Bank Rate refers to the rate at which the Central Bank lends money to the commercial bank or the rate at which the Central Bank discounts the bills of the commercial banks. This rate is also called the rediscount rate.

Direction of foreign trade means the countries which India exports and the country from which it imports. 

So, as per the textbook under the British rule the direction of India's foreign trade was mostly with Britain and few other countries  like China, Ceylon (Sri Lanka) and Persia (Iran). 

National Council of Education Research and Training is responsible to facilitate education in India.

Industrial policy reform envisaged mixed economy wherein public and private sector would coexist. It underlined the need for increased state participation in industrial progress. It called for assistance to small-scale industries and welcomed foreign capital. In 1991, the government announced a specified list of high technology and high-investment priority industries wherein automatic permission was granted for foreign direct investment (FDI) up to 51 percent foreign equity. The limit was raised to 74 percent and subsequently to 100 percent for many of these industries.

In order to attract foreign investors, special economic zones were set-up.

Special economic zones (SEZs) in mainland China are granted more free market-oriented economic policies and flexible governmental measures by the government of China, compared to the planned economy elsewhere. This allows SEZs to utilize economic management which is more attractive to foreign and domestic businesses.

John Maynard Keynes

The General Theory of Employment, Interest and Money was written by the English economist John Maynard Keynes. The book, generally considered to be his magnum opus, is largely credited with creating the terminology and shape of modern macroeconomics.

Functions of the RBI

• The issuer of Currency: The RBI is the only authorized body that can issue currency in the country. So they print, distribute and regulate the flow of currency in the economy.
• Banker to the Government: Even the Central and State government need basic banking functions. The RBI provides them with these facilities like depositing monies, remittances etc. It can also make advances and provide loans to the government whenever necessary.
• Banker to other Banks: The Reserve Bank of India also supervises all other commercial banks in the country. It provides financial assistance to these banks like short-term loans and advances. The RBI also will dictate interest rates and the CRR limits to the commercial banks.
• Regulator of Foreign Exchange: It is the function of the RBI to maintain the value of the rupee in the global economy. It does so by acting as the custodian of foreign exchange reserves in the country. It maintains enough reserves to battle against fluctuations.
• Controls Credit in the Economy: This can be said to be the primary function of the Reserve Bank of India, the control of credit and money in the market. It uses qualitative and quantitative methods to either expand or contract the available credit in the economy according to circumstances.

159 countries
Membership : 159 countries are currently members of the WTO. The following 24 countries are currently negotiating their WTO membership (by date of application). 31 accessions have been completed since the WTO was established in 1995.

Full question:

In the present COVID-19 times, many economists have raised their concerns that Indian economy may have to face a deflationary situation, due to reduced economic activities in the country. Suppose you are a member of the high powered committee constituted by the Reserve Bank of India (RBI). You have suggested that as the supervisor of commercial banks, ................ (restriction/release) of the money supply be ensured, by the Reserve Bank of India (RBI).

Answer:

release

This question is from 2020-21 sample paper

check here for paper and solution

Classical economics emphasizes the fact that free markets lead to an efficient outcome and are self-regulating. In macroeconomics, classical economics assumes the long-run aggregate supply curve is inelastic; therefore any deviation from full employment will only be temporary. The central idea of classical economics is that free markets are self-regulating.

Full employment is an economic situation in which all available labor resources are being used in the most efficient way possible. Full employment embodies the highest amount of skilled and unskilled labor that can be employed within an economy at any given time.

True full employment is an ideal—and probably unachievable—situation in which anyone who is willing and able to work can find a job, and unemployment is zero. It is a theoretical goal for economic policymakers to aim for rather than an actually observed state of the economy. In practical terms, economists can define various levels of full employment that are associated with low but non-zero rates of unemployment.

Circular flow of income in four-sector economy. Without introducing external sector (also called Rest of World — ROW), our model will remain incomplete. The domestic economy is connected with ROW through international trade (imports and exports) and capital flows. In case of imports, money flows to the ROW whereas in case of exports money flows in from ROW. Mind, imports are leakages and exports are injections into the circular flows of income in the economy. The four-sector model of the economy is fully depicted in Fig.(c).
Significance of circular flow of income (i) It reflects structure of an economy. (ii) It shows interdependence among different sectors. (iii) It gives information about injections and leakages from flow of money. (iv) It helps in estimation of national income and its related aggregates.

Consequences of Migration

Economic consequences

– A major economic benefit of migration is the remittance sent by migrants

– Remittance from the international migration are one of the major source of foreign exchange

– In 2002, India received US$ 11 billion as remittance from international migrants

– Punjab, Kerela, Tamil Nadu receive very important amount from their international migrants

– Remittance amount play an important role in the growth of economy

– Remittances are mainly used for food, repayment of debts, treatment, marriages,
children’s education, agricultural inputs, construction of houses, etc

– It works as a life blood economy for thousand of poor villages of Bihar, UP, Orissa, Andhra Pradesh, Himachal Pradesh

Some of the drawbacks of migration are

(i) unregulated migration to the cities has caused overcrowding

(ii) development of slums in industrially developed states such as Maharashtra, Gujarat, Karnataka, Tamil Nadu and Delhi

Demographic consequences

It leads to the redistribution of the population within a country

Rural-urban migration contribute to the population growth of cities

Adverse effect on the rural demographic structure i e on age and skill selective

Out- migration create imbalance in age and *** composition Eg in Uttaranchal, Rajasthan, Madhya Pradesh and Eastern Maharashtra

Social consequences

Migrants acts as agents of social change

New technology, family planning, girl’s education etc get diffused from Urban-Rural areas

It leads to intermixing of people from diverse culture

Drawbacks of migration are

(i) It create anonymity which creates social vaccum and sense of dejection among individuals

(ii) Dejection may motivate people to fall in the trap of anti-social activities like crime and drug abuse

Environmental consequences

Overcrowding of people due to rural-urban migration leads to unplanned growth of urban settlement

Formation of slums shanty colonies

Over exploitation of natural resources leads to acute problem of depletion of ground water, air pollution, disposal of sewage and management of solid wastes

Other consequences

Migration affects the status of women directly or indirectly

Male selective out migration leaving their wives behind puts extra physical as well mental pressure on the women