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Ask QuestionPosted by Anjali Verma 4 years, 1 month ago
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Lhakpa Choden 4 years ago
Posted by Saima Afreen 4 years, 1 month ago
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Sia ? 4 years, 1 month ago
The gross demand for a good is the amount of the good that the consumer actually ends up consuming: how much of each of the goods he or she takes home from the market.
Posted by Sneha Chourasiya 4 years, 1 month ago
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Aditya Mishra 4 years, 1 month ago
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Preeti Dabral 4 years ago
The Twelfth Finance Commission of India was appointed on 1 November 2002 to make recommendations on the distribution of net proceeds of sharable taxes between union and states. The commission was headed by veteran economist of India, C. Rangarajan.
Posted by Arshpreet Kaur 4 years, 1 month ago
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Arshpreet Kaur 4 years, 1 month ago
Posted by Arshpreet Kaur 4 years, 1 month ago
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Sia ? 4 years, 1 month ago
So higher foreign income leads to higher exports. They depend also on the real exchange rate: The higher the price of domestic goods in terms of foreign goods, the lower the foreign demand for domestic goods. An increase in foreign income, Y ∗, leads to an increase in exports.
Posted by Sarita Yadav 4 years, 1 month ago
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Sia ? 4 years, 1 month ago
Fall in standard of living of the population of the nation over the years
Posted by Sunil Choudhary 4 years, 1 month ago
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Sia ? 4 years, 1 month ago
The Central Bank acts as a controller of money supply and credit, using the following methods:
- Margin requirement: Changes in margin requirements are designed to influence the flow of credit against specific commodities. The commercial banks generally advance loans to their customers against some security or securities offered by the borrower and acceptable to banks. More generally, the commercial banks do not lend up to the full amount of the security but lend an amount less than its value. The margin requirements against specific securities are determined by the Central Bank. A change in margin requirements will influence the flow of credit. A rise in the margin requirement results in a contraction in the borrowing value of the security and similarly, a fall in the margin requirement results in an expansion in the borrowing value of the security.
- Open market operations: Under open market operations, RBI purchases or sells government securities to the general public for the purpose of increasing or decreasing the stock of money in an economy. The purchase or sale of securities controls the money in the hands of the public as they deposit or withdraw the money from Commercial Banks.
Thus, money creation by Commercial Banks gets affected. Suppose, the Central Bank purchases securities of Rs.1,000 from a bondholder with issuing a cheque. The seller of the bond produces this cheque of Rs.1,000 to his Commercial Bank. The Commercial Bank credits the account of the seller by Rs.1,000 and the deposits of the bank go up by Rs.1,000, which increase the credit creation capacity of the banks. Thus, the purchase of security increases the money creation of Commercial Banks and similarly, the sale of securities decreases the credit creation of Commercial Banks. Thus, the Central Bank controls the process of money creation by Commercial Banks by open market operations.
Posted by Gaurav Tripathi Tripathi 4 years, 1 month ago
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Rifat Bano 4 years ago
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Shrianshika Saini 4 years, 1 month ago
Posted by Gaurav Tripathi Tripathi 4 years, 1 month ago
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Lhakpa Choden 4 years ago
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Shrianshika Saini 4 years, 1 month ago
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Rifat Bano 4 years ago
Ashish Singh 4 years, 1 month ago
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Musicophile ❤️? 4 years, 1 month ago
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Jay Wardhan 4 years, 1 month ago
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Sia ? 4 years, 1 month ago
- Microeconomics studies the particular market segment of the economy, whereas Macroeconomics studies the whole economy, which covers several market segments.
- Microeconomics assumes all the macro variables to be constant as national Income, consumption, saving, etc, whereas Macroeconomics assumes that all tile micro variables to be constant as households, firms, prices of Individual products, etc.
- Microeconomics deals with an individual product, firm, household, industry, wages, prices, etc., while Macroeconomics deals with aggregates like national income, national output, price level, etc.
Posted by Vyom . 4 years, 2 months ago
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Sanket Sur 4 years, 2 months ago
Musicophile ❤️? 4 years, 2 months ago
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Sia ? 4 years, 1 month ago
The only factor which can ensure higher productivity in agriculture in rural economy is Capital. It can grow only if it has an adequate flow of finance. Provision of rural credit enables a farmer to buy fertilisers, improved seeds of organic pesticides and equipment. All these inputs help him to increase his agricultural productivity and income. Credit is the lifeline of farming activity. Because:
- Most farming families in India are small and marginal holders, producing just enough for subsistence. They seldom generate surplus for further investment.
- Gestation period between sowing and harvesting is quite long. This necessitates borrowing for the purchase of inputs.
So, the importance of credit in rural development can be perceived as a means to break the vicious circle of low capital, low productivity and low savings of the rural poor.
Posted by Muskan Prajapati 4 years, 2 months ago
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Musicophile ❤️? 4 years, 1 month ago
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Sia ? 4 years, 1 month ago
Promoting privatisation is the objective of new economic policy. Privatization refers to giving greater role to private sector by reducing the role of public sector. It may also mean de-reservation of industries previously reserved for public sector.
Posted by Vanshita Sharma 4 years, 2 months ago
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Sia ? 4 years, 1 month ago
There can be many reasons behind rise of price in India. Like:
2Thank You