(i) The first rupee was introduced by Sher Shah Suri based on a ratio of 40 copper pieces (paisa) per rupee. The name was derived from the Sanskrit word Raupya, meaning silver.
(ii) Each banknote has its amount written in 17 languages (English and Hindi on the front and 15 other on the back) illustrating the diversity of the country.

(i) The IMF established Structural Adjustment Facility (SAF) in March 1986 to provide additional balance of payments assistance on concessional terms to the poorer member countries.
(ii) In December 1987, the Enhanced Structural Adjustment Facility (ESAF) was set up to augment the availability of concessional resources to low income countries.
(iii) The purpose of SAF and ESAF is to force the poor countries to undertake strong macroeconomic and structural programmes to improve their balance of payments positions and promote economic growth

(i) Increase in Money Supply: Inflation is caused by an increase in the supply of money which leads to increase in aggregate demand.
(ii) Increase in Disposable Income: When the disposable income of the people increases, it raises their demand for goods and services.
(iii) Increase in Public Expenditure: Government activities have been expanding due to developmental activities and social welfare programmes.

(i) Money as a Store of value: Savings done in terms of commodities were not permanent. But, with the invention of money, this difficulty has now disappeared and savings are now done in terms of money.
(ii) Money as a Standard of Deferred Payments: Borrowing and lending were difficult problems under the barter system. In the absence of money, the borrowed amount could be returned only in terms of goods and services.
(iii) Money as a Means of Transferring Purchasing Power: The field of exchange also went on extending with growing economic development. The exchange of goods is now extended to distant lands.

(i) John Maynard Keynes was one of the most influential economists of the 20th century.
(ii) He was born in Cambridge in1883. In addition to his work as an economist he held position as civil servant a director of the Bank of England, and leader of British delegation of negotiators at the Bretton Woods conference at points in his career.
(iii)  Economic theory based on his idea is known as Keynesian economics, and remain highly influential today, particularly in the field of macroeconomics.

1. Price Adjustments
As a result of foreign exchange outflow from a deficit country to a surplus country, there will be a fall in the money supply in the deficit country and increase in the money supply in the surplus country.
2. Interest Rate Adjustments
The contraction or expansion of money supply resulting from the BoP deficit or surplus leads to a rise or fall in the interest rates. A rise in interest rate in the deficit country will encourage investors to withdraw their funds from abroad and invest in their home country.
3. Income Adjustments
A nation with payments surplus will experience rising income which will increase imports and thereafter equilibrium is restored in Balance of Payments.
4. Capital Flows
Changes in the interest rate consequent to the BoP disequilibrium will encourage capital flows from the surplus nations to deficit nations helping restoration of the BoP equilibrium.

(1) Value of final consumer goods and services produced in a year to satisfy the immediate wants of the people which is referred to as consumption (C);
(2) Gross private domestic investment in capital goods consisting of fixed capital formation, residential construction and inventories of finished and unfinished goods which is called as gross investment (I);
(3) Goods and services produced or purchased by the government which is denoted by (G) ; and
(4) Net exports of goods and services, i.e., the difference between value of exports and imports of goods and services, known as (X - M)
(5) GNP at market prices means the gross value of final goods and services produced annually in a country plus net factor income from abroad (C + I + G + (X - M) + (R - P)).

(i) Monetary and Fiscal policies: Cheap money policy and liberal tax policy pave the way for greater profit margin and so MEC is likely to be high.
(ii) Political environment: Political stability, smooth administration, maintenance of law and order help to improve MEC.
(iii) Resource availability: Cheap and abundant supply of natural resources, efficient labour and stock of capital enhance the MEC.

1. Concentration of Wealth and Income: Capitalism causes concentration of wealth and income in a few hands and thereby increases inequalities of income.
2. Wastage of Resources: Large amount of resources are wasted on competitive advertising and duplication of products.
3. Class Struggle: Capitalism leads to class struggle as it divides the society into capitalists and workers.
4. Business Cycle: Free market system leads to frequent violent economic fluctuations and crises.
5. Production of non essential goods: Even the harmful goods are produced if there is possibility to make profit.

i) It paves way for market and investment opportunities for the member nations.
ii) It fosters co-operations in many areas including industry and trade.

Types of Indirect Taxes:
Excise Duty: Payable by the manufacturer who shifts the tax burden to retailers and wholesalers.
Sales Tax: Paid by a shopkeeper or retailer, who then shifts the tax burden to customers by charging sales tax on goods and services.
Custom Duty: Import duties levied on goods from outside the country, ultimately paid for by consumers and retailers.
Entertainment Tax: Liability is on the cinema theatre owners, who transfer the burden to cinema goers.

(i) Payfent towards past debts:
If a portion of the additional income is used for repayment of old loan, the MPC is reduced.
(ii) Non availability of consumer goods:
The multiplier theory assumes instantaneous supply of consumer goods following demand. But there is often a time lag.
(iii) Full employment situation:
Under conditions of full employment, resources are almost fully employed.
(iv) So additional investment will lead to inflation only rather than generation of additional real income.

(i) Transfer payments
(ii) Difficulties in assessing depreciation allowance.
(iii) Unpaid Services
(iv) Income from illegal activities.
(v) Production for self consumption and changing price.
(vi) Capital Gains
(vii) Statistical problems

The following are the criticisms against Say's law:
(i) According to Keynes, supply does not create its demand. It is not applicable where demand does not increase as much as production increases.
(ii) Automatic adjustment process will not remove unemployment. Unemployment can be removed by increase in the rate of investment.
(iii) Money is not neutral. Individuals hold money for unforeseen contingencies while businessmen keep cash reserve for future activities.

(i) The classical theory of employment is composed of different views of classical economists on the issue of income and employment in the economy.
(ii) Classical economists assumed that the economy operates as the live of full employment without inflation in the long period.
(iii) They also assumed that wages and prices of goods were flexible and the competitive market existed in the economy.

Barter System:
(i) Goods exchange for goods is known as Barter System.
(ii) In olden days goods were exchanged for goods and not for cash.
(iii) Barter system was introduced by Mesopotamia tribes.
(iv) Babylonian's also developed an improved barter system, where goods were exchanged for goods.

Lack of Co-ordination:
The greatest drawback of Mixedism is lack of co-ordination between public sector and private sector.
Inefficiency:
Most of the public sector enterprises remain inefficient due to lethargic bureaucracy, red tapism and lack of motivation.
Fear of Nationalization:
In mixed economy, the fear of nationalization discourages the private entrepreneurs in their business operations.

(i) Private Ownership of Property and Law of Inheritance:
The basic feature of capitalism is that all resources namely, land, capital, machines, mines etc. are owned by private individuals. The owner has the right to own, keep, sell or use these resources according to his will. The property can be transferred to heirs after death.
(ii) Freedom of Choice and Enterprise:
Each individual is free to carry out any occupation or trade at any place and produce any commodity. Similarly, consumers are free to buy any commodity as per their choice.
(iii) Free Competition:
There is free competition in both product and factor market. The government or any authority cannot prevent firms from buying or selling in the market. There is competition between buyers and sellers.