CHHATTISGARH BOARD OF SECONDARY EDUCATION, RAIPUR. Sussecr ; Economics Crass : XII Division or Marks ror Project Work : Introduction : The main purpose of project is to provide an opportunity to the students to learn about the fundamentals of business and its management, project gives practical shape to the theoretical leaning of students. Tn project work students can visit the places related to the topics sclected for the project work. They carry out ‘| survey, collect, analyse and record important data and find out. These can be useful in practical life. A project gives the practical knowledge to the students along with the theoretical knowledge. Meaning of Project : By project we mean collect data, analyse it and record important data about a particular opic. ; Objectives of Project -After completion of the project students will be aware of the following : 1. (@) About solution of problems (b) About Management of time (©) Collection of information (4) Finding ont conclusion. 2. (@) Topromate rescarch and development (b) To make study interesting and knowledgeable (©) Interpretation of information (@) To doindependent work and demonstration of capability (© Toattain professionalism. Subject matter of Project :Students can do work in this outline. 1, Introduction of project. 2. Fullexplanation of the subject. 3, Planning of project. 4, Execution of the project. sls mi Se ee ee ee ee etait nontiae i,- 6.Bvaluation. : 3s of the projects : Advantages of Projects +: Following are the PP dens a tlon 1. Students will get knowledge about theeffectiveuse : 2. By project work students will get deep knowledge: about es ee 3, Thasciss inunderstanding environment and to work according to them. 4, It makes study of topic interesting and knowledgeable. ; 5. Tassists in reaching to the conclusion aboutknowledge of specific subject. ‘ i 6. By project students get the theoretical and practical knowledge about the subject or topic. Essential elements of the Project : 1, Project should be clear and full of objects. 2. Keeping in mind the level of students, educational level project should be planned. 3. There should be co-ordination among all the activities related to achieving targets of the project. 4, To reach the clear conclusion of the project. 5, Stadeats should get full satisfaction after completion of the project. General guidelines for the Teachers : 1. Students have to select any one project. So teachers should help students to select the topic. 3 aes should have eee earinent the topic which they are going to select. ae Project and to monitor that students are 4. Observation and guidance of the project should be done about the progress of the project should be done, 5. Tobelp students by applying innovation on project. 6. Teachers role is very important in givi 5 sources to get the itommeabont be upodias en of data. Knowledge about reliable [ students, 7. Teachers should encourage the stndens to have real knowledge an ful So that they should fully face oral questions. ‘Confidence about the project. doing their project in proper [3 byteachers. In specific time discussion analysisstudents about the economic p ea op halenind on ed vple tito WSS ICCTA : fi 5. Effect of economic policies on actual situations of the government, aati 6. To provide opportunities to study about the economic policies related to daily life, Opportunities of Project: ‘i 1. Background. 2. Analysis of the subject matter, 3. Economic incidence/changes, 4. Criticism about the subject Gifitis) 5. Understanding of students regarding project, opinion, experience and outlook about. 6. Any solid idea which is presented by the students. 7. Presentation of the project and submission of the project. 8. Ina fixed time each student has to submit his/her projectby making a file, List for Project (Only suggestions) : 1, Small and cottage industries. 2. Food distribution system in India. 3. Modern/Contemporary opportunities situations in India. 4, Investment policies. 5. Expenditure on health (in any state) 6. GST.Act ILProject (Choice two) : Analysis of any concept of syllabus. Aims of this Project: 1. To doexperiments on relation of economic principles with real life and to develop interest about it. 2. To provide knowledge and understanding regarding the economic causes of concepts given in syllabus. To provide opportunity to learn economic causes of the topics given in the syllabus. 3. To make capable of understanding, thinking and developing own concepts. 4, To develop understanding more than one outlook on any economic problem and develop justified capacity fe and reasoning forit. 5. Differentiate on economic policies in actual world situation. 6. Tomake students aware about the problems of disciplines in economics. 7. Effect of rules and principles of economics on general people. Regions of Project : Analysis of concepts : 1. Meaning and definition. 2. Identification of project. __ 3, Explanation of graphs (if any) eer (ifany)2, Proietion possibility evel 4, Demand andits 6. Supply andits determinants. 7. Rewm of factors of production, §, Price function and price curve. a remepoly. 10, Monopolistic competitions. ey. 12. Creation of credit, Jaa 14, Central bank and its structure. 15. Goverment budget andits components. 16, Deficit Budget. 17, Exchange rate system, 18, Foreign exchange rate. 19, Balance of payment, 20. Any other subject. Presentation of the Project : After completing the project, ssaudents will have to submit the project fil. Following aspects are important regarding it Prepare A Project File :The cover page of the file will be like this : it will have to submit for evaluation. So INrRODUC es = ACKNOWLEDGEMENT w thank teacher of economics Mr/Mirs. fee giving bia fier valushle tines : ‘my project. He/She has given direction and guidance in relation to my rset Sholisku eae making my project successful by throwing lighton important aspects of my project rom time to tin me 'success of my project goes to her/him. ie totime. Creditof‘Name of G 2.Index: On the fst page ofthe project, following description is givens (c) Introduction... . Aims of study. }. Essential information, data and figures for the project. . Planning of the project and execution : (@) Meaning and definition (b) Assumptions and concepts, (©) Explanation and analysis fany) (4) Explanation about graphs ( ifany) (©) Mathematical description regarding concept ifany) . Presentation of the facts and explanation (ifany) ». Conclusion. - Outlook, opinion and views about the subject matter by students, . Mention about the region and its importance, . Signature and remarks of teacher. Project No, 1 Demonerizarion in Inia Outline of the Project (@) Meaning and definition of demonetization (2) Causes and needs of ona ssie ie De He He ee Introduction : Struck on Black money and Fake currency 19 , Fa ee ralph cate) ices andi srk alton Black noncy 20d F262 SG (1) Meaning and Definition of Demonetization ) Meaning :Itis the act of stripping a currency unit of is status as legal tender. Itocours ae ig achange of national currency, The current form or forms of money 1s, pulled from circulation Feet tobe replaced with new notes or coins. Sometimes, a country completely replaces the old currency wit currency. ; Ttis aprocess in which government of any country legally restrict the use of currency After restriction that ‘currency is just apiece of paper. After restriction the old currency is exchanged in banks with new currency within a limited period of time. The old currency is out of circulation. In India, demonetization has taken place thrice. Firstly, in! 2016. the year 1946, then in the year 1978, and lastly in (i) Definition of Demor ++“ Demonetizationis an economic activity under which the government climinates the old currency and applies new currency.” uses and Need! tzatlo _ Torestrit the use of currency because terrorism and use of duplicate and 1. To fight corruption andcrime, money laundering, tax evasion, bribery. ‘2. To combatinflarion. 3. To eradicate counterfeit (Fake) currency. 4, To encourage cashless orless cash economy. 5. To stop terrorist funding which is generally done with black money. nonetizationin India ‘Demonetization took place in India for the first time in 1946. Reserve Bank of India restricted the use of notes of € 1000 and 10,000. In the year 1954 new notes of % 1000, 5000 and & 10,000 was issued. Morarjee |i 4] overnment ban the use of big notes in 1978. Those who had big notes were given time of one week till24® |; January, 1978 to deposit them. Government of Narendra modi on 8" November, 2016 midnight 12 0' clock declared demonetization of £500 and ¥ 1000 notes. In place of it, new notes of 7 500 and Z 2000 were issued. For essential goods like petrol, medicine shops, hospitals were given allowed tose the old notes for a limited period of time. After sometime notes of 200 was issued. He(5) Effects of Demonetization y ofa In place of old notes of omy of any country. f 1, Effect on economy : It will have good effects on Tewill check anti-social activities like £500 and® 1000 new noes of€ 200, €500 and ® 2000 were issue *| black marketing, terrorism and hoarding. mer goods will be reduced. Use of 2, Effect on price: Due to deerease in demand the price level of comes ne are . ituation card peymentand cheque paymentinereses: Dn is, Do teashet 3. ffect on gross domestic products : Domestic desu may bealvetsel tel ea ime but at the i vals its demand increases so compensation Will ake P of : eonteey ae pane ‘come in the market the supply of fics nC ree fora Toy cilia Seber shia and hisproblem ofshrtage of money supply isremoved. cton demand : Fora short period of time demand is also affected because of shortage of money }j supply. ee esrsney nscitsranine fixed capital, 01d, silver Inxury goods, cars, tc. decreases. But gradually this position improves. ive cere {has decided to climinate the Tosa 1000 on tuesday after 12 0" clocks at night, e During demon- tization there is increase in such type of § activities and so such situations become strong. © During demon- ‘tization the liquidity of banks becomes strong becanse people deposit their savings in the bank. Banks can give more loan to people. Pea. ioe Barre pete tre will be increase in G. D. P. by 1t0 ‘economy’ 12% of G.D.P.isincirculation whil 3 to.4%, Ducto this step cashless system will be encouraged. lc in other countiies itis only. 7. Increase in cash with the banks: Duin elo demonetizas q ; willbe abe to provide loan easily to needed person ne ; 8. Decreasein price of gold : Due todemoneti . and of gold. inetization price of gold "ils reinced bens fn dans SBregs sof the nation : Due todemonetization th ‘more money 50 cash wil be used for productive purposes, 7) Disadvantages of Demonetization In India stil many people are away fromthe use of, how can you expect cashless payment, here “TPS ProBres in the naion Banks el pe ‘mobile phones andntemet connections. In auch aon disadvantages 1, Misuse of debit and credit card 2. How demonetization willbe plied on money collected fr fanily welfare 3. People give mutual loan among themselves for marriage, illness etc, There: them. In such position demonetization will nt be applied. 4. Misuse of PAN card, A.T. M.. Sometimes money from the A.M. is withdiawn by unfair means and duplicate cards, Here also demonetization is not applicable. 5. Government above cannot check the problems of black and hoarding money and comuption only by demonetization, Decentralization alone cannotsolve the problems of black money and corruption. Along with it, many steps will have to be is nowritten agroementamong taken (o improve economy of the country For it, some strong steps will have to be taken which will have Jong term goodeffects. Demonetization in any country has only ad- vantages for a longer period of time, it does not have any negative effect on country and italso gives economic concentration of the country. Oral Questions ] Q.1. What do you mean by demonetization ? Q.2. When demonetization took place in India ? Q.3:1n 1916 when and for which notes demonetization took place ? Q. 4. Write the causes of demonetization, Q.5. Write any two advantages of demonetization, Q.6, Write any two defects of demonetization Te DE UE He Te UE TE De Te Tie Me He He A Ne ee DE Te ee He Ee HE AH AE Economics ; Class XI ay oh BE He Fe ee 5stic market and alow ‘price in the foreign Meaning of Dum Dacian ating ofa pros atigh pee er market, we ‘shall explain the determination under dumping. Definition of Dumping so ben te sersossprofucon inthe martes Bere, lowrate, P| falling below the minimum level, the product is sold in the foreign }) Causes of Dumping f° Forthe welfare of people sometimes such stepin taken so that extra product ‘| (4) Aims of Dumping ] ‘The aims ormain objectives of dumping areas follows: 1.To find aplace in the foreign market. 2.Tosell surplus commodity. 3. Expansion of industry. 4. New trade relations. @ Price Determination Under Dumping Price and output under dumping will be determined by the equality of the total marginal revenue and the marginal cost curve of producing the commodity. This explains price ,] outputdetermination under dumping. 2] __lndegivenigue an assumption taken tte twomais thatis domestic market and foreign market faced by an organization. ‘| AR(H)andMR(H)is the marginal and average revenue curve of domestic 2%) smarket and AR/MR(F) is the marginal and average curve of foreign %) market. As domestic market is protected so it is shown by the stoping %| curve ARCA and MR(H) whereas in foreign market the organization %| face pecfoct competition. The forcign market demand curve faced by the ‘monopolists shown by the horizontal line AR/MR(F). MR(F) curve of f} foreign market attains equilibrium at E> (MC curve) of marginal revenue | curve which results in N,E, value of products in foreign market. In domestic market, the equilibrium isatained at point E(MRH = MC) results in NP value of the products which is higher than the forei goes down. To check the price from itis called Dumping, isremoved fromthe markt,‘domestic industries ofthe countries which import 4 ‘dumping measures are taken only when itis harmsUl forthe import counties. Q.1. Whatdo you mean by dumping ? Q.2.Givecefinition of dumping. Q.3.Givetwo aims of dumping, Q.4. What are the causes of dumping ? Q.5.Under dumping how foreign goods and domestic goods are sold ? Project No.3 inER Monoroty Marker (@) Meaning and definition of Monopoly. (2) Characteristics of Monopoly. (3) Causes of rise of Monopoly. @) Fomms of Monopoly. (5) Control of Monopolist: On price or supply. (©) Methods of price determination in monopoly. (1) When does a monopoly gets only normal profit? (8) Isthere loss in short period in monopoly situation ? (9)Ismmonopoly price always higher than competitive price ? See : Monopoly. Baral reer a whichis isa single seller of a single commodity. Inthis way he can control the supply of the goods and also can fix the price according to his own wish. He | is person who has the power to contol the pice. _ J. Robinson : “Monopoly is just opposite situation of perfect competition”. QP: eg eta r le (2) Chara a ristics (Q) One producer or seller Q)Profitmotive. ) Price control. ) Absence of competition. (5) More number of buyers. | (3) Causes of Rise of Monopoly ‘The following are the causes of rise of Monopoly : se Tradéstatus or business status : + Any producer gains business starus the others dis it Lone atisat ial: salrequired for any product is centralized at one ff fF 2 Centralizationofraw material: When aw matcher rae ene i ly situation fon: i 1 ion then in such case monopo! 3, Legal protection : Any particular product gets legal protec ; " which gives rise to cof capital and due to it many firms do ‘monopolistic situation. Some industries are such which requires high amount. nottake part in production, Thus for such products monopoly situation arises. , ‘6. Cut-throw competition : To save from cut throw competition many firms with the intention of controlling price meet together and forms organizations. It gives rise to monopoly. @ Forms of Monopo! _ - 0 ‘When an individual has full control on price and supply of commodity [+ then itis called private monopoly. For examplein copyright the writers have full monopoly. On the other hand on | some commodities the government has control over the supply and price. Its main aim is to do the welfare of the |. society. For example Post Office, Railway, Telephone, Telecommunication. E perfect monopoly : Perfect monopoly is that monopoly in which there is nofearofentry |. oftnew firms, it means there is absence of competition. Ontthe other hand imperfect monopoly is that monopoly where there is always fear of entry of many firms and fear of control of government. i i In general monopoly all buyers have to pay the same price for the goods. In analytical monopoly various prices are taken from various buyers. (S) Control of Monopolist : 0: y ‘Monopolist fixes his price policy himself. In monopoly market following things are of special importance : (2) Objectives of monopolist : Like other producer amonopolistis alsoa producer. So, he aims to obtain |: ‘maximim profit at minimum cost. In other words his aim is o get maximum profit. Buthe gets two kinds of Profit. : 1. Normal profit: This profitis obtained by everyone who enters in business. Without normal profit production cannotbe begun, 2. Super profit: Monopolist also gets an extra profit becausche istheonly 4e| Sellerin the market. He has no other competitors in the market. So, heis ina 2 y _g¢|_ Position to change higher prices ofthe products. In this way monopoly profitincludes normal profit and extra profit, b) Control on one either supply or price : Monopalist can control supply control demand, If +e determines price on the basis of \d.costof production then he will have toaccept the price | ywill the | Fav ETRE o ‘Methods sof Price Determination in Monopoly # In monopoly price is determined by two methods : (a) Equilibrium analysis method. Fe es lhe clk vinous Marea andmargialrvense il intersecteach other. "Abnormal prolit [fin shortperiod, the demand of product is more than its productive capacity then monopolist wll determine more price and can ear addtional and shnorral profit diagram ‘E’ pointis that where mar- * | ginal revenue and marginal cost is equal to each other (MR = MC). ~| Sopoint E’ is monopoly equilibrium point. Thus, @ cuantty ofredction This method was given by Mariel Coe i eer lecas otinntonordly determines his price MC AC (Average Cast) and that point where profits maximum. Monopolist always do not eam abnormal profit. In somesitu- ation he eams only normal profit. Jtcan be explained like this If in short period the demand of products equal to produc- tion capacity then price will be determined equal to the cost and he wil eam only normal prof Tndiagram £ Peed cine ‘Thus, 0Q = Quantity of production OQRM =Price. {8)Is there loss in Short Period in Monopoly Situation ? ese on deo fe etie ie ie ee te Me te We Het ay profitable for monopolist. Here atON [f Marina inreasing returns nie tenincrensein pce willbe profitif he sells OM product then profit will be atnatlive at Ba ecotcnelanety od If the demand is elastic then by rise of price the How high price wll be depend on elasticity of demand ? SE nile aoeete $] demand willbe decreased. At this situation by reducing price sell wil bemore and! demandis inelastic then by increasing price more profit can be earned. Monopolistsaloosinhs nea and soho he fl control oversupply. He resto carn more and ere roi ‘Sohisprice is higher than competitively price. Thus monopolist cams abnormal profit (10) Conclusion ; oe Only one selleris there in Monopoly so the producer has full control over production and supply. He cides the price according this profit. How much to produce and what price should be kept will be decided by [ producer only. The seller tries to sell his products at high rate to earn more and more profit. Sohes called as “the king without crown”. Oral Questions Q.1. What do you mean by monopoly ? Q.2. Give definition of monopoly. Q.3. Write any two causes of rise of monopoly. Q.4.Ismonopolistking without crown ? .5. Waite the types of monopoly. Progect No. 4 Centra. Bank AND 11s FUNCTIONS Outline of Project (1) Meaning of Central Bank Q)Definition of Central Bank (3) Aims of establishment of Central/Resetve Bank (4) Prescat position of Central Bank (5)Functions/Prohibited functions of Reserve Bank of India (©) Credit control by Reserve Bank (7) Achievement of Indian Reserve Bank (8)Failure of Indian Reserve Bank (9) Relation between Indian Reserve Bank and State Bank ‘Central banks that bank which controls credit, currency and banking, Sf ae Systems of the country. Central bank of any country is the highest financial institution of that. : é| tis different from the other ordinary banks. Central bank has the right to print the no | have. Itis the bank of government. Itis also called the banker's bank. All other banks are the other banks which are under it : [Resecve Bank of India was enublished ax Cantal Bank of Ina 1935, On 8th December 1933 Reserve bank of India was keptin Vidhan Sabha which was passed in 1933, (n 1st Ap 1935 Reserve Beaks Siri Fonsioning ws Ceatral bans @ ‘Tobring stability in nite eke and face value of € : Without Reserve Bank stability between |, these two valuesis not possible. (i Toarrange public loans is the main aim of reserve. (iil) To cordinates money and credit. (iv) Development of banking system. (¥) To organise moncy market. (vi) To relate with foreign countries monetary policies. p Inthe beginning Reserve Bank was the bank of private shareholders. Its capital was 5 crore, in 1 Jan. 1949, Government of India did the Nationalisation of Reserve Bank. Atpresent apart from capital of ena! of @ 150crore. - General management and direction is done by 20 members direction committee. Init ‘one govemnor, four deputy governor, one government officer appointed finance ministry and 10 directors Which arenominatedby local representation. Office - Office of Indian Reserve Bankis situated in Murnbai. But for proper functioning of it offices are openedin New Deli eae Kanpurete. Foto departs fResene Bank of India (@ Depa ency ; Issue of Indian currency is done by this department by the | Reserve Bank of India, This fete distributes notes to government treasury. nj ment ; The main function of this department is to work at the pj x recommendation of rural banking Research committee. (iii) Agricultural credit department ; For the development of agriculture Reserve Bank forms the licies related to agriculture. __(ty) Industrial finance department : ‘This department was established in 1957. Its main aim is 2 ia di jartment + Fiesta ay eee o vec Vexions opera control artment 3 pg meet 1729, Focsiie{i) Supervision department :eupervisesallthe commer PAN nts are stablished 5.New departments of Reserve Bank : On 1* January, 195! (2) Information and technology of Reserve Bank. They are : (1) Human Resource development department, department. Functions/Prohibited Functions of Reserve Bank of India ees é © ee een tions of Reserve See caarte Bank of ndiais dividedinto? par'st ‘A) Functions retated to Central Bank : dack orev nit Itworksas an agent forthe government, Reserve Bank of India acts as banker, | ‘agentand advisor tothe central and state government. It manages public debt, make all payments and receives all therevenues and manages foreign exchange of government. 2.B ote-Issue : The central bank has the sole monopoly toissue currency notes. Currency notes and coins issued by the central bank are the legal tender money. Legal tender money is one which every individual is bound to accept by law in exchange for goods and services and in the discharge of debts. In India, one rupee notes and coins are issued by the government and all other notes are issued by the Reserve Bank of India. . Control on Fe Reserve Bank does purchase and sell of foreign currency to maintain stability of exchange of Rupees. 4, Banker's Bank : It works and assists other banks. It works the same work for other bank as the ‘commercial banks work for public, 5.Cr u Reserve Bank of India works as credit control. (RB controls andregulate volume of credit and currency in India, @)Itcontrols the credit inflationary impactof the ever-increasing development financing in five year plans. 3) Itcontrols credit by increasing and decreasing bank rates, (4) Change in cash reserves. (5) Selective credit control. (©Bill market plans. (7) Moral pressure. @) Fu 5 lop Following are the functions related to development of Reserve Bank of India : LStability ; The main aim of monetary policy is to have control on price level. It follows credit contro policies strictly, 2. Encouragement to| ig {acility : Reserve Bank provides all essential facilities to other banks for their encouragement. 3. Encouragement to small scale industries : Commercial banks provide loan to industrial banks. For AY this Reserve Bank pives guarante, Reserve Banlchas also established small scale industrial development bank. *| 4. Agricultural eredit : For agricultural credit, Reserve Bank has.ie BE Be BE BE SE FE SE FE IE Be BE TE He TE Ee te ie ie ee te ie Ae te De Hs te He He eet ee Se Se Se ee trial eredit: Reserve Benchas taken abig step of development of industies, era has made effort to make available long term industrial credit. Forit Industrial finmee ecg nt rE BAak | corporation, Industrial credit and exchange board etc. ae getting full support from Reserve Bank of finance (C) Banking related funetions ; Following are the banking related functi ae ) ions of Reserve 1. To deposit : Valuable things and securities ofthe goverment Reserve Bankof India, 2, To get € on deposit : Reserve Bank keep deposit of other government, semi- ‘government but at this deposit Reserve Bank does not give interest. 3 ee To take lon s Reserve Bank can ake oan from any schedule bank or central banks of ther nation for ‘onemonth only. i 4. Togive Bank of india; i wan : Reserve Bank can give loan to central and state government for 90 days. Italso gives | advance loan. At the demand of state government banks, it gives loan for the period of 90 days. These loans are. | ‘given at the mortgage of silver, gold, bills of government banks. 5, Sell and Purchase of gold : Reserve Bank can buy and sell golden coins. Prohibited Functions of Reserve Bank of India : Following are the prohit (@) Reserve Bank cannot give interest on deposit. (G)Reserve Bank cannot give loan on mortgage. (Gi Itcannot take any bill and cannot make payment of it Gv) Itcannot take partin trade, commerce and industry. (9) Reserve Bank cannot buy any shares of any company. (© Credit Control by Reserve Bank ‘The meaning of credit control means to control the policies of credit on the basis of which credit is given to ‘other banks. It uses the following methods: 1. Open market operations : Open market operations refer to the sale and purchase of securities in the ‘open market by the central bank. By selling the securities like NSE) the central bank withdraws cash balances from within the economy. By buying the securities tie central bank contributes to cash balances in the economy. Thus supply of cash increases. 2, Bank rate : The bankcrateis the minimum rate at which the Central Bank of a country (as alender) is prepared to give credit to commercial bank. The increase in bankrate increases the rate of interest and credit, becomes dear. 3, Cash Reserve Ratio (C. R. R.) : Itrefers to the minimum percentage of a bank's total deposits required to be kept with the Central Bank of a certain percentage of their deposits in the form of cash reserves as amatterlaw. 4, Statutory Liquidity Ratio (S.L. R.) :Every bank is required to maintain a fixed percentage of its assets in the form of cash or other liquid assets called S.L. R. Reserve Bank gives credit to only those banks ‘whose liquidity ratio is 46%. 5.Sclective credit control : According to Reserve Bank has authority to regulate direction of credit. Itis called selective credit. x 6. Moral Suasion ; Sometimes, the Central Bank makes the member banks agree through persuasion or ‘Pressure to follow its directives with a view to controlling the flow of credit. The central Bank hasits control allthe Commercial Banks, a We he ee “ee “ee oe Be He He ‘Economics : Class XIt Paige ‘gad:Achievernent of the Reserve Bank of India Following are the achievement of Reserve Bank of India: | 1. Agricultural credit : Reserve Bank has established a separate department for agricultural finance, in | 4 1963, Rural Agricultural Finance Corporation was established which provides mediumand long.term loan for gricultural purpose. In 1982NNABARD was established. 2-In theform of government bank :[tworks as bankers bank of Central government, State government ‘banks since its establishment. It works in public debt, banking development, exchange control, etc. S-Asadvisor The Centra Bankalso ats a the financial advisorto the government. It gives advice othe [i government on all financial and economic matters such as deficit financing, devaluation of currency, trade policy, [3 forcign exchange policy, etc. ability in Banking revion : To maintain stability many weak banks were merged in other banks from the financial point of view. + Reserve Bank has provided assistance to many industries for their progress. &-Sonetary policy : Inthe economic progress of the country Monetary policy of the Reserve Bank of India has become successful. c ” + By Actof 1949 Reserve Bank has becn successfil in contolling and regulating 8 As the custodian of the cash reserve of the commercial bank, the central bank ‘acts as the clearing house for these banks. lit 2 + Reserve Bank has done the work of movability in saving and investmeat through monetary and credit policy. 1 + The most important work of Reserve Bank is to issue the currency notes in the country. Indian Reserve Bankis successful in controlling the currency, 1 Reserve Bank of India regularly does the work of publication of report in which industry, banking and researches are published. (8) Failure of Indian Reserve B: Reserve Bank has been failured in the following field : (1) To bring stability in price level. (2)In organizing moncy market in an organised form. 3) In controlling all other banks in an effective way. @)Incontrolling expansion of money in an effective way. ()Incontrolling and co-ordinating all other small and co-operative banks. (9) Relation between Indian Reserve Banks and State Banks ‘On July, 1955 State Bank was established as a nationalized Imperial bank, State Bank of India works as an agent in those areas there is not any branch of Reserve Bank. Thus both these banks have relation of agents, Indian Reserve pays some commission to State Bank of it for these work. Banks the highest. Apex Bank any cout esis ther banks and consol caeny ofthe bas monopoly to print the notes. Soeconomy ofthe nationdependsonit, siti ee on~ | QW is the head office of the Central Bank situated _ Q-2. When did Central Bank star its functioning ? Q.3.Give definition of Central Bank of India, Q. 4. Write the objectives of the Central Bank of India, Q.5. Write the prohibited functions of Reserve Bank, (Q.6. Whatis the relation between the State Bank and Reserve Bank of India? Goobs AND Srrvick Tax (G.S.T.) (1) Technical vocabulary @) Introduction (3) Types of G. S.T. (4)G.S.T. on supply (5) Class of G. $.T. (©)G.S.T. imposed on supply is considered as cost @Retum of G. S.T. (nputG. 8.7.) © Tax free from G.$.T. © Conctusion, (@ Technical Vocabulary 1.G. S.T.= Goods and Service tax. 2.C.G.S.T. =Central Goods and Service tax 2)Introduction In India, G. S.T. was passed in 2017. Its advantages will be to general person, company and traders will eer tave 0 pay the same tax for purchasing any goods inall over the country, @) Types of G.S. T. LCG.S.T.: This {pe of taxis imposed on services and goods provided inthe country. FG. T rate is 18% then rate of. G. S, Twill be 9%, 25-G.S.T : Thisis imposed on Goods and services with in the state. IG. S. T. rate is 18% then state(5) Class of G. §.T. Pee acne ROR 1. Output C. G, S.'T.: This taxis imposed on supply of goods and services in the st GS.T. 2, Output S. G. S.T.: On supply of interstate goods and services this tax is imposed along with S. G. S. T. Incase ofinterstate supply only I. G..S. Tis imposed, 3. Output I. G.S. T. : This is imposed on goods and services on interstate level. 4. Input C. G.S.'T, :Itis imposed on supply of goods and services within the state. Tax payer can pay tax in government account also. Itis called as Input. G. S.T. 5. Input. S. G.S.'T. :Itis imposed on supply of goods and services within the state. 6. Input I. G. S. T. : Itis imposed on supply of ‘goods and services of interstate level. T. Imposed on Supply is Considered as Cost 1. Giftto employee. 2. Payment of health insurance to payer. 3. Membership amount on club, health, fitness, ete, 4. Goods for personal consumption, 5. Bill of hotel for food. (7) Return of G. S. T. (Input G.S. T.) 1. Free sample goods. 2 Donation ofreligious purposes. 3. Goods of theft. 4, Destroyed goods. (8) Tax Free from G. S.T. 1 Health services. 2. Water and electric services. 3, Educational services, 4. Services to the government. 5. Supply of other countries ambassador. (9) Conelusion IEG, Sis implemented public and companies al wll be benefitted. There will be“onenation and one tax”, Oral Questions Q-1. Write full form of G. $.T, — Q.2. Write full form of C, G. 8. T. Q.3. Write full form of S.G. S, T.