Calculate Revenue Deficit, Fiscal Deficit and interest payment,if primary deficit is 0.

88

Revenue Receipts. 20.21

(II)Gross Tax Receipts. 24.23

(Ⅲ)Net Tax Receipt. 16.36

(IV)Non-Tax Receipts. 3.85

(V)Non-debt Capital Receipts. 2.25

(VI)Non-debt Receipts. 22.46

(VII)Total Expenditure. 30.42

(VIII)Revenue Expenditure. 26.30

(IX)Capital Expenditure. 4.12

Explain how the government can use the budgetary policy in reducing inequality of income in
the economy.

OR

Discuss briefly the role of the government budget in influencing "allocation resources" in the
economy.

Explain, using a numerical example, how an increase in reserve deposit ratio affects the credit
creation power of the banking system

As per the Reserve Bank of India (RBI) press report, dated 20th January 2020:

"A company located in India (Exide Ltd.) receives a loan from a company located abroad
(Aramaco Ltd.)."

This transaction would be recorded on side of account in BOP Account of India (Choose the
correct alternative to fill up the blanks)

(a) credit; current

(c) credit; capital

(b) debit; current

(d) debit; capital

Read the below case and answer the questions that follow:

On March 5, 2020, the Reserve Bank of India (RBI) imposed a 30-day moratorium on YES
Bank, superseded the private-sector lender's board, and appointed Prashant Kumar, who was
serving as chief financial officer and deputy managing director at State Bank of India (SBI), as
an administrator. Under the terms of the moratorium, deposit withdrawals were capped at
*50,000 per person. The central bank proposed a reconstruction scheme under which SBI might
take a maximum of 49% stake in the restructured capital of the bank. Analysts believed the new
management of YES Bank, headed by former Deutsche Bank India head Ravneet Gill, who
joined the bank in early 2019, could turn around the ship. Gill, however, has struggled to do so.

The bank's loan book on March 31, 2014, was 55,633 crore, and its deposits were 74,192 crore.
Since then, the loan book has grown to nearly four times as much, at 2.25 trillion as on
September 30, 2019. While deposit growth failed to keep pace and increased at less than three
times to 2.10 trillion. The bank's asset quality also worsened and it came under regulator RBI's
scanner. YES Bank has a substantial exposure to several troubled borrowers, including the Anil
Ambani-led Reliance group, DHFL and IL&FS. The tipping point came when one of the bank's
independent directors Uttam Prakash Agarwal, resigned from the board in January 2020 citing
governance issues.

"What is YES Bank Crisis?" - Business Standard

(a) Which of the following function has been performed by the RBI in the above case study:

(i) Banker to the Commercial Bank, here YES Bank

(ii) Supervision and Regulation of the Commercial Bank, here YES Bank.

(iii) Controlling the credit creation in the economy.

(iv) Managerial function

(b) Under the (regulation/ moratorium) the deposit withdrawal was capped at 50,000.

(c) Why was YES Bank put into the check of the RBI?

(i) The loan grew four times.

(ii) The deposit failed to grow.

(iii) Both of them

(iv) None of them

(d) What another role does the RBI play for the Commercial Bank like YES Bank?

(i) Advisor to the Bank

(ii) Banker to the Bank

(iii) Controls of credit created by the bank.

(iv) All of the above.

In the context of Balance of Payments Account, state whether the following statements are true
or false. Give reasons for your answer.

(i) Profits received from investments abroad is recorded in Capital Account.

ii) Import of machines is recorded in Current Account.

Trade Deficit must exist if a country is facing a situation of Current Account Deficiť. Defend or
refute the statement, with valid argument

Atmanirbhar Bharat' had been at the roots of the Indian planning process in the form of
'self-reliance' as an objective of the planning process. Do you agree with the given statement?
Justify the rationale of the given statemet

Reliance on public sector enterprises in Five Year Plans was a tactical mistake."

Do you agree with this view? Justify.

values of revenue deficit and primary deficit:

(i)Tax revenue. 94

(ii)Capital receipts. 68

Non-tax revenue. 20
Borrowings. 64

(v)Revenue expenditure. 160

(vi)Interest payments. 40

If a country exports goods worth ₹600 crore and imports goods worth ₹ 450 crore, the value of
Balance of Trade of the country would be in (Choose the correct alternative to fill up the blank)

(a) deficit of 150 crore

(b) surplus of 150 crore

(c) deficit of 1,150 crore

(d) surplus of 1,150 crore