Process of Creation of Money:
The process of money creation by the commercial banks starts as soon as people deposit money in their respective bank accounts. After receiving the deposits, as per the central bank guidelines, the commercial banks maintain a portion of total deposits in form of cash reserves. The remaining portion left after maintaining cash reserves of the total deposits is then lend by the commercial bank to the general public in form of credit, loans and advances. Now assuming that all transactions in the economy are routed through the commercial banks, then the money borrowed by the borrowers again comes back to the banks in form of deposits. The commercial banks again keep a portion of the deposits as reserves and lend the rest. The deposit of money by the people in the banks and the subsequent lending of loans by the commercial banks is a never-ending process. It is due to this continuous process that the commercial banks are able to create credit money a multiple time of the initial deposits.
The process of creation of money is explained with the help of the following numerical example.

Suppose, initially the public deposited Rs 10,000 with the banks. Assuming the Legal Reserve Ratio to be 20%, the banks keep Rs 2,000 as minimum cash reserves and lend the balance amount of Rs 8,000 (Rs 10,000 – Rs 2,000) in form of loans and advances to the general public.
Now, if all the transactions taking place in the economy are routed only through banks then, the money borrowed by the borrowers is again routed back to the banks in form of deposits. Hence, in the second round there is an increment in the deposits with the banks by Rs 8,000 and the total deposits with the banks now rises to Rs 18,000 (that is, Rs 10,000 + Rs 8,000). Now, out of the new deposits of Rs 8,000, the banks will keep 20% as reserves (that is, Rs 1600) and lend the remaining amount (that is, Rs 6,400). Again, this money will come back to the bank and in the third round, the total deposits rises to Rs 24,400 (i.e. Rs 18,000 + Rs 6,400).
The same process continues and with each round the total deposits with the banks increases. However; in every subsequent round the cash reserves diminishes. The process comes to an end when the total cash reserves (aggregate of cash reserves from the subsequent rounds) become equal to the initial deposits of Rs 10,000 that were initially held by the banks. As per the above schedule, with the initial deposits of Rs 10,000, the commercial banks have created money of Rs 50,000.

Open Market Operations refer to the buying and selling of securities either to the public or to the commercial banks in an open market. Open Market operations refer to the buying and selling of securities in an open market, in order to affect the money supply in the economy. The selling of securities by RBI will wipe out the extra cash balance from the economy, thereby limiting the money supply resulting in controlled credit creation.
To summarise,
Selling of securities in the open market⇒ Extra Cash Balance↓⇒ Money supply ↓(Controlled Credit Creation)

Central bank functions as a banker to the government - both central and state governments. It carries out all banking business of the government. Government keeps their cash balances in the current account with the central bank. Similarly, central bank accepts and makes payment on behalf of the government.
Also central bank carries out exchange, remittance, and other banking operations on behalf of the government. Central bank gives loans and advances to governments for temporary periods, as and when necessary and it also manages the public debt of the country. At the same time, central government can borrow any amount of money from RBI by selling its rupees and securities to the later.

You can remember them as GEMS:

G-Growth

E-Equity

M-Modernisation

S-Self-reliance

The sale or purchase of government securities by the Central Bank in open market is termed as open market operations.
To reduce credit, the government securities are sold by the Central Bank. It reduces the supply of money in the hands of commercial banks and common public. On the other hand, to increase the credit, the Central Bank purchases the securities from public which releases money in the market. In this way, the Central Bank uses open market operations as a method of credit control.

The central bank in a developing country aims at the promotion and maintenance of a rising level of production, employment and real income in the country. The central banks in the majority of underdeveloped countries have been given wide powers to promote the growth of such economies. They, therefore, perform the following functions towards this end.

(i) In exchange process, the seller (producer) receives the same amount which the buyer (consumer) spends.
(ii) Goods and services flow in one direction and the money payment to acquire them flow in the return direction giving rise to a circular flow.

The main causes of India’s agricultural stagnation during the colonial period were :
(i) Land Revenue System—According to zamindari system, the zamindars were j recognised as permanent owners of the land", j The profit accruing out of the agriculture sector i went to the zamindars instead of cultivators. However, both zamindars and colonial government did nothing to improve the condition of agriculture. Zamindars were to pay a fixed sum to the government as land revenue and they were absolutely free to extract as much from the tillers of the soil as they could.
(ii) Lacking Resources—Alongwith the land settlement system, low levels of technology, lack of irrigation facilities and negligible use of fertilisers, all added upto the bad condition of the farmers and contributed to the dismal level of agricultural productivity. Despite of some proposes made in irrigation India’s agriculture starved of investment in tracing flood control, drainage and disalimination of soil.
(iii) Commercialisation of Agriculture—Due to commercialisation of agriculture, there were, some evidences of a relatively higher yield of cash crops in certain areas of the country. But this could not help in improving the conditions of Indian farmers. Instead of producing food crops, now they were producing cash crops, which were ultimately being used by British Industries

MicroEconomics is no more in class 12th syllabus.

By the way, PPC (production possibility Curve) is a curve that shows the combination of two goods which can be produced at the given level of resources and technology.

Production Possibility Curve (PPC) is concave to the origin because of the increasing opportunity cost. As we move down along the PPC, to produce each additional unit of one good, more and more units of other good need to be sacrificed. That is, as we move down along the PPC, the opportunity cost increases. And this causes the concave shape of PPC.

Money flow refers to the flow of money in terms of receipts and payments across different sectors of the economy. Flow of factor payments by producer sector to the household sector or flow of money from household sector to producer sector on account of the purchase of goods and services for consumption are examples of money flows.
Real flow refers to the flow of goods and services across different sectors of the economy. Flow of factor services from household sector to the producer sector or flow of goods and services from producer sector to household sector are examples of real flows.

It's an intermediate cost for the firm and will not be added in national income accounting.