Indian Economy Mixed Practice — MCQs with Answers (Set 6)

The group of six leaders who first met in 1975 became the G7 once Canada joined in 1976. Russia later joined in 1997, briefly making it the G8, before the group returned to G7 in 2014.

A bound tariff is the WTO ceiling a member has committed to for a product. The applied tariff, what it actually charges today, can sit below that ceiling, giving the country policy room called ‘tariff water.’

Devaluation is a deliberate official cut in a currency’s fixed value. Depreciation is a market-driven fall in value under a floating regime — today’s rupee depreciates, it is not devalued.

Under LERMS, 40% of foreign exchange earnings were converted at the official rate, and 60% at the market-determined rate.

India follows a managed float since 1 March 1993 — mostly market-determined, with the RBI intervening only to smooth sharp swings.

MoSPI released the new CPI series with base year 2024=100 on 12 February 2026, based on the HCES 2023-24 survey, replacing the old 2012=100 series.

The MPC targets CPI inflation, since it reflects what retail buyers actually experience, unlike WPI which tracks wholesale/producer prices.

While the short-term impact included a GDP growth dip, the clearest lasting legacy was a sustained shift toward digital payments, especially UPI.

The RBI found that 99.3% of the banned notes’ value returned to banks, far higher than the government had expected.

PM Modi announced demonetisation on the evening of 8 November 2016, effective midnight the same day.

PLI pays a cash incentive tied to incremental manufacturing output above a baseline — not for merely registering.

The five pillars are Economy, Infrastructure, System, Demography, and Demand. “Federalism” is not one of them.

PM Modi announced the Atmanirbhar Bharat Abhiyan on 12 May 2020, during India’s early COVID-19 economic response.

The Urjit Patel Committee (2013) recommended a committee-based approach to setting interest rates with a public inflation target, which Parliament enacted via the Finance Act, 2016.

The government retained the 4% CPI inflation target with a 2%-6% tolerance band for the 2026-2031 cycle, unchanged since the framework began in 2016.

The MPC has six members: three from the RBI (including the Governor, who chairs it) and three external members named by the government.

The escape clause, added in the 2018 amendment, caps the extra allowed borrowing at 0.5% of GDP, triggered only by specific conditions like war or a national calamity.

The 2018 amendment, based on the N.K. Singh Committee’s recommendation, made the debt-to-GDP ratio the primary fiscal anchor, dropping the separate revenue-deficit target.

Fewer than 1,000 businesses enrolled in the EMI Scheme by September 2026, despite the real cash-flow benefit — prompting CBIC to slash paperwork from 10 documents to 3. (51 lakh is EPFO’s new wage-ceiling coverage figure; 5,947 is India’s total AEO-entity count; 6,090 is Bharat Tex 2026’s international-buyer count — all real numbers, but from OTHER schemes.)

The WCO’s SAFE Framework, adopted in 2005, has three pillars. AEO status flows from Pillar 2, Customs-to-Business, built on trust between Customs and traders.

AEO-T1/T2/T3 cover importers and exporters, with T3 the highest tier. AEO-LO is the separate category for everyone else in the supply chain: brokers, custodians, and terminal operators.

The “10 years” refers to the CURRENT framework, introduced via Circular 33/2016-Customs (22 July 2016) — not the AEO Programme’s actual 2011 origin, a common exam trap.

AEO status certifies compliant businesses so Customs can clear their shipments faster, with less inspection. It has nothing to do with GST registration or forex regulation.

In 1998, Dhirubhai Ambani became the first Indian to receive the Wharton School’s Dean’s Medal. He was later posthumously awarded the Padma Vibhushan in January 2016, nearly two decades afterward — a useful date-trap to keep the two honours separate.

In the June 2005 split, Mukesh Ambani kept Reliance Industries and its petrochemicals businesses, later expanding into telecom and AI infrastructure. Anil Ambani took the group’s telecom, energy, and financial-services businesses instead — the reverse of a common exam-trap pairing.