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Last-Minute Economy

Highest-yield economy facts for final revision: key terms, RBI rate structure, budget and deficit terms, and top schemes in compact tables

CAPF wiki•2 min read•7 sections

At a glance

SubjectEconomy

One screen per section. Cover the right column and test yourself.

Key terms

Term	Meaning
GDP	Value of goods and services produced within a country
GNP	GDP plus net income from abroad
Inflation	Sustained rise in the general price level
Deflation	Sustained fall in the general price level
Stagflation	High inflation with stagnant growth and high unemployment
CPI	Consumer Price Index; the RBI's inflation target measure
WPI	Wholesale Price Index
Fiscal policy	Government taxation and spending
Monetary policy	RBI control of money supply and interest rates

Tool	What it is
Repo rate	Rate at which RBI lends short-term to banks
Reverse repo rate	Rate at which RBI borrows from banks
Bank rate	Long-term lending rate (no repurchase)
MSF	Marginal Standing Facility; emergency overnight borrowing
CRR	Cash Reserve Ratio; share of deposits kept with RBI
SLR	Statutory Liquidity Ratio; share kept in liquid assets
MPC	Monetary Policy Committee (6 members) sets the repo rate

Inflation target: 4 percent CPI, band of 2 to 6 percent.

Term	Formula / meaning
Fiscal deficit	Total expenditure minus total receipts excluding borrowings
Revenue deficit	Revenue expenditure minus revenue receipts
Primary deficit	Fiscal deficit minus interest payments
Budget (Art 112)	Annual Financial Statement
Fiscal year	1 April to 31 March
FRBM Act	Targets fiscal discipline
Finance Commission (Art 280)	Tax devolution; every 5 years

Scheme	Purpose
Pradhan Mantri Jan Dhan Yojana	Financial inclusion (zero-balance accounts)
MGNREGA	100 days of guaranteed rural wage employment
Ayushman Bharat (PM-JAY)	Health insurance for secondary and tertiary care
PM-KISAN	Income support to farmers
Ujjwala Yojana	Free LPG connections to poor households
PM Awas Yojana	Housing for all
Atmanirbhar Bharat	Self-reliance and domestic manufacturing
Make in India	Boost manufacturing and FDI

Term	Meaning
FDI	Lasting interest and management control in an enterprise
FPI / FII	Short-term portfolio investment (securities), exits quickly
Balance of Payments	Record of all external transactions
Current account deficit	Imports of goods, services exceed exports
Forex reserves	Held by the RBI; cushion for external shocks

GST: Constitution 101st Amendment, 2016; effective 1 July 2017; "one nation, one tax".
NITI Aayog replaced the Planning Commission in 2015 (think tank, not a funding body).
Repo rate up cools inflation; repo rate down revives growth.
Direct taxes (income, corporate) versus indirect taxes (GST, customs).