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Time management is very much important in IIT JAM. The eduncle test series for IIT JAM Mathematical Statistics helped me a lot in this portion. I am very thankful to the test series I bought from eduncle.
Nilanjan Bhowmick AIR 3, CSIR NET (Earth Science)
Lave Kumar
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Under fixed fiduciary system, the government fixes a fixed amount of notes without keeping any metallic reserve. But this portion of currency must be backed by government securities, which is called fiduciary Limit. The notes issued other than fiduciary limit must be fully backed by gold or silver reserves. This system was introduced in England in1844 in the Bank charter Act of 1844. Norway and Japan also adopted this method . This system acted as a brake on the undue expansion of currency and credit in the time of prosperity. This system also provides security for the convertibility of notes.(i) Safety : This method of note issue provides safety to notes issued and acts as brake, which also provides safety to currency value.(ii) Stability : This system not only provides value stability but also provides economic stability, which is helpful for regulating internal prices and exchange rate.
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Lave
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The Peacock-Wiseman Hypothesis holds that the growth of public expenditure does not follow a smooth trend but happens in jumps or steps. The Hypothesis combines the following three effects to justify the jumpy pattern: Displacement Effect, Inspection Effect and Concentration Effect.
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The Binomial distribution is also known as Bernoulli distribution and is associated with the name of Jacob Bernoulli. A Bernoulli process is a random process in which :*The process is performed under the same conditions for a fixed and finite number of trials, say n.*Each trial is independent of other trials, i.e. the probability of an outcome for any particular trial is not influenced by the outcomes of other trails.*Each trail has two mutually exclusive possible outcomes, such as "success" or "failure", "good" or "defective", "yes" or "no", "hit" or "miss", and so on. The outcomes are usually called success and failure for convenience. The probability of success, p remains constant from trial to trail (so is the probability of failure q where q = 1 – p.P(r) = nCr pr qn–rwhere, P(r) = Probability of r success in n trails;p = Probability of success;q = Probability of failure = 1 – pr = No of success desiredand n = No of trails undertaken.
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The internal rate of return (IRR) of a project is the discount rate that would yield a net present value (NPV) of zero, i.e., the rate of interest which makes the present value of the estimated cash inflow equal to the present value of the cash outflow required by the investment.Profitability Index (PI) is a capital budgeting technique to evaluate the investment projects for their viability or profitability. Discounted cash flow technique is used in arriving at the profitability index. It is also known as a benefit-cost ratio. Calculation of profitability index is possible with a simple formula with inputs as – discount rate, cash inflows, and outflows. PI greater than or equal to 1 is interpreted as a good and acceptable criterion.Hence, the correct answer is NPV should be 0 and benefit-cost ratio 1.
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Tax rate cuts may encourage individuals to work, save, and invest, but if the tax cuts are not financed by immediate spending cuts, they will likely also result in an increased federal budget deficit, which in the long-term will reduce national saving and raise interest rates.
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Market failure is the economic situation defined by an inefficient distribution of goods and services in the free market. Furthermore, the individual incentives for rational behavior do not lead to rational outcomes for the group. Put another way, each individual makes the