Doubt Clearance Thread: UPSC 2021
"When in doubt, observe and ask questions. When certain, observe at length and ask many more questions."
Created this thread as a one stop solution for all members so that all the doubts wherein any conceptual clarification is required can be solved here.
Archand,@ArchandI don't know what to make of it, the programme did talk about non payment of taxes but the second phase could never begin due to chauri chaura. Still I'd go with d
Yes, that makes sense. Thanks!
Does SLR affect the money multiplier?Higher slr will decrease the m.m. as less money will be available to offer as credit
But when banks buy SLR, banks give money to the govt , if govt spends money, there would be increase in money supply.
I am not sure how will that work because these both are opposing actions and there are chances that this might lead to increase in Money supply.
Yes, but we should not mix m.m. and money supply in here. Money supply could increase in form of m0 to m4 which have diff relations with m.m.
On the other hand, when banks can't lend a part of their deposits, they are able to create less credit(that's the whole point of having reserve ratios in first place!). And yes, when govt spends money that might just be an increase in currency circulation or investment which would not have impact on loans created by banks or the m.m.
Archand,
@Archand There is a difference between civil disobedience movement and non-cooperation movement.
Civil disobedience movement means breaking the laws which entails non paymnet of taxes, not following directions by british govt etc.
Non-cooperation does not entail breaking laws, it to stop cooperating , to stop cooperation which would have rendered an impact over their functioning. That's why 1920 movement is called non-cooperation and not civil disobiedience. So taxes doesn't come into picture.
Archand,Does SLR affect the money multiplier?Higher slr will decrease the m.m. as less money will be available to offer as credit
But when banks buy SLR, banks give money to the govt , if govt spends money, there would be increase in money supply.
I am not sure how will that work because these both are opposing actions and there are chances that this might lead to increase in Money supply.
Yes, but we should not mix m.m. and money supply in here. Money supply could increase in form of m0 to m4 which have diff relations with m.m.
On the other hand, when banks can't lend a part of their deposits, they are able to create less credit(that's the whole point of having reserve ratios in first place!). And yes, when govt spends money that might just be an increase in currency circulation or investment which would not have impact on loans created by banks or the m.m.
I agree and I don't say that SLR is not going to impact money multiplier , it is going to impact for sure. But there is a reason why testbook often mention only CRR and not SLR. I think this might be one of the reason.
When the govt spends, money in the hands of people increase, they might deposit the money with the banks as well which in turn would lead to increase in loans given, increasing money multiplier.
which of the following about ryotwari areas is correct?
a. large amount of land passed into hands of moneylenders, rich peasants , who utilised the service of tenants
b. landless laborers became land owners
c. it ended the practice of lasing out land to tenants at high orices
d. landlordism was totally destroyed
for this qsn every coaching has given b as answer but this is what i found. I marked (a) as i remembered vaguely that during deccan riots one of the grievance was debt bondage to moneylenders
which of the following about ryotwari areas is correct?
a. large amount of land passed into hands of moneylenders, rich peasants , who utilised the service of tenants
b. landless laborers became land owners
c. it ended the practice of lasing out land to tenants at high orices
d. landlordism was totally destroyed
for this qsn every coaching has given b as answer but this is what i found. I marked (a) as i remembered vaguely that during deccan riots one of the grievance was debt bondage to moneylenders
A is certainly correct.
Dionysus,which of the following about ryotwari areas is correct?
a. large amount of land passed into hands of moneylenders, rich peasants , who utilised the service of tenants
b. landless laborers became land owners
c. it ended the practice of lasing out land to tenants at high orices
d. landlordism was totally destroyed
for this qsn every coaching has given b as answer but this is what i found. I marked (a) as i remembered vaguely that during deccan riots one of the grievance was debt bondage to moneylenders
Source of this? I too went with (a) thinking that the Britishers could not be so good to provide land to landless labourers(doing what even our own govts could not). Besides, is not Ryotwari just a direct settlement with farmers? The farmers given patta could already be landowning? Coachings are doing customary google search and posting whatever they find first. But I am still not sure of the answer.
Dionysus,
Caesar,
Please explain..
D?
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