✅ Prelims 2022 Economy -
🅾️1) Rapid financing instrument - Possible context - Srilanka economic crisis ( if you read the highlights, there is a direct reference to emergency lending) and Pakistan crisis in 2020- How to try attempting this- Keyword= Rapid- indicating an emergency- Rest of the orgs have developmental mandate- Hence IMF
🅾️2) NEER and REER question- Explained in this video - Click here after 51:00 but one should be careful with the wording- Question is about increase and decrease in value- and its impact on appreciation - so the option is 1 and 3- If you need more explanation - https://qr.ae/pvFxRy
🅾️3) RBI- Very straightforward- explained here in this video- https://youtu.be/bQAPuz1Q8IQ
🅾️4) The theme of G20's role in financial architecture was covered here- Click here but forgot to explicitly mention paris club
🅾️5) Inflation indexed bonds- basics- don't remember covering it in crash course- but doable through basics- every standard textbook and test series would have covered this
🅾️6) E commerce Question- Read the paragraph in the third column highlighted in blue and the related comments posted- Click here
🅾️8) Indirect Transfers - If you are aware of the Vodafone issue- the cairns issue- covered multiple times- it would have been an easy guess follow the list of article links- Click here
🅾️9) Acquiring new technology is capital expenditure- Very clearly explained- https://youtu.be/bQAPuz1Q8IQ?t=868
🅾️10) Internal Debt - Multiple times it was covered- CLick here + Components of debt + video and also in latest crash course video- https://youtu.be/bQAPuz1Q8IQ?t=3781
🅾️61) US FED reserve rates- explained here - https://youtu.be/MHgb9LOgBrY- 18:00
🅾️63) Credit rating agencies- explained in the video about how they will be regulated by SEBI- https://youtu.be/uo2vImBIkaI at 5:50
🅾️64) Bank board bureau- Click here- This is an old issue- so must have been difficult to revise from this channel but the issue is a static one
🅾️65) Convertible bonds- This was not covered in the crash course or news as it was a core static concept- but an easy one if you know the static part well.
🅾️68) D- No need to explain - You cant get this wrong in anyway
🅾️71) c- Labor Bureau- Click here
🅾️79) Tea board- Click here and Bangalore has headquarters of coffee board, I have posted about coffee growing areas- Click here- Not direct but the fact that most boards are closer to the main areas of production should have helped
To be contd... Will do the rest soon.
🅾️1) Rapid financing instrument - Possible context - Srilanka economic crisis ( if you read the highlights, there is a direct reference to emergency lending) and Pakistan crisis in 2020- How to try attempting this- Keyword= Rapid- indicating an emergency- Rest of the orgs have developmental mandate- Hence IMF
🅾️2) NEER and REER question- Explained in this video - Click here after 51:00 but one should be careful with the wording- Question is about increase and decrease in value- and its impact on appreciation - so the option is 1 and 3- If you need more explanation - https://qr.ae/pvFxRy
🅾️3) RBI- Very straightforward- explained here in this video- https://youtu.be/bQAPuz1Q8IQ
🅾️4) The theme of G20's role in financial architecture was covered here- Click here but forgot to explicitly mention paris club
🅾️5) Inflation indexed bonds- basics- don't remember covering it in crash course- but doable through basics- every standard textbook and test series would have covered this
🅾️6) E commerce Question- Read the paragraph in the third column highlighted in blue and the related comments posted- Click here
🅾️8) Indirect Transfers - If you are aware of the Vodafone issue- the cairns issue- covered multiple times- it would have been an easy guess follow the list of article links- Click here
🅾️9) Acquiring new technology is capital expenditure- Very clearly explained- https://youtu.be/bQAPuz1Q8IQ?t=868
🅾️10) Internal Debt - Multiple times it was covered- CLick here + Components of debt + video and also in latest crash course video- https://youtu.be/bQAPuz1Q8IQ?t=3781
🅾️61) US FED reserve rates- explained here - https://youtu.be/MHgb9LOgBrY- 18:00
🅾️63) Credit rating agencies- explained in the video about how they will be regulated by SEBI- https://youtu.be/uo2vImBIkaI at 5:50
🅾️64) Bank board bureau- Click here- This is an old issue- so must have been difficult to revise from this channel but the issue is a static one
🅾️65) Convertible bonds- This was not covered in the crash course or news as it was a core static concept- but an easy one if you know the static part well.
🅾️68) D- No need to explain - You cant get this wrong in anyway
🅾️71) c- Labor Bureau- Click here
🅾️79) Tea board- Click here and Bangalore has headquarters of coffee board, I have posted about coffee growing areas- Click here- Not direct but the fact that most boards are closer to the main areas of production should have helped
To be contd... Will do the rest soon.
✅Gs-3- Banking- Monetary policy- Currency wars- Reverse currency wars
🅾️The regular sort of currency wars featured countries feeling aggrieved that their trading partners were deliberately pursuing policies to weaken their own currencies
🅾️A reverse currency war, then, is the symmetric situation of "competitive appreciation," in which countries feel aggrieved that their trading partners are deliberately pursuing policies to strengthen the values of their currencies. The motive is putting downward pressure on their CPIs.
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🅾️The regular sort of currency wars featured countries feeling aggrieved that their trading partners were deliberately pursuing policies to weaken their own currencies
🅾️A reverse currency war, then, is the symmetric situation of "competitive appreciation," in which countries feel aggrieved that their trading partners are deliberately pursuing policies to strengthen the values of their currencies. The motive is putting downward pressure on their CPIs.
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@hinduhighlights for News analysis
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#Economy
✅Brent Crude oil V/s West Texas Intermediate Crude oil Benchmark
🅾️Context : Quality of crude oil is mainly about impurities it has- mainly sulphur and extracted from land or wells - the other way is from sea.
🅾️The crude oil which is extracted from the sea = easy to transport, While from land it is supplied with the help of pipelines or trucks=higher transport costs. So for oil trade in commodity markets- these points will be factored in
🔰3 main crude oil benchmarks worldwide :
➡️1.Brent crude oil Benchmark- Crude oil extracted from the North Sea near Norway and the United Kingdom
➡️2. WTI Benchmark- From Us- It is lighter due to its lower API gravity and sweeter due to lower sulfur
➡️ 3. Dubai and Oman Benchmark- used by arab countries
🅾️The price of Brent crude is the international benchmark price used by the Organization of Petroleum Exporting Countries (OPEC), while the WTI crude price is a benchmark for US oil prices.
🎖Follow @economyhighlights for Economy articles.
✅Brent Crude oil V/s West Texas Intermediate Crude oil Benchmark
🅾️Context : Quality of crude oil is mainly about impurities it has- mainly sulphur and extracted from land or wells - the other way is from sea.
🅾️The crude oil which is extracted from the sea = easy to transport, While from land it is supplied with the help of pipelines or trucks=higher transport costs. So for oil trade in commodity markets- these points will be factored in
🔰3 main crude oil benchmarks worldwide :
➡️1.Brent crude oil Benchmark- Crude oil extracted from the North Sea near Norway and the United Kingdom
➡️2. WTI Benchmark- From Us- It is lighter due to its lower API gravity and sweeter due to lower sulfur
➡️ 3. Dubai and Oman Benchmark- used by arab countries
🅾️The price of Brent crude is the international benchmark price used by the Organization of Petroleum Exporting Countries (OPEC), while the WTI crude price is a benchmark for US oil prices.
🎖Follow @economyhighlights for Economy articles.
✅Gs-3 : Mobilization of resources-Banking-> Financial services- Crypto/digital currencies
🅾️SEBI’s Concerns around Crypto Assets
➡️The SEBI has reportedly told the Parliamentary Standing Committee on Finance that regulation of crypto assets would be difficult given the nature of technology that sustains them
🛑What are SEBI’s concerns around crypto assets?
⚜️1. possible need for different regulators to deal with different aspects of a crypto asset market
⚜️2. Protecting consumers- SEBI has suggested that the Consumer Protection Act of 2019 be invoked t
⚜️3. Classification of cryptos-SEBI has said that crypto assets are not part of the definition of what constitutes as securities under the Securities Contracts (Regulation) Act of 1956.
⚜️4. Celebrity endorsements- It has proposed that celebrities should not be allowed to endorse cryptocurrencies. Why?- Click here
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🅾️SEBI’s Concerns around Crypto Assets
➡️The SEBI has reportedly told the Parliamentary Standing Committee on Finance that regulation of crypto assets would be difficult given the nature of technology that sustains them
🛑What are SEBI’s concerns around crypto assets?
⚜️1. possible need for different regulators to deal with different aspects of a crypto asset market
⚜️2. Protecting consumers- SEBI has suggested that the Consumer Protection Act of 2019 be invoked t
⚜️3. Classification of cryptos-SEBI has said that crypto assets are not part of the definition of what constitutes as securities under the Securities Contracts (Regulation) Act of 1956.
⚜️4. Celebrity endorsements- It has proposed that celebrities should not be allowed to endorse cryptocurrencies. Why?- Click here
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Forwarded from VK IAS by Vikas kanukollu (VK)
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➡️These videos will be based on last 2 year contemporary Issues - useful for mains 2022 and Prelims 2023 : Youtube.com/vikaskanukollu
➡️These videos will be based on last 2 year contemporary Issues - useful for mains 2022 and Prelims 2023 : Youtube.com/vikaskanukollu
Forwarded from VK IAS by Vikas kanukollu (VK)
✅Gs-3 : Economic Growth- WTO- Trade
🅾️Major issues at the MC12
➡️1. Agriculture : Issues where Resolution was not reached- permissible public stockholding threshold for domestic food security, domestic support to agriculture, cotton, and market access.
➡️2. Fisheries : India successfully managed to carve out an agreement on ELIMINATING( Keyword in prelims) subsidies to those engaged in illegal, unreported and unregulated fishing. The only exception for continuing subsidies for overfished stock is when they are deemed essential to rebuild them to a biologically sustainable level.
➡️3.Patent relaxations : Member countries agreed on authorising the use of a patent for producing COVID-19 vaccines by a member country, without the consent of the rights holder.
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🅾️Major issues at the MC12
➡️1. Agriculture : Issues where Resolution was not reached- permissible public stockholding threshold for domestic food security, domestic support to agriculture, cotton, and market access.
➡️2. Fisheries : India successfully managed to carve out an agreement on ELIMINATING( Keyword in prelims) subsidies to those engaged in illegal, unreported and unregulated fishing. The only exception for continuing subsidies for overfished stock is when they are deemed essential to rebuild them to a biologically sustainable level.
➡️3.Patent relaxations : Member countries agreed on authorising the use of a patent for producing COVID-19 vaccines by a member country, without the consent of the rights holder.
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@upschighlights for prelims info
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✅Gs-3 : Govt Budgeting- Twin Deficits in Indian Economy
🅾️ Twin deficit identity is used to refer to a nation's current account deficits and a simultaneous fiscal deficit.
➡️This topic has been explained in this video - CLICK HERE- look at the chapters in the description box
🅾️What are the fundamentals of an economy?- How is Indian economy faring? why should the govt increase govt spending?- Click here
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🅾️ Twin deficit identity is used to refer to a nation's current account deficits and a simultaneous fiscal deficit.
➡️This topic has been explained in this video - CLICK HERE- look at the chapters in the description box
🅾️What are the fundamentals of an economy?- How is Indian economy faring? why should the govt increase govt spending?- Click here
🎖Follow @economyhighlights for Economy articles.
🎖Please Subscribe : Youtube.com/vikaskanukollu
Forwarded from VK IAS by Vikas kanukollu (VK)
✅Gs-3: Mobilization of Resources- Taxation- GST
➡️Context : Critical analysis of GST performance- 5 years since inception
🛑What are the positives of GST?
⚜️1. Automated Indirect Tax Ecosystem: e-way bills - crackdown on fake invoicing
⚜️2. Ease of doing business- ex : linking the customs portal with GST portal for credit availability on imports
⚜️3. GST Council structure has been very functional and agile- Ex : Discussions related to relaxations for dealing with the Covid-19 pandemic
🛑Issues :
⚜️1. Federalism issues- Compensation cess- Click here
🔶Issue of tax on fuel- Click here
⚜️2. Issues raised by 15th FC- Click here
⚠️Take away from this article- Experiences from Australia
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➡️Context : Critical analysis of GST performance- 5 years since inception
🛑What are the positives of GST?
⚜️1. Automated Indirect Tax Ecosystem: e-way bills - crackdown on fake invoicing
⚜️2. Ease of doing business- ex : linking the customs portal with GST portal for credit availability on imports
⚜️3. GST Council structure has been very functional and agile- Ex : Discussions related to relaxations for dealing with the Covid-19 pandemic
🛑Issues :
⚜️1. Federalism issues- Compensation cess- Click here
🔶Issue of tax on fuel- Click here
⚜️2. Issues raised by 15th FC- Click here
⚠️Take away from this article- Experiences from Australia
🎖Join
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✅Gs-3 : Banking- Primary Agriculture Credit Societies (PACS) digitization
➡️To fix the Regulatory issue : Cooperative banks regulation at 26:00 in this video-This was discussed in this video- Click here
🅾️Issue : Lack of computerization= scope for data manipulation and no centralisation or connection with other banks in hierarchy.
🅾️Statistical significance : Important for Kisan Credit Card (KCC) loans- PACS account for 41% of the KCC loans- 95 % of these KCC loans are to the Small and Marginal farmers( Source : Click here)
🅾️“Cooperative Societies”- separate ministry - Click here
🔶Cooperative societies vs cooperative banking - Click here
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➡️To fix the Regulatory issue : Cooperative banks regulation at 26:00 in this video-This was discussed in this video- Click here
🅾️Issue : Lack of computerization= scope for data manipulation and no centralisation or connection with other banks in hierarchy.
🅾️Statistical significance : Important for Kisan Credit Card (KCC) loans- PACS account for 41% of the KCC loans- 95 % of these KCC loans are to the Small and Marginal farmers( Source : Click here)
🅾️“Cooperative Societies”- separate ministry - Click here
🔶Cooperative societies vs cooperative banking - Click here
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🎖Please Subscribe : Youtube.com/vikaskanukollu
➡️Measures taken by RBI to boost forex inflows ( Verbatim copy paste from Economic times and RBI website)
The central bank has undertaken five measures to boost the inflows of forex in India. These measures would also diversify and expand forex funding sources to do away with the volatility and dampen global spill-overs. The measures include:
1) Exemption from CRR and SLR on NRE Term Deposits and Incremental FCNR(B)
Currently, banks are mandated to include all Foreign Currency Non-Resident (Bank) [FCNR(B)] as well as Non-Resident (External) Rupee (NRE) deposit liabilities for the purpose of computation of Net Demand & Time Liabilities (NDTL) in order to maintain the cash reserve ratio (CRR) and statutory liquidity ration (SLR). Now RBI has exempted the incremental FCNR(B) and NRE deposits from maintenance of CRR and SLR.
2) Interest Rates on FCNR(B) and NRE Deposits
Currently, interest rates on deposits of FCNR(B) are dependent on ceilings of Overnight Alternative Reference Rate (ARR). As per revised norms, interest rates will not be more than what is offered by banks on rupee terms deposits, in case of NRE deposits. Banks have been temporarily permitted to raise fresh FCNR(B) and NRE deposits, without referring the extant regulations on interest rates.
3) FPI Investment in Debt
RBI has decided to designate the new issuances of G-Secs of 7-year and 14-year tenors, as specified securities under the FAR. Short term limit of 30 % of the investment in government securities and corporate bonds have been kept on hold for FPIs’ investments till October 31, 2022. FPIs have been allowed to stay invested in these instruments till sale or maturity.
4) Lending in Foreign Currency by Authorised Dealer Category I (AD Cat-I) Banks
As per new norms, AD Cat-I banks can utilise OFCBs to lend foreign currency to entities for broader end-use purposes.
5) External Commercial Borrowings (ECBs)
RBI has increased the ECBs limit under automatic route, from USD 750 million per financial year to USD 1.5 billion.
The central bank has undertaken five measures to boost the inflows of forex in India. These measures would also diversify and expand forex funding sources to do away with the volatility and dampen global spill-overs. The measures include:
1) Exemption from CRR and SLR on NRE Term Deposits and Incremental FCNR(B)
Currently, banks are mandated to include all Foreign Currency Non-Resident (Bank) [FCNR(B)] as well as Non-Resident (External) Rupee (NRE) deposit liabilities for the purpose of computation of Net Demand & Time Liabilities (NDTL) in order to maintain the cash reserve ratio (CRR) and statutory liquidity ration (SLR). Now RBI has exempted the incremental FCNR(B) and NRE deposits from maintenance of CRR and SLR.
2) Interest Rates on FCNR(B) and NRE Deposits
Currently, interest rates on deposits of FCNR(B) are dependent on ceilings of Overnight Alternative Reference Rate (ARR). As per revised norms, interest rates will not be more than what is offered by banks on rupee terms deposits, in case of NRE deposits. Banks have been temporarily permitted to raise fresh FCNR(B) and NRE deposits, without referring the extant regulations on interest rates.
3) FPI Investment in Debt
RBI has decided to designate the new issuances of G-Secs of 7-year and 14-year tenors, as specified securities under the FAR. Short term limit of 30 % of the investment in government securities and corporate bonds have been kept on hold for FPIs’ investments till October 31, 2022. FPIs have been allowed to stay invested in these instruments till sale or maturity.
4) Lending in Foreign Currency by Authorised Dealer Category I (AD Cat-I) Banks
As per new norms, AD Cat-I banks can utilise OFCBs to lend foreign currency to entities for broader end-use purposes.
5) External Commercial Borrowings (ECBs)
RBI has increased the ECBs limit under automatic route, from USD 750 million per financial year to USD 1.5 billion.
✅Gs-3 : External sector - trade transactions in rupees
🛑why this move?- Rising imports, falling rupee
🛑 what does this mean now? - For foreign trade importers usually take help of foreign banks - called correspondent banks... Instead of dollars, we shall now pay in rupees. The account that we have with foreign banks is called Vostro account.
🛑why didn't we do this before? - low leverage- now india has a big market- good purchasing power also. It's in the interest of exporters too.
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🛑why this move?- Rising imports, falling rupee
🛑 what does this mean now? - For foreign trade importers usually take help of foreign banks - called correspondent banks... Instead of dollars, we shall now pay in rupees. The account that we have with foreign banks is called Vostro account.
🛑why didn't we do this before? - low leverage- now india has a big market- good purchasing power also. It's in the interest of exporters too.
🎖Follow @economyhighlights for Economy articles.
🎖Please Subscribe : Youtube.com/vikaskanukollu
UPSC Economy by VK IAS (Vikas Kanukollu)
✅Gs-3 : External sector - trade transactions in rupees 🛑why this move?- Rising imports, falling rupee 🛑 what does this mean now? - For foreign trade importers usually take help of foreign banks - called correspondent banks... Instead of dollars, we shall…
🏢 *RBI - Cross Border Trade in Rupee* 📝
*Benefits of the Initiative*
◼️Promote the growth of global trade with emphasis on exports from India
◼️To support the increasing interest of the global trading community in the rupee.
◼️ It will potentially facilitate greater bilateral business with Russia ,Sri Lanka and other interested countries
◼️Help to subside price pressures and strengthen India’s presence in the international market
◼️ The rupee transactions will enhance trade with better give and take with its trade partners
◼️Help narrow the country’s trade deficit as India can now increase the share of Russian oil purchases at a discounted price
◼️Reduce the risk of forex fluctuation,as the dollar had turned extremely volatile and several currencies have hit a new low against the dollar.
*Benefits of the Initiative*
◼️Promote the growth of global trade with emphasis on exports from India
◼️To support the increasing interest of the global trading community in the rupee.
◼️ It will potentially facilitate greater bilateral business with Russia ,Sri Lanka and other interested countries
◼️Help to subside price pressures and strengthen India’s presence in the international market
◼️ The rupee transactions will enhance trade with better give and take with its trade partners
◼️Help narrow the country’s trade deficit as India can now increase the share of Russian oil purchases at a discounted price
◼️Reduce the risk of forex fluctuation,as the dollar had turned extremely volatile and several currencies have hit a new low against the dollar.
Forwarded from VK IAS by Vikas kanukollu (VK)
✅Gs-3 : Economic Growth- Growth Models
🛑Q)Amartya Sen and Bhagwati models of development- differences.
➡️In short this is about a debate on India’s governance priorities.
📍Sen's arguments : While Sen believes that India should invest more in its social infrastructure to boost the productivity of its people and thereby raise growth.Investing in health and education to improve human capabilities is central to Sen’s scheme of things. Without such investments, inequality will widen and the growth process itself will be derailed
📍Bhagwati's arguments : focus on growth -only then we can yield enough resources for investing in social sector schemes-growth may raise inequality initially but sustained growth will eventually raise enough resources for the state to redistribute and mitigate the effects of the initial inequality.
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🛑Q)Amartya Sen and Bhagwati models of development- differences.
➡️In short this is about a debate on India’s governance priorities.
📍Sen's arguments : While Sen believes that India should invest more in its social infrastructure to boost the productivity of its people and thereby raise growth.Investing in health and education to improve human capabilities is central to Sen’s scheme of things. Without such investments, inequality will widen and the growth process itself will be derailed
📍Bhagwati's arguments : focus on growth -only then we can yield enough resources for investing in social sector schemes-growth may raise inequality initially but sustained growth will eventually raise enough resources for the state to redistribute and mitigate the effects of the initial inequality.
🔰Join
@hinduhighlights for News analysis
@upschighlights for prelims info
🎖Please Subscribe : Youtube.com/vikaskanukollu