It's main objective is to create a strong ecosystem — 59 India Economy PYQs with Answers | UKPSC PYQ Hub

Question 1

The 'Naya Paisa' which was popularized with the decimal system of currency became 'Paisa' on?

Accepted Answer

1st April, 1957. The 'Naya Paisa' which was popularized with 1st the decimal system of currency became 'Paisa' on April, 1957.

Question 2

'Tobin Tax' is levied on :

Accepted Answer

On foreign exchange transaction. Named after American economist and Nobel laureate James Tobin, the Tobin tax is levied on financial foreign exchange transactions and is aimed at curbing speculation and volatility. India already has a form of Tobin tax in place, called the Securities Transaction Tax (STT), introduced in 2004. It is levied on every transaction of securities listed on the stock exchanges and mutual funds.

Question 3

The rise in value of one currency relative to another is –

Accepted Answer

A weakening of a currency. An increase in the value of one currency is the weakening of the currency in comparison to another. The value of any currency is not absolute, it is always relative to another currency.

Question 4

Which of the following is correct?

Accepted Answer

Inflation benefits the debtors. Inflation is the rate of increase in prices over a given period of time. Due to inflation, bond holders gets less interest on their savings in bonds. Inflation allows borrowers to pay lenders back with money worth less than when it was originally borrowed, which benefits debtors. Due to inflation, prices of all the essential commodities increases, this affects people of fixed income.

Question 5

What kind of Tax System, is found in India ?

Accepted Answer

Digressive. Digressive tax system is found in India. Digressive tax is a mix of between the progressive tax and proportional tax. A digressive tax is partly progressive since tax rate increases as income increases, and partly proportional because tax rate remains unchanged even if income increases. Thus, this system of taxation combines elements of both progressive taxation and regressive taxation.

Question 6

Which of the following taxes are abolished by the Goods and Services Tax ?

Accepted Answer

Value Added Tax. The Goods and Services Tax (GST), which has replaced the Central and State indirect taxes such as VAT, excise duty and service tax was implemented on 1st July, 2017. As a taxation concept, VAT replaced Sales Tax. Value Added Tax (VAT) is an indirect value added tax, which was introduced into Indian taxation system on 1st April, 2005. A Value Added Tax (VAT) is a consumption tax levied on a commodity whenever it adds value at any point in the supply chain, from production to sale. The amount of VAT that the consumer pays is based on the cost of the product, minus any previously taxable costs of products used in the product.

Question 7

What is the share of states in the net receivables of Central Taxes on the basis of 13th recommendations of the fianance commission?

Accepted Answer

32%. finance commission was constituted by the President of India under chairmanship of Vijay. L. Kelkar on 13 November, 2007. Share of states in the net receivables of central taxes on the basis of recommendations of commission was 32%. Their were other recommendations also.

Question 8

In India the largest Commercial Bank is–

Accepted Answer

State Bank of India. State Bank of India is the largest commercial bank of India. State Bank of India (SBI) is an Indian public sector bank and financial services body. Its headquarter is in Mumbai. It was founded on 1 July, 1955.