Financial Market and External Sector Overview
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Questions and Answers

Which term refers to the phenomenon where individuals tend to overuse a common resource?

  • Trade Creation
  • Transfer Price
  • Usury
  • Tragedy of the Commons (correct)

    • Which of the following concepts relates to the government payments made to individuals without any exchange of goods or services?

  • Unsecured Loan
  • Transfer Earnings
  • Transfer Payments (correct)
  • Underwriting

    • What is the term used to describe the phenomenon of increased consumption due to the perceived luxury status of a product?

  • Usury
  • Veblen Effect (correct)
  • Trade Policy
  • UGIPS

    • What does usury refer to in economic terms?

    <p>The act of lending money at exorbitant rates of interest</p> Signup and view all the answers

    Which financial concept refers to the price at which goods or services are traded between different parties?

    <p>Transfer Price</p> Signup and view all the answers

    Which of the following topics relates to India's Taxation and Budgeting reforms?

    <p>Understanding the economy through GST</p> Signup and view all the answers

    What concept is associated with the assessment of public health in India?

    <p>Burden of Diseases</p> Signup and view all the answers

    Which Act is relevant to the recent updates in India's financial market?

    <p>Insolvency and Bankruptcy Law</p> Signup and view all the answers

    Which of the following is NOT a focus of the revised Sustainability and Climate Change section?

    <p>India's Trade Relations</p> Signup and view all the answers

    Which of these topics was NOT mentioned regarding the Human Development in India updates?

    <p>External Debt Composition</p> Signup and view all the answers

    What is a significant recent addition in the Economic Concepts and Terminologies section?

    <p>Liquidity Coverage Ratio</p> Signup and view all the answers

    In the context of India's external sector, which of the following topics was updated?

    <p>Composition of Trade</p> Signup and view all the answers

    What topic concerning financial regulations is highlighted in the recent updates?

    <p>Recapitalisation of PSBs</p> Signup and view all the answers

    What is the focus of the evaluation outlined in the Critical Evaluation section?

    <p>Centralized decision-making in governance</p> Signup and view all the answers

    Which of the following represents the highest level of planning in the multi-level planning framework?

    <p>Centre-level Planning</p> Signup and view all the answers

    What is one of the major criticisms regarding the implementation of economic reforms?

    <p>Emphasis on public sector undertakings</p> Signup and view all the answers

    What is NITI Aayog primarily concerned with?

    <p>Decentralized governance and planning</p> Signup and view all the answers

    Which level of planning is represented as the grassroots stratum in the planning framework?

    <p>Local-level Planning</p> Signup and view all the answers

    What is a primary focus of the Planning Commission as per the provided content?

    <p>Centralized economic guidance</p> Signup and view all the answers

    Which strategy is highlighted as problematic due to its lop-sided nature?

    <p>Employment strategy</p> Signup and view all the answers

    Which of the following is labeled as a faulty strategy in the planning process?

    <p>Industrial location policy</p> Signup and view all the answers

    What is a key aspect of economic study according to the definitions provided?

    <p>How societies utilize scarce resources</p> Signup and view all the answers

    Which statement about human wants and resources is accurate?

    <p>Resources are limited and human wants are infinite</p> Signup and view all the answers

    What does efficient resource use in economics imply?

    <p>Prioritizing some needs over others due to scarcity</p> Signup and view all the answers

    Which definition emphasizes the societal aspect of economics?

    <p>Economics examines how societies use scarce resources</p> Signup and view all the answers

    What is implied by the term 'scarcity' in economics?

    <p>Resources are limited compared to human wants</p> Signup and view all the answers

    How are choices depicted in the context of economics?

    <p>Choices must be made prioritizing limited resources</p> Signup and view all the answers

    What is a primary reason economics is considered an important discipline?

    <p>It addresses the challenge of resource allocation under scarcity</p> Signup and view all the answers

    In economics, what often happens to some needs when choices are made?

    <p>They may never get fulfilled</p> Signup and view all the answers

    What is one primary challenge that economies face?

    <p>Guaranteeing the availability of goods and services</p> Signup and view all the answers

    What determines the distribution of goods and services in an economy?

    <p>The socio-economic composition of the population</p> Signup and view all the answers

    What is essential for ensuring that the production capacity is built in an economy?

    <p>Proper capital formation or investment</p> Signup and view all the answers

    Which of the following is a question regarding the organization of the production process in an economy?

    <p>Should production be managed by a mixture of state and private enterprises?</p> Signup and view all the answers

    What is a significant concern regarding the source of investment in an economy?

    <p>The selection of the government, domestic private sector, or foreign entities</p> Signup and view all the answers

    How do economies generally address the challenge of fulfilling the population's needs?

    <p>By ensuring a proper level of production capacity</p> Signup and view all the answers

    What role does a distribution network play in an economy?

    <p>It ensures communication between producers and consumers</p> Signup and view all the answers

    What does building an effective supply network require?

    <p>A blend of both state and market-driven approaches</p> Signup and view all the answers

    What is the primary concept proposed by Marx regarding the transition from Socialism to communism?

    <p>It is a transitional stage that may not occur in reality.</p> Signup and view all the answers

    What role does competition play in a market economy according to the content?

    <p>It is essential for public well-being.</p> Signup and view all the answers

    Which economic system is characterized by decisions taken solely by the state?

    <p>Centrally Planned Economy.</p> Signup and view all the answers

    How did capitalism respond to critiques from socialist and communist economies?

    <p>By labeling socialist practices as 'state capitalism'.</p> Signup and view all the answers

    What is meant by the 'invisible hand' in economic terms?

    <p>Market forces creating equilibrium without interference.</p> Signup and view all the answers

    What is a common characteristic of a Mixed Economy?

    <p>Integration of both private and state enterprises.</p> Signup and view all the answers

    What aspect of capitalism was recognized in the USA immediately after its independence?

    <p>Adam Smith's ideas were integrated into public policy.</p> Signup and view all the answers

    In a Market Economy, who typically makes decisions regarding production and pricing?

    <p>Private enterprises exclusively.</p> Signup and view all the answers

    Study Notes

    Financial Market

    • Revised and updated with new items: NPAs upsurge, Standing Deposit Facility Scheme, Insolvency and Bankruptcy Law, PSB recapitalisation, FRDI Bill, Insurance penetration and density.

    External Sector

    • Revised and updated with topics: India's external performance, trading partners, trade composition, foreign exchange reserves, external debt (and its composition), WTO Buenos Aires Conference, and India's role.

    Taxation and Budgeting

    • New topics added: understanding the economy through GST, demonetisation's impact on tax compliance, following FRBM Review Committee advice, debt rule, fiscal glide path, and general government fiscal situation.

    Sustainability and Climate Change

    • Revised and updated to reflect changing challenges and priorities: COP22, COP23, India & SDGs, climate change finance, and future policy outlook.

    Human Development in India

    • New issues included: burden of diseases, the "India: Health of Nation's States-2017" report, DALY concept, Swachh Bharat Mission performance, healthcare expenditure, and related concerns.

    Economic Concepts and Terminologies

    • Revised and updated with contemporary issues: Liquidity Coverage Ratio, Letter of Undertaking, Net Stable Funding Ratio, Standing Deposit Facility Scheme, SWIFT, and more.

    Multiple Choice Questions (MCQs)

    • Updated to reflect current issues: Standing Deposit Facility Scheme, Letter of Undertaking, SWIFT, Liquidity, Interest Rate, FRBM Act Review, Liquidity Coverage Ratio, Rupee convertibility, inverted custom duty, Net Stable Funding Ratio, Cryptocurrency, new national income accounting method, comprehensive public asset management, and Happiness Index.

    Five-Year Plans

    • Key elements of India's 5-year plan framework, programme evaluation, organisational structure, evaluation as a plan scheme, NITI Aayog's role, transforming India, changing contours of India, and the principle guiding planning

    Economic Reforms

    • Introduction, economic reforms, planning models, Washington Consensus, mixed economy models, etc.

    Economic Studies Overview

    • Economics studies resource allocation choices, individual, firm, government, and societal choices. Human life needs are infinite but resources are limited, necessitating choice-making. Economics studies how society makes prioritized choices using scarce resources to meet needs and wants (it's both an art and a science). Different economies face challenges in resource availability and supply networks, impacting living standards.
    • Different economic distribution models exist, varying according to population needs, and state vs. market supply.
    • Economists have various definitions, including how societies use scarce resources to produce valuable commodities and distribute them among people, highlighting resource scarcity and efficient use.

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    Description

    Test your knowledge on key updates and revisions in the financial market and external sector of India. This quiz covers critical topics such as NPAs, insolvency laws, India's trade performance, GST, and climate change policies. Stay informed on how these elements shape the economy and environment.

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