Indian Economy Quiz 3

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.

Cheap money is money that can be borrowed with a very low interest rate or price for borrowing.

Brain drain is defined as the movement of highly skilled and educated people to a country where they can work in better conditions and earn more money.

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.

Bank rate (discount rate) is the rate of interest which a Central Bank of Country charges on its loans and advances to the commercial banks.

The balance of trade is the difference between the monetary value of a nation's exports and imports over a certain time period.

The United Kingdom, under Margaret Thatcher started privisation of state-owned enterprises as a major state policy. The Ridley report devised for the Thatcher shadow cabinet, recommended a policy of breaking up the public sector and dismembering unions.

The Planning Commission, agency of the government of India established in 1950 to oversee the country's economic and social development, chiefly through the formulation of five-year plans.

The fourth Five-Year Plan was from 1969 to 1974. It targeted achieving self-reliance through progressive movement and achieving stable growth. During the implementation of this plan, then Prime Minister Indira Gandhi called the slogan 'GARIBI HATAO'.

The national income of a country is total productive income. It can be defined as the total market value of all final goods and services produced in the economy in a year.