Indian Economy Question answers|Economics Q & A - gk lokam

3 February 2020

Indian Economy Question answers|Economics Q & A

Indian Economy Question answers|Economics Q & A

Indian Economy

Father of Modern Economics
Ans : Adam Smith (Scotland)
Laissez - Faire policy is associated with
Ans : Adam Smith
'Wealth of Nation' is the famous book of
Ans : Adam Smith
Study of wealth is called
Ans : Aphnology

The position of Indian economy in the world
Ans : 7
The financial capital of the world
Ans : Zurich (Switzerland)
Father of Micro Economics
Ans : Alfred Marshall/David Ricardo
Father of Macro Economics
Ans : John Maynard Keynes
Financial capital of India
Ans : Mumbai
Father of Indian Economics
Ans : Dadabhai Naoroji
Father of Indian Statistics
Ans : P.C. Mahalanobis 
The first official attempt to calculate National Income in India was made by P.C. Mahalanobis  The National income Committee (NIC) set up in 1949 by the Government of India under the chairmanship of
Ans : P.C. Mahalanobis
P.C.Mahalanobis founded the Indian Statistical Institute in
Ans : Kolkata (1931)
Central statistical organization was founded by
Ans : P.C. Mahalanobis 
Head quarters of Central Statistical Organization
Ans : New Delhi (1951)
Indian statistics day
Ans : June - 29 
Birthday of PC Mahalanobis is observed as
Ans : Indian Statistics Day 

Laissez Faire Theory - Adam Smith
Population theory - Thomas Robert Malthus
Marginal Productivity theory - J.B. Clark
Theory of Distribution - David Ricardo
Elasticity of Demand - Alfred Marshall
The Brain Drain theory was put forward by
Ans : Dadabhai Naoroji
Poverty and UnBritish rule in India is the Famous book of
Ans : Dadabhai Naoroji
First estimate of National Income in India was made by
Ans : Dadabhai Naoroji
First person to adopt a scientific procedure in calculating the National Income was
Ans : V.K.R.V. Rao (1931)


The type of economy in which private enterprises are existing in the sphere of production
Ans : Capitalist Economy
The type of economy in which Government does not have control over markets and does not take part in any kind of production process
Ans : Capitalist Economy
Type of economy in which the profit of service is earned by an individual
Ans : Capitalist Economy
Examples of Capitalist Economy
Ans : USA, Britain, Japan, Brazil, France

The type of economy in which public enterprise or state ownership of capital is existing in all the important sphere of production
Ans : Socialist Economy
In socialist economy all means of production are controlled by the
Ans : Government
In socialist Economy, what to produce, how to produce and for whom to produce depend on the demand of the
Ans : Society
Examples of Socialist Economy
Ans : China, Cuba

Type of economy in which a mixture of public and private enterprises is existing
The type of economy which is the combination of Capitalism and Socialism
Ans : Mixed Economy
The type of economy in which all means of production are shared between the public and private sector
Ans : Mixed Economy
Examples for Mixed Economy
Ans : India, Australia

Type of Economy in which the means of production and social welfare for the people is given a priority over individual profit
Ans : Communist Economy
Example for Communist Economy
Ans : North Korea


The sector of an economy making direct use of natural resources
Ans : Primary sector
eg. Agricultural sector

The activities including the manufacturing of physical goods and other industrial production come under
Ans:Secondary Sector
eg : Industrial sector

Tertiary Sector is otherwise known as
Ans : Service Sector
The service sector which gives support to all activities for the development of the primary and secondary sectors
Ans : Tertiary sector
eg : Banking sector, Transportation and communication
World Nations are divided into three
1.Developed Nation
2.Developing Nation
3.Least Developed Nation (Undeveloped)

A country having high levels of National and Per Capita incomes is known as
Ans : Developed Country
The country having high standard of life is known as
Ans : Developed Country
Country having high economic growth and security is termed as
Ans : Developed Country
Countries which are more advance in scientific and technological field
Ans : Developed Countries
Eg: USA, England, Japan, Germany, France

Another term for Developing countries
Ans : Third world countries
Countries having low standard of living are included in the
Ans : Developing Nation
Illiteracy, Low National Income, Unemployment, Low Human Development Index (HDI) etc. are the main characteristics of a
Ans : Developing Nation
Earlier name of developing countries
Ans : Under developed countries
Eg : India, South Africa, Brazil

Extreme poverty, very low GDP, low percapita income, high rate of population, unemployment are the characteristics of
Ans : Least Developed Countries
Weak economy, inadequate human resource and vulnerable natural disasters are the features of
Ans : Least Developed Countries
Examples of Least Developed Countries
Ans : Afghanistan, Angola, Benin

The composite statistics of life expectancy, education, and per capita income indicators of countries
Ans : Human Development Index (HDI)
HDI was launched by
Ans : Amartya Sen (Indian) and Mahbub Ul Haq (Pak Economist)
HDI was launched in
Ans : 1990
Standard measurement for distinguishing whether the country is developed, developing or under developed
Ans : HDI
As per the Human Development Index published on March 21, 2017, the country tops in the list is
Ans : Norway
As per the Human Development Index published on March 21, 2017, the position of India is
Ans : 131
GDP (Gross Domestic Product)

The value of all goods and services produced within a country during a given period
Ans : GDP
GNP (Gross National Product)
The sum total of all goods and services produced by the nationals of a country during a year
Ans : GNP
National Income
The sum total of all final goods and services produced in a country in a particular period of time usually one year
Ans : National Income
Per Capita income
It refers National Income divided by the population of the country

Compulsory payment made by citizen or corporate bodies to Government
Ans : Tax
Article 265 of Indian constitution deals with
Ans : Taxes
Tax was imposed for the first time in
Ans : Egypt
John Mathai Commission or Taxation Enquiry commission was set up to study the
Ans : Taxation system in India
John Mathai Commission or Taxation Enquiry commission was set up in
Ans : 1954
Income tax Act came into force on
Ans : 1st April 1962

Wealth of Nations-Adam Smith
Das Capital-Karl Marx
Poverty and UnBritish Rule in India - Dadabhai Naoroji
Poverty and Famine - Amartya Sen
Rationality and Freedom - Amartya Sen
Development as freedom - Amartya Sen
The Argumentative Indian - Amartya Sen
Commodities and Capabilities - Amartya Sen
Choice of Techniques - Amartya Sen
Beyond the crisis;Development Strategies in Asia - Amartya sen
Human Rights and Asian Values - Amartya Sen
Asian Drama - Gunnar Myrdal
The myth of free trade  - Ravi Batra
Crash of the Millennium - Ravi Batra
Great Depression of 1990 - Ravi Batra
Principle of Political Economy and Taxation - David Ricardo
Communist Manifesto - Karl Marx Fredrik Engels
General Theory of Employment Interest and money - J.M.Keynes
There are mainly two types of taxes
(1)Direct Tax
(2)Indirect Tax

Raja Chelliah
Ans : Tax Reforms 
Ans : Vijay Kelkar
Direct and Indirect Tax Structures
Ans : Banking Sector Reforms 
Ans : Insurance Privatisation 
Damoderan Committee
Ans : Banking Service Reforms
Lakadawala Committee
Ans : Poverty line
Ashoka Mehta
Ans : Panchayat Raj Reforms
Ans:Decentralisation of powers to Panchayat Raj institutions
Indira Goswami
Ans : Industrial Sickness
R.S. Sarkaria
Ans : Central State Relationship
Ans : Agricultural Reforms
LC Gupta
Ans : Trading of Shares
G.V. Ramakrishna
Ans : Disinvestment commission
Sachar commission
Ans : The Socio - Economic and Educational Status of the Muslim - Community in India
Mandal Commission
Ans : To identify the socially or educationally backward
Kothari Commission
Ans : Education commission
C.D. Mayee Commission
Ans : Endosulfan
Tendulkar Commission
Ans : Identifying people below the poverty line

A tax directly paid to the government by the individuals or organizations on whom it is imposed is called
Ans : Direct Tax
The tax which cannot be shifted by the taxpayer to someone else
Ans : Direct Tax
The main examples of Direct Taxes are
Ans : Income Tax, Gift Tax, Wealth Tax, Property Tax, Corporate Tax, Capital Gains Tax, Securities Transaction Tax, Perquisite Tax, etc

The taxes paid while purchasing goods and services are called
Ans : Indirect Tax
The tax which can be shifted by the taxpayer to someone else
Ans : Indirect Tax

Income Tax
Corporate Tax
Property Tax
Wealth Tax
Gift Tax
Custom Duty
Service Tax

Land Revenue Tax
Stamp Duty
State excise Duty
Road Tax
Entertainment Tax
Motor Vehicle Tax
Agricultural Income Tax
Agriculture Land Revenue etc.
Eg : Excise duty,sales Tax,Entertainment Tax,Custom duty and Octroi,Goods and Services Tax(GST),Services Tax,Value Added Tax (VAT)
A local tax collected on various articles brought into a district for consumption
Ans : Octroi
VAT (Value Added Tax)

The type of consumption tax that is placed on a product whenever value is added at a stage of production and at final sale
Ans : VAT
Value Added Tax (VAT) was introduced in
Ans : France (1954)
First Asian Country to introduce VAT
Ans : South Korea
First Indian state to introduce VAT
Ans : Haryana (April 1,2003)
VAT was introduced in India on
Ans : April 1, 2005
The first country introduced value added tax (VAT)
Ans : France
First country introduced Goods and service Tax (GST)
Ans : France
First country introduced fat Tax
Ans : Denmark
First country introduced carbon tax
Ans : New Zealand
First country Introduced salt tax
Ans : China
The Chairman of the Empowerment Committee introduced VAT in India
Ans : Asim Das Gupta
MODVAT stands for
Ans : Modified Value Added Tax
MODVAT was introduced with effect from
Ans : March 1,1986
Modvat has later been replaced by
Ans : CEN VAT (Central Value Added Tax)
CEN VAT came into force in
Ans : April 1, 2000

An organised market for buying and sellinq shares and other securities
Ans : Stock Exchange
World's first stock exchange was formed at
Ans : Antwerp in Belgium
Oldest stock exchange in Asia
Ans : Bombay Stock Exchange (BSE)
Largest stock exchange in the world
Ans : NYSE Euronext (formerly known as Area Ex.)
Stock exchange index of America is known as
Ans : National Association of Securities Dealers Automated Quotation system
First electronic stock exchange
Headquarters of Newyork Stock Exchange
Ans : Wallstreet

New York - Nasdaq
New York - Dow Jones
India - Sensex
India - Nifty
Japan - Nikkei
Singapore - Simex
Frankfurt - Mid Dax
London - FTSE
Hong Kong - Hang Seng
Brazil - Bovespa
First Indian company to be listed on the US NASDAQ
Ans : Infosys Technologies 
First Indian public sector Unit of New York Stock Exchange
Ans : VSNL
Financial Capital of China
Ans : Shanghai

Second largest share holding population in the world
Ans : India
The terms associated with the Stock Exchanges
Ans : Bull and Bear
The upward market trend is termed as
Ans : Bull
The downward market trend is termed as
Ans : Bear
High valued shares are known as
Ans : Blue chips

Old name of Bombay Stock Exchange
Ans : The Native Share & Stock Brokers Association
The oldest stock exchange in Asia
Ans : BSE
BSE was established in
Ans : 1875
BSE located on
Ans : Dalai street, Mumbai
First company registered in Bombay stock exchange was
Ans : D.S. Prabhudas and Company
BSE share index is known as
Ans : SENSEX (Stock Exchange Sensitive Index)
The name SENSEX was proposed by
Ans : Deepak Mohani
The Edge is Efficiency is the caption of
Ans : BSE
The pulse of the domestic Stock markets in India
10th largest stock market in the world by market capitalization
Ans : BSE
Cochin stock exchange was founded in
Ans : 1978
First stock exchange in Kerala
Ans : Cochin Stock Exchange

National Stock Exchange was founded in
Ans : 1992
Largest stock exchange in India
Ans : National Stock Exchange
Headquarters of NSE
Ans : Mumbai
Share Index of NSE
NSE was set up on the recommendation of
Ans : Pherwani Committee (1991)
Second fastest growing stock exchange in the world
Ans : NSE
Bombay Stock Exchange -1875
Ahmedabad Stock Exchange -1894
Kolkata Stock Exchange -1908
Cochin Stock Exchange -1978
National Stock Exchange -1992

Regular for the securities market in India
Ans : SEBI
SEBI was established in the year
Ans : 1988
SEBI was given statutory power on
Ans : April 12, 1992
Headquarters of SEBI
Ans : Bandra kurla Complex (Mumbai)
First Chairman of SEBI
Ans : S.A.Dave
Forward Market Commission was merged with SEBI in
Ans : 2015

First insurance company in India
Ans : Oriental Life Insurance company
Oriental Life Insurance was established at
Ans : Kolkata
Oriental Life Insurance was established in
Ans : 1818
First native insurance provider in India
Ans : The Bombay Mutual life Assurance society
The Bombay Mutual life Assurance society was established in
Ans : 1870
The year in which the Government of India issued an ordinance for nationalising the life insurance sector in India
Ans : 1956
R.N. Malhotra Commission is associated with the
Ans : Insurance sector
An autonomous body instituted to regulate and develop the insurance industry in India
Ans : Insurance Regulatory and Development Authority (IRDA)
Headquartes of IRDA
Ans : Hyderabad
IRDA was incorporated as a statutory body in
Ans : April 2000
General Insurance Corporation of India was Formed in
Ans : 1972
General Insurance Corporation was nationalized on
Ans : January 1,1973
Head quarters of General Insurance Corporation
Ans : Mumbai
Life Insurance Corporation was set up in
Ans : 1956
Headquarters of Life Insurance Corporation is in
Ans : Mumbai
Motto of LIC
Ans : Yogakshemam Vahamyaham (your welfare is our responsibility)
The person who founded Hindustan Insurance Society, which later became Life Insurance Corporation
Ans : Surendranath Tagore
Largest insurance group fully owned by the Government of India
Ans : LIC
Mundra Case is related to
Ans : LIC
First woman Managing Director of LIC
Ans : Usha Sangwan

First bank in India
Ans : Bank of Hindustan
Bank of Hindustan was established in
Ans : Calcutta (1770)
Oldest public sector bank in India
Ans : Allahabad Bank

The Prime Minister who nationalised banks in India for the first time
Ans : Indira Gandhi
First nationalisation of banks was held on
Ans : July 19,1969
Number of banks in India nationalised for the first time
Ans : 14
Total asset of a bank which was nationalised in 1969 was exceeded
Ans : 50 crores
The second phase of bank nationalisation in India was held on
Ans : April 15,1980
Number of banks nationalised in second phase
Ans : 6
The Prime Minister who nationalised Banks in India in 1980
Ans : Indira Gandhi
Total asset of a Bank which was nationalised in 1980 was exceeded
Ans : 200 crores
Allahabad Bank was established in
Ans : 1865
UTI ( Unit Trust of India) Bank is the former name of
Ans : Axis Bank
First Bank in the world
Ans : Bank of Venice
First Bank to begin permanent issue of bank notes
Ans : Bank of England
First private bank in India
Ans : City Union Bank
ATM in India : HSBC
Internet Banking : ICICI Bank
Mutual Fund : Unit Trust-of India (UTI)
Credit card facility : Central Bank of India
First bank to get ISO Certificate : Canara Bank
Savings Bank Facility : Presidency Bank
First Indian bank to open branch outside India : Bank of India (London)
Online Banking : HDFC
Cheque facility : Bengal Bank
Talking ATM : Union Bank of  India
Indian bank to get Green Bond Award of Britain :YES Bank
Greenfield Bank licence awarded by RBI :YES Bank

Reserve Bank of India act was passed in
Ans : 1934
Reserve Bank of India was established on
Ans : April 1,1935
The head quarters of RBI was initially established in
Ans : Kolkata
The headquarters of RBI was permanently shifted to Mumbai in
Ans : 1937
RBI was setup on the recommendation of
Ans : Hilton Young Commission (1926)
Hilton Young Commission was also known as
Ans : Royal Commission
The Bank known as Banker's Bank
Ans : RBI
The apex bank of India
Ans : RBI
The Central bank of India
Ans : RBI
The regulator of loans
Ans : RBI
The bank which is often referred as Mint Street
Ans : RBI
The Banking Ombudsman Scheme has been formulated by
Ans : RBI
The credit controller of India
Ans : RBI
The bank which represents India in- the IMF
Ans : RBI
RBI was nationalised on
Ans : January 1, 1949
Headquarters of RBI in Kerala
Ans : Thiruvananthapuram
The animal embossed on the emblem of Reserve Bank of India
Ans : Tiger
The tree embossed on the emblem of Reserve Bank of India
Ans : Palm Tree
First Governor of RBI
Ans : Sir Osborne Smith
First Indian to become the Governor of RBI
Ans : C.D. Deshmukh
The longest serving Governor of Reserve Bank of India
Ans : Benegal Rama Rao
Second Governor of RBI
Ans : James Taylor
First woman RBI Deputy Governor
Ans : K.J. Udeshi
The Indian Prime Minister who had served as Reserve Bank Governor
Ans : Man Mohan Singh
The only state which does not come under financial supervision of the RBI
Ans : Jammu & Kashmir

To work as monetary authority and implement its Monetary policy
To serve as issuer of bank notes
To Serve as banker to central and state governments
To serve as debt manager to central and state governments
To provide ways and means advances to the state governments
To Serve as banker to the banks and lender of last resort(LOLR) for them
To work as supervisor and regulator of the banking and financial system
Management of Foreign Exchange Reserves of the country
To support the government In the development of the country
The amount of funds that the banks are bound to keep with Reserve bank of India
Ans : Cash Reserve Ratio
The rate at which the banks borrow money from RBI
Ans : Repo rate
Repo rate is otherwise known as
Ans : Repurchase rate
The rate at which the RBI borrows money from Banks
Ans : Reverse Repo rate
The rate of interest which a central bank charges on the loans and advances to a commercial bank
Ans : Bank Rate
Bank rate is also referred to as
Ans : Discount rate

First Indian Bank purely managed by the Indians
Ans : Punjab National Bank
Founder of Pujab National Bank
Ans : Lala Lajpat Rai
Punjab National Bank was established in
Ans : Lahore
Punjab National Bank was founded in
Ans : 1894
Punjab National Bank began to function in
Ans : 1895
First bank in India to introduce the Voluntary Retirement Scheme (VRS)
Ans : Punjab National Bank
Head quarters of Punjab National Bank
Ans : New Delhi
Maha Bachat Scheme was started by
Ans : Punjab National Bank
New India was merged in Punjab National Bank in
Ans : 1993


Largest commercial bank in India
Ans : State Bank of India
Headquarters of SBI is at
Ans : Mumbai
The earlier name of SBI
Ans : Imperial Bank
The name Imperial Bank of India was suggested by
Ans : Lord John Keynes
Imperial Bank of India Act was passed in
Ans : 1920
The Imperial Bank of India was established in
Ans : 1921
The Imperial Bank of India became the State Bank of India on
Ans : July 1,1955
SBI was nationalised in
Ans : 1955
The bank which has the most number of branches in India
Ans : SBI
India's first floating ATM was launched by
Ans : SBI
First Indian bank to open a branch in Israel
Ans : SBI
First Malayali Chairman of SBI
Ans : John Mathai
First woman Chairperson of State Bank of India
Ans : Arundhati Bhatacharya
National poet who was depicted as the customer in the advertisement of SBI
Ans : Tagore
The policy adopted by SBI to bring back its old customers
Ans : Bank Vapassi
Five Associated Banks of SBI were merged with SBI on
Ans : March 31, 2017
The Prime Minister who took initiative for the merging of Associated banks of SBI
Ans : Narendra Modi
The bank which was merged with SBI along with the 5 Associated banks of SBI
Ans : Bharatiya Mahila Bank

State Bank of Hyderabad 
State Bank of Mysore
State Bank of Patiala
State Bank of Travancore  
State Bank of Bikaner & Jaipur
The Bank of Common Man
Pure Banking, Nothing else
With you always
The Banker to Every Indian
The Nation Bank on us

NABARD was established on
Ans : 12th July 1982
Headquarters of NABARD is at
Ans : Mumbai
NABARD was established on the recommendation of
Ans : Sivaraman Committee
The apex bank in India for agriculture development
The bank to facilitate credit flow for the promotion and development of agriculture
India's specialised bank for Agriculture and Rural Development in India
The bank known for its 'SHG Bank Linkage Programme'

First women's bank in India
Ans : Bharatiya Mahila Bank 
Headquarters of BMB
Ans : New Delhi
Bharatiya Mahila Bank was established on
Ans : November 19,2013
Bharatiya Mahila Bank was inagurated by
Ans : Manmohan sigh and Sonia Gandhi at Mumbai
India is the third country in the world to have a bank especially for women after
Ans : Pakistan and Tanzania
First Chairperson and Managing Director of Bharatiya Mahila Bank
Ans : Usha Anantha Subramanian
First branch of BMB was opened in
Ans : Mumbai
First branch of BMB was opened in Kerala at
Ans : Kamaleshwaram (Thiruvananthapuram)
The bank which was inaugurated on the 96th birth anniversary of Indira Gandhi
Ans : BMB
The committee related with the establishment of the BMB
Ans : MBN Rao Committee
The tag line of BMB
Ans : Empowering Women, Empowering India
BMB was merged with SBI on
Ans : March 31, 2017

Regional Rural Banks were established on
Ans : October 2,1975
RRB was setup under recommendation of
Ans : Narasimham committee
First Regional Rural Bank was started in
Ans : Moradabad (UP)
Regional Rural Bank is popularly known as
Ans : Gramin Bank
State having most number of Regional Rural Banks in India
Ans : Uttar Pradesh
Regional Rural Banks have not been started in
Ans : Sikkim and Goa
Largest Regional Rural Bank in India
Ans : Kerala Gramin Bank
The Headquarters of Kerala Gramin Bank
Ans : Malappuram

Lead Bank system in India was started in
Ans : 1969
The Committee which recommended for the Lead bank
Ans : Gadgil Committee
The bank which works for financial and industrial development of the district concerned
Ans : Lead Bank


The bank which provides loan for digging wells, purchasing seeds etc. under the security of properties
Ans : Land Development Bank
The bank which entertains Green Revolution
Ans : Land Development Bank
First Land Development Bank was started in
Ans : Punjab

The first bank in Kerala is
Ans : Nedungadi Bank
Nedungadi Bank was founded in
Ans : 1899
Founder of Nedungadi Bank
Ans : Appu Nedungadi
Nedungadi Bank merged with
Ans : Punjab National Bank
Nedungadi Bank merged with Punjab National Bank in
Ans : 2003


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