Easy Level – GK Questions

Answer: Narasimham Committee

The Narasimham Working Group (1975) recommended the creation of RRBs to bridge the credit gap in rural areas. They operate with a local orientation and lower cost structure, with their equity jointly held by the Government of India (50%), the concerned State Government (15%), and the Sponsor Bank (35%).

Answer: 2016

Demonetization was announced on November 8, 2016, with the stated objectives of curbing black money, eliminating counterfeit currency, and pushing the economy towards digital payments. It resulted in 86% of the currency in circulation being temporarily withdrawn from the system.

Answer: Other

M1 is the most liquid measure of money supply, comprising coins and currency notes held by the public, net demand deposits held by commercial banks, and 'Other Deposits' (like foreign central bank or IMF deposits) held with the RBI. It represents the money immediately available for transactions.

Answer: Bad money drives out good money

Gresham's Law states that if there are two forms of money in circulation with the same face value but different intrinsic values, people will hoard the 'good' money (higher intrinsic value, like gold) and spend the 'bad' money (lower intrinsic value). Consequently, the bad money dominates the market.

Answer: 2014

Launched in September 2014, Make in India focuses on 25 key sectors of the economy. It aims to facilitate investment, foster innovation, enhance skill development, and build best-in-class manufacturing infrastructure to increase the manufacturing sector's share in GDP.

Answer: 8

The Eight Core Industries (Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity) comprise over 40% of the weight of the items included in the IIP. They are considered leading indicators of overall industrial and economic activity.

Answer: Paper Gold

Created in 1969 to supplement member countries' official reserves, SDRs are not a currency themselves but a potential claim on the freely usable currencies of IMF members. They were termed 'Paper Gold' because they were initially intended to serve as a substitute for gold in international settlements.

Answer: 2011-12

The Office of the Economic Adviser (OEA) compiles the WPI, which tracks price changes in the wholesale market for a basket of 697 items. The base year was updated from 2004-05 to 2011-12 to align it with the base year of the Consumer Price Index (CPI) and GDP series.

Answer: Transforming India

NITI Aayog stands for National Institution for Transforming India. It was established in 2015 to replace the Planning Commission, acting as the premier policy think tank of the Government of India and fostering cooperative federalism through a bottom-up approach.

Answer: capital

The capital market facilitates the flow of long-term savings into productive investments, comprising both the primary market (new issues) and the secondary market (stock exchanges). It is essential for funding corporate expansion and infrastructure development.

Answer: False

NBFCs primarily engage in lending and investment activities but cannot accept demand deposits from the public. Furthermore, they are not part of the payment and settlement system and cannot issue cheques drawn on themselves, distinguishing them fundamentally from commercial banks.

Answer: 1992

Although SEBI was initially set up as a non-statutory body in 1988, it lacked enforcement teeth. It was granted statutory status and comprehensive regulatory powers over the securities market via the SEBI Act, which was passed by Parliament in 1992.

Answer: 1 day

The call money market deals in extremely short-term, uncollateralized loans between banks to meet their immediate reserve requirements. Funds borrowed for exactly one day are called 'call money', whereas funds borrowed for 2 to 14 days are termed 'notice money'.

Answer: Perfect equality

The Gini coefficient measures the distribution of income or wealth within a population, ranging from 0 to 1. A value of 0 represents perfect equality (everyone has the exact same income), while a value of 1 represents perfect inequality (one person holds all the income).

Answer: frictional

Frictional unemployment is a natural and inevitable part of any dynamic labor market. It represents the time lag between workers leaving one job and finding another that better matches their skills and salary expectations.

Answer: Rs. 6,000

The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) provides an annual financial benefit of Rs. 6,000 to small and marginal farmer families. This amount is transferred directly into their bank accounts in three equal installments of Rs. 2,000 every four months.

Answer: To stabilize market prices and ensure food security

Buffer stocks are maintained to intervene in the market during times of shortage or surplus. By releasing stocks during scarcity, the government prevents price spikes, and by procuring during bumper harvests, it prevents price crashes, thereby protecting both consumers and farmers.

Answer: True

Used primarily to protect domestic industries from foreign competition.

Answer: False

IMF provides short/medium term Balance of Payments support.

Answer: 1995

Established on Jan 1, 1995, replacing GATT.