IBPS - BANKING/INSURANCE EXAMINATIONS – RAPID READING EXERCISE BULLET POINTS - PART: 001

IBPS - BANKING/INSURANCE  EXAMINATIONS – RAPID READING EXERCISE

BULLET POINTS - PART: 001

INDIAN ECONOMY

01. Indian economy is world’s 9^th largest economy on exchange rate basis and 4^th largest economy on PPP basis in 2010

02. PPP is called as the purchasing power party

03. Purchasing power party is a theory and according to the theory – the exchange rates between currencies are balanced when their purchasing power is the same in each of the two countries

04. The main characteristics of Indian economy are – agrarian economy, mixed economy and developing economy

05. Agrarian economy – it is also called as primary economy. Agriculture dominance prevails in both the gross national product and employment and more than half of India’s working population is engaged in agriculture

06. Mixed economy – It is an economy where both public and private sector coexist. The nature of Indian economy is a mixed economy coined by J M Keynes

07. Developing economy – the following are the features of developing economy

·         Low per capita income

·         Occupational pattern is primary producing

·         Heavy population pressure

·         Prevalence of chronic unemployment and under employment

·         Steadily improving rate of capital formation

·         Low capital per head

·         Maldistribution of wealth/assets

·         Low level of living of the average Indian

·         Low human development indicators

08. The broad sectors of Indian economy are:

·         Primary sector

·         Secondary sector

·         Tertiary sector

09. Primary sector consists of agriculture, forestry and fishing

10. Secondary sector consists of mining, manufacturing, electricity, gas and water supply and construction

11. The tertiary sector consists of – business, transport, telecommunication, banking, insurance, real estate, community and personnel services

GNP – GDP - NNP

12. National income –

·         It is the net value of all the final goods and services produced in a country

·         During a financial year

·         It is a flow concept

·         In India, the financial year is from April 1^st to March 31^st

·         The national income is calculated annually

13. According to National Income committee 1949 – national income estimate measures the volume of commodities and services turned out during a given period counted without duplication

14. National income – is the measurement of the production power of an economic system during a given time period

15. National wealth is the measurement of the present assets available at a given time and it is a stock concept

16. Gross National Product – it refers to the money value of total output of production of final goods and services produced by the nationals of a country during a given period of time, generally a year

17. Gross national product = C+G+I+(X-M)+(R-P) where, C = consumption expenditure; G = government expenditure; I = Investment expenditure; X-M = net exports and R-P = net factor income from abroad

18. Gross domestic product – It is the total money value of all final goods and services produced within the geographical boundaries of the country during a given period of time

19. Gross domestic product = GNP – (R-P) and when R-P is equal to 0, then GDP = GNP

20. Net national product is obtained by subtracting depreciation value – ie. The capital stock consumption from gross national product

21. NNP = gross national product – depreciation

22. Personal Income  - It is that income which is actually obtained by the individual or nationals

23. Personal Income = National Income – undistributed profits of corporations – payment for social security provisions – corporate taxes + transfer payments + net interest paid by the government

24. Personal disposable income – PDI

25. Personal disposable income – when personal direct taxes are subtracted from personal income, the obtained value is called as personal disposable income

26. Personal disposable income = PI – direct taxes

27. Personal disposable income = consumption + saving

NATIONAL INCOME

28. When the national income is measured at the base year price, it is called as national income at constant prices

29. When the national income is measured at the current year price, it is called as national income at current prices

30. In 1968, the first attempt was made by Dadabhai Naoroji in arriving at national income through his book – Poverty and Un British rule in India

31. The first scientific attempt to measure national income was made by Prof VKRV Rao during 1931-1932

32. In 1949, National Income Committee under the chairmanship of Prof PC Mahalanobis was constituted

33. National Statistical Commission – NSO was set up on June 1,2005 for promoting statistical network in the country and it was headed by SD Tendulkar

34. In 1949, Central Statistical Organisation was constituted to public national income data

35. NSSO – National sample survey organization

36. NSSO was set up in 1950 for conducting large scale sample survey to meet the data needs of the country for the estimation of national income and other aggregates

PLANNING

37. Planning is a continuous attempt on the part of policy makers to achieve multiple and predetermined objectives of development within a specific period of time in a planned way

38. The first attempt was made by Sir M. Visvesvarayya through his bookd – Planned economy for India in 1934

39. National Planning Commission was set up under the chairmanship of J L Nehru in 1938

HISTORY OF PLANNING

40. 1944 – Bombay Plan ( a plan of economic development) by eight industrialists

41. 1944 – Gandhian plan by S N Agarwal

42. 1945 – People’s plan by M N Roy

43. 1950 – Sarvodaya plan by Jai Prakash Narayan

44. Planning commission was set up by Government of India on 15.3.1950

45. The present composition of Planning commission is as detailed below:

·         Dr. Manmohan sing – chairman

·         Shri Montek Singh Ahuwalia – deputy chairman

·         Shri Soumitra Choudhary – member

·         Shri Mihir Shah – member

·         Shri K. Kasturi Rengan – member

·         Shri Aman Maira – member

·         Shri Abhijit Sen – Member

·         Shri Syeda Hameed – member

·         Shri Narendra Jadhav – member

·         Shri B K Chaturvedi – member

NATIONAL DEVELOPMENT COUNCIL

46. National Development Council was constituted on 6.8.1952

47. The prime minister is the ex officio chairman

48. The secretary of the Planning Commission is the ex-officio secretary of the national development council

49. Chief Ministers of all states and the members of the Planning Commission are the members of the national development council

50. The following are the functions:

·         Aims to make cooperative environment for economic planning between the states and the planning commission

·         It evaluates the management of plans from time to time

·         It analyses the policies affecting the development

·         It gives suggestions to achieve fixed aim in the plans

·         It gives final approval to the five year plans

51. The strategies of planning in the country are:

·         Harrod Domar planning

·         Nehru Mahalanobis strategy

·         Gandhian strategy

·         LPG strategy

·         Pura strategy

52. The following are the types of planning:

·         Planning by direction

·         Planning by inducement

·         Financial planning

·         Physical planning

·         Perspective planning

·         Indicative planning

·         Imperative planning

·         Rolling plan

·         Core plan

53. The following are the details of various five year plans in the country:

·         First plan – 1951 – 1956

·         Second plan – 1956 – 1961

·         Third plan – 1961-1966 (Gadgil yojana)

·         Fourth plan – 1969 – 1974

·         Fifth plan – 1974 – 1979

·         Sixth plan – 1980-1985

·         Seventh plan – 1985 – 1990

·         Eighth plan – 1992 – 1997

·         Ninth plan – 1997 – 2002

·         Tenth plan – 2002 – 2007

54. The eleventh plan document was titled as – TOWARDS FASTER AND MORE INCLUSIVE GROWTH

55. The monitorable targets for eleventh five year plan were:

·         Income and poverty

·         Education

·         Health

·         Women and children

·         Infrastructure

·         Environment

56. The twelfth plan period is 2012 – 2017

57. The twelfth plan document was titled as – FASTER, SUSTAINABLE AND MORE INCLUSIVE GROWTH

58. Inclusive development means – development which is participative and empowers every individual especially the poor and excluded

59. The essential elements of inclusive development are:

·         Poverty reduction and increase in quantity and quality of employment

·         Agricultural development

·         Reduction in regional disparities

·         Social sector development

·         Protecting the environment

60. The various indexes of human development are:

·         Human development index – HDI

·         Inequality adjusted HDI – IHDI

·         Gender inequality indeed – GII

·         Multidimensional poverty index – MPI

61. Causes of rural poverty are:

·         Rapid population growth

·         Lack of capital

·         Lack of alternate employment opportunities other than agriculture

·         Excessive population –pressure on agriculture

·         Illiteracy

·         Regional disparities

·         Joint family system

·         Child marriage

·         Lack of proper implementation of PDS

62. The different types of unemployment are:

·         Structural unemployment

·         Under employment

·         Open unemployment

·         Disguised unemployment

·         Frictional unemployment

·         Seasonal unemployment

·         Classical unemployment

·         Cyclical unemployment

63. The flagship programme of Government of India are:

·         Sarva Shiksha Abhiyan - 2001

·         National Rural Health Mission- 2005

·         Integrated child development scheme - 1975

·         Midday meal – 1995

·         National rural drinking water programme – 2009

·         Total sanitation programme – TSP - 2000

·         National social assistance programme – NSAP

·         Mahatma Gandhi Rural Employment Guarantee act – 2.2.2006

·         Indira Awas Yojana – 1999

·         Rajiv Gandhi Gramin Vidyuthikaran Yojana - 2005

·         JLN National Urban Renewal Mission – 3.12.2005

·         Bharat Nirman Yojana- 16.12.2005