Indian Economy Previous Year Questions (PYQ) with Answers – Page 17

Retail investors can bid for government securities in primary auctions, and NDS-OM is the RBI's trading platform for them, but CDSL was not promoted by the RBI.

Expansionary policies, fiscal stimulus and higher purchasing power all raise aggregate demand, which is what drives demand-pull inflation. Demand-pull inflation happens when total demand for goods and services runs ahead of what the economy can supply, described as too much money chasing too few goods.

Printing new money adds fresh purchasing power to the economy without any matching rise in goods, so it pushes prices up the most.

The nominal interest rate is simply the percentage by which the amount repaid exceeds the amount borrowed, with no adjustment for inflation.

Collateral is an asset that the borrower pledges to the lender as security until the loan is repaid. When a bank lends money it wants protection against default.

Black money is, by definition, income hidden from the tax authorities, so its most direct and serious effect is the tax the government never receives.

Devaluation makes domestic goods cheaper abroad, so export competitiveness improves, but it lowers the external value of the currency and does not necessarily improve the trade balance.

When the jobs on offer need skills, or are in places, that do not match the workers available, people stay jobless even though vacancies exist.

Nominal GDP values each year's output at that year's own (current) prices, not at constant prices, so this statement is not correct.

Indian bond yields respond to the RBI's policy, to domestic inflation and short-term rates, and also to the US Federal Reserve through global capital flows.

A dearer substitute pushes buyers towards this good, and a fall in its own price leads them to buy more of it.

Statement I is right: commercial paper is an unsecured money market instrument issued in the form of a promissory note, so it is backed only by the credit standing of the issuer and not by any security.

The Pradhan Mantri Ujjwala Yojana was launched on 1 May 2016 at Ballia in Uttar Pradesh.

Issue price is the subsidised rate at which grain from the government's buffer stock is sold through ration shops, and it is deliberately kept below the market price.

The General Insurance Corporation of India, or GIC, was incorporated as a company in November 1972, the year general insurance was nationalised in India.

It is the composite measure that puts health, education and income together in a single figure between 0 and 1, built as the geometric mean of one index for each of the three dimensions, and published by the UNDP since 1990.

The Planning Commission was set up in March 1950 by a resolution of the Union Cabinet, so it was neither a constitutional nor a statutory body.

The National Housing Bank is one of the central nodal agencies through which the Centre passes the interest subsidy of the Credit Linked Subsidy Scheme of Pradhan Mantri Awas Yojana (Urban) down to the lenders.

It is the micro-finance scheme under which women borrow small sums at a concessional rate of interest, so the rebate in interest is built into the scheme itself.

The Swachh Bharat Mission was launched on 2 October 2014, and its rural wing completed the first phase of toilet building with the declaration of open defecation free villages in 2019.