Test: Glossary of Economic and Financial Terms - UPSC MCQ

GDP stands for Gross Domestic Product, which is the total value of all goods and services produced within a country's borders during a specific period.

Inflation refers to the sustained increase in the general price level of goods and services over a period of time, leading to a decrease in the purchasing power of money.

FDI stands for Foreign Direct Investment, which is the investment made by a foreign entity directly into the production or business activities of another country.

The central bank of the USA is called the Federal Reserve System or the Federal Reserve (often referred to as the Fed).

Fiscal policy is used by the government to manage its spending and taxation to influence the overall economic activity and achieve specific economic objectives.

The stock market index of India is called the BSE Sensex, which tracks the performance of the top 30 companies listed on the Bombay Stock Exchange.

IPO stands for Initial Public Offering, which is the first sale of shares of a private company to the public.

The currency used in Japan is known as the Yen. It is the official monetary unit and plays a vital role in the country's economy.

• The symbol for the Yen is ¥.
• It is subdivided into sen, although sen is rarely used today.
• The Yen is one of the most traded currencies in the world.

A bear market is a financial market characterized by declining asset prices, pessimism among investors, and a general lack of confidence in the economy.

Liquidity refers to the ease with which an asset can be converted into cash without significantly affecting its price.

The World Trade Organization (WTO) facilitates trade negotiations among member countries and provides a platform for resolving trade disputes.

A trade deficit occurs when a country's imports exceed its exports, resulting in a negative balance of trade.

Monetary policy refers to the use of central bank tools to control the money supply, interest rates, and credit availability to achieve economic objectives.

Opportunity cost refers to the cost of choosing one option over the next best alternative, which is forgone as a result of that decision.

The World Bank provides financial and technical assistance to developing countries to support their economic development projects.

Reducing government expenditure is a fiscal measure used to influence economic activity through changes in government spending.

Deflation refers to a sustained decrease in the general price level of goods and services, leading to an increase in the purchasing power of money.

The International Monetary Fund (IMF) provides financial assistance and policy advice to member countries facing balance of payments problems.

GDP stands for Gross Domestic Product, which is the total value of all goods and services produced within a country's borders in a specific time period. It is a crucial economic indicator used to measure the country's economic performance.

Inflation refers to the persistent increase in the general price level of goods and services in an economy over time, resulting in a decrease in the purchasing power of money.