Concept of Money Supply and High Powered Money

Money supply is the entire stock of currency and other liquid instruments in a country’s economy as of a particular time. The money supply can include cash, coins and balances held in checking and savings accounts.

word-cloud-for-money-supply_gg63129405Money Supply can be estimated as narrow or broad money.

There are four measures of money supply in India which are denoted by M1, M2, M3 and M4. This classification was introduced by the Reserve Bank of India (RBI) in April 1977. Prior to this till March 1968, the RBI published only one measure of the money supply, M or defined as currency and demand deposits with the public. This was in keeping with the traditional and Keynesian views of the narrow measure of the money supply.

 

 

M1 (Narrow Money) consists of:

(i) Currency with the public which includes notes and coins of all denominations in circulation excluding cash on hand with banks:

(ii) Demand deposits with commercial and cooperative banks, excluding inter-bank deposits; and

(iii) ‘Other deposits’ with RBI which include current deposits of foreign central banks, financial institutions and quasi-financial institutions such as IDBI, IFCI, etc., other than of banks, IMF, IBRD, etc. The RBI characterizes as narrow money.

M2. which consists of M1 plus post office savings bank deposits. Since savings bank deposits of commercial and cooperative banks are included in the money supply, it is essential to include post office savings bank deposits. The majority of people in rural and urban India have preference for post office deposits from the safety viewpoint than bank deposits.

M3. (Broad Money) which consists of M1, plus time deposits with commercial and cooperative banks, excluding interbank time deposits. The RBI calls M3 as broad money.

M4.which consists of M3 plus total post office deposits comprising time deposits and demand deposits as well. This is the broadest measure of money supply.

High powered money – The total liability of the monetary authority of the country, RBI, is called the monetary base or high powered money. It consists of currency ( notes and coins in circulation with the public and vault cash of commercial banks) and deposits held by the Government of India and commercial banks with RBI. If a memeber of the public produces a currency note to RBI the latter must pay her value equal to the figure printed on the note. Similarly, the deposits are also refundable by RBI on demand from deposit holders. These items are claims which the general public, government or banks have on RBI and are considered to be the liability of RBI.

high powered money

RBI acquires assets against these liabilities. The process can be understood easily if we consider a simple stylised example. Suppose RBI purchases gold or dollars worth Rs. 5. It pays for thr gold or foreign exchange by issuing currency to the seller. The currency in circulation in the economy thus goes up by Rs. 5, an item that shows up on the liabilityside of RBI’s Balance sheet. The value of the acquired asset, also equal to Rs. 5, is entered under the appropriate head on the Assets side. Similarly, the RBI acquires debt bonds or securities issued by the government and pays the government by issuing currency. It issues loans to commercial banks in a similar fashion.


 

04-05.02.18 Arunachal Pradesh(APPSC) Current Affairs

NORTH-EASTERN STATES

  • Arunachal Pradesh nods to much awaited Advertisement Policy 2018

 

  • Arunachal Pradeshgave a nod to much awaited “Arunachal Pradesh Advertisement Policy 2018.” State Cabinet headed by Chief Minister Pema Khandu approved Arunachal Pradesh Advertisement Policy 2018 which will enable the government to make payment of government advertisement bills to media houses on a timely basis.
  • In another decision, the Cabinet approved the release of gratuitous relief of Rs 2,000 for all contingency and casual workers serving under Arunachal Government.
  • Apart from approving the creation of 25 posts of Assistant Professors for government colleges of the state under Rashtriya Uchchatar Shiksha Abhiyan (RUSA), the Cabinet also approved enhancement of salary of teachers working under SSA and RMSA on contractual basis up to 22% with effect from April 1, 2018.
  • The Cabinet directed the education department to ensure that salaries are disbursed by the first week of the subsequent month through the Aadhaar-based DBT through PFMS method. 

    INTERNATIONAL

     

    • World Cancer Day: 4 February

     

    • World Cancer Day is an international day marked on February 4 to raise awareness of cancer and to encourage its prevention, detection, and treatment.

     

    • World Cancer Day was founded by the Union for International Cancer Control (UICC) to support the goals of the World Cancer Declaration, written in 2008.

     

    • The primary goal of the World Cancer Day is to significantly reduce illness and death caused by cancer by 2020.

     

    • The theme for the World Cancer Day 2016-2018 is ‘We can. I can.’

     

    • Nepal gets a high Rs. 650 crore outlay

     

    • India’s annual financial allocation to Nepal for 2018-19 has nearly doubled under the Union Budget presented on February 1.

     

    • The External Affairs Ministry has been allocated a total Rs. 15,011 crore, which indicates a marginal increase of Rs. 1,321 crore over the previous year’s grant.

     

    • For India’s development and diplomatic engagement under the ‘Neighbourhood First’ policy, the Budget has allocated Rs. 5545 crore.

     

    • Bhutan is traditionally the largest recipient of Ministry’s allocation.

     

     

    NATIONAL

     

    • Venkaiah Naidu to Inaugurate First International Kala Mela

     

    • The Vice President of India Shri M. Venkaiah Naidu will inaugurate the First International Kala Mela in New Delhi on February 4.
    • The Minister of State for Culture (Independent Charge) and Environment, Forest and Climate Change, Dr. Mahesh Sharma will also grace the occasion.

     

    • Lalit Kala Akademi, the premier institution for the promotion of Art and Culture is organizing it at Indira Gandhi National Centre for the Arts, New Delhi (IGNCA).

     

    • Environment Ministry launches ‘Green Good Deeds’ campaign

     

    • Environment Minister Dr Harsh Vardhan has appealed to the teaching community to join the “Green Good Deeds” campaign, launched by his Ministry to sensitise the people about climate change and global warming.

     

    • The Minister reminded the teachers of their “Green Social Responsibility similar to corporate Social Responsibility (CSR).

     

    • CRISIL, SIDBI Launch India’s First MSE Sentiment Index

     

    • The Union Minister for Finance and Corporate Affairs Shri Arun Jaitley launched CriSidEx , India’s first sentiment index for micro and small enterprises ( MSEs) developed jointly by CRISIL & SIDBI.

     

    • CriSidEx is a composite index based on a diffusion index of 8 parameters and measures MSE business sentiment on a scale of 0 (extremely negative ) to 200 ( extremely positive) .

     

    • The parametric feedback was captured through a survey of 1100 MSEs in November –December.

     

    • CriSidEx will have 2 indices , one for the ‘survey quarter’ and another for the ‘next quarter’ once a trend emerges after few rounds of the survey , providing independent time series data.

     

    • The crucial benefit of CriSidEx is that its readings will flag potential headwinds and changes in production cycles and thus help improve market efficiencies and by capturing the sentiment of exporters and importers , it will also offer actionable indicators on foreign trade.

     

    • India’s biggest floating island released in Neknampur lake

     

    • On the occasion of World Wetland Day, city-based NGO Dhruvansh has introduced biggest floating island of India at Neknampur Lake, Hyderabad.
    • The duo of Dhruvansh NGO, Madhulika and Neeraj Singh started Neknampur restoration programme in June 2016 adopting various cost effective methodologies to clean the lake.
    • After successful introduction of 10×10 feet floating islands last year, the NGO introduced 2,500 square feet floating island with 3,500 wetland plants floating on this platform.

     

    • “A Century is Not Enough”: Autobiography of Sourav Ganguly

     

    • Former Team India captain Sourav Ganguly’s autobiography is soon-to-be-published and it is named “A Century is Not Enough”.

    • The book is co-authored by Gautam Bhattacharya and published by Juggernaut Books.

     

    • The book covers the ups and downs in more than a decade long career of the former Indian captain fondly called ‘Dada’.

     

    ·        Railways Ministry may introduce dynamic pricing system

     

    • The Railways Ministrythe current flex-fare system and is considering introducing a dynamic pricing system for train tickets, Railway Minister Piyush Goyal has said. Under dynamic pricing system, fares will be decided as per the season and demand.

     

    • The Fares will be automatically adjusted via artificial intelligence, algorithms or technology, to help trains have more occupancy.

    ·        India Lifts U-19 World Cup 2018

     

    • India defeated Australia to lift the Under 19 World cup for the fourth time.
    • The Men in Blue defeated the three-time champions Australia at Bay Oval, New Zealand.

     

    • Manjot Kalra scored a sensational unbeaten century and was named Man of the Match.

     

    • Shubman Gill was declared man of the series.

     

BIOTIC INTERACTION

 

The interaction between the organisms is fundamental for its survival and functioning of ecosystem as a whole.

Type of Biotic Interaction

  1. Mutualism:

both species benefit.

Example: in pollination mutualisms, the pollinator gets food (pollen, nectar), and the plant has its pollen transferred to other flowers for cross-fertilization (reproduction).

 

  1. Commensalism:

one species benefits, the other is unaffected.

Example: cow dung provides food and shelter to dung beetles. The beetles have no effect on the cows.

 

  1. Competition:

both species are harmed by the interaction.

Example: if two species eat the same food, and there isn’t enough for both, both may have access to less food than they would if alone. They both suffer a shortage of food

 

  1. Predation and parasitism:

one species benefits, the other is harmed.

Example : predation—one fish kills and eats ..parasitism: tick gains benefit by sucking blood; host is harmed by losing blood.

 

  1. Amensalism :

One species is harmed, the other is unaffected.

Example: A large tree shades a small plant, retarding the growth of the small plant. The small plant has no effect on the large tree.

 

  1. Neutralism :

There is no net benefit or harm to either species. Perhaps in some interspecific interactions, the costs and benefits experienced by each partner are exactly the same so that they sum to zero

Harappan art 2500 1800 BC

  • Also known as the bronze age
  • Architecture refers to designing of and construction of buildings where are the sculpture is a three-dimensional work of art
  • In architecture ,various types of materials are used that is a stone , wood, glass, metal  etc .where as sculpture is made of single piece of material.
  • Architecture involves study of engineering And Engineering Mathematics and depends upon measurements, where as sculpture involves creativity and imagination , may not depend on measurements.

I-SEALS

  • Are a square or rectangular or circular or triangular piece of material mainly stone with an average size of 2”x2” .dominantly square seals were found on them ,we find pictographic scripts along with animal Impressions which are yet to be deciphered.
  • Seals are made up of steatite (a river soft stone ) . Evidences of Copper Gold and Ivory seals has also been found in some instances
  • 5 signs or symbols on an average are present on a seal
  • Direction of writing is right to left
  • Seals are decorated with animal motif such as Unicorn bull , rhinoceros ,tiger ,elephant, goat, buffalo, etc (except cow)
  • Inscription of human figure are present on both side of the seals,even in some cases they are present on all 3 sides.

Significance /purpose of seal

  • mainly used as unit of trade and Commerce
  • Also used as amulets for productive and spiritual purpose(mainly Copper),dead bodies found had a hole for wearing them
  • Also used as an educational tool
  • Example Pashupati seals and Unicorn seals

II -Terracotta figures (sculptures)

  • Terracotta are fired baked clay
  • These figures are handmade using punching methods
  • For example mother goddess ,toys cards with wheels, birds and animals etc

III-Bronze sculptures

  • Bronze casting was practised on a wide scale under Harappan art
  • The technique used for Casting is known as “lost wax technique”
  • Under this technique at first wax figures are covered with a coating of clay and allowed to dry. Then it is heated and molten wax is allowed to drain out through a tiny hole at the bottom of the clay cover .the hollow mould is then filled with bronze or any other metal . Once the metal is cooled the clay is removed
  • Evacuations where it was prominent
  1. Kalibangan presently Rajasthan
  2. Daimabad presently Maharashtra
  3. Harappa

Example -Bronze dancing girl

It is a naked girl wearing only ornaments which include bangles , armlets  & necklace the left hand is on the hip. It is made using lost wax technique

Others stone sculpture

  • Bearded priest
  • Male torso (red sandstone)

IV-  POTTERY

  • Red and black pottery(painted pottery)
  • It consists of mainly wheel made wares. Very few are handmade
  • The more common is plain pottery
  • Under red and black pottery red colour was used to paint the background and black colour to draw design of trees, birds, animals, human figures and other geometrical patterns

Uses of pottery

  • For household purpose (storage of water ,food grains )
  • For decoration -miniature vessel used for decoration
  • Used for perforated pottery
  • Large hole at the bottom and small holes all over the wall and was probably used for straining liquor .

V-ORNAMENTS

  • They are made up of a large variety of material ranging from precious metals, gemstones, bone and even baked clay
  • Necklace armlets and finger rings were common and worn by both males and females .while women wore a earings and anklets evidences of dead bodies Burried along with ornaments have also been found.
  • Harrapans were also conscious of fashion ( as different hairstyles ,wearing of a beard etc have been found
  • Cinnabar was used as a Cosmetic lipstick, Face paints and even eyeliner were also known to them.
  • Spinning of cotton and wool was common among Harappan

VI- EXTENSIVE TOWN PLANNING

  • Houses were build of baked bricks, of fixed size.
  • Use of stone and wood in building has also been found
  • The concept of two storied houses were also present
  • Public Bath was a common feature example great bath at Mohenjo Daro ,it had galleries and rooms on all sides.
  • Granaries was another important creation which used to be located in Citadel .there construction was so intelligent that strategic conduct and platform can be found.
  • Drainage system of Harappa was note worthy .there was a temporary cover to drains,underground
  • Roads use to cut at right angles

 

Classification of Eco-system

 

  1. Natural Ecosystem-

Terrestrial- Forests, Grasslands, Deserts

Aquatic- Fresh Waters, Saline Waters, Marine Waters

Ecotone :- a zone of junction between two or more diverse ecosystems. For e.g. the mangrove forests represent an ecotone between marine and terrestrial ecosystem.

Characteristics of Ecotone

It may be very narrow or quite wide. It has the conditions intermediate to the adjacent ecosystems. Hence it is a zone of tension.

It is linear as it shows progressive increase in species composition of one in coming community and a simultaneous decrease in species of the other out going adjoining community.

A well developed ecotones contain some organisms which are entirely different from that of the adjoining communities.

Sometimes the number of species and the population density of some of the species is much greater in this zone than either community. This is called edge effect For example the density of birds is greater in the mixed habitat of the ecotone between the forest and the desert.

Arunachal Pradesh Geographical Location

 

The state is located in the extreme Northeastern corner of the country. It is situated between latitude 26° 30′ N and 29° 30 ‘ N and longitude 91° 30′ E and 97° 30’ E. It shares its border with the neighboring countries of Bhutan in the West, China (Tibet) in the North and Northeast, Myanmar in the East and Southeast and the Indian states of Assam and Nagaland in the South.  Arunachal Pradesh is generally a hilly region.

The elevation of the hills ranges from 60 meters to over 7300 meters (GORICHEN peak in West Kameng). The territory falls in the outer Himalayas and Patkoi Ranges. It is endowed with wide topographical variations, vegetations and wild life along the greater part of the length of the territory the characteristics Siwalik type formation of Himalayan Mountains is native.

The definition of Siwalik ranges loses its typical character at the point of the valley head and is replaced by series of low hills with easier slopes. These hills gradually merge into the Patkoi hill ranges which separate India & Burma. The general tendency of the hills is found sloping towards the plains of Assam. These hill ridges of Arunachal Pradesh are situated in a very haphazard manner.

As soon as one ridge ends, the other starts either in opposite direction or parallel. At these intervals the wide and narrow valleys come into existence. Because of these hill ridges and the valleys, the surface of Arunachal Pradesh is found variegated almost everywhere which also results into numerous geographical isolation of places caused by various rivers and streams traversing the region and depositing the flowing detritus enroute in valley and again at the foothills

Topography

Topography wise Arunachal Pradesh has been divided into 4 distinct physiographical divisions:

  1. The Himalayan Ranges
  2. The Mishmi Hills
  3. The Naga-Patkoi Ranges and
  4. The Brahmaputra Plains

Arunachal Pradesh is the eastern stretch of the Himalayas and all the 3 sections of the Himalayas are represented here . Every division has a different geology and tectonic history

From the Brahmaputra Plains at an average elevation of 100m, the Himalayas attain an elevation of 7089m. The Himalayas can be further sub-divided into physio-tectonic Zones:

(i) The sub-Himalayan zone rising abruptly from the Brahmaputra Plains along a tectonic plane-the Foot Hill Fault. It is about 10 -20 km wide but narrows down to 1 -2 km in the Dibang valley.

(ii) The lesser or Lower Himalayas: Elevation 2500-4000 m and 80-90 km wide. Take a syntaxial bend towards SE to abut against Mishmi Hills. Its southern limit is defined by the Main Boundary Fault/Thrust.

(iii) The Greater or Higher Himalayas. A zone of very high relief with heights greater than 6000m having precipitous slopes and deep gorges. This zone is generally devoid of vegetation. Its southern limits are defined by the Main Central Thrust.

(iv) Trans-Himalayan Tibetan or the Thethyan zone: It is the northernmost zone which is about 30-40 km wide and of low relief (Elevation 3000 – 6000m). All important Passes are located in this zone .

The Eastern Himalayas that cover 18,518 sq. km area of East and West Siang districts is almost wholly a rugged mountainous terrain extending over the central region of Arunachal Pradesh. The region has been described as ‘an intricate labyrinth of precipitous, rocky and high hills and mountains, with beautiful green valley’s drained by innumerable rivulets and mighty rivers cascading down from upper elevations. The tangle of hills and mountains throwing a series of spurs and towering to majestic heights of eternal snow is the most imposing topographic feature of Siang.

 

subsidies, MSP, PDS, FOOD SECURITY

yojna managing inflation aug 2010 here read FOOD INFLATION IN INDIA: CAUSES AND REMEDIES
https://docs.google.com/file/d/0B_FR6Jkv0z2cNDFuTDdBRnA5YkE/edit?usp=sharing 

 krukshetra tribal development nov 2010here read sucsess stories how farmer get a better prise
https://docs.google.com/file/d/0B_FR6Jkv0z2cU3diSVlkVmNKOTA/edit?usp=sharing 

 yojna monsoon july 2012 here read monsoon and fool inflation
https://docs.google.com/file/d/0B_FR6Jkv0z2cZENhRERWMkJhdHc/edit?usp=sharing

rest there are certain article reports and no doubt ignou booklets there links are
  FOOD SECURITY- TPDS
https://docs.google.com/file/d/0B_FR6Jkv0z2cSTlVcXQ3dDVEV0k/edit?usp=sharing 


Chandrayaan-1

Launch: October 22, 2008             Site: Satish Dhavan Space Centre, Sriharikota

The objectives of the programme were:

  1. To develop and orbit a spacecraft around moon using an Indian-made launch vehicle.
  2. To prepare a three-dimensional atlas of both the near and the far side of the moon.
  3. Chemical and mineralogical mapping of the entire lunar surface.
  4. To study the impact of Moon Impact Probe on the surface of the moon as a fore-runner to future soft landing missions.

NASA’s Moon Mineralogy Mapper (M3) had on Chandrayaan-1 had detected water on the surface of moon. The mission was expected to last two years. However, the communication with the satellite was lost on 29 August 2009 and the mission was declared over. It lasted for 312 days and achieved 95 percent of its objectives.

Chandrayaan-1 was selected by the American Institute of Aeronautics and Astronautics (AIAA) as one of the recipients of its annual AIAA SPACE 2009 awards for contributions to space science and technology.

Read moreChandrayaan-1

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