Indian Economy Quiz 7

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.

When the government disinvests its shares to the extent of 4 to 5 percent to meet the deficit in the budget, this is termed deficit privatization or token privatization.

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.

Three Important Methods for Measuring National Income are - Income Method, Product/ Value Added Method and Expenditure Method.

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.

Special drawing rights (SDRs) are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF). SDRs are units of account for the IMF, and not a currency per se. They represent a claim to currency held by IMF member countries for which they may be exchanged.

Printing of currency notes in India is done on the basis of Minimum Reserve System (MRS). This system is applicable in India since 1956. Under the MRS, the RBI has to keep a minimum reserve of ₹200 crore comprising of gold coin and gold bullion and foreign currencies. Out of the total ₹200 crores, ₹115 crore should be in the form of gold coins or gold bullion and the rest in the form of foreign currencies.

Mahatma Gandhi first featured on currency notes in 1969. Mahatma Gandhi series of ₹100 notes has a picture of Indian Himalayan mountain ranges on its reverse which is of ecological and environmental significance.

Economists and statisticians use several methods to track economic growth. The most well-known and frequently tracked is the gross domestic product (GDP).

Per capita income is a measure of the amount of money earned per person in a nation or geographic region. It is calculated by dividing country's national income by its population.