Indian Economy Quiz 3

Using Defence Strategies a seller or buyer protects his business or holdings from changing prices and takes action against it.

A budgetary deficit is referred to as the situation in which the spending is more than the income. budgetary deficit is met by the net addition of the treasury bills issued by the RBI and drawing down of cash balances kept with the RBI. So when it is estimated, drawing down of cash balances is excluded.

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.

Purchasing power parity (PPP) is a theory which states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.

Revaluation is an official rise of the value of the currency in relation to a foreign currency in a fixed exchange rate system. Revaluation is the opposite of devaluation, which is a downward adjustment of a country's official exchange rate.

The law of demand states that other factors remain constant, price and quantity demand of any good and service are inversely related to each other. When the price of a product increases, the demand for the same product will fall.

In economics, hot currency is the flow of funds from one country to another in order to earn a short-term profit on interest rate differences and/or anticipated exchange rate shifts.

In the post-independence period, economic reforms were first introduced in India under P.V. Narasimha Rao Government in 1991.

Special drawing rights (SDR) are known as paper gold. SDR 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.

Population growth rate is affected by birth rates, death rates, immigration, and emigration. A high growth rate of population is characterised by high birth and low death rates.