In the SFG schedule of economics, chapter 1-22 are mentioned from which book? I am unable to understand it.
@Impavid_Girl I have prepared from Mrunal Sir's notes and NCERT. Is that enough?
Hi,
Next week begins with economy tests. I have never read Ramesh Singh and don't intend to read it now, will stick to my sources.
Would it be possible for someone with the Ramesh Singh book to share snapshot of Micro Index i.e subtopics within each chapter given in the book. Mostly Index of books contain sub topics.
This will help in alignment and bridge gap if any. Will be really grateful.
Can someone please elaborate the conflict between the two functions of RBI below?
At present, the RBI manages the government debt, including market borrowing. There is a case of clear conflict of interest in this arrangement at one hand RBI decides the key interest rates (i.e., policy rates under monetary policy mechanism) on the other hand it trades in the government bonds (treasury bills, cash management bill and G-Secs) also.
Can someone please elaborate the conflict between the two functions of RBI below?
At present, the RBI manages the government debt, including market borrowing. There is a case of clear conflict of interest in this arrangement at one hand RBI decides the key interest rates (i.e., policy rates under monetary policy mechanism) on the other hand it trades in the government bonds (treasury bills, cash management bill and G-Secs) also.
Reposting. Can anyone please explain this?
Can someone please elaborate the conflict between the two functions of RBI below?
At present, the RBI manages the government debt, including market borrowing. There is a case of clear conflict of interest in this arrangement at one hand RBI decides the key interest rates (i.e., policy rates under monetary policy mechanism) on the other hand it trades in the government bonds (treasury bills, cash management bill and G-Secs) also.
In short -
Actually as a debt manager of govt. RBI will try to borrow at the lowest possible rate in the market.& Being the monetary authority it can manipulate the valuation of securities (interest rate and bond value (yield) are inversely proportional)
Hence the conflict.
Thank you@Impavid_Girl and@walterwhit3 ... Doubt is clear
T-42, Q-33
In the question below,
Answer key says - 1 and 2
My doubt - shouldn't it be 1 only?Actual distribution is responsibility of state govt. through Fair price shops.
http://www.arthapedia.in/index.php?title=Fair_Price_Shop_(FPS)
Even the objectives of FCI mentioned in the explanation says so.
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Q33 Consider the following statements regarding Food Corporation of India (FCI):
1. It is a statutory body.
2. Food Corporation of India (FCI) distributes food grains to economically vulnerable sections through Public Distribution System.
3. It decides the Minimum Support Price at which it procures food grains from farmers.
Which of the statements given above is/are correct?
Explanation
Statement 2 is correct.
It has three basic objectives:
1) Provide effective price support to farmers by procuring the crop at Minimum Support Price (MSP) if they are not able to sell it in Agricultural Produce Marketing Committee (APMC) authorized mandis.
2)Procure & supply grains to Public Distribution System for distributing subsidized staples to economically vulnerable sections of society
3) Keep strategic reserve to stabilize markets for basic food grains.
