Q.651. NIFTY is associated with
(a) Cloth Market Price Index
(b) Consumer Price Index
(c) BSE Index
(d) NSE Index
Ans: (D)
Notes: The NSE’s key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalization. Nifty Fifty was an informal term used to refer to 50 popular large cap stocks on the New York Stock Exchange in the 1960s and 1970s that were widely regarded as solid buy and hold growth stocks. NIFTY means National Index for Fifty.
Q.652. The data collection for national income estimation is conducted in India by—
(a) The Finance Ministry of the Government of India
(b) The RBI
(c) The NSSO (National Sample Survey Organi-sation)
(d) None of these
Ans: (C)
Notes: The National Sample Survey Office(NSSO) in India is a unique setup to carry out surveys on socioeconomic, demographic, agricultural and industrial subjects for collecting data from households and from enterprises located in villages and in the towns. It is a focal agency of the Government of India for collection of statistical data in the areas which are vital for developmental planning.
Q.653. Scheduled Banks have to be registered with
(a) SEBI
(b) RBI
(c) Finance Ministry
(d) SBI
Ans: (B)
Notes: The scheduled primary (urban) cooperative banks are required to maintain with the Reserve Bank of India an average daily balance, the amount of which should not be less than 5 per cent of their net demand and time liabilities in India in terms of Section 42 of the Reserve Bank of India Act, 1934. Non-scheduled (urban) cooperative banks, under the provision of Section 18 of Banking Regulation Act, 1949 (As Applicable to Cooperative Societies) should maintain a sum equivalent to at least 3 per cent of their total demand and time liabilities in India on day-to-day basis.
Q.654. Which organisation collects data for the unorganised sector ?
(a) NSSO
(b) CSO
(c) ASI
(d) RBI
Ans: (A)
Notes: The National Sample Survey Office(NSSO) in India is a unique setup to carry out surveys on socioeconomic, demographic, agricultural and industrial subjects for collecting data from households and from enterprises located in villages and in the towns. The unregistered manufacturing sub-sector, a complement set to the registered manufacturing sub-sector, covers all the residual units which are not covered under the registered manufacturing sector. Thus, the unregistered manufacturing sector covers all the manufacturing, processing, repair & maintenance services units employing less than 10 workers and using power or less than 20 workers and not using power. The data on unorganised sector is collected through periodic surveys by the NSSO.
Q.655. The definition of ‘small-scale industry’ in India is based on
(a) sales by the unit
(b) investment in machines and equipments
(c) market coverage
(d) export capacity
Ans: (B)
Notes: Generally, small-scale sector is defined in terms of investment ceilings on the original value of the installed plant and machinery. As per the Ministry of Micro, Small & Medium Enterprises of India, a small scale industry is an industrial undertaking in which the investment in fixed assets in plant and machinery whether held on ownership terms on lease or on hire purchase does not exceed Rs 10 million. Fixed capital investment in a unit has been adopted as criteria to make a distinction between small-scale and largescale industries. This limit is being continuously raised up wards by government.
Q.656. ‘NABARD’ is associated with the development of
(a) agricultural sector and rural areas
(b) heavy industries
(c) banking sector
(d) real estates
Ans: (A)
Notes: National Bank for Agriculture and Rural Development (NABARD) has been accredited with “matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas in India”. It serves as an apex financing agency for the institutions providing investment and production credit for promoting the various developmental activities in rural areas.
Q.657. Government takes ‘ways and means advances’ from
(a) RBI
(b) IDBI
(c) SBI
(d) ICICI
Ans: (A)
Notes: Ways and means advances (WMA) is a mechanism used by Reserve Bank of India (RBI) under its credit policy by which provides to the States banking with it to help them to tide over temporary mismatches in the cash flow of their receipts and payments. These are temporary advances (overdrafts) extended by RBI to the government. Section 17(5) of RBI Act allows RBI to make WMA both to the Central and State governments. It aims to bridge the interval between expenditure and receipts.
Q.658. Kisan Credit Card scheme was introduced in
(a) 1991
(b) 1996
(c) 1998
(d) 2000
Ans: (C)
Notes: Kisan Credit Card Scheme (KCC) aims at providing adequate and timely support from the banking system to the farmers for their short-term credit needs for cultivation of crops. This mainly helps farmer for purchase of inputs etc., during the cropping season. Credit card scheme proposed to introduce flexibility to the system and improve cost efficiency. It was introduced in August 1998.
Q.659. Compared to the rich the poor save
(a) A larger part of their income
(b) An equal part of their income
(c) A smaller part of their income
(d) All of their incomes
Ans: (C)
Notes: A “subsistence” or necessary level of consumption produces differences in consumption growth rates across income levels. This implies that poor households have lower saving rates because they cannot “afford to save” after buying the necessities. Institutional and behavioral mechanism also leads to low levels of saving among the poor.
Q.660. One of the main factors that led to rapid expansion of Indian exports is
(a) Imposition of import duties
(b) Liberalisation of the economy
(c) Recession in other countries
(d) Diversification of exports
Ans: (D)
Notes: India has rapidly diversified its exports markets from the traditional export partners towards emerging and developing economies. This has played a crucial role in cushioning India’s exports growth during the recent years, which has remained fairly steady despite global economic slowdown. The rapid diversification of India’s export destinations is encouraging. The widely spreading export markets can be noted from the narrowing dependence on selected economies for exports.