Table of Content - Economics
1. Introduction
2. Inflation
3. Monetary Policy
4. Banking System of India
5. Money Market
6. Capital Market
7. National Income
8. Fiscal System
9. Taxation
10. Foreign Investment and Trade
11. Balance of Payment
12. Agriculture
13. Industry
14. International Organisation
Inflation
Inflation
Types of Inflation
Based of Cause Based of Rate
Demand Pull Creeping Inflation
Inflation
Walking Inflation
Cost Pull Inflation
Runaway Inflation
Structural Inflation
Galloping Inflation
Hyperinflation
Key Terms
Deflation
Deflation
Reflation
Shrinkflation & Skimpflation
Wage Price Spiral / Inflation Spiral
Inflation Tax
Stagflation
Calculation of Inflation
Producer Price Index
Whole Price Index
Consumer Price Index
Monetary Policy
Monetary Policy
Net Demand and Time Liability - NDTL
Tools/Instruments of Monetary Policies
● Traditional tools
● Non-Traditional tools
Quantitative Tools:
Cash Reserve Ratio - CRR Repo Rate
● Incremental CRR ● Overnight Repo
● Term Repo
Statutory Liquidity Ratio - SLR Reserve Repo Rate
● Government Securities
Open Market Operations - OMO Marginal Standing Facility - MSF
● Market Stabilization
Scheme
● Operation Twist
● G-SAP
Bank Rate Standing Deposit Facility - SDF
● Liquidity Adjustment
Facility
Policy Corridor / LAF Corridor
Base Points
Haircut
Cheap Money Policy & Dear Money Policy
Liquidity Trap
Fed Tapering
Monetary Policy Committee
Qualitative Tools
● Moral Suasion
● Credit Rationing
● Modify the Margins
Non-Traditional Money
1. Helicopter Drop / Money
2. Helicopter Hoover
3. Negative Interest Rate
Targeted Long term Repo Operation - TLTRO
Loan at:
● Fixed Rate of Interest
● Floating Rate of Interest
Teaser Loan
Syndicated Loan
Prime Lending Rate
Base Rate
Marginal Cost of Funds Based Lending Rate (MCLR)
Repo Linked Lending Rate (RLLR)
Exchange Rate Determination of Domestic Currency
1. Clean float system / Free float system
2. Dirty float system / Managed float system
3. Pegged System
Banking System
Banking System in India
Responsibilities of RBI
A Brief History of Banking in India
History of Nationalisation of Banks in India
Mechanism used in order to print Fresh Currency
Classification of Banks
Narasimham Committee on Banking Sector Reform
Rules Related to Foreign Investment in Banking Sector India
Guidelines related to establishment of Commercial Banks in India
Priority Sector Lending - PSL
Priority Sector Lending Certificate
Twin Balance Sheet Problem
Non-Performing Asset (NPA)
Deposit Insurance and Credit Guarantee Corporation - DICGC
CIBIL and PCR
Wilful Defaulter
Asset Reconstruction Companies (ARCs)
Prompt Corrective Actions
Mission Indradhanush 2.0
Financial Services Institutions Bureau (FSIB)
NBFCs
Islamic Bank
Digital Banking Units
SHGs and MFIs
Financial Inclusion
Measures Adopted to achieve to goal of financial Inclusion
MUDRA Scheme
MSMEs
Pradhan Mantri Jan Dhan Yojana
Nachiket Mor Committee Report
● Guidelines for establishment of Payment Banks
● The guidelines for establishment of Small Finance Banks
EXIM Bank
Sovereign Gold Bond Scheme
Gold Monetization Scheme
80:20 Scheme
5:20 Scheme
Domestic Systemically Important Banks and NBFCs
Classifications of NBFCs
RBI Banking Ombudsman
Core Banking Solution
Merchant Discount Rate
RTGS, NEFT, IMPS, UPI (BHIM)
National Payment Corporation of India (NPCI)
FASTag / National Electronic Toll Collection (NETC)
e-Rupi
National Automated Clearing House (NACH)
NABARD
Types of ATMs
Kisan Credit Card (KCC)
SWIFT
Nostro and Vostro Account
Basel Norms
Narasimham Committee - II
Neo Banking
Money Market
Money Market
● Participants
Types of Borrowings in Money Market
Government Securities in the form of Bills
● Normal Government Securities
● Treasury Bills
Certificate of Deposit
Commercial Papers
Velocity of Money
Calculation of Liquidity
Money Multiplier
Near Money
Negotiable Instruments
Capital Market
Capital Market
Government Securities in the form of Bonds
Bond Price & Bond Yield
Industrial Securities in the form of Share & Debentures
Stock Exchange
● National Stock Exchange (NSE)
● Bombay Stock Exchange (BSE)
NIFT-50 & SENSEX
Classification of Stock Market
● Primary Market
○ Initial Public Offering (IPO)
○ Follow on Public Offer (FPO)
○ Rights Issue
● Secondary Market
Application Supported by Blocked Account (ASBS)
Social Stock Exchange
Terms Related to Stock Exchange
● Market Capitalization
● Blue Chip Companies
● Bulls and Bears
● Stag
● Insider Trading
● Circular Trading
● Hostile Bidding
● IPO Financing
● Rolling Settlement
● Beta Value
● Employees Stock Ownership Plan (ESOP)
● Equity Shares and Preferential Shares
● Angel Investors and Venture Capitalists
● Front Running
● Sweat Equity
● Anchor Investors
● Arbitrage
● Alpha Value
Mutual Fund
● Schemes
○ Close-ended
○ Open-ended
● Different ways
○ Lump-sum investment
○ Systematic Investment Plan (SIP)
Exchange Traded Funds (ETF)
Real Estate Investment Trust & Infrastructure Investment Trust
(REITs & INVITs)
Foreign Portfolio Investment
● Foreign Institutional Investment (FII)
● Qualified Foreign Investment (QFI)
Participatory Notes (P-Notes)
Major Stock Indices
Germany → DAX ; France → CAC ; Britain → FTSE ; Italy → MIBTEL ;
Australia → All Ordinaries ; Brazil → BOVESPA ; Russia → MOEX ;
Japan –.NIKKEI ; Hong Kong → Hang Sang ; China → Shanghai Composite ;
South Korea → KOSPI ; Singapore → Straits Times
● American Depositary Receipt (ADR)
● Global Depositary Receipt (GDR)
● Indian Depositary Receipt (IDR)
Factors Influencing the Share Market
Debentures
● Non-convertible Debentures
● Fully-convertible Debentures
● Semi- convertible Debentures
Bharat Bond Exchange Traded Fund
Bonds
● Perpetual Bond
● Additional Tier-1 (AT 1) Bond
● Sovereign Green Bonds
● Blue Bonds
● Municipal Bonds
● Inflation-Indexed Bond
● Masala Bonds
Insurance Sector
Controversy Between IRDAI and SEBI
Commodity Trading
Negative Oil Prices
Depository
● Central Depository Service Limited (CDSL)
● National Securities Depository Limited (NSDL)
Universal Exchange
Bitcoin / Crypto Currency
● Reasons behind the popularity of Crypto Currencies
● Concerns associated with Crypto Currencies
● Non-Fungible Token (NFT)
Central Bank Digital Currency (CBDC)
Derivatives
P2P Lending (Peer to Peer Lending)
Credit Rating Agency
Insolvency and Bankruptcy Code (IBC)
National Income
Gross Domestic Product (GDP)
● Types of GDP
○ Nominal GDP / GDP at Market Price / GDP at Current Price
○ Real GDP / GDP at Constant Price / GDP at Base Price
○ GDP at Factor Cost
Hindu Rate of Growth
Technical Recession
Gross National Product (GNP)
Net National Product (NNP)
Per Capita GDP
Per Capita Income
Gross National Happiness
Green GDP
Purchasing Power Parity (PPP)
GDP Deflator
Potential and Actual GDP
Nominal Effective Exchange Rate (NEER)
&
Real Effective Exchange Rate (REER)
Calculation of National Income
● On the Basis of Income Method
● On the Basis of Expenditure Method
New method of GDP Calculation
Fiscal System
Fiscal System
Changes Brought with respect to Budget in 2017
Receipts and Expenditure of Government
● Revenue
● Capital
Different Sources of Receipt and Expenditure
Deficits of the Government
1. Fiscal Deficit
2. Revenue Deficit
3. Primary Deficit
4. Effective Revenue Deficit
a. Effective Capital Expenditure
5. Monetised Deficit
Deficit Financing
Ways and Means Advances (WMA)
Fiscal Responsibility & Budget Management Act, 2023 (FRBM Act-2023)
Fiscal Activism & Pump Priming
Terms of Reference of 15th Finance Commission
Recommendations of 15th Finance Commission
Fiscal Consolidation
Income Distance
Off Budget Borrowing / Extra Budget Borrowing
16th Finance Commission
Financial Sector Legislative Reform Commission (FSLRC)
Public Debt Management Cell → PDMC
Status Paper on Government Debt
Types of Budgeting
Line Item Budget
Performance Budget & Outcome Budget
Zero Base Budgeting
Gender Budgeting
The merger of Rail Budget and General Budget
