Indian Economy Quiz

Planning and controlling are interrelated to each other. Planning sets the goals for the organization and controlling ensures their accomplishment. Planning decides the control process and controlling provides sound basis for planning. In reality planning and controlling are both dependent on each other.

Gresham's law is a monetary principle stating that “bad money drives out good.” It is primarily used for consideration and application in currency markets. when two coins are equal in face value but unequal in intrinsic value (cost of material), the one having less intrinsic value tends to remain in the market circulation, whereas the other disappears to be hoarded.

Bank rate is the rate charged by the central bank (RBI) for lending funds to commercial banks. Lower bank rates can help to expand the economy by lowering the cost of funds for borrowers, and higher bank rates help to reign in the economy when inflation is higher than desired.

Fiscal policy refers to the use of the government budget to affect the economy. This includes government spending and levied taxes. In deficit financing, a government spends more money than it receives as revenue, the difference being made up by borrowing or minting new funds.

Mahatma Gandhi first featured on currency notes in 1969. Mahatma Gandhi series of ₹100 notes has a picture of Indian Himalayan mountain ranges on its reverse which is of ecological and environmental significance.

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.

Petrol and car are complementary goods as when the price of petrol rises, the demand for car falls. Hence, cross elasticity of demand between petrol and car is negative.

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

Inflation can be controlled by a contractionary monetary policy is one common method of managing inflation. A contractionary policy aims to reduce the supply of money within an economy by lowering the prices of bonds, rising interest rates and rising tax rates.

The term 'Hindu rate of growth' was coined by Professor Rajkrishna, an Indian economist, in 1978 to describe the slow growth and to explain it against the backdrop of socialistic economic policies. Hindu growth rate is related to GDP.