Introduction- Economy
- Who defined the economy as “a system by which people earn their living”?
A. J. Brown - Who introduced the terms Microeconomics and Macroeconomics?
Ragnar Frisch in 1933 - Who is regarded as the father of Macroeconomics?
John Maynard Keynes - What does Macroeconomics study?
Economy-wide aggregates like output, inflation, and employment - What does Microeconomics deal with?
Economic behavior of individuals, households, and firms - What is an Economic System?
A system connecting individuals and institutions to perform economic activities - Who is considered the father of Capitalism?
Adam Smith - What is another name for a capitalistic economy?
Free economy or market economy - Who is the father of Socialism?
Karl Marx - What type of economy does India follow?
Mixed Economy
National Income
- What is National Income?
Total money value of all final goods and services produced in a country in a year - What does National Income indicate?
Economic activity and purchasing power of a country - What is Gross Domestic Product (GDP)?
Total value of all final goods and services produced within a country in a year - What is Net Domestic Product (NDP)?
GDP after deducting depreciation - What is Gross National Product (GNP)?
GDP plus net income earned from abroad - What is Net National Product (NNP)?
GNP after deducting depreciation - What is NNP at Factor Cost?
Net national income received by factors of production, excluding indirect taxes and including subsidies - What is Personal Income?
Total income received by individuals before paying direct taxes - What is Disposable Income?
Personal income left after paying direct taxes - What is Per Capita Income?
Average income per person in a country in a year - What is Real Income?
National income adjusted for inflation - What is Nominal Income?
National income measured at current prices without adjusting inflation - What is GDP Deflator?
A price index measuring the change in prices of goods and services included in GDP - What is Gross Value Added (GVA)?
Value of output minus value of intermediate consumption - What is Purchasing Power Parity (PPP)?
An economic theory used to compare income levels and living costs across countries
Sectors of Economy
- What are the three main sectors of an economy?
Primary, Secondary, and Tertiary sectors - What is the Primary Sector also called?
Agricultural sector - What type of activities fall under the Primary Sector?
Activities involving exploitation of natural resources like farming, fishing, and mining - What is the Secondary Sector also known as?
Industrial sector - What does the Secondary Sector include?
Processing of raw materials into finished goods - What is the Tertiary Sector also called?
Service sector - What kind of activities come under the Tertiary Sector?
Services like banking, education, healthcare, and communication - What type of economy is dominated by the Primary Sector?
Agrarian economy - What type of economy is dominated by the Secondary Sector?
Industrial economy - What type of economy is dominated by the Tertiary Sector?
Service economy - What is the current GDP share of the Agriculture sector in India?
Around 16.5% - Which sector contributes the highest to India’s GDP?
Tertiary (Service) sector - Which sector employs the highest percentage of Indian population?
Agriculture sector (Primary)
Which sector employs the highest percentage of Indian population?
Agriculture sector (Primary) - What is the contribution of Agriculture to global output from India?
7.39% of the world’s agricultural output - What is the contribution of the Industrial sector to India’s GDP?
Around 29.01%
Reserve bank of india
- When was the Reserve Bank of India established?
1st April 1935 - Under which Act was the RBI established?
Reserve Bank of India Act, 1934 - Where was the original headquarters of RBI?
Kolkata (then Calcutta) - In which year did RBI shift its headquarters to Mumbai?
1937 - Who was the first Governor of RBI?
Osborne Smith - When was RBI nationalised?
1st January 1949 - How many zonal offices does the RBI have?
Four – Mumbai, Kolkata, Chennai, New Delhi - Who appoints the Governor and Deputy Governors of RBI?
Government of India - Who is the only Prime Minister to have served as RBI Governor?
Dr. Manmohan Singh - What is RBI popularly known as in financial circles?
Mint Street - What is the chief objective of RBI as a monetary authority?
Control money supply and maintain financial stability - Who is responsible for issuing currency notes in India?
Reserve Bank of India - Who issues ₹1 notes and coins in India?
Ministry of Finance, Government of India - Under which section of Banking Regulation Act do banks need RBI license?
Section 22 - What is RBI’s role as Banker’s Bank?
Provides loans, accepts deposits, and rediscounts bills for banks - What is RBI’s function as banker to the government?
Manages government accounts, debt, and borrowing - What is meant by RBI being the lender of last resort?
Provides funds to banks during financial crisis - What is RBI’s role as a clearing house?
Facilitates settlement of inter-bank transactions - What is RBI’s role in managing foreign exchange?
Custodian of FOREX and implements FEMA, 1999 - Who represents India in IMF and World Bank?
Reserve Bank of India on behalf of the Government - What is the role of RBI in payment and settlement systems?
Regulates and supervises secure payment systems - Under which Act does RBI regulate payment systems?
Payment and Settlement Systems Act, 2007 - What is the Banking Ombudsman Scheme?
RBI grievance redressal mechanism for bank customers - In which year was the Banking Ombudsman Scheme launched?
1995 - What type of data is published by RBI?
Banking, monetary, and financial data - What are the developmental functions of RBI?
Promotes financial institutions and national development - Name two institutions set up by RBI as part of its developmental role.
SIDBI and NABARD - What is monetary policy?
Policy to regulate money supply and interest rates - What are the objectives of monetary policy?
Price stability, full employment, growth, exchange rate stability - What is the full form of MPC?
Monetary Policy Committee - Under which section is the MPC constituted?
Section 45ZB of RBI Act - What is the main function of the MPC?
Fixing policy repo rate to control inflation - What is credit control?
RBI’s method of controlling credit in the economy - Which Acts give RBI power to control credit?
RBI Act, 1934 and Banking Regulation Act, 1949 - What are the quantitative methods of credit control?
Bank Rate, CRR, SLR, Open Market Operations - What are the qualitative methods of credit control?
Moral suasion, credit rationing, margin requirements - What is the bank rate?
Rate at which RBI lends to banks for long-term without security - What are Open Market Operations?
Sale and purchase of government securities by RBI - What is the Cash Reserve Ratio (CRR)?
Minimum cash banks must keep with RBI - What is the Statutory Liquidity Ratio (SLR)?
Minimum reserve banks must maintain in form of cash, gold, or securities - What is the repo rate?
Rate at which RBI lends short-term funds to commercial banks - What is the reverse repo rate?
Rate at which RBI borrows money from commercial banks - Which rate is higher: repo rate or reverse repo rate?
Repo rate - What is the objective of reverse repo rate?
To absorb excess liquidity from the banking system - What is the main goal of RBI’s monetary policy?
Controlling inflation and ensuring economic stability - What is meant by ‘liquidity adjustment facility’?
RBI tool to manage liquidity through repo and reverse repo - What does the term ‘inflation targeting’ refer to?
Maintaining inflation within a fixed range set by the government - What is the current inflation target set by the Government of India for RBI?
4% with ±2% tolerance band - What does RBI do as a regulator of the economy?
Monitors GDP, inflation, credit flow, and monetary indicators - What role does RBI play in financial inclusion?
Promotes access to banking services across rural and urban areas - What is the fiscal year of RBI from 2020–21 onwards?
April to March - What is the call money market?
Market for overnight borrowing between banks - What is notice money in money markets?
Funds borrowed or lent for 2 to 14 days - What is RBI’s role in development banking?
Establishes and supports institutions like NABARD and SIDBI - What is moral suasion in credit control?
RBI’s persuasion method to influence banks’ lending behavior - What is selective credit control?
Credit control targeting specific sectors or uses of credit - What is quantitative credit control?
Control of overall credit volume using general tools like CRR and SLR - What is the role of RBI in foreign exchange?
Manages forex reserves and stabilizes rupee value - Which Act governs foreign exchange in India?
Foreign Exchange Management Act (FEMA), 1999 - How does RBI maintain exchange rate stability?
By buying and selling foreign currency - What is the function of RBI as custodian of foreign exchange?
To regulate and manage India’s external value of rupee - What is the RBI’s role in government securities?
Manages issuance and redemption of government bonds - What is the role of RBI in public debt management?
Handles borrowings and repayments of central and state governments - What is the function of the Monetary Policy Committee?
To fix the repo rate to control inflation - How often does the MPC meet in a year?
At least four times
Banking in India
- What was the first bank in India?
Bank of Hindustan (1770) - When were 14 major banks nationalised in India?
19 July 1969 - How many banks were nationalised in 1980?
Six - What was the main aim of bank nationalisation?
To promote social welfare and financial inclusion - Which sectors were prioritised after nationalisation?
Agriculture, small industries, and rural areas - What are commercial banks?
Banks that deal in deposits and loans for individuals and businesses - What are the two main functions of commercial banks?
Accepting deposits and providing loans - What are demand deposits?
Deposits withdrawable anytime without prior notice - What are time deposits?
Deposits that can be withdrawn only after a fixed period - What are the forms of loans given by commercial banks?
Overdraft, cash credit, discounting bills of exchange - What are agency functions of commercial banks?
Collecting cheques, income, and paying bills for customers - What are general utility functions of commercial banks?
Providing lockers, foreign exchange, and credit reports - What is electronic banking?
Banking through internet, mobile apps, debit and credit cards - What is credit creation by banks?
Lending multiple times the amount of deposits they receive - What is the significance of credit creation?
It increases the money supply in the economy - When were Regional Rural Banks (RRBs) established?
2 October 1975 - On whose recommendation were RRBs set up?
Narasimham Committee - Under which Act were RRBs formed?
Regional Rural Banks Act, 1976 - What is the capital contribution ratio in RRBs?
GOI 50%, State Govt 15%, Sponsor Bank 35% - Which was the first RRB in India?
Prathama Grameen Bank - What is the main objective of RRBs?
To provide credit to rural and agricultural sectors - What is the minimum credit target under PSL for RRBs?
75% of total credit - What are small finance banks?
Niche banks providing deposit and loan services to underserved sectors - What is the main goal of small finance banks?
Financial inclusion for small and marginal sectors - When were guidelines for small and payment banks released?
2014 - What are payments banks?
Banks that provide savings and payment services but not credit - What is the deposit limit in payments banks?
₹1 lakh per customer (initially) - Can payments banks give loans?
No - Who recommended setting up payments banks?
Nachiket Mor Committee - What is a co-operative bank?
A bank owned and operated by members on co-operative principles - What are the two types of co-operative banks?
Urban and Rural co-operative banks - Who regulates urban co-operative banks?
RBI and Registrar of Co-operative Societies (RCS) - What is the structure of rural co-operative credit?
Three-tier: State, District, and Primary level - What is the apex body in rural co-operative banking?
State Co-operative Bank - What are Primary Agricultural Credit Societies (PACS)?
Village-level institutions providing rural credit - What is MUDRA?
Micro Units Development and Refinance Agency - When was MUDRA Yojana launched?
8 April 2015 - What is the aim of MUDRA Yojana?
Provide loans to non-corporate micro and small enterprises - What are the three loan categories under MUDRA?
Shishu, Kishor, and Tarun - What is the loan limit under Shishu category of MUDRA?
Up to ₹50,000 - What is the loan range for Kishor in MUDRA?
₹50,000 to ₹5 lakh - What is the loan range for Tarun in MUDRA?
₹5 lakh to ₹10 lakh - Which institutions give MUDRA loans?
Banks, RRBs, MFIs, NBFCs - Can MUDRA refinance agricultural loans?
Generally no, except for allied activities like dairy - What is NBFC?
Non-Banking Financial Company - Under which Act are NBFCs registered?
Companies Act, 1956 - Can NBFCs accept demand deposits?
No - What are examples of NBFC activities?
Loans, leasing, investments, chit funds, insurance - What are the two categories of NBFCs?
Stock exchange-related and financial institutions - What is the key difference between banks and NBFCs?
NBFCs can’t accept demand deposits or issue cheques - What is a scheduled bank?
A bank listed in the Second Schedule of the RBI Act, 1934 - What is a non-scheduled bank?
A bank not listed in the Second Schedule of the RBI Act - What are the benefits of being a scheduled bank?
Access to RBI facilities like refinance and clearinghouse membership - What is the minimum paid-up capital required for a scheduled bank?
₹5 lakh - What is core banking?
Centralised online real-time exchange of banking services - What is CBS in banking?
Core Banking Solution - What is mobile banking?
Performing banking transactions using a mobile phone - What is internet banking?
Performing banking operations through a bank’s website - What is a bank merger?
Combining two or more banks into one for operational efficiency - Name two major bank mergers in 2020.
Punjab National Bank–OBC–United Bank and SBI–Associate Banks - What is BASEL Norms?
Global banking regulations on capital risk and liquidity management - What is the full form of NPA?
Non-Performing Asset - What is an NPA in banking?
A loan that hasn’t been repaid for more than 90 days - What is the full form of SARFAESI Act?
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act - What is the purpose of SARFAESI Act?
Empowers banks to recover bad loans without court intervention - What is a bank account KYC?
Know Your Customer – process to verify identity of bank customers - What are the documents used for KYC?
Aadhaar, PAN, Passport, Voter ID, etc. - What is the difference between savings and current account?
Savings accounts earn interest; current accounts are used for frequent business transactions - What is a recurring deposit?
A fixed monthly deposit scheme with interest payout at maturity - What is a fixed deposit?
Lump sum deposit for a fixed tenure earning fixed interest - What is a demand draft (DD)?
A prepaid negotiable instrument issued by a bank to transfer money - What is a cheque?
A written order directing a bank to pay a specific amount from an account - What is a bearer cheque?
A cheque payable to the person who presents it to the bank - What is a crossed cheque?
A cheque with two parallel lines, payable only to a bank account - What is an overdraft facility?
A facility allowing withdrawal of more money than available balance - What is cash credit?
Short-term loan facility to businesses against collateral - What is RTGS?
Real-Time Gross Settlement – used for large-value, instant fund transfers - What is NEFT?
National Electronic Funds Transfer – batch-wise electronic fund transfer - What is the minimum amount for RTGS?
₹2 lakh - What is the full form of IMPS?
Immediate Payment Service - What is the key feature of IMPS?
24×7 instant money transfer through mobile or internet - What is UPI?
Unified Payments Interface – real-time payment system for small transfers - Who developed UPI?
National Payments Corporation of India (NPCI) - What is NPCI?
An umbrella organisation for operating retail payment systems in India - What is Bharat Bill Payment System (BBPS)?
A system for integrated and interoperable bill payments - What is BHIM app?
A UPI-based mobile payment app launched by NPCI - What is digital banking?
Using digital platforms and devices for banking transactions - What is bank nationalisation?
Taking over private banks by the government for public benefit - How many public sector banks are there in India (after 2020 mergers)?
12 - What is a financial intermediary?
An institution that connects lenders and borrowers - What is a bank locker facility?
A secure space provided by banks to store valuables - What is a loan moratorium?
Temporary suspension of loan repayment obligations - What is a credit score?
A numerical representation of a borrower’s creditworthiness - What is the role of CIBIL in banking?
Maintains credit records and provides credit scores - What is a bank’s balance sheet?
A statement showing bank’s assets and liabilities at a given time - What is CRAR?
Capital to Risk-Weighted Assets Ratio – measures a bank’s capital adequacy - What is priority sector lending (PSL)?
Mandatory lending by banks to certain priority sectors like agriculture, MSMEs - What is the PSL target for domestic commercial banks?
40% of their adjusted net bank credit - What is a wilful defaulter?
A borrower who intentionally does not repay loans despite ability - What is an asset reconstruction company (ARC)?
A company that buys and recovers bad loans from banks
Money
- What is money?
Anything generally accepted as a medium of exchange and repayment of debts - What is a barter system?
A system where goods are exchanged for goods without using money - Who introduced the barter system?
Mesopotamia tribes - What is metallic money?
Money made of metals like gold or silver with intrinsic value - What is the gold standard?
A system where currency value is directly linked to a fixed quantity of gold - What is the silver standard?
A monetary system where the currency is based on a fixed weight of silver - What is the paper currency standard?
A system where paper currency is unlimited legal tender issued by central authority - What is plastic money?
Financial instruments like debit cards, credit cards, and prepaid cards - What is cryptocurrency?
Digital currency using encryption for secure transactions, e.g., Bitcoin - What is fiat money?
Currency declared legal tender by the government without intrinsic value - What is the money supply?
Total amount of money circulating in an economy at a given time - Who issues currency notes in India?
Reserve Bank of India (RBI) - Who issues coins in India?
Ministry of Finance, Government of India - What is the Currency Deposit Ratio (CDR)?
Ratio of currency held by public to their deposits in banks - What is the Reserve Deposit Ratio (RDR)?
Proportion of deposits banks keep as reserves with RBI - What is Cash Reserve Ratio (CRR)?
Minimum percentage of total deposits a bank must hold in cash with RBI - What is Statutory Liquidity Ratio (SLR)?
Minimum reserve banks must maintain in form of cash, gold, or securities - What is barren money?
Money kept idle without earning any interest or return - What is the main function of money?
Medium of exchange, store of value, unit of account, standard of deferred payment - What is the store of value function of money?
Ability of money to retain value over time for future use - What is unit of account?
Money provides a standard for measuring and comparing values - What is liquidity?
Ease with which an asset can be converted into cash - What is high-powered money?
Currency with RBI and government that forms the monetary base - What is narrow money (M1)?
Currency with public + demand deposits with banks + other deposits with RBI - What is broad money (M3)?
M1 + time deposits with banks - What is credit creation?
Process by which banks expand deposits through lending - What is demand deposit?
Deposit in a bank account that can be withdrawn at any time - What is time deposit?
Deposit in a bank account that is withdrawable only after a specific time - What is token money?
Money whose intrinsic value is less than its face value - What is convertible currency?
Currency that can be freely exchanged for foreign currencies - What is legal tender?
Money legally recognized for settling debts - What is fiduciary money?
Money accepted on the trust that it will be accepted by others - What is representative money?
Money backed by a physical commodity like gold or silver - What is hot money?
Short-term capital that moves quickly across borders for profit - What is cheap money?
Money available at low interest rates - What is dear money?
Money available at high interest rates - What is soft currency?
Currency that is not freely convertible and has low global demand - What is hard currency?
Stable and widely accepted currency with high purchasing power like USD, Euro - What is heated currency?
Domestic currency under pressure of rapid devaluation - What is managed floating exchange rate? **Exchange rate managed by central bank despite being market
- What is full-bodied money?
Money whose intrinsic value is equal to its face value - What is quasi money?
Non-cash assets easily convertible into money like savings and time deposits - What is e-money?
Digital form of money used for electronic transactions - What is mobile money?
Money stored and transferred through mobile phone services - What is dematerialised money?
Money existing only in electronic form without physical presence - What is the difference between token money and full-bodied money?
Token money has less intrinsic value than face value; full-bodied money has equal - What is the primary motive of holding money according to Keynes?
Transaction motive - What is precautionary motive of holding money?
Keeping money for unexpected future needs - What is speculative motive of holding money?
Holding cash to take advantage of future investment opportunities - What does velocity of money mean?
Number of times money changes hands in a given period
Inflation and Business Cycle
- What is inflation?
A continuous and general rise in the price level over time - What happens to the purchasing power of money during inflation?
It decreases - What are the two main indices used to measure inflation in India?
WPI and CPI - What does WPI stand for?
Wholesale Price Index - What does CPI stand for?
Consumer Price Index - What is the base year for WPI in India?
2011–12 - When was the first WPI in India introduced?
January 10, 1942 - What does CPI-IW stand for?
Consumer Price Index for Industrial Workers - What does CPI-AL stand for?
Consumer Price Index for Agricultural Labourers - What is Demand-Pull Inflation?
Inflation caused by excess demand over supply - What is Cost-Push Inflation?
Inflation caused by rising input and production costs - What is Credit Inflation?
Inflation caused by excessive bank credit - What is Currency Inflation?
Inflation caused by excessive money printing - What is creeping inflation?
Slow and mild rise in prices (single-digit) - What is walking inflation?
Moderate inflation rate between 3%–9% - What is running inflation?
Rapid price rise at 10%–20% per annum - What is galloping inflation?
Very high inflation, double or triple digits annually - What is hyperinflation?
Extremely high and accelerating inflation (millions %) - Which country experienced hyperinflation in the 1920s?
Germany (Weimar Republic) - What is stagflation?
Inflation with stagnant growth and high unemployment - What is disinflation?
Controlled slowing down of inflation - What is deflation?
General fall in price level and reduced money supply - Who are worst hit during inflation?
Fixed income groups - Who gains during inflation, debtors or creditors?
Debtors - What happens to exports during moderate inflation?
They become competitive - How does inflation impact imports?
Imports become costlier - Which inflation type occurs when wage demands raise costs?
Cost-push inflation - Which inflation type arises from excess demand?
Demand-pull inflation - What is the inflation target set by RBI?
4% ± 2% - Who controls inflation in India?
RBI and Government (through monetary and fiscal policy) - How does inflation affect savers?
Reduces real value of savings - What is black inflation?
Inflation caused by black money and hoarding - What is the impact of inflation on interest rates?
Interest rates tend to rise - What is the impact of inflation on investment?
Moderate inflation encourages investment - How does inflation affect exchange rate?
Currency depreciates if inflation is high - How does inflation affect foreign trade?
Reduces export competitiveness in long-term - What is the role of RBI in inflation control?
Uses repo, CRR, SLR to control liquidity - What is the role of fiscal policy in inflation control?
Reduces spending, raises taxes, increases borrowing - What are monetary tools to control inflation?
Repo rate, CRR, SLR, Open Market Operations - What are fiscal tools to control inflation?
Taxation, government spending, borrowing - What is surplus budget?
When revenue exceeds expenditure – helps curb inflation - What is a wage-price control?
Limiting wage hikes and price increases to control inflation - What is the effect of inflation on production?
Moderate inflation boosts production and profits - What is the impact of inflation on investors in bonds?
They lose due to fixed returns - Who benefits more during inflation – equity or bond investors?
Equity investors
- What is a business cycle?
Cyclic ups and downs in economic activity like GDP, income - What are the four phases of a business cycle?
Boom, Recession, Depression, Recovery - What is a boom?
Rapid economic growth with full or over-full employment - What happens to wages and profits during boom?
They rise - What happens to demand for credit during boom?
It increases - What is recession?
Turning point from boom where growth slows down - What causes recession?
Falling demand, investment crash, company/bank failures - What happens to production and income during recession?
Both decline - What is depression?
Worst phase with high unemployment and falling output - What is a trough?
Lowest point of a depression in business cycle - What happens to interest and wages during depression?
They fall - What is recovery?
Phase of improvement in demand and production after depression - What initiates recovery?
Government investment or innovation - What happens to income and employment during recovery?
They begin to rise - What happens to optimism in recovery?
It increases gradually - What is full employment?
When all willing and able people are employed - What is the difference between recession and depression?
Depression is deeper and longer - Who advocated government spending to escape depression?
John Maynard Keynes - What causes business cycles in capitalism?
Inherent fluctuations in demand, investment - What is the length of a typical business cycle?
Varies between 4 to 10 years
- What is cyclical unemployment?
Unemployment due to business cycle downturns - What happens to savings during depression?
They increase due to low confidence - How does inflation behave during boom?
Tends to increase - What is inventory accumulation?
Stockpiling goods during low demand (recession) - What is inventory depletion?
Quick sales during high demand (boom) - What is overproduction?
Supply exceeds demand, often in boom’s end or recession - What is consumer confidence?
People’s expectations of economic stability and future income - What is the multiplier effect?
Initial spending leads to more total spending and growth - What is the accelerator principle?
Investment increases when demand increases - What is inflation spiral?
Wages and prices push each other upwards repeatedly - What is monetary tightening?
Measures to reduce liquidity and control inflatio - What is liquidity trap?
When low interest rates fail to increase demand or investment - What is reflation?
Policy to stimulate economy after deflation or recession - What is devaluation?
Official lowering of currency value - What is appreciation of currency?
Increase in currency value in forex markets - What is Philips Curve?
Shows inverse relationship between inflation and unemployment - What is core inflation?
Inflation excluding food and fuel prices - What is headline inflation?
Total inflation including all items like food and fuel - What is imported inflation?
Rising prices due to increase in import prices - What is structural inflation?
Inflation caused by rigid supply constraints - Which organization releases CPI in India?
National Statistical Office (NSO) - Who publishes WPI in India?
Office of Economic Adviser, Ministry of Commerce & Industry - What is the weight of food in CPI?
Approximately 45% in CPI-Combined - What does RBI mainly target to control inflation?
Consumer Price Index (CPI) - What does base year mean in inflation index?
Year against which current prices are compared - What does inflation rate show?
Percentage change in price level over time - What is inflation expectation?
People’s forecast of future inflation - What is inflation targeting?
Setting a range of inflation to maintain price stability - What is the primary goal of monetary policy?
Maintain price stability while supporting growth - What is an inflation-indexed bond?
Bond whose returns rise with inflation rate - What is the GDP deflator?
Measure of inflation across all goods/services in GDP - What is base effect in inflation data?
Low/high base year makes inflation appear higher/lower - What is the effect of inflation on tax revenue?
Tends to increase due to bracket creep - What is real income?
Income adjusted for inflation - What is nominal income?
Income not adjusted for inflation
Economic Planning In India
- Who is considered the father of economic planning in India?
Sir M. Visvesvaraya - Which book by M. Visvesvaraya introduced the idea of planning?
Planned Economy of India - When was Visvesvaraya’s plan published?
1934 - When did Nehru set up the National Planning Commission?
1938 - What was the Bombay Plan?
A 15-year industrial plan proposed by 8 industrialists in 1944 - Who proposed the Gandhian Plan in 1944?
S.N. Agarwal - What was the focus of the Gandhian Plan?
Village economy and self-reliance - Who gave the People’s Plan in 1945?
M.N. Roy - What was the Sarvodaya Plan?
A plan by J.P. Narayan inspired by Gandhian ideas in 1950 - What was the focus of the Sarvodaya Plan?
Agriculture, small and cottage industries
- When was the Planning Commission established?
15 March 1950 - Who was the first chairman of the Planning Commission?
Jawaharlal Nehru - When did the era of Five-Year Plans begin?
1 April 1951 - Which body replaced the Planning Commission?
NITI Aayog - When was NITI Aayog established?
1 January 2015 - What model inspired India’s five-year plans?
Soviet/Russian model - How many five-year plans were launched in India?
12 - Which was the last five-year plan?
Twelfth (2012–17) - What model was the First Five-Year Plan based on?
Harrod-Domar Model - What was the focus of the First Plan (1951–56)?
Agriculture and irrigation - Which major dam projects began in the First Plan?
Bhakra-Nangal and Hirakud Dam - What was the GDP growth achieved in the First Plan?
3.6% - What was the focus of the Second Plan (1956–61)?
Industrialization - Which model was used in the Second Plan?
P.C. Mahalanobis Model - Name three steel plants established during the Second Plan.
Bhilai, Rourkela, Durgapur - What was the achieved growth in Second Plan?
4.1% - What is the nickname of the Third Plan (1961–66)?
Gadgil Yojna - What was the focus of the Third Plan?
Self-reliance and agricultural growth - Which war disrupted the Third Plan?
Indo-China War of 1962 - Why was there a plan holiday between 1966–69?
Due to war and failure of the Third Plan - What was the Fourth Plan’s goal (1969–74)?
Stability and self-reliance - What major event happened during the Fourth Plan?
Nationalisation of 14 major banks - What was the Fifth Plan’s (1974–79) focus?
Poverty alleviation and self-reliance - Which programme was launched in Fifth Plan?
Twenty Point Programme - What slogan was used in the Sixth Plan (1980–85)?
Garibi Hatao - What was the Sixth Plan’s focus?
Rural poverty and infrastructure - What was the growth achieved in the Sixth Plan?
5.7% - What was the focus of the Seventh Plan (1985–90)?
Food grain production and employment - Which employment scheme was launched in 1989?
Jawahar Rozgar Yojana (JRY) - Why were annual plans adopted during 1990–92?
Due to political instability - What was the focus of the Eighth Plan (1992–97)?
Human resource development - What key policy was introduced in Eighth Plan?
New Economic Policy, 1991 - What was the growth achieved in the Eighth Plan?
6.8% - What was the focus of the Ninth Plan (1997–2002)?
Growth with justice and equity - How many minimum services were highlighted in the Ninth Plan?
Seven - What was the growth achieved in the Ninth Plan?
5.6% - What was the goal of the Tenth Plan (2002–07)?
Double per capita income in 10 years - What was the target growth of Tenth Plan?
8% - What was the achieved growth in the Tenth Plan?
7.2% - Who prepared the Eleventh Plan?
C. Rangarajan - What was the theme of the Eleventh Plan (2007–12)?
Faster and More Inclusive Growth - What was the achieved growth in Eleventh Plan?
7.9% - What was the theme of the Twelfth Plan (2012–17)?
Faster, More Inclusive and Sustainable Growth - What was a major aim of the Twelfth Plan?
Provide electricity to all villages - What was another aim of the Twelfth Plan?
All-weather road connectivity to all villages - What was the growth target of the Twelfth Plan?
8%
- What does NITI Aayog stand for?
National Institution for Transforming India - Who is the chairperson of NITI Aayog?
Prime Minister of India - Who was the first Vice-Chairman of NITI Aayog?
Arvind Panagariya - How many full-time members can NITI Aayog have?
Not fixed (appointed by PM) - How many ex-officio Union Ministers can be members?
Up to four - Who heads the Governing Council of NITI Aayog?
Chief Ministers and Lt. Governors - What is the CEO’s status in NITI Aayog?
Secretary to the Government of India - What is one major role of NITI Aayog?
Promote cooperative federalism - What is decentralized planning?
Bottom-up planning involving states and districts - What is “vision and scenario planning”?
Strategic long-term planning - Does NITI Aayog allocate funds?
No - What type of body is NITI Aayog?
Policy think tank - What did NITI Aayog replace?
Planning Commission - What is another key function of NITI Aayog?
Internal consultancy to governments - What is NITI’s monitoring function?
Evaluate impact of policy and programme implementation - Which year saw the end of the Five-Year Plan system in India?
2017 - What replaced the Five-Year Plans?
3-Year Action Plans by NITI Aayog - Which plan aimed to reduce poverty to 15% by 2012?
Tenth Plan - What is the base model of the First Plan?
Harrod–Domar Model - Which plan marked the beginning of liberalisation?
Eighth Plan (1992–97) - Which plan targeted agricultural production increase by 30%?
Third Plan - Which plan launched the “Minimum Needs Programme”?
Fifth Plan - What replaced five-year planning for long-term vision?
NITI Aayog’s Strategy and Vision Documents - What is the role of plans in modern India?
To set goals for inclusive, balanced, and sustainable development
Tax Structure In India
- What is a tax?
A compulsory payment by individuals or entities to the government without direct return - What are the two main types of taxes?
Direct tax and Indirect tax - What is a direct tax?
A tax paid directly to the government by the person on whom it is imposed - What is an indirect tax?
A tax collected by an intermediary from the person who bears the burden - Give an example of a direct tax.
Income Tax - Give an example of an indirect tax.
Goods and Services Tax (GST) - What is progressive tax?
Tax rate increases as income increases - What is regressive tax?
Tax rate decreases as income increases - What is proportional tax?
Same tax rate for all income levels - Which Article of the Constitution empowers the government to levy taxes?
Article 265
- What is the main direct tax in India?
Income Tax - Under which Act is Income Tax levied in India?
Income Tax Act, 1961 - Who levies income tax in India?
Central Government - What is the assessment year in Income Tax?
Year following the financial year - What is the financial year in India?
1st April to 31st March - Who collects corporate tax in India?
Central Government - What is Minimum Alternate Tax (MAT)?
Minimum tax companies must pay even if they have zero taxable income - What is the full form of TDS?
Tax Deducted at Source - What is Advance Tax?
Tax paid during the financial year instead of at the end - Which body administers direct taxes in India?
Central Board of Direct Taxes (CBDT)
- What is the main indirect tax in India?
Goods and Services Tax (GST) - When was GST implemented in India?
1 July 2017 - Which Amendment introduced GST in India?
101st Constitutional Amendment Act, 2016 - Which Article deals with GST?
Article 279A - What are the four GST slabs in India?
5%, 12%, 18%, 28% - What is CGST?
Central Goods and Services Tax - What is SGST?
State Goods and Services Tax - What is IGST?
Integrated Goods and Services Tax (for inter-state supply) - Who collects IGST?
Central Government - What is UTGST?
Union Territory Goods and Services Tax
- What is customs duty?
Tax on import and export of goods - What is excise duty?
Tax on production of goods in India (now merged into GST) - What is stamp duty?
Tax on legal documents like property transactions - What is professional tax?
Tax levied by state governments on professions and trades - Which state collects the highest GST revenue in India?
Maharashtra - What is the direct tax to GDP ratio in India?
Around 6% - What is the indirect tax to GDP ratio in India?
Around 10% - Which committee recommended GST in India?
Kelkar Committee - Which tax is also called consumption-based tax?
Goods and Services Tax (GST) - What is a cess?
A tax levied for a specific purpose like education or health - What is surcharge?
An additional tax on the existing tax liability - Which tax is imposed on wealth?
Wealth Tax (abolished in 2015) - What is capital gains tax?
Tax on profit from sale of assets like property or shares - What is dividend distribution tax?
Tax on dividends paid by companies to shareholders - What is the authority for GST administration?
Goods and Services Tax Council - Who is the chairman of GST Council?
Union Finance Minister - What is the minimum turnover for GST registration?
₹40 lakh for goods, ₹20 lakh for services - What is anti-profiteering under GST?
Ensuring benefit of tax rate reduction is passed to consumers - What is the difference between tax evasion and tax avoidance?
Evasion is illegal, avoidance is legal but unethical - What is the penalty for not filing GST returns?
₹100 per day under CGST and SGST each
Public Finance In India
- What is public finance?
Study of government revenue, expenditure, and debt - What are the three main functions of public finance?
Allocation, distribution, and stabilization - Who introduced the concept of public goods?
Paul Samuelson - What is a public good?
A good that is non-excludable and non-rivalrous, like street lighting - What is a private good?
A good that is both excludable and rivalrous - What is externality?
Impact of one person’s activity on another without compensation - What is positive externality?
Benefits to others from an activity, like vaccination - What is negative externality?
Costs imposed on others, like pollution - What is fiscal policy?
Government policy on taxation and spending to influence economy - Who prepares the Union Budget in India?
Ministry of Finance
- What are the main sources of government revenue?
Taxes and non-tax revenue - What is non-tax revenue?
Revenue from sources other than taxes, like fees and dividends - Name one example of non-tax revenue.
Interest receipts on loans given by government - What is the difference between tax and fee?
Tax is compulsory; fee is for a specific service - What is grant-in-aid?
Funds given by one government to another for specific purposes - Which body shares tax revenue between Centre and States?
Finance Commission - Under which Article is Finance Commission constituted?
Article 280 - How often is the Finance Commission constituted?
Every five years - Who is the current chairman of the 15th Finance Commission?
N.K. Singh - What is the main function of the Finance Commission?
Recommend distribution of tax revenues between Centre and States
- What is public expenditure?
Government spending on goods, services, and development - What are the two types of public expenditure?
Revenue expenditure and capital expenditure - What is revenue expenditure?
Spending that does not create assets, like salaries - What is capital expenditure?
Spending that creates assets, like infrastructure - What is the largest component of revenue expenditure?
Interest payments - What is the primary deficit?
Fiscal deficit minus interest payments - What is the revenue deficit?
Excess of revenue expenditure over revenue receipts - What is the fiscal deficit?
Total expenditure minus total receipts excluding borrowings - What is the budgetary deficit?
Difference between total expenditure and total receipts - What is a monetized deficit?
Financing deficit by printing new currency
- What is a budget?
Annual statement of estimated receipts and expenditure of government - Who presents the Union Budget in Parliament?
Finance Minister - When is the Union Budget usually presented?
1st February every year - Under which Article is the Budget presented?
Article 112 - What is an interim budget?
Budget presented for part of the year before elections - What is a vote on account?
Approval for government expenditure for a short period - What is zero-based budgeting?
Preparing budget from scratch for each period - What is gender budgeting?
Budget allocation for promoting gender equality - What is outcome budgeting?
Linking expenditure to measurable outcomes - What is performance budgeting?
Budget showing objectives and results achieved
- What is an effective revenue deficit?
deficit minus grants for capital creation - What is the primary deficit?
Fiscal deficit excluding interest payments - What is fiscal responsibility?
Maintaining fiscal discipline and reducing debt - Which Act mandates fiscal discipline in India?
FRBM Act, 2003 - What is the main target under FRBM Act?
Reduce fiscal deficit and debt-to-GDP ratio - What is public debt?
Borrowings of government from internal and external sources - What is internal debt?
Government borrowing within the country - What is external debt?
Government borrowing from foreign sources - What is the debt-to-GDP ratio target in India?
60% as per FRBM recommendations - Which body manages public debt in India?
Reserve Bank of India
- What is a conditional grant?
Grant given with specific usage conditions - What is an unconditional grant?
Grant given without restrictions on usage - What are Centrally Sponsored Schemes?
Schemes funded jointly by Centre and States - What are Central Sector Schemes?
Schemes fully funded and implemented by Centre - What is a statutory grant?
Grant provided under constitutional or legal provision - What is a discretionary grant?
Grant given at government’s discretion - Under which Article are grants-in-aid to states provided?
Article 275 - What is devolution of funds?
Transfer of financial resources from Centre to States - What is the role of the Finance Commission in grants?
Recommends grants-in-aid to states - What is a loan waiver?
Government cancelling farmer or sectoral loans
- What percentage of the divisible tax pool goes to States as per 15th Finance Commission?
41% - What is GST compensation cess used for?
To compensate states for GST revenue loss - Which Act provides for GST compensation to states?
GST (Compensation to States) Act, 2017 - What is the compensation period under GST law?
Five years from implementation of GST - What is the source of GST compensation?
Cess on luxury and sin goods - What is vertical devolution?
Tax revenue sharing between Centre and States - What is horizontal devolution?
Distribution of funds among different states - What criteria does the Finance Commission use for devolution?
Population, income, area, forest cover - Which state gets the highest share in tax devolution?
Uttar Pradesh - Which Finance Commission recommended GST compensation cess?
14th Finance Commission
- What is fiscal drag?
When inflation pushes taxpayers into higher tax brackets - What is the crowding out effect?
Government borrowing reduces funds for private investment - What is pump priming?
Government spending to stimulate economic activity - What is deficit financing?
Spending financed by borrowing or printing money - What is the inflationary gap?
Excess demand over supply causing inflation - What is the deflationary gap?
Insufficient demand causing unemployment - What is an automatic stabilizer?
Policies like progressive tax reducing economic fluctuations - What is counter-cyclical fiscal policy?
Government increases spending during recession and reduces during boom - What is expansionary fiscal policy?
Government increases spending or cuts taxes to boost economy - What is contractionary fiscal policy?
Government reduces spending or increases taxes to control inflation
- Which country introduced the first modern budget?
England (1733) - Who introduced the first budget in India?
James Wilson in 1860 - When was the first Union Budget of independent India presented?
26 November 1947 - Who presented the first Union Budget of independent India?
R.K. Shanmukham Chetty - Which Finance Minister has presented the maximum number of budgets?
Morarji Desai - Who presented the first paperless budget in India?
Nirmala Sitharaman (2021) - What is a balanced budget?
When government expenditure equals revenue - What is a surplus budget?
When revenue exceeds expenditure - What is a deficit budget?
When expenditure exceeds revenue - What is gender responsive budgeting?
Integrating gender perspective in budgeting - Which year saw India’s first gender budget statement?
2005–06 - What is green budgeting?
Integrating environmental concerns in budgetary process - Which ministry prepares the Economic Survey?
Ministry of Finance - Who presents the Economic Survey?
Finance Minister - When is the Economic Survey presented?
One day before Union Budget - Who prepares GDP estimates?
CSO (now NSO) under Ministry of Statistics - What is fiscal federalism?
Distribution of financial powers between Centre and States - Which Act deals with the Consolidated Fund of India?
Article 266 of the Constitution - What is the Contingency Fund of India?
A fund for emergencies under Article 267 - What is the Public Account of India?
All other public money under Article 266(2)
External Sector in India
- What is the external sector?
Part of an economy involving transactions with the rest of the world - What is Balance of Payments (BoP)?
A record of all economic transactions between a country and the world - What are the two main components of BoP?
Current Account and Capital Account - What is the Current Account?
Records export and import of goods, services, income, and transfers - What is the Capital Account?
Records investments, loans, and banking capital - What is the Financial Account?
Part of BoP that records FDI, FPI, and loans - What is trade balance?
Difference between export and import of goods - What is the current account deficit (CAD)?
Excess of imports of goods, services, and transfers over exports - What is capital account surplus?
When inflow of capital is more than outflow - What is the overall BoP position?
Sum of current and capital account balance plus errors and omissions
- What is foreign trade?
Exchange of goods and services between countries - What are the two types of foreign trade?
Export and Import - What is India’s largest export item?
Petroleum products - What is India’s largest import item?
Crude oil - Who is India’s largest trading partner?
United States of America - Which sector dominates India’s exports?
Services sector (IT and software) - What is the share of services in India’s exports?
About 40% - What is the share of agriculture in India’s exports?
About 10% - Which country is the largest source of India’s imports?
China - Which country is the largest destination for India’s exports?
USA
- What is exchange rate?
Price of one currency in terms of another - What is fixed exchange rate system?
Exchange rate decided by government or central bank - What is flexible exchange rate system?
Exchange rate determined by market forces - What is managed float system?
Exchange rate largely market-determined but managed by central bank - What is devaluation?
Official reduction in the value of a country’s currency - What is revaluation?
Official increase in the value of a currency - What is depreciation of currency?
Fall in value of currency under floating exchange system - What is appreciation of currency?
Rise in value of currency under floating exchange system - What is the main currency reserve in the world?
US Dollar - What is India’s exchange rate regime?
Managed floating exchange rate
- What are foreign exchange reserves?
Foreign currency assets, gold, SDRs, and reserve position with IMF - Who manages foreign exchange reserves in India?
Reserve Bank of India - What are the four components of forex reserves?
Foreign currency assets, gold, SDRs, IMF reserve position - Which country has the largest forex reserves in the world?
China - What is the rank of India in terms of forex reserves globally?
Top 5 - What was India’s forex reserve level in 2024?
Over USD 600 billion - What is SDR?
Special Drawing Rights issued by IMF - Which organization allocates SDRs?
International Monetary Fund (IMF) - What is India’s reserve currency composition?
Mainly US Dollar and Euro - What is the importance of forex reserves?
To stabilize currency and meet external obligations
- What does IMF stand for?
International Monetary Fund - When was IMF established?
1944 (Bretton Woods Conference) - Where is IMF headquartered?
Washington, D.C., USA - What is the main role of IMF?
Ensure global monetary stability and provide financial assistance - What does World Bank do?
Provides long-term loans for development projects - What does WTO stand for?
World Trade Organization - When was WTO established?
1995 - Where is WTO headquarters located?
Geneva, Switzerland - What did the WTO replace?
General Agreement on Tariffs and Trade (GATT) - What is the main function of WTO?
Regulate international trade and resolve trade disputes
- What is FDI?
Foreign Direct Investment – long-term investment in productive assets - What is FPI?
Foreign Portfolio Investment – investment in financial assets like stocks - Which is more stable: FDI or FPI?
FDI - What is the main advantage of FDI?
Brings capital, technology, and employment - Which sector in India receives the highest FDI inflow?
Services sector - What is an automatic route in FDI?
FDI without prior government approval - What is the government route in FDI?
FDI requiring prior approval of the government - What is the FDI limit in the insurance sector?
74% - What is the FDI limit in the defense sector?
74% under automatic route - Which country is the largest source of FDI in India?
Singapore
- What is SAARC?
South Asian Association for Regional Cooperation - How many members does SAARC have?
Eight - What is ASEAN?
Association of Southeast Asian Nations - How many countries are in ASEAN?
10 - What is BRICS?
Brazil, Russia, India, China, South Africa - What is RCEP?
Regional Comprehensive Economic Partnership - Is India a member of RCEP?
No, India opted out in 2019 - What is G20?
Group of 20 major economies - Which country hosted G20 in 2023?
India - What is BIMSTEC?
Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation
- When did India face a major BoP crisis?
1991 - What caused the 1991 BoP crisis?
High imports, low forex reserves, Gulf War oil shock - Who was the Finance Minister during 1991 reforms?
Dr. Manmohan Singh - What major policy was introduced after BoP crisis?
Liberalisation, Privatisation, Globalisation (LPG) reforms - How much gold did India pledge during 1991 crisis?
67 tonnes - What is the term ‘convertibility of rupee’?
Ability to freely exchange rupee for foreign currency - What is current account convertibility?
Free exchange of currency for trade and services - When was current account convertibility introduced in India?
1994 - What is capital account convertibility?
Free exchange of currency for investment and capital transactions - Has India fully adopted capital account convertibility?
No, only partially
- What is the full form of FEMA?
Foreign Exchange Management Act - When did FEMA come into effect?
2000 - Which Act did FEMA replace?
FERA (Foreign Exchange Regulation Act) - What is the role of DGFT?
Directorate General of Foreign Trade – regulates imports and exports - What is EPCG scheme?
Export Promotion Capital Goods scheme - What is SEZ?
Special Economic Zone for promoting exports - When was the SEZ Act passed?
2005 - What are NRI deposits called?
FCNR and NRE accounts - What is the full form of FCNR?
Foreign Currency Non-Resident Account - What is the full form of NRE?
Non-Resident External Account - Which is India’s largest port by cargo?
Kandla Port - Which is India’s largest container port?
Jawaharlal Nehru Port (Nhava Sheva) - What is India’s largest airport by international traffic?
Indira Gandhi International Airport, Delhi - Which city hosts India’s largest stock exchange?
Mumbai (BSE and NSE) - What is the full form of BOP?
Balance of Payments - What is India’s main export service?
Software and IT services - What is India’s main agricultural export?
Rice - Which scheme promotes exports through credit insurance?
Export Credit Guarantee Scheme (ECGC) - What is the role of EXIM Bank?
Promotes India’s exports and imports through finance - What is India’s rank in global trade by merchandise exports?
Around top 20 - What deal is India negotiating with the US to avoid up to 26% tariffs?
A preliminary trade deal. - Which items may be included in the India–US scaled-back trade deal?
Autos, aluminium, steel, and some agri products. - How much tariff could the US impose that may impact India’s exports?
10%. - Which sectors in India have strong export potential, according to SBI Research?
Chemicals, apparel, pharma, and AYUSH. - What advantage does India have from the US tariff reset, as per NITI Aayog?
Edge in over 100 product lines. - Which sectors show resilience in India’s export performance?
Services and technology. - Why did an Indian delegation visit Washington recently?
To negotiate the first phase of a trade deal with the US. - What is the main focus of the India–US trade deal talks?
Mutual tariff reduction and market access. - How may India gain from high US tariffs?
By becoming more competitive than China and others. - Which sectors are key in India–US trade negotiations?
Aluminium and steel. - Why is Samsung planning to export more from India to the US?
To avoid tariff uncertainty in global trade. - Which two tech giants are boosting exports from India?
Apple and Samsung. - What was the rupee’s position during recent trade talks?
Around ₹85.64 per US dollar. - Why was the rupee volatile in July 2025?
Due to cautious investor sentiment over trade negotiations. - What is India’s export target for FY2025-26?
USD 900 billion. - Who stated that India’s external trade remains resilient?
Commerce Minister Piyush Goyal. - Which countries recently advanced towards an interim trade deal?
India and the United States. - What were the key issues in the India–US trade negotiations?
Tariff cuts and non-tariff barriers. - Which US demand did India resist during trade talks?
Market access for wheat, dairy, and corn. - What tariff concessions did India offer to the US?
Lower duties on nuts and steel exemptions. - What is India’s trade goal with the US by 2030?
USD 500 billion. - What is the bilateral trade target under India–UK FTA by 2030?
USD 120 billion. - Which items are critical in India–UK FTA talks?
Cars, whisky, and meat. - What is the TRUST Initiative?
An India-US partnership for supply chain cooperation. - Which materials are targeted under the TRUST Initiative?
Lithium, rare earths, and advanced materials. - Which two countries resumed direct flights and improved border protocols?
India and China. - What recent naval collaboration did India participate in?
Joint drills with China and African nations. - What were India’s forex reserves in April 2025?
USD 676.3 billion. - What did RBI say about India’s forex reserves?
They provide a strong buffer against external shocks. - How much did India’s forex reserves rise by May 2025?
To USD 691.5 billion. - What was India’s trade deficit in April 2025?
USD 8.65 billion. - What were India’s exports in April 2025?
USD 73.8 billion. - How did India offset its merchandise trade deficit in April 2025?
Through net services and remittances surplus. - How much did gross FDI inflow rise in FY 2024-25?
14% to USD 81 billion. - What happened to net FDI in FY 2024-25?
It fell to USD 0.4 billion due to repatriation. - How much did outward FDI rise in FY 2024-25?
75% to USD 29.2 billion. - Which country was the largest source of FDI in India in 2024-25?
Singapore. - What is the new FDI cap for satellite components in India?
100% under automatic route. - What fund did the Indian government approve for space start-ups?
₹119 million VC fund. - What was India’s total export achievement in FY 2024-25?
USD 824.9 billion. - How much were India’s merchandise exports in FY 2024-25?
USD 437.4 billion. - What helped India’s export growth in 2024-25?
Policy support, FTAs, and export hubs. - Which sectors benefited from China+1 strategy?
FMCG, electronics, and textiles. - What happened to export credit availability in 2024-25?
It fell by 5%. - How many Indian food shipments were rejected by the US in 2024?
3,925 shipments. - Why did the EU raise alerts on Indian rice exports?
Due to pesticide residues. - Which Indian digital infrastructure is being exported globally?
UPI and Aadhaar systems. - Name two recent FTAs signed by India.
India-UAE CEPA and India-Australia ECTA. - Which regional initiative improved supply chain and connectivity?
BBIN Motor Vehicle Pact and UPI linkages. - What was India’s trade deficit in March 2025?
USD 21.54 billion. - Who introduced the concept of Human Development Index (HDI)?
Mahbub ul Haq in 1990 - Which organisation publishes the Human Development Report?
UNDP (United Nations Development Programme) - What are the three components of HDI?
Health, Education, and Standard of Living - How is health measured in HDI?
Life expectancy at birth - How is education measured in HDI?
Mean years of schooling and expected years of schooling - How is standard of living measured in HDI?
GNI per capita (PPP $)
Human Development In India
- What is India’s rank in the Human Development Index 2024?
134th - What is India’s HDI value as per HDR 2024?
0.644 - Which country topped the HDI 2024 ranking?
Switzerland - Which country is at the bottom of HDI ranking 2024?
South Sudan
- What was India’s HDI rank in 2023?
135th - Which Indian state ranks highest in HDI?
Kerala - Which Indian state ranks lowest in HDI?
Bihar - What is Kerala’s HDI score?
0.781 - Which states follow Kerala in HDI ranking?
Delhi and Goa - Which states are at the bottom of HDI ranking in India?
Bihar, Jharkhand, and Uttar Pradesh - What is India’s literacy rate as per NFHS-5?
77.7% - Which state has the highest literacy rate?
Kerala (94%) - Which state has the lowest literacy rate?
Bihar (~61.8%) - What is India’s life expectancy at birth?
69.7 years
- What is GDI?
Gender Development Index - What is Gender Inequality Index (GII)?
Measures gender-based inequality in health, empowerment, and labour - What is India’s rank in Gender Inequality Index 2023?
108th - What is sex ratio as per Census 2011?
940 females per 1000 males - Which state has the highest sex ratio?
Kerala (1084)[ - Which state has the lowest sex ratio?
Haryana (879) - What is the current sex ratio at birth (NFHS-5)?
929 females per 1000 males - What is India’s female labour force participation rate?
23.3% - Which Indian state has the highest female literacy?
Kerala - Which state has the lowest female literacy?
Bihar
- What is MPI?
Multidimensional Poverty Index - Who releases Global MPI?
UNDP and Oxford Poverty & Human Development Initiative - What dimensions are covered under MPI?
Health, Education, and Standard of Living - What percentage of Indians were multidimensionally poor in 2015-16?
24.8% - What percentage of Indians were multidimensionally poor in 2019-21?
14.96% - Which state recorded the largest decline in MPI?
Uttar Pradesh - Which state has the lowest MPI in India?
Kerala - Which state has the highest MPI in India?
Bihar - What is India’s global rank in MPI 2023?
62nd out of 111 countries - Which group is most affected by multidimensional poverty?
Rural population
- Which Indian report introduced the concept of human development?
India Human Development Report (IHDR) - Who publishes IHDR?
Institute of Applied Manpower Research (Planning Commission/NITI Aayog) - When was the first India Human Development Report released?
2011 - Which report assesses gender development in India?
Gender Gap Report by WEF - What is India’s rank in Global Gender Gap Report 2023?
127th - Name a scheme for health improvement in India.
Ayushman Bharat – PMJAY - Name a scheme for education improvement in India.
Samagra Shiksha Abhiyan - Name a nutrition mission in India.
POSHAN Abhiyaan - What is the full form of ICDS?
Integrated Child Development Services - Which program provides mid-day meals in schools?
PM-POSHAN (Mid-Day Meal Scheme)
- What is the aim of SDG 3?
Good Health and Well-being - What is the aim of SDG 4?
Quality Education - What is the aim of SDG 5?
Gender Equality - What is India’s deadline to achieve SDGs?
2030 - Which index monitors India’s progress on SDGs?
NITI Aayog SDG India Index - Which state topped SDG India Index 2023?
Kerala - Which UT topped SDG India Index 2023?
Chandigarh - Which state scored lowest in SDG India Index?
Bihar - What is the score of Kerala in the SDG Index?
75 out of 100 - Which organization releases the Global SDG Index?
UN Sustainable Development Solutions Network
- What is India’s infant mortality rate (IMR) as per NFHS-5?
32 per 1000 live births - What is the maternal mortality ratio (MMR) in India?
97 per 100,000 live births - Which state has the lowest IMR?
Kerala - Which state has the highest IMR?
Madhya Pradesh - What is India’s Gross Enrollment Ratio (GER) in higher education?
27.3% - Which state has the highest GER in higher education?
Chandigarh - What is the literacy rate among rural females in India?
65.8% - What is the literacy rate among rural males in India?
78.5% - What percentage of children in India are underweight (NFHS-5)?
32.1% - What percentage of children in India are stunted (NFHS-5)?
35.5%
- Which Indian economist contributed to HDI measurement?
Amartya Sen - Which index measures economic inequality in India?
Gini Coefficient - What is India’s Gini coefficient value?
Around 0.35 - Which Indian state has the highest per capita income?
Goa - Which Indian state has the lowest per capita income?
Bihar - Which state has the highest life expectancy in India?
Kerala - Which state has the lowest life expectancy in India?
Chhattisgarh - What is the main objective of human development?
To enlarge people’s choices and capabilities - Which is the most important component of human development?
Education and health - Who wrote the book “Development as Freedom”?
Amartya Sen
Extra Questions on Banking In India
1. What is the current repo rate as per RBI’s July 2025 policy?
6.50%
2. What is the current reverse repo rate in India?
3.35%
3. What is the current Cash Reserve Ratio (CRR) as per RBI?
4.50%
4. What is the current Statutory Liquidity Ratio (SLR) in India?
18.00%
5. Who is the current Governor of RBI (as of July 2025)?
Shaktikanta Das
6. When was the latest Monetary Policy Committee (MPC) meeting held?
June 2025
7. How often does RBI’s MPC meet?
Six times a year (bi-monthly)
8. What is the current inflation target under RBI’s framework?
4% ± 2%
9. What is RBI’s real GDP growth projection for FY 2025-26?
7.0%
10. What is RBI’s inflation forecast for FY 2025-26?
4.5%
11. Which bank topped the list of most profitable PSU banks in FY 2024-25?
State Bank of India (SBI)
12. Which bank launched the ‘Utsav FD’ special fixed deposit scheme in 2025?
Punjab National Bank (PNB)
13. What is the maximum deposit insurance amount under DICGC?
₹5 lakh
14. Which institution regulates digital payment aggregators in India?
Reserve Bank of India
15. When did RBI issue its latest guidelines for digital lending apps?
May 2024
16. What is the name of RBI’s digital currency pilot project?
CBDC – Central Bank Digital Currency (Digital Rupee)
17. When did RBI launch the pilot of retail CBDC?
December 2022
18. How many banks are participating in RBI’s CBDC pilot for retail?
13 banks
19. What is the name of RBI’s real-time gross settlement system?
RTGS
20. What is the minimum amount for RTGS transfer?
₹2 lakh
21. What is the maximum limit for UPI Lite transactions?
₹500 per transaction
22. What is the daily transaction limit under UPI?
₹1 lakh per day
23. Which platform was recently integrated with UPI for international transactions?
PayNow (Singapore)
24. Which two countries linked their instant payment systems via UPI in 2024?
India and UAE
25. Which card network launched the ‘RuPay Credit Card on UPI’?
NPCI (National Payments Corporation of India)
26. What is the latest RBI rule on card tokenisation deadline?
Extended to 30 September 2024
27. Which new feature did RBI launch for recurring UPI payments?
UPI AutoPay
28. What is the maximum limit for UPI AutoPay without OTP?
₹15,000
29. What is the latest NEFT settlement cycle as per RBI?
24×7 (since December 2019)
30. What is the new RBI rule for credit card bill payments via UPI?
Allowed from July 2023
31. What was India’s banking credit growth in FY 2024-25?
13.5%
32. Which sector had the highest credit growth in FY 2025?
Personal loans
33. Which bank launched India’s first green fixed deposit?
HDFC Bank
34. What is the latest RBI penalty for late filing of foreign investment returns?
₹7,500 per return
35. Which app did RBI launch for financial inclusion and awareness?
RBI Financial Literacy App
36. Which new measure did RBI introduce to curb inflation in 2024?
Open Market Operations (OMO) sales
37. Which committee reviews RBI’s monetary policy framework?
Urjit Patel Committee (original recommendation)
38. Which PSU bank completed 100 years in 2025?
Bank of Baroda
39. Which fintech was penalised by RBI for KYC violation in 2024?
Paytm Payments Bank
40. What is the current penalty amount RBI can impose on banks for regulatory breach?
Up to ₹1 crore per instance
