Economic Reforms Since 1991 test - 3

IBRD stands for International Bank for Reconstruction and Development, and is popularly known as the World Bank. It was established in 1944 with the mission of financing the reconstruction of European Nations devastated by the World War II.

Financial Institutions by engaging in mobilisation and allocation of savings, act as a channel between the savers and borrowers of funds.

Balance of Payments (BOP) records all external transactions on both current as well as the capital account.

Outsourcing is the contracting of business processes to external firms usually in developing countries where labour costs are cheaper.

 Monetary policy is the macroeconomic policy laid down by the central bank of the country.

The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India.

Stock exchange is an organised and regulated financial market where securities are bought and sold at prices governed by the forces of demand and supply.

Corporation tax is a direct tax which is imposed on the net income of the company.

To liberalise the Indian economy, industrial licensing was abolished, many industries reserved for the public sector were dereserved and import licensing was also abolished in most industries.

Sales tax and excise duty are examples of indirect taxes as these are to be paid by the producers or sellers of the commodity but the ultimate burden of the tax rests on the customer.