crisil -glossary and important links.pptx
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The document describes the basic structure of a market economy. It discusses how a household in Mumbai buys goods and services from Shah Communications. When the household purchases these items, it provides revenue for Shah Communications. Shah Communications then uses this revenue to pay for land, labor, and other resources, providing income back to the household. This illustrates the basic cycle of expenditures, revenues, incomes, and payments that characterize a market economy.
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- 2. • Let’s look at an example. Here we assume a basic market structure where there is one household and one firm and they operate with each other. • A household in Andheri, Mumbai, buys and consumes goods and services from Shah Communications. • When households buy goods like appliances or consume services like the internet, such purchases become revenue for Shah Communications. • Shah Communications needs to pay the various factors of production, which are mainly land and labour, that is, salary payments, rent or land dues for office space, and payments for other resources they’ve used. • When Shah Communications makes these factor payments, this goes as income back to the household. This is the basic structure of a market economy.
- 4. Important links • https://www.pfrda.org.in/ • https://irdai.gov.in/ • https://www.sebi.gov.in/ • https://www.rbi.org.in/ • https://www.crisil.com/en/home/our-analysis/reports/2019/03/securing-lifes- second-innings.html • https://www.amfiindia.com/
- 5. The market economy structure is incomplete without the government. The Government derives its revenue from the taxes paid by households and firms like Shah Communications. The Government is also a purchaser in the market for goods and services. The money spent flows to firms which pay the factors of production. The government also makes factor payments as wages for labour or cost for land. All this flows back as income to the household. Another important agent in the market economy is financial markets. A financial market is a marketplace for the sale and purchase of financial assets like shares, debentures, bonds, securities and so on. Financial markets lubricatethe economy and ease the transfer of money from one agent to another. Financial markets act as intermediaries to facilitate seamless transactions between households, firms and the government. They mobilise savings from different agents and make it available as investible funds for borrowing. And finally, economies do not operate in isolation, but interact with the rest of the world through imports and exports.
- 6. Glossary • BOJ • Bank of Japan • BoP • Balance of Payments • CAD • Current Account Deficit • CD • Certificates of Deposits • CFSR • Committee on Financial Sector Reforms • CP • Commercial Paper • CPI • Consumer Price Index • CPI-AL • Consumer Price Index for Agricultural Labourers • CPI-IW • Consumer Price Index for Industrial Workers • CPI-RL • Consumer Price Index for Rural Labourers • CPI-UNME • Consumer Price Index for Urban Non- Manual Employees • CRR • Cash Reserve Ratio • ECB • European Central Bank • FEDFUNDS • Federal Funds Rate • FDI • Foreign Direct Investment • FII • Foreign Institutional Investors • FPI • Foreign Portfolio Investment • FRBM • Fiscal Responsibility and Budget Management • GDP • Gross Domestic Product • GNI • Gross National Income
- 7. Glossary NEGS National Employment Guarantee Scheme NSO National Statistics Office NSS National Services Scheme OECD Organisation for Economic Co- operation and Development OMO Open Market Operations PSU Public Sector Undertakings QE Quantitative Easing QuaE Qualitative Easing QuaE Qualitative Easing GST Goods and Services Tax GVA Gross Value Added IBC Insolvency and Bankruptcy Code IMF International Monetary Fund IT Inflation targeting ITC International Trade Centre MPC Monetary Policy Committee MSF Marginal Standing Facility MSP Minimum Support Price RBI Reserve Bank of India RCA Revealed Comparative Advantage SEZs Special Economic Zones WPI Wholesale Price Index
- 8. Glossary NEGS National Employment Guarantee Scheme NSO National Statistics Office NSS National Services Scheme OECD Organisation for Economic Co- operation and Development OMO Open Market Operations PSU Public Sector Undertakings QE Quantitative Easing QuaE Qualitative Easing QuaE Qualitative Easing GST Goods and Services Tax GVA Gross Value Added IBC Insolvency and Bankruptcy Code IMF International Monetary Fund IT Inflation targeting ITC International Trade Centre MPC Monetary Policy Committee MSF Marginal Standing Facility MSP Minimum Support Price RBI Reserve Bank of India RCA Revealed Comparative Advantage SEZs Special Economic Zones WPI Wholesale Price Index
- 9. Glossary NEGS National Employment Guarantee Scheme NSO National Statistics Office NSS National Services Scheme OECD Organisation for Economic Co- operation and Development OMO Open Market Operations PSU Public Sector Undertakings QE Quantitative Easing QuaE Qualitative Easing QuaE Qualitative Easing GST Goods and Services Tax GVA Gross Value Added IBC Insolvency and Bankruptcy Code IMF International Monetary Fund IT Inflation targeting ITC International Trade Centre MPC Monetary Policy Committee MSF Marginal Standing Facility MSP Minimum Support Price RBI Reserve Bank of India RCA Revealed Comparative Advantage SEZs Special Economic Zones WPI Wholesale Price Index