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 meant by “stagflation”?

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

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What is meant by “marginal propensity to consume”?

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What is “inclusive growth”?

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Which of the following best describes “capital formation”?

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What is meant by “crowding out” in economics?

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

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What is meant by “structural unemployment”?

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What is the term for the ability of an economy to produce more output from the same inputs?

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What is the main purpose of monetary policy?

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