Question

Match the following Group ‘A’ with Group ‘B’ 

Group A	Group B
Inferior Goods	Average Cost (AC)
Reward of capital	1st April to 31st March
Financial year	Quantitative measure of credit control
Bank rate	Marginal cost
Total Cost (TC) / Total Quantity (TQ)	1st January to 31st December
	Profit
	Interest
	Giffen goods

Answer 1

Group A and Group B can be matched as follows:

Group A	Group B
Inferior goods	Giffen goods
Reward of capital	Interest
Financial year	1st April to 31st March
Bank rate	Quantitative measure of credit control
Total Cost (TC) / Total Quantity (TQ)	Average Cost (AC)

Giffen goods are highly inferior goods that share a negative relationship with income of the consumer as well as the price of the commodity.

Capital is the money invested in various tools and machinery that is used in the production process. Interest is the reward for capital.

Financial year refers to the time period for which various financial statements are prepared. In India, the financial year is from 1st April to 31st March.

Bank rate is the rate at which central bank provides loans to commercial banks. Changes in bank rate change the cost of borrowings, thereby affect the money supply. Accordingly, it is one of the important quantitative instruments of credit control used by the central bank.

Average Cost is defined as the per unit cost of producing output. It is derived by dividing the total cost by quantity of output produced.