Indian Economy Quiz 7

After the recent (2020) mergers of government banks, there are a total of 12 nationalized banks in India. They are: Punjab National Bank, Bank of Baroda, Bank of India, Central Bank of India, Canara Bank, Union Bank of India, Indian Overseas Bank, Punjab and Sind Bank, Indian Bank, UCO Bank, Bank of Maharashtra and State Bank Of India.

Commission for Agricultural Costs and Prices (CACP) is a decentralised agency of the Government of India. It was established in 1965 as the Agricultural Prices Commission, and was given its present name in 1985.

Overdraft is a financial instrument in which the money can be withdrawn from the current or savings account, even if the account balance goes below zero.

Interest on public debt is part of Transfer payments by the government. In economics, a transfer payment is a redistribution of income in the market system. Government debt is the debt owed by a central government. In the budget, it is listed among the transfer payments by the government.

According to Keynes, employment can be increased by increasing demand and/or investment. demand depends on income and when income rises, demand also rises but not as much as income. A fall in aggregate demand causes a fall in real gross national product and employment.

In the case of temporary inflation, the central bank (RBI) generally attempts to reduce the money supply in the economy so as to ease the demand pressure. This helps in arresting price rises in the economy.

In public finance, internal national debt or domestic debt is the component of the total government debt in a country that is owed to lenders within the country. The major holders of India's national debt are: Commercial Banks, Provident Funds, Others Foreign Portfolio Investors, Co-operative Banks, State Governments, Mutual Funds Institutions, Corporates Non-Bank. Premium collected in the form of different life insurance policies does not contribute to any kind of debt.

The full form of IDBI is Industrial Development Bank of India. It was established in 1964 by an act to provide credit and other financial facilities for the development of the fledgling Indian industry.

Consumer sovereignty is the situation in an economy where the desires and needs of consumers control the output of producers.

Purchasing power parity (PPP) is a theory which states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.