Indian Economy Quiz 4

Statutory Liquidity Ratio (SLR) is a minimum percentage of deposits that a commercial bank has to maintain in the form of liquid cash, gold or other securities (or any bond). It is basically the reserve requirement that banks are expected to keep before offering credit to customers.

Mahatma Gandhi developed the idea that “means justify the ends”. For Gandhi, the end is satya or truth which requires no justification and the means- ahimsa or non-violence must be justified not only with reference to the end but also in itself. Every act must be justified with reference to satya and ahimsa.

Goods and Services Tax (GST) is an indirect tax used in India on the supply of goods and services. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes.

Special drawing rights (SDRs) 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.

Fiscal policy refers to the use of the government budget to affect the economy. This includes government spending and levied taxes. In deficit financing, a government spends more money than it receives as revenue, the difference being made up by borrowing or minting new funds.

The Reserve Bank of India (RBI) is vested with the responsibility of conducting monetary policy. This responsibility is explicitly mandated under the Reserve Bank of India Act, 1934.

Bull and bear are related to the Stock market. The share broker who sells shares in the apprehension of falling prices of shares is called Bear. A 'bull' by definition is an investor who buys shares because they believe the market is going to rise; whereas a 'bear' will sell shares as they believe the market is going to turn negative.

The Damodar Valley Corporation is the first Public Sector Corporation of independent India. The Corporation came into existence on 7th July, 1948 as the first multipurpose river valley project of independent India. It is an Indian governmental organization which operates in the Damodar River area of West Bengal and Jharkhand states of India.

Quasi-rent is the surplus which is received in a short period because of demand exceeding the supply by the man-made factors besides land.

An Open Market Operation (OMO) is the buying and selling of government bonds and securities in the open market by the RBI in India.