Indian Economy and Finance Mock Test

Taxes imposed by the state government are; Sales Tax and VAT, Professional Tax, Luxury Tax, Entertainment Tax, House tax, Motor Vehicles Tax, Tax on Vehicles Entering State, Tax on Agricultural Income, Tax on Land and Buildings and Tax on Mineral Rights.

State Government transactions are carried out by RBI in terms of the agreement entered into with the State Governments in terms of section 21 A of the Act. As of now, such agreements exist between RBI and all the State Governments except the Government of Sikkim.

Depository services are services in which the securities of investors are kept in an electronic form just as bank keeps all your cash in its account and provides all services related to the transaction of cash, similarly, we help you out in performing the service through a demat account.

The Damodar Valley Corporation is the first Public Sector Corporation of independent India. The Corporation came into existence on 7th July, 1948 as the first multipurpose river valley project of independent India. It is an Indian governmental organization which operates in the Damodar River area of West Bengal and Jharkhand states of India.

Balance of trade is the difference between the value of a country's exports and the value of its imports. A favourable balance of trade means an excess of commodity exports over commodity imports. An unfavourable balance of trade is used to mean an excess of commodity imports over commodity exports.

Book building is the process by which an underwriter attempts to determine the price at which an initial public offering (IPO) will be offered.

Opportunity cost is the value of the next best alternative forgone as a result of making a decision. When economists refer to the “opportunity cost” of a resource, they mean the value of the next-highest-valued alternative use of that resource.

Export diversification refers to the move from “traditional” to “non-traditional” exports. Diversification helps countries to hedge against adverse terms of trade shocks by stabilizing export revenues.

Efficient allocation of resources is achieved to greatest extent under Perfect competition. Efficient allocation of resources is a property of an efficient market whereby all goods and services are optimally distributed among buyers in an economy. It occurs when parties are able to use the accurate and readily available data reflected in the market to make decisions about how to utilize their resources.

Quasi-rent is the surplus which is received in a short period because of demand exceeding the supply by the man-made factors besides land.