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    Check Your ProgressTick the Correct AnswerQuestion 1. Adam Smith defined Economics as a:The choices are: 1. Study of welfare 2. Study of 'means' and 'ends' 3. Study of Wealth 4. None of theseRight Answer: (3) Study of WealthQuestion 2. Macroeconomics deals with;The choices are: (1) Gross domestic product (2) Unemployment rate (3) Price indices (4) All the aboveRight Answer: (4) All the above.Question 3. Who is considered as the founder of the field of Microeconomics?The choices are: (1) Lionel Robbins (2) Amartya Sen. (3) Adam Smith (4) Prof. Alfred MarshallRight Answer: (3) Adam SmithQuestion 4. Microeconomics is concerned with the behaviour ofThe choices are:

    (1) Gross domestic product (2) Individual entities (3) Economy as a whole (4) None of the aboveRight Answer: (2) Individual entities.Question 5. Ends refer toThe choices are: (1) Demand (2) Resources (3) Utility

    (4) WantsRight Answer: (4) WantsQuestion 6. A market economy is one

    The choices are: (1) In which individuals and private firms make the major decisions aboutproduction and consumption. (2) In which the government makes all important decisions about production anddistribution. (3) Both (1) and (2) (4) None of theseRight Answer: (1) In which individuals and private firms make the major decisionsabout production and consumption.Question 7. India is aThe choices are:

    (1)Capitalistic Economy (2) Socialistic Economy (3) Mixed Economy (4) Laissez-faire economyRight Answer: (3) Mixed EconomyQuestion 8. Laissez-faire economy isThe choices are: (1) The extreme case of a market Economy (2) The extreme case of a Command Economy (3) The extreme case of a mixed Economy (4) None of these

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    Right Answer: (1) The extreme case of a market EconomyQuestion 9. Market economy is also known asThe choices are: (1) Mixed Economy (2) Capitalistic Economy (3) Command Economy (4) Socialistic EconomyRight Answer: (2) Capitalistic EconomyQuestion10. Which of the following is Capitalistic Economy?The choices are: (1) England (2) China (3) India (4) None of the aboveRight Answer: (1) EnglandLet Us Sum UpI. Economics is the science that deals with the production, allocation, and useof goodsand services.2. Economics is 'the science which studies human behaviour as a relationship betweenends and scarce means which have alternative uses.3. Microeconomics is concerned with the behaviour of individual entities such as

    markets, firms, and households. Macroeconomics views the performance of theeconomy as a whole.4. Every society must answer three fundamental questions: what, how, and for whom'?What kinds and quantities are produced among the wide range of all possible goodsand services? How are resources used in producing these goods? And for whom arethe goods produced (that is, what is the distribution of income and consumptionamongdifferent individuals and classes?)5. A market economy is one in which individuals and private firms make the majordecisions about production and consumption. A system of prices, of markets, of p

    rofitsand losses, of incentives and rewards determines what, how, and for whom.6. In command economy, the government addresses the major economic questions byvirtue of its ownership of resources and its power to enforce decisions.7. No contemporary society/nation falls completely into either of these polar/extremecategories. Rather, all societies are mixed economies, with elements drawn frommarketand command economies.Check Your ProgressPick the correct AnswerQuestion1. Demand Schedule is theThe choices are:

    (1) Relationship between demand and quantity bought(2) Relationship between price and quantity bought(3) Relationship between price and demand(4) None of theseRight Answer: (2) Relationship between price and quantity boughtQuestion 2.Market Demand Curve obeys theThe choices are:(1) Law of downward-sloping demand(2) Law of upward-sloping demand(3) Law of diminishing

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    (4) None of theseRight Answer: (1) Law of downward-sloping demandQuestion 3. Forces behind the demand curveThe choices are:(1) Expectation about future economic conditions(2) Average Income(3) Cost of production(4) Both (1) and (2)Right Answer: (4) Both (1) and (2)Question 4. A down ward Sloping Demand Curve relates quantity demanded toThe choices are:(1) Supply(2) Income(3) Price(4) DemandRight Answer: (3) PriceQuestion 5. Shifts in Supply meansThe choices are:(1) When changes in factors other than goods own price affect the quantity supplied.(2) When changes in goods own price affect the quantity supplied.(3) Both (1) and (2)(4) None of theseRight Answer: (1) When changes in factors other than goods own price affect thequantity supplied.

    Question 6. The Equilibrium Price is also know asThe choices are:(1) Market price(2) Optimum price(3) Real price(4) Market-clearing priceRight Answer: (4) Market-clearing priceQuestion 7. Forces behind the Supply CurveThe choices are:(1) Cost of production(2) Technological advances(3) Government policies(4) All of the above

    Right Answer: (4) All of the above8. Supply curve relates quantity supplied toThe Choices are:(1) Supply(2) Income(3) Price(4) DemandRight Answer: (3) PriceQuestion 9. Market equilibrium comes at the price at which quantity demandedequals to quantityThe choices are:(1) Produced(2) Supplied

    (3) Inventory(4) DemandRight Answer: (2) SuppliedLet Us Sum Up1. There exists a definite relationship between the market price ofa good and thedemanded quantity of that good, other things being constant. This relationship betweenprice and quantity bought is called the demand schedule, or the demand curve.2. Law of downward-sloping demand: When the price of a commodity is raised (andother things are held constant) buyers tend to buy less of the commodity. Simila

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    rly,when the price is lowered, other things being constant, quantity demanded increases.3. The market demand curve is found by adding together the quantities demanded by allindividuals at each price.4. When there are changes in factors other than a good's own price which affectthequantity purchased, we call these changes shifts in demand. Demand increases (ordecreases) when the quantity demanded at each price increase (or decrease).5. The supply schedule (or supply curve) for a commodity shows the relationshipbetween its market, price and the amount of that commodity that producers are willingto produce and sell, other things held constant.6. When changes in factors other than a good's own price affect the quantity supplied,we call these changes as shifts in supply.7. Market equilibrium comes at the price at which quantity demanded equals quantitysupplied. At that equilibrium, there is no tendency for the price to rise or fall. Theequilibrium price is also called the market-clearing price. This denotes that all supply

    and demand orders are filled, the books are `cleared' of orders, and demanders andsuppliers are satisfied.8. The equilibrium price and quantity come where the amount willingly supplied equalsthe amount willingly demanded. In a competitive market, this equilibrium is found at theintersection of the supply and demand curves. There are no shortages or surpluses atthe equilibrium price.9. When the elements underlying demand or supply change, this leads to shifts indemand or supply and to changes in the market equilibrium of price and quantityC

    heck Your ProgressTick the Correct AnswerQuestion 1. Money Supply refers toThe choices are:(1) The amount of money in banks(2) The amount of money with the people(3) The amount of money in circulation in an economy(4)None of the above.Right Answer: (3) The amount of money in circulation in an economyQuestion 2. Narrow Money consists ofThe choices are:(1) Currency with the Public Demand Deposits, 'Other 'Deposits with the RBI(2) Currency with the Public, Time Deposits, `Other' Deposits

    (3) Time deposits, Demand Deposits, 'Other' Deposits with the RBI(4) Currency with the Public, Demand DepositsRight Answer: (1) Currency with the Public Demand Deposits, 'Other 'Depositswith the RBIQuestion 3. Time Deposits areThe choices are:(1) Paid on demand(2) Not paid on demand(3) Relatively less liquid than cash and demand deposits(4)Both (1) and (2)

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    Right Answer: (4) Both (1) and (2)Question4. Demand Deposits areThe choices are:(1) Paid on demand(2) Not paid on demand(3) Relatively less liquid than cash and demand deposits(4) Both (1) and (2)Right Answer: (1) Paid on demandQuestion 5. Which of the following statements is true about Inflation?The choices are:(1) A rise in the general level of prices(2) Leads to fall in purchasing power(3) Both (1) and (2)(4) None of the aboveRight Answer: (3) Both (1) and (2)Question 6. Price Index used in India to calculate inflation for policy formulationisThe choices are:(1) Consumer price index(2) GDP deflator(3) Wholesale price index(4) Retail price indexRight Answer: (3) Wholesale price indexQuestion 7. Consumer price index measures prices at

    The choices are:(1) Wholesale level(2) Retail level(3) Producer level(4) Consumer levelRight Answer: (2) Retail levelLet Us Sum UpI. Money performs four functions Medium of exchange, a measure of value, a storeofvalue over time, Standard for deferred payments.2. Sources of Money supply analyzed by the RBI, consist of the following: Net bankcredit to the government, Bank credit to the commercial sector, Net foreign exch

    angeassets of the banking sector, Government's Currency Liabilities to the Public, Net non-monetary liabilities of the RBI and the other banks.3. The most common measures of money supply used in India are: Narrow Money (M1),Broad Money (M3), M2 is equal to M1plus demand deposits in post office savingsaccounts, M4is equal to M3 plus all deposits with post offices.4. Inflation is a sustained rise in the general level of prices of goods and services in aneconomy over a period of time. A chief measure of price inflation is the inflation rate, theannualized percentage change in a general price index over time.

    5. The most important causes of inflation are: Demand-Pull Inflation, Cost-PushInflation. Demand-Pull Inflation is a rise in general prices caused by increasingaggregate demand for goods and services. Cost-Push Inflation is a type of inflationcaused by substantial increases in the cost of important goods or services wherenosuitable alternative is available.6. Inflation denotes a rise in the general level of prices. The general price level is

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    measured by a price index. The most important price indexes are: Wholesale priceindex, Consumer price index and GDP deflator.7. The WPI reflects the change in the level of prices of a basket of goods at thewholesale level. The CPI reflects the change in the level of prices of a basketof goodsand services purchased/consumed by the households. GDP deflator is a measure ofthelevel of prices of all new, domestically produced, final goods and services in aneconomy.KeywordsCheck Your ProgressTick the Correct AnswerQuestion1. Pick odd man out:The choices are:(1) Rent(2) Interest(3) Wages(4) MoneyRight Answer: (4) MoneyQuestion 2. According to J.M.Keynes rate of interest and bond prices are relatedThe Choices are:(1) Inversely

    (2) Directly(3) Parallel(4)HorizontalRight Answer: (1) InverselyQuestion 3. Keynes explained interest in terms ofThe choices are:(1) Real forces(2) Economic forces(3) Monetary forces(4) Social forcesRight Answer: (3) Monetary forcesQuestion 4. The initials LM stand forThe choices are:(1) Liquidity Model

    (2) Liquidity preference and Money supply equilibrium(3) Liquidity and Money Model(4) Liquidity and moneyRight Answer: (2) Liquidity preference and Money supply equilibriumQuestion 5. I S curve is derived fromThe choices are:(1) Classical theory.(2) Keynesian liquidity preference theory of interest(3) Law of diminishing marginal utility(4) Law of equimarginal utilityResults: (1) Classical theory.Question6. LM curve is derived fromThe choices are:

    (1) Classical theory(2) Keynesian liquidity preference theory of interest(3) Law of diminishing marginal utility(4) Law of equimarginal utilityRight Answer: (2) Keynesian liquidity preference theory of interestLet Us Sum Up1. Interest is one of the four types of income, the others being rent, wages, and profit.Three elements can be distinguished in interest: (i) payment for the risk involved inmaking the loan; (it) payment for the trouble involved; (iii) pure interest, tha

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    t is apayment for the use of the money.2. Supply-and-demand analysis explains the rate of interest as a price determined bythe demand for money and the supply of loans.3. According to Keynes, rate of interest is determined by liquidity preferenceor demandfor money to hold and the supply of money. The theory is known as Liquidity PreferenceTheory. Interest is a reward for parting with liquidity for a specified period.4. In two-asset economy the demand for money by the people depends upon how theydecide to balance their portfolios between money and bonds.5. The position of money demand curve depends upon two factors: (1) the level ofnominal income, and (2) the expectations about the changes in bond prices in thefuturewhich implies change in rate of interest in future.6. Keynes asserted that it is not the rate of interest which equalizes saving andinvestment. But this equality is brought about through changes in the level of income.7. Hicks and Hansen have brought about a synthesis between the Classical andKeynes' theories of interest and have thereby succeeded in propounding an adequa

    teand determinate theory of interest through the intersection of what are called IS and LMcurves.8. I S curve tells us what will be the various rates of interest at different levels of income,given theinvestment demand curve and a family of saving curves at different levels of income.9. The IS curve and the LM curve relate the two variables: (a) income and (b) the rate ofinterest. Intersection point of these two curves is the equilibrium rate of interest.

    Check Your ProgressTick the Correct Answer:Question1.Business Cycle is also known asThe choices are:(1) Entrepreneur cycle(2) Economic cycle(3) Vicious circle(4) None of the povertyRight Answer: (2) Economic cycleQuestion 2. Pick odd man outThe choices are:(1) Boom(2) Depression

    (3) Slowdown(4) RecoveryRight Answer: (3) SlowdownQuestion. 3 Underemployment of both men and materials is a characteristic ofwhich phase?The choices are:(1) Depression(2) Boom(3) Recovery(4) Recession

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    Right Answer: (1) DepressionQuestion 4. Which phase of the business cycle s alsoknown as the crisis?The choices are:(1) Boom(2) Depression(3) Recovery(4) RecessionRight Answer: (4) RecessionLet Us Sum UpI. Business cycle refers to economy-wide fluctuations in production or economicactivityover several months or years.2. Business cycle simply means the whole course of business activity which passesthrough the phases of prosperity and depression.3. A business cycle is identified as a sequence of four phases, viz., recovery,boom,recession and depression.Check Your ProgressTick the Correct Answer.Question 1. The average growth rate of Indian economy over a period of 25 yearssince 1980-81was aboutThe choices are:(1) 3 to 4 per cent

    (2) 6 per cent(3) 9 per centRight Answer: (2) 6 per centQuestion 2. What sector is called as Primary Sector in India?The choices are:(1) Industrial Sector (2) Service Sector(3) External Sector(4) Agricultural SectorRight Answer: (4) Agricultural SectorQuestion 3. CSO classifies the Industrial Sector in to how many segments?The choices are:(1) Three(2) Four

    (3) Six(4) TwoRight Answer: (1) ThreeQuestion 4. MSE meansThe Choices are:(1) Medium and Small Enterprises(2) Micro and Small Enterprises(3) Medium State Enterprises(4) None of the above.Right Answer: (2) Micro and Small EnterprisesQuestion 5. Service Sector is also called asThe Choices are:(1)Primary Sector

    (2) Secondary Sector(3) Tertiary Sector(4) None of the aboveRight Answer: (3) Tertiary SectorQuestion 6. The share of services in the national income from the last 10 yearsisThe choices are:(1) decreasing(2) Constant(3) Increasing

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    (4)NominalRight Answer: (3) IncreasingLet Us Sum Up1. The Indian economy has registered an impressive growth in recent times with GDPrecording an average of 7.2 per cent growth rate in the current decade from an averagegrowth of 5.7 per cent in the nineties.2. From a nation dependent on food imports to feed its population, India today is notonly self-sufficient in grain production but also has substantial food reserves.3. Indian agriculture is heavily dependent on monsoons.4. The different industry sectors of India witnessed astronomical growth over the last 19years. This growth of the different industry sectors of India is attributed to theGovernment of India's liberal economic policy.5. CSO classifies the industrial sector into 3 segments: Mining and quarrying,Manufacturing and Electricity, gas and construction.6. The service sector now accounts for two third of India's GDP. Phenomenal growthhas been noticed in IT/ITES, telecom, banking, insurance and real estate, and civilaviation.Check Your Progress.

    Tick the Correct Answer.Question 1. Reforms were started inThe choices are:(1) 1981(2) 1991(3) 1971(4) 1995Right Answer: (2) 1991Question 2. Twin economic imbalances existed during 1990The choices are:(1) Fiscal crisis and external payment crisis(2) Fiscal and monetary crisis(3) Monetary and external payment crisis

    (4) None of the aboveRight Answer: (1) fiscal crisis and external payment crisis Question3. Real Sector Policy means focus on x x x in the early stages of reformprocess.The choices are:(1) Mining and quarrying(2) Electricity(3) Manufacturing sector(4) None of the aboveRight Answer: (3) Manufacturing sectorQuestion4. Expand I T E S.The choices are:(1) Information Technology and Electronic Services

    (2) Information Technology and Enabled Services(3) Information Technology and Efficient Services(4) None of the aboveRight Answer: (2) Information Technology and Enabled Services.Question 5. Expand W M A(1) Wealth and Means Advances(2) Wealth and Monetary Advances(3) Ways and Monetary Advances(4) Ways and Means Advances.Right Answer: (4) Ways and Means Advances.

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    Question6. EXPAND N E F T.The choices are:(1) Nominal Electronic Funds Transfer(2) National Electronic Funds Transfer(3) National Electronic Funds Transformation(4) None of the aboveRight Answer: (2) National Electronic Funds TransferLet us Sum UpTo sum up, the reform process that began economic transformation since the early1990s has been based on a broad political and intellectual consensus in the countrythat explains as to why there has never been any policy reversal since then. Attimes wehave been accused to be slow in taking up reforms in certain sectors, but our stancewith regard to pace and timing of reforms have been vindicated by our ability toward offeach of the crises that occurred in the global economy.Transformation of the economy, which is discernible in the form of improvedcompetitiveness, efficiency and productivity across all the sectors, has led theeconomyto a higher growth trajectory. Consequent shift in relative contribution of various sectors

    to national income, however, brought to fore the concerns for sustainability ofthetransformation process and the need for an 'inclusive growth'. This would requiregreater focus towards investment in the sectors namely, agriculture and allied activities,small and micro enterprises, and infrastructure. The use of technology to makeavailable 'affordable' financial and banking services to the underprivileged sections ofour society for achieving inclusive growth is also our noble but critical objective. Finally,economic transformation is an ongoing process that needs to be pursued withperseverance and consensus while keeping in view their aptness to the domestic

    economy. Let us hope that this process continues and gains pace in the coming years.Check Your ProgressTick the Correct AnswerQuestion 1. Bank rate is also referred to asThe choices are:(1) Discount rate(2) Subsidy rate(3) Marginal rate(4) None of the aboveRight Answer: (1) Discount rateQuestion 2. Expand C R RThe choices are:

    (1) Credit Reference Rate(2) Credit Reserve Ratio(3) Cash Reserve Ratio(4) Cash Reserve RateRight Answer: (3) Cash Reserve RatioQuestion3. Expand S L R(1) Statutory Leverage Ratio(2) Statutory Liquidity Ratio(3) Statutory Liquidity Rate(4) Static Liquidity Ratio

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    Right Answer: (2) Statutory Liquidity RatioQuestion4. Expand O M O(1) Open Market Operations(2) Open Market Organization(3) Open Monetary Operations(4) None of the aboveRight Answer: (1) Open Market OperationsQuestion5. Expand F R B M ActThe choices are:(1) Fiscal Responsibility and Business Management Act(2) Fiscal Role and Budget Management Act(3) Fiscal Role and Business Management Act(4) Fiscal Responsibility and Budget Management ActRight Answer: (4) Fiscal Responsibility and Budget Management ActQuestion 6. F R B M Act enacted inThe choices are:(1) 2001(2) 2003(3) 2004(4) 2000Right Answer: (2) 2003Let Us Sum Up1. Monetary policy is the process by which the government, central bank or monetaryauthority of a country controls: (i) the supply of money, (ii) availability of m

    oney and (iii)cost of money or rate of interest, in order to attain a set of objectives oriented towardsthe growth and stability of the economy.2. Tools of Monetary Policy- Bank rate is the rate of interest which a central bankcharges on the loans and advances that it extends to commercial banks and otherfinancial intermediaries. Cash Reserve Ratio (C R R) refers to the liquid cash that bankshave to maintain with the Reserve Bank of India (R B I) as a certain percentageof theirnet demand and time liabilities.4. Statutory Liquidity Ratio or S L R refers to the amount that all banks requir

    emaintaining in cash or in the form of Gold or approved securities.5. Repo (Repurchase) rate is the rate at which the R B I lends shot-term money to thebanks. Reverse Repo rate is the rate at which banks park their short-term excessliquidity with the R B I.6. Under the O M O, the RBI buys or sells government bonds in the secondary market.7. In Economics, fiscal policy is the use of government spending and revenue collectionto influence the economy.KeywordsMonetary policy; Expansionary policy; Contractionary policy; Tools of Monetary P

    olicyBank Rate; Cash Reserve Ratio; Statutory Liquidity Ratio; Repo (Repurchase) rate;Reverse Repo rate; O M O; Fiscal Policy; F R B M act.Check Your ProgressTick the Correct AnswerQuestion1.Personal Consumption expenditure on households divided into;The choices are:(1) Durable goods(2) Non-durable goods(3) Services

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    (4) All of the aboveRight Answer: (4) All of the aboveQuestion 2. Factors of Production are:The choices are:(1) Land, Labour and Capital(2) Assets, Machineries and Money(3) Land, Labour, Capital and Entrepreneur(4) None of the above.Right Answer: (3) Land, Labour, Capital and EntrepreneurQuestion 3. Market Price is the x x x price for which goods or service is offeredat the market place.The choices are:(1) Nominal Price, (2) Economic Price(3) Marginal Price, (4) Deficit Price.Right Answer: (2) Economic PriceLet Us Sum UpI. GDP is the total market value of all the final goods and services produced within thedomestic economy, using domestic resources, during a given period of time, usuallyone year.2. G D P at market prices measures the value of output at market prices after adjusting

    for the effect of indirect taxes and subsidies on the prices.3. G D P at factor cost measures the value of output in terms of the price of factors usedin its production.4. G D P is an 'aggregate' measure. It does not speak any thing about how the GD P isdistributed among the population of the country.5. Higher G D P does not necessarily imply higher welfare. Welfare is a wider conceptwhich encompasses development in all aspects of the society, e.g. health, education,sanitation, etc.KeywordsG D P; Consumption; Gross Investment; Government; (Exports-imports); Mea

    sures of GD P; 'green' G D P; Output; Aggregate demand; External Economy; MonetaryConditions; Financial Markets; Inflation Situation; Growth and Inflation Outlook.Check Your ProgressTick the Correct AnswerQuestion1. Expand N C C DThe choices are:(1) National Council on Crime and Delinquency(2) National council on Credit and Debentures(3) National council on Commerce and deregulation(4) None of the aboveRight Answer: 1) National Council on Crime and Delinquency

    Question2. Pick odd man outThe choices are:(1) Customs(2) Service Tax(3) Interest Receipts(4) Income TaxRight Answer: (3) Interest ReceiptsQuestion3. Pick odd man outThe choices are:(1) Securities issued against Small Savings(2) Recoveries of Loans & Advances

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    (3) State Provident Funds(4) Other ReceiptsRight Answer: (2) Recoveries of Loans & AdvancesQuestion4. Pick odd man out.The choices are:(1) Loans to Public Enterprises(2) Pensions(3) Subsidies(4) PoliceRight Answer: (1) Loans to Public EnterprisesQuestion 5. Net fiscal deficit is the difference betweenThe choices are:(1) gross fiscal deficit and net interest payments(2) gross fiscal deficit and interest payments(3) gross fiscal deficit and net lending(4) None of the aboveRight Answer: (3) gross fiscal deficit and net lendingLet Us Sum Up1. Net Tax Revenue: Gross tax revenue (Minus) N C C D transferred to the NationalCalamity Contingency Fund Minus States' Share.2. Total Revenue Receipts: Net Tax Revenue plus Total Non-Tax Revenue;3. Total Receipts: Total Revenue Receipts plus Capital Receipts plus Draw-Down of

    Cash Balance.4. Total Expenditure: Total Non-Plan Expenditure plus Total Plan ExpenditureKeywordsGrowth-oriented budget; Revenue Receipts; Capital Receipts; Total Receipts; Non-planExpenditure; Plan Expenditure; Total Expenditure; Revenue Deficit; Fiscal Deficit;Primary Deficit.Check Your ProgressTick the Correct AnswerQuestion 1. Pick odd man outThe choices are:(1) Brazil

    (2) France(3) India(4) RussiaRight Answer: (2) FranceQestion2. Expand EMEsThe choices are:(1) External Marketing Economics(2) Environmental Efficiency(3) Emerging Market Economies(4) None of the aboveRight Answer: (3) Emerging Market EconomiesQuestion 3. Expand BPLRsThe choices are:(1) Benchmark Prime Lending Rates

    (2) Benchmark Prime Loan Rates(3) Benchmark Process Lending Rates(4)None of the aboveRight Answer: (1) Benchmark Prime Lending RatesLet Us Sum Up1. Unique features of the Indian economya. Growth is driven by domestic demandb. Twin deficits fiscal as well as current account deficit.c. Supply-constrained economy.2. Five concern areas.

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    (a) Timing of exit from the accommodative monetary policy in the context of rising foodprice-led inflation but still weak growth.(b) The possibility of another surge in capital flows, especially if we turn outto be anoutlier in withdrawal of monetary stimulus.(c) Monetary transmission mechanism as it is evolving from the crisis period.(d) Return to fiscal consolidation and quality of fiscal adjustment.(e) The implications of the efforts towards financial stability on financial inclusion andgrowth.