🎖Economy 🎖

Day 18 (52 days to prelims)

Expected time to complete: 2 hours

Topics to be covered:
🔘Inclusive Growth
🔘Banking

✅Source: Book by Ramesh Singh
✅Sleepy Students: You can cover the topics in our crash course: Lecture 7-11 of prelims economy crash course.
✅ You can practise these topics in our Parishram Test number: 2 of Economy

⭐️Bonus topic from our few minutes series:⭐️
https://youtu.be/zpsE7QBCIl8?si=1W52mS5_f4zGulYj

Q1. “Liquidity refers to the ease with which an asset or security can be bought or sold in the market”.

1. Ample liquidity implies a narrow bid- ask spread.
2. Low liquidity can lead to price volatility in the market.
3. Options and real estate are generally considered liquid assets.

Q2. Consider the following statements about State Bank of India (SBI):

1. It was formed through the nationalisation of the Imperial Bank of India.
2. The Government of India holds a minority stake in SBI.
3. Bhartiya Mahila Bank is currently the only associate bank of SBI.

Q3. The Reserve Bank of India (RBI) plays a pivotal role in the Indian economy. Consider the following statements in this context:

1. The RBI is a constitutional body established under the provisions of the Indian Constitution.
2. It was set up based on the recommendations of the Hilton Young Commission.
3. The RBI served as the central bank of Burma (present-day Myanmar) until 1947.

Day 19 (51 days to prelims)

Expected time: 3 hours

Topics to be covered:

🔘Public Finance
🔘External Sector

✅Source: Book by Ramesh Singh

✅Sleepy Students:
- You can cover the topics in our crash course: Lecture 12-17 of prelims economy crash course.
- You can practise these topics in our Parishram
Test number: 3 of Economy

⭐Bonus topic from our Youtube channel:

https://youtu.be/mKrn9RBmwFw?si=RxLHtVn8B8eN9C1S

Q1. How many among the following can be considered as objectives of fiscal policy in India ?

1. Encouraging the flow of spending in productive areas

2. Ensuring price stability

3. Raising the ratio of saving to income by controlling consumption

4. Raising the rate of investment

5. Reducing inequality

Q2. Based on the current Indian GST regime, how many of the following items attract a 0% GST rate?

1. Caffeinated beverages
2. Fresh meat
3. Natural honey
4. Pan Masala
5. Printed books
6. Sanitary napkins

Q3. With reference to the Tobin Tax, often mentioned in economic news, which of the following statements is correct ?

A. It is a tax on financial transactions aimed at curbing currency speculation and stabilising financial markets.

B. It is a tax levied on agricultural commodities introduced by the World Trade Organization (WTO) to regulate global food
prices.

C. It is a tax levied on luxury goods and services to redistribute wealth and promote social equity.

D. None of the above.

Day 20 (50 days to Prelims)

Expected time: 3 hours

Topics to be covered:
🔘 Markets
🔘 Economically Relevant International Institutions.

✅Source: Book by Ramesh Singh

✅Sleepy Students:
- You can cover the topics in our crash course:
Lecture 20-22 of prelims economy crash course.
- You can practise these topics in our Parishram
Test number: 4 of Economy

⭐Bonus topic from our Youtube channel:
https://youtu.be/H6Prj47-2qE?si=OpsCBh8XGLzs
lm1L

Q. 1. Considering the Call Money Market in India, which of the following statements are
incorrect ?

1. It is an overnight money market, where
borrowing and lending typically occur for one business day.

2. The interest rate, also known as the call money rate, is highly volatile and can change throughout the day.

Q.2. Considering the global economic landscape, which of the following statements is/are correct
regarding the World Economic Outlook (WEO)?

1. The report is published by the Organisation
for Economic Co-operation and Development (OECD).

2. The theme of the WEO report published in January 2024 was “Navigating Global Divergences”.