Banking Ombudsman Scheme in 1995. Under this scheme, the complainants can file their complaints in any form, including online and can also appeal to the Ombudsman against the awards and the other decisions of the Banks.

Explanation: With the aim of bridging the gap in agricultural finance and to extend credit for projects involving agricultural development, an organization called the agricultural Refinance Development Corporation (ARDC) was established by an Act of Parliament and it started functioning from July 1, 1963.

Explanation: The Development Bank was a wholly owned subsidiary of the Reserve Bank of India upto February 15, 1976.It was delinked from the RBI with effect from February 16, 1976 and made an autonomous corporation fully owned by the Government of India.

Explanation: The Goods and Service Tax Act was passed in the Parliament on 29th March 2017. The Act came into effect on 1st July 2017

Explanation: When the outcome of any activity is taken as the base of any budget, such budget is known as ‘Performance Budget’. For the first time in the world, the performance budget was made in USA.

Explanation: Finance commission is a quasijudicial body set up under Article 280 of the Indian Constitution. It was established in the year 1951, to define the fiscal relationship framework between the Centre and the state.

Explanation: The 15th Finance Commission has been set up in November 2017. Its recommendations will be implemented starting 1 April 2020.

Explanation: To determine the quantum of grantsin-aid to be given by the Centre to states [Article 275 (1)] and to evolve the principles governing the eligibility of the state for such grant-in-aid

Explanation: There are 17 river basins in Tamil Nadu.The main rivers are Palar, Cheyyar, Ponnaiyar, Cauvery, Bhavani, Vaigai, Chittar, Tamiraparani, Vellar, NoyyalSiruvani, Gundar, Vaipar, Valparai etc. Wells are the largest source of irrigation in Tamil Nadu (56%).

Explanation: Molybdenum is found in Dharmapuri, and is the only source in the country.

Explanation: Tamil Nadu ranks third in cement production in India (First Andhra Pradesh, Second Rajasthan). Among 10 largest cement companies in India as on 2018, Ramco Cement and India Cement find prominent place.

Explanation: There are about 20 hydro electric units in Tamil Nadu. The prominent units are Hundah, Mettur, Periyar, Maravakandy, Parson Valley etc.

Explanation: Tamil Nadu has a three – tier health infrastructure comprising hospitals, primary health centres, health units,community health centres and subcentres. As of March 2015, the State had 34 district hospitals, 229 sub-divisional hospitals, 1,254 primary health centres,7,555 Sub-centres and 313 community health centres.