Inventory is a quantity of goods owned and stored by a business that is intended either for resale or as raw materials and components used in producing goods that the business sells. For example, motherboards warehoused at a computer company to be used in the assembling of its computer systems are inventory. Inventory is an accounting term that refers to goods that are in various stages of being made ready for sale, including: Finished goods (that are available to be sold) Work-in-progress (meaning in the process of being made) Raw materials (to be used to produce more finished goods)

Fixed capital assets (like machinery, building) depreciate in value in the process of production. Simply put, depreciation means loss of the value of fixed capital assets during production. In other words, depreciation is the value of existing capital stock that has been consumed (used up) in the process of producing output.

Fall in value of fixed assets due to normal wear and tear, and expected obsolescence is called consumption of fixed capital. This is sometimes also called current replacement cost. The loss of value in capital goods is mainly due to two reasons : (i) normal wear and tear, and (ii) expected obsolescence. 

Co-operative Credit Societies- This source of credit is the most economical and important source of rural credit. It was set up with the aim of facilitating the complete credit needs for small and medium farmers. Co-operative Credit Societies progressed steadily after a few years for inception. Financial institutions are among the best sources of credit, especially when it comes to personal loans, student loans, mortgages, personal lines of credit, overdraft protection and credit cards.

The circular flow of income. A model which illustrates the flow of goods, services, resources ad income between the different sectors of the economy. The circular flow of income is a way of representing the flows of money between the two main groups in society - producers (firms) and consumers (households). ... On the scale of the whole economy, this is known as national income - the total amount of income earned over a given time period. The circular flow of income represents money moving through the economy. It shows how households purchase goods and services from firms by using the income they earned from firms by working for them. Firms use factors such as capital, labor, and land from households so they can produce the goods households purchase.

The circular flow of income. A model which illustrates the flow of goods, services, resources ad income between the different sectors of the economy. The circular flow of income is a way of representing the flows of money between the two main groups in society - producers (firms) and consumers (households). ... On the scale of the whole economy, this is known as national income - the total amount of income earned over a given time period. The circular flow of income represents money moving through the economy. It shows how households purchase goods and services from firms by using the income they earned from firms by working for them. Firms use factors such as capital, labor, and land from households so they can produce the goods households purchase.

Schemes undertaken by the Government of India to eradicate poverty:

i. National Rural Employment Guarantee Act, 2005: In this scheme, the State Governments have to provide at least 100 days of guaranteed wage employment in every financial year to every household whose adult members volunteer to do unskilled manual work. 1/3rd of the proposed jobs are reserved for women. If work is not provided within a 15-day period, then the applicant is eligible for unemployment allowance by the State Governments.

ii. Swarnajayanti Gram Swarozgar Yojana:This was launched in 2000 to reduce the levels of poverty in India. Under this scheme, the Central Government provided financial assistance to the states for the fulfilment of necessities such as primary health and education. It also aims to provide clean drinking water in the rural areas and to provide shelter to the poor. 

The four components of aggregate expenditure are household consumption, denoted by “C,” plus investments (“I”), plus government spending, plus net exports (“NX”). It measures the aggregate spending activities of the overall economy and is also referred to as Gross Domestic Product (GDP). There are four components of Aggregate Demand (AD); Consumption (C), Investment (I), Government Spending (G) and Net Exports (X-M). Aggregate Demand shows the relationship between Real GNP and the Price Level.

Nominal Gross Domestic Product is GDP evaluated at present market prices. GDP is the financial equivalent of all the complete products and services generated within a nation’s in a definite time. Nominal varies from real GDP, and it incorporates changes in cost prices due to an increase in the complete cost price. Generally, economists utilize a gross domestic factor to change nominal GDP to real GDP also known as current dollar GDP or chained dollar GDP.

WTO stands for World Trade Organisation.

(i) It is the successor of GATT from January 1995. It is only international organisation dealing with the global rules of trade between nations.

(ii) It sets the rules for the global trading system and resolves disputes between its member nations.

(iii) WTO also covers trade in services, such as telecommunication and banking, and others issues such as intellectual property rights.

Currency appreciation usually reduces inflation because imports become cheaper and the lower prices lead to lower inflation. It makes imports more attractive, causing the demand for local products to fall. Local companies usually have to cut costs and increase productivity so they can remain competitive. Currency appreciation is an increase in the value of one currency in relation to another currency. Currencies appreciate against each other for a variety of reasons, including government policy, interest rates, trade balances and business cycles.

C. Moral Suasion:

Moral suasion refers to the persuasion and pressure which central bank exert on the member banks in order to follow its directives. These are generally not ignored by the member banks as it comes directly from the upper authority. The banks are advised to restrict the flow of credit during inflation and be liberal in lending during deflation

B. Rationing of Credit:

Rationing of credit refers to fixation of credit quotas for different business activities which is introduced when the flow of credit is to be checked particularly for speculative activities in the economy.

A. Margin Requirement:

Margin requirement refers to the difference between the current value of the security offered for loan (called collateral) and the value of loan granted. It is a qualitative method of credit control adopted by the central bank in order to stabilize the economy from inflation or deflation

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Yes, it is important to increase the area under irrigation because water is very essential for agriculture. In India, the rainfall is unevenly distributed in the country and if rainfall is less, then production will be low, and they will be only able to grow one crop in a season.   With good irrigation it will be possible to do multiple cropping, helping to increase the yield per hectare.  

Pradhan Mantri Sadak Yojna
PMGSY launched on 25th December 2002 was a fully Central Sponsored Scheme. The objective of this scheme was to construct roads connecting the rural and urban centres through quality roads. This generated employment for rural labourers and lead to infrastructure development.

Jawahar Gram Samriddhi Yojna
Launched in 1999, JGSY aimed at creating demand-driven infrastructure in the village, for the use of village community. Secondly, it aimed at creating an additional source of employment for the rural populace. The scheme is prepared and implemented by Village Panchayat.

Indira Aawas Yojna
This is the flagship rural housing scheme introduced by the Government. Under this scheme, states were to provide shelter to those below the poverty line. The objective was to create new accommodation for the poor construction of new houses as well as by converting the unserviceable kuchha houses into pucca and semi-pucca houses

Following are some of the poverty alleviation policies introduced by the government:

National Rural Employment Guarantee Act
Also known as NREGA, this is the flagship programme of Government directly touching lives of the poor and promoting inclusive growth. It aims at enhancing the general livelihood of the rural people by guaranteeing at least a 100 days of employment in a financial year to adults of the household who are willing to do unskilled labour. It was enforced on 2nd February 2006 and implemented in phases. Today it is indeed one of the largest employment generating scheme of the government.

Sampoorna Grameen Rozgar Yojna
SGRY was launched in the year 2001 by way of merging two ongoing schemes- EAS and JGSY. The objective was to provide additional food security and wage employment to the rural sector. It also helped in creating durable community assets for the rural people. The program targeted poor with special emphasis on women, SCs, STs and parents of children withdrawn from hazardous industries.

National Food For Work Programme
This programme was launched in November 2004 in 150 backward districts of the country that were identified by the Planning Commission. The aim of this project was to offer additional sources for rural employment apart from SGRY to these 150 districts. This scheme was entirely sponsored by the Central Government. Since then the program has been merged with NREGA, identifying in total 200 districts to implement the scheme.