7/1/2014 General Awareness - Economics Notes - Indian Economy - Part 2 | TNPSC Question Papers

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GENERAL AWARENESS - ECONOMICS NOTES - INDIAN ECONOMY - PART2

General Awareness - Indian Economy - Economics Notes for All

Competitive Exam - Part II

Balanced budget: A budget is said to be a balanced budget when current income is

same as current expenditure.

Balance of Trade: Refers to the relationship between the values of country's imports and

its export, i.e., the visible balance. These items only form part of the balance of payments

which are (a) invisible items and (b) movements of capital.

Budget Deficit: When the expenditure of the Govt. exceeds the revenue, the balance

between the two is the budget deficit.

Call Money: Is a loan that is made for a very short period of a few days only or for a

week. It sanctions with a low rate of interest. In case of stock exchange, the duration

length of the call money may be for a fortnight.

Cash Reserve Ratio: Refers to the ratio which banks have to maintain with the RBI as

certain percentage between their holdings of cash and their time liabilities.

Deflation: Decline in the general price level of goods and services leading to rise in the

value (purchasing power). A method of statistical conversion of a series of data to

compensate for the general rise in prices.

Devaluation: Official reduction in the foreign value of domestic currency. It is done to

encourage the country's export and discourage imports.

Direct Tax: Tax that cannot be shifted. The burden of direct tax is borne by the person on

whom it is initially fixed. Examples: Personalincome tax, Social Security tax paid by

employees.

Elasticity: The degree of responsiveness of quantity demanded or supplied to a change

in price.

Excise Tax: Tax imposed on the manufacture, sale or the consumption of different

commodities, such as taxes on textiles, fabric, cloth, liquor etc.

Fiscal policy: Government's expenditure and tax policy, an important means of

moderating the upswings and downswings of the business cycle.

Foreign Exchange: Claims on a countries by another, held in the form of currency of that

country. Foreign 'exchange system enables one currency to be exchanged for another

thus facilitation trade between countries.

Foreign Exchange Rate: Prices of the domestic currency in terms of foreign currencies.

Indirect taxes: Taxes levied on goods purchased by the consumer (and exported by the

producer) for which the tax payer's liabilities varies in proportion to the quantity of

particular goods purchased or sold.

Inflation: A sustained and appreciable increase in the price level over a considerable

period of time.

Laissez faire: The principle of non-intervention of government in economic affairs.

National Income (at factor cost): Total of all incomes earned or imputed to factors of

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7/1/2014 General Awareness - Economics Notes - Indian Economy - Part 2 | TNPSC Question Papers

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manufacturing, used in economic literature to represent the output or income of an

economy in a simple fashion.

Per Capita Income: Total GNP of a country divided by the total populace. Per capita

income is often used as an economic indicator of the levels of living and development. If

however, can be a biased index because it takes no account of income distribution.

Statutory Liquidity Ratio: The SLR is the ratio of cash in hands, exclusive of cash

balance maintained by ranks to meet required CRR, but no excess reserves.

Tariff (ad valorem): A fixed percentage tax on the value of an imported product, tax

levied at the point of entry into the importing country .

Tobin tax: Named after James Tobin, the Nobel prize winner for economics in 1981, a

global tax on capital transfers, which could raise possibly $250 billion from financial

markets worldwide. And this huge sum could be used to support the developing

economies of the third world. The revenue from the Tobin tax can also be used to write off

the third world countries debts.

Value Added Tax (VAT): This form of tax has been in operation in some countries. If

brings a value added tax, a tax levied on the values that is added to goods and services

turned out by the producers during stages of production and distribution.

Zero Based Budgeting: The practice of justifying the utility in cost benefit terms of each

government expenditure on projects. The ZBB technique, involves a serious review of

every scheme before a budgetary provision is made in its favour. This form of financial

planning is with an objective to ensure that every rupee spent is result oriented. If ZBB is

properly implemented it could help to reverse the trend of large deficits on the revenue

account of the Union Government.

Formation years of Major Financial Institutions in India

Imperial Bank of India - 1921

Reserve Bank of India (Nationalisation of RBI took place on Jan 1, 1949) - 1935

Industrial Finance Corporation of India - 1948

I CI CI - 1955

State Bank of India - 1955

Unit Trust of India - 1964

lOBI - 1964

NABARD – 1982

IRBI (Now it has been renamed as IIBIL since 1997) - 1985

SIDBI - 199O

EXIM BANK - 1982

National Housing Bank -1988

Life Insurance Corporation (LIC) - 1956

General Insurance Corporation (GIC) - 1972

Regional Rural Banks -1975

RCTF - Risk Capital and Technology Finance Corporation Ltd - 1975

Technology-Development & Information Co. of India Ltd - 1989

IL & FS - Infrastructure Leasing and Financial Services Ltd - 1988

HDFC - Housing Development Finance Corporation Ltd - 1977

Important Private BanksRegistered Office Established

UTI Bank Ltd Ahmedabad 1994

Indus Ind. Bank Ltd Pune 1994

ICICI Bank Ltd Vadodara 1994

Global Trust Ltd Secunderabad 1994

HDFC Bank Ltd Mumbai 1995

Centurian Bank Ltd Panaji (Goa) 1995

Bank of Punjab Limited Chandigarh 1995

Times Bank Limited Faridabad 1995

lOBI Bank Ltd Indore 1995

Development Credit Bank Ltd Mumbai 1995

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7/1/2014 General Awareness - Economics Notes - Indian Economy - Part 2 | TNPSC Question Papers

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Anonymous April 17, 2014 at 2:27 PM

Admin,Please update study materials for the poems and plays given in the syllabus of VAO

General ENGLISH.

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Ashok April 17, 2014 at 2:28 PM

Need materials for VAO General English poems and plays

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