Indian Economy Quiz 7

High infant mortality rate, high death rate and high birth rate, along with low life expectancy rate are some characteristics of the population of a Developing country.

Full convertibility would mean the rupee exchange rate would be left to market factors without any regulatory intervention. There may be no limit on inflow or outflow of capital for various purposes including investments, remittances, or asset purchases/sales.

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.

Inflation allows borrowers to pay lenders back with money worth less than when it was originally borrowed, which benefits borrowers.

The best way for a bank to avoid loss is to accept sound collateral. In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan.

State Government transactions are carried out by RBI in terms of the agreement entered into with the State Governments in terms of section 21 A of the Act. As of now, such agreements exist between RBI and all the State Governments except the Government of Sikkim.

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.

Private income is either any type of income received by a private individual or household, often derived from occupational activities, or income of an individual that is not in the form of a salary, wage, or commission (e.g. income from investments or renting land or other property).

In economics and political science, fiscal policy is the use of government revenue collection and expenditure to influence a country's economy. The long-term fiscal policy proposes to maintain the stability of the ratio of tax revenue to GDP.

In economics, the demand for inferior goods decreases as income increases or the economy improves. When this happens, consumers will be more willing to spend on more costly substitutes. Some of the reasons behind this shift may include quality or a change to a consumer's socio-economic status.