SBI GK CAPSULE-1
GK CAPSULE FOR SBI PO 2014 Exam
Finance minister
P Chidambaram presented his interim
budget for 2014.
Fiscal deficit
for current fiscal to
be
4.6%
Revenue
deficit estimated
at 3% for current fiscal
Excise
duty on
SUVs cut from 30 to 24%,
in large and mid‐segment
cars from 27‐24% to
24‐20%
No changes
in tax laws in interim budget
Excise
duty cut
from 12 to
10 per cent in capital
goods sector to stimulate growth
Excise
duty on
mobile handset to be 6% on
CENVAT credit to encourage
domestic production
Rs 500crore
estimated requirement for implementing one‐rank‐one‐pay scheme for armed forces in
2014‐15
Rs 6000crore to rural housing fund,
Rs 2000 crore for
urban
housing fund
Rs 3711
crore for minority
affairs;
housing and urban poverty alleviation gets Rs 6000 crore
Fiscal deficit
target of 3% to be achieved by
2017
CAD will be $45 billion
in 2013‐14
Foreign exchange reserves up by $15 billion
Foodgrain production estimated at
263 million tons in 2013‐14
3 more industrial corridors — Chennai‐Bangalore, Bangalore‐Mumbai,
Amritsar‐Kolkata — under various stages of
implementation
GDP growth
rate in Q3 and Q4 of
2013‐14 will
be at least 5.2%
FDI Limits
Sr no. List of Limits in Various Sectors (In %)
1. Defence
26
2. Pension
49
3.
Insurance 49
4.
Print Media 26
5.
Civil Aviation
49
6. Public
Sec.Banks
20
7.
Private Sec.Banks 74
8.
Multi Brand 51
9. Single
Brand 100
10. Tourism
100
India GDP Forecast:
RBI pegged 2014‐15 GDP growth at a central estimate of 5.5 %
World Bank
lowers India’s GDP growth forecast for 2014‐15 at 5.7 %
ADB pegs India GDP growth rate for 2014‐15 at 5.5%
IMF projected GDP
growth for India in 2014‐15 at‐5.4%
India
ranking in different Indexes for 2013 ‐ 14:
1. Global Environment
Performance Index 2014 – 155
2. Intellectual property (IP) environment 2014 – 25 (US
ranked on the top followed by UK and France)
3. World Press Freedom Index 2014 ‐ 140 in the
list of 180 countries.
4. Nuclear material security index 2014 ‐ 23rd out of 25 countries
5. World's best countries for doing business 2014 ‐ 98th
(Irelandtopped the list).
6. Social Progress Index 2014:
102 out of 132
7. Global Hunger Index
2013 ‐63
8. World Prosperity Index 2013 – 106. Norway tops the list.
9. Global Gender Gap
Report 2013 ‐ 101. Iceland tops the list.
10. Global Peace Index 2013 – 141
11. Human
Development Report 2013– 136
12. Global Corruption Index 2013 – 94
13. Global Competitiveness Index 2013 ‐60 for 2013
(Switzerland top in this report)
14. Gender Inequality Index 2013 ‐ 132nd (UN
Human Development (Index) Report)
Some
Important Economic Terms:
1. Bond: A certificate of debt (usually interest‐bearing or discounted) that is issued by a
government or corporation innOrder to raise money; the bond issuer is required to pay a fixed sum
annually until maturity and then a fixed sum to repay the principal.
2. Balance sheet:
Record of the financial
situation of an institution on a particular date by listing its assets and the claims against those assets.
3. Balance of trade‐ The part of a nation's balance of payments that deals
with merchandise (or visible) imports or exports.
4. Closed economy:
A closed economy is one in which there are no foreign trade transactions or any
other form of economic contacts with the
rest of the world.
5. Deflation:
Deflation is the continuous decrease in prices of goods and services. Deflation occurs when the inflation rate becomes
negative (below zero) and stays there for a longer period.
6. Debenture:
Debenture is a loan issued by a firm, involving g a fixed repayment
schedule, in terms of both time and interest.
7. Debit: Money
paid out from an account either from a withdrawal or a transaction that result
in decreasing the cash balance.
8. Equity:
Equity is a one financial instrument by which
company invite the public to invest their money in the company and investor can
become a partner of the company. Generally, when the company have insufficient
money to expand its business it comes with equity shares.
9. Economic growth An
increase in the total output
of a nation
over time. Economic
growth is usually measured
as
the annual rate
of increase in a nation's real
GDP
10.Excise Tax Taxes imposed
on specific goods and services, such as cigarettes and
gasoline.
11.Exports Goods
or services produced in one nation
but sold to buyers in another nation.
12.Fiscal policy: Fiscal
policy
defines
the
use of government spending
and revenue collection to influence the economy.
13.Foreign Direct
Investment
(FDI): Investment of
foreign assets directly into
a domestic company's structures, equipment, and
organizations. It does not
include foreign investment into
the stock markets
14.Foreign Exchange
(FOREX): Foreign
Exchange (FOREX) is
the arena where a nation's currency
is exchanged for that
of another.
15. GDP: GDP stands
for Gross Domestic Product. It
is a method of measuring the size of
economy of a country. We
can
define as the total market value
of all the goods and
services produced in
a given period of time in a country.
16.GNP:
The total
value
in money of
all finished
good and services
produced in an economy
in one
full year, and all net property income from
abroad. The
GNP growth rate is
an important economic
indicator
for country’s economic
development.
17. Imports: commodities
(goods or services)
bought from a foreign
country.
18. Inflation: Inflation
is as an increase in the price
of bunch of Goods and services that projects the Indian economy.
An increase in inflation
figures occurs when there
is more demand and
less supply of the goods.
19. Mutual Fund: There are accumulation and collection of many different types of shares. It is when investors together
want to buy securities as a group, this fund can be called a mutual fund. Each and every investor of this group has a proportional stake in the
shares based on the
amount he has contributed.
20. Monetary policy: It is the process by
which the central bank, or
monetary authority
of a country controls (i) the supply of money, (ii) availability of money, and (iii) cost
of money or rate of interest.
21. National income ‐ The
amount of aggregate income
earned by suppliers
of resources employed to produce
GNP;
net national product plus government subsidies
minus indirect business taxes.
22. Per Capita Income: The
total national income divided by the
number of people
in the nation, It means
the share of each individual
when
the income from
the productive
activities is divided equally
among the citizens.
23. Sales tax Taxes paid on
the goods and services people
buy.
24. Stock A certificate
reflecting ownership of a corporation.
25. Tax: A fee
charged by a government on a product, income,
or activity. If
tax
is levied directly
on personal or corporate income,
then it is a direct tax. If
tax is levied on the price
of a
good or service, then it is called
an indirect tax.
26. VAT: VAT is the indirect tax on the consumption of the goods, paid by its original producers upon the change in goods or upon
the transfer of the goods to its ultimate consumers. It is based on the value of the goods, added by the transferor. It is the tax in relation to the difference of the value added by the transferor and not just a profit. All over the world, VAT is payable on the goods and
services as they form
a part of national GDP.
27. Wholesale Price
Index (WPI): The
Wholesale Price Index
(WPI) takes into account
the wholesale prices of identified commodities for
calculating rate of inflation.
