Part-4: ECONOMICS
1. Theory of Economics
Keynesian Multiplier: (J.M. Keynes, 1936) Theory stating that increased government spending leads to a larger overall increase in economic activity because it boosts private spending.
Total Revenue (TR) Curve: Shows the relationship between a firm's total income (revenue) and its output level.
TR = Price (P) × Quantity Sold (Q)
TR = Sum of Marginal Revenues (ΣMR)
Isoquant: A curve on a graph showing all combinations of two input factors (e.g., labor and capital) that produce the same given level of output.
Elasticity: An economic concept measuring the responsiveness of one variable (e.g., quantity demanded) to a change in another (e.g., price).
Duopoly: A market structure where only two firms sell a particular product to many consumers.
Short-Run Marginal Cost (SMC) Curve: Is 'U'-shaped due to the Law of Variable Proportions. Initially, MC falls as output increases, reaches a minimum, then rises.
Law of Variable Proportions (or Law of Diminishing Marginal Returns): States that as more units of a variable input are added to fixed inputs, the marginal product (MP) of the variable input will eventually decrease after reaching a certain point. This causes marginal cost (MC) to eventually rise.
Factors of Production: Inputs used in the production process to create goods or services and generate economic profit. Key factors are:
Land
Labour
Capital
Entrepreneurship
Price Elasticity of Demand (PED): Measures how much the quantity demanded of a good responds to a change in its price.
PED = (% Change in Quantity Demanded) / (% Change in Price)
Elastic Demand: A change in price causes a proportionally larger change in quantity demanded.
Firm's Supply Curve: Shows the quantity of output a profit-maximizing firm is willing to produce at different market prices. Typically slopes upward.
Returns to Scale:
Increasing Returns to Scale: Output increases by a larger proportion than the increase in all inputs.
Constant Returns to Scale: Output increases by the same proportion as the increase in all inputs.
Decreasing Returns to Scale: Output increases by a smaller proportion than the increase in all inputs.
GDFCF (Gross Domestic Fixed Capital Formation): Measures the total value of investment (less disposals) in fixed assets by producers within an economy during a specific period.
Ex-post vs. Ex-ante:
Ex-post: The actual or realized value of a variable after an event.
Ex-ante: The planned, intended, or expected value of a variable before an event.
"The General Theory of Employment, Interest and Money" (1936): Written by John Maynard Keynes; argues that aggregate demand, not the price of labor, determines the level of employment.
Breakeven Point: The point on the supply curve where a firm earns only normal profit (Total Revenue = Total Cost).
Public Goods: Characterized by:
Non-rivalry: One person's consumption does not diminish availability for others.
Non-excludability: It's impossible or very costly to prevent non-payers from consuming the good.
Ex-Ante Aggregate Demand (AD): The total planned spending in an economy.
Formula (simple): AD = C + I
Formula (detailed): AD = C̄ + cY + I (where C̄=Autonomous Consumption, c=MPC, Y=Income, I=Investment)
Formula (full): AD = C + I + G + NX (Consumption + Investment + Government Spending + Net Exports)
Consumer Theory: Studies how individuals make spending decisions based on their preferences and budget constraints (also called consumer choice).
Marginal Utility (MU): The additional satisfaction or benefit a consumer gains from consuming one more unit of a good or service.
Law of Diminishing Marginal Utility: As a consumer consumes more units of a good, the additional utility (satisfaction) gained from each extra unit tends to decrease.
Marginal Propensity to Save (MPS): The fraction of an additional unit of income that is saved rather than spent.
MPS = Change in Savings (ΔS) / Change in Income (ΔY)
Indifference Curve: A curve showing combinations of two goods that provide a consumer with the same level of satisfaction (utility). Utility is constant along a single indifference curve.
Indifference Map: A collection of indifference curves, representing different levels of satisfaction. Higher curves represent higher satisfaction. Curves in an indifference map do not intersect.
Marginal Rate of Substitution (MRS): The rate at which a consumer is willing to trade one good for another while maintaining the same level of utility. It is the slope of the indifference curve.
Abnormal Profit (Supernormal Profit): Profit earned by a firm over and above the normal profit (which covers the opportunity cost of inputs, including a return to capital).
Consumption Function: Describes the relationship between total consumption spending and gross national income (or disposable income). Formula: C = a + bY (where 'a' is autonomous consumption, 'b' is MPC, Y is income).
Equilibrium Price: The market price where the quantity demanded by consumers equals the quantity supplied by producers (market-clearing price).
Explicit Cost: Direct, out-of-pocket payments made by a firm for resources (e.g., wages, rent, materials). Appears in accounting records.
Implicit Cost: The opportunity cost of using self-owned resources in the production process (e.g., the forgone salary of an owner working in their own business). Not usually recorded in accounting books but relevant for economic profit calculation.
Marginal Cost (MC): The change in total cost resulting from producing one additional unit of output. MC = ΔTC / ΔQ.
Variable Costs: Costs that change in proportion to the level of output produced (e.g., raw materials, direct labor, packing). Rent and Property Taxes are typically fixed costs, not variable.
Average Variable Cost (AVC): Total Variable Cost (TVC) divided by the quantity of output (Q). AVC = TVC / Q.
Average Fixed Cost (AFC): Total Fixed Cost (TFC) divided by the quantity of output (Q). AFC curve is typically a rectangular hyperbola.
Average Total Cost (ATC or AC): Total Cost (TC) divided by the quantity of output (Q). Also, ATC = AFC + AVC.
Rectangular Hyperbola Demand Curve: A demand curve where price elasticity of demand is equal to 1 (unitary elasticity) at all points.
Cross Elasticity of Demand: Measures the responsiveness of the quantity demanded of one good (e.g., Tea) to a change in the price of another good (e.g., Coffee).
Positive for substitutes (Tea and Coffee).
Negative for complements (Car and Petrol).
Relationship between Average Product (AP) and Marginal Product (MP):
If MP > AP, then AP is rising.
If MP < AP, then AP is falling.
If MP = AP, then AP is at its maximum.
If AP is decreasing, MP will be less than AP.
Demand Curve Slope: Typically downward sloping from left to right, reflecting the Law of Demand (inverse relationship between price and quantity demanded).
Sunk Cost: A cost that has already been incurred and cannot be recovered. It should not influence future decisions.
Marginal Propensity to Consume (MPC): The fraction of an additional unit of income that is spent on consumption.
MPC = Change in Consumption (ΔC) / Change in Income (ΔY)
Value is generally between 0 and 1 (0 ≤ MPC ≤ 1).
Total Fixed Cost (TFC): Costs that do not vary with the level of output (e.g., rent, insurance, property taxes).
Microfinance Institutions (MFIs): Provide financial services (small loans, savings) to poor and low-income populations. The RBI manages the development fund and sets limits on lending rates/margins.
Isoquant (Constant Factor): The level of output is constant along a single isoquant.
Fixed Cost: Costs that are based on time rather than the quantity produced (e.g., worker salaries, rent, insurance). Water, waste disposal, electricity are often variable costs depending on usage.
Factor Income: Income received from the factors of production (Rent for land, Wages for labor, Profit for entrepreneurship/capital). Donations are not factor income.
Law of Diminishing Marginal Product: (Same as Law of Variable Proportions, Q6 & Q13).
Investment Multiplier (m): The ratio of the change in national income to the initial change in investment or autonomous spending. It is positively related to MPC.
m = 1 / (1 - MPC) or m = 1 / MPS
Marginal Product (MP) Stages of Production:
Stage I: MP increasing, then decreasing but positive; TP increases at an increasing, then decreasing rate.
Stage II: MP decreasing but positive; TP increases at a decreasing rate.
Stage III: MP becomes negative; TP starts decreasing.
Real Wage Rate: In competitive markets, firms hire labor up to the point where the real wage rate equals the Marginal Productivity of Labour.
Constant Returns to Scale (CRS): Output increases by exactly the same proportion as the increase in all inputs.
Average Product (AP): Total Product (TP) divided by the quantity of the variable input (e.g., Labour, L). AP = TP / L.
Price Discrimination: Charging different prices to different customers for the same product or service, not based on cost differences.
Macroeconomics: The branch of economics studying the behavior and performance of an economy as a whole (e.g., national income, unemployment, inflation, growth).
Microeconomics: The branch of economics studying the behavior of individuals, households, and firms in decision-making and resource allocation.
Stagflation: A situation of simultaneous high inflation and high unemployment (stagnant economic growth).
Business Cycle: Fluctuations in aggregate economic activity, characterized by periods of expansion (growth) and contraction (recession).
Inflationary Gap: Occurs when aggregate demand exceeds the level required for full employment equilibrium, leading to upward pressure on prices (inflation). Excess demand causes this.
The Great Depression (1929): A severe worldwide economic downturn that began in North America (United States).
Dearness Allowance (DA): An allowance paid to government employees and pensioners in India to offset the impact of inflation, calculated using the Consumer Price Index for Industrial Workers (CPI-IW).
Consumer Price Index (CPI): Measures changes in the price level of a market basket of consumer goods and services purchased by households. Used to estimate inflation affecting consumers.
Wholesale Price Index (WPI): Measures changes in the price of goods sold in bulk (wholesale). Used historically as a measure of headline inflation in India.
Hyperinflation: Extremely rapid or out-of-control inflation (often defined as >50% per month).
Recession vs. Depression: A depression is a very deep, long, and painful recession.
2. Classification of Economics
Economic Sectors:
Primary Sector: Involves extraction and harvesting of raw materials and natural resources (e.g., Mining, Agriculture, Forestry, Fishing).
Secondary Sector: Involves manufacturing and processing of raw materials into finished goods (e.g., Cotton cloth production, Manufacturing).
Tertiary Sector (Service Sector): Provides services rather than tangible goods (e.g., Banking, Education, Teaching, Transport, Healthcare, Communication).
Open Economy: An economy that engages in international trade and financial flows. Features include de-licensing, freedom for foreign investment, and technology import. Restrictions on large industries are not a feature.
Mixed Economy: An economic system where both the public sector (government enterprises) and the private sector (private enterprises) coexist and play significant roles. India has a mixed economy.
Capitalist Economy: Factors of production are owned individually (privately).
Socialist Economy: Factors of production are owned collectively or by the state.
Technological Area Employment: In India, it's the second-largest employer for female employees (as per Q125 source).
Base of Indian Economy: Traditionally, Agriculture (Agri industries) has been the base (as per Q126 source).
Public vs. Private Sector Classification: Based primarily on Ownership (Govt. owning ≥ 51% makes it public).
Joint Sector: Involves co-operation and co-existence between the public and private sectors.
Agricultural Revolutions:
Yellow Revolution: Related to oilseed production.
Green Revolution: Related to food crop production.
White Revolution: Related to milk production.
Brown Revolution: Related to leather, cocoa.
Gandhian Socialism: An economic philosophy emphasizing trusteeship, village self-sufficiency, and ethical considerations (associated with Atal Bihari Vajpayee's views in Q124).
Niels Bohr: Physicist (quantum physics, hydrogen atom spectrum), not related to economic theory (unlike Malthus, Ricardo, Keynes).
3. National Income and Measurement
Indian Statistical Institute (ISI): Founded by Prasanta Chandra Mahalanobis (Father of Modern Statistics in India) in Kolkata, 1931.
Per Capita Income: Net National Product (NNP) divided by the total population of a nation.
Equilibrium National Income: Occurs where Aggregate Supply equals Aggregate Demand.
Central Statistics Office (CSO) / National Statistical Office (NSO): The nodal agency in India responsible for releasing data on national income, consumption expenditure, savings, capital formation, etc. (NSO formed by merging CSO and NSSO). Calculates GDP in India.
Macroeconomic Framework Statement: Presented with the Union Budget, assesses the economy's prospects regarding GDP growth rate, fiscal balance, and external balance.
Real National Income: National income measured at constant prices (adjusted for inflation). Often represented by GDP at constant prices.
First Estimate of National Income (India): Prepared by Dadabhai Naoroji in 1876.
Disposable Income: Income remaining for an individual after paying personal income taxes (local, state, federal). Disposable Income = Gross Personal Income - Personal Income Taxes.
Gross Domestic Product (GDP): The total monetary or market value of all final goods and services produced within a country's geographical borders during a specific period. Most commonly used measure for economy size.
Only finished goods are included to avoid double counting (value of intermediate goods is included in the final goods' value).
Net National Product (NNP): Gross National Product (GNP) minus depreciation.
NNP at market price is used for calculating national income in India (as per Q148 source).
GVA (Gross Value Added) at market price is also used.
Gross National Product (GNP): The total value of goods and services produced by a country's residents (both domestically and overseas).
Net Domestic Product (NDP): Gross Domestic Product (GDP) minus depreciation.
Economic Growth Indicator: A steady increase in GDP is considered a good indicator of economic growth.
Agricultural Export Value (India): Basmati Rice gains maximum export value (as per Q149 source).
MSME Sector Share in GVA (India, 2017-18): Was 32% (as per Q150 source).
4. Economic Planning, Five Year Plans and NITI Aayog
Gadgil Formula (1969): Named after D.R. Gadgil, used for determining the allocation of central assistance to state plans in India.
Five Year Plans (FYPs) - General:
Planning Commission set up: 15 March 1950.
Plan Era started: 1 April 1951.
First FYP: 1951-1956. Focused on the primary sector (agriculture, irrigation). Based on Harrod-Domar model. Achieved 3.6% growth (target 2.1%). Five IITs started.
Second FYP: 1956-1961. Focused on industrial development (heavy industries). Based on PC Mahalanobis Model. Pointed out benefits of development should reach less privileged classes. Steel plants (Durgapur, Bhilai, Rourkela) set up with foreign collaboration (UK, USSR, Germany respectively). India opted for a mixed economy.
Third FYP: 1961-1966. Led by Jawaharlal Nehru. Based on Gadgil formula/Yojana. Focused on agriculture & self-reliance in food grains. Green Revolution originated during this plan period (started 1966-67).
Plan Holidays: 1966-1969 (due to failure of 3rd plan). Three annual plans were implemented.
Fourth FYP: 1969-1974. Based on Gadgil Model. Drought Prone Area Programme initiated.
Fifth FYP: 1974-1978 (terminated one year early by Janata Party). Focused on increasing employment, reducing poverty (Garibi Hatao), and self-reliance. Minimum Needs Programme introduced in the first year (1974).
Sixth FYP: 1980-1985. Removal of poverty was a foremost objective.
Seventh FYP: 1985-1990. Focused on accelerating food grain production, employment, productivity (food, work, productivity). Private sector given priority over public sector for the first time. Target growth 5%, achieved 6%.
Twelfth FYP: 2012-2017 (Last plan). Theme: "Faster, More Inclusive and Sustainable Growth". Ended in March 2017.
License Raj: Introduced during the second FYP era (related to Industries and Regulation Act 1951).
Planning Commission: Chaired by the Prime Minister. First chairman: Jawaharlal Nehru. First Deputy Chairman: Gulzarilal Nanda. Replaced by NITI Aayog on 1 Jan 2015.
P.C. Mahalanobis: Known as the architect of Indian planning. Second FYP based on his model.
Industrial Policy Resolution: 1948 (first), 1956 (second, formed basis of 2nd FYP).
Bharat Nirman (Tenth FYP, 2005-09): Program started by GoI to upgrade rural infrastructure.
Hindu Rate of Growth: Term coined by Prof. Raj Krishna referring to the low average growth rate (around 3.5%) of the Indian economy from the 1950s to 1980s.
Bombay Plan (1944): Economic plan proposed by a group of Indian industrialists for post-independence India.
Atal Innovation Mission (AIM): NITI Aayog initiative to promote innovation and entrepreneurship. Signed SOI with Adobe for Digital Disha Programme.
People Plan (1945): Formulated by M.N. Roy, based on Marxist Socialism, emphasized agricultural nationalization.
Economic Planning (Subject List): Falls under the Concurrent List in the Indian Constitution.
NITI Aayog: Replaced Planning Commission. An extra-constitutional body.
Economic Liberalization (India): Started in 1991 (Liberalization, Privatization, Globalization - LPG reforms). Announced by then Finance Minister Dr. Manmohan Singh.
5. Money and Banking
`2000 Banknote (Mahatma Gandhi New Series): Features an image of Mangalyaan (India's Mars Orbiter Mission).
Sterilisation: Intervention by a monetary authority (like RBI) in the money market to counteract the effects of foreign exchange interventions on the domestic money supply, keeping it stable against external shocks.
Cash Reserve Ratio (CRR): The percentage of a bank's total deposits that it must keep as cash reserves with the central bank (RBI in India). It's a tool used by RBI to control liquidity. Fixed by RBI.
Statutory Liquidity Ratio (SLR): The minimum percentage of deposits that a commercial bank must maintain in the form of liquid cash, gold, or other approved securities. Banks maintain these themselves.
Lender of Last Resort: The role of the central bank (RBI) to provide liquidity (lend money) to commercial banks facing financial difficulties when they cannot borrow elsewhere.
RBI Deputy Governors: The central board of RBI can have a maximum of four full-time Deputy Governors.
Bitcoin as Legal Tender: El Salvador became the first country in the world to accept Bitcoin as legal tender.
Micro Finance Institutions (MFIs) in India - Principles:
Often focus on women borrowers.
Employ peer monitoring.
Lack of physical collateral is common.
Provide micro loans (small amounts), not large loans.
Open Market Operations (OMO): Purchases and sales of government securities by the central bank (RBI) in the open market to regulate the money supply and influence interest rates. A quantitative tool of credit control.
High Powered Money (Monetary Base / Reserve Money): The total liability of the monetary authority (RBI). It includes currency held by the public and commercial banks, and deposits held by commercial banks with the RBI. Forms the basis for credit creation.
Priority Sector Loans (Weaker Sections): Self Help Groups (SHGs) are eligible under this category.
Fiat Money: Currency (notes and coins) declared legal tender by a government, which is not backed by a physical commodity like gold. Its value derives from government decree and public trust. Cheques are not fiat money.
Mahindra & Mahindra Financial Services Ltd. (MMFSL): An Indian rural non-banking financial company (NBFC) headquartered in Mumbai. A leading tractor financier.
Bandhan Financial Services: A microfinance organization based in Kolkata, received RBI approval in April 2014 to start a universal bank.
Bank Nationalisation (India):
1969: 14 major scheduled commercial banks were nationalized.
1980: 6 more banks were nationalized.
RBI Nationalisation: 1st January 1949.
Payments Bank vs. Commercial Bank: Canara Bank is a Public Sector Bank, not a Payments Bank (Incorrect pair in Q233). Axis Bank (Private), AU Small Finance Bank (Small Finance) pairs are correct.
Micro Finance Institutions Sector - RBI Committee (2010): Y.H. Malegam committee was constituted to study issues and concerns in the MFI sector.
Malhotra Committee (1993): Recommended reforms in the insurance sector.
Kelkar Committee: Studied PPP model; recommended GST.
Abid Hussain Committee (1997): Recommendations on small enterprises.
NBFC-MFI Regulatory Framework: RBI introduced a comprehensive framework in 2011.
Money Supply Measures (India): M3 = CU (Currency with Public) + DD (Demand Deposits) + Net Time Deposits of Commercial Banks. (Formula from Q236)
State Bank of India (SBI):
Headquarters: Mumbai.
Current Chairman (as of Oct 2020): Dinesh Kumar Khara.
First Chairman: John Mathai.
Formed on 1 July 1955 by nationalizing Imperial Bank of India.
RBI took a 60% stake initially.
Largest commercial bank in India.
Non-Banking Financial Company (NBFC): A company registered under the Companies Act, engaged in financial activities but does not hold a banking license. Cannot accept demand deposits or be part of the payment system. Governed by RBI. Full form: Non-Banking Financial Company.
Money Multiplier: The ratio by which the money supply can increase for a given increase in the monetary base. It is inversely related to the CRR. Money Multiplier = 1 / CRR. (If CRR is 15%, Multiplier = 1 / 0.15 ≈ 6.67).
Reserve Bank of India (RBI):
India's central bank and monetary authority.
Established: 1st April 1935 (under RBI Act, 1934). Based on Hilton Young Commission recommendations.
Nationalised: 1st January 1949.
Headquarters: Mumbai (permanently moved from Kolkata in 1937).
Governor's Office: Mumbai.
First Governor: Sir Osborne Smith (1935-37).
First Indian Governor: C.D. Deshmukh (1943-49).
25th Governor (Current as of Dec 2018 text): Shaktikanta Das.
Monitors money supply, regulates banks, lender of last resort, banker to government, issues currency (except `1 note).
Does not regulate the securities market (that's SEBI).
Does not act as a banker to the public.
Qualitative vs. Quantitative Credit Control:
Qualitative: Moral Suasion.
Quantitative: OMO, Repo Rate, Bank Rate, CRR, SLR.
SEWA Cooperative Bank: First initiated in Ahmedabad in 1974.
Microfinance Movement Launch (India, 1992): Launched by NABARD on a pilot basis (SHG-Bank Linkage Programme - SBLP).
Credit Rating/Score: An assessment of creditworthiness, usually a number between 300 and 900 (e.g., CIBIL score).
Paytm Payments Bank: Directed by RBI in March 2022 to stop onboarding new customers (under Banking Regulation Act, Section 35A).
Bank of Baroda: Founded by Maharaja Sayajirao Gaekwad III in 1908. Merged with Vijaya Bank and Dena Bank effective 1st April 2019, becoming India's third-largest bank (after SBI, PNB).
Bandhan Financial Services Ltd.: HQ in Kolkata.
Coins in India: Issued by the Ministry of Finance.
WhatsApp UPI Payments: Launched in India in November 2020.
HARBINGER 2021: Global hackathon organized by RBI with the theme 'Smarter Digital Payments'.
Microfinance Pulse: Newsletter published by SIDBI and Equifax.
IFCI (Industrial Finance Corporation of India Ltd): Set up as a statutory corporation in 1948 to provide medium and long-term finance to industry.
NABARD (National Bank for Agriculture and Rural Development):
Established: 12th July 1982.
Recommendation: Shivraman committee.
Objective: Promote sustainable agriculture and rural development.
Regulates Regional Rural Banks (RRBs).
Apex body for rural financing.
Government of India holds 99% share (as per Q433 source).
Multiplier (Economics): Ratio of change in income to the change in investment (k = ΔY / ΔI).
Excess Demand Correction: Central bank typically increases CRR, SLR, Repo Rate to reduce money supply and curb excess demand. (Option B in Q268 is correct if it implies increasing rates, contradicting the 'Reduce' wording in the options A&B).
Microfinance Institutions Network (MFIN): Recognized by RBI as India's first Self-Regulatory Organization (SRO) for NBFC-MFIs in 2014.
Bandhan Financial Services Pvt. Ltd.: First MFI to win a bank license in 2014.
Private Sector Banks (India): Federal Bank is an example. Majority stake held by private individuals. (21 private banks as per Q272 source).
Outright Open Market Operations: Securities sold/bought by the central bank without a specification of repurchase date and price. (Contrasts with Repo/Reverse Repo which have repurchase agreements).
MUDRA (Micro Units Development and Refinance Agency):
Provides refinancing for loans up to `10 lakh to non-corporate, non-farm small/micro enterprises.
Loan Categories:
Shishu: Up to `50,000
Kishore: Above 50,000 up to 5 lakh
Tarun: Above 5 lakh up to 10 lakh
Oriental Bank of Commerce (OBC) & United Bank of India: Merged with Punjab National Bank (PNB) in 2020. PNB became India's second-largest PSB after SBI.
Regional Rural Banks (RRBs):
Established under RRB Act, 1976 (Ordinance promulgated Sept 1975).
First RRB (Prathama Bank, Moradabad): 2nd October 1975.
Objective: Provide credit for agriculture and rural sectors.
Controlled and regulated by NABARD.
Interest Rate on Savings Account (India): Decided by the respective banks, but indirectly influenced by RBI's monetary policy tools.
Digital India Programme (Key Visions):
Digital Infrastructure as a Utility/Facility to every citizen.
Governance and Services on Demand.
Digital Empowerment of Citizens.
(Production of documentaries is NOT a key vision).
RBI Emblem: Bengal tiger in front of a palm tree.
Oldest Public Sector Bank (India): Allahabad Bank (established 1865).
Bank Merger (2019): Vijaya Bank and Dena Bank merged with Bank of Baroda.
Bank of Hindustan (1770): First bank established in India (at Calcutta under European management). Defunct in 1832.
Indian Rupee Symbol (`): Officially adopted by GoI on 15th July 2010. Designed by Udaya Kumar.
Currency Note Features (India):
`200 Note: Sanchi Stupa depicted. Has 4 angular bleed lines.
`500 Note: Red Fort depicted. Dimensions: 66mm × 150mm.
`2000 Note: Mangalyaan depicted. Dimensions: 66mm × 166mm.
`50 Note: Chariot of Hampi depicted.
`100 Note: Rani ki Vav depicted.
`10 Note: Konark Sun Temple depicted.
`20 Note: Ellora Caves depicted.
Languages on reverse side: 15 languages + Hindi & English on obverse = 17 total.
`1 Note Signature: Signed by the Finance Secretary (India).
Bank Rate: The rate at which the central bank (RBI) lends funds to commercial banks (usually long-term, without collateral).
Repo Rate: The rate at which RBI lends funds to commercial banks against government securities (short-term).
Reverse Repo Rate: The rate at which RBI borrows funds from commercial banks.
SBI Exclusif (2016): Wealth management product/service for high-net-worth individuals.
Jio Coin: Crypto currency planned by Reliance Jio Infocomm (as per Q395 source).
Sweden: European country aiming to become a cashless society (as per Q396 source).
Demonetisation (India, 2016): 1000 and 500 notes withdrawn. `1000 note is fully not in operation. 86% of currency value was demonetized. RBI Governor: Urjit Patel.
NEFT (National Electronic Funds Transfer) & RTGS (Real Time Gross Settlement): Electronic money transfer systems managed by RBI.
Intangible Asset: Credit is an example.
Indian Currency Printing:
Currency Note Presses: Nashik (Maharashtra), Dewas (Madhya Pradesh) - controlled by Central Govt.; Mysuru (Karnataka), Salboni (West Bengal) - controlled by RBI subsidiary BRBNMPL.
Raw material: Cotton and cotton rag.
Printing technique (front): Intaglio Printing.
Maximum Currency Note Printed by RBI: `10,000 (printed in 1938, 1954, 1978).
Bhartiya Mahila Bank Merger: Merged into State Bank of India (SBI) in 2017.
Collateral: An asset pledged by a borrower to a lender as security for a loan, forfeited if the loan is not repaid.
Old `500 Notes (Pre-2005): Last date to exchange was 30 June 2016.
Robotics Banking: Future transactions likely based on wireless technology.
IFSC (Indian Financial System Code): 11-digit alphanumeric code used to identify bank branches for electronic fund transfers (NEFT, RTGS, IMPS).
EMI (Equated Monthly Installment): Fixed payment amount made by a borrower to a lender at a specified date each month.
Credit Card Swiping: Based on electromagnetic induction.
ASCI (Advertising Standards Council of India): Complaint body is the Consumer Complaints Council (CCC).
Giffen Good: An inferior good for which demand increases as price increases (violates law of demand). Demand falls when price falls.
Namami Gange Programme: Ganga river cleanup project. Public participation by stopping open defecation on river banks. Launched July 2014.
Hypermarket: Retail store combining a department store and a grocery supermarket.
Fringe Benefits: Non-wage compensation provided to employees (e.g., pensions, health insurance, company car).
TITE (Technological Interventions for Tribal Empowerment): Grant-in-aid scheme under Tribal Sub Plan for improving living conditions of STs using S&T.
Livestock Census (India): Conducted every 5 years. First census: 1919-1920.
UAN (Universal Account Number): 12-digit number allotted by EPFO to every employee contributing to Provident Fund.
Gratuity: Benefit payable under Payment of Gratuity Act, 1972, paid by employer to employee for services rendered (minimum 5 years of service required).
BIS (Bureau of Indian Standards): Established 1987 (Act passed 1986). HQ: New Delhi. Has 5 regional offices. Sets Indian standards, provides certification. Not responsible for food safety procedures (that's FSSAI).
Bhuvan: ISRO's geo-portal with 3D imaging capabilities ("Google Map of India").
Infrastructure: Basic physical systems like transportation, communication, sewage, water, electricity. Entertainment is not typically considered infrastructure.
NCLT (National Company Law Tribunal): Handles corporate disputes under Company Law 2013.
IBEF (India Brand Equity Foundation): Trust established by Dept. of Commerce (GoI) to promote 'Made in India' label internationally.
Yellow Vest Protests: Associated with France (started Nov 2018).
Amartya Sen: Nobel laureate economist, added 'Entitlements' concept (access to food) to food security analysis.
Mandi Trades: Location-based F2S (Farm to Shop) trading platform/app in India.
Economic Geography Sub-fields: Geography of Resources, Tourism, Agriculture, Marketing. Demography and Political Geography are distinct fields.
White-Collar Workers: Perform professional, desk, managerial, or administrative work; typically salary-based, requiring higher education/skills (e.g., accountants, managers).
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