Static Quiz 09 March 2024 (Indian Economy)

Consider the following statements about taxation :
1. A proportional taxation system is meaningful when there is minimal income inequality among the
tax base.
2. A progressive taxation system can be beneficial to the low-income segment when there is significant
income inequality among the tax base.
3. Taxes that are applied to the value of transactions are considered proportional taxes, as high and
low-income segments pay the same amount of tax.
Which of the above statements are correct ?

Which of the following statements regarding currency management in India as per the provisions of
the RBI Act, 1934 is not correct?

If there is an excessive appreciation of the domestic currency, which of the following is a potential
outcome in an economy ?

Consider the following statements about India’s foreign exchange reserves :
1. India’s foreign exchange reserves are expressed in US dollar terms but are affected by valuation
changes of other currencies like the Euro, Pound and Yen.
2. India’s foreign exchange reserves are second only to China’s.
Which of the above statements is/are correct ?

Consider the following statements in the context of the Indian economy :
1. Gross Fixed Capital Formation is lower than Private Final Consumption Expenditure.
2. Per capita Gross National Product is always higher than per capita Gross Domestic Product.
Which of the statements given above is/are correct ?