SSC Economy Interview Questions and Answers

1 :: What is the difference between the real investment and financial investment?

any invesment in fixed or current assets is called real
invesment and any invesment in share or debenture is called
financial investment

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2 :: Why Governments have been unable to solve the problem of the current global crisis?

Its nt so.. the problem had been building up for years.. so
no doubt, it is going to take time to be handled too.
talking abt india, govt came up with numerous fiscal
measures at the outburst of the crisis.. and since then, a
number of monetary steps have been taken to stabilize the
system. money is being injected for the common masses these
ways.
But the fact is that.. the job loss and impacts that have
been brought up by the us firms in india or asociates of the
us companies is long lasting. creating employemnt for
millions of those who have lost jobs would be a time
consuming task. Outsourcing of services used to b a great
source of income for india and indian companies. that has
reduced big time. so all that is bound to impact the common
masses.
Howevr, all the possible steps are being taken by the govt
to improve the purchasing power of people so as to bring the
supply demand cycle at a normal pace.

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3 :: Why the global financial crisis did not affect strongly on the underdeveloped countries?

1. Thr limited exposture to derivative products.
2. The crisis mainly strtd in US, all the nations do hav
trade relations with US but in case of nations with
comparatively less imports/exports suffrd lesser.
3. Dollar value affects whole of the wrld.. bt again lesser
dealings means lesser impact.
4. underdeveloped nations who had no outsourcing
relationship with us also suffred less(unlike india.. which
is a developing country and gets a lot of outsourcing
busness frm the west)

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4 :: Explain Purchasing power parity?

Purchasing power parity (PPP) is a theory of long-term
equilibrium exchange rates based on relative price levels of
two countries.

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5 :: Who prepared the preface of the Ist five year plan in India?

First five year plan was based on the "Herold-Domar Model".
The aim of this plan was to start process of Balanced
Development of economy and Agriculture was on top priority
in this plan.

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