Economics · Banking Financial Awareness

Indian Economy and Policy

1,777 Questions

Indian economy and policy questions cover the structural dynamics and regulatory measures shaping the national market. Topics include foreign direct investment, taxation reforms, and government initiatives for growth. This section is highly relevant for competitive exams requiring economic awareness.

Foreign direct investmentGST impactEconomic reformsTrade policyGovernment economic initiatives

Indian Economy and Policy Questions

Multiple choice function, distinction and objectives of chambers of commerce role of chambers of commerce & industry and trade associations internal trade commerce business studies

Where do the Indian Chamber of Commerce and Industry intervene?

  1. In transportation or inter state movement of goods.

  2. In octroi and other local levies.

  3. Weights and measures and prevention of duplication brands.

  4. All of the above.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Role of Indian Chambers of Commerce and Industry. These various Indian chambers of commerce are crucial in the growth and the sustenance of the internal trade industries. They cooperate with the central and state government and other government agencies to remove some of the barriers to trade.

The Federation of Indian Chambers of Commerce and Industry (FICCI) is an association of business organisations in India. Established in 1927, on the advice of Mahatma Gandhi by GD Birla and Purushottam Das Thakurdas, it is the largest, oldest and the apex business organisation in India.

Multiple choice function, distinction and objectives of chambers of commerce role of chambers of commerce & industry and trade associations internal trade commerce business studies

The Indian Chambers of Commerce and Industry has been playing a catalytical role in strengthening____________ to make it an important part of overall economic activity.

  1. external trade

  2. agricultural activities

  3. internal trade

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Domestic trade, also known as internal trade , is the exchange of domestic goods within the boundaries of a country. This may be sub-divided into two categories, wholesale and retail.

Multiple choice function, distinction and objectives of chambers of commerce role of chambers of commerce & industry and trade associations internal trade commerce business studies

Name functions that are performed by the Indian Chamber of Commerce and Industry.

  1. Increase in interstate movement of goods.

  2. Introduce transparency.

  3. Remove layers of inspection and bureaucratic hurdles.

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Role of Indian Chambers of Commerce and Industry. These various Indian chambers of commerce are crucial in the growth and the sustenance of the internal trade industries. They cooperate with the central and state government and other government agencies to remove some of the barriers to trade. A chamber of commerce (or board of trade) is a form of business network, for example, a local organization of businesses whose goal is to further the interests of businesses. Business owners in towns and cities form these local societies to advocate on behalf of the business community.
Multiple choice commerce nature and scope of foreign trade characteristics, necessity, importance, advantages and disadvantages of foreign trade importance, scope and benefits of international trade trading and economic organisations

The Unified Exchange Rate System was introduced in _______.

  1. 1990

  2. 1991

  3. 1993

  4. 1996
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Unified Exchange Rate System was introduced in India in 1993 as part of the transition to a market-determined exchange rate regime.

Multiple choice civics agricultural development in india social and economic change food storage and conservation of environment independent india (the first 30 years - 1947-77)

Economic survey is presented on _______.

  1. 27th February

  2. 28th February

  3. 15th March

  4. 1st April
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Economic survey is presented on 27th February. Economic survey is presented in the Parliament, by the Finance Minister, before the presentation of the Union Budget. Economic survey helps to forecast future events.

Multiple choice economics the story of village palampur farming and non-farming activities in village non - economic activities economy of a village

Choose the correct answers from the alternatives given.
In India, agriculture income is calculated by _______________.

  1. Output Method

  2. Input Method

  3. Expenditure Method

  4. Commodity flow method
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In India agriculture, forestry and logging, fishing mining and quarrying, registered manufacturing and construction units are included in category.A. The output method is applied to category A. The value added by this category is found by subtracting the value of raw materials and other inputs from the aggregate of commodity-wise output
Expenditure method- This method measures the National income sum total of final expenditure incurred by household, business firm. Govt. and Foreigners
Commodity flow method: This method is used to estimate the purchase of commodities by intermediate or final users. This method generally begins with an estimate of the total supply of a commodity available for domestic users.

Multiple choice organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

Which of the following is an advantage of MNC?

  1. Develop Monopolies

  2. Facilitate Inflow of Foreign Exchange

  3. Lead to Brain Drain in Developing Countries

  4. All of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Foreign exchange transaction is a type of currency transaction that involves two countries. Generally, a foreign exchange transaction involves conversion of currency of one country with that of another. The conversion of currency in a foreign exchange transaction can be performed.

Multiple choice elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

Which of the following is not key advantage of MNC?

  1. Technology movement

  2. Support enterprises in host countries

  3. Production duplication

  4. Provided services of professionals
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Multinational organisations have the ability to source labor cheaply. The ability to operate in multiple different companies builds in the ability to capitalize on cheap labor markets. 

Multiple choice elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

Which of the following is/are advantage of MNC's?

  1. MNCs bring inward investment to countries that are not their home base.

  2. MNCs bring with them new ideas and new techniques that can help to improve the quality of production and help boost the quality of human capital in the host country

  3. MNCs pay large sums in taxes to the host government

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation


  • Access to Consumers – Access to consumers is one of the primary advantages that the MNCs enjoy over companies with operations limited to the smaller region. Increasing accessibility to wider geographical regions allows the MNCs to have a larger pool of potential customers and help them in expanding, growing at a faster pace as compared to others.
  • Accesses to Labor – MNCs enjoy access to cheap labor, which is a great advantage over other companies. Taxes and Other Costs – Taxes are one of the areas where every MNC can take advantage. Many countries offer reduced taxes on exports and imports in order to increase their foreign exposure and international trade. 
  • Overall Development – The investment level, employment level, and income level of the country increases due to the operation of MNC’s. Level of industrial and economic development increases due to the growth of MNCs.
  • Technology – The industry gets the latest technology from foreign countries through MNCs which help them improve on their technological parameter.
  •  R&D – MNCs help in improving the R&D for the economy.
  • Exports & Imports – MNC operations also help in improving the Balance of payment. This can be achieved by the increase in exports and a decrease in the imports.
  • MNCs help in breaking protectionism and also helps in curbing local monopolies, if at all it exists in the country.

Multiple choice elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

Which can be a disadvantage to the home country of MNC investment?

  1. Transfer of capital from home country to host country.

  2. No employment to the people.

  3. Both a&b

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Broader Market Base-By opening establishments or offices in several countries, multinationals increase their chances of reaching out to customers on a global scale, a benefit which other companies limited to regional offices and establishments do not have. The access to more customers gives them more opportunities to develop and cater their products and services that will fit the needs of potential customers.

Tax Cuts-Multinationals can enjoy lower taxes in other countries for exports and imports, an advantage that owners of international corporations can take at any given day. And although not all countries can have lower tariffs, there are those that give tax cuts to investors to attract more international companies to do business in these countries.

Job Creation-When international companies set up branches in other countries, employees and members of the team are locals. That said, more people are given employment opportunities especially in developing countries.

Multiple choice elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

Multinational corporations. sometimes provide benefits to their home countries, except which one? 

  1. Boost the industrial development in home country

  2. Allow for production of cheaper components for theie products

  3. Marketing opportunities for the products produced in home country,

  4. Shift home country technology overseas via licensing
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Despite their benefits and advantages, multinational corporations have disadvantages and have often been criticised for exploiting their host countries for their resources.
  1. Enhanced Investment in Host Country.
  2. Tax Revenue for Home Country.
  3. Preferential Treatment Over Local Industry.
  4. Loss of Jobs at Home.
Multiple choice elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

Which is not likely to be a benefit that host countries will obtain for MNCs?

  1. Technology Transfer

  2. Import substitution

  3. Tax revenues

  4. Job creation
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The potential benefits of MNCs on host countries include:

Provision of significant employment and training to the labour force in the host country. MNCs add to the host country GDP through their spending, for example with local suppliers and through capital investment.

Multiple choice geography manufacturing industries in india - ii : mineral-based distribution of major industries automobile and electronic industries electronic, heavy and petrochemical industries in india

The growth of automobile industry in India is _____.

  1. Just before the independence

  2. Only after the independence

  3. Only after the 2014

  4. Begun in medieval era
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The automobile industry in India is the tenth largest in the world with an annual production of approximately 2 million units. After independence, the Government of India and the private sector launched efforts to create an automotive-component manufacturing industry to supply to the automobile industry. 

Multiple choice geography manufacturing industries in india - ii : mineral-based information technology industry automobile and electronic industries electronic, heavy and petrochemical industries in india

Information technology in India includes which of the below mentioned components?

  1. IT services

  2. Business process outsourcing

  3. Both A and B

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Information technology in India is an industry consisting of two major components: IT services and business process outsourcing. The sector has increased its contribution to India's GDP from 1.2% in 1998 to 7.5% in 2012. India's current prime minister Narendra Modi has started 'Digital India' project to give IT a secured position inside & outside India.

Business process outsourcing BPO is a subset of outsourcing that involves the contracting of the operations and responsibilities of a specific business process to a third-party service provider. 

IT service management (ITSM) refers to the entirety of activities – directed by policies, organized and structured in processes and supporting procedures – that are performed by an organization to plan, design, deliver, operate and control information technology (IT) services offered to customers.