Economics

 India will withdraw its highest denomination currency note from circulation, the Reserve Bank of India said on Friday(May18,2023). The 2,000-rupee note, introduced into circulation in 2016, will remain legal tender but citizens have been asked to deposit or exchange these notes by September 30, 2023. The value of 2000-rupee notes in circulation is Rs 3.62 lakh crore ($44.27 billion). This is about 10.8% of the currency in circulation. Advantages of withdrawal of₹2000 banknotes (i)  To check the fake currency (ii)  Less impact of the economy due to printing of notes stopped from 2018-19 (iii) Also curb on hoarding of banknotes and  (iv)  Strong flow of digital banking Disadvantages of withdrawal of ₹2000 banknotes (i)  Loss the credibility of bank notes due to frequently withdraw of currency for circulation (ii)  People always in fear for deposits money in home for house wifes (iii)  As the increasing the financial fraud through digit mode of tran...

 Q1. Calculate national income by income method and expenditure method from the given data- Particulars                                                                                                                    Rs. inCrore        (i)             Factor income from abroad                                                        10     (ii)           ...

 A.  Product Method/ Output Method? Value Added Method Product method or value added method is that method which measure domestic income by estimating the contribution of each producing enterprise to production in the domestic territory of the country in an accounting year. GVO MP = Sales + ∆ in Stock where  GVO MP  = Gross Value of Output at market price  In other wors,  GVO MP = PRICE X OUTPUT + ∆ IN STOCK GVA MP   = GVO MP – Intermediate Consumption Note -  GVA MP =GDP MP   NVA FC = GVA MP – Depreciation – Net Indirect Taxes Value of Output = Sales + Change in stock (GVA MP )Value Added = Value of output – Value of intermediate goods NVA MP = GVA MP – Depreciation  Precautions in the Estimation of National Income by Product Method The following precautions should be taken while estimating national income by product method -  (i)              ...