The 'government route' for FDI requires: MCQ with Answer and Explanation

The 'government route' for FDI requires:
A. only SEBI approval
B. no approval
C. only RBI approval
D. prior approval from the government
Answer: Option D
Solution (By JKSSB Mock Tests)
Government route requires prior approval from the concerned government ministry.

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Practice More Economy Set 1 Questions

Question #1
The 'Reverse Charge Mechanism' under GST shifts the tax liability to:
A. government
B. recipient
C. supplier
D. GST council

Correct Answer: Option B


Explanation:
Under reverse charge, the recipient of goods or services pays the tax.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a feature of the 'Debt-Deflation' theory associated with Irving Fisher?
A. Debt is irrelevant for the business cycle
B. Only inflation causes debt problems
C. Falling prices raise the real value of debt, leading to further declines in spending and prices
D. Deflation always reduces the real burden of debt

Correct Answer: Option C


Explanation:
Fisher’s debt-deflation theory argues that an initial decline in prices increases the real burden of nominal debt, forcing distressed selling and further price declines in a downward spiral.

This question belongs to: Economy GK Economy Set 1
Question #3
The concept of 'Human Capital' in growth theory refers to:
A. Only physical capital
B. Only financial assets
C. Only natural resources
D. The stock of skills, knowledge and health embodied in the labour force

Correct Answer: Option D


Explanation:
Human capital comprises the knowledge, skills, health and other attributes of individuals that affect their productivity and are accumulated through education, training and health expenditure.

This question belongs to: Economy GK Economy Set 1