Indian Economy MCQs

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Monopsony refers to a market structure in which a single buyer substantially controls the market as the major purchaser of goods and services offered by many sellers.

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Stagflation refers to an economic situation where high inflation, stagnant economic growth, and elevated unemployment occur simultaneously. The term was coined in the 1960s. A notable period of stagflation happened during the 1970s oil crisis when global oil prices rose sharply. Policymakers find stagflation challenging because inflation and unemployment move in opposite directions to typical business cycles.

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The Reserve Bank of India (RBI) is the primary regulator for Housing Finance Companies (HFCs) in India, having taken over these powers from the National Housing Bank (NHB) in 2019. While the NHB remains responsible for the supervision and development of the housing finance sector, regulatory authority, including licensing and setting prudential norms, rests with the RBI.   In 2019, the Finance Act 2019 amended the National Housing Bank Act, 1987, transferring regulatory control from the NHB to the RBI to ensure uniform regulation of all lending institutions.

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Chetan Bhagat worked as an investment banker at Goldman Sachs and Deutsche Bank in Hong Kong for about 11 years. He graduated from IIT Delhi in 1995 and IIM Ahmedabad in 1997. Bhagat wrote his first novel, Five Point Someone, while still an investment banker. He left banking after publishing his third novel in 2008.

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The indirect taxes like VAT etc are paid by everyone if they buy any product irrespective of financial conditions. Direct taxing is considered the most progressive taxing mechanisms because they justify the income levels of the people

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RBI manages the payment and settlement system in India.

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The United Nations Conference on Trade and Development (UNCTAD) has published the World Investment Report annually since 1991. The report compiles trends and data on foreign direct investment (FDI) and operations of multinational enterprises worldwide. UNCTAD’s World Investment Report includes statistics, rankings, and analyses relevant to FDI for over 200 economies.

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The Small Industries Development Organization (SIDO) is the national SME Development Agency of India. It is a major constituent of the Ministry of Small Scale Industries of the Government of India. It was Set up in 1954, SIDO provides services to small industry throughout the country by implementing a broad program of activities and services like Entrepreneurship Development, Tool Room Services, Testing Centres, Extension Services, R&D Services, etc.

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Infrastructure Finance Companies in India are registered with the Reserve Bank of India. They primarily provide long-term financial assistance for infrastructure projects. Their main activities include lending for infrastructure development, refinancing, and offering subordinated loans. They also facilitate equity participation and consulting services for large-scale infrastructure projects across sectors such as energy, transportation, and telecommunications. They do not engage in retail banking or property management.

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A grant-in-aid is the transfer of money from the federal government to a state government, local government or individual person for the purposes of funding a specific project or program. It is money coming from a central government for a specific project. This kind of funding is usually used when the government and parliament have decided that the recipient should be publicly funded.