Government SSC Economy Interview Preparation Guide

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Repo rate is the rate at which banks borrow funds from the
RBI to meet the gap between the demand they are facing for
money (loans) and how much they have on hand to lend.
and
Bank rate, also referred to as the discount rate, is the
rate of interest which a central bank charges on the loans
and advances that it extends to commercial banks and other
financial intermediaries. Changes in the bank rate are
often used by central banks to control the money supply.

Edwin P Hubble

the major aim of devaluation to increase the foreigen
exchange basket , in 1991 when our foreigen exchange
reserves dip low the manmohan singh govt resotred to
devaluation of indian rupee in two parts.

Andhra Pradesh on 2nd Feburary, 2005.

Recurring booms and depressions in the economy.

consumer's sovereignity means that customers can buy
according to their own desire. The right price is charged
from them, provided with right quality & in right quantity.

GNP is defined as the total value of all goods and
services produced by firms owned by the country concerned.
It is measured as the gross domestic product plus income
earned by domestic residents from foreign investments,
minus income earned during the same period by foreign
investors in the country's domestic market. GNP does not
allow for inflation or for the overall value of production.
It is an important indicator of an economy's strength

consumers are the main bearers of indirect taxes

at present inflation is ascertain by wholesale price
index,but now it is switching to ppi(purchase price
index).if we want to tame inflation then first we have to
acess whether it is demand side or supply side inflation if
it is supply side inflation then a country have to increase
the farm productivity because people are demanding same or
more but output is not available to general people at
present this can be seen in india that govt. is relying more
on monetary tightning but inflation isnot reducing since
demand is appropriate acc. to economic growth but supply is
inadequate.

but if it is a demand side inflation then monetary
tightening will work,since people have more disposable
income and supply is in accordance with economic growth so
reducing money or liquidity in system will lead to
equilibrium position.

SEBI (Securities and Exchange Board of India)

Service tax, as is a tax that is levied on a pan India
basis is the responsibility of the Ministry of Finance,
Government of India i.e. The Central Government.

sachin tendulkar

Sales tax

Narrow money (M1) includes currency, i.e. banknotes and
coins, as well as balances which can immediately be
converted into currency or used for cashless payments, i.e.
overnight deposits.


"Intermediate" money (M2) comprises narrow money (M1) and,
in addition, deposits with a maturity of up to two years and
deposits redeemable at a period of notice of up to three
months. Depending on their degree of moneyness, such
deposits can be converted into components of narrow money,
but in some cases there may be restrictions involved, such
as the need for advance notification, delays, penalties or
fees. The definition of M2 reflects the particular interest
in analysing and monitoring a monetary aggregate that, in
addition to currency, consists of deposits which are liquid.


Broad money (M3) comprises M2 and marketable instruments
issued by the MFI sector. Certain money market instruments,
in particular money market fund (MMF) shares/units and
repurchase agreements are included in this aggregate. A high
degree of liquidity and price certainty make these
instruments close substitutes for deposits. As a result of
their inclusion, M3 is less affected by substitution between
various liquid asset categories than narrower definitions of
money, and is therefore more stable.

1st governer ---- Sir Smith(1935-37)

1st indian Governer --- CD Deshmukh (1948-49)

Amnesty is a legislative or executive act by which a state restores those who may have been guilty of an offense against it to the positions of innocent people. It includes more than pardon, in as much as it obliterates all legal remembrance of the offense. The word has the same root as amnesia. Amnesty is more and more used to express 'freedom' and the time when prisoners can go free.


The word Amnesty means grace, pardon, mercy.

International Financial Reporting Standards

First five year plan was based on the "Herold-Domar Model".
The aim of this plan was to start process of Balanced
Development of economy and Agriculture was on top priority
in this plan.

Purchasing power parity (PPP) is a theory of long-term
equilibrium exchange rates based on relative price levels of
two countries.

1. Thr limited exposture to derivative products.
2. The crisis mainly strtd in US, all the nations do hav
trade relations with US but in case of nations with
comparatively less imports/exports suffrd lesser.
3. Dollar value affects whole of the wrld.. bt again lesser
dealings means lesser impact.
4. underdeveloped nations who had no outsourcing
relationship with us also suffred less(unlike india.. which
is a developing country and gets a lot of outsourcing
busness frm the west)

Its nt so.. the problem had been building up for years.. so
no doubt, it is going to take time to be handled too.
talking abt india, govt came up with numerous fiscal
measures at the outburst of the crisis.. and since then, a
number of monetary steps have been taken to stabilize the
system. money is being injected for the common masses these
ways.
But the fact is that.. the job loss and impacts that have
been brought up by the us firms in india or asociates of the
us companies is long lasting. creating employemnt for
millions of those who have lost jobs would be a time
consuming task. Outsourcing of services used to b a great
source of income for india and indian companies. that has
reduced big time. so all that is bound to impact the common
masses.
Howevr, all the possible steps are being taken by the govt
to improve the purchasing power of people so as to bring the
supply demand cycle at a normal pace.

any invesment in fixed or current assets is called real
invesment and any invesment in share or debenture is called
financial investment