Basics of Economics

  • Economics/अर्थशास्त्र: Derived from the Greek word “Oikonomia” meaning household management.

  • Father of Economics: Adam Smith, author of "The Wealth of Nation" (1776). In contrast, अर्थशास्त्र की रचना was written by कौटिल्य focusing on politics.

  • Microeconomics:

    • जनक (Father): Alfred Marshall.
    • Also known as Price Theory (मूल्य सिद्धांत).
    • Focuses on the behavior of individual consumers and firms, individual demand and individual supply
    • Studies the economy of a single person or institution (एकल व्यक्ति, संस्था की अर्थव्यवस्था का अध्ययन).

  • Macroeconomics:

    • जनक (Father): J.M. Keynes.
    • Also known as Income Theory (आय सिद्धांत)
    • Studies the economy as a whole, aggregate demand, and aggregate supply (समग्र रूप से अर्थव्यवस्था का अध्ययन करता है।).

  • Ragnar Frisch: Norwegian economist who coined the terms 'microeconomics' and 'macroeconomics' in 1933.

  • Micro vs Macro: Microeconomics is also called Price Theory; Macroeconomics is also called Income Theory.

  • Sectors of the Indian Economy:

    • Primary Sector: प्राकृतिक संसाधनों पर आधारित

    • Based on natural resources (प्राकृतिक संसाधनों पर आधारित).

    • Examples: Agriculture, forestry, animal husbandry, poultry farming, sericulture, beekeeping, mining, डेयरी etc. (कृषि, वानिकी (Forest), पशुपालन मुर्गी पालन रेशम पालन, मधुमक्खी पालन, Mining | ख+7 डेयरी etc)

    • Red Collar Jobs: People engaged in primary activities are called red-collar workers.

    • Secondary Sector: सभी प्रकार के उद्योग-धंधे / All Indusines औद्योगिक क्षेत्र (Industrial sector

    • All types of industries (सभी प्रकार के उद्योग-धंधे).

    • also known as Industrial sector (औद्योगिक क्षेत्र).

    • Examples: कपडा उद्योग, चमडा उद्योग etc (textile industry, leather industry).

    • Blue Collar Jobs: People engaged in secondary activities are called blue collar workers.

    • Tertiary Sector: तृतीयक क्षेत्र

    • Encompasses all services (सभी प्रकार की सेवाएँ).

    • Also known as Service sector (सेवा क्षेत्र).

    • Examples: शिक्षा, बँकिंग, बीमा, परिवहन होटल, इंटरनेट Telecom, fullan call etc education, banking, insurance, transport, hotels, internet, telecom, call centers).

    • White Collar Jobs: Jobs in this sector are known as white collar jobs.

  • Types of Economies (विकास के आधार पर): (Based on Development)

    • Developed Countries: विकसित देश

    • Where the development process has ended (जहाँ विकास की प्रक्रिया समाप्त).

    • Characterized by high GDP, high per capita income, low poverty and unemployment (उच्च GDP, उच्च प्रति व्यक्ति आय कम गरीबी और कम बेरोजगारी).

    • Examples: USA, Canada, Germany, France (USA, कनाडा, जर्मनी, फ्रांस etc).

    • Developing Countries: विकासशील / अल्प विकसित देश

    • Where the development process is ongoing (विकास की प्रक्रिया चालू है।).

    • Characterized by low GDP, low per capita income, poverty and unemployment, and slower industrialization (निम्न ५०९, निम्न प्रति व्यक्ति आप गरीबी और बेरोजगारी औद्योगिकरण की गति कम).

    • Examples: India, China, Pakistan (India, China, Pakistan etc).

    • Underdeveloped Countries: अल्प-विकसित

    • Primarily based on the primary sector (प्राथमिक क्षेत्र या आधारित).

    • Characterized by extreme poverty and unemployment (अत्याधिक गरीबी और बेरोजगारी).

    • Largely कृषि आधारित / agriculture-based.

    • Examples: Uganda, Somalia (Uganda, सोमिलामा etc).

  • Types of Economies (स्वामित्व के आधार पर): (Based on ownership on resources)

    • Capitalist Economy: पूँजीवादी

    • Powers are in private hands (शक्तियाँ Private हाथों में).

    • Profit-oriented (profit-oriented / लाभ-जनित अर्थव्यवस्था).

    • Driven by market demand and supply (यह बाजार की माँग एवं पूर्ति (Demand & pupply))

    • Also called Market Economy (इसे बाजार अर्थव्यवाथा (Market Enomy) कहते ).

    • Laissez-faire (minimal government intervention).

    • Examples :USA, UK, Japan, Singapore etc.

    • Socialist Economy: समाजवादी

    • Powers are in the hands of the government (शक्तियाँ Govt / सरकार के हाथों में).

    • Focuses on social welfare (Social-welfare / सामाजिक-कल्याण)

    • Non-Market, Planned economy, Command economy ((Non-Market), नियोजित (Planard Economy), Command (कमान) अर्थव्यवस्था).

    • Examples: Cuba, North Korea, and Vietnam

    • Mixed Economy: मिश्रित

    • Combination of capitalist and socialist economies (पूँजीवादी + समाजवादी).

    • Aims for social welfare (सामाजिक कल्याण).

    • Also known as Dual Economy (दोहरी) अर्थव्यवस्था).

    • Examples : India, Russia, China etc.

  • Types of Economies (विदेशी संबंधों के आधार पर): (Based on Foreign relations)

    • Open Economy: खुली अर्थव्यवस्था

    • Countries that engage in import and export (आयात-निर्यात करते हो).

    • Examples: India, China, USA (India, चीन, USA etc).

    • Closed Economy: बंद अर्थव्यवस्था

    • Neither exports nor imports (न तो Export और न ही Import).

    • No perfect real-world example.

  • Money: मुद्रा

    • Medium of Exchange (विनिमय का माध्यम) used to buy goods, services, or settle debts.

    • Barter System: Exchange of goods for other goods.

  • Properties of Money:

    • Unit of Account (खाते की इकाई) = Measurement / मापन

    • Store of Value (भंडार के रूप में) = संग्रह कर सकते है।

    • Deferred payment (आस्थिगित भुगतान) = भविष्य (fetime) के भुगताह

    • Requires acceptance to all.

  • Functions of Money:

    • Primary Functions: Medium of Exchange, Measure of Value

    • Secondary Functions: Store of Value, Standard of Deferred Payments

  • Types of Money:

    • Fiat Money: Also called Legal tender money (कानूनी तौर पर मान्य मुद्रा), Issued by the government (कागजी मुद्रा).

    • Examples: Notes & coins.

    • Commodity Money: Interchangeable physical item.

    • Near Money: (Liquid Asset / तरल सम्पत्ति)Easily converted into cash.

    -तुरंत ऐसी Asset / सम्पत्ति जिन्हें नकद (Cash) में बदली जा सके

    • Fiduciary Money: Based on Trust

    • Check.

    • Hot Money: Foreign currency (ForEx = foreign Exchange,

    • Examples: Dollar, Euro.

    • Plastic Money: ATM Card (Debit Card, Credit Card.

    • Virtual money / Digital Money: Online Payment

    -Mobile Banking, Paytm, Gpay Bitcoin Dogecoin etc.

  • Banking Services: भारत का पहला बैंक = Bank of Hindustan ( 1770 में बनाया था 1832 में बंद हो गया

    • Banks accept deposits and provide loans.

  • Commercial Banks: व्यापारिक बैंक

    • Offer all banking services.

    • Public Sector Bank: Governed > 50% by Government

    • SBI, PNB, BOB, Indian Bank etc

    • Private Sector Bank: Private Companies

    -HDFC, EC1CL, Axis, Ves Bank ete.

    -Regional Rural Bank (RRB): सरकार द्वारा ग्रामीण क्षेत्रों में Banking सेवा देना।

  • Payments Bank: यह केवल Demand Deposit (Saving Alc+
    स्वीकार(प्राग जमा) खाता

    • Loans cannot be provided .

    • Capital = 2 100 crore.पहला Payments Bank = Airtel Payments Bank

    • Nachiket Mor Committee.

  • Small Finance Bank: पैसा जमा एवं Loan दोनो प्रदान करती है

    • Committee = ऊषा भोराट

    • Capital = 2 200 crore

  • Regional Rural Banks (RRB): क्षेत्रीय ग्रामीण बैंक).

    • Narasimhan Committee.

    • RRB Act = 1976 -

    • First rural bank = Prathama UP Gramin Bank

  • Development Banks: (विकासशील बैंक provide medium and long-term finance to industrial and agricultural sectors.

    • NABARD, EXIM, SIDBI, NHB

  • IFCI: It means Industrial Finance Corporation of India Ltd and Founded - 1948

  • Reserve Bank of India (RBI): Central Bank. मुख्यालय (Mumbai)

    • 1926 = हिल्टन यंग / रॉयल कमीशन (RBI के लिए)

    • RBI functions as the bank of banks, the government's bank, currency issuer, controller of foreign exchange, and lender of last resort.

  • History of RBI:

    • Setup based on the recommendations of the 1926 Hilton-Young Commission.

    • Established on April 1, 1935, in Kolkata; shifted to Mumbai in 1937.

    • Nationalized on January 1, 1949.

    • First Governor: Sir Osborne A. Smith

    • First Indian Governor: C.D. Deshmukh

  • (Monetary Policy):

    • CRR (Cash Reserve Ratio): Ratio of bank's total deposit to be kept with RBI.

    • SLR (Statutory Liquidity Ratio): Ratio of bank's total deposit to be maintained with itself in cash or liquid assets.

    • LAF (Liquidity Adjustment Facility).

    • Repo Rate: rate on which Reserve Bank lends money to commercial banks for short term.

    • Reverse Repo Rate:Reverse repo is the rate at which the RBI keeps the extra deposit of सभी बैंकों की अतिरिक्त जमा राशि को अपने पास रखता है।

    • Bank Rate: Rate at which RBI offers long term loans to commercial banks..

    • MSF (Marginal Standing Facility): The MSF at which banks can borrow overnight funds from the RBI

    • OMO (Open Market Operations): Buying and selling of government securities to control liquidity.

  • Indian Money System / भारतीय मुद्रा प्रणाली

    • Reserve Bank has the monopoly for printing the currency notes in the country (except one rupee note)

    • All coins and One Rupee Note Is under Govt. of India.

    • The One Rupee note is signed by Finance Secretary.

    • In 1957, the rupee was decimalised and divided into 100 naye paise.

    • In 2010, a new rupee sign was officially adopted.

-Note Printing Press in India:

Location: Dewas, Madhya Pradesh, Nasik, Maharashtra, Mysuru, Karnataka, Salboni, West Bengal

*Indian Money SystemThere are Four mints are in India: Mumbai in Maharashtra, Noida in Uttar Pradesh, Kolkata, and Hyderabad.
- Notes may be printed in denominations not higher than Ten thousand rupees.

  • RBI maximum कितने रुपये का नोट बना सकता है - 10,000 का नोट

    • सरकार - : 1000 का सिक्का
      कुल भाषार : 15 (स्थानीय भाषाएँ) + Hindi+ English = 17 भाषाएँ

  • Features of New Currency Notes the amount is written in totally 17 languages

-Monetary Policy process by which the monetary authority of a country, generally central bank, controls the supply of money in the economy by RBI

  • Key objective is to control inflation while keeping in mind the objective of growth.

  • Tools include CRR, SLR, LAF (Repo Rate, Reverse Repo Rate), Bank Rate, MSF, OMO.

    -To control Inflation RBI increases

-Inflation:

Situation where prices of goods and services are high (वस्तु एवं सेवाओं की कीमते (Price) सामान्य स्तर से अधिक हो जाए);

 - Reduces purchasing power of money (मुद्रा की क्रय शक्ति (Purchasing power) = कम हो जाएगी Decreases)

  • Demand-Pull Inflation: मांग जनित मुद्रास्फीती, पैसा = M Demand 11 Pice 11

  • Cost-Push Inflation: लागत-जनित मुहाएकी उत्पादन लागत (1) कच्चा माल (1), मजदूरी (१ Price (9)
    Paisa (Money) 201 Ex- Money

    • Types of InflationHeadline Inflation

  • Head line is the measure of total inflation within an economy in the form of CPI or WPI in देश में कुल मुद्रास्फीती
    Coxe inflation excluding food & energy (Food & Energy Product

    • StagflationInflation + Unemployment + Stagflation Inflation 1004500g Stagflation is persistently high inflation, high unemployment and low growth resulting in a stagnant economy of T

-. Effects of Inflation: Due to inflation, the prices of goods and services increase, which has an adverse effect on the fixed income group..A lending loss and the borrower gains
Inflation has a favorable effect on the farming class and produce because the price of farming product increases during Inflation
Due to inflation, the producer and the entrepreneurial class are benefited because of the prices of increasing product

  • Measurement of InflationСРІ, WPI

    -Wholesale Price Index): is computed by Office of the Economic Advisor(OEA)
    ,
    Department of Industrial Policy and Promotion, Ministry of Commerce and Industry 697Items for Primary Articles, Fuel & Power Manufactured Products.WPI basket does not cover services

-Decimation 1 रूपया 100 पैसे27 से 672

प्रतीक == र/ D. उदय कुमार 12