Economy

Demand-Pull Effect The demand-pull effect states that as wages increase within an economic system (often the case in a growing economy with low unemployment), people will have more money to spend on consumer goods. This increase in liquidity and demand for consumer goods results in an increase in demand for products. As a result of … Read more DMPQ- Explain the Non-monetary theories of inflation

When in an economy aggregate demand falls short of aggregate supply at full employment level, i.e. the production is more than the demand, the demand is said to be deficient demand and the gap is called deflationary gap. Causes of the deflationary gap are: Fall in aggregate demand (AD) due to: Fall in exports (global … Read more DMPQ-What is deflationary gap? Write down the causes and impact of deflationary gap?

The  major reasons are: Rise in Prices and galloping inflation. It surged from 6.7% to near about 16% Increase in the Fiscal deficit. Increase in non -development expenditure. Adverse Balance of payment and pressure on Balance of Payment. Iran-Kuwait war led to increase in Petrol price and hence pressure on Indian Imports. Adopted approach of … Read more DMPQ:Economic reforms of 1991 was the major landmark in Indian Economic History. Outline the reasons which forced India for economic reforms.

Monetary policy is made by the central bank to manage money supply to achieve specific goals- such as constraining inflation, maintaining an appropriate exchange rate , generating jobs etc.   There are basically two types of monetary policies. They are expansionary and contractionary.   Expansionary: This means increase in the total supply of money in … Read more DMPQ: What is a monetary policy? What are its types? List down the objectives of monetary policies.

:  It is a web-based software application developed and implemented by the Office of Controller General of Accounts (CGA).  Its coverage includes Central Sector and Centrally Sponsored Schemes as well as other expenditures including the Finance Commission Grants. Advantages of PMFS:  Better monitoring of funds and transparency: It establishes a common electronic platform for complete tracking … Read more DMPQ: What is Public financial management system? Discuss its advantages. ( economy)

The development of small scale industrial sector has been one of the major planks of India‟s economic development strategy since independence. India accorded high priority to this sector from the very beginning and pursued support policies to make these enterprises viable and vibrant. Despite numerous protection and policy measures for the past so many years … Read more DMPQ: What are the opportunities and challenges confronting the Indian small scale industrial sector in the era of globalization

India is mainly a rural country. Nearly 68% of the people reside in the rural area. The reasons for rural poverty are multi dimensional. The reasons are social, economical, geographical.   Economic cause Low agricultural productivity. Over reliance on agriculture.( quote the data) Unequal distribution of land and other assets Decline of Village industries Immobility … Read more DMPQ: If poverty is a problem, rural poverty poses a greater threat . In this context discuss the reasons for rural poverty.

Featuring the new Global Competitiveness Index, the Report assesses the competitiveness landscape of 140 economies, providing unique insight into the drivers of economic growth in the era of the Fourth Industrial Revolution. Current position of india The country’s favourable demographic has earned it a rank of 58 among 140 countries in the World Economic Forum’s … Read more DMPQ- Critically analysis India’s performance in Global Competitiveness Index

RBI thus has certain quantitative and qualitative tools through which it manages  liquidity and they are as follows: Cash Reserve Ratio (CRR) Every bank has to retain a certain percentage of its  demands and time liabilities in cash with the RBI which can be raised by the RBI to  drain out excess liquidity or reduced … Read more DMPQ- Discuss the various quantitative and qualitative measures implemented by RBI to manage liquidity in market.

Tax Revenue: Union Excise Duties: They are, presently, by far the leading source of revenue for the Central Government and are levied on commo­dities produced within the country, but exclu­ding those commodities on which State excise is levied (viz., liquors and narcotic drugs). The most important commodities from the revenue point of view are sugar, … Read more DMPQ- Mention the various Tax revenue of Government.