Business and Economy MCQ Quiz - Objective Question with Answer for Business and Economy - Download Free PDF

The Correct Answer is National Payments Corporation of India (NPCI).

In News

• NPCI introduces real time PAN-Bank Account linking on income tax website; taxpayers may get faster income tax refunds.

Key Points

• The National Payments Corporation of India (NPCI) has launched a new facility to validate PAN and Bank Account details on the Income Tax e-filing website.

• This will allow quick PAN-Bank account linking validation for taxpayers.

• A new PAN and Bank Account Validation API has been developed by NPCI for government departments.

• It enables real-time verification of taxpayer details from the banks’ Core Banking Systems (CBS).

• The objective is to ensure:

  • Faster and error-free processing of income tax refunds and direct benefit transfers (DBT).

  • Reduced fraud risks and increased transparency.

• Banks have been advised to prioritize its implementation for the Government of India.

The correct answer is State Bank of India

In News

The correct answer is To enhance the experience of foreign investors in the Indian securities market.

In News

• Sebi has launched a dedicated Foreign Portfolio Investor (FPI) outreach cell to simplify and enhance the experience of foreign investors in the Indian securities market.

Key Points

• The outreach cell will assist FPIs with documentation, compliance, and operational challenges, aiming to simplify the registration process.
• It operates under Sebi's Alternative Investment Fund and Foreign Portfolio Investors Department (AFD).
• The initiative is part of Sebi's commitment to attracting more foreign capital and strengthening market integrity in India.
• By providing targeted support, the outreach cell aims to facilitate quicker and more efficient onboarding of FPIs into the Indian market.

Additional Information

• Foreign Portfolio Investors (FPIs)
  • FPIs are entities that invest in financial assets such as stocks and bonds in a country other than their own, contributing to the liquidity and efficiency of financial markets.
• Sebi's Role
  • The Securities and Exchange Board of India (Sebi) regulates the securities market in India, ensuring investor protection and promoting the development of the market.

The correct answer is ₹5,000.

In News

• The Reserve Bank of India (RBI) has proposed to increase the UPI wallet limit to ₹5,000 from the current limit of ₹2,000.

Key Points

• The transaction limit for UPI Lite is also proposed to increase from ₹500 to ₹1,000.
• UPI 123 Pay’s limit has increased from ₹5,000 to ₹10,000 and is available in 12 languages.
• NEFT and RTGS will now include beneficiary name verification, reducing fraud risks.
• These updates enhance the security and flexibility of digital payment systems.

Additional Information

• UPI Lite
  • UPI Lite is a simplified version of the UPI payment system, allowing users to make smaller transactions without requiring internet connectivity.
  • The proposed increase in the UPI Lite transaction limit to ₹1,000 is aimed at making the platform more versatile for everyday usage.
• UPI 123 Pay
  • UPI 123 Pay is a feature introduced to facilitate UPI payments on feature phones, making digital payments more accessible to people without smartphones.
  • With its limit increased to ₹10,000, UPI 123 Pay is expected to drive greater financial inclusion.

The correct answer is Rs 10,000..

Key Points

• The RBI has increased the transaction limit for UPI 123Pay from Rs 5,000 to Rs 10,000.
• This increase enables higher-value digital payments for feature phone users without internet access.
• New features introduced include Aadhaar OTP for authentication and a purpose code for better transaction tracking.
• The service uses methods like IVR, missed calls, and sound technology to ensure secure transactions for users with feature phones.

Additional Information

• UPI 123Pay allows feature phone users to perform UPI transactions without needing an internet connection, making it a crucial service for digital financial inclusion.
• The purpose code for transactions helps in categorizing and tracking payments for better transparency and record-keeping.
• Increased transaction limits are part of RBI’s efforts to expand digital payment options and drive financial inclusion across India.

The correct answer is 974 crore.

Key Points

• The central government has allocated Rs 3062.60 crore for the financial year 2022-23, an increase of Rs 305.58 crore.
• In the previous financial year, the government had allocated Rs 2596.14 crore for sports, which was later revised to Rs 2757.02 crore. 
• The financial allocation towards the Khelo India programme, which got Rs 657.71 crore in the last budget, was increased to Rs 974 crore.

Additional Information

• On 01 February 2022, Union Finance Minister Nirmala Sitharaman announced that the government will launch the next phase of Ease of Doing Business.
• It will be known as 'Ease of Doing Business 2.0'.
• The new phase would be guided by the active involvement of the states, digitization of manual processes, and interventions.
• It will also have the integration of the central and the state-level systems through IT bridges.
• It will provide single-point access for all citizen-centric services, and standardization and removal of overlapping compliances.

The correct answer is the National Payments Corporation of India.

• ​​Taking the first step towards having a digital currency in the country, PM Modi will launch an electronic voucher-based digital payment system “e-RUPI”.
• The platform, which has been developed by the National Payments Corporation of India (NPCI), Department of Financial Services, Ministry of Health and Family Welfare and the National Health Authority, will be a person-specific and purpose-specific payments system

Key Points

• e-RUPI:
  • e-RUPI is a cashless and contactless digital payments medium, which will be delivered to the mobile phones of beneficiaries in form of an SMS string or a QR code. 
  • This will essentially be like a prepaid gift voucher that will be redeemable at specific accepting centres without any credit or debit card, a mobile app or internet banking. 
  • e-RUPI will connect the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface.

Important Points

• significance of e-RUPI
  • The government is already working on developing a central bank digital currency and the launch of e-RUPI could potentially highlight the gaps in digital payments infrastructure that will be necessary for the success of the future digital currency. 
  • In effect, e-RUPI is still backed by the existing Indian rupee as the underlying asset and the specificity of its purpose makes it different to a virtual currency and puts it closer to a voucher-based payment system.
  • Also, the ubiquitousness of e-RUPI in the future will depend on the end-use cases.
  • On the other hand, central bank digital currency or CBDC — digital currencies issued by a central bank that generally take on a digital form of the nation’s existing fiat currency

The correct answer is Vijaya Bank and Dena Bank.

Key Points 

• Bank of Baroda became the third largest bank after the amalgamation.
• State Bank of India (SBI) and ICICI Bank are the largest banks in India.
• The government of India proposed the merger of Dena Bank and Vijaya Bank with the Bank of Baroda on 17th September 2018.
• Branches of Vijaya Bank and Dena Bank will function as Bank of Baroda after the amalgamation.
• It was the first-ever three-way consolidation of banks in India.
• The Government of India nationalized the Bank of Baroda on 19 July 1969.
• The headquarters of the Bank of Baroda is located at Vadodara in Gujarat.

Additional Information

• Syndicate bank merged with Canara Bank In 2019.
• Allahabad Bank merged with Indian bank In 2019.
•  Andhra Bank and Corporation Bank merged with Union Bank of India in 2019.

The correct answer is  PM's Development Initiative for North-East (PM-DevINE).

Key Points

• A new scheme, Prime Minister's Development Initiative for North-East, PM-DevINE has been announced by the Union Finance Minister Nirmala Sitharaman while presenting the Union Budget 2022-23 on 01 February 2022.
• The PM-DevINE will be implemented through the North-Eastern Council.
• An initial allocation of Rs 1,500 crore will be made for the new scheme.
• It will fund infrastructure, in the spirit of PM GatiShakti, and social development projects based on felt needs of the North-East

• Amazon became the second to hit $900 billion market capitalisation after Apple.
• Amazon is an e-Commerce company based in Seattle in the United State of America.
• Its founder Jeff Bezos is the richest person on the earth.

The correct answer is Ease of Doing Business.

Key Points

• On 01 February 2022, Union Finance Minister Nirmala Sitharaman announced that the government will launch the next phase of Ease of Doing Business.
• It will be known as 'Ease of Doing Business 2.0'.
• The new phase would be guided by the active involvement of the states, digitization of manual processes, and interventions.
• It will also have the integration of the central and the state-level systems through IT bridges.
• It will provide single-point access for all citizen-centric services, and standardization and removal of overlapping compliances.

The correct answer is Digital Sansad App.

Key Points

• The Parliament has launched a new app, Digital Sansad, that will make it easier for people to follow proceedings in Parliament, and also their own lawmakers.
• In addition, it will also help members of parliament access services such as checking personal updates.
• In the future, the MPs can log in for attendance, give questions for the Question Hour, or submit notices for debates.

The correct answer is option 4.

In News

• PIB News: President of India presents the National Panchayat Awards and inaugurates the National Conference on Incentivization of Panchayats.

Key PointsGS NIRNAY mobile app:

• The GS NIRNAY, National Initiative for Rural India to Navigate, InnovAte and Resolve PanchaYat decisions, a mobile application of the Ministry of Panchayati Raj. Hence option 4 is correct.
• It is aimed at empowering rural communities during the National Conference.
• It enables easy access to critical information discussed during a Gram Sabha; acting as a means of verification of facts where necessary or in case of queries that may arise regarding the resolutions undertaken during the Gram Sabha.
• This would bring in more transparency and increase efficiency in the functioning of Panchayats, which play a vital role in decentralized participatory democracy.

The correct answer is India.

Key Points

• India has the highest number of bank branches in the world.
• India is leading in the list prepared by the number of bank branches in the world based on an IMF report published in 2015.
• India has more than 1.2 lakh bank branches.
• China has the second-largest number of bank branches in the world with over 95,680 bank branches.
• Colombia stood in the third position on the list with over 94,074 bank branches.
• RBI data published in 2016 shows that India now has over 1.3 lakh bank branches.
• There only 13.54 bank branches per 1 lakh adults in India while compared to its population size.

Additional Information

• The Bank of Hindustan is the first bank in India.
• Punjab National Bank is the first complete indigenous bank in India.
• City Union Bank is the first private bank in India.

The correct answer is the International Monetary Fund.

Key Points

Rapid Financing Instrument (RFI) :

• It provides rapid financial assistance, which is available to all member countries facing an urgent balance of payments need.
• It was created as part of a broader reform to make the IMF’s financial support more flexible to address the diverse needs of member countries.
• It replaced the IMF’s previous emergency assistance policy and can be used in a wide range of circumstances.

Rapid Credit Facility (RCF) :

• It provides rapid concessional financial assistance to low-income countries (LICs) facing an urgent balance of payments (BoP) need with no ex-post conditionality where a full-fledged economic program is neither necessary nor feasible.
• It was created under the Poverty Reduction and Growth Trust (PRGT) as part of a broader reform to make the Fund’s financial support more flexible and better tailored to the diverse needs of LICs, including in times of crisis.

There are three windows under RCF:

• A regular window for urgent BoP needs to be caused by a wide range of sources including domestic instability, emergencies and fragility;
• An exogenous shock window for urgent BoP needs to be caused by a sudden, exogenous shock; and
• A large natural disaster window for urgent BoP needs arising from natural disasters where damage is assessed to be equivalent to or exceeding 20 percent of the member’s GDP.
• Access under the RCF is subject to annual and cumulative limits, with higher access limits applying for the large natural disaster window.
• For non-PRGT eligible countries, a similar Rapid Financing Instrument (RFI) is available for higher-income countries.Hence, Option 2 is correct.

Additional Information

• International Monetary Fund (IMF):
  • The formation of the IMF was initiated in 1944 at the Bretton Woods Conference.
  • IMF came into operation on 27th December 1945 and is today an international organization that consists of 190 member countries.
  • Headquartered in Washington, D.C., IMF focuses on fostering global monetary cooperation, securing financial stability, and facilitating and promoting international trade, employment, and economic growth around the world.
  • The IMF is a specialized agency of the United Nations.