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 “quantitative easing”?

View Question

Which of the following best describes “capital formation”?

View Question

What does “primary sector” of the economy include?

View Question

Which of the following is a feature of a command economy?

View Question

What is the main objective of disinvestment in public sector undertakings (PSUs)?

View Question

What is meant by “credit rating”?

View Question

Which of the following measures is most effective in controlling inflation?

View Question

What is the concept of “invisible hand” associated with?

View Question

What is the objective of the Pradhan Mantri Jan Dhan Yojana?

View Question

What is meant by “crowding out” in economics?

View Question