ECONOMY: region in terms of produciton & consumption of goods & services and supply of
money.
* ECONOMICS: It is the branch of knowledge concerned with the production, consumption &
transfer of wealth.
* India has mixed economy system.
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Q. Nature of Indian economy- Mixed economy
Q. Which economics activities employs the max no. of people in India - Agriculture
Q. Which come under the Quaternary sector- Information Technology
Q. Tertiary sector - White collar jobs
Quinary sector - Gold collar professions
Q. Father of economics: Adam Smith
Q. Financial year in the Indian economy runs from- 1st April to 31st March
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Agriculture production board
Coffee board: Bengaluru (Karanataka)
Rubber board: Kottayam (Kerala)
Tea board: Kolkata (West Bengal)
Spices board: Kochi (Kerala)
Tobacco board: Guntur (Andhra Pradesh)
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Operation Flood
- aim: to increase milk production
- lauched in
- Father of operation flood; Dr. Verghese Kurn
National Food Security Act, 2013
-provide food & nutritional security by ensuring access to adequate of quality food at
affordable prices.
- Act provide subsidised food grains under targeted public distribution system (TPDS).
- Lay special focus on nutritional support to women & children.
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National Bank for Agriculture & Rural Development (NABARD)
- established in 1982
-based on the recommendation of Shivraman Committee
Food stocks are maintained by the central government for 3 purposes:
1. Maintaining prescribed buffer stock norms for food security.
2. Monthly supply through PDS
3. Market intervention to stabilise open market prices.
Q. Central agency responsible for the regulation of hte stock market in India?- SEBI
Q. The terms ‘Bull’ & ‘Bear’ are associated with- stock market
Q. Money market is a market for- short term fund
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Major crops of India.
1. Kharif crop: rainy season
rice, jawar, bajra, maize, cotton, sugarcane, groundnut ect.
2. Rabi crop: winter season
wheat, barley, gram, mustard, etc.
3. Zayed crop: summer season
watermelon, vegetables, moong, etc.
imp questions
Q. Who maintains a Buffer stock of Food grains in India?- FCI
Q. IPO- Intial Public Offering
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National income
- it is the measurement of flow of services & goods in economic system.
- according to the data of world bank, GNI of India in 20 is
Economic Planning
- Planning commission was constituted in India in 1950.
- chairman is Prime Minister
- in 2015, it renamed as NITI Aayog.
- first plan 1951-56 Harrod-Domar model.
aim: start process of balance development
-agriculture was its top priority.
Q. . Net Natioal Income= GNP - Depreciation
Q. Purchasing Power Parity theory is related with ?- Exchange Rate
Q. The value of GDP at the current prevailing prices is called- nomial GDP
Q. Lorentz curve indicates: income distribution
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Unemployment
It is the situation when persons able & willing to work are unable to get the same.
Types:
1. CYCLICAL UNEMP: result of depression in an economy.
2. FRICTIONAL UNEMP: unemployment is
temporary. It's a result of a situation when
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PM Narendra Modi awarded Sri Lanka's highest civilian honour, the mithra vibhushana.
(april, 2025)
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new industries drive out old ones & workers change over to better job.
3. OPEN UNEMP:
refers to those who have no work to do even though they are able & willing to do work.
4. SEASONAL UNEMP:
unemployment of farmers & farm labourers during non-crop seasons.
5. Under- employment (Disguised unemployment):
results when a person contributes to production less than what he/she is capable of.
Q. People like small farmers & seasonal workers who regularly move in & out of poverty are
catogorised as? - Churning poor
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EMPLOYMENT GUARANTEE act (2005)
Mahatma Gandhi National rural Employment Guarantee scheme. (MNGEGS)
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AADHAAR
First on-scale Digital ID service of the world
- aim is to provide identity infrastructure.
Direct Benefit Transfer (DBT)
- targeted delivery of welfare services in a transparent & efficient manner through Aadhaar
payment bridge.
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RESERVE BANK OF INDIA (RBI)
- set up in 1935
- control's India's money
- nationalised in 1949
* Development Banks:
1. industrial Dev Bank of India (IDBI): set up in 1964
- Provide finance to large & medium scale industrial units.
2. Small Industrial Dev Bank of India (SIDBI)
-set up in 1989
- provide assistance to small scale industries
3.NABARD
-Set up in 1982
- serve as an apex refinancing agency for institutions engaged in providing
agricultural finance
4. EXIM Bank (Export Import Bank)
- set up in 1982
- coordinate institutions engaged in financing export & import trade.
5. LIC ( lIFE INSURANCE COMPANY)
- set up in 1956
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Imp Banking Terminologies:
* Bank rate: it's the rate at which RBI allows finance to commercial bank
* CRR ( Cash Reserve Ratio): it's the amt of funds that the banks have to keep with RBI
* SLR (Statutory Liquidity Ratio): it's the amt a commercial bank need to maintain in the form
of cash, or gold or gov approved securities before providing credit to its customers.
* Repo rate: rate at which the commercial banks borrows rupees from RBI
* Reverse Repo rate: rate at which RBI borrows money from commercial banks.
* Basis points (bps): it's the high in interest rates in percentage terms.
* NEFT (National Electronic Fund Transfer):
- enables transfer of money from one bank to another
- transfer is n't direct & RBI acts as the services provider to transfer money fom one account
to another.
-slow process than RTGS
-we can transfer any amount through NEFT even a rupee.
* RTGS (Real Time Gross Settlements): transfer money/securities from one bank to another
on a 'real time'.
-min & max limit of RTGS ; 2 lkh & no upper limit
Imp questions
Q. The Banking Regulation Act was passed in India in - 1949
Q. In Banking sector , IMPS = Immediate Payment Services
Q. Terms refers to the running down/payment of a loan in instalments- Amortisation
Q. Which committee was set to give a detailed report on the Non performing Assets of the
Public sector banks? - Pannir Selvam Committee
Q. IFSC- Indian financial System Code
Q. How many digits are there on a debit card? - 16
Q. In India, Monetary policy is formed by- RBI
Q. Current (2025) chairman of RBi- Sanjay Malhotra
Q. Who acts as the Banker to the Indian gov? - RBI
Q. Monetary policy tool is used by RBI to control inflation?- Repo rate
Q. RBI was established on- 1st April, 1935
Q. NPCI- National Payments Corporation of India
FATF- Financial Action Task Force
Q. The Imperial bank of India was renamed as - —-- in 1955- state bank of India
Q. No of language on the language panel of Indian currency notes?- 15
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TAX SYSTEM
A compulsory contribution given by a citizen or organisation to the gov is called tax. Used for
meeting expenses on welfare work.
- Tax system has been divided into 2 parts.
Tax by central gov; custom duty , income tax & corporate tax.
Tax by state.
- There are 2 types of taxed:
Direct taxes: tax levied by the central gov on incomes & wealth are imp direct taxes. Ex:
corporate tax, income tax, gift tax, etc.
indirect tax: levied on goods & services produced/ purchased excise tax, sales tax , vat,
entertainment tax.
Excise tax: tax levied on the production of an item within territory custom duty: Import duty &
export duty.
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Finance Commission
Under art 280: constituted by the President
Tenure: 5 yrs
Q. Economic survey is published by: Ministry of Finance
Q. India opted for ‘Mixed Economy’ in : Industrial Policy of 1948
Q. Main objective of 1st 5 yr plan: Dev of agriculture including irrigation & power projects.
Q. Fiscal policy is formulated by —-- in India: Finance Minister
Q. SWIFT- Society for Worldwide Interbank Financial Telecommunications
Q. State Financial corporation Act passed in- 1951
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Types of taxes
New Industrial policy 1991
- abolition of industrial licensing
-entry of foreign investment
-public sector's role diluted
-liberalisation of industrial location policy
2 types of taxes:
a. Direct tax b. Indirect tax
1. taxes imposed by central gov.
2. taxes imposed by state gov.
a. Direct tax: income tax, property tax, gift tax, etc
b. Indirect tax: sales tax, excise duty, custom duty,etc.
1. taxes imposed by central gov: income tax, corporate tax, property tax, succession tax,
wealth tax, gift tax, custom duty, agricultural wealth tax, etc
2 taxes imposed by state gov: land revenue tax, agricultural income tax, agricultural land
revenure, state excise duty, entertainment tax, stamp duty, road tax, motor vehicle tax, etc.
Q. Which country was the 1st to implement GST? - France
Q. GSTIN: Goods & Services Tax identification Number
Q. In which year was the Central Board of Revenure Act in India promulgated? - 1963
Q. GST council is headed by: Finance Minister
Q. GST in n’t applicable on which of the goods & services: Alcohol
Q. Tax classified as a ‘Pigouvian tax’- Carbon tax
Q. Under which amendment to the constitution of India was GSt imposed?- 101
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MRTP Act:
Under MRTP Act all firms with assets above a certain size were classified as MRTP firms.
Such firms were permitted to inter selected industires only and this also on a case-by-case
approval basis. The new industrial policy scrapped the threshold limit of assets in respect of
MRTP & dominant undertakings.
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National Board for Micro, Small & Medium Enterprises meet once every —--- months in a yr?
- six
Q. The micro, small & medium enterprised Devlopment Act was passed in year? - 2006
Q. Founder of Macro economics as a separate discipline? - John Maynard Keynes
Q. A short term gov security paper is called: treasury bill
Q. National Devlopment Council was set up in: 1952
Q, For economists, —-- refers to the amount of a product/service that people are both willing
& able to buy- Demand
Q Factors of production : Land, Labour, Captial & Entrepreneurship
Q, If there is a lack of money supply in comparison to the supply of goods & services, then
the possible consequences would be: deflation
Q. A sustained rise in the general price level in an economy is called - inflation
Q. A — occur when a goverment’s total expenditure exceeds the revenure that is generated
excluding money from borrowing- Fiscal deficit
Q A situation where the expenditure of the gov exceed its revenue is called: budget deficit
Q. Who is responsible for preparation of National Income estimates in India?- Central
Statistical Organisation (CSO)
Q. Founder of Indian Statistical Institute on 17 Dec 1931?- PC Mahalanobis
Q. Who was the economist who wrote the book ‘Small as beautiful’? - ER Schumacher
Q. Name the ‘Father of Indian Economics Reforms’?- PV Narsimha Rao
Q. 1st Port in India to become a public company?- Ennore port
