Indian Economy Quiz 5

Mutual funds and stock markets are regulated by the Securities and Exchange Board of India (SEBI). SEBI is additionally the apex regulator of capital markets and its intermediaries. SEBI is under the jurisdiction of Ministry of Finance, Government of India. It was established on 12 April 1992 and given Statutory Powers on 30 January 1992 through the SEBI Act, 1992.

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.

The major aim of devaluation is to encourage exports. Devaluation is the deliberate downward adjustment of the value of a country's money relative to another currency. One reason a country may devalue its currency is to combat a trade imbalance. Devaluation reduces the cost of a country's exports and increases the cost of imports.

Revaluation is an official rise of the value of the currency in relation to a foreign currency in a fixed exchange rate system. Revaluation is the opposite of devaluation, which is a downward adjustment of a country's official exchange rate.

“Bad money tends to drive good money out of circulation when both are full legal tender.” This principle is known as Gresham's Law. Gresham's law was originally based on the composition of minted coins and the value of the precious metals used in them.

The ratio of a bank's cash holdings to its total deposit liabilities is called the Cash Reserve Ratio (CRR). CRR is the amount of funds that the banks have to keep with the RBI.

Social infrastructure includes the construction and maintenance of facilities that support social services. These can include healthcare, education and Civil amenities.

Altogether, around 22 percent of the Indian population is carrying out its livelihood, while being below the poverty line.

Monetary policy is the policy adopted by the monetary authority of a nation (RBI) to control either the interest rate payable for very short-term borrowing (borrowing by banks from each other to meet their short-term needs) or the money supply, often as an attempt to reduce inflation or the interest rate, to ensure price stability and general trust of the value and stability of the nation's currency.

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.