Indian Economy Quiz 4

The process of curing inflation by reducing money supply is called Disinflation. Disinflation is a temporary slowing of the pace of price inflation and is used to describe instances when the inflation rate has reduced marginally over the short term.

IFCI is not a credit rating agency. It is a development finance institution under the Ministry of Finance, Government of India. CARE has established itself as one of the leading credit rating agencies in India. CRISIL is an Indian analytical company providing ratings, research, and risk. It is a subsidiary of American company S&P Global. ICRA is an Indian independent and professional investment information and credit rating agency.

A prime cost is the total direct costs of production, including raw materials and labour. Indirect costs, such as utilities, manager salaries, and delivery costs, are not included in prime costs. The prime cost equation is equal to the cost of raw materials plus direct labour. All the prime costs are variable costs and they are directly attributable. They do not include indirect variable costs and any fixed costs.

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.

objectives of the Industrial Licensing Policy in India were to establishment, expansion and ownership of private industries according to priorities of five-year plans and to check the monopoly tendency in industries. It also had the objective of balanced industrial development across regions.

Higher interest rates mean higher borrowing costs, people will eventually start spending less and get better returns on their savings. The demand for goods and services will then drop, which will cause inflation to fall.

Ceteris paribus is a Latin phrase that generally means “all other things being equal.” In economics, it acts as a shorthand indication of the effect one economic variable has on another, provided all other variables remain the same.

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.

Social Overhead Capital (SOC) is the basic facilities and services needed for the communities and societies. The SOC term can be used as the economic overhead facilities and Basic infrastructure facilities.

It is called Operations Research (OR). OR is an analytical method of problem-solving and decision-making that is useful in the management of organizations.