Indian Economy Quiz with Answers

The head office of India's Insurance Regulatory and Development Authority (IRDAI) is in Hyderabad. 

Insurance Regulatory and Development Authority of India (IRDAI): It was constituted by the recommendations of the Malhotra Committee report, in 1999. 

It is an autonomous body. 

It regulates and develops the insurance industry. 

The IRDA was incorporated as a statutory body in April 2000. Objective: Enhance customer satisfaction through increased consumer choice and lower premiums while ensuring the financial security of the insurance market. 

Today there are 34 general insurance companies and 24 life insurance companies operating in the country.

SEBI is the regulator of the securities market in India.

The SCRA (Securities Contracts Regulation Act) has empowered SEBI to recognise and regulate stock exchanges and later commodity exchanges in India; this was earlier done by the Union government.

The Securities and Exchange Board of India was constituted on 12th April 1988. It is the regulator of the securities and commodity market in India owned by the Government of India. It was given Statutory Powers on 30th January 1992 through the SEBI Act, 1992. SEBI has its headquarters at the business district of Bandra Kurla Complex in Mumbai and has Northern, Eastern, Southern, and Western Regional Offices in New Delhi, Kolkata, Chennai, and Ahmedabad respectively. Controller of Capital Issues was the regulatory authority before SEBI came into existence; it derived authority from the Capital Issues (Control) Act, 1947. The aim of SEBI is .to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto. Ms. Madhabi Puri Buch is the current Chairman of SEBI.

The first statement is generally true. Banks and financial institutions keep a certain percentage of their deposits as reserves to ensure that they have enough liquidity to meet their obligations. These reserves can be kept in the form of cash or financial instruments such as government securities, treasury bills, and other approved securities. 

The second statement is also true. Cash Reserve Ratio (CRR) is the percentage of deposits that commercial banks are required to maintain as reserves with the RBI. The purpose of CRR is to control the amount of money that banks can lend to borrowers. When the RBI increases the CRR, banks have less money available to lend, which can help to control inflation. Conversely, when the RBI decreases the CRR, banks have more money available to lend, which can stimulate economic growth.

Agriculture is the most important sector of Indian Economy. Indian agriculture sector accounts for 18 per cent of India's gross domestic product (GDP) and provides employment to 50% of the countries workforce.

Jobs that traditionally have a strong union presence such as many government jobs and jobs in education, healthcare and law enforcement are considered very secure while many non-unionized private sector jobs are generally believed to offer lower job security, although this varies by industry and country.

Since all firms in perfect competition sell identical products and face the same market price, the market demand curve is determined by horizontally summing the individual firm's demand curves. Therefore, the market demand curve coincides with the demand curve of a single firm in perfect competition.

The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations.

Excess capacity in simple terms is when a firm is producing below it's full production potential. So under perfect competition, all firms produce at minimum point where the long-run average cost curve, marginal revenue, average revenue and horizontal demand curve are tangent.

Industrial Policy – 1948. After having attained independence, the Government of India declared its first Industrial Policy on 6th April, 1948. The Industrial Policy 1948 was presented in the parliament by then Industry Minister Dr. Shyama Prasad Mukherjee.