Indian Economy Quiz

Overdraft is a financial instrument in which the money can be withdrawn from the current or savings account, even if the account balance goes below zero.

Cheap money is money that can be borrowed with a very low interest rate or price for borrowing.

When the quantity of supply of goods matches the demand for goods, it is called the equilibrium price.

Jawahar Rozgar Yojna was launched on 1 April 1989 by merging National Rural Employment Program (NREP) and Rural Landless Employment Guarantee Program.

The system of issuing and monitoring of money in the market is known as minimum reserve ratio. Minimum reserves allow credit institutions to smooth out fluctuations in liquidity such as those caused by the demand for banknotes.

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.

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.

Special drawing rights (SDRs) are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF). SDRs are units of account for the IMF, and not a currency per se. They represent a claim to currency held by IMF member countries for which they may be exchanged.

A mixed economy combines the characteristics of capitalism and socialism. Essentially, a country with this kind of economy comprises public and private sectors, wherein private enterprises aim for profit maximisation, while the Government sector works towards the welfare of the citizens.

The basic approach was the development of high-yielding varieties of cereal grains, expansion of irrigation infrastructure, modernization of management techniques, distribution of hybridized seeds, synthetic fertilizers, and pesticides to farmers.