QUIZ – 2020: INSIGHTS STATIC QUIZ, 06 January 2020 – Economy

Solution: b)

Dividend distribution tax is the tax imposed by the Indian Government on Indian companies according to the dividend paid to a company’s investors.

Dividend distribution tax is also applicable on mutual funds.

DDT is payable separately, over and above the income tax liability of a Company.

Solution: c)

The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS states (Brazil, Russia, India, China and South Africa).

“The Bank shall support public or private projects through loans, guarantees, equity participation and other financial instruments.” Moreover, the NDB “shall cooperate with international organizations and other financial entities, and provide technical assistance for projects to be supported by the Bank.”

The authorized capital for NDB is $100 Billion while initial subscribed capital is $50 billion. Initial subscribed capital was equally distributed among the founding members {$10 billion each}. Voting power of each member is equal to the number of its subscribed shares in capital stock.

Solution: c)

The WPI and the CPI baskets are different, both at the weightage assigned to food, fuel and manufactured items as well as at the broken-down level of these segments. The weight of food in CPI is higher than in WPI.

The WPI inflation does not capture price changes of services but the CPI does.

WPI inflation is released by Office of the Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (DPIIT).

CPI for Industrial workers CPI(IW), CPI for Rural Labourers (RL) and CPI for Agricultural Labourers CPI(AL) are compiled by Labour Bureau.

CPI(Urban), CPI(Rural) and CPI Combined are compiled by Central Statistical Organisation (CSO).

Solution: a)

Third Five Year Plan was based on Gadgil Yojna.

Solution: c)

The external debt of India is the total debt the country owes to foreign creditors. The debtors can be the Union government, state governments, corporations or citizens of India. The debt includes money owed to private commercial banks, foreign governments, or international financial institutions such as the International Monetary Fund (IMF) and World Bank.

Long-term borrowings (more than a year to maturity) dominate India’s external debt.

India’s external debt is held in multiple currencies, the largest of which is the United States dollar. The rest of the debt is held in Indian rupees, special drawing rights, Japanese yen, Euros and other currencies.