MPSC Mains Paper IV- Economy

Repo and reverse repo transactions The repurchase agreement (repo or RP) and the reverse repo agreement (RRP) are key tools used by many large financial institutions, banks, and some businesses. These short-term agreements provide temporary lending opportunities that help to fund ongoing operations. The Federal Reserve also uses the repo and reverse repo agreements as … Read more

Control of inflation: monetary, fiscal and direct measures Monetary Measures The government of a country takes several measures and formulates policies to control economic activities. Monetary policy is one of the most commonly used measures taken by the government to control inflation. In monetary policy, the central bank increases rate of interest on borrowings for … Read more

Money multiplier The monetary multiplier is a measurement of the potency of central bank stimulus in the economy. It is a metric that is closely watched by governmental agencies and their economists. Every time the government thinks that it needs to kick-start the economy, it looks to the multiplier to help decide how much stimulus … Read more

Problems of Co-operatives in Maharashtra Lack of co-ordination Another point may be made about institution building. This is the need for co-operative banks and commercial banks, especially at the lower levels, to share their experience and work together in matters such as formulation of schemes, recoveries and co-ordination of activities. Such an attitude is absent … Read more

Co-operative institutions in Maharashtra As per the lines of the Central Government, Maharashtra Government has also identified the importance of the co-operative movement as the best source through which to apply it for rural development, people’s empowerment and poverty alleviation programme. The basic nature of the co-operative societies is to encourage the ‘values of self-help, … Read more