DAY 2 – Economy Basics – NISM Series XV

📌 What is Economy?

👉 Economy = total money activity in a country

Example: Production, buying, selling in India

📌 GDP (MOST IMPORTANT)

👉 GDP = total value of goods & services produced in a country

👉 Simple meaning:

• Higher GDP = strong economy 💪
• Lower GDP = weak economy

📌 Interest Rate

👉 Interest rate = cost of borrowing money

Set by: Reserve Bank of India

👉 If interest rate:

• ↑ Increases → Loans expensive → Economy slows
• ↓ Decreases → Loans cheap → Economy grows

📌 Business Cycle (IMPORTANT CONCEPT)

4 stages:

• Expansion 📈 (growth)
• Peak 🔝
• Recession 📉
• Recovery 🔄

🧠 Quick Revision

• GDP = total production
• RBI controls interest rate
• Inflation = rising prices
• Economy moves in cycles

🎯 Practice Questions (Try Now)

Q1. GDP measures:

a) Inflation
b) Total production
c) Interest rate
d) Tax

Q2. Who controls interest rates in India?

a) SEBI
b) RBI
c) सरकार
d) IMF

Q3. When interest rates fall:

a) Loans become expensive
b) Loans become cheaper
c) Inflation stops
d) GDP becomes zero

DAY 3 – Financial Statements (MOST IMPORTANT TOPIC)