What are demand deposits?
Demand Deposits also known as Current Account deposits refer to those deposits that provide the depositor the liberty to withdraw money at any point of time. That is, the account holder of the demand deposits can demand these deposits at any point of time as per their discretion and convenience. Such deposits do not offer any rate of interest.
Calculate Gross Value Added at Factor Cost:
| (i) | Units of output sold (units) | 1000 |
| (ii) | Price per unit of output | 30 |
| (iii) | Depreciation(Rs.) | 1000 |
| (iv) | Intermediate cost (Rs.) | 12000 |
| (v) | Closing stock (Rs.) |
Outline the steps taken in deriving saving curve from the consumption curve. Use diagram.
| Autonomous consumption | Rs. 100 |
| Marginal Propensity to consume | Rs. 0.80 |
| Investment | Rs. 50 |
Distinguish between Revenue Expenditure and Capital Expenditure in a government budget. Give examples.
