Indian Economy - Banking and Policy

The National Stock Exchange of India Limited (NSE) is the leading stock exchange of India, located in Mumbai. NSE was established in 1992 as the first demutualised electronic exchange in the country.

Direct taxes are paid directly to the government by the taxpayer, like income tax, corporation tax, and estate tax. Sales tax is an indirect tax because it is collected by intermediaries (retailers) from consumers and then passed to the government - the burden can be shifted. Estate tax, corporation tax, and wealth tax are direct taxes.

Option (3) is the correct answer. 

The Fourth Five Year Plan (1969-74) explicitly adopted poverty alleviation as a primary objective for the first time in India's planning history. It introduced programs like the Rural Works Programme and focused on redistributive policies. Earlier plans prioritized industrialization and agriculture over direct poverty intervention.

Correct answer is (2). 

It is easy to suggest that one may park the funds in equity. In times of inflationary turbulence, there could be greater uncertainty in equity returns, which, in any case, are not sure guarantees. The best way to hedge against inflation is to park funds in saving instruments that offer interest rates in excess of the average rate of inflation. 

Disguised unemployment is the most prevalent type in India, especially in the agricultural sector where more people are employed than actually required. In this situation, marginal productivity of labor is zero or negative - removing some workers doesn't reduce output. This occurs due to surplus labor, lack of alternative employment, and the pressure of population on limited resources.

Land Development Banks in India are specifically designed to provide long-term credit to farmers for agricultural development and land improvement.

The Reserve Bank of India (RBI) acts as the central bank and the regulator of the banking system in India, earning it the title 'Banker of the Banks'.

As an economy develops, the share of agriculture in the GDP typically declines while the share of the service and industrial sectors increases. This is a standard structural change in the Indian economy.

The Bombay Stock Exchange (BSE), established in 1875, is the oldest stock exchange in Asia and India.

Under the Negotiable Instruments Act in India, the dishonor of a cheque due to insufficient funds is a criminal offence.

The Economic Survey of India is an annual document presented by the Ministry of Finance, detailing the state of the economy before the Union Budget.

An indirect tax is a tax collected by an intermediary from the person who bears the ultimate economic burden of the tax. Excise duty is a classic example of an indirect tax levied on goods produced within a country.

The Securities and Exchange Board of India (SEBI) was established as a non-statutory body in 1988. It later received statutory powers through the SEBI Act of 1992.

The Indian Rupee is primarily linked to a basket of currencies, but for international trade and settlement, the American Dollar is the dominant reference currency.

Value Added Tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. Excise duties are often structured as value-added taxes in modern systems.

The Second Five Year Plan (1956-1961), also known as the Mahalanobis Plan, focused heavily on rapid industrialization, particularly the development of heavy industries.

Inflation is generally defined as a situation where there is too much money chasing too few goods. An increase in money supply combined with a decrease in production leads to rising price levels.

India is considered a mixed economy because it features a combination of both private and public sectors, allowing for both market mechanisms and government intervention.

The Over the Counter Exchange of India (OTCEI) was incorporated in 1990 and became operational in 1992. Given the options, 1989 is often cited in older textbooks as the formation year for the regulatory framework.

Inflation is defined as a sustained increase in the general price level of goods and services in an economy over a period of time, measured by a price index.