Indian Economy Quiz 4

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.

A golden handshake is a stipulation in an employment agreement which states that the employer will provide a significant severance package if the employee loses their job. It is usually provided to top executives in the event that they lose employment because of retirement, layoffs, or for negligence.

The finance commission recommends the principles governing the grants-in-aid of the revenues of the States out of the Consolidated Fund of India. Finance Commission was established to make recommendations to the president about how the net proceeds of taxes have to be distributed between the Union and the states, as well as how the funds have to be distributed among the states.

Complementary goods have a negative cross-price elasticity: as the price of one good increases, the demand for the second good decreases. Substitute goods have a positive cross-price elasticity: as the price of one good increases, the demand for the other good increases. Petrol and Cars is an example of Complementary goods.

Exceptional or abnormal demand is a demand pattern which does not abide with the laws of demand. Its curve is one which slopes down from right to left or in other words, which goes up from left to right, showing that more is demanded at a higher price than at a lower price.

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.

Professional tax, VAT, and motor vehicle tax are some of the taxes that are levied and collected by the state. It is a direct tax. A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this professional tax.

During periods of rising prices, debtors gain and creditors lose. A basic rule of inflation is that it causes the value of a currency to decline over time. In other words, cash now is worth more than cash in the future. Thus, inflation lets debtors pay lenders (creditors) back with money that is worth less than it was when they originally borrowed it.

Antyodaya Anna Yojana (AAY) is the sponsored scheme of Government of India to provide highly subsidised food to millions of the poorest families. The scheme was implemented in 2000. AAY scheme covers the poorest of the poor by supply of food and other important commodities for their daily needs.

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.