ECONOMY REVISION

THROUGH QUESTION
Money
1. Functions of money
2. Types of Money? Intrinsic value? Debasement?
3. Fiat Money? Legal tender?
4. Commemorative coin? Can they be used as Legal Tender?
5. Currency not is a ________ note, _________ bearer bond
6. Soil rate?
7. Negotiable Instrument act 1881 lunched by? Why?
8. _______ oxide ink used in cheque
9. CTS? Launched by whom?
10.Core banking solution
11. NEFT RTGS IMPS (by whom?)
12. Payment service by NPCI
13. E-Rupi? Limit?
14. RUPAY work in ______ channel? What are those?
15. Types of ATM?
16. MDR
17. Hot wallet v/s Cold wallet?
18. CBDC has interest?
19. NFT?

MONETARY POLICY
1. High liquid assets?
2. Why do people prefer cash?
3. M1, M2, M3, M4?
4. RBI asset?
5. M0?
6. MM? how it increases?
7. CDR?
8. Reserve Deposit Ratio (RDR)
9. CRR, SLR?
10. Monetary Policy? Quantitative and Qualitative Tools?
11. Difference Between MSF and Repo?
12. LAF?
13.Market Repo?
14. Difference between SDF and Reverse Repo?
15. OMO?
16.G-SAP
17. Bond Yield?
18. Selective Credit Control? Credit Rationing?
19.PSL? Condition for MSME, Startups? PSL certificate?
20. MPC? Members? Quorum? Govt side member selected by committee
headed by______? Min ____ meeting? Minutes published on ____ day?
21. How bank offer loan? External benchmark includes?
22. Who decides repo rate? Who decides the other rates?

Classification of Banks and NBFC

1. Hilton and young commission 1926?
2. Foreigner can buy Indian Bank share (PSB___) (Pvt. Auto___ govt
approval___)
3. Functions of RBI
4. Is RBI regulator of all NBFC
5. Does RRB needs to keep CRR/SLR? PSL %?
6. Small Finance Bank 2015 ________ committee. _____% in unbanked
rural area
7. Difference b/w SFB and PB?
8. Regulators
Type RBI union State

Commercial
 Coop. single stat

Single stat urban

Multi state

9. ECB can’t be utilized for?

10. Is PACS a bank?
11. NABARD is _____% owned by govt.
12. Who published RESIDEX INDEX?
13. Money market v/s capital Market
14. Basel norms are applicable to all NBFC?
15. Micro finance institution regulated by __________
16.
Asset of bank Liability of bank
Loan and advances Deposit
Cash balance with RBI Borrowing
Investment Equity share capital
Fixed asset Reserves and surplus
Balance with bank, call & short Other liability and provision
notice money

BANK BURNING ISSUES

1. Teaser loan?
2. Interest coverage ratio? >1? <1?
3. Standard asset? NPA? Sub-standard asset? Doubtful asset?
4. Provisioning?
5. NPA journey? SMA etc.
6. Stressed assets include?
7. Does cooperative bank have the power of SARFESI ACT?
8. I&B Board members______ (they select IPA and IU)
9. Prepackaging (only for _____)
10. Swiss challenger?
 11. Credit info. Companies (regulated by_____)
12. Public credit ratings (CRISIL, CARE, FITCH India, Brickwork Rating, SMERA)
13. Legal Identity Identifier? (__________ alphanumeric code)
14. Deposit Insurance and credit guarantee corp.? owner? HQ? Compulsory?
_____ lakh insurance? NBFC covered?
15. Bad banks? From whom they buy loans?
16.Prompt corrective action Framework? Monitor under? Applies on?
17. Basel Norms? Basel Capital
18.AT1 bods have high interest rates, no maturity, interest for infinite time
principal not returned
19. Zero coupon bonds?
20. Source of RBI income

SEBI SHAREMARKET
1. Who has the last claim during liquidation? Equity or debt?
2. Debt/bond/Debenture?
3. Money mkt? Capital Mkt? regulator?
4. Debt instrument (short term)
 T-bills (govt) sold @ discount and repurchase @ face, unsecured, high
liquid, union govt (14,91,182,364 days) state can’t, use as SLR
 Ways means and advance: RBI lend on short term to union and state
(3month), not counted in fiscal deficit @repo, beyond repo+2
 Cash mgmt. Bills (less than 91 days)
5. Clearing corporation of India help FI to borrow money through CBLO
6. Call money? (FI borrow themselves for 1 day), Notice money (2-14 days)
7. Debt instrument (long term)
 By govt. (G-sec, Sovereign bonds, Dated sec, Treasury Bonds, Gilt
edged sec (highest quality))
 By comp. (Bond, Debentures)
8. Inflation Indexed Bonds? It is linked with WPI or CPI?
9. Sovereign Gold Bonds? Who issue?
10. Maharaja Bonds? ______ denominated bond?
11.Masala Bond? They can’t be invested in Real estate and Capital mkt.
 12. Electoral Bond? SBI, above 2k, type of zero-coupon bond
13.Equities/share-holding (venture capital, Angel Investor)
14.Blue chip stocks (well established TATA, Reliance etc.)
15.International securities Identification Number (12-digit code)
16. Electronic Gold receipt. (exempted from capital gain tax)
17. AIF category I II III? Hedge funds?
18. P-notes (derivative instruments) use by foreigners to invest in India w/o
register with SEBI
19.IDR same for Indians

BUDGET
1. Term not mentioned in constitution
2. 3 documents (Annual Fin. Statement art. 112, Finance bill for collecting
taxes, Appropriation bill for spending money)
3. Art 110, 109, 266, 267
4. Interim Budget not mentioned in constitution
5. No constitutional obligation to prepare Eco. Survey
6. Chief economic advisor (3yr) fin. Min. dept. of eco affair, not a const. or
statutory post, reappointment possible
7. Dept. of public enterprise gives Ratna status to profit making comp.
8. Progressive tax- direct tax slab depending on income
9. Regressive tax (buying Mobile Phones)
10. Eco. Is wealth of nation Adam Smith
11. Surcharge is tax computed on tax amount, there is no specific objective
(except 10% social welfare surcharge on custom duty imported goods), will
go to CFI and not shared with states
12. CESS (tax + surcharge) clear objective mention, only Union can levy public
account of India
13. Capital gain tax: NA land, property, Jewelry, painting (asset), Patent,
trademark, share, bond
14. 24 July Income tax-day: income other than agriculture
15. Stamp duty (state) union collects and distribute to states
16. Tobin/Robinhood tax every time investor converting currency levy this tax
(economist James Tobin)
17. Indirect tax (custom duty on import and export, service tax) falls under Fin.
Min. Dept of revenue
18. Pigouvian Tax (cigarettes, polluting company alcohol)
19. Sin tax (immoral things cigarette, alcohol)
20. 10% social welfare surcharge not applicable on gold and silver
21. GST council: union (2 FM chairman union min of state for fin.) State (31)
22. Fun of GST council: imp one Decide the date on which % hydrocarbons will
be subsumed u/GST, Dispute resolution
23. Finance commission set up under art 280 UTs are not under FC’s
jurisdiction they’ll not get money
24. Horizontal devolution formula (Income 45%, Pop. 15%, Area 15%, Forest
Ecology 10%, Demographic Performance 12.5%, Tax efforts 2.5%)
25. PMLA
26.FPI are not involve in actual business of a company
27.Hot money: weaking of Indian Rupee (selling Indian share to invest in
foreign)
28.FDI (more than 10% equity/share)
29. FI prohibited in (atomic energy, railway operation, tobacco, Real estate,
Farm House, chit fund, Nidhi company, betting Gambling etc.) Permitted in
govt. route approval of respective min + Commerce min
30. 100% automatic permitted in (ARC, Agri, non-news TV, Township
construction, mining exploration, railway infra)
 31.
Revenue budget Revenue receipts Neither create any
liability nor cause any
reduction in govt asset.
Tax and non-tax
revenues, grants,
interest, dividend
Revenue expenditure Does not create any
asset, covers
administration related
expense
Capital Budget Capital receipts Either create liabilities
or reduce fin asset,
loan recovery, govt
borrowing,
disinvestment
Capital expenditure Either create asset or
reduce liability. Road,
school, repayment of
loan, loan disbursal
32.Major components of non-planned expenditure (interest payment,
Defence, subsidies, Railway, salaries and pensions, non-plan grants)

BALANCE OF PAYMENT
1. Systematic record of all eco transaction made b/w resident and non-
resident. World’s net BOP is Zero
2. Current A/C (Goods and services, wages, dividend, interest, remittance, gift,
donation) [generally deficit]
3. Capital A/C (FDI, FPI, Loans/ECB, Non-residents investment in banks,
insurance, pension schemes, RBI’s Foreign exchange reserve) [generally
surplus]
4. Balance of Trade: Net terms of trade= Value of exported good/value of
imported good, NTT<100 import>export, and vice versa
5. Gross Term of Trade= volume of export good/ vol. of import
6. Ratna companies not for Pvt. Owned companies
7. Mini Ratna 1&2 made profit in last 3 yr.
8. Nav Ratna (non-mini-Ratna govt comp. fulfilling some condition such as
manpower cost to total cost of production)
9. Maha Ratna (already Nav Ratna fulfilling x condition)
10. Food subsidy>fertilizer>petroleum>other
11. Revenue expenditure: interest paid on prev. loan, Grant in aids to states
and local bodies, subsidies, defence revenue expenditure, pension to
retired employees,
12.Tax receipts>>non-tax receipts
13. NEER: geometric avg of rupee exchange rate against up to 40 types of
foreign currency
14.REER when NEER is mathematically adjusted as per CPI inflation in India and
those foreign countries, it interprets as qty of domestic goods required to
purchase one unit of given basket of foreign goods
15.REER>1 export increase and vice versa
16. Twin deficit: High level of fiscal deficit and current account deficit
17.Reserve tranche position of IMF: IMF member country’s quota that is
accessible w/o paying service fees on eco reform condition. Represent the
member’s unconditional drawing right on IMF and can be accessed on short
notice
18. Current account: export and imp of goods and services, Transfer of
payments (remittances), income associated with non-residents and
liabilities (dividend, investment, income etc.)
19.Capital account: FDI, portfolio investment, ECB