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A co-operative society is a voluntary association of persons, who join together for mutual benefit. Its primary motive is welfare of the members. For example, consumers may join together to provide goods at cheaper rates by establishing direct contacts with producers / manufacturers and thereby eliminating the middlemen. 

 Merits of a co-operative society: 

(a) Ease of formation: Any ten adult persons can form a co operative society. The registration procedure is simple involving a few legal formalities. 

(b) Democratic management / equality in voting status: The principle of ‘one member one vote’ prevails irrespective of the amount of capital contributed by a member. 

(c) Limited liability: The liability of the members of a co operative society is limited to the extent of the amount contributed by them as capital. The personal assets of the members are safe from being used to repay business debts. 

(d) Stable existence: It is a separate legal entity distinct from its members. Death, bankruptcy or insanity of the members does not affect its continuity. 

(e) Economy in operations: Members generally offer honorary services to the society and they procure directly from manufacturers / producers. Hence, cost of operations are low. 

(f) Support from Government: It finds support from the Government in the form of low taxes, subsidies, and low interest rates on loans.

A situation when the economy is able to produce more goods and services without a proportionate increase in employment opportunities is called jobless growth.

Dispersion is the extent to which values in a distribution differ form the average of the distribution.

Kumbkaar is ever-busy potter.

OR

Craftsperson who makes clay potteries.

Dispersion is the extent to which values in a distribution differ form the average of the distribution.

A situation when the economy is able to produce more goods and services without a proportionate increase in employment opportunities is called jobless growth.

(a) Raw silk 

(b) Cotton 

(c) Jute 

(d) Indigo 

(e) Sugar 

(f) Wool

When the variables move in opposite direction, correlation between such variables is said to be negative correlation.

For eg : when the price of a commodity rises, its demand falls.

• Railway transport. 
• Post and Telegraph.
• Port Development.  
• Water transport.

Hand spun and hand woven

Statistical tools are important for us in daily life and are used in the analysis of data pertaining to economic activities.

Statistical tools are important for us in daily life and are used in the analysis of data pertaining to economic activities.

(i) Questionnaire is easy to understand.

(ii) It provides elaborate instructions.

(iii) It provides relevant information to the field of enquiry.

Detailed Answer :

(i) Questionnaire is easy to understand.

(ii) It provides elaborate instructions.

(iii) It provides relevant information to the field of enquiry.

(iv) It provides unbiased results as the answers are not influenced by the interviewer.

Smt. Kamla Devi Chattopadhyay and Shrimali Pupul Jayakar

a. Ivory

b. Pashmina Wool

Uttar Pradesh and West Bengal

Kumbkaar is ever-busy potter.

OR

Craftperson who makes clay potteries.

a. Meenakari

b. Miniature Paining

a. Indian Handicrafts and Handlooms Museum,

b. Salar Jung Museum, Hyderabad

Hand spun and hand woven

- Rape

- Acid Attack

- Sexual Harassment

- Stalking

- Voyeurism

Relate all these to patriarchal system in Indian society.

- First Lok Adalat – 1986

- Presided over by a sitting or retired judicial officer

- Main condition is that both parties to dispute should agree for a settlement

- Decision of Lok Adalat is binding

- NO appeal his against the order of Lok Adalat.

(a) Freedom of entry and exit of firms under perfect competition – The feature ‘freedom of entry and exit of firms’ means that firms are free to enter or leave the market at any time they like. If the firms are earning abnormal profits in short run, new firms will be attracted to the industry. This will shift the market supply curve to the right which will reduce the price as well as profit. If the firms are making abnormal losses in the short run, some of the existing firms will leave the market. This will shift the market supply curve to the left which will abolish the loss by increasing the price. Thus, in the long run, all firms under perfect competition will earn only normal profits. 

(b) Non-price competition under oligopoly – In case of oligopoly, firms do not face price competition because prices of the products are more or less rigid. Once a price has been fixed, a firm will avoid changing it. Hence, price rigidity is an essential feature of oligopoly. However, there is non-price competition among firms to attract customers. 

Non-price competition is visible in following forms : 

1. Product research and development 

2. Stronger and more durable products 

3. Better packaging 

4. Easier credit terms 

5. After sales service 

6. Advertising 

7. Personal selling.

Deposits with the commercial banks which are withdraw able on demand by cheque or cash.

What a person desires to sell is exactly not the same as what other wishes to buy, in other words when both the parties( buyer & seller) do not agree to exchange each other’s goods is called as the problem of double coincidence of need. 

The producer of wheat may want shoes in exchange he may find it difficult to get a person who is willing to take the wheat. No exchange is possible if the double co-incidence of wants is not there. Money solves this problem as producer of wheat can sell wheat & get money from which he can buy shoes. He does’nt need to find a person who is ready to sell shoes & ready to buy wheat. 

LRR (Legal Reserve Ratio) refers to that legal minimum fraction of deposits which the banks are mandate to keep as cash with themselves.

Legal Reserve Ratio has two variants: 

(i) Cash Reserve Ratio, and 

(ii) Statutory Liquidity Ratio.

Cash Reserve Ratio (CRR)-It refers to cash reserves of Commercial Banks with the Central Bank as a percentage of their deposits. 

Statutory Liquidity Ratio (SLR) refers to reserves in the form of liquid assets (including) (i) cash, (ii) gold, and (iii) approved securities) with the Commercial Banks themselves, as a percentage of their total deposits. 

Both CRR and SLR are fixed by the Central Bank, and both are a legal binding for the Commercial Banks. In this sense, both CRR and SLR are legal reserve ratios.

Legal reserve ratio is legally compulsory for the banks to keep a certain minimum ratio of deposits as cash. 

It has two components:-

(a) Cash Reserve Ratio (CRR) – A part of total deposits of commercial bank is kept with central bank which is called as Cash Reserve Ratio. 

(b) Statutory Liquidity Ratio (SLR)- Another part of total deposits of commercial bank is kept by bank itself in cash is Statutory Liquidity ratio. 

Freedom of entry and exit to firms under perfect competition: The industry is characterised by freedom of entry and exit of firms. In a perfectly competitive market, there are no barriers to entry or exit of firms.

Implication: The implication of this assumption is that given sufficient time, all firms in the industry will earning just nolmal profit.

Suppose the existing firms are earning supernormal profits. Attracted by the positive profits, the new firms enter the industry. The industry"s output, i.e., market supply goes up. The price comes down New firms continue to enter till economic profits are reduced to zero.

Now suppose the existing firms are incurring losses. The films start leaving the industry. The industry's output starts falling and the price starts going up. All this continues till losses are wiped out. The remaining firms in the industry once again earn just the normal profits.

Bank money means demand deposits with the commercial banks - Demand Deposits with commercial banks are a part of Money supply. They are payable on demand & they can be drawn upon by cheque without any restriction.

Anything which is legally authorised by the government, generally accepted by general public & performing the functions of money as a medium, a measure, a standard & store is called as money. 

Commercial bank is a financial institution which performs the functions of accepting deposits from the public and making loans and investments, with the motive of earning profit. 

Money acts as a medium of exchange as it facilitates exchange through a common medium i.e. currency. With money as a medium, the two components of a transaction namely, sale and purchase can be easily separated. In other words, money eliminates the need for double coincidence of wants for an exchange to take place and can be performed independently of each other. Moreover, money has widened the domain and scope of market. Today, market is no more limited to a specific geographical location. This can be verified by the increasing popularity of online transactions. Hence, it can be concluded that money has infused commercialisation, which has raised the overall level of economic activities and has made production market-oriented.

A proportion of total deposits of commercial bank is mandatory by law to be kept with bank itself in cash is called as Statutory Liquidity Ratio.

When the primary cash deposit in the banking system leads to multiple expansion in the total deposits, it is known as money multiplier or credit multiplier.

A commercial bank accepts deposits from the general public. A part of deposits are kept with the central bank which is called as cash reserve ratio. Another proportion of bank deposits are kept with the bank itself in cash form which is known as statutory liquidity ratio. Rest part of deposits can be lent by the banks. 

Central bank is the Apex bank of all the commercial banks and financial institutions in the country. It holds the same relationship rt with the commercial banks as commercial bank holds with its customer. The central bank accepts deposits from the commercial banks and holds it as reserves for them. The commercial banks are compulsorily required to hold a part of their deposits as reserves with the central bank in accordance with the cash reserve ratio (CRR). In addition to the CRR requirements, the commercial banks hold reserves with the central bank for clearing their settlements with other banks and to fulfil their requirements of inter-bank transfers.

Any financial institution which accepts deposit from the public & gives loan & advances is called as Commercial bank.

A central bank is an apex bank of the country because it regulates the money suppl/ with a view to achieve economic stability. A central bank controls the entire banking system by controlling their operations through credit control measures such as bank rate, repo rate, reverse repo rate, cash reserve ratio etc. 

Following table shows the distinction between a commercial bank and a central bank :

A depositor will lose interest if he withdraws his fixed deposits before due date.

Rate of interest at which central bank lends to commercial banks is called as bank rate. 

The central bank is the apex institution of a country’s monetary system. The design and the control of the country’s monetary policy is its main responsibility. India’s central bank is the Reserve Bank of India. 

Central bank is an apex financial organisation which regulates & controls amount of money & credit in the economy.

(i) With a fall in CRR, the availability of credit increases and as a result the supply of money increases. 

(ii) With a rise in SLR, the availability of credit decreases and as a result the supply of money decreases. 

(iii) With a rise in bank rate, the availability of credit decreases and as a result the supply of money decreases. 

It is the rate of interest at which central bank lends to commercial banks without any collateral (security for purpose of loan).

1. Medium of Exchange 

2. Money as a unit of value 

3. Standard of deferred payment 

4. Store of value: - Under barter system storing of value in terms of money. Money occupies less space in comparison with goods. It is comparison with goods. It is durable and money is an asset and can be stored in future. Money helps people to transfer their purchasing power from present to future. So, money is a way to store the value. 

 (i) Medium of exchange 

(ii) Measure of value 

(iii) Standard of deferred payments 

(iv) Store of value Standard of deferred payment:- Deferred payment refers to those payments which are made in future. Money as standard of deferred payment has facilitated market transactions of buying, selling, pension, borrowing etc. When we borrowed money from somebody in the present we have to return both the principle as well as interest amount at future date. It is easy to make such payments in terms of money because their prices remain relatively constant compare to other commodities.