Indian Economy Quiz 3

Treasury bills are short-term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 days, 182 days and 364 days. Treasury bills are zero-coupon securities and pay no interest.

During colonial period, British capital was mainly invested in Agriculture. This era saw the introduction and proliferation of many crops as cash crops such as Indigo, cotton, jute, tea, tobacco.

A trade bloc is a group of nations that has reached a set of special agreements regarding their economic relationships with each other.

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”.

Capital output ratio is the amount of capital needed to produce one unit of output.

The different instruments of quantitative credit control technique are Statutory Liquidity Ratio (SLR), Cash Reserve Ratio (CRR), the Bank Rate Policy, Selective Credit Control (SCC), Open Market Operations (OMOs), etc.

The term “labour-intensive” refers to a process or industry that requires a large amount of labour to produce its goods or services. The degree of labour intensity is typically measured in proportion.

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.

PDS is operated under the joint responsibility of the Central and the State/UT Governments. The Central Government, through Food Corporation of India (FCI), has assumed the responsibility for procurement, storage, transportation and bulk allocation of food grains to the State Governments.

The Centre earns money through several taxes, such as corporate tax, income tax, goods and services tax (GST), Union excise duty and customs duty. A part of the taxes is shared with state governments. Sales tax is charged at both the levels of Legislation, Central (Central Sales Tax) and State (states Sales Tax). Sales tax is not shared between the Union and the states.