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The International Monetary Fund (IMF) is an international organization that was initiated in 1944 at the
Bretton Woods Conference and formally created in 1945 by 29 member countries. The IMF's stated goal was
to assist in the reconstruction of the world’s international payment system post-World War II. Countries
contribute money to a pool through a quota system from which countries with payment imbalances can
borrow funds temporarily. Through this activity and others such as surveillance of its members' economies
and the demand for self-correcting policies, the IMF works to improve the economies of its member countries.
The IMF describes itself as “an organization of 188 countries, working to foster global monetary cooperation,
secure financial stability, facilitate international trade, promote high employment and sustainable economic
growth, and reduce poverty around the world. The organization's stated objectives are to promote
international economic cooperation, international trade, employment, and exchange rate stability, including
by making financial resources available to member countries to meet balance of payments needs. Its
headquarters are in Washington, D.C., United States.
The World Bank is an international financial institution that provides loans to developing countries for capital
programs.
The World Bank's official goal is the reduction of poverty. According to its Articles of Agreement (as amended
effective 16 February 1989), all its decisions must be guided by a commitment to the promotion of foreign
investment and international trade and to the facilitation of capital investment.
The World Bank comprises two institutions: the International Bank for Reconstruction and Development
(IBRD) and the International Development Association (IDA).
The World Bank should not be confused with the World Bank Group, which comprises the World Bank, the
International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the
International Centre for Settlement of Investment Disputes (ICSID).[5]
The BOJ was reorganized in 1942[1] under the Bank of Japan Act of 1942. There was a brief post-war period
during the Occupation of Japan when the bank's functions were suspended, and military currency was issued.
In 1949, the bank was again restructured.
In the 1970s, the Bank's operating environment evolved along with the transition from a fixed foreign currency
exchange rate and a rather closed economy to a large open economy with a variable exchange rate.
During the entire post-war era, until at least 1991, the Bank of Japan's monetary policy has primarily been
conducted via its 'window guidance' credit controls (which are the model for the Chinese central bank's
primary tool of monetary policy implementation), whereby the central bank would impose bank credit growth
quotas on the commercial banks. The tool was instrumental in the creation of the 'bubble economy' of the
1980s. It was implemented by the Bank of Japan's then 'Business Department', which was headed during the
'bubble years' from 1986 to 1989 by Toshihiko Fukui (who became deputy governor in the 1990s and governor
in 2003).
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A major 1997 revision of the Bank of Japan Act was designed to give it greater independence; however, the
Bank of Japan has been criticized for already possessing excessive independence and lacking in accountability
before this law was promulgated. A certain degree of dependence might be said to be enshrined in the new
Law, article 4 of which states:
In recognition of the fact that currency and monetary control is a component of overall economic policy, the
Bank of Japan shall always maintain close contact with the government and exchange views sufficiently, so
that its currency and monetary control and the basic stance of the government's economic policy shall be
mutually harmonious.
However, since the introduction of the new law, the Bank of Japan has persistently rebuffed government
requests to stimulate the economy.
Following the election of Prime Minister Shinzō Abe, the Bank of Japan has, with Abe's urging, taken proactive
steps to curb deflation in Japan. On October 30, 2012, The Bank of Japan announced that it has undertaken
further monetary-easing action for the second time in a month. Under the leadership of new Governor
Haruhiko Kuroda, the Bank of Japan released a statement on April 5, 2013 announcing that it would be
purchasing securities and bonds at a rate of 60-70 trillion yen a year in an attempt to double Japan's money
supply in two years.
The Asian Development Bank (ADB) is a regional development bank established on 22 August 1966 to facilitate
economic development of countries in Asia. The bank admits the members of the United Nations Economic
and Social Commission for Asia and the Pacific (UNESCAP, formerly known as the United Nations Economic
Commission for Asia and the Far East) and non-regional developed countries. From 31 members at its
establishment, ADB now has 67 members - of which 48 are from within Asia and the Pacific and 19 outside.
ADB was modeled closely on the World Bank, and has a similar weighted voting system where votes are
distributed in proportion with member's capital subscriptions.
By the end of 2012, both the United States and Japan hold the two largest proportions of shares each at
12.78%. China holds 5.45%, India holds 5.36%.
The United Nations Conference on Trade and Development (UNCTAD) was established in 1964 as a permanent
intergovernmental body. It is the principal organ of the United Nations General Assembly dealing with trade,
investment, and development issues.
The organization's goals are to "maximize the trade, investment and development opportunities of developing
countries and assist them in their efforts to integrate into the world economy on an equitable basis." (From
official website). The creation of the conference was based on concerns of developing countries over the
international market, multi-national corporations, and great disparity between developed nations and
developing nations.
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In the 1970s and 1980s, UNCTAD was closely associated with the idea of a New International Economic Order
(NIEO).
The United Nations Conference on Trade and Development was established in 1964 in order to provide a
forum where the developing countries could discuss the problems relating to their economic development.
UNCTAD grew from the view that existing institutions like GATT (now replaced by the World Trade
Organization, WTO), the International Monetary Fund (IMF), and World Bank were not properly organized to
handle the particular problems of developing countries.
The primary objective of the UNCTAD is to formulate policies relating to all aspects of development including
trade, aid, transport, finance and technology. The Conference ordinarily meets once in four years. The first
conference took place in Geneva in 1964, second in New Delhi in 1968, the third in Santiago in 1972, fourth in
Nairobi in 1976, the fifth in Manila in 1979, the sixth in Belgrade in 1983, the seventh in Geneva in 1987, the
eighth in Cartagena in 1992 and the ninth at Johannesburg (South Africa)in 1996. The Conference has its
permanent secretariat in Geneva.
One of the principal achievements of UNCTAD has been to conceive and implement the Generalised System of
Preferences (GSP). It was argued in UNCTAD, that in order to promote exports of manufactured goods from
developing countries, it would be necessary to offer special tariff concessions to such exports. Accepting this
argument, the developed countries formulated the GSP Scheme under which manufacturers' exports and
some agricultural goods from the developing countries enter duty-free or at reduced rates in the developed
countries. Since imports of such items from other developed countries are subject to the normal rates of
duties, imports of the same items from developing countries would enjoy a competitive advantage.
Currently, UNCTAD has 194 member States and is headquartered in Geneva, Switzerland. UNCTAD has 400
staff members and an bi-annual (2010–2011) regular budget of $138 million in core budget expenditures and
$72 million in extra-budgetary technical assistance funds. It is also a member of the United Nations
Development Group.[1] There is a list of non-governmental organizations participating in the activities of
UNCTAD.[2]
The World Trade Organization (WTO) is an organization that intends to supervise and liberalize international
trade. The organization officially commenced on 1 January 1995 under the Marrakech Agreement, replacing
the General Agreement on Tariffs and Trade (GATT), which commenced in 1948. The organization deals with
regulation of trade between participating countries; it provides a framework for negotiating and formalizing
trade agreements, and a dispute resolution process aimed at enforcing participants' adherence to WTO
agreements, which are signed by representatives of member governments. 9–10 and ratified by their
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parliaments. Most of the issues that the WTO focuses on derive from previous trade negotiations, especially
from the Uruguay Round (1986–1994).
The organization is attempting to complete negotiations on the Doha Development Round, which was
launched in 2001 with an explicit focus on addressing the needs of developing countries. As of June 2012, the
future of the Doha Round remains uncertain: the work programme lists 21 subjects in which the original
deadline of 1 January 2005 was missed, and the round is still incomplete. The conflict between free trade on
industrial goods and services but retention of protectionism on farm subsidies to domestic agricultural sector
(requested by developed countries) and the substantiation of the international liberalization of fair trade on
agricultural products (requested by developing countries) remain the major obstacles. These points of
contention have hindered any progress to launch new WTO negotiations beyond the Doha Development
Round. As a result of this impasse, there has been an increasing number of bilateral free trade agreements
signed. As of July 2012, there are various negotiation groups in the WTO system for the current agricultural
trade negotiation which is in the condition of stalemate.
WTO's current Director-General is Pascal Limy, who leads a staff of over 600 people in Geneva, Switzerland.
The euro zone (pronunciation (help info)), officially called the euro area, is an economic and monetary union
(EMU) of 17 European Union (EU) member states that have adopted the euro(€) as their common currency
and sole legal tender. The euro zone currently consists of Austria, Belgium, Cyprus, Estonia, Finland, France,
Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.
Other EU states (except for the United Kingdom and Denmark) are obliged to join once they meet the criteria
to do so. No state has left and there are no provisions to do so or to be expelled.[citation needed]
Monetary policy of the zone is the responsibility of the European Central Bank (ECB) which is governed by a
president and a board of the heads of national central banks. The principal task of the ECB is to keep inflation
under control. Though there is no common representation, governance or fiscal policy for the currency union,
some co-operation does take place through the Euro Group, which makes political decisions regarding the
euro zone and the euro. The Euro Group is composed of the finance ministers of euro zone states, however in
emergencies; national leaders also form the Euro Group.
Since the late-2000s financial crisis, the euro zone has established and used provisions for granting emergency
loans to member states in return for the enactment of economic reforms. The euro zone has also enacted
some limited fiscal integration, for example in peer review of each other's national budgets. The issue is highly
political and in a state of flux as of 2011 in terms of what further provisions will be agreed for euro zone
reform.
Monaco, San Marino and Vatican City have concluded formal agreements with the EU to use the euro as their
official currency and issue their own coins. [9][10] Andorra negotiated a similar agreement which will permit
them to issue Euros as early as 1 July 2013. Others, like Kosovo and Montenegro, have adopted the euro
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unilaterally. However, these countries do not formally form part of the euro zone and do not have
representation in the ECB or the Euro Group.
Asia-Pacific or Asia Pacific (abbreviated as Asia-Pac, Asia Pac, AsPac, Aspac, Apac, APAC, APNIC, APJ, JAPA or
JAPAC) is the part of the world in or near the Western Pacific Ocean. The region varies in size depending on
context, but it typically includes at least much of East Asia, Southeast Asia, and Oceania.
The term may also include Russia (on the North Pacific) and countries in the Americas which are on the coast
of the Eastern Pacific Ocean; the Asia-Pacific Economic Cooperation, for example, includes Canada, Chile,
Russia, Mexico, Peru, and the United States.
Alternatively, the term sometimes comprises all of Asia and Australasia as well as small/medium/large Pacific
island nations - for example when dividing the world into large regions for commercial purposes (e.g. into
Americas, EMEAand Asia Pacific).
Though imprecise, the term has become popular since the late 1980s in commerce, finance and
politics.[citation needed] In fact, despite the heterogeneity of the regions' economies, most individual nations
within the zone are emerging markets experiencing rapid growth. (Compare the concept/acronym APEJ or
APeJ - Asia-Pacific excluding Japan.)
The South Asian Association for Regional Cooperation (SAARC) is an organisation of South Asian nations, which
was established on 8 December 1985 when the government ofBangladesh, Bhutan, India, Maldives, Nepal,
Pakistan, and Sri Lanka formally adopted its charter providing for the promotion of economic and social
progress, cultural development within the South Asia region and also for friendship and cooperation with
other developing countries. It is dedicated to economic, technological, social, and cultural development
emphasising collective self-reliance. Its seven founding members are Sri Lanka, Bhutan, India, Maldives, Nepal,
Pakistan, and Bangladesh. Afghanistan joined the organisation in 2007. Meetings of heads of state are usually
scheduled annually; meetings of foreign secretaries, twice annually. It is headquartered in Kathmandu, Nepal.
The North Atlantic Treaty Organization (NATO; /ˈneɪtoʊ/ NAY-toh; French: Organisation du traité de
l'Atlantique Nord (OTAN)), also called the (North) Atlantic Alliance, is anintergovernmental military alliance
based on the North Atlantic Treaty which was signed on 4 April 1949. The organization constitutes a system of
collective defence whereby its member states agree to mutual defense in response to an attack by any
external party. NATO's headquarters are in Brussels, Belgium, one of the 28 member states across North
America and Europe, the newest of which Albania and Croatia, joined in April 2009. An additional 22 countries
participate in NATO's "Partnership for Peace", with 15 other countries involved in institutionalized dialogue
programs. The combined military spending of all NATO members constitutes over 70% of the world's defence
spending.
For its first few years, NATO was not much more than a political association. However, the Korean War
galvanized the member states, and an integrated military structure was built up under the direction of two US
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supreme commanders. The course of the Cold War led to a rivalry with nations of the Warsaw Pact, which
formed in 1955. The first NATO Secretary General,Lord Ismay, stated in 1949 that the organization's goal was
"to keep the Russians out, the Americans in, and the Germans down."[4] Doubts over the strength of the
relationship between the European states and the United States ebbed and flowed, along with doubts over
the credibility of the NATO defence against a prospective Soviet invasion—doubts that led to the development
of the independent French nuclear deterrent and the withdrawal of the French from NATO's military structure
in 1966.
After the fall of the Berlin Wall in 1989, the organization became drawn into the breakup of Yugoslavia, and
conducted their first military interventions in Bosnia from 1992 to 1995 and laterYugoslavia in 1999. Politically,
the organization sought better relations with former Cold War rivals, which culminated with several former
Warsaw Pact states joining the alliance in 1999 and 2004. The September 2001 attacks signalled the only
occasion in NATO's history that Article 5 of the North Atlantic treaty has been invoked as an attack on all NATO
members.[5]After the attack, troops were deployed to Afghanistan under the NATO-led ISAF, and the
organization continues to operate in a range of roles, including sending trainers to Iraq, assisting in counterpiracy operations[6] and most recently in 2011 enforcing a no-fly zone over Libya in accordance with UN
Security Council Resolution 1973. The less potent Article 4, which merely invokes consultation among NATO
members has been invoked three times, and only by Turkey: once in 2003 over the Second Iraq War, and twice
in 2012 over the Syrian civil war after thedowning of an unarmed Turkish F-4 reconnaissance jet and after a
mortar was fired at Turkey from Syria.
C. Rangarajan or Chakravarthi Rangarajan (born 1932) is an Indian economist and a distinguished former
Member of Parliament and Governor of the Reserve Bank of India. Currently, he is the Chairman of the Prime
Minister's Economic Advisory Council. He is also the Chairman of the Madras School of Economics, and the
Founding Chairman of the CR Rao Advanced Institute of Mathematics, Statistics and Computer Science.
Lakshmi Kant Jha, MBE (22 November 1913 – 16 January 1988), born in Darbhanga, Bihar, or L. K. Jha as he
was called, was the eighth Governor of the Reserve Bank of India from 1 July 1967 to 3 May 1970. A member
of the 1937 batch of the Indian Civil Service, Jha rose to a Deputy Secretary in the Department of Supply, and
was appointed an MBE for his service in the 1946 New Year Honours List. had served as Secretary to the Prime
Minister of India, prior to his appointment as Governor of RBI.
During his tenure the Indian Rupee notes of denominations of 2, 5, 10, and 100, commemorating the birth
centenary of Mahatma Gandhi was released on 2 October 1969, these notes bear his signature, a subsequent
re-issue on this series notes bears the signature of B. N. Adarkar. His tenure also saw nationalization of 14
major commercial banks, introduction of social controls over commercial banks, establishment of National
Credit Council, and the introduction of Lead Bank Scheme to facilitate credit delivery. Amongst other
developments, gold controls were brought on a statutory basis; Deposit Insurance was in principle extended
to Cooperative banks; and the setting up of the Agricultural Credit Board.
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He served at India's ambassador to the United States after his term expired, and authored two books named
"Mr. Red Tape" and "Economic strategy for the 80s: priorities for the Seventh Plan". He was governor of
Jammu and Kashmirstate from 3 July 1973 to 22 February 1981. He was a member of the Brandt Commission
and at the time of his death, a member of the Rajya Sabha. The RBI instituted the L.K. Jha Memorial Lectures
in commemoration of his memory.
Manmohan Singh ([mənˈmoːɦən ˈsɪ́ŋɡ] ( listen); born 26 September 1932) is the 13th and current Prime
Minister of India. A renowned economist, he is the only Prime Minister sinceJawaharlal Nehru to return to
power after completing a full five-year term, and the first Sikh to hold the office.
Born in Gah (now in Punjab, Pakistan), Singh's family migrated to India during its partition in 1947. After
obtaining his doctorate in economics from Oxford, Singh worked for the United Nationsin 1966–69. He
subsequently began his bureaucratic career when Lalit Narayan Mishra hired him as an advisor in the Ministry
of Foreign Trade. Over the 70s and 80s, Singh held several key posts in the Government of India, such as Chief
Economic Advisor (1972–76), Reserve Bank Governor (1982–85) and Planning Commission head (1985–87).
In 1991, as India faced a severe economic crisis, newly elected Prime Minister P. V. Narasimha Rao surprisingly
inducted the apolitical Singh into his cabinet as Finance Minister. Over the next few years, despite strong
opposition, Finance Minister Singh carried out several structural reforms that liberalised India's economy.
Although these measures proved successful in averting the crisis, and enhanced Singh's reputation globally as
a leading reform-minded economist, the incumbent Congress party fared poorly in the 1996 general election.
Subsequently, Singh served as Leader of the Opposition in the Rajya Sabha (the upper house of India's
Parliament) during the Atal Bihari Vajpayee government of 1998–2004.
In 2004, when the Congress-led United Progressive Alliance (UPA) came to power, its chairperson Sonia
Gandhi unexpectedly relinquished the premiership to Manmohan Singh. This Singh-led "UPA I" government
executed several key legislations and projects, including the Rural Health Mission, Unique Identification
Authority, Rural Employment Guarantee scheme and Right to Information Act. In 2008, opposition to a historic
civil nuclear agreement with the United States nearly caused Singh's government to fall after Left Front parties
withdrew their support. Although India's economy grew rapidly under UPA I, its security was threatened by
several terrorist incidents (culminating in the 2008 Mumbai attacks) and a growing Maoist insurgency.
The 2009 general election saw the UPA return with an increased mandate, with Manmohan Singh retaining
the office of Prime Minister.
Usha Thorat, (Hindi: उषा थोराट) (born 20 February 1950) served as Deputy Governor of the Reserve Bank of
India (RBI) (India's central bank) from November 10, 2005 to November 8, 2010. Prior to this she was the
executive Director of the RBI.
Usha Thorat has been the Reserve Bank of India nominee on the boards of Bank of Baroda, Indian Overseas
Bank and the Securities Trading Corporation of India.
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She has been Executive Director of RBI since April 2004. As Deputy Governor she was responsible for the
Department of Currency Management, Deposit Insurance and Credit Guarantee Corporation, Inspection
Department, Premises Department, Rural Planning and Credit Department and Urban Banks Department.
She has been one of the key players in the Indian Central Banks efforts toward promoting Financial Inclusion.
Line-of-sight or Line of sight may refer to:
•
Line-of-sight (missile), the straight line between the missile and the target
•
Line-of-sight propagation, electro-magnetic waves travelling in a straight line
•
Line of sight (gaming), visibility on a gaming field, i.e. who can see what
•
Direct fire or Line-of-sight fire, shooting directly at a visible target on a relatively flat trajectory
•
Radial velocity or Line-of-sight velocity, an object's speed straight towards or away from an observer
•
Sightline, an unobstructed line-of-sight between a subject and object
•
Leonardo da Vinci's term for a structure within the human eye, according to eye movement in reading
scattering loss [′skad•ə•riŋ ‚lȯs]
electromagnetism)
The portion of the transmission loss that is due to scattering within the medium or roughness of the reflecting
surface.
In business, revenue or turnover is income that a company receives from its normal business activities, usually
from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is
referred to as turnover. Some companies receive revenue from interest, royalties, or other fees. Revenue may
refer to business income in general, or it may refer to the amount, in a monetary unit, received during a
period of time, as in "Last year, Company X had revenue of $42 million." Profits or net income generally imply
total revenue minus total expenses in a given period. In accounting, revenue is often referred to as the "top
line" due to its position on the income statement at the very top. This is to be contrasted with the "bottom
line" which denotes net income.
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For non-profit organizations, annual revenue may be referred to as gross receipts. This revenue includes
donations from individuals and corporations, support from government agencies, income from activities
related to the organization's mission, and income from fundraising activities, membership dues, and financial
investments such as stock shares in companies.
In general usage, revenue is income received by an organization in the form of cash or cash equivalents. Sales
revenue or revenues is income received from selling goods or services over a period of time. Tax revenue is
income that a government receives from taxpayers.
In more formal usage, revenue is a calculation or estimation of periodic income based on a particular standard
accounting practice or the rules established by a government or government agency. Two common accounting
methods, cash basis accounting and accrual basis accounting, do not use the same process for measuring
revenue. Corporations that offer shares for sale to the public are usually required by law to report revenue
based on generally accepted accounting principles or International Financial Reporting Standards.
In a double-entry bookkeeping system, revenue accounts are general ledger accounts that are summarized
periodically under the heading Revenue or Revenues on an income statement. Revenue account names
describe the type of revenue, such as "Repair service revenue", "Rent revenue earned" or "Sales".
Oscillation is the repetitive variation, typically in time, of some measure about a central value (often a point of
equilibrium) or between two or more different states. Familiar examples include a swinging pendulum and AC
power. The term vibration is sometimes used more narrowly to mean a mechanical oscillation but is
sometimes used as a synonym of "oscillation". Oscillations occur not only in physical systems but also in
biological systems, from human society to the brain.
The reserve requirement (or cash reserve ratio) is a central bank regulation that sets the minimum fraction of
customer deposits and notes that each commercial bank must hold as reserves (rather than lend out). These
required reserves are normally in the form of cash stored physically in a bank vault (vault cash) or deposits
made with a central bank.
The required reserve ratio is sometimes used as a tool in monetary policy, influencing the country's borrowing
and interest rates by changing the amount of funds available for banks to make loans with. Western central
banks rarely alter the reserve requirements because it would cause immediate liquidity problems for banks
with low excess reserves; they generally prefer to use open market operations (buying and selling
government-issued bonds) to implement their monetary policy. The People's Bank of China uses changes in
reserve requirements as an inflation-fighting tool, and raised the reserve requirement ten times in 2007 and
eleven times since the beginning of 2010. As of 2006 the required reserve ratio in the United States was 10%
on transaction deposits and zero on time deposits and all other deposits.
An institution that holds reserves in excess of the required amount is said to hold excess reserves.
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БББ==Effects on money supply== The reserve requirement can be used as an instrument of monetary
policy, because the higher the reserve requirement is set, the less funds banks will have to loan out, leading to
lower money creation and perhaps ultimately to higher purchasing power of the money previously in use. The
effect is multiplied, because money obtained as loan proceeds can be re-deposited; a portion of those
deposits may again be loaned out, and so on. The effect on the money supply is governed by the following
formulas:
: definitional relationship between monetary base Mb (bank reserves plus currency held by the non-bank
public) the narrowly defined money supply, M1,
: derived formula for the money multiplier mm, the factor by which lending and re-lending leads M1 to be a
multiple of the monetary base:
where notationally,
the currency ratio: the ratio of the public's holdings of currency (undeposited cash) to the public's holdings of
demand deposits; and
the total reserve ratio (the ratio of legally required plus non-required reserve holdings of banks to demand
deposit liabilities of banks).
However, in the United States (and other countries except Brazil, China, India, Russia), the reserve
requirements are generally not frequently altered to implement monetary policy because of the short-term
disruptive effect on financial markets.
Jaromir Benes and Michael Kumhof of the IMF Research Department, report that: the “deposit multiplier“ of
the undergraduate economics textbook, where monetary aggregates are created at the initiative of the central
bank, through an initial injection of high-powered money into the banking system that gets multiplied through
bank lending, turns the actual operation of the monetary transmission mechanism on its head.
The timesВ, when banks ask for reserves, the central bank obliges. Reserves therefore impose no constraint.
The deposit multiplier is simply, in the words of Kydland andPrescott (1990), a myth. And because of this,
private banks are almost fully in control of the money creation process.
Repo rate is the rate at which the RBI borrows money from commercial banks. Banks are always happy to lend
money to the RBI since their money are in safe hands with a good interest.
An increase in reverse repo rate can prompt banks to park more funds with the RBI to earn higher returns on
idle cash. It is also a tool which can be used by the RBI to drain excess money out of the banking system.
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What is a Repo Rate?
The rate at which the RBI lends money to commercial banks is called repo rate. It is an instrument of monetary
policy. Whenever banks have any shortage of funds they can borrow from the RBI.
A reduction in the repo rate helps banks get money at a cheaper rate and vice versa. The repo rate in India is
similar to the discount rate in the US.
Statutory liquidity ratio refers to the amount that the commercial banks require to maintain in the form of
gold or govt. approved securities before providing credit to the customers. Here by approved securities we
mean, bond and shares of different companies. Statutory Liquidity Ratio is determined and maintained by the
Reserve Bank of India in order to control the expansion of bank credit. It is determined as percentage of total
demand and time liabilities. Time Liabilities refer to the liabilities, which the commercial banks are liable to
pay to the customers after a certain period mutually agreed upon and demand liabilities are such deposits of
the customers which are payable on demand. example of time liability is a fixed deposits for 6 months, which
is not payable on demand but after six months. example of demand liability is deposit maintained in saving
account or current account, which are payable on demand through a withdrawal form of a cheque .it is ratio.
SLR is used by bankers and indicates the minimum percentage of deposits that the bank has to maintain in
form of gold, cash or other approved securities. Thus, we can say that it is ratio of cash and some other
approved liabilities(deposits). It regulates the credit growth in India
The liabilities that the banks are liable to pay within one month's time, due to completion of maturity period,
are also considered as time liabilities. The maximum limit of SLR is 40% and minimum limit of SLR is 23% In
India, Reserve Bank of India always determines the percentage of SLR. There are some statutory requirements
for temporarily placing the money in government bonds. Following this requirement, Reserve Bank of India
fixes the level of SLR. At present, the minimum limit of SLO that can be set by the Reserve Bank is 23% AS ON
AUGUST 2012 Objectives of SLR: The main objectives for maintaining the SLR ratio are the following:
•
to control the expansion of bank credit. By changing the level of SLR, the Reserve Bank of India can
increase or decrease bank credit expansion.
•to ensure the solvency of commercial banks. • to compel the commercial banks to invest in government
securities like government bonds.
If any Indian bank fails to maintain the required level of Statutory Liquidity Ratio, then it becomes liable to pay
penalty to Reserve Bank of India. The defaulter bank pays penal interest at the rate of 3% per annum above
the Bank Rate, on the shortfall amount for that particular day. But, according to the Circular, released by the
Department of Banking Operations and Development, Reserve Bank of India; if the defaulter bank continues
to default on the next working day, then the rate of penal interest can be increased to 5% per annum above
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the Bank Rate. This restriction is imposed by RBI on banks to make funds available to customers on demand as
soon as possible. Gold and government securities (or gilts) are included along with cash because they are
highly liquid and safe assets.
The RBI can increase the SLR to contain inflation, suck liquidity in the market, to tighten the measure to
safeguard the customers money. In a growing economy banks would like to invest in stock market, not in
government securities or gold as the latter would yield less returns. One more reason is long term government
securities (or any bond) are sensitive to interest rate changes. But in an emerging economy interest rate
change is a common activity.
Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the
loans and advances to a commercial bank.
Whenever a bank has a shortage of funds they can typically borrow it from the central bank based on the
monetary policy of the country.
The borrowing is commonly done via Repos (Repurchase) where the Repo rate is the rate at which the central
bank lends short-term money to the banks against securities. A reduction in the repo rate will help banks to
get money at a cheaper rate. When the repo rate increases borrowing from the central bank becomes more
expensive. It is more applicable when there is a liquidity crunch in the market.
The reverse repo rate is the rate at which the banks can park surplus funds with reserve bank, while the repo
rate is the rate at which the banks borrow from the central bank. It is mostly done when there is surplus
liquidity in the market.
Copyright is a legal concept, enacted by most governments, giving the creator of original work exclusive rights
to it, usually for a limited time. Generally, it is "the right to copy", but also gives the copyright holder the right
to be credited for the work, to determine who may adapt the work to other forms, who may perform the
work, who may financially benefit from it, and other related rights. It is a form of intellectual property (like the
patent, the trademark, and the trade secret) applicable to any expressible form of an idea or information that
is substantive and discrete.
Copyright initially was conceived as a way for government to restrict printing; the contemporary intent of
copyright is to promote the creation of new works by giving authors control of and profit from them.
Copyrights are said to be territorial, which means that they do not extend beyond the territory of a specific
state unless that state is a party to an international agreement. Today, however, this is less relevant since
most countries are parties to at least one such agreement. While many aspects of national copyright laws have
been standardized through international copyright agreements, copyright laws of most countries have some
unique features. Typically, the duration of copyright is the whole life of the creator plus fifty to a hundred
years from the creator's death, or a finite period for anonymous or corporate creations. Some jurisdictions
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have required formalities to establishing copyright, but most recognize copyright in any completed work,
without formal registration. Generally, copyright is enforced as a civil matter, though some jurisdictions do
apply criminal sanctions.
Most jurisdictions recognize copyright limitations, allowing "fair" exceptions to the creator's exclusivity of
copyright, and giving users certain rights. The development of digital media and computer network
technologies have prompted reinterpretation of these exceptions, introduced new difficulties in enforcing
copyright, and inspired additional challenges to copyright law's philosophic basis. Simultaneously, businesses
with great economic dependence upon copyright have advocated the extension and expansion of their
intellectual property rights, and sought additional legal and technological enforcement.
A patent is a set of exclusive rights granted by a sovereign state to an inventor or their assignee for a limited
period of time, in exchange for the public disclosure of the invention. An invention is a solution to a specific
technological problem, and may be a product or a process: 17 Patents are a form of intellectual property.
The procedure for granting patents, requirements placed on the patentee, and the extent of the exclusive
rights vary widely between countries according to national laws and international agreements. Typically,
however, a patent application must include one or more claims that define the invention. These claims must
meet relevant patentability requirements, such as novelty and non-obviousness. The exclusive right granted to
a patentee in most countries is the right to prevent others from making, using, selling, or distributing the
patented invention without permission.
Under the World Trade Organization's (WTO) Agreement on Trade-Related Aspects of Intellectual Property
Rights, patents should be available in WTO member states for any invention, in all fields of technology, and
the term of protection available should be a minimum of twenty years. Nevertheless, there are variations on
what is patentable subject matter from country to country.
A trademark, trade mark, or trade-mark is a recognizable sign, design or expression which identifies products
or services of a particular source from those of others. The trademark owner can be an individual, business
organization, or any legal entity. A trademark may be located on a package, a label, a voucher or on the
product itself.
Non-bank financial companies (NBFCs) are financial institutions that provide banking services without
meeting the legal definition of a bank, i.e. one that does not hold a banking license. These institutions are not
allowed to take deposits from the public. Nonetheless, all operations of these institutions are still exercised
under bank regulation. However this depends on the jurisdiction, as in some jurisdictions, such as New
Zealand, any company can do the business of banking, and there are no banking licenses issued. If an
organisation in New Zealand intends to describe itself as a bank and intends to use the word bank in its title it
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must first receive approval and official registration and thus licence from the nation's central bank, the
Reserve Bank of New Zealand.
Well......VAT - Value Added Tax
While CENVAT - Central Value Added Tax
VAT- Value Added Tax
VAT is a sales tax collected by the government (of the state in which the final consumer is located) – which is
the government of destination state on consumer expenditure.
Over 120 countries worldwide have introduced VAT over the past three decades and India is amongst the last
few to introduce it.
India already has a system of sales tax collection wherein the tax is collected at one point (first/last) from the
transactions involving the sale of goods. VAT would, however, be collected in stages (instalments) from one
stage to another.
The mechanism of VAT is such that, for goods that are imported and consumed in a particular state, the first
seller pays the first point tax, and the next seller pays tax only on the value-addition done – leading to a total
tax burden exactly equal to the last point tax.
CENVAT - Central Value Added Tax
CENVAT is the new name for MODVAT. Basically they are the same. These are related to central excise.
CENVAT means, Tax on Value Addition on the goods manufactured according to Central Excise & Customs Act
Definition. Here the value addition means the Additional Services/Activities etc. which converts the Input in to
Output, and the output is newly recognised as per the this act as Excisable goods. Like this the discussion
is goes on for definition.
In a general sense, a direct tax is one imposed upon an individual person (juristic or natural) or property (i.e.
real and personal property, rental profits, livestock, crops, wages, etc.) as distinct from a tax imposed upon a
transaction. In this sense, indirect taxes such as a sales tax or a value added tax (VAT) are imposed only if and
when a taxable transaction occurs. People have the freedom to engage in or refrain from such transactions;
whereas a direct tax (in the general sense) is imposed upon a person, typically in an unconditional manner,
such as a poll-tax or head-tax, which is imposed on the basis of the person's very life or existence, or a
property tax which is imposed upon the owner by virtue of ownership, rather than commercial use. Some
commentators have argued that "a direct tax is one that cannot be shifted by the taxpayer to someone else,
whereas an indirect tax can be."
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The unconditional, inexorable aspect of the direct tax was a paramount concern of people in the 18th century
seeking to escape tyrannical forms of government and to safeguard individual liberty. An 18th century writing
about this kind of taxation explained:
“
The power of direct taxation applies to every individual ... it cannot be evaded like the objects of
imposts or excise, and will be paid, because all that a man hath will he give for his head. This tax is so
congenial to the nature of despotism, that it has ever been a favorite under such governments. ...
The power of direct taxation will further apply to every individual ... however oppressive, the people will have
but this alternative, either to pay the tax, or let their property be taken for all resistance will be vain.
The term indirect tax has more than one meaning. In the colloquial sense, an indirect tax (such as sales tax, a
specific tax, value added tax (VAT), or goods and services tax (GST)) is a tax collected by an intermediary (such
as a retail store) from the person who bears the ultimate economic burden of the tax (such as the consumer).
The intermediary later files a tax return and forwards the tax proceeds to government with the return. In this
sense, the term indirect tax is contrasted with a direct tax which is collected directly by government from the
persons (legal or natural) on which it is imposed. Some commentators have argued that "a direct tax is one
that cannot be shifted by the taxpayer to someone else, whereas an indirect tax can be."
An indirect tax may increase the price of a good so that consumers are actually paying the tax by paying more
for the products. Examples would be fuel, liquor, and cigarette taxes. An excise duty on motor cars is paid in
the first instance by the manufacturer of the cars; ultimately the manufacturer transfers the burden of this
duty to the buyer of the car in form of a higher price. Thus, an indirect tax is such which can be shifted or
passed on. The degree to which the burden of a tax is shifted determines whether a tax is primarily direct or
primarily indirect. This is a function of the relative elasticity of the supply and demand of the goods or services
being taxed. Under this definition, even income taxes may be indirect.
The term indirect tax has a different meaning for U.S. constitutional law purposes: see direct tax and excise tax
in the United States.
Entertainment falls in List 2 of the Seventh Schedule of the Constitution of India and is exclusively reserved as
a revenue source for the state governments. Historically, before India acquired independence British
government imposed heavy taxes on the events of amusements and entertainment, where a large gathering
of Indians could have caused rebellion or mutiny. Thus, various entertainment tax acts of the state
governments permit the rate of tax beyond [clarification needed] 100%. After independence, old enactments
continued and there has been no revision or repeal of these acts.
This source of revenue has grown with the advent of Pay Television Services in India. Since, entertainment is
being provided through the services such as Broadcasting Services, DTH Services, Pay TV Services, Cable
Services, etc. The component of entertainment is intrinsically intertwined in the transaction of service, that it
cannot be separated from the whole transaction. Given the nature of transaction of service, it is being
subjected to tax by the Union and the State governments both.
The fiscal principle underlying article 246 of the constitution of India separates the sources of taxation for the
Union and the States and also maintains the exclusivity. This article also provides that in case of conflict
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between the powers of Union and the States, the Union power to tax shall supersede the power of the State
to levy tax on the taxable event or in relation to the subject or object of taxation.
The entertainment Industry in India is facing the challenge of double taxation on such transactions.
An income tax is a tax on individual earnings (income) that is paid to the national government. In American
English the term also applies to the same type of tax paid to city, state, or local governments, and is
occasionally used in reference to corporate profits as well (as this is also considered income in American
English).
Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive,
proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate
tax, corporate income tax, or profit tax. Various systems define income differently and often allow notional
reductions of income (such as a reduction based on number of children supported). The US states of Florida
and Texas have no income tax, which is one reason that many people with substantial assets live there.
Share
A corporation divides its capital into shares, which are offered for sale to raise capital, termed as issuing
shares. Thus, a share is an indivisible unit of capital, expressing the contractual relationship between the
company and the shareholder. The denominated value of a share is its face value: the total capital of a
company is divided into a number of shares.
In financial markets, a share is a unit of account for various financial instruments including stocks (ordinary or
preferential), and investments in limited partnerships, and real estate investment trusts. The common feature
of all these is equity participation (limited in the case of preference shares).
The income received from shares is known as a dividend. A shareholder, also known as a stockholder, is a
person who owns shares of a certain company or organization. The process of purchasing and selling shares
often involves going through a stockbroker as a middle man.
A debenture is a document that either creates a debt or acknowledges it, and it is a debt without collateral. In
corporate finance, the term is used for a medium- to long-term debt instrument used by large companies to
borrow money. In some countries the term is used interchangeably with bond, loan stock or note. A
debenture is thus like a certificate of loan or a loan bond evidencing the fact that the company is liable to pay
a specified amount with interest and although the money raised by the debentures becomes a part of the
company's capital structure, it does not become share capital. Senior debentures get paid before subordinate
debentures, and there are varying rates of risk and payoff for these categories.
Debentures are generally freely transferable by the debenture holder. Debenture holders have no rights to
vote in the company's general meetings of shareholders, but they may have separate meetings or votes e.g.
on changes to the rights attached to the debentures. The interest paid to them is a charge against profit in the
company's financial statements.
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A mutual fund is a type of professionally managed collective investment vehicle that pools money from many
investors to purchase securities. While there is no legal definition of the term "mutual fund", it is most
commonly applied only to those collective investment vehicles that are regulated and sold to the general
public. They are sometimes referred to as "investment companies" or "registered investment companies."
Most mutual funds are "open-ended," meaning investors can buy or sell shares of the fund at any time. Hedge
funds are not considered a type of mutual fund.
The term mutual fund is less widely used outside of the United States and Canada. For collective investment
vehicles outside of the United States, see articles on specific types of funds including open-ended investment
companies,SICAVs, unitized insurance funds, unit trusts and Undertakings for Collective Investment in
Transferable Securities, which are usually referred to by their acronym UCITS.
In the United States, mutual funds must be registered with the Securities and Exchange Commission, overseen
by a board of directors (or board of trustees if organized as a trust rather than a corporation or partnership)
and managed by a registered investment adviser. Mutual funds are not taxed on their income and profits if
they comply with certain requirements under the U.S. Internal Revenue Code.
Mutual funds have both advantages and disadvantages compared to direct investing in individual securities.
They have a long history in the United States. Today they play an important role in household finances, most
notably in retirement planning.
There are 3 types of U.S. mutual funds: open-end, unit investment trust, and closed-end. The most common
type, the open-end fund, must be willing to buy back shares from investors every business day. Exchangetraded funds (or "ETFs" for short) are open-end funds or unit investment trusts that trade on an exchange.
Open-end funds are most common, but exchange-traded funds have been gaining in popularity.
Mutual funds are generally classified by their principal investments. The four main categories of funds are
money market funds, bond or fixed income funds, stock or equity funds and hybrid funds. Funds may also be
categorized as index or actively managed.
Investors in a mutual fund pay the fund’s expenses, which reduce the fund's returns/performance. There is
controversy about the level of these expenses. A single mutual fund may give investors a choice of different
combinations of expenses (which may include sales commissions or loads) by offering several different types
of share classes.
A United States Treasury security is a government debt issued by the United States Department of the
Treasury through the Bureau of the Public Debt. Treasury securities are the debt financing instruments of the
United States federal government, and they are often referred to simply as Treasuries. There are four types of
marketable treasury securities: Treasury bills, Treasury notes, Treasury bonds, and Treasury Inflation
Protected Securities (TIPS). There are several types of non-marketable treasury securities including State and
Local Government Series (SLGS), Government Account Series debt issued to government-managed trust funds,
and savings bonds. All of the marketable Treasury securities are very liquid and are heavily traded on the
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secondary market. The non-marketable securities (such as savings bonds) are issued to subscribers and cannot
be transferred through market sales.
Financial assistance or financial aid can refer to:
•
Financial assistance (share purchase), assistance given by a company for the purchase of its shares or
those of its holding companies
•
Welfare (financial aid), financial aid by (primarily) governmental institutions or charitable organizations
to individuals in need
•
Student financial aid, funding intended to help students pay educational expenses
The Global Peace Index (GPI) is an attempt to measure the relative position of nations' and regions'
peacefulness. It is the product of Institute for Economics and Peace (IEP) and developed in consultation with
an international panel of peace experts from peace institutes and think tanks with data collected and collated
by the Economist Intelligence Unit. The list was launched first in May 2007, and then continued yearly. It is
claimed to be the first study to rank countries around the world according to their peacefulness. It ranks 158
countries (up from 121 in 2007). The study is the brainchild of Australian entrepreneur Steve Killeen and is
endorsed by individuals such as Kofi Annan, the Dalai Lama, archbishop Desmond Tutu, former Finnish
President Martti Ahtisaari, Nobel laureate Muhammad Yunus, economist Jeffrey Sachs, former president of
Ireland Mary Robinson, Jan Eliasson and former US president Jimmy Carter. Factors examined by the authors
include internal factors such as levels of violence and crime within the country and factors in a country's
external relations such as military expenditure and wars. The index is launched each year at events in London,
Washington DC, the United Nations in New York and in Brussels.
Unilateral trade agreement would be any agreement that is imposed on one national by another, and benefits
one nation only. Many smaller, developing nations are afraid of trade agreements involving developed nations
because the imbalance of power could result in a unilateral benefit to the developed nation.
A multilateral trading facility (MTF) is a specific type of European financial trading system. The concept was
introduced within the Markets in Financial Instruments Directive (MiFID), a European financial law, and
describes a trading venue that brings together buyers and sellers in a non-discretionary way, according to a
defined set of rules resulting in trades. The United States equivalent is an alternative trading system.
Brief Analysis of provisional population figures 2011 Census
The data of provisional population total are available in Paper –I, which contains the figure of population by
sex, literates and illiterates and children below age seven years. The figures are presented up to district level in this
paper along with the trends since past censuses starting from 1901.
The population of the State is recorded 11,23,72,972 in 2011 census. In terms of population, Maharashtra is
the second largest State in the country with about 9.29 percent. In 2001 census, this was 9,68,78,627 i.e., an
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addition of 1,54,94,345 during the decade 2001-11.
Thane is the biggest district in the state with a population 1,10,54,131 and constitutes 9.84 percent of total
population of the State. Next to Thane, Pune and Mumbai (Suburban) are other bigger districts in the State with
population 94,26,959 (8.4 percent) and 93,32,481 (8.3 percent) respectively. In the last census, Mumbai (Suburban)
was on the top with 8.9 percent share, whereas the share of Thane was 8.4 percent and of Pune it was 7.5 percent.
Sindhudurg is the smallest district with population 8,48,868, constituting barely a 0.8 percent of the State’s
population; and next is the Gadchiroli with a share of only 1 percent. The other small districts in terms of
population are Hingoli, Washim and Bhandara which have a share of population 1.1 percent each and Wardha and
Gondiya have 1.2 percent each.
Decadal growth rates
During 2001-11, the State has recorded 15.99 percent growth rate against 17.64 percent at national level.
The growth rate in the previous decade during 1991-01 was 22.73 percent, which shows a reduction in growth rate
by 6.74 percentage points. As per the current population the density is 365 persons per sq. Km. as compared 382 at
national level.
First time after 1921, two districts viz., Ratnagiri, and Sindhudurg have registered negative growth rate 4.96 percent and -2.30 percent respectively. Further, Mumbai, though it had negative growth during 1981-91, has
once again recorded a negative growth rate -5.75 percent in 2011. The other districts in the ascending order of
their low rate of growth are Wardha (4.8 percent), Bhandara, (5.5 percent), Chandrapur, (6.0 percent), Satara, (6.9
percent), Mumbai (Sub-urban, 8.0 percent), and Sangli (9.2 percent); where the rate of growth in all these districts
is less than 10 percent.
Thane district has registered highest growth rate 35.9 percent during 2001-11. Higher rate of growth found
in other districts are, 30.3 percent in Pune, 27.3 percent in Aurangabad and 25.5 percent in Nandurbar.
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Sex composition
The population by sex shows that there are 5,83,61,397 males and 5,40,11,575 females
and these numbers as compared to 2001 census has grown by 79,57,658 for males and
75,33,544 females. This makes a rate of growth 15.8 percent and 16.2 percent for males and
females respectively.
Sex ratio
Due to a slightly higher growth rate of females, the sex ratio has increased from 922 to
925 during 2001-11. The sex ratio is 940 at national level.
Sex ratio is 838 in Mumbai which is lowest in the State. It is 857 in Mumbai (Suburban)
and 880 in Thane. However, in all these three districts, it has increased during 2001-11.
Pune, Bid, Aurngabad, Osmanabad, Jalgaon and Latur also have a sex ratio less than 925
i.e., the sex ratio of the state. And all these six districts have shown a decline in sex ratio as
compared to 2001.
Ratnagiri district has the highest sex ratio (1123), followed by Sindhudurg (1037),
Gondiya (996), Satara (986) and Bhandara (984). Except in Bhandara, it has come down in all
these districts as compared to 2001.
Sex ratio in age 0-6 years
In 2011, against the child sex ratio 914 at national level, the State has recorded a child
sex ratio 883, i.e., a reduction of 30 girls per 1000 boys, as the same was 913 during 2001.
In Bid district, child sex ratio 801 is the lowest showing a reduction by 93 as against the
child sex ratio 894 in 2001. Gadchiroli has recorded highest child sex ratio 956 and next is
Chandrapur with 945.
Literacy rates
In the State, 82.91 percent are literates in 2011, which is higher than 74.04 percent at
national level. Sex-wise literacy rates shows, that it is 89.82 percent for males and 75.48 percent
for females. At national level, it is 82.14 percent for males and 65.46 percent for females.
In Maharashtra, the male literacy rate has increased from 85.97 percent to 89.82
percent (by 3.8 percentage points) and the female literacy rate increased from 67.03 percent to
75.48 percent (by 8.45 percentage points) during the period 2001-11.
As far as district-wise ranking is concerned, Mumbai (Suburban) district with highest
literacy rate of 90.9 percent stands in first rank, followed by Nagpur (89.52 percent). It is lowest
in Nandurbar (63.04%), and this is the only district having literacy rate below 70 percent.
Density of population
Mumbai (Suburban) and Mumbai districts are on the top in density of population with
20,925 and 20,038 population per sq. Km. respectively. In Thane, the density is 1,157, whereas
Pune (603) and Kolapur (504) are the other districts with a density more than 500.
Gadchiroli at the lowest with density 74, followed by Sindhudurg (163), Chandrapur
(192) and Ratnagiri (196).
Macroeconomics (from the Greek prefix macro- meaning "large" and economics) is a branch
of economics dealing with the performance, structure, behaviour, and decision-making of
an economy as a whole, rather than individual markets. This includes national, regional, and
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global economies. With microeconomics, macroeconomics is one of the two most general
fields in economics.
Macroeconomists study aggregated indicators such as GDP, unemployment rates, and price
indices to understand how the whole economy functions. Macroeconomists develop models
that explain the relationship between such factors as national income, output, consumption,
unemployment, inflation, savings, investment, international trade and international finance.
In contrast, microeconomics is primarily focused on the actions of individual agents, such as
firms and consumers, and how their behaviour determines prices and quantities in specific
markets. While macroeconomics is a broad field of study, there are two areas of research
that are emblematic of the discipline: the attempt to understand the causes and
consequences of short-run fluctuations in national income (the business cycle), and the
attempt to understand the determinants of long-run economic growth (increases in national
income). Macroeconomic models and their forecasts are used by both governments and
large corporations to assist in the development and evaluation of economic policy and
business strategy.[citation needed]
Development economics is a branch of economics which deals with economic aspects of the
development process in low-income countries. Its focus is not only on methods of
promoting economic development, economic growth and structural change but also on
improving the potential for the mass of the population, for example, through health and
education and workplace conditions, whether through public or private channels.
Development economics involves the creation of theories and methods that aid in the
determination of policies and practices and can be implemented at either the domestic or
international level. This may involve restructuring market incentives or using mathematical
methods like inter-temporal optimization for project analysis, or it may involve a mixture of
quantitative and qualitative methods.
Unlike in many other fields of economics, approaches in development economics may
incorporate social and political factors to devise particular plans. Also unlike many other
fields of economics, there is "no consensus" on what students should know. Different
approaches may consider the factors that contribute to economic convergence or nonconvergence across households, regions, and countries.
Public economics (or economics of the public sector) is the study of government policy
through the lens of economic efficiency and equity. At its most basic level, public economics
provides a framework for thinking about whether or not the government should participate
in economics markets and to what extent its role should be. In order to do so,
microeconomic theory is utilized to assess whether the private market is likely to provide
efficient outcomes in the absence of governmental interference. Inherently, this study
involves the analysis of government taxation and expenditures. This subject encompasses a
host of topics including market failures, externalities, and the creation and implementation
of government policy. Public economics builds on the theory of welfare economics and is
ultimately used as a tool to improve social welfare.
Broad methods and topics include:
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•
The theory and application of public finance
•
Analysis and design of public policy
•
Distributional effects of taxation and government expenditures
•
Analysis of market failure and government failure.
Emphasis is on analytical and scientific methods and normative-ethical analysis, as
distinguished from ideology. Examples of topics covered are tax incidence, optimal taxation,
and the theory of public goods.
Microeconomics (from Greek prefix mikro- meaning "small" and economics) is a branch of
economics that studies the behavior of individual households and firms in making decisions
on the allocation of limited resources (see scarcity). Typically, it applies to markets where
goods or services are bought and sold. Microeconomics examines how these decisions and
behaviors affect the supply and demand for goods and services, which determines prices,
and how prices, in turn, determine the quantity supplied and quantity demanded of goods
and services.
This is in contrast to macroeconomics, which involves the "sum total of economic activity,
dealing with the issues of growth, inflation, and unemployment." Microeconomics also deals
with the effects of national economic policies (such as changing taxation levels) on the
aforementioned aspects of the economy. Particularly in the wake of the Lucas critique,
much of modern macroeconomic theory has been built upon 'microfoundations'—i.e. based
upon basic assumptions about micro-level behavior.
One of the goals of microeconomics is to analyze market mechanisms that establish relative
prices amongst goods and services and allocation of limited resources amongst many
alternative uses. Microeconomics analyzes market failure, where markets fail to produce
efficient results, and describes the theoretical conditions needed for perfect competition.
Significant fields of study in microeconomics include general equilibrium, markets under
asymmetric information, choice under uncertainty and economic applications of game
theory. Also considered is theelasticity of products within the market system.
A fixed exchange rate, sometimes called a pegged exchange rate, is also referred to as the
Tag of particular Rate, which is a type of exchange rate regime where a currency's value is
fixed against the value of another single currency or to a basket of other currencies, or to
another measure of value, such as gold.
A fixed exchange rate is usually used to stabilize the value of a currency against the currency
it is pegged to. This makes trade and investments between the two countries easier and
more predictable and is especially useful for small economies in which external trade forms
a large part of their GDP.
It can also be used as a means to control inflation. However, as the reference value rises and
falls, so does the currency pegged to it. In addition, according to the Mendel–Fleming
model, with perfect capital mobility, a fixed exchange rate prevents a government from
using domestic monetary policy in order to achieve macroeconomic stability.
There are no major economic players that use a fixed exchange rate (except the countries
using the euro and the Chinese Yuan). The currencies of the countries that now use the euro
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still exist (for old bonds). The rates of these currencies are fixed with respect to the euro and
to each other. The most recent such country to discontinue their fixed exchange rate was
the People's Republic of China, which did so in July 2005.
A floating exchange rate or fluctuating exchange rate is a type of exchange rate regime
wherein a currency's value is allowed to fluctuate according to the foreign exchange market.
A currency that uses a floating exchange rate is known as a floating currency. A floating
currency is contrasted with a fixed currency.
In the modern world, the majority of the world's currencies are floating. Central banks often
participate in the markets to attempt to influence exchange rates. Such currencies include
the most widely traded currencies: the United States dollar, the euro, the Norwegian
kroner, the Japanese yen, the British pound, the Swiss franc and the Australian dollar. The
Canadian dollar most closely resembles the ideal floating currency as the Canadian central
bank has not interfered with its price since it officially stopped doing so in 1998. The US
dollar runs a close second with very little change in its foreign reserves; by contrast, Japan
and the United Kingdom intervene to a greater extent.
From 1946 to the early 1970s, the Breton Woods system made fixed currencies the norm;
however, in 1971, the United States government would no longer uphold the dollar
exchange at 1/35th of an ounce of gold, so that the US dollar was no longer a fixed currency.
After the 1973 Smithsonian Agreement, most of the world's currencies followed suit. Few
countries fixed their currency with another currency; however, lately some of these
countries are causing their economy to slow its growth. For example, most of the Gulf States
had their currency fixed with the US Dollar, and by this strategy it resulted in dragging their
currency value down with the US Dollar's declining value. A floating currency is one where
targets other than the exchange rate itself are used to administer monetary policy. See open
market operations.
Under a system of pegged exchange rates, short-term capital movements are likely to be
equilibrating if people are confident that parities will be maintained. That is, short-term
capital flows are likely to reduce the size of overall balance-of-payments deficits or
surpluses. On the other hand, if people expect a parity to be changed, short-term capital
flows are likely to be disequilibrating...
India is a union of twenty-eight states and seven union territories. [dead link] As of 2011,
with an estimated population of 1.21 billion, India is the world's second most populated
country after the People's Republic of China. India occupies 2.4 percent of the world's land
surface area and is home to 17.5 percent of the world's population. The eastern and
western coastal regions of Deccan plateau are also densely populated regions of India. The
Tharp Desert in western Rajasthan is one of the most densely populated deserts in the
world. The northern and north-eastern states along the Himalayas contain cold arid deserts
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with fertile valleys. These states have less population density due to indomitable physical
barriers.
Oil and Natural Gas Corporation Limited (ONGC) (NSE: ONGC, BSE: 500312) is an Indian
multinational oil and gas company headquartered in Defraud, India. It is one of the largest
Asia-based oil and gas exploration and production companies, and produces around 72% of
India's crude oil (equivalent to around 30% of the country's total demand) and around 48%
of its natural gas. It is one of the largest publicly traded companies by market capitalization
in India. ONGC has been ranked 357th in the Fortune Global 500 list of the world's biggest
corporations for the year 2012. It is also among the Top 250 Global Energy Company by
Plats.
ONGC was founded on 14 August 1956 by the Indian state, which currently holds a 69.23%
equity stake. It is involved in exploring for and exploiting hydrocarbons in 26 sedimentary
basins of India, and owns and operates over 11,000 kilometres of pipelines in the country.
Its international subsidiary ONGC Videos currently has projects in 15 countries.ONGC has
discovered 6 of the 7 commercially-producing Indian Basins, in the last 50 years, adding over
7.1 billion tonnes of In-place Oil & Gas volume of hydrocarbons in Indian basins. Against a
global decline of production from matured fields, ONGC has maintained production from its
brown fields like Mumbai High, with the help of aggressive investments in various IOR
(Improved Oil Recovery) and EOR (Enhanced Oil Recovery) schemes. . Recovery Factor has
improved from 28 per cent [in 2000] to 33.5 per cent (in 2011). Significantly Reserve
Replenishment Ratio for the last 7 years has been more than one.
The Organisation of Islamic Cooperation (OIC; Arabic; French: Organisation de la
Cooperation Islamique, OCI)[a 1] is an international organisation consisting of57 member
states. The organisation states that it is "the collective voice of the Muslim world" and works
to "safeguard and protect the interests of the Muslim world in the spirit of promoting
international peace and harmony".
The OIC has a permanent delegation to the United Nations, and is the largest international
organisation outside the United Nations. The official languages of the OIC are Arabic, English
and French.
NTPC Limited (formerly National Thermal Power Corporation) (BSE: 532555, NSE: NTPC) is
the largest Indian state-owned electric utilities company based in New Delhi, India. It is
listed in Forbes Global 2000 for 2012 ranked at 337th in the world. It is an Indian public
sector company listed on the Bombay Stock Exchange in which at present the Government
of India holds 84.5% (after divestment of the stake by Indian government on 19 October
2009) of its equity. With an electric power generating capacity of 41,184 MW, NTPC has
embarked on plans to become a 128,000 MW company by 2032. It was founded on 7
November 1975.
On 21 May 2010, NTPC was conferred Maharatna status by the Union Government of India.
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NTPC's core business is engineering, construction and operation of power generating plants
and providing consultancy to power utilities in India and abroad.
The total installed capacity of the company is 36,514 MW (including JVs) with 16 coal-based
and seven gas-based stations, located across the country. In addition under JVs (joint
ventures), six stations are coal-based, and another station uses naphtha/LNG as fuel. By
2017, the power generation portfolio is expected to have a diversified fuel mix with coalbased capacity of around 27,535 MW, 3,955 MW through gas, 1,328 MW through hydro
generation, about 1,400 MW from nuclear sources and around 1,000 MW from Renewable
Energy Sources (RES). NTPC has adopted a multi-pronged growth strategy which includes
capacity addition through green field projects, expansion of existing stations, joint ventures,
subsidiaries and takeover of stations.
NTPC has been operating its plants at high efficiency levels. Although the company has 19%
of the total national capacity it contributes 29% of total power generation due to its focus
on high efficiency. NTPC’s share at 31 Mar 2001 of the total installed capacity of the country
was 24.51% and it generated 29.68% of the power of the country in 2008–09. Every fourth
home in India is lit by NTPC. As at 31 Mar 2011 NTPC's share of the country's total installed
capacity is 17.18% and it generated 27.4% of the power generation of the country in 2010–
11. NTPC is lighting every third bulb in India. 170.88BU of electricity was produced by its
stations in the financial year 2005–2006. The Net Profit after Tax on 31 March 2006 was
58.202 billion. Net profit after tax for the quarter ended 30 June 2006 was 15.528 billion,
which is 18.65% more than that for the same quarter in the previous financial year. It is
listed in Forbes Global 2000, for 2011 ranked it 348th in the world.
A sail is a surface, typically made of fabric and supported by a mast, whose purpose is to
propel a sailing vessel. Occasionally sails may also be found on land vehicles.
Pursuant to a special resolution passed by the Shareholders at the Company’s Annual
General Meeting on 23 September 2005 and the approval of the Central Government under
section 21 of the Companies Act, 1956, the name of the Company "National Thermal Power
Corporation Limited" has been changed to "NTPC Limited" with effect from 28 October
2005. The primary reason for this is the company's foray into hydro and nuclear based
power generation along with backward integration by coal mining.
Bharat Heavy Electricals Limited (BHEL) is an Indian state-owned integrated power plant
equipment manufacturer and operates as engineering and manufacturing company based in
New Delhi, India. BHEL was established in 1964, ushering in the indigenous Heavy Electrical
Equipment industry in India. The company has been earning profits continuously since 197172 and paying dividends since 1976-77. It is one of the only 7 mega Public Sector
Undertakings (PSUs) of India clubbed under the esteemed 'Maharatna' status. On 1
February 2013, the Government of India granted Maharatna status to Bharat Heavy
Electricals Limited.
It is engaged in the design, engineering, manufacture, construction, testing, commissioning
and servicing of a wide range of products and services for the core sectors of the economy,
viz. Power, Transmission, Industry, Transportation, Renewable Energy, Oil & Gas and
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Defence. It has 15 manufacturing divisions, two repair units, four regional offices, eight
service centres, eight overseas offices and 15 regional centres and currently operates at
more than 150 project sites across India and abroad. Most of its manufacturing units and
other entities have been accredited to Quality Management Systems (ISO 9001:2008),
Environmental Management Systems (ISO 14001:2004) and Occupational Health & Safety
Management Systems (OHSAS 18001:2007).
It is the 7th largest power equipment manufacturer in the world. In the year 2011, it was
ranked ninth most innovative company in the world by US business magazine Forbes. BHEL
is the only Indian Engineering company on the list, which contains online retail firm Amazon
at the second position with Apple and Google at fifth and seventh positions, respectively. It
is also placed at 4th place in Forbes Asia's Fabulous 50 List of 2010.
BHEL has a share of 59% in India’s total installed generating capacity contributing 69%
(approx.) to the total power generated from utility sets (excluding non-conventional
capacity) as of March 31, 2012. The company has been exporting its power and industry
segment products and services for over 40 years. BHEL’s global references are spread across
75 countries. The cumulative overseas installed capacity of BHEL manufactured power
plants exceeds 9,000 MW across 21 countries including Malaysia, Oman, Iraq, the UAE,
Bhutan, Egypt and New Zealand. Its physical exports range from turnkey projects to after
sales services.
The company's Corporate R&D division at Hyderabad leads BHEL's research efforts in a
number of areas of importance to its product range. Research and Product Development
(RPD) centres at all its manufacturing divisions play a complementary role. BHEL has
introduced, in the recent past, several state of the art products. Commercialisation of
products and systems developed by way of in-house Research and Development
contributed Rs.95, 120 Million corresponding to around 19.3% of the company's total
turnover in 2011-12. In 2011-12, BHEL filed 351 patents and copyrights, enhancing the
company's intellectual capital to 1,786 patents and copyrights filed, which are in productive
use in the company's business. The company established four new Centres of Excellence,
taking the total tally to 13. Significantly, BHEL is one of the only four Indian companies and
the only Indian Public Sector Enterprise figuring in 'The Global Innovation 1000' of Booz &
Co., a list of 1,000 publicly traded companies which are the biggest spenders on R&D in the
world.
The company boasts of a dedicated team of highly skilled and committed workforce of
49,390 employees.
BHEL works along a pre-determined CSR Scheme and its Mission Statement on CSR is "Be a
Committed Corporate Citizen, alive towards its Corporate Social Responsibility". BHEL's
contributions towards Corporate Social Responsibility till date include adoption of villages,
free medical camps/charitable dispensaries, schools for the underprivileged and
handicapped children, ban on child labour, disaster/natural calamity aid, employment for
the differently abled, widow resettlement, employment for ex-serviceman, irrigation using
treated sewage, pollution checking camps, plantation of millions of trees, energy saving and
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conservation of natural resources through environmental management. As part of social
commitment, BHEL provides financial assistance to various NGOs/Trusts/Social Welfare
Societies that are engaged in social welfare activities throughout the country. 56 villages
having nearly 80,000 inhabitants have been adopted.
In June 2012, BHEL commissioned 250 MW power generating unit at Harduaganj in Uttar
Pradesh. This would add six million units of electricity on a daily basis.
Coal India Limited (CIL) (BSE: 533278, NSE: COALINDIA) is an Indian state-controlled coal
mining company headquartered in Kolkata, West Bengal, India and the world's largest coal
miner with revenue exceeding 624.15 billion (FY 2012). It was formerly owned entirely by
the Union Government of India, under the administrative control of the Ministry of Coal. It is
involved in coal mining and production industry. In April 2011, CIL was conferred the
Maharatna status by the Union Government of India and ranked as one of India's most
valuable companies by market value.
In 2010, CIL's initial public offering (IPO) got subscribed 15.28 times, collecting a record over
2.4 trillion—the highest IPO subscription so far. On the first day of its listing on the Sensex,
its stock closed 40% higher than IPO price. It is India's largest ever public offer from Coal
India Ltd. to raise up to 150 billion (US$2.7 billion). It is currently 90% owned by the
Government of India with the remaining 10% owned by the public.
Hindustan Aeronautics Limited based in Bangalore, India, is one of Asia's largest aerospace
companies. Under the management of the Indian Ministry of Defence, this state-owned
company is mainly involved in aerospace industry, which includes manufacturing and
assembling aircraft, navigation and related communication equipment, as well as operating
airports.
HAL built the first military aircraft in South Asia and is currently involved in the design,
fabrication and assembly of aircraft, jet engines, and helicopters, as well as their
components and spares. It has several facilities spread across several states in India
including Nasik, Korwa, Kanpur, Koraput, Lucknow, Bangalore and Hyderabad. The German
engineer Kurt Tankdesigned the HF-24 Marut fighter-bomber, the first fighter aircraft made
in India.
Hindustan Aeronautics has a long history of collaboration with several other international
and domestic aerospace agencies such as Airbus, Boeing, Sukhoi Aviation Corporation, Elbit
Systems, Israel Aircraft Industries, RSK MiG, BAE Systems, Rolls-Royce plc, Dassault Aviation,
Dornier Flugzeugwerke, the Indian Aeronautical Development Agency and the Indian Space
Research Organisation.
GAIL (India) Limited is the largest state-owned natural gas processing and distribution
company headquartered in New Delhi, India. It has following business segments: Natural
Gas, Liquid Hydrocarbon, LPG Transmission, Petrochemical, City Gas Distribution,
Exploration and Production, GAILTEL and Electricity Generation. GAIL has been conferred
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with the Maharatna status on 1 Feb 2013, by the Government of India. Currently only six
other Public Sector Enterprises (PSEs) enjoy this coveted status amongst all central CPSEs.
The Financial Sector Legislative Reforms Commission (FSLRC) is a body set up by the
Government of India, Ministry of Finance, on 24 March 2011, to review and rewrite the
legal-institutional architecture of the Indian financial sector. This Commission is chaired by a
former Judge of the Supreme Court of India, Justice B. N. Srikrishna and has an eclectic mix
of expert members drawn from the fields of finance, economics, public administration, law
etc. Complete details about the Commission are available at their official webpage.
Based on substantive research, extensive deliberations in the Commission and in its Working
Groups, interaction with policy makers, regulators, experts and stakeholders; the
Commission has evolved a tentative framework on the legal–institutional structure required
for the Indian financial sector in the medium to the long run. The broad contour of that
framework is outlined in the Approach Paper released by the Commission on 4 October
2012.
Based on further feedback on the proposals from stakeholders and deliberations thereon,
the FSLRC proposes to complete its Report by March 2013.
Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with the RBI. If
the central bank decides to increase the CRR, the available amount with the banks comes
down. The RBI uses the CRR to drain out excessive money from the system.
Scheduled banks are required to maintain with the RBI an average cash balance, the amount
of which shall not be less than 4% of the total of the Net Demand and Time Liabilities
(NDTL), on a fortnightly basis.
Statutory liquidity ratio refers to the amount that the commercial banks require to
maintain in the form of gold or govt. approved securities before providing credit to the
customers. Here by approved securities we mean, bond and shares of different companies.
Statutory Liquidity Ratio is determined and maintained by the Reserve Bank of India in order
to control the expansion of bank credit. It is determined as percentage of total demand and
time liabilities. Time Liabilities refer to the liabilities, which the commercial banks are liable
to pay to the customers after a certain period mutually agreed upon and demand liabilities
are such deposits of the customers which are payable on demand. Example of time liability
is a fixed deposits for 6 months, which is not payable on demand but after six months.
Example of demand liability is deposit maintained in saving account or current account,
which are payable on demand through a withdrawal form of a cheque .it is ratio. SLR is used
by bankers and indicates the minimum percentage of deposits that the bank has to maintain
in form of gold, cash or other approved securities. Thus, we can say that it is ratio of cash
and some other approved liabilities(deposits). It regulates the credit growth in India
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The liabilities that the banks are liable to pay within one month's time, due to completion of
maturity period, are also considered as time liabilities. The maximum limit of SLR is 40% and
minimum limit of SLR is 23% In India, Reserve Bank of India always determines the
percentage of SLR. There are some statutory requirements for temporarily placing the
money in government bonds. Following this requirement, Reserve Bank of India fixes the
level of SLR. At present, the minimum limit of SLO that can be set by the Reserve Bank is
23% AS ON AUGUST 2012 Objectives of SLR: The main objectives for maintaining the SLR
ratio are the following:
•
to control the expansion of bank credit. By changing the level of SLR, the Reserve
Bank of India can increase or decrease bank credit expansion.
•to ensure the solvency of commercial banks. •to compel the commercial banks to invest in
government securities like government bonds.
If any Indian bank fails to maintain the required level of Statutory Liquidity Ratio, then it
becomes liable to pay penalty to Reserve Bank of India. The defaulter bank pays penal
interest at the rate of 3% per annum above the Bank Rate, on the shortfall amount for that
particular day. But, according to the Circular, released by the Department of Banking
Operations and Development, Reserve Bank of India; if the defaulter bank continues to
default on the next working day, then the rate of penal interest can be increased to 5% per
annum above the Bank Rate. This restriction is imposed by RBI on banks to make funds
available to customers on demand as soon as possible. Gold and government securities (or
gilts) are included along with cash because they are highly liquid and safe assets.
The RBI can increase the SLR to contain inflation, suck liquidity in the market, to tighten the
measure to safeguard the customers money. In a growing economy banks would like to
invest in stock market, not in government securities or gold as the latter would yield less
returns. One more reason is long term government securities (or any bond) are sensitive to
interest rate changes. But in an emerging economy interest rate change is a common
activity.
The discount rate at which a central bank repurchases government securities from the
commercial banks, depending on the level of money supply it decides to maintain in the
country's monetary system. To temporarily expand the money supply, the central bank
decreases repo rates (so that banks can swap their holdings of government securities for
cash). To contract the money supply it increases the repo rates. Alternatively, the central
bank decides on a desired level of money supply and lets the market determine the
appropriate repo rate. Repo is short for repossession.
The interest rate charged by banks to their largest, most secure, and most creditworthy
customers on short-term loans. This rate is used as a guide for computing interest rates for
other borrowers. See also London Interbank Offered Rate. Also called prime rate.
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CHAITANYA INSTITUTE
he Department of Revenue and Land Survey, is a key government department under
Government of Kerala, that manages all government owned lands and decides land use
policy in the state of Kerala. The department is also a key government agency, deriving
various taxes on land, as well as lease amounts from various government lands, which are
principal sources of income for the Government. In addition, the department manages landuse policy, survey of land areas, and effective management and implementation of land
reforms.
Many countries impose corporate tax, also called corporation tax or company tax, on the
income or capital of some types of legal entities. A similar tax may be imposed at state or
lower levels. The taxes may also be referred to as income tax or capital tax. Entities treated
as partnerships are generally not taxed at the entity level. Most countries tax all
corporations doing business in the country on income from that country. Many countries tax
all income of corporations organized in the country.
Company income subject to tax is often determined much like taxable income for
individuals. Generally, the tax is imposed on net profits. In some jurisdictions, rules for
taxing companies may differ significantly from rules for taxing individuals. Certain corporate
acts, like reorganizations, may not be taxed. Some types of entities may be exempt from tax.
Many countries tax corporate entities on income and also tax the owners when the
corporation pays a dividend. Where the owners are taxed, a withholding tax may be
imposed. Generally, these taxes on owners are not referred to as corporate tax.
Customs is an authority or agency in a country responsible for collecting and safeguarding
customs duties and for controlling the flow of goods including animals, transports, personal
effects and hazardous items in and out of a country.
Depending on local legislation and regulations, the import or export of some goods may be
restricted or forbidden, and the customs agency enforces these rules. The customs authority
may be different from the immigration authority, which monitors persons who leave or
enter the country, checking for appropriate documentation, apprehending people wanted
by international arrest warrants, and impeding the entry of others deemed dangerous to
the country.
In most countries customs are attained through government agreements and international
laws. A customs duty is a tariff or tax on the importation (usually) or exportation (unusually)
of goods. In the Kingdom of England, customs duties were typically part of the customary
revenue of the king, and therefore did not need parliamentary consent to be levied, unlike
excise duty, land tax, or other forms of taxes.
Commercial goods not yet cleared through customs are held in a customs area, often called
a bonded store, until processed. All authorised ports are recognised customs area.
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Answers
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
b
a
a
d
d
a
c
d
d
c
a
d
c
b
d
d
b
c
b
a
d
a
c
c
b
a
c
b
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
d
a
c
c
a
c
b
b
a
a
b
a
c
c
c
a
b
b
d
a
b
c
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