The main functions of money are distinguished as: a medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment. Any item or verifiable record that fulfils these functions can be considered as money. Money is an economic unit that functions as a generally recognized medium of exchange for transactional purposes in an economy. Money provides the service of reducing transaction cost, namely the double coincidence of wants.

The term economic planning is used to describe the long term plans of the government of India to develop and coordinate the economy with efficient utilization of resources. Economic planning in India started after independence in the year 1950, it was deemed necessary for economic growth and development of the nation.

Long term objectives of Five Year Plans in India are:

• High Growth rate to improve the living standard of the residents of India.
• Economic stability for prosperity.
• Self-reliant economy.
• Social justice and reducing the inequalities.
• Modernization of the economy.

Human capital formation is the process of adding to the stock of human capital over a period of time.

Sources of human capital formation.
(i) Expenditure on education.
(ii) Expenditure on health.
(iii) On the job training.
(iv) Study programmes for adults.
(v) Migration and expenditure on information.

Tax Revenue will include receipts from direct tax which in the form of income tax is paid to the government. ... Non-tax Revenue will also include the dividend income which the government receives as a shareholder of the various public sector undertakings.

According to the findings in the report, India's average economic growth between 1970 and 1980 has been 4.4%, which rose by 1 percentage point to 5.4% between the 1990 and 2000. The major structural changes of opening India's economy led to an impressive average growth of 8.8% between 2000 and 2010. When India declared its independence in 1947, its GDP was a mere 2.7 lakh crore accounting for a paltry 3 per cent of the world's total GDP. In 2018, India leapfrogged France to become the fifth largest economy in the world, now behind only the United States, China, Japan, and Germany.

• Industrialization is the marked transformation of a society from agrarian to manufacturing or industrial.
• Industrialization contributes to negative environmental externalities, such as pollution, increased greenhouse gas emission, and global warming.
• The separation of capital and labor creates a disparity in incomes between laborers and those who control capital resources.
• Industrialization also contributes to the deterioration of health among workers, crimes, stress, and other societal problems.

GDP (gross domestic product) at market price = value of output in an economy in the particular year – intermediate consumption at factor cost = GDP at market price – depreciation + NFIA (net factor income from abroad) – net indirect taxes. The market value of all finished goods + the market value of all finished services - the depreciation of those goods and services = net national product. The gross national product - depreciation = net national product.

To achieve sustainable development, the following needs to be done:

(i) Limiting the human population.
(ii) Technological progress should be input efficient and not input consuming.
(iii) Renewable resources should be extracted on a sustainable basis, that is, the rate of
extraction should not exceed rate of regeneration.
(iv) For non-renewable resources, rate of depletion should not exceed the rate of creation of renewable substitutes.
(v) Inefficiencies arising from pollution should be corrected.

Following are some of the most common solutions to the environmental issue:

1. Replace disposal items with reusable items.
2. The use of paper should be avoided.
3. Conserve water and electricity.
4. Support environmental friendly practices.
5. Recycle the waste to conserve natural resources.

Sustainable development is that process of development which meets the needs of present generation without reducing the ability of future generation to meet their own needs.

Strategies for Sustainable Development.

(i) Use of non-conventional sources of energy.
(ii) Use of cleaner fuels: LPG, Gobargas in rural areas and CNG in Urban areas.
(iii) Use of Solar energy and wind power.
(iv) Shift to organic farming.
(v) Recycle the wastes
(vi) Public means of transport.
(vii) Traditional knowledge and practices.
(viii) Establishment of Mini-Hydel plants.
(ix) Biopest Control

Some of the factors responsible for land degradation is

(i) loss of vegetation occurring due to deforestation.
(ii) Forest fires and over grazing.
(iii) Improper crop rotation.
(iv) Encroachment into forest lands.
(v) Shifting cultivation.
(vi) Indiscriminate use of agrochemical such as fertilizers and pesticides.
(vii) Improper planning and management of irrigation systems.
(viii) Extraction of ground water in excess of the recharge capacity.
(ix) Poverty of the agriculture-dependent people.
(x) Non-adoption of adequate soil conservation measures.

Land degradation means decrese in the quality of the land .such that its nutrients and fertility is lost and is in incapable of growing crops.

The causes of Land degradation are:-

1) Soil pollution.

2) Soil Erosion.

3) Over grazing.

4) Extraction of minerals.

5) drought, cyclone can also weaken the soil

The environment is able to perform these functions without any interruption as long as demand on these functions are within its carrying capacity.

Carrying capacity implies two things:

(i) Resource extraction should remain below the rate of resource regeneration.
(ii) Generation of wastes should remain within the absorption capacity of the environment.

If these two conditions are not fulfilled, then environmental crisis occurs.

Global warming is a gradual increase in the average temperature of the earth’s lower atmosphere.
Global warming is caused by man-made increase in carbon dioxide (Co₂) and other greenhouse gases through the burning of fossil fuels and deforestation.

Some of the long term results of global warming are as follow:
(i) Melting of polar ice with a resulting rise in sea level and coastal flooding.
(ii) Extinction of species as ecological niches disappear.
(iii) more frequent tropical storms and
(iv) An increased incidence of tropical diseases.

Air pollution is responsible for major harmful effects on human health, animal lives, natural ecosystems and the man-made environment. It is also responsible for climate change due to the enhanced greenhouse effect, acid rain, and the depletion of the ozone layer that constitute important global environmental problems. Air pollution can damage crops and trees in a variety of ways. Ground-level ozone can lead to reductions in agricultural crop and commercial forest yields, reduced growth and survivability of tree seedlings, and increased plant susceptibility to disease, pests and other environmental stresses (such as harsh weather).

Land degradation refers to a decline in the overall quality of soil, water or vegetation condition, commonly caused by human activities.

Some of the factors responsible for land degradation is

(i) loss of vegetation occurring due to deforestation.
(ii) Forest fires and over grazing.
(iii) Improper crop rotation.
(iv) Encroachment into forest lands.
(v) Shifting cultivation.
(vi) Indiscriminate use of agrochemical such as fertilizers and pesticides.
(vii) Improper planning and management of irrigation systems.
(viii) Extraction of ground water in excess of the recharge capacity.
(ix) Poverty of the agriculture-dependent people.
(x) Non-adoption of adequate soil conservation measures.

Three major systems of land revenue collection existed in India. They were – Zaminidari, Ryotwari and Mahalwari.

1. Zamindari System was introduced by Cornwallis in 1793 through Permanent Settlement Act.
2. Ryotwari System was introduced by Thomas Munro in 1820.
3. Mahalwari system was introduced in 1833 during the period of William Bentick.

False .Only expected obsolescence is considered as an element of depreciation. Loss of value of fixed assets owing to unexpected obsolescence is called capital loss.

Read more on Sarthaks.com - https://www.sarthaks.com/407762/unexpected-obsolescence-is-an-element-of-depreciation-true-or-false-explain-with-reason

Features of Demonetization are:

1. Measure of tax administration- black money holders had to declare the unaccounted wealth and pay taxes at penalty rates

2. Measure to avoid tax evasion- indicating the government will not tolerate tax evasion 

3. Measure of channelizing savings into the financial system- by depositing money in banks

4. Create ‘cash-less’ or ‘cash-lite’ economy- for increasing financial savings and reducing tax evasion

In simple words, means that Reserve Bank of India has withdrawn the old Rs 500 and Rs 1000 notes as an official mode of payment. Demonetization 2016 is the act of Banning /taking back of a currency unit of its status as legal tender. Demonetization is necessary whenever there is a change of national currency. The old unit of currency must be retired and replaced with a new currency unit.
 

 Reason for Demonetisation 2016

1. To tackle black money in the economy.
2. To lower the cash circulation in the country which “is directly related to corruption in our country,” according to PM Modi.
3. To eliminate fake currency and dodgy funds which have been used by terror groups to fund terrorism in India.
4. The move is estimated to scoop out more than more than Rs 5 lakh crore black money from the economy, according to Baba Ramdev, a staunch Modi supporter.

Developed nations benefit under globalization as businesses compete worldwide, and from the ensuing reorganization in production, international trade, and the integration of financial markets. The key findings are: both the developing and developed countries could be benefits from the process of globalization. However, because the advantages such as technology, education, finance and management, the growth rapid of developed country is much higher than developing country.

Ex-ante investment refers to the desired investment or planned investment during the period of one year. This is the investment expenditure which is intended to be made in the economy during the period of one year.

Ex-post investment refers to the actual investment in the economy during the period of one year. This aspect of investment is considered in the calculation of National Income.

Ex-ante savings refers to the desired savings or planned savings during the period of one year. This is the savings which is intended to be made in the economy during the period of one year.

Ex-post savings refers to the actual savings in the economy from the given level of income during the period of one year. This aspect of savings is considered in the calculation of National Income.

<font face="Helvetica, sans-serif"><font style="box-sizing: border-box;">Ex-ante savings and Ex-ante investment are not always equal because at different level of income Aggregate demand is not equal to aggregate supply</font></font>

Income Method.Income method measures national income from the side of payments made to factors of production in the form of rent, wages, interest and profit for their productive services in an accounting year.
Under income method, national income is calculated by adding up factor incomes generated by all the producing units located within the domestic economy during a period of account. The resulting total is called Domestic Income or Net Domestic Product at FC (NDP_fc). Further by adding 'net factor income from abroad' to domestic income, we get National income (NNP_fc). In income method, national income is measured at the stage when factor incomes are paid out by enterprises to factors of production. Since net value added by an enterprise is the result of services of factors of production, therefore, the same is distributed as factor income in the form of rent, wages, interest and profit among factors. Thus factor income and value added are one and the same thing.

Public revenue refers to the income or earnings of the government of any country. The following are two important sources of government income:

1. Tax revenue: Tax revenue is the most important source of income for the government. A tax is a compulsory payment imposed on individuals or companies by the government to meet expenditures.
2. Non-tax revenue: Revenue to the government from sources other than taxes is known as non-tax revenue. It is collected in order to provide administrative services to the people.

The governmenthas launched various poverty alleviation schemes to control poverty in rural areas . Some of them are:

1. National Rural Employment Guarentee act (NREGA) 2005 : It was passed in September 2005 . The act provides 100 days assured employment every year to every rural household in 200 districts . Later, the scheme will be extended to 600 districts . One third of the proposed jobs would be reserved for women . Under the programme if an applicant is not provided employment within fifteen days ,he/she will be entitled to a daily unemployment allowance.                                                                                                                          
2. National Food for Work Programme ( NFWP) : It was launched in 2004 in 150 most backward districts of the country . The programme is open to all rural poor , whoare in need of wage employment , and desire to do manual unskilled work .                                                                                                                      
3. The Prime Minister Rozgar Yojana (PMRY) : it was started in 1993. The aim of the programme is to create self employment opportunities for the educated unemployd youth in rural areas and small towns . They are helped in setting up small business and industries.                                                                
4. Swaranjayanti Gram Swarozgar Yojana (SGSY) : It was launched in 1999 . The programme aims to bringing the assisted poor families above the poverty line by organising them into self - help groups through a mix of blank credit and government subsidy .                                                                                      
5. Pradhan Mantri Gramodaya Yojana (PMGY) : It was launched in 2000 , additional central assistance is given to states for basic services such as primary health, primary education , rural shelter , rural drinking water and rural electrification .

Agricultural Sector on the Eve of Independence
India’s agricultural sector (on the eve of independence) exhibited three principal characteristics, these characteristics pointed to backwardness of India’s agriculture as well as its stagnation

• Low level of productivity
• High degree of vulnerability
• A wedge between owners of the soil and tillers of the soil.

Factors causing backwardness and stagnation of Indian agriculture during the British rule

• Land revenue settlement under the British Raj
• Forced commercialisation of agriculture