Indian Economy Quiz 2

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.

Depository services are services in which the securities of investors are kept in an electronic form just as bank keeps all your cash in its account and provides all services related to the transaction of cash, similarly, we help you out in performing the service through a demat account.

Antyodaya Anna Yojana (AAY) is the sponsored scheme of Government of India to provide highly subsidised food to millions of the poorest families. The scheme was implemented in 2000. AAY scheme covers the poorest of the poor by supply of food and other important commodities for their daily needs.

Inflation is a measure of the rate of rising prices of goods and services in an economy. Increasing the money supply faster than the growth in real output will cause inflation. The reason is that there is more money chasing the same number of goods.

The Reserve Bank of India (RBI) is vested with the responsibility of conducting monetary policy. This responsibility is explicitly mandated under the Reserve Bank of India Act, 1934.

Non-Plan Expenditure is money that's spent on sustaining the country like defence, postal deficit, subsidies, etc. and Plan Expenditure is the money that is spent on improving the country like the money spent on dams, roads, etc. The biggest items of Non-Plan Expenditure are interest payments and debt servicing, defence expenditure and subsidies.

Green Banking is any form of banking from which the country gets environmental benefits. A conventional bank becomes a green bank by directing its core operations towards the betterment of the environment.

The statement is taken from Keyne's Investment Demand Function. According to Keynes Investment expenditure refers to the creation of new assets i.e. an addition to the stock of existing capital assets.

Printing of currency notes in India is done on the basis of Minimum Reserve System (MRS). This system is applicable in India since 1956. Under the MRS, the RBI has to keep a minimum reserve of ₹200 crore comprising of gold coin and gold bullion and foreign currencies. Out of the total ₹200 crores, ₹115 crore should be in the form of gold coins or gold bullion and the rest in the form of foreign currencies.

Non-plan expenditure is what the government spends on the so-called non-productive areas, such as salaries, subsidies, loans and interest, while plan expenditure pertains to the money to be set aside for productive purposes, like various projects of ministries.