Indian Economy Quiz 7

In early development, investment opportunities for those who already have wealth multiply so owners of capital can accumulate wealth. At the same time, there is an influx of cheap rural labour to the developing cities, which drives down wages. Therefore, in early development, inequality increases.

A country has sufficient international liquidity if it can cover any balance of payment deficit with gold and/or convertible currency. A convertible currency is any nation's legal tender that can be easily bought or sold on the foreign exchange market with little to no restrictions.

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.

Taxes imposed by the state government are; Sales Tax and VAT, Professional Tax, Luxury Tax, Entertainment Tax, House tax, Motor Vehicles Tax, Tax on Vehicles Entering State, Tax on Agricultural Income, Tax on Land and Buildings and Tax on Mineral Rights.

Through the establishment of village industries, Mahatma Gandhi strives to bridge economic inequalities. Gandhiji conceived Khadi Programme as a key to solve the economic problems of the country. Gandhi had commented about khadi “It connotes the beginning of economic freedom and equality of all in the country.”

Green Banking is any form of banking from which the country gets environmental benefits. A conventional bank becomes a green bank by directing its core operations towards the betterment of the environment.

Higher interest rates mean higher borrowing costs, people will eventually start spending less and get better returns on their savings. The demand for goods and services will then drop, which will cause inflation to fall.

Production function is the functional relationship between inputs and output in a given state of technology. Q=f(L,K) [where Q is output, L is Labour, K is Capital]

Jawahar Rozgar Yojna was launched on 1 April 1989 by merging National Rural Employment Program (NREP) and Rural Landless Employment Guarantee Program.

A golden handshake is a stipulation in an employment agreement which states that the employer will provide a significant severance package if the employee loses their job. It is usually provided to top executives in the event that they lose employment because of retirement, layoffs, or for negligence.