Topic Details (Notes format)

Digital Rupee and Central Bank Digital Currency (CBDC)

Subject: Economics

Book: Comprehensive Indian Economy - Additional Topics

The RBI’s digital rupee pilot explores a central bank digital currency aiming for secure digital transactions, reduced dependency on physical cash, and financial inclusion. Potential benefits include real-time settlements and lower transaction costs. However, concerns revolve around privacy, cybersecurity, and the impact on banking intermediation. For exams, link how CBDCs compare to cryptocurrency and how they might reshape monetary policy transmission.

Practice Questions

What is the main purpose of monetary policy?

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What is meant by “structural unemployment”?

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Which of the following best describes “capital formation”?

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Which of the following is NOT an example of an indirect tax?

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What does the “Human Development Index” measure?

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What is “open market operations” (OMO)?

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What is meant by “marginal propensity to consume”?

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Which of the following factors is NOT included in the calculation of Human Development Index (HDI)?

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Which of the following is NOT an example of a direct tax?

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What is the significance of “Purchasing Power Parity” (PPP)?

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