Indian Economy Quiz 3

According to the Suresh Tendulkar Committee, the Below Poverty Line (BPL) number is now 38%. Suresh Tendulkar Committee was constituted in the year 2009.

The existence of Black money leads to the creation of a parallel economy. It makes the monetary policies less effective as the government cannot account properly for the money which is not formally included in the system.

A Cooperative Marketing Society does not deal with export promotion. It provides market finance to farmers and ensures better returns to their produce. Besides marketing, society can act as an agent of credit co-operative society and help to recover loans advanced by credit societies.

Companies issue stocks and bonds (securities) to the public to raise funds. A company decides to sell stock when it needs long-term access to capital.

A non-resident Indian is classified as an individual who has gone out of India, or who stays outside India for employment or for carrying on business or any vocation.

Free trade is a trade policy that does not restrict imports or exports. It can also be understood as the free market idea applied to international trade.

A country's national debt is all the money that the government of the country has borrowed and still owes. Premium collected in the form of different insurance policies does not contribute to any kind of debt.

RBI is required to maintain a Gold and Foreign Exchange Reserves of ₹200 Crore of which at least ₹115 Crore should be in Gold. This is called Minimum Reserve System.

The full form of IDBI is Industrial Development Bank of India. It was established in 1964 by an act to provide credit and other financial facilities for the development of the fledgling Indian industry.

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.