Economy & Tax — Set 3
Abbreviations · अर्थव्यवस्था और कर · Questions 21–30 of 50
What is the full form of 'MAT' in corporate taxation?
Correct Answer: C. Minimum Alternate Tax
MAT stands for Minimum Alternate Tax which was introduced to ensure that companies paying zero tax through various deductions still pay a minimum amount to the government. It is calculated as a percentage of the book profit of the company. MAT helps in preventing companies from avoiding tax completely.
What does 'CPI' stand for in economic statistics?
Correct Answer: A. Consumer Price Index
CPI stands for Consumer Price Index which measures changes in the price level of a weighted average market basket of consumer goods and services. It is used to calculate the cost of living and identify periods of inflation or deflation. It is a major economic indicator for policymaking.
What is the full form of 'CSR' in the corporate world?
Correct Answer: D. Corporate Social Responsibility
CSR stands for Corporate Social Responsibility which refers to a business model that helps a company be socially accountable to itself, its stakeholders, and the public. In India, certain large companies are legally required to spend a percentage of their profits on social causes. It encourages businesses to contribute to sustainable development.
What does 'NSC' stand for in the context of Indian small savings?
Correct Answer: B. National Savings Certificate
NSC stands for National Savings Certificate which is a fixed-income post office savings scheme. It is a safe investment option that also provides tax benefits under Section 80C. it is popular among small investors seeking guaranteed returns.
In economics, what does 'LPG' represent regarding policy shifts?
Correct Answer: C. Liberalization, Privatization, and Globalization
LPG stands for Liberalization, Privatization, and Globalization which were the key pillars of India's New Economic Policy of 1991. This policy aimed to modernize the Indian economy by reducing state intervention and opening it to foreign trade. It led to a significant increase in the country's economic growth rate.
What is the full form of 'EXIM' Bank?
Correct Answer: A. Export-Import Bank
EXIM Bank stands for Export-Import Bank of India. It is a premier financial institution in India that coordinates the working of institutions engaged in financing export and import trade. It was established in 1982 to promote international trade.
What does 'DTC' stand for in the context of proposed tax reforms in India?
Correct Answer: B. Direct Taxes Code
DTC stands for Direct Taxes Code which was proposed to replace the Income Tax Act of 1961. The aim was to simplify the direct tax laws and increase the tax-to-GDP ratio. While not fully implemented in its original form, its principles have influenced various amendments.
What does 'EBITDA' stand for in financial analysis?
Correct Answer: D. Earnings Before Interest, Taxes, Depreciation, and Amortization
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's overall financial performance and is used as an alternative to simple earnings or net income. It allows for a comparison of profitability between companies with different capital structures.
What is the full form of 'PDS' in the Indian food security system?
Correct Answer: A. Public Distribution System
PDS stands for Public Distribution System which is a government-managed system for distributing food grains and other essential commodities at subsidized prices to the poor. It plays a vital role in ensuring food security and nutrition. In 1997, it was revamped as the Targeted Public Distribution System (TPDS).
What does 'GVA' stand for in national income statistics?
Correct Answer: C. Gross Value Added
GVA stands for Gross Value Added which measures the value of goods and services produced in an area, industry, or sector of an economy. It is essentially GDP minus taxes on products and plus subsidies on products. GVA provides a more detailed picture of the performance of different sectors.