Facts About Indian Economy

March, 2017

The Indian economy is expected to grow at 7.6 per cent in FY 2017-18, as per the forecast by The
World Bank.

Foreign direct investment (FDI) inflows rose 22 per cent year-on-year to US$ 35.84 billion during April
December 2016.

India's foreign exchange reserves were US$ 367.93 billion in the week up to March 24, 2017,

Indias Index of Industrial Production (IIP) rose 2.7 per cent in January 2017, as against a decline of 0.1
per cent in December 2016

India's current account deficit (CAD) is expected to be around 0.7 per cent of gross domestic product
(GDP) in 2016-17, as against a deficit of 1.1 per cent in 2015-16.

Indias Wholesale Price Index (WPI) inflation rate rose to 6.5 per cent in February 2017 as against 5.2
per cent in January 2017.

Indias Consumer Price Index (CPI) inflation rate increased to 3.65 per cent in February 2017, as
against a decline of 3.17 per cent in January 2017.
 COMMERCE CLASSES
(A Complete Cell of Commerce Education)
B.H.U./B.CoM/ Economics/current/20017 Since-2002

(current economics-MCQ-2017)
1.The most important source of capital formation in India has been?
(A) Household savings (B) Public sector savings
(C) Government revenue surpluses (D) Corporate savings
2.In India, the Public Sector is most dominant in?

(A)transport (B) steel production (C) commercial banking

(D) organised term lending financial institutions.

3.Goas economy is mainly based on ?

tourism # export of ores #agriculture #None of these

4.Indias wage policy is based on ?

# Cost Of Living #Standard of living #productivity #None of these
5.The main source of Indias national income is?

Industry # Agriculture #Forestry #None of these

6.Which of the following are the main causes of slow rate of growth of per capita income
in India?
I. High capital - output ratio 2. High rate of growth of population
7 High rate of capital formation 4. High level of fiscal deficits

# 1,2 #2,3,4 #1,4 #All of the Above

8. Among Indian Economists who had done pioneering work on National Income?

#P. N. Dhar #Jagdish Bhagwati # V. K. R. V. Rao #Prof. Shenoi

9. In our country, which of the following affects poverty line the most?

#Level of prices #Production quantum

#Per capita income #Quantum of gold reserve

10.Fresh evaluation of every item of expenditure from the very beginning of each
financial year is called ?
 #Fresh Budgeting #Deficit Budgeting #Performance Budgeting # Zero-based Budgeting

11. Government imposes taxes to ?

#check the accumulation of wealth among the rich # Run the machinery of state

#uplift weaker sections #None of these

12.An ad valorem duty is a tax on the basis of

# the price of a commodity #the value added

#the advertisement expenditure ##the unit of the commodity

13. The budget is presented to the Parliament on

# the last day of February #15th March #the last day of March # 1st April

14.The income tax in India is

#indirect and progressive #direct and proportional

# direct and progressive #indirect and proportional

15. Fiscal Policy is connected with

#Issue of currency #exports and imports # public revenue and expenditure #None of these

16.Which of the following is not a direct tax?

#Wealth Tax #Income Tax #Estate Duty # Sales Tax

 ANSWERS

1.The most important source of capital formation in India has been?

Answer: Household savings
3.In India, the Public Sector is most dominant in?
Answer: commercial banking
4.Goas economy is mainly based on ?
Answer: export of ores
5.Indias wage policy is based on ?
Answer: Cost Of Living
11.The main source of Indias national income is?
Answer: Agriculture
12.Which of the following are the main causes of slow rate of growth of per capita income
in India?
I. High capital - output ratio
2. High rate of growth of population
3. High rate of capital formation
4. High level of fiscal deficits
Answer: 1,2
13. Among Indian Economists who had done pioneering work on National Income?
Answer: V. K. R. V. Rao
15. In our country, which of the following affects poverty line the most?
Answer: Per capita income
19.Fresh evaluation of every item of expenditure from the very beginning of each financial
year is called ?
Answer: Zero-based Budgeting
20. Government imposes taxes to ?
Answer: Run the machinery of state
21.An ad valorem duty is a tax on the basis of
Answer: the price of a commodity
22. The budget is presented to the Parliament on
Answer: the last day of February
23.The income tax in India is
Answer: direct and progressive
 24. Fiscal Policy is connected with
Answer: public revenue and expenditure
25.Which of the following is not a direct tax?
Answer: Sales Tax