Indian Economy Quiz 4

Controlling government spending is not a function of the central bank (RBI in India). In a parliamentary democracy, the political executive is responsible to the Parliament. The control exercised by the Parliament over the executive is its control on financial expenditure.

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.

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.

Eco mark is a certification mark issued by the Bureau of Indian Standards to products conforming to a set of standards aimed at the least impact on the ecosystem. The marking scheme was started in 1991.

Net investment is the total amount of money that a company spends on capital assets, minus wear and tear (cost of the depreciation) of those assets.

Interest rates are determined by RBI who actively commit to maintaining a target interest rate. They do so by intervening directly in the open market through open market operations (OMO), buying or selling Treasury securities to influence short-term rates.

When the price of a commodity falls, we can expect the demand for it to increase. The law of demand states that the quantity purchased varies inversely with price.

Private income is either any type of income received by a private individual or household, often derived from occupational activities, or income of an individual that is not in the form of a salary, wage, or commission (e.g. income from investments or renting land or other property).

Scheduled Banks in India refer to those banks which have been included in the Second Schedule of Reserve Bank of India Act, 1934. Reserve Bank of India in turn includes only those banks in this Schedule which satisfy the criteria laid down vide section 42 of the said Act.

When the countries of the South or developing countries cooperate in various fields, it is known as South-South Cooperation or Dialogue. Thus, the term South-South Cooperation means the process of cooperation among the developing countries in the economic field and other areas.