List Of Business And Economic Abbreviations: Quiz

Explanation
FDI stands for Foreign Direct Investment. This refers to the investment made by a company or an individual from one country into another country. It involves the direct ownership or control of assets in the foreign country, such as the establishment of a subsidiary or the acquisition of a stake in an existing company. FDI is considered important for economic growth as it brings in capital, technology, and expertise, and stimulates job creation and innovation in the host country.

Explanation
The correct answer is Cash Reserve Ratio. Cash Reserve Ratio refers to the percentage of a bank's total deposits that it is required to keep with the central bank as a reserve. This reserve helps in maintaining liquidity in the banking system and controlling inflation. It is an important tool used by central banks to regulate the money supply in the economy.

Explanation
IPO stands for Initial Public Offering. It is the process through which a private company becomes a publicly traded company by offering its shares to the public for the first time. This allows the company to raise capital by selling ownership stakes to investors. The other options, Indian Public Offering and Indian Paid Offering, are not widely recognized terms and do not accurately represent the concept of IPO. Initial Paid Offering is not a commonly used term in the context of public offerings.

Explanation
The correct answer is "Reserve Bank of India." The RBI is the central banking institution of India, responsible for the issue and supply of the Indian rupee and the regulation of the Indian banking system. It acts as the banker's bank and manages the monetary policy of the country.

Explanation
SEZ stands for Special Economic Zone. It is a designated area within a country that is subject to unique economic regulations and policies. SEZs are established to attract foreign investment, promote exports, and stimulate economic growth. These zones offer various incentives such as tax breaks, relaxed labor laws, and streamlined customs procedures to attract businesses. SEZs play a crucial role in promoting industrialization, job creation, and overall economic development in a country.