Ayussh Sanghi is teaching live on Unacademy Plus
APPROACH TO INDIAN ECONOMY 1.9 PRESENTED BY AYUSSH SANGHI
ABOUT ME Passionate about Teaching >Taught at most reputed Civil Services Institutes >CA, Lawyer Follow me on: https://unacademy.in/user/ AyusshSanghi
UNIT VI - EXTERNAL SECTOR How has India's Foreign Policy been designed? o Recent initiatives taken by the government regarding FP? o What is Balance of Payment (BoP)? O What constitutes BoP? o What is BoP Crises? What do you understand by Invisibles? How does it affect BoP?
UNIT VI - EXTERNAL SECTOR What are External Commercial Borrowings (ECB)? o What does ECB constitute? o What is it required? o Who regulates it? o Who borrows from it? o Example: Corporate sector, Firms or Government
UNIT VII EXTERNAL SECTOR Capital Account Convertibility and Current Account Convertibility- India has full Current Account Convertibility but when it comes to Capital Account Convertibility, it is only partial. Should we convert to Full Capital Account Convertibility?
UNIT VI - EXTERNAL SECTOR Certain Other Laws: o MRTP Act, 1969; FERA, 1973; o FEMA, 1999
UNIT VI - EXTERNAL SECTOR Concept of Current Account Deficit (CAD) O What is it? o What is the limit of CAD? o Why India has huge CAD? o is a Is a minimum CAD necessary? o Measures taken by India to reduce CAD?
UNIT VII EXTERNAL SECTOR Appreciation/Depreciation of Rupee o How does Rupee Appreciation/ Depreciation take place? o How does Rupee Appreciation/ Depreciation take place? o How is Rupee value determined? Reasons behind Rupee appreciation or depreciation? It's Impact on domestic and external market? On imports and exports. What measures does RBI take to stabilise rupee appreciation/ depreciation? How does it impact Forex Reserves?
UNIT VI - EXTERNAL SECTOR Depreciation v/s Devaluation of Rupee What is Devaluation of Rupee? Difference between Depreciation and Devaluation of currency (in Indian - rupee) Why does a country devaluate its currency? Example - China devaluing it's currency
UNIT VI - EXTERNAL SECTOR Currency Exchange Rate o How is the Exchange Rate of a currency determined? What are the criterias considered to determine the same? Exchange rate in terms of Purchasing power parity (PPP) o What is Nominal Effective Exchange Rate (NEER), Real Effective Exchange Rate (REER)? Differences between the above two?
PRELIMS 2014 With reference to Balance of Payments, which of the following constitutes/constitute the Current Account? 1. Balance of trade 2. Foreign assets 3. Balance of invisibles 4. Special Drawing Right Select the coret answer using the code given below. Select the correct answer using the code given below A. B. C. D. 1 only 2 and 3 1 and 3 1, 2 and 4 Solution (c)
PRELIMS 2012 Consider the following statements: The price of any currency in in the: ternational market is decided by 1. World Bank 2. Demand for goods/services provided by the country concerned 3. Stability of the government of the concerned country 4. Economic potential of the country in question Which of the statements given above are correct? (a) 1, 2, 3 and 4 (b) 2 and 3 only (c) 3 and 4 only (d) 1 and 4 only Solution (b)