Key Concepts in Business Economics and National Income
Joint Stock Company Fundamentals
A Joint Stock Company is a voluntary association of individuals who contribute capital by purchasing shares to carry out business activities on a large scale. It is created under the Companies Act and possesses a separate legal entity from its members. Its main objective is to earn profit efficiently and professionally. The shareholders are the owners, while the Board of Directors manages the company.
Characteristics of a Joint Stock Company
- Separate Legal Entity: It
RBI Supervision, Globalisation Effects and Caste Politics in India
Economics
Reserve Bank of India Supervision
The Reserve Bank of India supervises the functions of banks in several ways:
- Reserve requirements: Commercial banks must hold a portion of their cash as a reserve with the RBI. The RBI ensures that banks maintain a minimum cash balance from the deposits they receive.
- Directed lending and inclusion: The RBI monitors that banks grant loans not only to profit-making business owners and traders, but also to small industries, small-scale cultivators, and small
Comprehensive Analysis of Indian Economic Policies and Market Structures
The Role and Functions of SEBI in India
Introduction: The Securities and Exchange Board of India (SEBI) is the regulator of the securities market in India. It was established to protect investor interests, regulate the market, and ensure transparency and fairness.
Key Roles of SEBI
- Investor Protection: SEBI safeguards investors from unfair practices, frauds, and malpractices in the securities market.
- Market Regulation: It regulates stock exchanges, brokers, and other intermediaries to ensure smooth
Core Macroeconomic Models: IS-LM-PC, Phillips Curve, and Key Laws
The natural rate of unemployment is a function of the firm’s markup and non-labour related cost, 𝑚, the labour market characteristics, 𝑧, and the strength of the effect of unemployment on wages, alpha–> un=(m+z)/alpha Y EXPLICAMOS EL CAMBIO
Potential output,Yn, is a function of the natural employment level, Nn, which depends on the natural rate of unemployment: Yn=Nn=L(1-un)Y EXPLICAMOS EL CAMBIO
b) Analyse the policy’s short-run effects. SOLUTION: Initially, the economy is in equilibrium
Read MoreMoney Market Instruments: Characteristics and Function
The term “Money Market” is somewhat of a misnomer. Currency itself is not traded; rather, the securities in the money markets are short-term with high liquidity, making them close substitutes for money.
Money Markets Defined
Key characteristics of money market securities include:
- Usually sold in large denominations (e.g., $1,000,000 or more).
- Low default risk.
- Mature in one year or less from their issue date, though most mature in less than 120 days.
Money Markets Versus Banks
The banking industry
Read MorePublic Enterprises in India: Evolution, Reforms, and Models
Rationale and Evolution of Public Enterprises
Question 1: Discuss the rationale and evolution of Public Enterprises in India since independence.
Answer:
Public Enterprises (PEs) in India, also known as Public Sector Undertakings (PSUs), were established with specific rationales that evolved over different phases since independence.
Rationale for Public Enterprises
- Socialistic Pattern of Society: Inspired by the Nehru-Mahalanobis model, PEs were seen as instruments for achieving a socialist society with