Indian Economy Quiz 3

Bank deposits that can be withdrawn without notice are called demand deposits. A demand deposit account (DDA) is a bank account from which deposited funds can be withdrawn at any time, without advance notice.

In economics, the demand for inferior goods decreases as income increases or the economy improves. When this happens, consumers will be more willing to spend on more costly substitutes. Some of the reasons behind this shift may include quality or a change to a consumer's socio-economic status.

Alternative cost is otherwise known as Opportunity cost. Opportunity cost is the profit lost when one alternative is selected over another. The concept is useful simply as a reminder to examine all reasonable alternatives before making a decision.

Marginal product refers to the extra output, return, or profit yielded per unit by advantages from production inputs. When Total Product rises at an increasing rate, marginal product also rises. When Total Product increases at a diminishing rate, marginal product declines.

Once a crop is seeded, for example, farmers have limited ability to alter the quantities they put on the market. Therefore, in the short-term, market supply is relatively inelastic or unresponsive. Demand for most farm products is inelastic. People can consume only so much then they are satiated. Even if price drops they will not buy much more.

J.B. Say propounded the market law. Say's Law of Markets is theory from classical economics arguing that the ability to purchase something depends on the ability to produce and thereby generate income. Say reasoned that to have the means to buy, a buyer must first have produced something to sell.

When too much money is chasing too few goods, the situation is Demand-Pull Inflation. It is caused by the overall increase in demand for goods and services, which bids up their prices. This theory can be summarized as “too much money chasing too few goods”.

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.

India Brand Equity Foundation (IBEF) is a Trust established by the Department of Commerce, Ministry of Commerce and Industry, Government of India in 2003 with the objective of promoting and creating international awareness of the Made in India label in markets overseas and to facilitate dissemination of knowledge of Indian products and services.

The monetary policy states the use of financial instruments under the control of the Reserve Bank of India (RBI) to standardise magnitudes such as availability of credit, interest rates, and money supply to achieve the ultimate objective of economic policy mentioned in the Reserve Bank of India Act, 1934. Social justice is not an aim of the monetary policy of RBI.