Test: Indian Economy- 2 - Class 5 MCQ

Human Development Index (HDI) is calculated based on three parameters: 1) Life expectancy 2) Education 3) Per capita income. Norway tops the list across nations with a HDI of 0.949. India ranked 131 in 2015 and scored 0.624. Kerala was the best among Indian states with a score 0.712.

Gresham's law is a monetary principle stating that "bad money drives out good". In currency valuation, the law states that if a new coin (bad money) is assigned the same face value as an older coin containing a  higher amount of precious metal (good money), then the new coin will be used in circulation while the old coin will be hoarded and will disappear from circulation.

Broad Money is a measure of the money supply in the system. It includes currency with the public, demand deposits and time deposits with the banks and other deposits with the RBI. 

Basically, Broad Money = Net bank credit to the Govt + bank credit to the commercial sector + Net foreign exchange assets of the banking system + Govt's current liabilities to the public - Net non-monetary liabilities of the banking sector (other than time deposits).

The eight targets in the Millennium Development Goals of United Nations are:
(a) Eradicate extreme hunger and poverty
(b) Achieve gender equality
(c) Provide universal primary education
(d) Alleviate the status of maternal health
(d) Fight against HIV, malaria and other diseases
(e) Ensure environment sustainability which includes the goal to halve the population without access to safe drinking water
(f) Reduce child mortality
(g) Promote global partnership for development

Lead Bank Scheme was launched in 1969 with the objectives of addressing the problem of unemployment, poverty and raising the living standard of the poor. Under the scheme, each district was assigned to different banks (private and public) to act as a consortium leader to coordinate the efforts of all banks in the district in matters like credit planning and branch expansion.

Social Forestry program is aimed to reclaim the barren and fallow land by afforestation. It aims to protect the environment and encourage social development. The program was launched by the National Commission on Agriculture in 1976.

Odisha has been identified as the most poverty-ridden state by the Suresh Tendulkar Commission. It fixed the poverty line in the state at 695 in rural and 861 in urban areas. The rural figures are lowest for any of the states in the Indian subcontinent. The lowest urban poverty line was for Chhattisgarh.

The base rate system was introduced in 2010 and it replaced the earlier Prime Lending Rate (PLR) system to which all lending rates were pegged. Base rate became the new floor rate below which no bank could lend. The base rate system was brought to increase transparency in the lending market and enable a more informed assessment of transmission of monetary policy changes to banks' lending rates.

ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses.

As mention in article 268 of Indian Constitution. Stamp Duties are mentioned in the Union List shall be levied by the Government of India but collected and appropriated by the States.

Micro-finance is different from micro-credit- under the latter, small loans are given to the borrower but under micro-finance alongside many other financial services like savings accounts, insurance, credit facilities and fund transfer facilities.

The primary market is where the firms actually obtain resources to finance investment projects. In nutshell, primary market is that part of capital market where dealing exchange take place in the new capital issues (Initial Public Offerings (IPOs) by existing and new companies. Primary market is supervised by Securities Exchange Boards of India.

Core inflation excludes commodities which experience sudden spikes and transitory price changes. Such commodities include food and energy which are not included in the measurement of core inflation.

The 7 associate banks of State Bank of India are: State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Travancore, State Bank of Mysore, State Bank of Patiala, State Bank of Saurashtra and State Bank of Indore.

Economic growth results in higher disposable income available with the consumers which increases the overall demand along with the supply available for the consumers. This increase in demand spurs inflation, which eventually becomes a necessary evil for a growing economy.