ECONOMY by VIVEK SINGH

2021-09-12 07:20:51 Open / Comment

2021-09-11 06:47:20 Nothing relevant in the newspapers these days. If something relevant comes, it will be shared.

Those who are targeting 2022, please try to finish your basic syllabus as soon as possible.

And those who are appearing on 10th Oct 2021, I will suggest just revise, revise and revise and few mocks. Whatever strategy you are planning on 10th Oct. in the exam hall, try all those strategies in the mocks itself. For example, while attempting mock tests, some students think that this is not real exam, so attempt as many questions as possible and increase the score without being scared about the negative marking. Don't do that. Treat these mocks as real exam, and apply the strategy whatever you are planning for 10th Oct. Open / Comment

2021-09-09 07:40:35 Source: Indian Express
Sri Lanka has declared 'National Emergency' and the major reason is food crisis.

A very good and relevant article which relates with basic economic concepts also. Self explanatory. Open / Comment

2021-09-08 08:12:04 RBI news related to "Tokenization" (IE Page 15)

RBI has said that "With effect from January 1, 2022, no entity in the card transaction / payment chain, other than the card issuers and / or card networks, shall store the actual card data. Any such data stored previously shall be purged. For transaction tracking and / or reconciliation purposes, entities can store limited data – last four digits of actual card number and card issuer’s name – in compliance with the applicable standards.

Additional details:
* Card Issuers (Banks) can now offer tokenization services. Earlier only Card Networks (Mastercard/Visa) were allowed to offer tokenization services. So, Card Issuers and Card Networks will be treated as Token Service Providers (TSPs)
* Tokenisation of card data shall be done with explicit customer consent

To understand tokenization, pleaser refer: https://t.me/VivekSingh_Economy/3169 Open / Comment

2021-09-08 07:56:42 Special Economic Zones (SEZ):

SEZ is a specifically delineated duty-free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs. The rest of the country area other than SEZs are called Domestic Tariff Area (DTA). Goods and services going from DTA to SEZ shall be treated as exports and goods coming from the SEZ area into DTA shall be treated as if these are being imported.

The present rule is: "SEZ units may import/procure goods and services from DTA without payment of import duty. But when SEZs are selling goods into DTA then Import/Customs Duty is imposed".
So, basically DTA —-> SEZ no import duty on SEZs side
SEZ —--> DTA there is import duty on DTAs side

But as per today's news (Hindu Page 12), The government is considering a proposal to allow producers in SEZs to sell their output to the domestic market (DTA) without treating them as imports by DTAs. So it will basically remove the import duty in case of SEZ——> DTA sale. Open / Comment

2021-09-05 07:41:58 With reference to Q. 349 in ECO MCQ 550 PDF

Consider the following statements regarding the "Public Finance Management System (PFMS)":

(i) It comes under the office of Controller General of Accounts, Ministry of Finance
(ii) It comes under Department of Expenditure, Ministry of Finance
(iii) It is an end to end online solution for processing payments, reconciliation and reporting of central schemes
(iv) It tracks fund utilization up to the last mile for central schemes

Actually, Public Finance Management System (PFMS) is under the office of Controller General of Accounts (CGA), in the Department of Expenditure, Ministry of Finance. So, both (i) & (ii) statements are correct. But in the question in the Eco 550 pdf, there was no option which included both (i) & (ii) statement.

So, this is just for your information and update.
And (iii) & (iv) are also correct.

And by the way, thanks for your lovely wishes on Teachers Day which has started pouring since morning. Its difficult for me to reply individually, so forgive me. I hope u understand. Open / Comment

2021-09-05 07:30:19 The answer to the above question is (d).
All the statements are correct.

This is a very technical concept and difficult to explain here on chat.

IMF allocates SDRs only to member Country Governments and private entities cannot hold it. If a country is holding SDRs, they cannot pay for the import of goods in SDRs. But they can sell SDRs and purchase other widely used currencies and then they can purchase goods from those currencies (dollars, euro etc..). Since only few currencies are acceptable worldwide and due to limited amount of those currencies, SDRs were created to increase global liquidity. IMF deals with member Governments in SDR allocation and hence private parties are not allowed to keep it and mostly trade happens through private parties, so SDRs have not been allowed for trade for goods/services and other operational issues in allocation to private entities. Open / Comment

2021-09-04 06:25:21 Question of the day:

Consider the following statements regarding IMF's Special Drawing Rights (SDRs):

(i) SDRs are allocated only to member countries mostly based on their economic size
(ii) SDR allocation by IMF acts as debt for the member countries Government
(iii) SDRs can be exchanged with other currencies but cannot be used to purchase goods in the international market
(iv) SDR allocation provides global liquidity and supplements member country's forex reserves
(v) SDRs are called paper gold and it cannot be held by private entities
(vi) The value of SDR depends on five currencies i.e. US dollar, Yen, Pound, Euro and Yuan Open / Comment

2021-09-04 05:46:26 Open / Comment