Transcript for:
Key Concepts in Economics Overview

So hello everyone and good morning everyone, I hope that my voice is coming properly and once you confirm it to everyone, today we are going to have one short lecture of economics and in this lecture we are going to do economics, is it okay? This is one short lecture of economics, so in this lecture we will do economics and let's start with economics, okay, economics is ready, everyone is ready with pen and paper, pen and copy, Sir, good morning to all, brother, there is a very good atmosphere here, just cloud. It has surrounded me from all sides but it is not raining. I don't know the day of the class. Well, there is a class every day but sometimes in the evening like it is raining, I don't get a chance to enjoy it. Look ahead, this is the voice. We have such a loud voice in the lecture, yes brother, good morning, good morning, good day, let's start with one short lecture of economics and first of all, the difference between micro and macro economics, what is the difference between micro economics and macro economics. Micro is called micro and macro is called macro. The difference is that in micro economics we deal at micro level i.e. small level. In macro we deal at big level like when we talk about national income. Let's talk about the income of a country. Understand it like this. When we talk about the income of a country, we are talking about macro concept. When we are talking about an individual person, we are talking about micro. Simple asks right. If father and mother are right then who is father? First of all, macro and micro are right. Father of Macro Economics and Micro Economics. Micro and macro are right. Like this, understand that there is a jungle, you are studying the jungle in macro and jungle. If you are studying a tree, Kind of Micro, then we call two people the father of Micro Economics. One is our Adam Smith. Tell me his book quickly. Those who have read it, those who have already read Economics, then me. I must have told you a book in which he and Alfred Marshall are okay. The PDF of the lecture of Part One of Alfred Marshall and Mac and Current Affairs is also almost ready. You will get it. Okay, after this lecture there is a huge demand from you people. It is only because of this that you are able to get it and if the rest of the people are making notes in Hindi then please friend, if not on the same number then I will give the number right now for the last video, so please make and send the notes in Hindi on that number. If someone was making it, then someone must have been making it, just like now, someone was making it about current affairs, but when I said, then people sent, okay, the book written by Adam Smith, that is Wealth of Nations, is okay, Wealth of Nations, which is This book has been written by Adam Smith and when we talk about macro, we talk about John Minard Keynes. John Minard is Keynes. He has written the book General Theory of General Theory of Employment. This book is by John Minard Keynes. Okay, he Had given another concept, we will read further about speculative demand, so this is what we will see further, rest John Maynard Keynes asks from which country, if from the country, then it is from England, okay, we belong to England, John Maynard Keynes, move ahead, different sectors. Of economy i.e. in economics, there are different types of sectors, primary, secondary and tertiary, primary, secondary and tertiary. We will not deal with quarto kunari, no question is asked. If we talk about primary, then which is directly from nature, now on what basis have we done this? Vision has been made on the basis of nature of work, what kind of work you are doing. If you are doing work directly related to nature, like in agriculture, you know that there is direct development from nature. If you are fishing, you are directly developing from nature. You are doing the work of milk and curd. Flora is the evolution directly from nature or forestry is the evolution directly from nature. Now we also know the secondary sector by the name of manufacturing sector, because whatever is there in it, we can produce things in it. We do manufacturing i.e. we do the work of making things, we do the work of making things, we make finished goods, the things we get from here are from the primary sector, i.e. the things of the primary sector act as a raw material for The secondary sector gets the raw materials processed and prepares them into finished goods. Take any industry. For example, wood is obtained from agriculture. Suppose wood is made from wood, paper is made from wood, furniture is made from wood. Whatever is made of furniture is a manufacturing industry. There will be a secondary sector but the fishing wood will be in the agriculture sector. Ok, it is fishing. Now fishing is where the fisherman is bringing the catch. We have a company like Licious. Well, yes, now there is a company like Licious. Look, there are two ways of fishing. Look, in fishing, it is like fishing, brother. The primary sector is, no doubt, the fish I have prepared is very good, it is edible by adding chillies and masalas. People who eat it should not eat food which is non-veg, but let's accept that many people eat it, they will not stop it if I say so, okay. Why did so many people say this and so many people went away saying that they have spent their entire life in this, so it will not happen because of my saying, but yes, even one or two people will not eat, so it will be resolved, so if it is about fishing. So now it is not that I have never eaten it. Okay, I also ate one a couple of times but now I have completely given it up. If we talk about fishing then it is fishing but you are adding chilli masala in it. It will come in the secondary sector. Now, you might have heard the name of a company like Licious. What does Licious do? They sell fish. Okay, if they do this and supply it to your house, then it will come in the tertiary sector. In dairy, you are making milk from the milk. We are manufacturing curd, we are making cheese, it will go into manufacturing, okay, it is being advertised, it is being promoted, then it will come into the service sector, so what comes in the service sector, it is called Tisharin Sector, services are provided here like Hospitality services are done, okay, hospitality is done, transportation is done, okay, what is the call center etc., what is the tertiary sector, like what is this, this is teaching, I am teaching you, that is, you will come in the services sector. He has become a doctor, all our doctors have become banking, okay, transport has become a hospital, that is, the one whom you cannot touch, that means these are of intangible nature, those which you cannot touch are of intangible nature, now here Another question arises and that is what is the contribution of which sector in our economy according to 2011 census. According to 2011 census, the primary sector is not the primary sector, most of the people are employed here, it is at 24.3. Secondary i.e. in the second sector and the rest, we will tell you how much will be in the tertiary sector. Do your math quickly and keep in mind that it has the least contribution in the GDP. It employs the most people in the GDP but has the least contribution. Tersh has the highest contribution. Okay, this is the highest contribution. We divided it based on the nature of work. Similarly, we can also take any other parameter and then again we can divide beyond that like for example we have sectors. It is also called organized and unorganized sector. Unorganized sector is the one which is registered under the government like mine. Suppose if there is a company then it has got it registered. For example, Parmar Academy. So what will happen is that it will be organized but those who are our street vendors, they set it up ready, okay tell me quickly which scheme is there for street vendors, which one is running only for street vendors, which is already running and is in recent past last year. In September, on his Buddhist Day, Modi ji had launched a scheme for our artisans. Let us tell you, this is mostly our unorganized sector and in India, let us assume that there are more than 90 unorganized sectors. Don't confuse parallel economy with this . Unauthorized economy has become a black economy in a way. For street vendors, our PM Swa Nidhi Scheme is by Mauha. Mauha means Institute of House and Urban Affairs. It is fine and for artisans, Vishwakarma Scheme is there. Which was launched, Vishwakarma, okay, we will do a separate lecture on the schemes that I have planned, then we will deal with all the things in it. Let us move ahead sir, now we will do the concept of national income, the most important concept. Now here we will discuss that in public. Sector, that is private sector and public economy, isn't it socialist capitalism, we will not deal with all of them right now, okay, the question does not come from him, Vishwakarma is right for everyone, now let's move ahead, okay, so the concept of national income, I hope, till now, no one will have any doubt about national income now. This is a very important concept, you should look at it with a lot of focus. Every concept in economics that I am going to teach here is important, although there is no such thing as this but national income, let me tell you that national income is the first and money is the last. Banking is National Income, Capital and Capital Account and Revenue Account, which you people have a lot of difficulty in understanding, that one will not be there now, these two concepts are so much loved, they are the m0 m1 m2 m3 from which most of the questions come. If there are chances, then you should pay attention to the concept. First of all, we will read the methods of calculating national income, then national income. First of all, tell us what national income will be, whether it will be a macro or micro economic concept, then how many methods are there. There are three methods. There are value added methods of calculating national income. Income method is called value added method. One income method means income method and the third one is our expenditure method i.e. age method. If this national income is ours then it will be a macro. Economic concept because here we are dealing at a big level, we are calculating the income of the nation, there are three ways of calculating the income of the nation, now we should know about them, what is it and how it is calculated, valued is value added. What we do in the method is that we add up how much value has been added to a product at each stage and it comes out that this much value has been added and this is the national income of the country. Let us assume that this is wheat. Okay, this is the wheat production from the agriculture primary sector. This is our farmer. Okay, farmer, I will make the drawing immediately. What did the farmer do? How much did he extract from here? Let's assume that he produced 00. Wheat, now they sent it to a factory, okay, this factory is a flour factory, that is, it makes flour, okay, so it is a flour factory, now what did they do with it, let's assume that the farmer brother they They did not take even a rupee's contribution in the form of fertilizer, just the entire fuel. They gave it directly, no fertilizer, no fertilizer, nothing. Directly, they gave ₹ 1 fine flour to the flour seller. They took wheat worth ₹ 00 from the flour seller. Now what did the flour seller do to it? He made it into whatever it is. He made it into flour. What else will he make of it? Okay, now he has made flour worth ₹ 1 out of it. Why is it okay because the biscuit seller who was sitting in front was saying ₹ 1 So he had to sell it for Rs. 50. Now when he got Rs. 50, he made biscuits with that flour. Is it ok? He made biscuits. Now this is the biscuit which he sold for Rs. 2000000. So now we are not crazy that we give Rs. 00 for Rs. 50 and Rs. 00. By adding it up, it starts saying that this much amount of rupees has been produced in this entire chain of Rs. 450, that is, if only this work is being done in the entire country, then it means that the GDP of the country has become 50. Why is this wrong because in this 50 This ₹ was also included, in its two 100, this 150 was also included, so that means we have committed the sin of double counting here. Double counting, as soon as it happens, will show error 404. If double counting is not to be done, then there is a way to avoid it. So let's see how much value has been added, like I told you, they have added ₹ 1, they have added ₹ 1, okay, now after this, how much value is added from here to here? Simple addition of 50 was done, how much did it cost from here to here, again of 50 it was 100, the farmer added 50, the flour seller added 50 and the biscuit seller added 50, so how much did it actually become, national income became 00, so this method became value addition. What is the income method? We calculate the income in the income method, like there is a biscuit factory and what will happen in this biscuit factory, our workers will be working, okay, our workers will be working, they will be working in some land. They might be working under someone, who is this their boss, whom we call an entrepreneur? Okay, he is an entrepreneur i.e. entrepreneur brother, what is he running, he is running a biscuit factory, now what is it that there are some factors in it. Production will work. Factors of production means what are the factors involved in making something, like firstly, land would be needed, apart from land, such a big factory had to be set up, that too for biscuits. Then it would have had to take some capital, it would have had to hire some workers, okay it would have had to hire some workers and it would have put its mind into it too, it is not everyone's business to take so much risk and do all the things to run a business. If he could then he would be an entrepreneur. Our brothers call them Factors of Production. Now these are Factors of Production. If we talk about the land and the land he has taken, then he will have to pay rent on it, whose land is the capital, whoever's capital he has taken, then he will have to pay interest on it. It is okay and the workers are our people. They have to pay him salary i.e. wages or call it salary, it is the same thing and he is an entrepreneur, so why is he doing all this to earn profit, to earn profit, then this rent, interest, wages, salary. Profit, we call these Factor of Payments Factor of Payments In this, if we remove the wages and remove whom, if you pay attention, if we remove the wages, what will happen if we remove who, this is called how many things are operating in surplus. Operating Surplus Now I am not going into depth about this but for now we will remember that when does Operating Surplus occur, when we remove salary from wages, this is the income method. Now I will tell you the third one, Expenditure, no one has any doubt. So ask in expenditure we see who is spending how much. If you calculate that This is the chain of national income. This is the consumption variable from C. This is how much the people of the consumption zone are consuming. From I is the investment expenditure. How much is being invested in the economy. From G is the government expenditure. How much is the government spending and x - m is written as n, this is written as n, which means net export, net exports means export minus import, it asks whether there is import in this formula, ask CGL 2022 in this formula, which one is the import in this formula. If the letter shows import, then many people will come running away. I will go and show the number A. Okay, so keep this thing in mind. So here you have understood this thing. How many methods are there? Now we will read what are aggregates? National. What are the multipliers of income to calculate national income? Aggregate means aggregate. Look, you must have read the concept, you must have heard about GDP, GNP, NDP, NNP, so the same is called aggregate, that is, different ways of representing national income. What did you read? There are three ways to calculate national income and we have eight ways to represent it. There are eight aggregates. Okay, first of all, our aggregate is G D and P. Gross Domestic Product. Gross Domestic Product. Okay, I am not writing the full form. You must be familiar with the basics of what GDP is, it is the value of goods and services produced within the territory in a financial year, how many goods and how many services are produced in a financial year, goods that can be touched, services that can be touched. You cannot touch it as I am teaching, but you can touch it on the laptop or mobile in which you are studying in the computer. If it is a good, it is a commodity, then how much value of goods and services were produced, add it up, that is GDP, but It is not so easy, when I write to you again, in this way, I write in this way, either leave it, I will not write now, okay, so here I am trying to tell you that please focus beyond this, with in the territory. It means that how much production is happening within the country of India, it is called GD, let me tell you, okay, now you will understand its value, GNP is Gross National Product, the same thing is the value of goods and services produced within the territory. Instead of 'with in the territory', 'by the nationals' will come. By the nationals means how much production did the people of that country produce, how much value of goods and services did they produce and that is the same thing in a financial year. Year means financial year, in economics it is the period from 1st April to 31st March, this is what we call it, remember this, now understand what is the difference, as if I say this, this is the territory of India, India is the country, this is Within this, these white people are the people of India, these are the yellow people, these are the people of foreign countries, okay, so it does not matter whether they are white or yellow, they are Indians, it just means that they are living inside India and if they produce. If we are doing this, then we will call it GDP. Okay, but but if we count only the white people, count only the Indians and remove them, then we will not call it GNP. This is half the definition, because some Indians would also be living outside. Australia is fine, Africa is North Europe, North America is South America, Indians will be living there too, so we will add them too. If we are removing the foreigners living in our India, then our Indians living outside will be fine. If you add them , that is why GNP means N means national i.e. how many of our nationals i.e. citizens of a country produced, that is called GNP. Now the point comes, if we have to go from GDP to GNP then What has to be done is nothing, you have to use some formula and this is the formula, write it here, so that you can easily understand, the formula is that you have to calculate GNP, Gross National Product, Gross National Product. What will you do with GDP from Gross Domestic Product? Remove the net factor net. What will you do in it? Add and subtract factor income from abroad. What will you subtract? Or this is how I write, you will subtract factor income from abroad. How much came in and how much went out, that is. I can write this as G NP equal to GDP plus net factor income from abroad, that is, how much factor income is coming from abroad, you have to add it and you will get G NP, this much is cleared, net factor income from. If negative is coming abroad then it will decrease. If positive is coming then it will add. Now you must have heard all this NDP NNP. You must not be so innocent, you must have heard all this. Now what happens when this production of goods and services? It is as if I am also providing a service to you, I must be making some money, so am I making it by using the laptop or not? Okay, the table is being used, let's leave the table label, laptop. Is my mic being used or not? The value of the laptop that I am using is also decreasing, so we cannot say that I have used it for years. If he earned ₹ lakh, then it cannot be said that brother, look, he has earned ₹ lakh, add 3 lakhs to it. While earning it, he might have used it for his belongings and also used it, so reduce its value. How many times have they used that thing, how will they do it, then it is calculated in such a way that let us assume that brother has a laptop worth Rs 50,000 and he does not use this Rs 50,000 laptop every year or let us assume that yes, whatever. Suppose they use it for 5 years, it is fine for 5 years i.e. after 5 years their laptop gets damaged i.e. every year the price of their laptop is decreasing by Rs. 10000, subtract that, this is called depreciation. What is this called depreciation? If we say that the value has increased, then the value has decreased. Whose property is it? These are capital goods. There are many types of goods. There are many types of goods. Okay, as we will read now, public. What is the difference between good and private good, I have kept it at the end, we will read it in the end , for now, capital goods are like those which have become our tools, using which the production of something has become a factory, like if we talk about a biscuit factory, then there The machine by which they make things, they must be depreciating when they use it, then it is called depreciation, so it is the same that if we subtract the depreciation from the gross, then we get the net. If you did not understand then you will understand now. If I need a now, then what did I do? I took out NP from GDP. Now I want NDP. Now I want N. NP. Net National Product. So nothing. Sir, whatever your GDP is, subtract the depreciation from it and In the same way, reduce the depreciation in GNP. What will happen by this, the gross will become net. Domestic will remain domestic. Sir, if you want to go from domestic to national, then you have to add NFIA. Understand that I am saying this as net factor income from abroad. Now you have to get the net from the gross, so you subtract the depreciation. I understand, then how many are there? We told you eight, which is four, which is the first, second, okay, this is the third and this is the fourth, NDP i.e. Net Domestic Product and this is Now this is the Net National Product. Now these are our four. Who are the remaining four? Look, these are the remaining four whom we calculate on factor cost. All of them were calculated on market price. All of them were calculated on market price. Pay the market price means the market price for how much something is being sold in the market. If we calculate it then it is called market price but the cost incurred in making it is called factor. Understand the cost, this is the factor of production, how much does it cost to make it, how much money are we paying people, how much does it cost to make the final, brother, the final is whatever we have to pay, if you go to buy anything, anything, there is tax added on it, direct tax. Indirect tax is imposed on everything. Mostly it is indirect tax. Now we will read what is the difference in both. Everything is given by including it, so remove all that, how much does it cost to make, it is called factor cost, so just as there are four indicators. These were GDP at market price, GNP at market price, NDP at market price, APP at market price, and if we factor cost the market price, then four more will be generated, it will become eight, but now if we have to go from market price to factor cost. Or we have to calculate the factor cost, market price, how will it be, you subtract the net indirect tax, the work will be done, subtract the net indirect tax, now what is net indirect tax, what is the meaning of net indirect tax, sir, you Wherever you see the meaning of net written, it means that something or the other must have been subtracted from the gross or from someone else, like here it is written net, here I have written net, then why something must have been subtracted from the gross, depreciation has been subtracted. Here the pay is the net indirect tax. Net indirect tax means if something has been deducted from the indirect tax, then the subsidy has to be deducted from the indirect tax. So we can write the same formula like this: market price minus indirect tax plus subsidy, write anything. There is only one thing, I understand that now if someone tells you, boy, come here, then you ask what else, come here, you tell me that we have NNP at market price, okay, just tell me, calculate the factor cost from this. You tell uncle, just subtract the net indirect tax and your work is done. Uncle will say son, you have done one thing, earn one. Take out that factor cost of GDP. You tell uncle to bring the market price of GDP and net. Subtract this and you will get the factor cost of GDP. There is no problem uncle, simple. Okay, now listen carefully. What is this thing? N.N.P. At factor cost, this is called national income and when the question comes on this. People forget the thing that when N asks, he will write such strange values ​​and will do all this, to confuse you will ask to calculate the national income, he knows what he will do , he will give you the value. Let's take it, listen to it, he will give it, accept it, he gives it to you, what does he give, GDP can't be more difficult than this, if he gives you GDP at market price, it's okay, he gave you GDP at market price, it gives you some more value. Will give so that your son will ask son, find out the national income, what will be the national income from this, then the national income told that this is the NPA factor cost, so now how we reached here from here, I have told you all the methods, first make the net of gross. This is the gross, this is the net. Depreciation must have been given and subtracted from it. So now what is that? Now what has this become? Now this is the net domestic product at market price. Okay now sir, this is national. This is domestic. No, you will have to go to domestic sub-national. No one do you know. The method is that you have to add the NFIA, you must have added the net factor income from abroad, now this is the market price, this is the factor cost, you know the method, you have to subtract the net indirect tax, there cannot be a more difficult route than this, where he You have got everything used, you have also deducted the depreciation, added the net factor income from abroad and also got the net erect tax deducted. Finally, you have understood the concept. Now from here, understand personal income, what is personal income? Okay, yes, it is absolutely correct. What is personal income, so personal income is national income, whatever national income you have, whatever national income you have, minus profit, minus profit earned but not received, that is, profit has been earned and that profit has not been received yet, not received. This is to be reduced, you have to remove it, Plus Plus, this is to be reduced because you are not receiving it, Plus, you have to add the transfer payments or leave this transfer payment, I am writing to you like this, I will explain all the things to you, there is another way also. Write the profit like this or I should write the income that is not earned. The income which has not been earned but has been received has to be added. Here also you can write the income like this, like your corporate profit. Like you said it somewhere Invested is fine, you have earned the money but you have not received it yet. In this financial year, it will be said that you have paid corporate tax fine. Sorry, I am saying corporate tax. Undistributor corporate profits. Undistributor corporate profits are fine. Undistributor profit plus. Income which has not been earned but has been received is like a subsidy. You have not provided any services or produced anything to anyone. You have just got free funds. We call this subsidy as government transfer payment. Transfer payment, we also add and subtract some other things in it, like we will subtract from this, assume that the sorry you add is net interest, net interest paid by government, let us add this, just keep this thing in mind, net interest paid by government. From this we get personal income. Okay, now you have understood this thing, what is personal disposable income? PD I. Well, personal income, so you have understood that in a way, how much did every person earn before. If let's first listen to this, personal disposable. What is income? Personal disposable means disposable income in Hindi. Here was personal income. Why did I add an extra word? Disposable means how much money is available at your disposal. Disposable means how much money you have in your hand which can be used. You can spend, we calculate it in such a way that whatever taxes you pay from your income should be removed, just because that tax is like you got a salary of Rs 70000, you got selected in CGL, now you also have to pay some tax in it. You will have to fill it, you cannot use it for your expenses, then what is left after removing it is called personal disposable income. Sometimes this question is asked like in CGL Mains this time in 2023, it was asked that the income of all the person before sub. Cutting the Taxes: Before removing the taxes, there is personal income, but what if both the options happen, both means personal income and on gross income, gross income, then the answer is gross income, although I had told you earlier about personal income, earlier also I had given one shot. I had taken CGL, earlier I had told only personal income, the question came and people accepted it as personal income, SSC first accepted personal income only but later it changed the answer and made it gross income, I don't know why it did so, it is right and while the answer Personal income was the only question but now SSC can do anything, so you have to keep in mind that even now the court case is going on, but considering gross income, if it is in both the options, then we can move ahead properly - real and nominal. What is GDP? If you understand GDP, then understand what is the difference between real and nominal. Let us understand the difference here. If you understand this, then let us understand what is happening. Let's take a biscuit factory. Okay, this is a biscuit factory. There is a factory and we came to know that this year, let us assume that it is a factory of biscuits and in this year i.e. in the year 2024 or in the year 2023 24, we saw in the financial year that how much value of biscuits has been produced by this biscuit factory. Then we found that let's say how much did it produce, 0000 is okay, let's assume it produced ₹ 1 haj, then we saw how many biscuits it produced, then we saw that brother, it produced one packet of biscuits. It was worth Rs 10, so it was worth Rs 10, so it means that it must have made 000 Haj biscuits, sorry, must have made biscuits. Now we have to see whether we consider this in our GDP, only biscuits have to be made in the entire country and nothing else. It is happening and we have to see that its GDP increased, how much did it contribute to the country's GDP, if I see 10 years ago, 10 years ago i.e. 201314, then tell me, you mean, what were all the people doing from today? 10 years ago in 201314, here we saw that here too, 10000 rupees were being produced, okay, here you can assume that 5000 rupees were being produced, 5000 rupees, so this means that we know this. That brother, he doubled his contribution to GDP but this did not turn out to be true when it was seen that even then he was making 1000 biscuits and even today he is making 1000, so how did this GDP double, its production? There is a constant of a constant, it is staying at the same place, then we came to know that earlier the price of biscuits used to be ₹, today the price has increased, what is this called inflation, the next concept is currency exchange i.e. money has increased. Then the question came that what should be done, then it was decided to do one thing and take a base year. Take this or do one thing that take a constant price, brother, the meaning of constant is that why don't you take it as Pa, that is, whatever Rs you take, consider it as Pa, you will automatically know when you multiply it with Pa, okay. Haj 5000 i.e. still there is no increase in the contribution in GDP, it is standing at the same place, so what you did is you took the constant price, then when you take the constant price, it is called real GDP, when you take the current price which is today The price of that biscuit is going on beyond that. If you calculate then we call it nominal GDP. This is real and this is nominal. Well, that is, what happened is that what have we done with real GDP, if we have converted nominal GDP from nominal GDP. What is real GDP? Inflation has been removed. Real GDP is adjusted. We will keep this in mind that it is adjusted to inflation. It means that inflation has been removed from it. The air called inflation has been removed from it. So what do we do in this? Let's take a base year in this. Now constant price means constant price means that we will take a base year and the base year is like what is going on right now in 2011-12, what were the basic things going on in 2011-12. What was going on in steel, what was going on in furniture, what was going on in everything, what was going on in AC, we will see that and accordingly we will calculate how much by multiplying our unit produce, that is, we will take a constant price. By determining the base year, it is included in the real GDP. Okay, this much is clear, so what do we do for this, like I told you, for this we did not tell you yet, for this we take a GDP deflator, which we call inflation in Hindi. Factor or this is what we lovingly call price index. What it does is it helps in removing that inflationary air. Our formula is Nominal GDP upon Real GDP * 100. This is its formula, not GDP deflator. If the currency status factor is clear then give you anything like what will you put here and your answer will come out, maybe we can get the price index calculated from you, okay then it is called price index or if you get it calculated then you can only here. Will remember the formula clearly. Now let's understand what is inflation. Before moving ahead tell me in the comment. Does increase in GDP necessarily mean the welfare of a country, welfare of country and welfare of people. Tell me is it true or not. Let me tell you, let us assume that the GDP of the country has increased, if the Gross Domestic Product of the country has increased, then it clearly means that the country is growing, no doubt yes it is growing, the country is growing but here The question being discussed is whether people's welfare is increasing or not? Is people's standard of living rising or not? The answer is may not be necessarily. It is not necessary if you are saying increase in GDP must mean that. The Welfare of the People This is not true, it is incorrect, why do we assume that this is Ambani ji's company, Adani ji's company is ok, Tata ji's company is ok, Birla ji's company is ok, our big production houses. They are producing very well, they are producing very well, GDP has increased, but now whoever is living poor in a slum, how did he get the benefit, how did he get the benefit, he did not get any welfare, he does not have any welfare. It may have increased and there is a factory which is producing a lot. There is a poor man living next door who is dying due to air pollution. Whatever their waste is, they pour it into the river nearby. The poor person who is drinking water from it and feeding it to his animals is suffering loss. GDP is increasing but he is also suffering loss. This is called negative externality. Negative externality. Remember what is externality. Someone is doing work and due to that someone else gets affected, it is called XT but keep in mind that the effect can not only be in negative way but can also be in positive way like I am taking a class here. It is possible that someone is sitting next to me, it is okay and he also has to learn economics, he also has to give CGL exam, people, he does not have enough money to go and study, so he is not giving me money for that. ok money maybe you guys you guys are not even giving youtube2 is going on and you guys are giving me money ok money you guys are giving I am earning from you but he is also taking the benefit and he is not paying me, that is, in this case it is a positive externality. I will take another case. It is possible that he may have an NEET or JE aspirant next to him. It has nothing to do with the economy, poor guy, I am speaking out loud, I am not able to read, negative externality. If you understand, it can be negative, it can also be positive, okay and GDP does not necessarily mean welfare. Let us come to inflation. Let us come to inflation. Inflation means increase in the prices of things. Prices of things can increase in two ways, either the demand of the people increases. The demand of the people can increase in such a way that the money in the hands of the people increases or else. If the prices of things increase, this is called demand pull and one is called cost push, that is, the prices of things have increased. The prices of things can increase because it is possible that the factors of production have increased, e.g. For example, if I make your course fees expensive, then it is possible that the laptop has started getting expensive, the mic in which I write has started getting expensive, then because of this I have increased your fees, then this is cost plus inflation. So what does inflation mean? It is simple to increase the prices of things. Its opposite is deflation, but its opposite is disinflation. It is okay to understand this thing, disinflation is not its opposite. Disinflation means these decreases in the Rate of inflation decreases in the rate of inflation Inflation is still there but its rate has decreased like let us assume that last year it was at 6, today it is at 5 and now it is again at 4 i.e. inflation is still there at 4 but Its rate is decreasing. Deflation means the opposite of inflation. It is okay that the prices of things are decreasing, as is happening in China these days. It is okay that deflation is going on in China. Let us assume that 10 years ago from today, the prices of things are decreasing. Okay, the opposite is from today, let us assume that 2 years ago the biscuit was worth ₹ 10 and today the same biscuit has become worth ₹, then what is the price decreased? What are the majors of inflation? So you should know two majors of inflation. One is the consumer. Price index is CPI and one is WPI that is wholesale price index. Now wholesale, as soon as you hear the name, you must be remembering T-shirt and shirt. Neither is it a habit nor you run away on hearing wholesale. Wholesale is the name of two brothers. There has been a fight and come quickly and pick up the goods. They are offering branded goods at cheap prices and you just went away and later you come to know that these are canceled goods. The meaning of WPI is that the wholesale prices which are The shopkeeper buys the goods, for how much he buys, if we calculate at his level, then the Wholesale Price Index, at his level, if we calculate inflation currency rate, WPI from the consumer's side, if we calculate how much the consumer is paying. How much has it increased for that thing, then why is there a need for different CPI? Now see, in the price paid to the consumer, the poor person has to pay tax as well. Tax is also included in it. Whatever you buy, it has GST in it. Tax is all included, not so much tax component is included in it, now who calculates it, what is the base year, then calculates CPI, under whom does NSO come under, under which ministry, Mospi Ministry of Statistic and Program Implementation It is calculated by the Office of Economic Advisor which comes under the Ministry of Commerce and Industry. This much is clear, its base year is 20111, its base year is also the same 201, CPI which has the highest weightage. The highest weightage is given to food and food items. The specialty of WPI is that these are manufactured goods and not the manufactured goods of secondary sector. Services are not included in this. Services are as if I am providing a service to you. It does not capture how much price has increased in it. Services are not included, so if I want to see the services, I will have to go to CPI, that is why RBI is there, that is CPI. Now let us see what is this monetary policy but before that let us see Irving Fisher's Theory of Money Illusion. Irving Fisher had given a formula by converting the MV. * v = p * t where p What does m mean m means money Supply Money Supply v means Velocity of Circulation of Money i.e. it is correct. What can we call Velocity of Circulation of Money? Can anyone tell then Velocity of Circulation Velocity of Circulation of Money is correct. P is price level and T is transaction. What is a transaction? Now Irwin Fisher ji had said that whatever money is coming in your hand today, it may be more than what it was from yesterday, that is, from tomorrow, I mean, it may be two years before today or 5 years before, but its This does not mean that your salary has increased, why may be your salary has decreased, you are feeling that 5 years ago my salary was Rs. 20000 per month and today it has become Rs. 00 per month, which means that brother, my salary is Rs. 10000. It has increased but when you calculate that the things which you were able to buy for Rs. 20000 5 years ago are now not available for Rs. 300, because the prices of things have increased because there is inflation. Therefore, in actual, your salary has not increased as per the inflation, your salary has not increased as per the inflation has increased, that is, your salary has decreased. It is called Money Illusion. What is the meaning of Money Concept Illusion? What is visible to us is not actually true. What is not visible is not what we are able to understand. Okay, so if our salary has decreased in actual, then this is what we are talking about. It is said that who gave Edwin Fisher's Theory of Money Illusion, what formula did Edwin Fisher give in MV E E II PT, one should know what it means. Well, it means that if you increase the money supply, then the velocity of circulation will increase, which means Because of this, the prices of things, whatever they are, will increase. So much is clear. Okay, Velocity of Circulation of Money means that take a paisa or any note, take a coin, how much is it circulating in the economy. Velocity of Circulation of Money is clear, how much money is circulating in the economy is called Velocity of Circulation of Money. Now coming to Money and Banking, our next concept National Income is clear to everyone, till now no one has any doubt. And today's class will be the smallest, I think it 's okay, why is the quiz not coming on Telegram, Sir Suraj Gupta, where are you sleeping? Which quiz is not coming on Telegram, it is coming every day, brother, which quiz is not coming? Whether it is GK or Reasoning, all the questions are coming. Okay, tell me one thing, what is Green GDP? Can someone tell me what is Green GDP? What is Green GDP? What is Green GDP? So GDP adjusted to GDP. Adjusted to environmental factors means that if I am a factory, I am producing, let's say 00, in that I am also causing a loss to the environment of 000, then subtract that and the GDP that comes after that will be called green GDP. Okay, environmental factors are okay, clear thing. Tell me in the comments that while calculating GDP, while calculating GDP, do you add intermediate goods? Okay, do you add intermediate goods? Tell me quickly, keep in mind the intermediate ones. Goods are not included while calculating GDP. Okay, Intermediate good. Well, I haven't told you yet. Okay, but I will tell you last. What is a public good? What is a final good? What is an intermediate good? Understand this like this. Suppose someone like A, I told you in Gross Value Dead, is making biscuits and if he uses flour, then the flour is an intermediate good for him. Will his price be included or not? Because it is double counting. It will be an error, it will be a sin, that is why we do not do it. It is okay for double counting. Now let us come to study money and banking. So, what is spread of bank? So to understand spread of bank, we need to understand the bank's profit. You have to understand how it earns and that is the spread of the bank, so let us assume that the bank is fine, then what does the bank do? The bank takes money from people, why does it take it, it says come deposit it with us, we have the money deposited. Pay it here and it will be safe and we will also give you some interest rate. Let's assume that Chunnu is ours and Chunnu is getting an interest rate of 4%. Chunnu is happy because Chunnu does not actually know that What is the rate of inflation and his money is decreasing in actual? Irwin Chunnu has not read Fisher's Money Illusion Theory. Chunnu is happy. The bank is even happier than that. The bank says. Chunnu says, keep the money in the bank. The bank is happy and inside, the bank is thinking, look, what a fool he is. Well, he has kept the money in the bank. He is earning a lot, a lot, he is keeping a lot of money in the bank, Munnu, poor guy, okay, Munnu has come , Munnu says, Munnu needs money from the bank, brother, more people need money, givers are less, takers are more. Now Munnu may be thinking that he has to do some business, he wants to do business, then Munnu came to know that Munnu has to do business, so Munnu asked for money from the bank, it is okay because there is a little safe etc., so Munnu asked for money and what did the bank do? They did the same money which they assume was Rs. 000. Chunnu picked up the same and gave it to them. Now what will happen to Munnu is that the bank will not give it to Munnu for free, it will say to Munnu that you are thinking of giving us a badge worth Rs. 6. Do you understand here that the extra interest rate paid on Rs. 2 is called spread of bank? Do you understand what is spread of bank? This is the profit of the bank. You can say the extension of the bank . I understand that in a way I can say that the money given by Chunnu is the liability of the bank. What is the liability of the bank? The liability of the bank is its deposits which it has and the deposits of the people. And what is the asset of the bank, what is the capital, the money he has taken on loan because beyond that he will get interest, it is the asset, it is the capital of the bank, it has to be given to the bank, it has to be given with interest, hence it is its liability. Okay, what happens now? That bank bo means the bank is here like ok so 000 everything is done now here comes the concept of CR and SLR so what is this thing so now it is 000 Chunnu gave it and the bank gave it to Munnu now respect Let's take Chunnu, now Munnu must have said, brother, look at the bank, we are taking this money from you for one year, we will keep paying the interest from time to time, don't worry, when you come home, the bank says it is okay because Munnu said that brother. That's why it came with you, otherwise we would not have taken it from Gupta ji next door. You tell me, if you don't want to spend every day, he says, yes, that's true, but Chunnu suddenly needed money , so he lost his money in Dream 11. If he wants more money then he would run to the bank saying give me Rs. 000, the bank would say, brother, I have given that to Munnu, Chunnu would say, bha, let me take it, you want Munnu, you want it, but I want the money. So , if there will be any problem here then Chunnu, who is Chunni Chunne, will go and tell everyone that brother, this bank is a very bad bank, I have gone to take the money, not only my money, but I am not getting my money, so Chinni Chinno, as many as possible. Everyone will go that brother, give me my money, give me my money because everyone will feel that even our money is not safe, in such a situation the banking system can fail and if the banking system fails, the entire economy will fail, the economy will fail, the country will collapse. And the country will collapse, if the government collapses, then the government will not allow this to happen, then what will happen? RBI, RBI will come, our Reserve Bank of India will come and it will say to the bank, look bank, you write down your net demand and net in full, the net demand and the time liability. Some paisa liability means whatever money you are getting. In simple words, you are getting the entire money. After removing your electricity expenses i.e. net, after that whatever money is left, come to us and deposit it as per the cash. You keep some amount of Net Demand and Liability in the form with us so that if people suddenly come asking for money, you will forget to have it in your hands. Come near us, we will pick up the money and give it to you, which you will keep in cash in which we will Will not give you any interest, he will be told that cash reserve ratio is fine and you give some money in such a way that the bank did not start crying. Why did the bank start crying because the bank was saying this, friend, if we had raised money to people then we would have got interest on it, give it to you. The money given is in cash, now people are crazy, the banks are a little crazy, people keep their money in cash at home, actually the value of that money is decreasing but the bank knows that if I keep the money lying like this then the bank will lose money. If the value starts decreasing, then RBI says, don't cry, do this, keep some money in cash and do something like this, keep it in government security or gold etc. It is okay, like in our house, mother, people are cash. I have some money in it Secondly, there is a different type of mother. Suppose it was in cash. Then what did mother do? She took some gold worth some money, then the value of the cash kept is decreasing but we know that the value of gold keeps increasing with the time. Today, let us assume that the gold worth Rs 1 lakh that your mother bought from you may be worth Rs 3 lakh-4 lakh after 5 years, that is, at least its value has increased, which means that here they are getting some interest. This is called Statutory Liquid Ratio, Statutory Liquidity Ratio. If you understand, this is exactly the same concept. What is Money Multiplier of Money Multiplier ? Now what did Munnu do? Munnu made it 2000 and gave it to some bank as interest. 2000 means from 1000 to 2000, brother, the money got multiplied by double or not. Now think about it, RBI told the bank, listen here something. If you give us the money here, then assume that he said that it is okay that you keep ₹ 1 in CRR and 50 or you keep ₹ 1 in SLR, then keep ₹ here with us i.e. now bank. It will be able to give only Rs 800 to Munnu i.e. now it will be able to give Rs 800 i.e. now the bank will be able to give less money to Munnu and now that money will be less multiplied i.e. money multiplier which is and 1 own CRR one own cash reserve ratio or The higher the Cash Reserve Ratio, the lower the Money Multiplier will be by RBI. It is understandable. Now let's come to Monetary Policy Tools. If you have understood this, then you will also understand the Monetary Policy Tools very well. What are the tools? So this is what happens. No, that happens now, we will see that it is different, if you are understanding that Marginal Propensity to Consume, then it is different, that we will see further, so see what happens, there are two types of tools, there are two types of tools so that What does our RBI or the government of our country do? It regulates the money in the economy. Why does it regulate the money in the economy? There are reasons for that too like let's say there is a situation like inflation, there is too much money. Whatever is lying in the economy or let's assume that there is a situation like deflation, demand is not being generated in the economy in the market, people are not purchasing anything, then for such things the Central Government uses some of its own equipment if it is used by RBI. If the government does its own instruments, then it is called monetary policy and if the government of the country does it, the Government of India does it, then we call it fiscal policy, fiscal policy. I will explain it to you in very simple words like if you believe that I and you. You are the government, I tell you, son, do one thing, reduce money in the hands of people, then increase or decrease the tax, tell me quickly, increase or decrease the tax, increase or decrease the subsidy, simple, whatever the tax is, I will increase. If I do this, then there will be less money in the hands of the people. Remember, if the personal disposable income tax is high, then the personal disposable income will be less, and the subsidy will have to be reduced, that is, the transfer payment will have to be reduced. Now if we assume that money has to be given in the hands of the people, then Brother, demand is not being generated, people are not buying, don't know why, then what will I do, waste the government free money, take yellow Haj subsidy in LPG, take education subsidy in this, take this loan, take that, so what is this, that government. Fiscal policy is being done on its own now, RBI has tools, they understand bank rate, repo, reverse repo, MSF out right purchase and MSF, bank rate is the rate at which RBI lends to bank. Remind me in comment. In the last, let me write to you some things about RBI, I am not in much depth but yes, some things like first, who was Osborne Smith and who was CD Deshmukh, what was Hilton Young Commission, when was it formed, these are some things. Okay, so last. If this is not done now then we will get it written, okay then the rate at which RBI lends to the bank, which is a scheduled commercial bank, what is a scheduled commercial bank, which is mentioned in the Schedule to RBI Act of 1949, like SBI etc., so that If we take a loan from the bank then sorry from RBI and just like we go to the bank to get a loan, to whom does the bank go? With RBI, the bank rate and repo rate are also the same, so what is the difference, the difference is that the repo rate is the same. It is taken for short term in it is taken for short term and collet is also kept in it, some pledge is kept in it, collet means there is mortgage in it, nothing is pledged in bank rate, hence There is a little more risk for RBI in bank rate and less in repo rate, hence the rate of bank rate is higher as compared to repo because if the money is lost in bank rate then it is difficult to recover it. If it is higher then it is higher in normal cases Bank Rate Reverse Repo Rate Reverse meaning of Repo is that RBI is going to take loan from the bank, absolutely wrong, wrong because technically think for yourself, we are going to take loan from the bank, SBI etc. SBI from us. What will we think if someone comes to take loan , what is happening about SBI, here Ganga is flowing in reverse, we go to take loan from them, today they are coming to take loan from us, meaning their condition is bad, so this means it is common sense. The thing is that whoever takes a loan from someone will not start taking a reverse loan himself. In this, what happens in reverse repo is that RBI gives an offer to the banks that friends, listen to the banks, come here and here, how much money are you taking from people, in how much money are you If you are taking it up then the bank will say brother, you are taking it up at 7 or 899 rupees, usually the same rate works at 89 rupees although it varies from sector to sector, so if you are taking up it at 99 rupees then RBI will say here. Come, we will give it to you at 10 rupees, okay then transfer your money here, keep your money with us, this is a very lucrative offer for the bank, why this because it will give money to people and get the paper work done, there is a risk, isn't it NPA? You must have heard. Non-performing assets are those loans which people do not repay. Well, it is called non-performing asset, so there is risk in it. RBI has full guarantee that it will be given, brother, RBI, what do banks do to people ? If you give money to RBI then it is called reverse repo. This is MSF. Marginal Standing Facility . Banks can do it, okay, some banks like C like NBFC etc., not all can do it, that is, there are only a few banks which are completely trustworthy under RBI, you can say it is scheduled commercial, only they can come and take loan in it. It is okay in MSF, so this is overnight learning and usually if we talk about it, it is 25 basis points more than the bank rate. 25 basis points means overnight lending out at 0.25. What is outright purchase? - Direct selling or buying of government security. Repo is the selling and buying of government security. Its full form is Repurchase Obligation. In this also the government security is kept as collated that brother, keep this and give us the money. When we give you the money, you will return it to us as security and the extra money will be your interest. What is there in this? Is it being bought and sold directly or will we come back later and take it back? All that is not working, not out right. Keep in mind the purchase, both repo and outright purchase are called open market operations. Keep in mind what are the types of open market operations. If you ask, there are two types of open market operations. There are two types of repo, wherever. Government security but direct selling or buying is not happening but direct selling or buying is happening in outright purchase, ok MSF has been fired, something else is not missing, ok then remove this, clear now what is this, tools, RBI By using which it is not like there is a tap, this is a tank, this tap is connected, okay now there are two types of plumbing policies, tight monetary policy, the tight one is called dear monetary policy, this is called hawkish monetary policy and the other one. There are two types of monetary policies: Deutsche Monetary Policy. This is a strict monetary policy. So, when is it used? When inflation has to be controlled, that is, when the money supply has increased. To control the economy. When the money supply has increased in the economy. So it is used to reduce it, how does it happen, all these will be increased, Bank Rate, Repo Rate, Reverse Repo Rate, MSF, if you increase all then inflation will come under control and then do not put your mind in it that if you want to increase the Repo then reverse repo. We will have to reduce it, this is not true, that is why we had told you such a long story that the banks are telling you that the RBI is telling you to the banks that you give us the money, come and we will give you a higher rate, then what is the meaning of increasing the reverse repo? It is learned that banks are getting more lucrative offers from RBI, that is, now they If people will not come to them then they will increase the rates i.e. it will not be easy to take loan now i.e. money will not reach people's hands, money supply will reduce, RBI has made the bank rates high, RBI has made the bank rates high, RBI means not banks. Now the banks are getting expensive loans from RBI. Now if the banks are getting expensive loans and the banks do not have money then the banks will make those loans expensive for the people. If people will not have money in their hands then I have reduced the money supply. In this way, its opposite happens - Decrease the Dash. What has to be done in this? Out Right Purchase. In this, selling or buying of Government Security is done. So, if you have to sell or buy the Government Security, then keep in mind that in Out Right Purchase, you have to sell or buy the Government Security. If you sell it then you will get money in your hands, meaning what will RBI do ? You can either have government security in your hands or money can remain in your hands, meaning whether people take it or RBI takes it, then what will RBI say, take it people. What will people do if they sell the government security? People will say, take this money, take the money from us. The money in people's hands has reduced. Money supply has decreased . By selling the government security, the government will say this, right? That RBI will say people, take government security and we will give you good interest on it, then government security has to be sold to control inflation. The end of the matter is Velocity of Circulation of Money. I have told you how many hands money is exchanging. It is called two types of monetary policy tools, one is qualitative and one is quantitative. What you were reading till now were all quantitation tools. All these which you were reading, all these come under quantification tools. Tools i.e. quantitative tools, we call them quantity, quantitative monetary tools, what is this, qualitative monetary tools, we call them qualitative, one second is fine, we call them qualitative monetary policy, this is okay, there are not that many questions on this, questions will come on this. What will he ask? These are the four. Then in the four options he will write in three options. He will ask which of these is not qualitative or he will ask which of these is qualitative. Okay, so we should not take much load in this, just remember these four names. Have to keep rationing of credit Change in marginal requirement Regulation of consumer credit and moral sustenance Rationing of credit What is the meaning of rationing What is the meaning of rationing Rationing of house That brother, this month this much money will be spent on traveling, this much will be spent on food If we save money then rationing is done then this is how RBI decides that we will put so much money in this sector. If we put this much money in this sector then what do we do with it. We control inflation where we have to control it, the quality is fine. Changing of money is changing in marginal requirement. So, when you go to buy anything or take a loan, you go to the bank with some marginal requirement. Meaning of marginal requirement is that you have to pledge something. If you want to keep a Colette then let us assume that you are taking a loan, if you are taking a loan of Rs 1 Lakh then you will have to take a mortgage of Rs 3 Lakh or Rs 2 Lakh because it is possible that its value may decrease in the future, now it is Rs 2 Lakh. He runs with a little margin, so now the marginal requirement has been increased, the bank said that now you can take a mortgage of Rs 3 lakh, now you can take a mortgage of Rs 3 lakh, if you do not take a loan of Rs 1 lakh, then the marginal requirement is Rs 2 lakh, then now people will be able to take less loan, then the money. Regulation of consumer credit installment amount has reduced. Down payment is something. If you want to take a loan of Rs 1 lakh then make a down payment of Rs 10000. At least now the banks are not asking you to make a down payment of Rs 20000. Do whatever you want. There are some such type of people who cannot give Rs 20000 as down payment, they will not take it, that means immediately the demand in the economy will reduce and inflation will come under control. Model suspension means, in a way, we also call it Sentia. Sentia in the sense happens many times, RBI reduces the rate etc., increases the rate etc. but the bank does not do the work, then RBI requests the bank to do it, according to you, it is called a moral lesson. This is over, okay, moral persuasion, let's call it in Hindi, let's call it margin, what will we call requirements, okay and let's call it consumer credit, regulation, regulation, okay, so it's done in Hindi, it's clear to everyone, now this is our last, this is the last concept. There is a section in money and banking that is micro finance. After this there was also this, so what are micro finance institutions? Micro means small, finance means financial activities and those institutions which do such work are called micro finance institutions. Now what is this work? What is the main work of loan? Loan means small loans. Now look, the work of micro finance institutions is to give small loans. The amount is different for every country. Let's talk about our India. Micro finance session is all important. It is a very important topic. 100% question comes, it means that even at Rs. 1, it is not possible. It is okay if the money is less than one lakh. It is called micro finance loan, now the institutions do not just give loans but they also do some other work but their main work is to give loans which is especially to the poor and then to the lower middle class, so it caters to those whose annual Income: Those households whose annual income is less than Rs 3 lakh can take this loan. Why can't others take this loan? Because it is a collateral free loan. You do not have to put anything in it as collateral. Why this institution? These institutions have been set up to promote financial inclusion, that is, to promote financial inclusion so that the poor section of the society can also participate in financial activities and can also do some entrepreneurship by taking loans, hence these institutions have been set up. You can get a loan of less than Rs 1 lakh. Your income should be less than Rs 3 lakh for the entire house and collateral free is fine. In this , micro finance issue is set up to cater to the poor and our lower middle class. Is it the first Micro Finance Station or whom do we call the Father of Micro Finance Institution? This is a very important question, then we call Mohammad Younis as Father, who has also become the leader of the interim government of Bangladesh. His activities are Nobel Peace Prize Winner Type. It doesn't seem that way because they already got the Nobel Peace Prize in 2006, but their actions don't seem like that right now, okay, all this violence is happening, okay, anyway, the Peace Prize and different types of prices are reported. Among them too, everyone has some of their own fools, be it Western countries or some media houses who direct their own fools. Well, if we keep that aside, then the Nobel Prize was awarded to Mohammad Younis in 2006, whom we call the Father of Micro Finance Institutions say that they had set up Gramin Bank in Bangladesh. First of all, okay, Bangladesh Gramin Bank had been set up and these charges are also imposed in Bangladesh that they have formed a company by doing a Telecom Gramin Bank of their own and in that they will provide services to the rural people. They took out the money that was from the bank and put it there without the permission of the workers. Telecom had enough I thought if not they paid 2 million US dollars. There was also a case against them for 2 million US dollars. Now what will not be done, what if it is not okay, why? If there will be a case against them, then Mohammad Younis. Well, if they have to work, then what Bangladeshis do, we have to study economics. Let us move ahead. Here the question arises that who was the first micro finance institution in India ? The first in India was Seva Self. Employed Women's Association, keep in mind that this service was made in 1974, it is made in Ahmedabad, okay, you have to keep this thing in mind, what are our Micro Finance Institutions, like here I am waiting for a second, I was completely removed yesterday. That's someone else yesterday, my mind was disturbed, understand this, I remained disturbed for one or two hours, I even broke my mouse, that means two hours in anger, if something like this happened then the PPT was not saved, that is, first. So PDF was not saved, then PPT was not being saved, nothing was going right, finally broke the mouse and then sat down to make the mouse. Well, these are our micro finance like self help groups. SG, what are these self help groups? It is a group of 10 to 20 people. It is a group of 10 to 20 people who do activities like a micro finance institution. Okay, and this micro finance institution means why go so much because collectively a little social angle is added to it. This is because Mohammad Yas understood that if someone does not repay the loan then he faces social pressure like SSG is a group of 10 to 20 people, now they have taken the loan. Now, if a person is not repaying the loan then other people will put pressure on him to repay the loan quickly, otherwise it remains a pressure, SHG, keep in mind and the first SHG I have told you is Self Help Group, if you ever ask, Joint Liability Group. What is JLG, it is a small group, it is a group of four to 10 people, it is okay, now it is NBFC MF I, what is Non Banking Financial Company, Micro Finance Institution, so before that, Micro Finance Institution, so you have understood this. What is NBFC? So the non-banking activities we do are called NBFCs. They cannot accept demand deposits. They cannot accept demand deposits. Now you will understand what demand deposits are, only after this we are going to understand, okay. So demand or let us explain that there are two types of deposits that come to the bank. One is the deposit that we just saw and the Munnu deposit that Chunnu came to the bank to make. There can be two types of deposits either Chunnu made like this If you have made a normal deposit then it is okay then we call it a demand deposit. Is it okay? Or did Munnu get that money made into an FD? What did he do with that money? If he made an FD, then call it a time or term deposit. So did he get an FD made or a fixed deposit? Got it done, got RD done and if we assume that he has deposited the money in his savings account, deposited the money in the savings account in the savings account, it means you can withdraw it from the ATM anytime, withdraw it from the bank, no problem or whatever business you are doing. If you maintain a current account then it is fine then you can do it. Savings account and current account are spoken in Hindi. Now what happens in FD and RD that you cannot withdraw money from the bank just like that, you have to break the FD and break it. If there are two types of deposits, then these NBFCs cannot accept demand deposits. Now what is NBFC MF? Two things are important in this, first thing first . The thing is that they were set up on the recommendations of a Male Gam Committee, which was formed in your year 201011 and recommendations were given in it in 2011. Okay, we will remember the Male Gam Committee 2011, according to which NBFC MF I was created. Now, if any NBFC wants the title of MF I, then its 85 percent off cost assets or simple assets should be considered as assets which should be in the form of micro finance i.e. there should be micro loans. The meaning of asset is that which the bank owns. Loan is the same which is called an asset. Just taught that at 85, its loan should be micro loan and if you get the title, then after that you have to maintain the assets at 75 and it will ask you only this much in the form of your micro loan, okay? Why are microfinance stations set up? Financial inclusion is called financial inclusion for less than Rs 1 lakh. Your income should be less than Rs 3 lakh and what is the duration. In this, the duration i.e. their micro loan is available. Is it for the duration, not more? Than 36 months i.e. less than 36 months, for 36 months or 3 years, it is the same thing, you will remember this data also, apart from this, hardly any question will arise and even if it will arise, then let's assume that it will not be possible for anyone, anyway, there are least chances. It is certain that it will be formed out of it, but even if it is formed, then it should move ahead, not the other way around, that is correct, okay, let us now come to monetary aggregates. What are these monetary aggregates? So if RBI has to see how much money is lying where, how much. To find out where the money is lying, he uses monetary aggregate. What is monetary aggregate? You must have heard the name m0 meaning or m0 m1 m2 m3. You must have heard such names, so those are our monetary aggregates. So we find out what are the monetary aggregates. There are a lot of chances of getting questions from this too, so understand it easily, let me explain it to you, m is not one, m1 is ok, m2 is one, A3 and one. What is A4? Okay, what is N, let's write it a little higher, neither is M nor, what is M is, keep understanding, currency in circulation, how much money is circulating in the economy, plus bankers' deposits with RBI, bankers' deposits with RBI and Other deposits are fine, other deposits with RBI, this is N m1, what is m1, by the way, there is currency in circulation, there is currency with public, now there is currency in circulation, there can be two types of currency which are in circulation. One is with the public and one with the banks and what do we take currency with? Public Currency with Public Plus Plus Other Deposits with RBI Okay Other Deposits with RBI Plus Demand Deposit Demand Deposit Now I told you what is the money in the savings current account, now what happens in it, you get confused, what do I say next? What I do is I remove this and in place of this, I remove the demand deposit which is written as currency with public and other deposits and not with RBI, in its place which I am showing in circles, I will write m0 in its place. It is similar to m0 and not the same. Do you understand that this component will be found in m0? This component is there, but I have told you in currency in circulation, there are two things in it, one is currency with public currency with a bank, so it is okay. Here we have taken only the public one, so what am I saying directly, remove this and write m no. For your convenience, if you can remember the previous one easily then there is no problem, remember it, it is absolutely accurate, absolutely accurate, but If you have any problem then you can remember m plus direct demand deposit, even after the matter is over, your question will be there, what is the depth of pay, it is not asked even in your SSC, it is asked in UPSC, not here, it is ok and if asked then the athlete will ask only this much. So I have already explained to you what is m2, pick up m1, there is no such thing in it, it is picked up only in actual, only m1 is picked up and the post office, how much savings do they have? How much money is there in savings? What is A3? What is A3? And again, will you use it? Plus time or term deposit and what is A4? What is A4? Pick up A3 plus total deposits with post office clear, so many things. Things are not over yet, okay if you have understood this thing then now one thing here and that is that it may not be written as demand deposit and if it is written like this in short then it means DD. Meaning, it may be demand deposit, it may be written as TD, not time deposit. If he writes POS there, there will be savings for the post office, its meaning is correct, so understand this, keep in mind that he will write TOS, meaning Total will write TPO of the post office here. You have to understand what he is trying to say, that's fine, you will understand. Now here some questions are raised and that is, who says what to whom, we call it reserve money reserve or high powered money, we call it high powered money. Will say ok Clear i.e. we call it reserve money i.e. reserve money we call m1 narrow i.e. narrow money nano narrow money and A3 we call it broad money broad money and M3 we call monetary Aggregate are all monetary aggregates, keep in mind all four but if we talk about the broadest of these and just ask you which of these shows our actual monetary aggregate then it will be m3. Many times it happens that in narrow money it is not just m1 but m1. m2 means it gives like this, which of these is narrow money then m1 will give m2 then m1 will be m2 in broad money and not just m3 but if m3 will give m4 then m3 will be m4 broad money will be simple but anyway we m1 K is called narrow money, m3 is called broad money, why is it called so, understand the reason behind it, narrow means less, broad means more, broad means more, now we say so because in the back banks, the most Most of the money lying in the entire economy is lying in the banks as FD and RD money, hence this is the biggest component that comes out, hence it is called broad money or we also know it by the name of monetary aggregate. The problem is not over, now we will study the components of the budget. I was telling that reserve and capital are very important. This is fine, that is, gradually, I do not feel that the class will go at the most to half and a half, it will not go more than this, okay. Okay yes, so whatever we saw here, what are they showing or the liquidity in the economy, okay, in a way, how much money is being circulated, they are showing the liquidity, okay, where, how much liquidity, liquidity. What is liquidity? What is liquidity? So liquidity means liquidity. Liquidity means money in the economy. Money in the economy means cash. Like now we were seeing how RBI was raising the rates up and down using its tools. He was moving up and down. Why is he trying to increase or decrease the liquidity? In a way, we call this the circulation of money. Do we call this liquidity of money? So, it is okay. Liquidity means who is more liquid like m1 is more liquid in comparison to m3 because we can withdraw demand deposits anytime by going to the bank, there are savings deposits, not everyone knows that the money is deposited in ATM. And after getting the money from the ATM, the FD is not done immediately, you have to fill the form for it, all this has to be done, if you go from the bank, then you get the money late, that is, the instrument gets converted into cash late. That instrument gets converted into cash, which means it is less liquid and the one which is liquid quickly, the one which converts quickly into cash will be more liquid and what can be more liquid than cash, right, just like gold is gold, you also get gold. You will have to go to a goldsmith, you will get it, okay, money, gold. Now tell me, which will be more liquid between gold and government security? Okay, one more thing, what are these treasury bills? What are treasury bills? We call them T-bills. If we know by name then T Bills are ours, they are short term government security, they are short term government security, they are issued in three tenors, the meaning of three tenors is that which of the three maturity periods - Which one is 91 days, one is 182 days and one is 364 days, one is issued in 91 days, 182 days and 364 days, that is, short term government security is of less than a year, so if you go to government security, then my brother. Have government security, take it, give us the money. Bo, what is government security? Have you brought gold? If you bring gold, you will get money immediately. Okay, so gold is more liquid. Gold is more liquid as compared to gold because it gets converted into cash quickly. It's done, now coming to the components of the budget, let's take a deep breath and take a sip of water because here you will have to use your brain a little. If you don't know, then read it for the first time, otherwise you will understand. It will come, then it 's okay, this is the last concept of macro economics, only that one demand and supply will be left and after that the fire plan will be over. Lecture components of budget budget which we have read in politics . Tell me quickly in which article, then the budget is ours. Article 112 Mention about the Annual Financial Statement talks about the Annual Financial Statement and in whose name the budget is kept, please tell us in the comments . It is written ' President shall cause to be late before the Houses of Parliament', it is written in full in this manner, it is named after the President, it is tabulated in the Annual Financial Statement which is the financial statement , if we talk about the budget for a financial year. Do one question each, let me ask you, which was the first gender sensitive budget in the country? Gender sensitive budget means where separate allocation of money was made for females. This was in 2005. 6. Keep in mind that this was the first gender. If we move ahead with sensitive budget, then what happens is that what is there in the budget, we have understood it by studying the concept of budget in politics, we will see the one about economics in the budget, it means how much money came in and how much went out. Tell me in the comment which bill. It has to be passed and in which article is it, only after getting it passed, the government can withdraw money from the Consolidated Fund of India, which is given in article number 266. Article 266 is the Consolidated Fund of India which It is a public purse and who do we call its guardian? If we also tell you about it then there is public curse i.e. money comes and goes. All this happens so money comes and goes. It comes in two heads, one is revenue head i.e. revenue revenue and A capital i.e. money comes or goes. Only two things can happen. Incoming is called revenue i.e. income and going out is called expenditure i.e. expenditure. Same thing will happen here too. Capital expenditure gives answers to the right questions. Before moving forward, what did I ask you? Which bill has to be passed? The Act of Appropriate is done by the Public Accounts Committee which has 22 members, 15 from Lok Sabha, 7 from Rajya Sabha. It is okay, Girish Chandra Murmu is there, who also has an external auditor, so this is the thing. Now what do you think, how is that question formed? Here he will give, the government has taken some loan, the government has given the salary, the government has given it to the government employees. He has paid the interest on the loan, in what form will it come, if he asks, then understand where it will go, then the money that comes quickly, comes quickly, goes quickly and the revenue keeps coming and the little comfort sometimes. It comes sometimes and goes, it comes and goes in the capital, okay and the money that comes in revenue, the money that comes in revenue, like let's remove that concept for now, let's look at the concept of sometimes and often, okay What is Revenue Receipt Tax Money Tax Receipt and Non Tax Receipt Tax Money What is Tax So there are two types of taxes Sir there are two types of taxes Direct Tax and Indirect Tax Direct Tax and Indirect Tax So what is the tax we will discuss on this We will pause this, we will pause this, we will give it further, now we will see what happens after covering this, tax etc. in all the details, but the tax money often goes to the government, okay now let's go to income tax, okay sometimes it is going. But indirect tax is always going to GST, GST has to be paid every month, it has to be paid to the government, so filing of GST has to be done every month, so every month it is going to the government, every month it is going to the government, that is fine. What is non -tax money? What is the loan taken by the government? The interest etc. that has been paid will come to you. Now we will see the interest. Your interest will come to this. The interest taken by the government is fine. It will go to the capital because the interest is It is not that it is always taken, it is taken often, it is taken sometimes. Someone might be coming to take interest from you too. Do you go to take a loan from someone, do you stand near him every day? Is the loan taken sometimes? Whatever is taken is in the capital interest because it is taken in the form of loan interest but the interest that will be paid i.e. the interest on the loan will be paid from here or let 's assume that all this money is the toll money. It is a tax, otherwise it is a kind of toll, which is a non-tax, it will be reset, it always goes to the government, now what are the expenses, which goes in revenue, the salary which has to be paid, government employees often have to pay it, right? And the pension which has to be given, has to be given often, not every month, nor because of this, and those who assume that the interest, sorry interest, which we pay here, the interest which we pay, will come here, the interest which we pay will come here. Okay, interest is here, those who take it, those who earn the loan, what we give, if we give loan to someone then it comes under capital expenditure, taking loan, capital receiver, capital expenditure. Now if we are taking interest, then it means that we must have given loan to someone . You are getting interest on your salary. Brother, REST means income. What did I say by mistake that they are giving? Bhai, REST means they will be getting income and on what will they take interest, on the loan they have given, they will also pay interest on it. Beyond loan, if you have taken a loan, then it is okay, then it is okay to take the loan, pay its interest in the capital and taking interest and giving it will be in the revenue, it is okay and the grant which will be grant, the meaning of grant is to give the money in charity. Who established the crazy charity? Please tell in the comments that we will do static GK of history tomorrow and a day after that we will have a lecture of history only. Okay, so Diwan Khairat and Diwane Bandaga were established by Firoz Shah Tughlaq, which means that you have given the money and you will not take interest in it. You are expecting that money is not going to come back. You have given it for free like a grant like the Central Government has given to any state that brother, if there are floods in Kerala too, then if there are floods then they will have to bear it. Take it, take the grant from us, okay then it will be included in yours, loan etc. comes under capital , giving loan to someone or repaying the loan, which is called repayment of loan, one has to be given and the other is the loan which is given first. You had taken it, repay it, you are also giving it, you are not giving it always, interest is always given every month, but the loan is given only once, because if it is being given, then it is an expenditure, that is capital expenditure. Expenditures are of developmental nature. Expenditures are of developmental nature, like we have built some infrastructure, we have set up infrastructure, like we have built government schools, we have built roads, we have built bridges, so what is this, if toll etc. is collected from it, then it is becoming an asset for the government. Yes, capital is being made. Okay, so the expenditure incurred in the developmental work, like Nitin Gadkari is building a road, is a lot of capital expenditure capex. Let's say right, apart from loan in capital resort, is there disinvestment in it? Disinvestment means disinvestment. Government had stake in a PSU, a public sector undertaking was in its name, it sold it to a private person. If you get the money, only then you get that capital. Under Rishi it is written that the money has come but you have lost your asset. You notice that I am saying asset to asset here again and again. Yes, capital, what happens in it? In expenditure, your asset is created, and liability is created. It reduces, either the asset will be created or the liability will be reduced, like you have created an asset, you have reduced your liability by repaying the loan, here you have either sold the asset for yourself or created a liability, you have sold the asset for yourself. You have created a liability by disinvestment and taking a loan. Keep paying interest on it. Beyond that, keep paying interest. I understood this. There is no difference between asset and loan. There is no difference between asset and liability. The revenue person understood this. If this and this did not come, then I cannot explain it in simpler words than this. Okay, so let's move ahead. Now look at this, immediately I understood that he was a 2.8 student, then I immediately saw that he was a 2.6 student because this does not make sense, but this is not understandable. That when you know that you have come here to study for the paper, when you know that questions will come from it, then read it instead, why do you try to run away, brother, running away will be as difficult as closing the eyes of a pigeon. It is not true that the cat will not eat it but many people still think that if things are simple then it is fun to read but the question comes from here but only the one who will stand till the last will be made. Well now on tax. There are two types of taxes, direct and indirect. What are direct taxes? Direct taxes are directly paid to the government and those indirectly paid to the government cannot be transferred, that is, the tax is levied on you only and you have to pay the one who is liable. For that only he will have to pay. It cannot be transferred. It cannot be transferred. It can be transferred. Just like the government imposes GST, its example is Goods and Services Tax, just like GST has become Customs duty which is imposed on import and export. Suppose the duty that is levied on the production of things is imposed by the government, like on tobacco etc., there is excise on it, GST is also levied on it, okay, in tobacco etc., there is tax back and these are indirect taxes on its products. So now the government is imposing GST. Let's assume that teachers are charged Rs. 18, but let's say I am teaching you, so if I am giving you a course, for example, it is any course, it is okay if it is worth Rs. 000. So ₹ 10 will be from the government, that's fine, so now if I want, I can shift that ₹ 10 to you and make the price of that course ₹ 1100 80. Now it is an obvious thing that ₹ 1180 will be charged at 18. If it is not Rs 180 but it will be increased, then whatever component comes, I can transfer it to you, but the direct transfer has to be paid to the same person. Just like you, accept that whatever is my salary, now I have paid it, I had to do the job. Now after paying this and after deducting whatever expenses I consider, whatever is left in my account, now I will have to pay direct tax on this, which I have done just a few days ago, so it is called direct tax. They will pay direct tax after turning 18, but you will have to pay this, you cannot transfer it, for example, your income tax is called wealth tax, your gift tax is done, it is corporate tax. Gone are the corporate taxes that businesses pay, so all these things happen, now the wealth tax and gift tax, we also know them as paper tax, it is important, it does not have any specific meaning, that is why we call it paper tax. This is because in earlier times, it was filed through papers, that is why direct tax is of progressive nature. Progressive means that as your income increases, your rate of income tax will also increase. Is n't it progressive in nature that if you earn ₹ lakh now, you will have to pay less tax, if you earn more, if you earn 10 lakh, the higher you go, the higher you go in the slab, the higher the rate increases, what is there in indirect tax, it is of proportional nature . It's okay, it's proportional in nature. Sometimes we also call it regressive, that is, the same is imposed on everyone, no matter what your income is, whether you earn Rs. 0000 per month or whether you earn ₹ crore per month, the indirect tax on you will be the same. Whatever you assume is pizza. It's okay to go to eat, whatever goods you buy, there will be GST on it, you too will have to pay the same GST, just like Ambani and Adani have to pay, we will have to pay the same amount, whereas our and their income is nothing but heaven in the sky. But we will pay the same amount on GST. If ₹ 1 GST is levied, then that too is Rs 100 and we are also Rs 100, but this does not happen in direct tax. There are slabs in the tax, as your income increases, your slab goes up. If they go to the government then their rate will increase, like first on 5 days, then on 10 days, then on 15, then on 20. In this way, what is surcharge? Surcharge is tax on tax. This is a direct tax when you pay it to those who have very high income, high net worth individuals. There are charges beyond those taxes, it is called surcharge, what is cess, not everyone has to pay it, everyone has to pay it, you mean, sorry, I said it on the contrary, everyone has to pay cess, not everyone has to pay it. There is a surcharge on the one who has more income. Everyone has to pay this surcharge cess. This is imposed for a particular thing like for example they will say that they are taking environmental cess. The government will say like if you pay income tax then when you pay it. When you get your salary salary, you will see that the government takes some cess there, that is, we are taking cess for this purpose, for women empowerment or if it is okay in this way, then it is called cess, which is a progressive tax. What is the direct tax, what is the marginal tax rate, what is the marginal tax, what is the marginal tax rate, it is greater than the average tax rate, many people do not understand this, let me explain to you, assume that my income is ₹ lakh Well, this government has said that no tax has to be paid for income between zero to 5 lakh, then interest rate has to be paid at ₹ 5 lakh for income from 5 lakh to 7 lakh, then those who have income from 7 lakh to 10 lakh. They have to pay tax on Rs 10, it is okay and those who accept it, it is okay, that is why it is called progressive, because your income keeps increasing, it is not that if you assume that my income is Rs 7 lakh, then I will pay full tax on Rs 7 lakh. If someone who has 6 lakhs to pay on 10, will have to pay on 5, this does not happen, it happens in income that brother, if I earn up to 5 lakhs, I earn 7 lakhs or I earn 10 lakhs, if I earn 8 lakhs, then my zero goes to 5 lakhs. There will be no tax at all on rupees worth Rs. 5 lakh, whether it is you or me, whether it is Ambani or Adani. There will be no tax on rupees up to Rs. 5 lakh . OK at 10, now suppose my income has become 8 lakhs, was it 7 lakhs now or was it 6 lakhs, ok, when it was 6 lakhs, I was paying at 5. I am fine at 5, it seemed like a simple thing, now my income should be 8 lakhs. This rate has gone up to 10 i.e. by how much margin has my income increased? I have increased it by 2 lakh margin and the tax rate has increased from 5. My average was 5, the average is at 5 but the extra income. Because of this, extra tax has to be paid, it is called marginal tax, so it is 10, which will always be more than my average, if you have understood about direct tax, then it is not right, rote memorization, long live micro economic, now a small concept of micro economic. It is demand and supply. Understand this. What is demand and supply ? So demand and supply is a very easy concept to understand. Tell me how to give this quiz and when to give it. Son, to give the quiz, you have to bring a red thread. You have to tie a little camphor in it from the market. The cloth should be of yellow cloth. It is okay and tie it in your hand. You have to wake up in the morning at 3:4 in the Brahma mahurat and after you wake up, you have to search first on your mobile and then Which is Parmar? You have to search for such GK Quiz Group Parmar and attempt the quiz. This is the complete method to attempt it. If not, then read it as soon as you understand here. Aditya will teach you. Don't worry so that you can get the most out of it. If you are fond of it, will you teach it? Now let's move ahead. Nice session from Manipur. Okay, you are studying from Manipur. Now let's come to demand and supply. So, what is this? In this, we have to read the curves. Demand curve and supply curve for this. Here we track two things: price and here we keep Quantity Demanded is okay, this means I am telling you sir, there is a concept of Micro Economics and in this we have to read the curves that how much people will demand for a thing and if we increase or decrease the prices of things then it is okay then it is Quantity Demanded. Okay, this is the quantity demanded. Now you tell me, like we take our evergreen example of tomato, the price of tomato is 0 kg, okay and this is you buy one kg tomato, buy two kg, buy three, buy four, buy five. Yes , okay, let's assume that this is our complete table. I have plotted the quantity demanded on the If the price of tomato is increased to ₹ per kg, then what will I do? I will reduce my income a little. I am calling it income, I will reduce the quantity demanded, then I will increase the price further to Rs. 30, then I will demand a little more. Because the price is increasing, the price has become 0, so I will buy only two kilos, now it has become 50, so I will buy only one kilo, so what is the meaning, whatever is happening, a curve will be formed i.e. price and quantity. There is an inverse relationship in the demand, that is why it becomes a negative sloping curve. The demand curve is a negative sloping curve. There is an inverse relationship. Price and quantity demanded are exactly the second one. We take the second one and this is called the supply curve. Right here. But also we will write the price and here we will write the quantity supplied, quantity supplied, who supplies, the producer who produces, the one who is producing the tomato, here also we write the same, now the price of tomato is ₹ per kg, then ₹ 20. Then there is 30, then there is 40, then there is 50. Okay, so what is our price of tomato and the quantity demanded? One, two, three, four and five. Clear. This may seem a bit story type but it is a bit important to understand and very obvious. You must be feeling the same thing, friend, what is the big thing in it, only we know it, you know it, that is why we are telling you in this way, so now look, this quantity is supplied, if we assume that the price in the market is ₹ 10. It is ₹ 10 kg for tomatoes, so the producer who is going to produce will want to produce minimum because he will not get a good price, you will see that the price is getting good in the market, produce more and do more and do more i.e. when ₹ per kg. If he is getting it then he will think that if he produces more and more, he will get maximum profit, that is, there is a direct relation between the price and quantity supplied, that is, it forms a positive sloping curve, but things exist at our equilibrium so that So, it is not possible that the price will be Rs per kg and even if there is production of 5 kg, the price will remain at Rs 50. It is obvious that if you produce more then the price will automatically fall gradually, that is, things are as they are. But where demand and supply match, we call that point equilibrium. This price may be some ₹ or 0 and may reach such ₹ per kg that it reaches the point of equilibrium. Okay, this is called point of equilibrium. Now we will read what is movement and shift. What is movement and what is shift in these curves, so movement is very easy. Movement means that when you increase or decrease the price, okay. When you change the price, okay, you change the price, like for example, what I did here is I increased the price, when I increased the price, I increased it from 10 to 20, from 20 to 30, what will happen if the demand comes down. It has started, as soon as you understand yourself, sorry, the demand starts going up, as the price increases, like if it goes from 10 to 20, then what is the demand, what is this, the shift started moving upwards, I increased the price, the demand is higher. What is this? Demand moves upward when the price increases and what happens when the price decreases. What is the demand? When the price decreases then the demand is also called movement. Movement occurs then. When you change the price, shift happens when you change any factor other than the price. Apart from the price, here now, this thing that I told you is true only when I will keep people's income constant. I will keep people's income constant. Now imagine that I have kept the income constant. I have not kept it, I have doubled the price and a person's income has also doubled, so even though I have increased the price, the economy of tomatoes has increased but there is no change in his demand because his income has also increased in the same proportion. That's why they may start demanding more for tomatoes. There you have to keep the income constant, so if you change any factor other than the price, due to which the demand increases or decreases, then it We say shift in curve when demand decreases or demand increases. It is called shift. When demand decreases, the demand curve shifts leftward or invert. What is the shift like when demand decreases ? Leftward or invert. And when demand increases, this shift will be either right word or out word. For example, if two competitive goods are competitive goods, that is, one of its substitutes is available, then assume that its price is increasing. This is what a competitive good means. Let us assume that this is the ketchup of Company A and this is the ketchup of Company B. Now if we assume that Company A has increased the price of its ketchup, then if we see its demand then its demand will increase, meaning it will increase. Right word will shift. Out word will shift. Even though it has not made any changes in its price, still why did it increase because its substitute increased its price? Vice versa is also true. If it reduces its price then its demand will remain the same. You will be reduced when it has not done anything but still we are one. Our compliant material good means those who complement each other. For example mobile and charger, the sale of mobile is increasing a lot. Sir, the demand for charger has increased while the charger. Why is it lying there because mobile sales are increasing, both are compliant unemployment i.e. types of unemployment and no one will cry brother , we can again take the example of Tatar bread and butter , if bread and butter is compliant then the price of bread will increase. So the demand for butter will reduce, because now people are not buying bread to put it in butter, then the demand for butter will reduce, right? Car and petrol, Priyanka gave the example. This example was expected from the boys, but the boys are stupid type. These days it has happened or else the exam is not coming. Please give an exam from your side. Brother, let us also tell you about the case of Gif N Goods and Webble Goods. We did not get that many questions from it but still here. We remove it and take Giffin and Webble. These are such goods which do not make any difference even if the price is increased, even the demand keeps increasing. It is okay, that is, the demand is not decreasing even after increasing the price. And web goods like MacBook which is a bag of Vuitton, so what are these, all these are status symbols, so what are these, which are our very expensive expensive products which denote status status symbols, so expensive as Now we will keep that for Louis Vuitton also, a complete survey etc. was conducted. Whenever you talk about it, it was found that I do not remember the exact figures but you can believe that if the thing is being produced. If they are making one bag in 000, the braided ones or whatever, which company is this, whatever it is, okay, it is like Louis Vuitton, it has become Gucci, yes, so accept all this, their production of 5000 is coming. The labor is available to everyone while the labor is being made to work in very dirty conditions. How much are they selling for Rs 4000-5000? Are they able to sell a batch bag of Rs 1 lakh, Rs 2 lakh, Rs 5 lakh, Rs 5000 for Rs 1 lakh? Why are they able to sell because of this? Are Weable and Good Demand? The more you increase the price, the more it will seem to people. Look, we have a bag worth Rs 1 lakh, we have a mobile worth Rs 1 lakh, no matter how much value is being added to life, why not, this is why I I can take it but I don't have an IFO because many people advised me why don't I take it, I said why take it, tell me the reason, first give me the reason why should I take it, will such value addition be significant that I brother, I The price given is fine considering that I have a mobile worth Rs 15-20, if I spend Rs 1 lakh then what will be the validation for it. Tell me the reason. If it suits me then I will take it but there is no reason because it is a status symbol. Right now like MacBook I have got this because after a long time, because in that old laptop, you see that when I used to write, glitches started appearing in it. I used to write and after some time I used to write, it is there, because now gradually it Depreciation had taken place, its value had fallen. Okay, so that's enough. I thought, three-four years old, four years old laptop. Three-four years old laptop had become three-four years old, so I thought, brother, this is my work, so by the way, someone like this is permanent. Then someone told that take all the pain and sorrow from it, it is long lasting forever, you will not have to change it again and again, so I bought the laptop because I found the logic correct but not everyone operates on logic, so the same thing works here. Weblin goods become 'Gif N Goods'. What are our goods of necessity like wheat etc., we will eat them, it is okay if we do not avoid them, then when the prices of those things also increase, the more they are consumed. If it doesn't happen, then here the demand and curve that is there fails. Now coming to the types of unemployment, here is your primer. There are five types of unemployment. Unemployment is structural, that is, it is called structural unemployment. It is called frictional unemployment, it is called disguised unemployment, it is called cyclical unemployment and it is called educated unemployment. Well, structural unemployment occurs when there is a skill gap. Skill gap means that the skills are in demand in the market. You don't have that skill, that's why you are unemployed. She wants you to know how to use a computer well. You know about AI, but you don't know that, that's why you are unemployed. Frictional is what we call voluntary voluntary. Unemployment or search unemployment is also known as unemployment. If you are unemployed automatically, it means that you have employment. You can take employment if you want, but you are not taking it. It may be for better prospects or you may switch jobs. You are doing as if you are in a job right now. Suppose, there are many people among you who have passed CGL 2023. I know those who are preparing here, have taken jobs through CGL 2, so those people have taken the job. What did he do? He took the exam, now it is his, suppose he got a good post, then when he switches from one job to another, then in the middle time, if he is unemployed, then he will be frictionally unemployed or you have resigned from one job. Gave temporary leave, took it, so that now after appearing for SSC, you want to give UPSC, give temporary leave, so at that time, when you are unemployed, it is called frictional unemployment. Okay, so you understood the meaning of voluntary or search. And the terms and keywords that you will see there, I am writing them here. Okay, so as asked, if there is technological development then what kind of unemployment will occur because of it, then it will be structural because there has been technological development and Have you not learned that disguised is called disguised unemployment? We can see this clearly in the agriculture sector of India. There are 10 people engaged in some fields but 10 people do not have work. Actually, it is fine. Later we come to know that brother. If four out of 10 leave, then it is okay, let us assume that four have left, six are engaged and are producing as much as the first 10 did, meaning the marginal productivity of all four may be zero. One of them may become two more. If you remove him and give the same amount of production, then he is disguised, he is there but it is not visible, if he is unemployed, but it is not visible, then people are busy with spades and hoes, but in reality he is unemployed, he is disguised. Question: Marginal productivity of workers is zero. It is okay in agriculture. Cyclical, when you have recession etc., when there is a down turn in the economy. Sometimes it happens like it happened at the time of Covid that it spread across the world. Everyone loses their job, then everyone's job comes back, then something like this, in eight-five-six years or seven-eight years, there is an economic down turn in the entire economic world and what happens with that is that if everyone's job is lost, then there is a cycle. There is one type of it, it is called 'like', there are all types of it, which we call seasonal unemployment. This is also seen in India's rural areas, especially in agriculture, that there is employment in one season, just like during monsoon. So now is the time for sowing. We are doing it, we will put it in, what will we do after that, this is seasonal unemployment, so we also see this in agriculture and we see this in the rural sector of India and if we talk about educated, then this is the urban sector of India, meaning urban urbanized. In the areas where there are, it is seen that people are educated, they have degrees, people have degree but there is no employment, it is okay, despite having degree, they are unemployed, that is called as educated unemployment, different curves are also found, we are educated. Let's take it, does anyone have any doubt up to this point? Yes, yes, tell me when did the Great Recession come, when did the Great Recession come, in which year did it come, tell me quickly, we are in the year 2000, keep this in mind. Sometimes the question is asked in this way that at the time of which five year plan did it come, now if we do a five year plan then we will see that it came between 2007 and 9 and at the time of 2008 there are different curves, we read Lafferts Curve. What happens every second, this is a curve which tells us that if the government increases its tax rates, it will increase, it will increase, and one thing I told you is that tax is big in fiscal policy and not tax is fiscal policy if money supply in the economy. If you want to reduce the tax, then what should you do with the tax? Do you increase the tax? If you want to reduce the money supply in the economy, then if MSP is our minimum support price, let me tell you further, let us support the minimum support price, that too a fiscal. Policy is a tool. Well, if you leave the tax, you increase the tax rate. If you increase the tax rate, then your collection will also increase. You are increasing the tax rate. The collection is increasing, which means more money is coming, but one thing. After this point, when you will increase the tax more, then people will not be stupid that brother, if you have to give all the money, then why are they earning by earning the government, or will they operate in parallel economy, which we call black economy, then your The collection will start decreasing. This bell shaped curve is formed. What does it tell us about the tax rate and its collection? If we talk about the tax rate and collection Lawrence Curve, then we will call it inequality curve. You know, okay, there is an inequality curve and this curve is like this. Okay, this is called the line of equality. The more you are below this, the more the country will be equal to the curve. To measure the curve, we call Gini efficient. Let's use Gini efficient. Let's use Gini efficient. If the value of Gini efficient is zero then it means perfect equality and if its value is one then it means perfect equality. Okay, what is Phillips curve? So what is Phillips curve? What happens is that Phillips ji says that when there is inflation, when there is inflation, unemployment will be less. Are you guys sleeping? Tell me one thing, is it okay? Now tell me why I said it is okay, if inflation is high then unemployment will happen. If inflation is low then unemployment will be low, did Phillips ji say or not that an inverse relation will be formed in these, that is, such a curve will be formed, a downward sloping inverse curve relationship is there, but this is the situation, this situation is stagnant. It fails in a condition like inflation. Stagflation means where the economy stagnates, that is, it is stagnant. Inflation is also suppressed in it. It is a very bad situation for the economy. The economy is stagnant and Inflation is also very strong in that, okay, so you have to keep this thing in mind, there is a situation by trapping liquidity, that too we will see further, it is different, it is in the situation of stagflation, Phillips curve fails where inflation is also suppressed . And unemployment also happens by suppressing, Phillips curve fails in stack inflation, I asked you are you sleeping because none of you told me that Sir, you have not taught deficit here, now I remembered, I am here . But come on, it's okay, there are so many people out of these, there are more people than ever. No one understood that I missed inflation here , why might it be that even if people had told us, we would have read the deficit here. Now we will understand the deficit and that one curve is left for us, but first we will understand the deficit. What is deficit? Deficit means deficit. When your income is less than your expenditure, it is called deficit. over here We are reading all this budget, budget deficit is right, first of all we have budget deficit, so what is budget deficit, then the meaning of budget deficit is whatever is your capital expenditure, because there is deficit, it means your expenditure is more, sir, right capital. Expenditure is done, revenue is expenditure is done, then you will add them, minus your capital resitor, give venue resitor, this will come. Your budget deficit is fine, but what happens is that it is never seen in deficit, it always comes to zero. It is the government's because whatever the deficit is, the government incurs a loss, it takes a loan of that much, then a separate deficit was calculated which we called fiscal deficit. What is fiscal deficit? It happens that you total expenditure, this is total expenditure itself, total expenditure minus total restomekudai lading Borong means remove Borong from here, either write total rest excluding Borong or write it as minus Borong and represent it like this . Sir, there are different ways, what is the meaning of Borong, what is the meaning of Boeing, the capital receipt you are writing, in this you have taken a loan and that is Borong in your actual, it is visible in the rest but if you remove it then it will be like this. It can also be written as Total Expenditure Minus Revenue Receipt Minus Revenue Receipt Minus Non Debt Creating Capital Receipt Capital Receipt There are two types of Capital Receipt, we saw that one is you took a loan and one is by disinvestment. In disinvestment you have to Interest is not to be repaid, neither is the loan, that money is to be repaid, but the loan amount has to be repaid, neither is debt creating capital rest, nor will you have to remove it, you only have that fiscal deficit, it asks you who shows it to Boro Ings, then cap which is fiscal deficit. The treasury deficit is the same which shows the borrowings of the government. Look at the amount of purchases made by the government. The amount that is coming in negative means whatever deficit is coming, it is the borrowings of the government. Okay, now one thing happens, look at one. Sir, there is also revenue deficit, that is the most basic, okay revenue, I will write it as revenue last, now understand what is primary deficit, okay primary means primary deficit, primary deficit means where you have fiscal deficit. That is, reduce the interest payment in the treasury deficit because if there is a government at present then it will say that the Congress government had taken the money, we are increasing its interest, so please remove it, do not show our deficit as a deficit, it is okay with it because it is through it. The loan was taken and we are still paying the interest from it. So after removing that interest payment, we get primary primary deficit. What is Revenue Deficit? What is Revenue Deficit? So, Revenue Deficit is where you divide Revenue Expenditure i.e. Revenue Deficit into Revenue. Rest i.e. revenue is deducted from capital, it is called revenue deficit. Simply, this is the most basic. Okay, let's come to this curve which is the last average fixed revenue curve. First of all, this curve is the curve of average fixed cost. This is a hyperbola. Hyperbola meaning is explained now. Average Fixed Curve Average Fixed Cost. I am writing this with FC. Okay, its formula is Total Fixed Cost Upon Number of Units Produced Number of Units Produced. Look, let me know if I took land somewhere okay. I have taken all this land and am paying rent on it. It is okay if I am making 10 samosas. It is okay and then instead of 10, I am making one samosa. Or I told you then one. Make the samosas and bring them. I said make 10 samosas and bring them or I said make 100 samosas and bring them. The cost will be higher for one samosa which you made for the first time or out of 100 you made. The cost of one of these will be less. Understand that it is a factory where samosas are being made. What does a factory mean? What does it mean that it is a shop where samosas are being made? The rent of the shop is Rs 0000. Got it, the rent is Rs 00. That means its total fixed cost of the month is fixed. Sir, it will cost you Rs. 10000. Whether you make one samosa in that shop or make Hajj samosas, it is not Rs. 10000. If you have to pay the rent, then you have to pay it. Now I am making 10 samosas, so one It's okay for samosas, I am making 10 samosas, so is it okay or if 10 is too less, I am making Hajj samosas, okay now I am making Hajj samosas. Meaning, how much does the cost of one samosa come? Sir, if I take another case, the fixed cost will remain the same only in the name of the fixed cost. Now I am making 2000 samosas. Sir, the cost of one samosa is ₹. Now I am making 5000 samosas. Cost of one samosa. Now Sir, I am making 10000 samosas, the cost will be Rs. Don't ever say by mistake that Sir, increase more and increase and increase it, reduce it to zero, it will never become zero, why because total, because when will this thing become zero, when this numeration. There will be zero. You must have understood this basic thing and this is 10000, it is zero, it cannot be there sometimes, it can never be zero, that is why the curve that is formed is like a hyperbola which seems to be touching. It seems to be happening but it is not happening. It seems as if the sky is touching the horizon. It is happening to the ground. We just move forward. It seems to be happening but it is not happening. This is hyperbola. Cough, understand. The talk I came to was of a slightly higher level, we will read the different types of markets. Okay, we will read the different types of markets, we are here sir, I want one, Supriyo, why do we want to feed Mamta Didi, Supriyo, Bengal in Bengal, what is going on, friend, you guys. How are you tolerating, why are you this stupid fat man, can you tell? Well, fat man, looking at the samosa, seeing the samosa, ji Parmar, the samosa seller, special GK content stuffing, why are there many people here from Bengal, not many people from Bengal, you will get free plastic money, you will get all the money done now. Don't worry, plastic and paper, all yes friend, I don't know what is going on, Angel Tax Gopi Moram Pudi is asking Angel Tax, Angel Tax is that tax, I had also made a reel on this, Angel Tax is that tax and you will get a reel today. It will be seen as soon as the lecture is over that there is lateral entry of UPSC which was canceled by the government yesterday. Angel tax is the tax that is given to startups. Well, it was levied earlier and it was abolished in the budget of 2024. Angel tax has been abolished in the budget presented in 2017. This tax is given by high net worth individuals to the startups. Okay, now there are different types of market, so what are our different types of market, so before that let us understand. What is the water system ? It's 11:30, no one, let's finish it in just half an hour. What is the water system ? What is the water system? Like the water system is the system where no currency works. It's your stuff, our stuff is in our work, our stuff is your work , meaning like you have wheat, it's okay , I have rice, it's okay, let's say you want wheat, it's okay and I, you want rice and I want wheat, so What we will do is exchange among ourselves, this is called Bata system but there are negatives in it, this is the negative in this, it is okay in this, the negatives in this are that it requires double coincidence of want. Double coincidence of want means that whatever you want It's close, give me a break of one minute, brother, take a break of one minute, don't wake up, it's okay right now, why do you need a break, do the elastic, we will see everything, don't worry brother, double coincidence of wants, coincidence of wants , that is, if you don't have what I want, you What is the use of me or what you want, if I don't have it then I don't know what is the use of you. Why are you laughing? So this is called double coincidence of two. Okay, negatives are okay and what is another negative that here is wealth. Cannot be carried Okay, Wealth cannot be carried Cannot be carried Now for example, suppose I have wheat, I have a lot of wheat, then I have a lot of rice, so I have rice, okay, it is a perishable item, it rots in some time. The wheat will rot, it is not that I can transfer it to my future descendants, it is okay but if money can be transferred then wealth cannot be carried away and double coincidence of wants is required here otherwise a system. Doesn't work, okay, now we read different types of market, we will also see different types of money, then we will say monopoly, oligopoly, monopolistic competition and perfect competition, this is ok in Hindi, meaning sorry in English, what will we say in Hindi, we will call this in Hindi, monopoly, this We will call it oligopoly, we will call it perfect competition and we will call it monopoly competition, it means monopolistic competition, in monopoly there is one buyer and multiple sellers, ok. There are multiple sellers, there is a buyer and multiple sellers, there is an entry barrier, okay, there is an entry barrier, not everyone can come, for example, there is a railway in India, okay, so what is there in the railway that Indian Only the government operates it, so it is an entry barrier, not everyone can come, there is a buyer and there are many buyers, there is an entry barrier and this is the price decider. Even if some people assume that it will increase the price, still you You will not be able to do anything, you will have to go to him only because he is the only seller. Sorry, what am I writing wrong? What have I written wrong? Think, when did one buyer start becoming one? It started happening that one buyer would be a lot of sellers. So he will become a king, he will become a king, brother, the one who sells, bring a chair for the brother, quickly give water to the brother, one multiple buyers, right here, in oligopoly, there are few sellers and the buyers will always be multiple, right. Multiple Buyers There are many buyers, there is no entry barrier but yes there is not a complete pure entry barrier but there is difficulty in entering, it is not as much as monopoly but yes there are only a few sellers, there are some sellers like for example the laptop market. Is it okay or is it telecom? Our telecom is like we say products and monopolistic, is there a market for monopoly tables ? Okay, there are many sellers. Okay, will there be many sellers here too? There will be many sellers here and many. There will be buyers in perfect competition, the same thing works, okay, there are many sellers and many buyers, but in comparison with monopolistic competition, there will be very many sellers. In perfect competition, what is there in the toothpaste market that brother, if it means everyone is selling toothpaste only. But someone will say that there is salt in our toothpaste, neem leaves have been added in our toothpaste, someone will say that coal has been added, okay, so all such things are said, things are similar but if there is no salt, then it becomes toothpaste etc. Okay, so you have understood, one seller in monopoly, multiple buyer, entry barrier, all these things, now we will read what is price elasticity, concept of elasticity, if you are able to see the diagram here, then assume that this finger has been drawn. Okay, so let's assume that this is the finger of demand or this is the finger of price. Okay, this is the finger of price. This is the price part from here to here. Okay, so instead of that, let's accept this demand. There is a section of demand section, so how much did I change in the price, how much did the demand change as a result, this is called price elasticity, i.e. the percentage of percentage change in quantity demanded in quantity demanded upon, percentage change in price i.e. price. How much change did you make in me, how much response did you get in response to the demand, if you don't understand then consider it like this: I slapped you once, you had no response, I slapped the second person, he had a little response, he said something, then I slapped the third person. He started crying immediately, we hit the fourth one, he started crying profusely, the fourth one showed the maximum response i.e. his elasticity was the highest and the first one showed the least response, his elasticity was less, it is understandable, how much did you pull this string. What is the concept of elasticity? Four curves are formed. One is that no matter what you do, no matter what you do, no matter what the price changes, it is okay, no matter what the price. You may change anything, the demand that does not change will remain the same. Give examples of such goods. Give examples of such goods from the market like such as such as such. Tell me which market is there out of the four markets that I have studied. Tell me quickly if it will fit and one thing happens that you did not change the price even a little and the demand went away. You changed the price too much and the demand went away. Okay, as if this will be your monopoly type of market, what is there in monopoly? You increase the price, you don't have the option, now the Railways says, instead of Rs 1000, you will take Rs 2000, you will go through someone else's railway, the Railways is only of the Central Government, so there will be no change in your demand, the same demand will remain, this is called but. The fact that elasticity is not changing, no matter how much you are beating it. Which ones are not showing any change in response? This is perfect elasticity. Perfect elasticity, as if this is your market with perfect competition. If we talk about the example of perfect competition, then for example, the market of agriculture will become perfect competition. If you want an example of what I had written for you, then you can note down the agriculture that works in the market, that brother, there are tomato sellers, 10 tomato sellers have set up a rally in the market, as soon as one of them increases the number of rupees, everyone will run away from there. We will go somewhere else and take the price, the price changed a little, the demand ran away, perfect elasticity, third, third and fourth, you must be able to understand that the price changed as much as it is, hey friend, when white said, let's go white, friend, okay, so what we did here is this, the price is okay. And this is the demand, so the price, what did we do, did we change the price a little, did we change it a little, but how much has the demand become, see where it has reached from where, the demand was earlier standing here, today the demand is here, how much difference is there? There has been such a small difference in the price. Look, this much difference in the price is called relative elasticity, that is, according to which the price was increased, more elasticity was seen. Relative elastic is called relatively elastic. Second, lastly, you must have understood that there was a lot of change in the price . But you can see that there has been a slight change in the demand. You see, the demand was here, the demand has just reached here, but the huge change in the price is called relative in elastic. Relative in elastic means when the price changes a lot. People change the demand i.e. oligopoly because the options are less, now you have taken the j wall, jio1 also increased it a little, but when the daughter-in-law will not agree to increase it, you will think that now the competition is different, you want. Keep Neem in it, you can put coal in it, but brother, after rising in the mouth, only the foaming leaves it, everything is fine, it should taste sweet, it should feel cold and the foaming should be stopped, only the end is fine, otherwise then the powder of coal may get stuck in the gut, that was not there earlier. Who did that, it did not come in a metal box, it came in a steel type box, put it in your hand and took it in the very first finger and started rubbing it, it came in two types, one was Colgate white. One used to come and one used to come, which was the one your grandmother used to make, which one was the red one, isn't it, the red one, red teeth, they used to call it brother, how strong it was, brother, it is absolutely fine, speculative demand for money, you all understand till now. Come on brother, let's come to Speculative Demand for Money. Come on, yes, speculative demand means speculative market. This concept was put forward by John Maynard Keynes. He had said that man is his speculative nature and his work is his speculative nature. What happens to a person that as soon as he feels that the interest rates have become very low in the market, I remember on this, I had put a small screenshot and an audio on it, just a few days ago, five days ago, remember on Telegram, I understood. Yes, I have explained it to you, but let me explain it to you again here. Okay, when the interest rates go down, people think, why give money to someone, then why not give it to someone on loan, because the interest rates on money are very high. If the going is low then it is better to keep the money with yourself. Keep the money with you, that is, in such a case, speculative demand for money will be high. Don't understand anything, just understand that speculative demand for money means that people are How much money are they keeping with them? If they are keeping more then speculative demand is more. If they are keeping less then speculative demand is less. When interest rates are low then they keep more. If you tell me why they keep it then speculative demand will be higher and interest rate will be higher. If there is less then speculative demand will reduce. Simple vice versa. What is the situation of liquidity trap? Liquidity trap is that situation when your income is fine, when your income is fine, no matter how much you change the interest rate, it is fine when your income is fine. No matter how much money is changed, people are not withdrawing their money. Liquidity has become trapped. Liquidity means money. It is fine. What does liquidity mean? Money means cash. When interest rates are low or interest rates are also made high. Still people prefer to keep the money with themselves, it is called liquidity trap. Now whoever writes there and asks you, you will tell them. Liquidity trap means that the people are preferring. Okay, we are saving more or the meaning is the same, you are spending more than spending, that is, you are not spending more than spending . Okay, so here you have to pay very careful attention, elasticity etc. are also seen. Okay, here you assume that you Perfect type elasticity can be seen in which situation of liquidity trap? Clear speculative demand. Who gave it? What happens? Have you understood? What is nominal propensity to consume? This is percentage change. I am writing this in MPC in short . How much is percentage change in consumption? Your income has changed from Rs 20000 to Rs 40000. Did you spend Rs. 10000 today? That is MPC. If we denote MPC by C, then the formula that comes out for Government Expenditure is 1/1 - c Clear this much, this is the marginal propensity to consume or if I ask you here that the money multiplier which I taught you is 1 apn s r, its formula is also the same, okay c What is the marginal propensity to consume here? To consume is so clear, now let us understand the different types of money, like if you understand the butter system, then no currency was working in butter, like how the people of Harappa were living in the butter system, haven't you seen the movie Harappa and Mohij Daro? There will be no take this and give that. It works like this. There should be double coincidence of want. There, currency has been developed. Now currency can be of three types. Fit money. What is fit money? It is a kind of legal tender. It is a legal tender which means that this is this currency and this money is backed by the government. It is written in the note that I promise to pay so many rupees to the bearer, I promise, is it okay or is it because of the government of RBI? They are signed that if someone refuses to accept it, it is illegal. If someone refuses to accept it, then whatever our currency notes are in circulation, whatever coins are in circulation, it is fiduciary money . If there is a check and I accept to take the cheque, I will refuse, then you are not like that, this is illegal, okay fiduciaria, which are our debit cards and credit cards, okay debit and credit cards, we call them plastic. Money Okay, now let's come to the concept of marginal utility. It is a very simple concept. It is called marginal utility in Hindi. Marginal utility in Hindi means how much satisfaction you got from the extra unit you put in. It is called what extra unit you put in. Whatever of yours, for example, the example of roti which is given most commonly, you have eaten roti as if you are very hungry. Okay, suppose you are very hungry right now, you will eat the first roti, will you enjoy it ? You will enjoy it in the second one, you will not enjoy it as much as you did in the first one, in the third one you will enjoy less and in the fourth one, that is, your marginal utility will keep decreasing. Every unit of consumption can also be a thing, like you did in the first time. You must have enjoyed it a lot when you watched it for the second time and even less so for the third time. What are the videos which are study videos ? When you watched them for the first time you must have learned something. Oh man, it was fun, it means studies can be done like this also. You can study like this, you must have enjoyed it, then now it has become normal, one should watch the study videos carefully, one should develop interest in them and watch them. Okay, so the concept of marginal utility is simple. Now we come last. Concept P Before our five year plan and after this, your lecture is over. After the five year plan and that is balance of payment. This is called balance of payment. What is balance of payment? So as we were studying now, Revenue Receipt Capital Receipt Capital Receipt. Isn't it and Revenue Expenditure Capital Expenditure is like this, what our government does, trade, trade account, import and export account and divides it into two heads, one is the current account. Current account is fine and there is one capital account. Capital account means capital account. Now what is included in the current account, whatever trade the government does, trade in what, the goods which we call visible and the services which we call invisible because Services are of intangible nature, you cannot see or touch them, so they are goods and services or those which are our transfer payments. Transfer payment means that apart from loan etc., understand this like there is remittance etc. Do you understand remittance? How many people are there who do not understand remittance ? Remittance means those Indians living abroad and those who are living abroad in India. You must be sending money in India, in your home it is called remittance and India is at number one. In terms of remittance, it is okay. In terms of receiving remittance, India is at number one. Mexico is at number two and India is number one since long ago. Most of the remittances come to us from USA. Okay, that means there are more Indians living in USA who send money to India. So when we say remittance, what comes in current account and what comes in capital, whatever investment is made in capital, it is investment. Our FDI can be of two types: one is Foreign Direct Investment and one is FPI that is Foreign Portfolio Investment or we call it Foreign Institutional Investment or that is FII. Which Swedish company has currently been allowed 100% FDI in defense sector? Just tell me, yesterday only I did what we did and the loans etc. are taken, in the budget I saw there too, the money was coming in the capital one and here also the loan etc. is coming in the one, so it is okay. Sweden's Saab has been allowed, isn't it clear? Now whatever money comes in, we will be dealing in foreign currency. We will be dealing in foreign currency only. We call it Forex. What is Forex? This is foreign exchange. There are four things in it. First, foreign currency assets. Now as the Government of India accepts foreign currency assets, the government of India accepts that petrol means petroleum products sold, gold sold abroad, any goods sold, spices sold, everything sold, then whatever we can get from it. If we have sold the spices to the country, it will pay us in its local currency. If we have sold the spices to which state is called the Spice Garden of India, please tell us. If we have sold it, then it is obvious that we will be paid in our US dollars. If it is sold to Kuwait, then it will be paid in Kuwaiti dinar. We are fine. If sent to Indonesia means sold, then it will be done in Indonesian Rupee. For us, whatever currency is there, it is such that the currency of every country will be collected in the same way. This is called foreign currency asset. The second one is gold which is kept with us. Like we have just brought the gold which we kept there safely in India from Britain. Now we have got it safely here. Because we don't know when there will be a war with which country, that's why we made it here and India is safe, that's fine, the third one is SDR, which we also call paper gold, what is it called, it is also called paper gold, its full form. It is special drawing rights, okay special drawing rights, it is a weighted average of five currencies, which currencies are these, one is the US dollar, the Chinese yuan is okay, the Japanese one is okay, the euro is okay and the pound is okay. This is the weighted average of these five currencies and the fourth and last thing is RTP, which is called Reserve Track Position. Reserve Track Position is the reserve track position that every country has to maintain its quota in the IMF, just like RBI tells banks to deposit money when you need. If you need it then you have to take it to us, the money is yours only and not someone else's, it is safe with us, although IMF says this thing that you deposit it with us, International Monetary Fund says and this money is safe with us. Okay, this is the balance of payment and one final thing and that is what is floating exchange rate and fixed exchange rate, what is the difference between floating exchange rate and fixed exchange rate, floating is like what is exchange rate. If today it is 80 or ₹ then the exchange rate is ok, 5 years ago it used to be 0, maybe tomorrow means tomorrow itself, it can be ₹, it becomes 84, up and down every day. According to how this happens, if the forces of the market, the market forces, are automatically moving it up and down, the market forces of demand, are automatically moving it up and down, then it is floating. The government of any country is manipulating it by force or intentionally. So it is called fixed exchange rate. Why does the government manipulate it? Governments like China do this a lot because they have to promote exports. Just think, one dollar is worth ₹. Tomorrow, this government is doing this. Depreciation reduces the value of its domestic currency. Who will benefit from it? It will benefit the exporter. Okay, so what is depreciation? Depreciation means fall in the value of currency, like if today it is 82 rupees in one dollar, it will become ₹ tomorrow. This means that there will be depreciation. Don't think that you used to get 82 rupees but today you are getting ₹. The currency has not increased but now it has started getting more. Now more rupees are available in the same dollar, that is, your domestic currency has depreciated and fallen. If it falls on its own then it is called depreciation and if the value of your currency increases on its own then we call it appreciation and if it increases deliberately then what will it be called revaluation? Okay, okay clear, this much is understandable, poverty should be seen a little, why brother? Poverty should be seen, yes yes, lease from love is also poverty, poverty, yes sir, see us, how it increases deliberately, how it increases deliberately, increases it deliberately, tell me that you will get so much in one dollar deliberately and what will you do by printing more. Okay, it will do more printing, more money will be available, more money will be available for that dollar, it will automatically get devalued, is it a currency or not, let's tell you, let's tell you what is Nastra, then what is Nastra, then Nastra is there. It is written that my account is in your bank and Vastro means your account in my bank like for example suppose we open our account in Russia, okay we open our account in Russia and so Russia our account in Russia Meaning, if you open a Russian bank and deposit Rs. 000,000 in it, then it will happen, that is , if your account in your bank is fine, then we have deposited Rs. 000. What does that mean, your account in our bank is fine in our bank, so this will happen. Throw Okay, now let's come to poverty, what is poverty? Poverty is a simple thing, how much poverty is there, keep in mind the census of 2011. It asks you what was the poverty rate of India according to the 2011 census, so here is If I ask that India's poverty rate is 21.9, then how much was rural and how much was urban, then this value of rural is 25.7 and urban is 13.7. These numbers should be memorized. Okay, 21.9 and 25.7 13.7. Now let's come to what. Now coming to the different committees on poverty that were formed by us, it is okay, so we should know a little about them, nothing else, but keep one thing in mind, the concept of poverty that was given in the first place was not the concept that was kept in the first place. It is visible here that the first concept that was given was by Dadabhai Naroji ji. He was the first to give this concept of poverty and Dadabhai Naroji had given this concept in his book Poverty and UnBritish Rule in India. It is okay. On British Rule in which he talked about drain theory Poverty and British Rule in India He talked about drain theory Good economic history Who wrote this book Economic History of India This breakfast in PDF I gave you Economic History of India two days ago If their name starts with R, tell them quickly, then we will look at the committee. We will not look deeper into the committees. The more you ask, the more the first committee was formed. Dandekar and Rat committee was the first committee formed post independence, which was completely proper. Dandekar and Rat. Committee, other committee, keep in mind that different committee is okay, different committee, who came up with the concept of calorie based calorie based poverty line, that on the basis of how many calories someone is consuming, then if someone is consuming 2400 calories, if someone is in the village and If a person is consuming 2100 calories in the cities then he is not poor because in the villages more calories are required. Thirdly, you will remember that after punishing you, a separate committee has been formed. You have to remember the Tendulkar Committee. Okay, Tendulkar Committee, this was formed in the year 2009. And he had said that if someone is earning Rs 810 per month in rural and Rs 000 in urban, then he is not poor, it is okay and he had said about mixed reference pay, mixed reference pay is not going into much depth. Am I or because I don't ask many questions, it is so useless that he will be busy in explaining while there are not that many chances of coming but the fact is that if he comes then he will ask from whom is the mixed reference pad, then it is better than the Talkar Committee and another committee was formed later. And Narsingh Committee was formed, it is okay, Narsingh Committee was formed, so it also kept something here, but we do not need to remember all that, Dandekar Rath is a separate committee and Tendulkar Committee When was the Tendulkar Committee formed? What were the requirements given by the separate committee? We just need to know these things. The matter is over properly. Poverty: Yes, the Rangarajan Committee was formed. The Rangarajan Committee was formed. I am poor, Simran, a good wood seller, a wood seller too, Okay, after Dandekar Rath, Lakda waala was also made but he did not give anything specific in it that we have to read it. Okay, Lakda waala was also made, okay Rangarajan was also made, let's move ahead. And now we will read Industrial Policy, it is just a two minute concept, what do we have to read in Industrial Policy, then how much Industrial Policy has come to India, okay, so let us read about the first one, okay, it will not be written here, okay The first IPR that came was the Industrial Policy Resolution. It came in 1948. Well, in 1948, it had divided the industries into four groups. It had divided the industries into four groups. That's all you have to remember here and from here, in a way, the License Raj. Type starts License Raj means that if you want to set up any industry, then what will you have to do, you will have to take license from the government, only then you can establish the industry, so did this increase red tapeism? You must have read in one word in English that it means that where what is said or what is said, the government increases royally. In Hindi, it means red tape increases, it means that corruption increases in a way. Who will give the license or if any industry has to establish a monopoly then what will it do , it will take the license by paying as much money as possible and it will remain a monopoly and then it will exploit whom because then we have read that in a monopoly, there is only one seller and no one else. No matter how much the price will be charged, people will have to buy it, okay, so this is what License Raj is, in a way, it started from here, which we will see and ends in 1990, okay, how it will end, we will also see and the second IPR that came second. The Industrial Policy Resolution came in 1956, which we know as the Economic Constitution, we know it as the Economic Constitution, the second IPR and it had bifurcated the industries into three schedules, okay, it had divided them into three schedules. Keep in mind, it will ask which particular IPR means it will ask in a way that our bifurcation of industries was done in three schedules, then the second IPR will be Schedule A, Schedule B and Schedule C. Schedule A had total 17 industries. Schedule B had total 12 industries and remaining. In Schedule C, there were those industries in Schedule A which were completely managed by the Central Government, so the Central Government was completely managing them, meaning in a way it was in the hands of the government, or what was this, here the government will remain but private. Help can be taken, we will perform the secondary role, it is completely private, okay, so here in a way, the central government is kind of a monopoly and a little bit increased, okay because we were socialist economy, initially the meaning of socialist economy. It happens where there is ownership of the government, but gradually when our balance of payment crisis happened in 1990, then we realized that we will have to increase privatization also. Now I am going to teach in the fire plan, so I will tell you about it, okay so this. The thing to keep in mind is which of our industries will come in it, it has become Atomic Energy, it has become Air Transport, it has become Railways, it has become Defense, it has become Banking, whatever subjects we study in the Union List in Schedule Seven, mostly you understand the same. Low Atomic Energy, Air Defense and Banking Steel Industry, all this schedule was one industry which was important, 17 industries, how many were there to memorize, you have to memorize only one page in the Industrial Policy Resolution, you do not have to memorize anything else, you can work only this much and The latest one which came in 1991, there has been no IPR since then till date, okay, it is over, let's start the fire plan now. Can I take a break for a minute, if I have your permission, I want it. So you too, so let's take a break. It's been three hours continuously without any break. It's just five minutes less than three hours. After studying and teaching for three hours continuously, let's take a break, not three minutes, just one minute because it's the last topic. There should not be a big break because this is the last topic sir, there is nothing after this, there is nothing after this, five. Year plan is your last topic, okay, people are not saying good, don't take it, okay, then let's take it, if you had said yes, you would not have taken it, but now let's take it, okay, let's count, you guys are okay, this is the most important topic, leave it. K go, it will be a sin and if it is not, we will get it done, it's okay now, and just wait for a minute, okay, let's mute it, so that you don't get to know things, is it too loud brother, so no, why don't you see, 200 people have gone, now it's a sin. They will have to be installed, come back, not quickly, kill the mantra by blowing, nature is fine, nature is fine tomorrow, nature is installed so late tomorrow and let's start our plan, what is the difference, become perfect in elasticity, perfect elasticity, Lavan ji is asking , please tell. Wait, where are you looking at the elasticity? Have you reached here? This is the end of the fire plan. How are you feeling? Where is the price elasticity of demand? Where did you increase it? Here's what was asked about the price elasticity. Look, this is the formula I have given. It was written that it is called unit of elasticity, it is correct, it means unit, or what else should we call it ED, ED is correct, elasticity of demand is elasticity of demand, unity is one, when the amount changed in price is the same in demand. Price changed 10 means the greater the greater the greater the percentage the demand also decreased. Okay then it is called equality equal to one ED. If it is less than one then it is called relative relative in elastic. Keep this thing in mind and if If ED is greater than one , then it is called relative elastic. The change in demand is more than the change in price and ED is infinite if it is perfect, it is perfectly elastic. This is what is meant by perfectly elastic. Don't ask for perfect elasticity. What elasticity means is that we had changed the price just a little bit, we slapped him lightly on the cheek and he started crying. Suddenly he started crying. Okay, perfect elasticity and perfect DE. I slapped him so badly. He slapped me so badly that anyone started crying but the boy did not move, that is, there was so much change in the demand price but still the demand did not change, the DG is perfectly in elastic, okay, keep this thing in mind, now let's move ahead and here. But we have come to five year plan. If five year plan is okay then let's start five year plan. Now let's read the basic of five year plan. First of all, what are five year plans? Then the concept of five year plan is that of Russia which was earlier USSR i.e. Soviet Union. We took it from there and it was okay because we also moved towards a socialist economy. We also wanted to become a socialist economy, so we also took a five year plan and started moving towards it, but after five years we were 20. We started working with a perspective plan for one year. We also used to make a plan for 20 years, which we used to call perspective plan. Keep this in mind, okay, along with 5 years, we also started with a long term vision of 20 years. Okay, call it perspective plan. It was said who used to implement this? Why am I saying this because the five year plan is no more in existence? As soon as the government came to power in 2014, it was removed and which body replaced the Planning Commission and under which article of the Constitution? Please tell us in the comments, it is okay, so now we will read the five year plans one by one, the first five year plan, what to read in the first five year plan, what was the duration in it, that is, when was it launched, remember the exact date. It was launched in April 1951. How long did it last in 1951, 1956, 1957, 1956? What was its goal? Its goal was to promote agriculture. It was right at that time that our three dams, Bhakra Nangal, were built, which is our largest and Highest Gravity Dam is also the highest gravity dam and Heerakot Dam which is the longest dam, please tell on which river it is built and Nagar Ju Sagar Dam which is built on Krishna River, it is right, it was based on your Herr Domar model. Whatever it is, we had given our model that it should be done in this way, hence we call it based on Hare Domar Model, that is based on Hare Domar Model, in this the target we had kept was kept at 2.1 and achieved at 3.6. I will write in this way that you will understand that this target was set and it was achieved. Okay, so this thing became clear in this, in this itself we established and setup IIT that is Indian Institute of Technology. Did you know that in place of Planning Commission, on 1st January 2015, Niti Aayog has come, National Institute for Transforming India and it is not in any article of the Constitution, the reason is that it is not even a statutory body, it is an executive body, keep this in mind. It is not even statutory. Statutory is that which is created through a law i.e. an act. An act may have come in the Parliament but it was created only through an executive resolution by the government. Tell me in the comments. Its Chairman is the PM. Just as its Chairman was also the Prime Minister, Modi ji is also its Prime Minister, but who is its CEO and who is its Vice-Chairperson? Vice-Chairperson, okay, so let's talk about the Second Five Year Plan established here at IIT. If we talk about the second five year plan, then the second five year plan was your base, first keep it in the same order, neither when was it launched, what was its duration, from 1956 till the next 6 years, sorry for 5 years because the five year plan is 61, then the second time. What did we write about whom, what was the meaning, what was the target to achieve, what was its objective, that is very important and that is or rather that was rapid industrialization, that is, rapid industrialization, with which what was done. Due to this, we also set up three steel plants here. How many steel plants did we set up? Which three steel plants did we set up? One was set up in Raver Kela, the second one was set up in Durgapur and the third one was set up in Bhilai. Where is Bhil located? Durgapur is located in Chhattisgarh. West Bengal is fine and when River Banana falls in Uri, then River Banana asks with whose help we established it, so remember, we ate banana together with the German Shepherd, remember it like this, okay, we fed banana to the German Shepherd, Durga ji. We worshiped it in collaboration with UK i.e. Britons and made Bhilai drink, we launched it in collaboration with whom of USA, with the help of Russia or with the help of USSR, then what did we write in it, it was written on which model was it based on? On which model was it based? This PC Mahalan was also based on this model and how much target we set in it and how much we achieved, so in this also we did not mean in this, we kept the target at 4.5 and we achieved 4.27 which is just there. If you can go and touch it, then it is okay, then both the fire plans are cleared, now coming third is USA. It is correct, of course, let's move ahead and see the next one, that is the third five year plan, now things are going to change a little from here. After this, everything was going well till now in the Third Five Year Plan. It was finished in 1950. Sorry, it was finished in 1961, so it would continue till 1966. If we talk about it, what goals were kept in it, what goals were kept in it, what goals were kept in it, That self-reliant and self-generated economy, which we will call self-reliant and self-generative economy, is it right in Hindi? The fourth five year plan is written somewhere on the Gad Gill formula. On the Gad Gill formula, it will not be there in both the options. Well, it will either be the third or the fourth. So it was based on the Gad Gill formula and in this we had set a target of 5.6. But how much more did we achieve? At 2.8, we achieved half, even achieved less than half. 2.8, not 2.4. Remember, okay, why did we achieve less than half, because at this time some important incidents had happened, one with China in 1962. There was a war with China, okay, second, starvation had spread at the same time, and no, and third, at the time of 1965, 1965, okay, yes, are you looking at the Third Third Plan? No, yes, 19 This is your Third Plan. At the same time , we had a war with Pakistan, okay, what else happened, I told you about the five point target, okay, and here your feminine side was responsible as to why so much happened here, okay, now here are some important things. It also happened, as if the Green Revolution was launched here at this very time, now I am not going into the depth of the Green Revolution, Green Revolution Father Mother, where else do you have all this, just for now, why put it in two faces because it is in Environment and Ecology. You will read that it was launched in two phases and the first phase came in the mid-1960s, the second one came in the mid-1970s, the first one came in the mid-1960s and because there was so much production, we became self-sufficient, so when so much grain was produced, If there is more production, there will be storage also, that is why Food Corporation of India (FCI) is established . Don't remember January 1965, January 1965, it was at this time in 1965 that our bank, IDBI, was established. And at the same time, CACP Commission on Agricultural Cost and Price was established, this is the same commission which determines the MSP i.e. minimum support price, how much MSP will be given for wheat, rice and all these, then the commission. Its full form is On Agriculture Cost and Prices. Okay, now coming to the Fourth Five Year Plan. Okay, now coming to the Fourth Five Year Plan. Okay. Now why did it fail? Here I told you the reason why it failed. Here I told you that it is okay this failure. Now let's come to the fourth. What is the fourth? After the break, how come after the break, why? Because here it was a big failure, so like this we took a break, took a break of 3 years, from 1966 to 1969, there was no five year plan. Came and we call it Plan Holiday, we call it Plan Holiday, after this the Fourth Five Year Plan was launched i.e. Fourth Five Year Plan and for how long did the Fourth Five Year Plan last, then it lasted from 1969 to 74. The goal of the fourth one was That was growth with stability. Growth with stability means now we have to grow but we need stable growth so that it does not fall flat on its face. Okay, so we need growth with stability and at the same time we need self- reliance, self-reliance, which we can call that. And what all happened at this time, so keep in mind at this time, 14 banks were nationalized, 14 banks were nationalized, nationalized and what happened at this time itself, Drought Resistant Program, then Drought Prone Area program was launched. It was hatched between 1969 and 1974. Is it okay and what else? Keep this in mind, Rudra Allen model is either Gadgad Gadgad Allen, I told you Gagil, Third Foe is fine in both of them or Rudra Allen model is fine Prime Minister. Who was there at what time and I will make it easy in the end, if I go on telling them one by one, then it will be an extra thing to remember, whereas it is not that tough but will be easily remembered, the target we had set in this was 5.6. But we achieved the same amount as we had set in the third but again we achieved more than that but could not meet the target, so this time we will move ahead, so we reduced our goal. When we came in the Fifth Five Year Plan, we reduced our goals. I will write FP here, I am fine, so what did we do in the Fifth Five Year Plan? Fifth Five Year Plan, this was your base, what was its duration, when did it end in 1974, so it must have been from 1974 to 78. Normally 5 years should be added till 79 but it could last only for 4 years only then we will see why it was based on your DP Dhar model, it is ok, it was based on DP Dhar model, what happened in it, so what do you say about it, it is fine. This is 1974-79, okay, so what happened in it, keep in mind at this time, the slogan of poverty alleviation was given in it, the target of this particular five year plan was poverty alleviation, what is poverty alleviation, it is okay to reduce, then poverty. The slogan of 'Hatao' was given, okay, and what else was placed here, and RRBs were established here, okay, RRB was established, which one was established, the first RRB was established, Pratham Gramin Bank, Moradabad, Uttar Pradesh , okay. Where was the first rural bank established, Moradabad in Uttar Pradesh, Moradabad in UP, and what happened besides this, the program of Minimum Needs Approach was brought that brother, the minimum needs of the people will be fulfilled, okay, so all this. Things had happened in the fifth five year plan, now we come to the part of the sixth one, the sixth one is not that important, the five that have been started are the most important and here yes, what targets were set and how much was achieved, so like I It is said that in the fourth, we kept the same amount of 5.6 in the third, in the fourth we kept the target at 4.4 and achieved less than half in the third, here we achieved a little more than half, but here we reduced our target, we kept the target at 4.4 and achieved 4.8. But you see, it became successful on its own. If we talk about the Sixth Five Year Plan, then yes, now one thing, like I told, it should have been done from 74 to 79 but it remained till 78. Why is it that it did not happen till 79 but only till 78? walked Because the government changed, the government changed here, the government changed and from 1970 to 1980, the public came out with a rolling plan. Because the public changed, the government came out with a rolling plan. It is okay here. Rolling plan means that every We will set a target for one year and at the end of the year we will see how much has been achieved and then we will modify the target accordingly. If we go on a rolling basis then the public government that has come here will have a rolling plan for 2 years. When the Congress government came again, the Congress government again revived these five year plans and when the sixth five year plan was launched, the first five were the most important and after the five, the seventh and the eighth were a little more important. That's it and after that 11th and 12th a little bit or the main content is there only in five, okay then you will remember that well and then you will focus on the rest later. Okay then you can talk about the duration of this also, since 1980. It was 85. The target was to increase the income of the people or the national income of the nation, to cater to the unemployment, to reduce the unemployment or to cater to it, so these things were mentioned here, okay and here yes. Rural: Here your Rural Landless Employment Guarantee Scheme was brought, it is okay. Rural Landless Employment Guarantee Scheme will ask, if it was brought in the sixth, what happened in the seventh, you have to take care, you have FW, it is okay in the seventh. You have to keep in mind that F means food, W means worker's productivity, worker 's productivity and P means we, P means do it, productivity is fine and W means work, work means work. Meaning employment, if you remember, FWP asks only from the seventh that the goal of which five year plan was to increase the productivity of workers, i.e. to increase the productivity of workers , to create employment opportunities. Who had set the target for production? Seventh Five Hundred had set a target of 1985 to 90. Rajiv Gandhi was in it. What does a Prime Minister say at this time and the target he had set was at 5 and achieve was at 6 but after that. You know Rajiv Gandhi dies on 21st May 1991 and along with that it was the year 1990 when we faced the BOP crisis that is balance of payment crisis due to which we brought LPG reforms. LPG does not mean that, LPG cylinder one is fine, here L means liberalisation, which we will call liberalisation, we are fine, liberalization will be done by P, privatization will be done by P, privatization will be done by G, and globalization will be done by G, this means that Take investment from outside. Why did we have to introduce reforms? Because when the crisis happened, we went to the International Monetary Fund (IMF) and it bailed us out. Bailout means giving a loan and it does not give the loan just like that. Yes, he gives us the loan on certain conditions, okay, and what was his condition that you have to open your economy, you have to learn investment, so what did we do to get investment, did we liberalize our economy? Privatization means that we made changes in our domestic economy. This license raj that I said did not end, the license raj ended here in 1990, when the LPG reforms came, here we encouraged the private players that even private players can establish industries. Globalization means globalization. It means connecting your domestic economy with the outside economy, that is, importing and exporting things, that is, you are not exporting things, export only then foreign currency will come. BOP crisis means that we did not have that much foreign currency. So that we could import things, we had to go to the IMF and from the IMF, keep in mind that we know the IMF and the World Bank as twin organizations. IMF and World Bank is the old name of the World Bank. What is its name? What is the name of IB RD International Bank for Reconstruction and Development, both of them were established in 1944. It is Britain Woods Conference. Okay, Britain Woods Conference was held in 1944 in the US. They were established through them and where is their head quarter? Just comment. Now I will tell you what happened next There is no fire plan immediately after 1990 and in 1991 and 92, in 1991 and 92, we brought annual plans. It is okay. What did we bring? Annual plans are okay. Here we brought annual plans, not year- round plans, as I had told you about rolling. Plan, sometimes rolling plan is also called annual plan, so here we brought annual plans and after that we had lunch, Eighth Five Year Plan, Eighth Five Year Plan and these LPG reforms. When did PV Narasimha Rao's government come? During whose time the Eighth Five Year Plan also came, so now I will summarize who was the Prime Minister at the time of which Five Year Plan, what would be the duration from 1992 to 1997. Is this based on your indicative indicative planning or indicative policy? What is the meaning of indicative planning? It happens that where you not only you i.e. the government but also the private players participate, we call it indicative planning i.e. we call it indicative policy. It was based on indicative policy. Which AF plan was this during the fifth plan or before this? Just first the structural reforms were introduced. The question asks when were the structural reforms introduced. Okay, that is, in a way we can sow economic and fiscal reforms, then when were the structural reforms introduced? They were introduced at the time of 8th year plan. Okay, the target we had set in this was 5.6 and we achieved it at 6.8. There is no need to look at the 9th five year plan, 10th, just look at the 10th one, your National Horticulture Mission was launched during the 10th. Horticulture: You know the gardening that is done, we call it horticulture. Which revolution is it? Golden Revolution. Golden Revolution is associated with our honey production and horticulture. So the National Horticulture Mission was launched and let's talk about the 11th, which was the 11th five year plan. Now see, our total five year plan has been 12. There have been only 12, okay, there have not been more than 12 and the duration of 12 was from 2012 onwards. Remember this, 12 was to be from 12 to 17 but there was a change of government in 14. If it lasted only for 2 years, then if it was from 12 to 17, then how many years would it have been from 2007 to 2012. What was its goal, which was in the 11th year? The goal of the 11th year was rapid and inclusive growth. Rapid and inclusive growth and What was its target? It was rapid, inclusive and sustainable growth. Well, sustainable exit was done. Now let us tell you the Prime Minister. Okay, so in the first three, Nehru, in the next three, that is, one, two, three, Nehru, four, five, Indira, seventh, Rajiv, eighth, eighth, who is the eighth PV? Narasimha Rao Ninth Atal Bihari Vajpayee Tenth Atal Bihari Vajpayee Plus Manmohan 11th Manmohan 12th Manmohan Ok Remembered Aaram Se Ok Manmo Man Manmohan Ok Atal Plus Manmohan Writing is not good k nahi banti yaar in this it looks good in black background Noticed this In the eighth, PV Narasimha Rao, who has just been awarded Bharat Ratna, is in the second post, Rajiv and in the seventh, three Indira, before that, three Jawaharlal Nehru, it is over, okay, let us consider it as public good, I told you last, public good. What is a public good and what is it that is available to everyone ? There are two types of good, public good and private good. Okay, so what is a public good and a private good? What is the difference? So in public good, free ridership is free. The meaning of 'right ship' is that it is a free thing, rub it like it is a toilet, okay you have gone to the toilet, you are a government toilet, you are not flushing it, you are not doing anything. You must have seen how that thing which is a government thing. It is not taken care of at all. It is free. Use it after rubbing. It is okay even if it is not needed, still use it or not. Just like assuming that tissue paper is lying there, there is no need of tissue paper. It is free. Pick up what is the problem, rice and gooseberry as given by Government of India under PDS scheme, public distribution scheme, wheat and rice, we are getting 5 kilos, we need it, we know that one kilo or two kilos will do, it is free, take it, they say free dater ship. That thing does not happen here because money is spent here. What happens to that thing in public good? There is no competition in public good. It is okay, there is no competition in it. There is competition in it. The principle of excludability does not work in this. Excluded means that if someone consumes it, will it affect his consumption or not? If for me, if the Government of India said that Everyone will get wheat in ₹ kg. If rice is given in ₹ kg, then everyone will get it. Otherwise, if I take it, the price will increase for me. Something like this, Xbill does not work, the principle of exclude ability works in it. Keep this in mind, okay, this thing you need to know. In this, it has to be kept in mind that what is a public good and what is a private good, I have understood this, okay capital good, I have told you what capital good is, what is intermediate good from which production is done like for example intermediate. Well, let me tell you, understand this is correct, as if we assume that I took a tea leaf, I brought it home, made tea and drank it, then will that tea leaf be intermediate good for me? Will that be an intermediate good for me? No no but Dolly the tea seller brought Dolly The tea seller brought the tea leaves and now he is making it and making others drink it and earning money from it. Okay, so we will call it intermediate good for that, so what can be the definition of intermediate good that when As long as that particular product has not left the economic cycle, it is okay if it is used further for economic transaction then we will call it intermediate good but what is finished good ? Firstly, it will not be used in economic transactions , that is, it will not have any economic use. It is okay that even if we are making tea from it, we are drinking the tea for ourselves and are not selling it to others, so it will not generate any value in the economy. If no money is being generated then it will not be an intermediate good in that case and what is intermediate finished good? Now there will be no further processing in it, that is also a definition of finished good. It is clear that public good is private good. Now let us understand the last concept of our today's lecture, that is, what is the difference between flow and stock concept. Okay, then let's wrap up the lecture. Sarfesi Basel, read all that, you will not teach all that by yourself. Okay, questions come otherwise . Then what do you mean by that, am I going to repeat the same thing that I had done in the previous one shot here, it would be better if I did not say anything like this, then go and read it, so come on, I will tell you. Anyway, one question came from Sarfaesi and that is what he said. When asked in full form, Sarfaesi can tell you, even from the basal norms, hardly any question came, okay, we will check that also now, if you and basal banking is set, then what is the floor stock concept, then in this it asks you that it will give you That money is done, all this is inventory, what is all this, what is flow concept, then stock concept, then flow concept, it is measured, measured over a period of time, measured over a period of time, it is called flow concept and what is stock concept. Is measured over a point of time For example, I said that I made so much profit, then it is important to tell in how many days did you make so much profit, I made a profit of one lakh, I had invested in it, if I say one day I will think more and I will say the same, there is a difference in 10 years, it is necessary to measure it in period of time, where it is necessary to specify a time period, in how much time it is called flow, like I should say that my net worth. My net worth is this much, so at one point of time, it will be measured that brother, it is one crore, now for how many years have I earned, in one, in two, but it does not matter how much today, that is your stock concept, you understand that right. For example, suppose there is a tap, this is a tank, how much water is coming in the tank, how much in one point, let me say in this, two liters of water has come in this tank, how long did it take to get it in minutes, in 10 minutes, but tell me this amount of water. In this tank, this tank is half full, half full, half full means full, okay simple, it will be a stock concept, net worth, okay, as an example, I and you are saying that for example, if the deficit is mine, then the deficit is the flow. We will keep it in stock, you will tell me in the comments, how will you put the deficit as deficit and debt as debt, debt means borrowing, in a way, if we keep it in what form, then it will be called deficit. In the flow concept, how much is the deficit, in how much time did you incur that loss, but today I have How much due to that loss, how much am I in debt today, I am in loss, that stock will go into the concept, that 's how the inventory is, okay, how much is the change in inventory, how much is the change in inventory, that will be in flow, okay, but the inventory itself is stock off. Inventory That Stock Concept What is Inventory? Whatever thing you are selling, you are producing it, how much of it is lying with you, just like you are selling t-shirts, how many t-shirts are lying in your inventory, that is, as many as you have. There will be t-shirts lying nearby, they will be called your inventory. There are two types of inventory. One is called acumen, right is acumen and the other is right . Acumen is right . If you had already planned then it will be called plan acumen and if you had not planned that thing in advance but because the sale is not happening your t-shirt is not being sold in the market. So that inventory of yours means that you emptied the inventory first and unplanned means that you did not expect that the sale of your t-shirt was so bad, that is why it got emptied. Okay, let's read about different organizations and And this is the end of your lecture, okay, so the meaning of different organization here is that which organization was established when, like when was SEBI established, when was SIDBI established, when was NABARD established, okay when was NABARD established ? I have already told you that it was RRB and yes, it is okay, so these are different organizations, let us see about them also. If we talk about SEBI, then when did the Stubby SEBI Establishment Act come? The coming of the Act means that it became a statutory body. Before this there was no statutory body, its chairman will tell quickly who is the chairman of SEBI and if we talk about SIDBI then it was between 1988 and 1992 which was 1990 and where the head quarter is located, you can also tell in the comment, okay. And keep writing the Chairman also, let me keep writing along with it, as its MD is also Manoj Mittal Saheb, okay who is its Madhavi Puri Budj beyond whom you must have seen the whole thing, who is it now, who is the one who is in his report. Then look, I have forgotten that earlier I had come out with a report on Adani, now they have put the same on SEBI, okay, they are also playing their own game, to manipulate the market for their profit, they had said on Saturday that SEBI If it is like this, then everyone thought that what does SEBI do, all these stocks which are your shares have become shares market, have become mutual funds, it looks after everything. Hindon Burke report is fine, so for your benefit, you should bring out reports like this, but people understood that brother Hindon. Win everyone comes to straighten their owls or they thought that we will do this on Saturday evening and on Monday the market will crash with a bang, book profits and go away but this did not happen, okay, CIT is also established in 1990 and Where is its head quarter? Where is its head quarter? Its head quarter is in Mumbai and SIDBI has its head quarter in Lucknow and if we talk about SIDBI, then I have already told you who is SIDBI. Well, let's talk about NABARD, which we call what. National Bank for Agriculture and Rural Development is established on 12th July 1982. It is established on 12th July 1982 and let 's talk about it, who is it, what does it say, what does it say, its Chairman is Shaji Shahji KV. Okay, it is clear, so 12th July. It was established in 1982. The Act came in 1981. Okay, when did the Act come? It came in 1981. What is NABARD? It supervises RRBs. RRB supervises Regional Rural Banks. One thing to keep in mind about RRBs is one thing. What happens in RRB? Who has the share holding in RRB? How much share holding is done in RRB? Okay, so don't keep share holding, this is how it works, it will be of Central Government on your 50th, okay sir, what has not been done in this, what has not been done by Institutions, IMF and World Bank is fine, the institution asks you about IMF and World Bank, it is fine, I have got the rest written , no matter how much more I can get written, what do the rest of the people who were writing just now say, I will tell them about that also, okay. So, Regional Rural Bank, I have told you when, meaning at which time, your financial plan was set up and who was the first RRB? The first rural bank was yours which was set up in 1974 and where was it. That happened in your Moradabad, UP, is it ok, if we talk about RRB, then as told, it is of Central Government, it is ok, the rest will be of Centre, the rest will be of State and the rest will be of sponsor bank, how much will be 35, but here it is spinner. The bank will take it and it will be taken at 15. Here the state government will take it at 35. It is okay. The spinner will take it at 35 and the state government will take it at 15. It is okay. This is homework for you that you have to remember the 17 SDGs and okay I will tell you. How to remember, you can remember it like this, meaning, don't ask too many questions, don't give too much load, don't ask too many questions about it, but if you ask, then fuse juz is ok, fuse juz, memorize it by doing like this, it is ok, fuse juz juz is ok. Have use S medicine is fine S medicine P from poverty H from hunger H from health E from education G from gender equality W S from water sanitation S A C E from affordable and clean energy A SAI medicine from DWI I from decent work and decent work And Economic Growth and Medicines The Wa and I Industry Innovation is ok, we reduce the risks by taking medicines, RI is reduced in quality, SC is reduces the sustainable cities and by reducing, Responsible consumption for the goals is ok, the lecture ends finally RRB Sorry, let me tell you a little something extra about RBI. White will work here. Let me tell you about RBI, which is our Reserve Bank of India, which is the central bank of the country. It was formed on the recommendation of your Hilton Young Commission, which is Hilton Young. There is a commission, it was formed in 1926, so it was set up on the recommendation of 1926. It was established on 1 April 1935. It was established on 1 April 1935. Osborne Smith or Smith, before that he was the same Chairman, Governor, okay and who was the first Indian ? So this was CD Deshmukh, okay, it was CD Deshmukh and when was RBI nationalized, it was nationalized in 1949, it came under the government and it is through the RBI Act of 1949 that it gives power to these banks. One thing to keep in mind is that non- profit non-profit NBs, which are our MFIs, are micro finance institutions which are not regulated by RBI. All the MFIs, be it NBFC or MFIs, are all regulated by RBI. Yes, but those who are non-profit, if you ask specifically like this, then the answer will be, but in fact RBI itself regulates them, whether it is MF I, whether NB, NBF or MF I, it is okay, you have to keep this thing in mind, okay and and and and and okay The lecture is over, now if anyone is having any doubt then ask how much time did it take. The previous one took only 35 hours. The previous one took place at the time of Mains, it was of 4 hours, this one was done in just 35 hours. No Sir, what is Gilt Edged Security? Gilt Edged Security is issued by the government or blue chip companies, they call them Gilt Edged Security, it is quite high grade Gilt Edged Security, it means that the risk associated with it is It is quite less, it is clear that these are high grade Bunds and the risk in them is very less, that is, the entire investment is made on Government Bunds, then the lecture ends. Please read our WP CPI. Brother, WP CPI is done. Go to the middle and look at the wholesale. Price Index and Consumer Price Index: If we check inflation from the wholesale side, then WPI base year is 20111. Office of Economic Advisor, Ministry of Commerce and Industries calculates CPI. When we check from the rate at which the consumer is buying. Okay and it has NSO that is Mospi calculates, brother thank you everyone, you will get its PDF on Parmar SSC Tegra channel plus hand written notes will also be available there plus current affairs which is part one. You will also get those notes and thank you, we have achieved 500k i.e. 5 lakh subscribers there. Okay , who funds the MF I? Look at the funds, some donations are received, grants etc. and some are also done through deposits. Just like we make deposits in banks, they also get deposits. Okay, I did not know Economics. After studying with you, now it has become one of my favorite subjects. What is the matter? The head quarter of RB was shifted, earlier it was in Kolkata since 1937. I was transferred to Mumbai. Very good, what is MF I? Mansi Sharma, what have you said? What have you said? What is MF I? Very good, that is what happened. The entire Ramayana is over and you are asking who Sita was? Ane Pura. Haven't seen the lecture, what does it mean Sir, what is Twin Deficit? Panada Harish, Twin Deficit is that when there is Fiscal Deficit plus CAD, Current Account Deficit, Fiscal Deficit, then explained. There is a current account deficit with the budget, which is seen in the balance of payments. Current account and capital account, in the current account, when your imports are more and exports are less, then in that situation there is a deficit of current account and if both are If you are in the country then it is called Twin Deficit which happens in India. Okay, now some people were asking about whom, they were asking about Sarfaesi, right, Sarfaesi Act is there, there is a place here, let's write it here, yes thank you, it is written. In SARFAESI, keep in mind that its full form, SARFAESI Act came in 2002. Security Easing and Reconstruction of Financial Assets and Enforcement came in 2002. In 2002, banks were given the freedom that you can withdraw your money, we are not much fuss. The government said that this act was brought in a way to help the banks to withdraw money so that they can quickly resolve their NPS non-performing assets. Non-performing assets means those loans which the banks have not returned to the people to whom they had given the loan. If they are not there then they become NPA then it is okay to get them out, similarly we have bad banks, bad banks are those banks which are created or it is okay to get these NPOs out, like I can't remember the name of our National Re, its reconstruction was done like this, the company was formed, so it was a bad bank, I take out NPA to take out NPA, bad does not mean bad, although it is a good bank, it takes out NPA, it keeps some money of the banks with itself and If you give the rest to the banks, then it becomes okay and what else is there, yes FERA, what is FEMA, what is the Foreign Exchange Regulation Act, they say, it came in 1973, keep in mind, it is okay, the Act came in 1973, it replaces it. FEMA did the Foreign Exchange Management Act which came in the year 2000. Okay, it came in 2000, this is okay, so this FEMA, keep in mind, these two acts regulate foreign exchange, so Foreign FERA 1973, FEMA, Foreign Exchange Management Act 2000. One more thing, one more thing, and yes, FRBM Act came in 2003, Fiscal Responsibility and Budget Management Act in 2003, that brother, the government should limit its deficit i.e. fiscal deficit by how much, okay, how much should it be limited. That's why FRBM Act came, okay, so when did this Act come, what is the full form, this is what will be asked from you, okay, so clear about how to reduce the fiscal deficit, bad banks, I told you that financial assets are your Surfaes which were created in 2002. The Act came, I think there is nothing left now and the Basel Norms are associated with your banking. There is also a convention called Basel which will be taught in the environment which stops the trans-boundary movement of hazardous chemicals. But if the Basel Norms ask, Tier One Capital will ask, Tier One. Tier to Tier Three capital, ask who is it associated with, then it is associated with banking, which is yours. Actually, the head quarter of the International Banking Association is in Basel, Basel is in Switzerland, where all these norms were come here as to how. RWA is whatever risk weighted asset the banks have. Risk weighted asset means that whatever asset they are assigning the risk to, whoever they are giving loans to, whether they are giving it to goods, whether they are giving it to Tata or to good people. If he is giving it to bad people, then associate his risk accordingly, that is fine, let's thank you all, now if you make PDF in Hindi, then please here I am writing a number, beyond this. You will send it, okay, wait a second, I don't have my number, okay, so don't send unnecessary messages in this 92 35 5 7 92 357 98 380. Whatever notes you have in this, especially if you make them in English, then in English and Hindi . Please do it in Hindi, okay, Hindi people have more demand, okay, thank you to all, see you tomorrow, one short lecture of Static GK.