Indian Economy Quiz 7

Using Defence Strategies a seller or buyer protects his business or holdings from changing prices and takes action against it.

A closed economy is one that has no trading activity with outside economies. The closed economy is therefore entirely self-sufficient, which means no imports come into the country and no exports leave the country.

It refers to the right or ability of an industrial unit to withdraw from or leave an industry or in other words to close down.

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

The population growth experienced in India can largely be explained by variations in birth and death rates. Some of the most important causes of population growth in India are: Widening Gap between Birth and Death Rates, Low Age at Marriage, High Illiteracy, Religious Attitude towards Family Planning, etc.

The monetary policy states the use of financial instruments under the control of the Reserve Bank of India (RBI) to standardise magnitudes such as availability of credit, interest rates, and money supply to achieve the ultimate objective of economic policy mentioned in the Reserve Bank of India Act, 1934. Social justice is not an aim of the monetary policy of RBI.

The taxation system in India empowers the state governments to levy income tax on agricultural income, professional tax, state excise duty, land revenue and stamp duty. The Central Government of India levies taxes such as customs duty, income tax, Goods and service tax (GST), and central excise duty.

The correct match is as follows:

The Reserve Bank of India (RBI) was nationalised with effect from 1 January 1949 on the basis of the RBI Act 1948.

National income is the accumulated money value of all final goods and services produced in a country during one financial year. Winning a lottery is not included in the national income because it does not add to current flow of goods and services.