Explanation: Marketable Surplus. Consumer surplus, also called social surplus, occurs when the price consumers pay for a product or service is less than the price they are willing to pay. Domestic consumption products and services that are bought and used in the country that makes them.

Explanation: 13%. GDP (Gross Domestic Product) Agriculture sector – 59% of GDP in (1950-51).

Explanation: Alcohol for human consumption. Other Goods not covered under Goods and Services Tax (GST): Petrol, high-speed diesel, aviation turbine fuel, crude oil, Electricity, and Natural Gas. GST {The Constitution 122nd Amendment Bill (2014), 101st Amendment Act (2016), Article 246A (Special Provision for GST), Article 269A (Levy and Collection of GST for Inter-State Supply), Article 279A (GST Council), Article 286 (Restrictions on Tax Imposition)}.

Explanation: Surplus. Balanced Budget – if the expected expenditure is equal to the anticipated receipts for a fiscal year. Surplus Budget – If the expected revenues surpass the estimated expenditure for a particular business year.

Explanation: Customs duty refers to the tax imposed on goods when they are transported across international borders. An Excise tax is any duty on manufactured goods that is levied at the moment of manufacture rather than at sale.

Explanation: A and B. Lack of financial discipline by the government can lead to excess expenditure and inflation. Inflation is a decrease in the purchasing power of money, reflected in a general increase in the prices of goods and services in an economy.

Explanation: The Green Gross Domestic Product is an indicator of economic growth with environmental factors taken into consideration along with the standard GDP of a country. The blue economy is the “sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of the ocean ecosystem.”

Explanation: Depreciation.

Explanation: Income distribution angle forms the basis to estimate the National income. National income is the sum of all the factor income that is generated during a production year.

Explanation: ₹8,000 crore. Domestic income = National Income – Net factor income from abroad. Domestic income= ₹10000- ₹2000= ₹8,000 crore.

Explanation: Hawkish stance – To combat inflation, the central bank is willing to hike interest rates to curb the money supply and thus reduce the demand. Accommodative stance – Central bank is prepared to expand the money supply by cutting interest rates to boost economic growth. Neutral stance – Central banks can either cut-rate or increase the rate.

Explanation: I, II and III.

Explanation: Indian Rupee. GDP is defined by the following formula : GDP = Consumption + Investment + Government Spending + Net Exports.

Explanation: 2003.

Explanation: Progressive tax is a tax system that collects a greater share of income from those with high incomes than from those with lower incomes. Payroll tax can be defined as the tax that is withheld, charged, or levied on the payroll of the employer.

Explanation: GDP at Constant Prices – Taxes + Subsidies. GDP can be calculated in three ways, using expenditures, production, or incomes.

Explanation: Union Budget 2021-22. Finance Minister Nirmala Sitharaman presented the first paperless budget.

Explanation: Budget (Annual financial statement, Article 112) is a statement of the estimated receipts and expenditure of the government in a financial year (1st April – 31st March). A vote-on-account is Parliament’s approval to the Centre for withdrawal of money from the Consolidated Fund of India for a specified expenditure to be incurred for a particular period.

Explanation: Implicit price deflator. Gross domestic product (GDP) is the monetary value of all finished goods and services made within a political territory during a specific period.

Explanation: 2011-12. Base Year prices are being used to calculate the real GDP. The Base Year is a reference period that provides a benchmark against which price changes of goods and services are measured.

Explanation: Laffer Curve is a graphic representation of the relationship between rates of taxation and the resulting levels of government revenue.

Explanation: 2005. Value added tax (VAT, Indirect tax) is an added amount on the purchase of an article that increases the price of that item at each stage of production to distribution. Since 2017, it get subsumed under Goods and services tax.

Explanation: Revenue income. The 5 major sources of revenue for the Government are Goods and Services Tax (GST), Income tax, corporation tax, non-tax revenues, union excise duties.

Explanation: 5 Lakhs. Deposit Insurance provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly owned subsidiary of the Reserve Bank of India (RBI). It provides deposit insurance that works as a protection cover for bank deposit holders when the bank fails to pay its depositors.

Explanation: Services sector. Example of Services sector – banking, insurance, finance etc.

Explanation: Ministry of Finance. The Department of Economic Affairs, Ministry of Finance presents the survey in parliament every year, just before the union budget.

Explanation: Reserve Bank of India. Microfinance institution – An organisation that offers microloans, microsavings and microinsurance services to low income populations. In India, loans below one lakh rupees are defined as microloans. The RBI defined microfinance as collateral free loans given to households having annual income up to Rs. 3 lakh.

Explanation: 1935. The Reserve Bank of India was established on April 1,1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937. Few other banks and their establishment years: Bank of India – 1906, Central Bank of India – 1911, Punjab National Bank – 1894.

Explanation: increase. Repo rate :- It refers to the rate at which commercial banks borrow money by selling their securities to the Reserve bank of india (RBI) to maintain liquidity, in case of shortage of funds or due to some statutory measures. It is one of the main tools of RBI to keep inflation under control. If Repo Rate increases then money supply will decrease.

Explanation: January 1, 1949. The Reserve Bank of India (RBI) was established on 1 April 1935. It was set up on the basis of the recommendations of the ‘Hilton Young Commission’ (1926) and under RBI Act 1934. The first Indian Governor of the RBI was CD Deshmukh. Twenty-fifth governor: Shaktikanta Das. Headquarter – Mumbai (Maharashtra).

Explanation: 50%. This limit is set by the Reserve Bank of India (RBI) to protect low-income households from over-indebtedness.

Explanation: Repo rate. Reverse repo rate – The rate at which the central bank of a country borrows money from commercial banks. Bank rate – It is a rate at which the Reserve Bank of India (RBI) provides the loan to commercial banks without keeping any security. Cash reserve ratio – The percentage of a bank’s total deposits that it needs to maintain as liquid cash.

Explanation: 25% of the total assets. The minimum and maximum interest rate cannot be more than 4%. NBFC-MFI is required to maintain not less than 85% of its net assets as qualifying assets.

Explanation: M3+ total post office deposits. The Reserve Bank of India (RBI) releases data for four different metrics representing money supply, namely M1, M2, M3, and M4. M2 = M1 + Savings deposits with Post Office savings banks. M3 = M1 + Net time deposits of commercial banks.

Explanation: Only (i) and (iii). The money supply is the entire stock of currency and other liquid instruments in a country’s economy as of a particular time. M1, M2, M3, M4 is the measure of money supply. M1 is the most liquid and makes transactions the easiest, while M4 is the least liquid. M1, M2 – Narrow Money. M3, M4 – Broad Money. M1 = Currency with the public + Demand deposits in bank + Other deposits with RBI. M4 = M3 + Total Deposits with Post Office Savings Organisation.

Explanation: Credit creation – Process by which commercial banks create new money by lending to businesses and individuals.

Explanation: one lakh rupees. Non-Banking Financial Company – Micro Finance Institution (NBFC-MFI): A type of financial institution that provides financial services, including microloans and other financial products, to low-income and economically vulnerable individuals, especially in rural and underserved areas. The regulator of Micro Finance in India is the Reserve Bank of India.

Explanation: Rural Cooperatives. Microfinance Institutions – Financial companies that provide small loans to people who do not have any access to banking facilities. Bandhan Bank became the first microfinance company to get a bank licence in 2014. Grameen Model Bank – It was the brainchild of Nobel Laureate Prof. Muhammad Yunus in Bangladesh in the 1970s.

Explanation: Mutual Funds – A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities. The mutual funds in India are regulated by the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI). The Government of India set up the first mutual fund by an Act of Parliament in 1963.

Explanation: Debit cards (Plastic Money) and credit cards look nearly identical, and both can give a fast and convenient way to pay – no matter whether you’re paying in person, online or over the phone. Using a debit card is like using cash in hand, as you can spend only what you have. But credit cards come with a credit limit that is not dependent on bank balance.

Explanation: Perishability – A characteristic of products and services that do not allow for the product or service to be stored for sale at a future date. Money – Any object that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context.

Explanation: NABARD (National Bank for Agriculture and Rural Development). It is the apex banking institution to provide finance for Agriculture and rural development. The SHG-Bank Linkage Programme (SBLP) was initiated as an action research by the NABARD in 1989 and was subsequently crystallised into a pilot project in 1992.

Explanation: Dependency on donor funding. Microfinance Institutions in India – Self Help Group (SHG); Joint Liability Group (JLG) and Grameen Model Bank.

Explanation: Banking Terminologies: Repo Rate: The interest rate at which a nation’s central bank lends money to commercial banks often in the form of very short-term loans.

Explanation: Other functions of commercial Banks : Accepting Deposits (Savings, Currents, Fixed), Lend money to people and businesses, Provide Locker to Customers, Deals with foreign exchanges etc. Commercial Banks are regulated by Reserve Bank of India (RBI) under Banking Regulation Act, 1949. Function of RBI – Management of foreign exchange reserves, control on inflation, issues notes, serve as Bank of commercial Banks.

Explanation: MFIs are financial companies that provide small loans to people who do not have any access to banking facilities. The definition of “small loans” varies between countries. In India, all loans that are below Rs.1 lakh can be considered as microloans. Types of institutions that offer microfinance are: Credit unions, Non governmental organisations, Commercial banks, Cooperatives.

Explanation: Microfinance, also called microcredit, is a type of banking service provided to low-income individuals or groups who otherwise wouldn’t have access to financial services.

Explanation: to facilitate exchange. Primary functions of money : Medium of exchange, measure of value. Secondary Functions / Derivative functions : Store of value, deferred payment, Transfer of Value / Purchasing Power. Types of money : Fiduciary money, fiat money, commodity money, legal tender money and cryptocurrency.

Explanation: Banking Terms: Assets – Any personal possessions of value (cash, real estate and investments). CASA Deposit – Deposit in bank in current and Savings. Coverage Ratio – Equity minus net NPA divided by total assets minus intangible assets. Net Interest Margin – Net interest income divided by average interest earning assets.

Explanation: Earning interest on deposits: It is paid by a bank or financial institutions to account holders who have deposited with them.