Reasons for high food inflation

Visit of foreign nationals during CWG led to exports

Fiscal stimulus definition

Methods to reduce current account deficit

Base effect - Imapact of price levels of previous year on the calculation of inflation rate

Value added tax - State subject, gst replace most of VAT but not all

Closed economy - Neither import nor export

FII and FDI difference

Microfinance meaning: Services rendered to

Teaser loans : given to subprime lenders at low interest rates

GDP growth rate and per capita income growth rate trend

Commercial banks have highest share in the disbusement of credit to agriculture and allied activities

How objectives of inclusive growth be attained: Promoting SHGs, MSMEs, etc

Disinvestment of CPSEs reason

Inflation, deflation, stagflation, hyperinflation

Lowering of bank rate by RBI leads to more liquidity in the market

IIP and eight core industries sectors

RBI as bankers bank

Capital gains: Increase in value of property owned, Increase in value painting owned

Increase in money supply

Price of any currency in international market is decided by: demand of goods, stability of gov

Aim of lead bank scheme: individual banks adopting districts for intensive development

RBI regulates commercial banks in: liquidity of assets, branch expansion, merger, winding up

Increase in bank rate

Deficit financing is used for raising resources for economic development

Capital account constitutes

Inflation benefits debtors but not bond holders

Disguised unemployment

Decreasing order of liquidity

Open market operations

PSL by banks includes

Causes for rise in general level of prices

Items included in Foreign exchange reserves

Printing money is most inflationary

Supply of money same but increase in demand of money will lead to rise in interest rate

Economic growth will definitely occur if there is capital formation

National income of a country for given period is money value of final goods and services produces

RRBs, LDB and not nabard provide credit assistance to rural households

Sales tax on toothpaste is imposed and collected by state gov

Venture capital

Main objective of 5 year plan - faster, sutainable and more inclusive growth

With reference of BOP, ehat comes under current account - Balance of trade, blance of invisibles----------- Foreign assets come under capital account, SDR

MSFR and NDTL

Benefits of banking correspondent (bank saathi)

Statutory reserve requirement - enables the central bank to control the amount of advances the bank can create

If interest rate is decreased then investment expenditure in the economy will increase

Non plan expenditure

Decrease in tax/GDP ratio indicated slow economic growth rate

Index of 8 core industries - Refinary>electricity>steel>coal>crude oil>natural gas>cement>fertilizer

Statutory liquidity ratio decreased then banks may cut their lending rates

Consumer price index for industrial workers by The labour bureau

Covertibility of rupee implies freely permitting the conversion of rupee to other currencies and vice versa

Basel III related to banking

Growth rate of gross real gdp and gdp at market price have not grown steadilt in last decade

Components of monetary policy - RR, CRR, Bank rate, Open market operations, RRR, SLR

Decreased money circulation helps in controlling inflation

Problem of international liquidity is related to non-availability of dollars and other hard currencies

Actions taken to reduce budget deficit - Reducing revenue expenditure, rationalising subsidies

IFC masal bonds - by international finance corporation (world bank), rupee denominated bond, source of debt financing

Capital budget = capital receipt and capital expenditure, capital budget includes expenditure on assets--borrowings--loans and advances to states n union terittories

Sovereign gold bond scheme and gold monetisation scheme by RBI - bring idle golds to economy, reduce india's dependence on gold imports

Actions taken to reduce budget deficit - Reducing revenue expenditure, rationalising subsidies

Payment banks - characteristics

IMF SDR currencies - US dollar, euro, yuan/renmimbi, japanese yen, british pound

International monetary and financial committee - advises IMF, world bank participates as observer

Import cover - number of month of import that could be paid for by country's international reserve

Core banking solutions: Networking of bank's branches which enables customer to operate their account from any branch of the banks

Marginal cost of funds based lending rate: helps improve transparency of methodolgy of determining interest rates, helps ensure availability of bank credit at fair interest rates

Financial stability and development coucil: Headed by finance minister, monitors macroprudential supervision of economy

Base erosion and profit shifting: curbing of tax evasion by MNCs

Monetary policy committee - 6 member body, RBI governor chairman, once every 6 months

Small finance bank purpose: to supply credit to small business unit and marginal farmers

Scheme for sustainable structuring of stressed assets: Scheme of RBI for reworking the financial structure of big corporate entities

After liberlisation of economic policies in 1991: export increased, FDI increased, foreign exchange reserve increased enormously

Advanteages of GST: Will replace multiple taxes, will not drastically reduce GST

Broad based trade and investment agreement: EU

India ratified trade facilitation agreement of WTO, TFA part of WTO's Bali ministerial package of 2013, TFA came in force in Feb 2017

Tax revenue as percent of gdp has not increased steadily, Fiscal deficit as percent of gdp has not incraesed steadily

Merchant discount rate: charge to a merchant by a bank for accepting payments for using their debit card

Equalization tax: introduced under separate legislation under finance bill, can not claim tax credit

FRBM recommended 60% debt to GDP (40% centre+20% states), center gov domestic liabilities 46% and state 23%, art 293: state to borrow only from domestic sources

Import of edible oil is more than production in last 5 year, Gov imposes custom duty on import of edible oils

NPCI links all ATMs in India

Capital adequacy ratio decided by central bank:

ASEAN have FTA with Australia, China, India, Japan, Korea and New Zealand

Legal tender money: Money which a creditor is under compulsion to accept in settlement of his claims

Commodity provided free to the public: oppurtunity cost transferred from consumers to tax paying public

Increase in absolute and per capita rel GDP do not connote higher level economic dev if poverty and unemployment rise

Human capital formation: Increase in skills, knowledge and accumulation of intangible wealth

High capital ouput ratio may not result in significant increase in output