Skip to content
geeksforgeeks
  • Tutorials
    • Python
    • Java
    • Data Structures & Algorithms
    • ML & Data Science
    • Interview Corner
    • Programming Languages
    • Web Development
    • CS Subjects
    • DevOps And Linux
    • School Learning
    • Practice Coding Problems
  • Courses
    • DSA to Development
    • Get IBM Certification
    • Newly Launched!
      • Master Django Framework
      • Become AWS Certified
    • For Working Professionals
      • Interview 101: DSA & System Design
      • Data Science Training Program
      • JAVA Backend Development (Live)
      • DevOps Engineering (LIVE)
      • Data Structures & Algorithms in Python
    • For Students
      • Placement Preparation Course
      • Data Science (Live)
      • Data Structure & Algorithm-Self Paced (C++/JAVA)
      • Master Competitive Programming (Live)
      • Full Stack Development with React & Node JS (Live)
    • Full Stack Development
    • Data Science Program
    • All Courses
  • Accountancy
  • Business Studies
  • Economics
  • Organisational Behaviour
  • Human Resource Management
  • Entrepreneurship
  • Marketing
  • Income Tax
  • Finance
  • Management
  • Commerce
Open In App
Next Article:
Consumption Goods and Capital Goods
Next article icon

What is Factor Income and Transfer Income?

Last Updated : 21 Jul, 2023
Comments
Improve
Suggest changes
Like Article
Like
Report

Macroeconomics is a part of economics that focuses on how a general economy, the market, or different systems that operate on a large scale, behaves. Macroeconomics concentrates on phenomena like inflation, price levels, rate of economic growth, national income, gross domestic product (GDP), and changes in unemployment.

“Macroeconomics is that part of economics which studies the overall averages and aggregates of the system”. – KE Boulding

Factor Income

The income received by factors of production for rendering factor services in the production process is known as Factor Income. Here, factors of production are the primary inputs such as land, labour, capital, and entrepreneur required for the production of goods and services. For example, wages, rent, profit, and interest. While determining the National Income of an economy, factor income received by its normal residents is also included. 

Transfer Income

The income received by an individual without rendering any productive service in return is known as Transfer Income. Transfer Income is a unilateral concept and is not included in National Income, as it does not involve the production of goods and services. For example, Old age pension, pocket money, gifts, scholarship, etc. Transfer Income can be received either from abroad or within the domestic territory of a country. For example, Taxes paid to the government of a country are the transfer incomes, as they receive taxes without rendering any productive service in return. Similarly, subsidies provided to the citizens by the government are transfer payments, as they do not get any productive service in return.  

Transfer can be of two types: Capital Transfer and Current Transfer. 

Basis

Current Transfer

Capital Transfer

MeaningA transfer that is made out of income is known as a current transfer.A transfer that is made out of the wealth of the payer is known as a capital transfer. 
NatureGenerally regular in nature.Generally irregular in nature. 
Meant forThese are meant for consumption purposes.These are meant for capital formation.
ExampleGifts, Old age pensions, Unemployment allowance, etc.War damages, Investment Grant, Capital Gains tax, etc. 

Factor Income Vs Transfer Income

Basis

Factor Income

Transfer Income

MeaningThe income received by factors of production for rendering factor services in the production process.The income received by an individual without rendering any productive service in return.
ConceptFactor Income is an earning concept.Transfer Income is a receipt concept.
NatureFactor Income is included in both Domestic Income and National Income of an economy. Transfer Income is neither included in Domestic Income nor in the National Income of an economy. 
RecipientFactor Income is received by the factors of production, i.e., labour, land, capital, and enterprise.Transfer Income is received by the households and the government.
ExampleWages, Rent, Interest, and Profit.Scholarship, Unemployment Allowance, Gifts, Old Age Pensions. 

Next Article
Consumption Goods and Capital Goods

N
nupurjain3
Improve
Article Tags :
  • Class 12
  • Macroeconomics
  • Commerce

Similar Reads

    CBSE Class 12 Macroeconomics Notes
    Macroeconomics deals with the study of the national economy as a whole. In Class 11th notes, we covered the study of individuals through microeconomics, now we will learn about the whole economy through Macroeconomics. GeeksforGeeks has designed Notes for Class 12 Macroeconomics in a way that provid
    6 min read

    Chapter 1: Introduction

    Introduction to Macroeconomics
    Macroeconomics is a part of economics that focuses on how general economies, markets, or different systems that operate on a large scale behave. Macroeconomics concentrates on phenomena like inflation, price levels, rate of economic growth, national income, gross domestic product (GDP) and changes i
    7 min read
    Basic Concepts of Macroeconomics
    Macroeconomics is a part of economics that focuses on how a general economy, the market, or different systems that operate on a large scale, behaves. Macroeconomics concentrates on phenomena like inflation, price levels, rate of economic growth, national income, gross domestic product (GDP), and cha
    14 min read
    What is Factor Income and Transfer Income?
    Macroeconomics is a part of economics that focuses on how a general economy, the market, or different systems that operate on a large scale, behaves. Macroeconomics concentrates on phenomena like inflation, price levels, rate of economic growth, national income, gross domestic product (GDP), and cha
    3 min read
    Consumption Goods and Capital Goods
    Macroeconomics is a part of economics that focuses on how a general economy, the market, or different systems that operate on a large scale, behaves. Macroeconomics concentrates on phenomena like inflation, price levels, rate of economic growth, national income, gross domestic product (GDP), and cha
    4 min read
    Final Goods and Intermediate Goods
    Macroeconomics is a part of economics that focuses on how a general economy, the market, or different systems that operate on a large scale, behaves. Macroeconomics concentrates on phenomena like inflation, price levels, rate of economic growth, national income, gross domestic product (GDP), and cha
    9 min read
    What is Net Indirect Tax (NIT)?
    Net Indirect Tax (NIT) refers to the difference between indirect taxes and subsidies. Indirect Taxes are the taxes imposed on the production and sale of goods and services by the Government of a country, for example, GST (Goods and Services Tax). An indirect tax imposed on a good or service results
    3 min read
    What is Net Factor Income from Abroad (NFIA)?
    It is the difference between the factor income earned by a country from abroad/rest of the world and factor income paid by a country abroad/rest of the world. Factor income from abroad is the income earned by a country's normal residents from the rest of the world for the factor services provided by
    4 min read
    Circular Flow of Income: Meaning, Phases, Types and Significance
    Macroeconomics tries to study the central questions of economies. Amongst these questions, the main question is how economies create wealth. In an economy, all factors of production (FoP) undergo a production flow/cycle; in the process of which, it generates wealth in the form of making payments to
    6 min read
    Difference between Real Flow and Money Flow
    The circular flow of income is an economic model that reflects how money or income flows through the different sectors of the economy. A simple economy assumes that there exist only two sectors, i.e., Households and Firms. Households are consumers of goods and services and the owners of the factors
    2 min read
    Circular Flow of Income
    What is Circular Flow of Income? Macroeconomics tries to study the central questions of economies. Amongst these questions, the main question is how economies create wealth. In an economy, all factors of production (FoP) undergo a production flow/cycle; in the process of which it generates wealth in
    6 min read
    Leakages and Injections in Circular flow of Income
    The circular flow of income is an economic model that reflects how money or income flows through the different sectors of the economy. A simple economy assumes that there exist only two sectors, i.e., Households and Firms. Households are consumers of goods and services and the owners of the factors
    3 min read

    Chapter 2: National Income Accounting

    National Income and Related Aggregates
    National Income is the aggregate value of all goods and services produced by firms in a given financial year. It can be stated that when the aggregate revenue generated by the firms is paid out to factors of production, it equals aggregate income or National Income. There are different variants or a
    10 min read
    Domestic Income and Personal Income
    What is Domestic Income? Domestic Income involves the value of final goods and services produced on a domestic territory of a country. It takes into account all producers doing business within the country's domestic boundary. A nation's domestic income (NDPFC) is generated by both the public and pri
    3 min read
    Private Income: Meaning, Types and Steps
    Private income can be defined as the income accruing to the private sector both from domestic and international sources. Types of Private Income The private sector (Private firms Households) receives both earned income (factor income) and unearned income (transfer income). It consists of two differe
    4 min read
    Personal, National, and Gross National Disposable Income
    Personal, National, and Gross National Disposable Income are three different types of income calculated by economists to measure the savings and spending rates of households and the whole country. Personal Disposable Income is part of personal income that is available at the disposal of a household.
    4 min read
    Difference between Stock and Flow
    Every economy has a given set of natural resources, but it goes through the flow of production that adds certain value addition in these types of resources and returns produced goods and services, which differentiates a rich economy from that of a poor. An economy produces a lot of commodities and s
    3 min read
    Circular Flow of Income and Methods of Calculating National Income
    Macroeconomics tries to study the central questions of economies. Amongst these questions, the main question is how economies create wealth. In an economy, all factors of production (FoP) undergo a production flow/cycle, in the process of which, it generates wealth in the form of making payments to
    7 min read
    Product or Value Added Method of calculating National Income
    National income refers to the value of goods & services produced by a nation during a particular financial year. Therefore, it is the net result of all the economic activities that take place during a financial year and is valued in monetary terms. It includes payments made to various resources
    12 min read
    Expenditure Method of calculating National Income
    National Income is the aggregate value of all goods and services produced by firms in a given financial year. It can be stated that when the aggregate revenue generated by the firms is paid out to factors of production, it equals aggregate income or National Income. The National Income can be calcul
    8 min read
    Three Methods of calculating National Income: Value added Method, Expenditure Method and Income Method
    National Income refers to the value of goods & services produced by a nation during a particular financial year. Therefore, it is the net result of all the economic activities that take place during a financial year and is valued in monetary terms. It includes payments made to various resources
    6 min read
    Treatment of Different Items in National Income
    National Income is the aggregate value of all goods and services produced by firms in a given financial year. It can be stated that when the aggregate revenue generated by the firms is paid out to factors of production, it equals aggregate income or National Income. The National Income can be calcul
    8 min read
    Treatment of Different Items in Domestic Income
    Domestic Income of an economy consists of income earned, i.e., only factor income and not transfer income by all the production units whether they are residents or non-residents, located within the domestic territory of the country, as the reward of their productive services or contribution to the f
    5 min read
    National Income at Current Price and Constant Price
    National Income at Current PriceNational Income at Current Price is the monetary value of the finished goods and services produced by normal residents of a nation in a year, calculated at the current year's prices. For example, consider calculating India's National Income for 2020-21 at 2020-21 pric
    3 min read
    GDP and Welfare
    GDP or Gross Domestic Product is the total value of all the final goods and services produced within the domestic boundaries of a country during a year. It can be calculated at Market Price or Factor Cost. Gross in Gross Domestic Product means that the total value of final goods and services include
    4 min read
    GDP Deflator | Meaning and Formula
    What is GDP or Gross Domestic Product ?GDP or Gross Domestic Product is the total value of all the final goods and services produced within the domestic boundaries of a country during a year. It can be calculated at Market Price or Factor Cost. Gross in Gross Domestic Product means that the total va
    2 min read

    Chapter 3: Money and Banking

    What is barter system and double coincidence of wants?
    A barter system is the oldest form of commerce. Earlier, all the trade practices were carried out according to the barter system of exchange. People used to exchange goods with each other to satisfy their wants. A barter system refers to the exchange of goods & services with two or more parties
    5 min read
    Evolution and Definitions of Money
    Money is anything that is generally accepted as a mode for payment of goods & services and repayment of loans & debts such as taxes, etc., in a particular nation or country. Money was invented to facilitate trade as the barter system, but it can not express the value and prices of goods
    7 min read
    Significance of Money
    Money is derived from the Latin word Moneta, which is another name for the Goddess Juno of Rome. The first mint was established in Rome in the temple of the Goddess Juno or Moneta. Money cannot be explained only in terms of the matter it embodies, such as metal or paper. It should be explained by th
    6 min read
    Functions of Money
    Money is any object or item which is generally accepted as a mode for payment of goods & services and repayment of loans or debts, such as taxes, etc., in a particular nation or country. Money was invented to facilitate trade as the barter system was not able to express the value and prices of g
    6 min read
    Contingent, Static and Dynamic Functions of Money
    Money is any object or item which is generally accepted as a mode for payment of goods & services and repayment of loans or debts such as taxes, etc., in a particular nation or country. Money was invented to facilitate trade as the barter system was not able to express the value and prices of go
    3 min read
    Classification of Money
    Money is any object or item which is generally accepted as a mode for payment of goods & services and repayment of loans or debts such as taxes, etc., in a particular nation or country. Money was invented to facilitate trade as the barter system was not able to express the value and prices of go
    4 min read
    Monetary System in India
    The monetary history of India consists of different monetary standards. The present monetary system of India is known as Inconvertible Paper Currency Standard and is controlled and managed by the Reserve Bank of India. Rupee(₹) has been regarded as the standard currency of India and every transactio
    2 min read
    Money Supply - Features and Measures
    Money is anything that is generally accepted as a medium of exchange, a store of value, a measure of value, and a means for the standard of deferred payment. Money considers everything that can be used for an accomplishment of a business transaction and settlement of the business claims, like curren
    7 min read
    Functions of Commercial Bank : Primary and Secondary Functions
    What is a Commercial Bank?An institution that provides its customers with services like accepting deposits, providing loans, and making investments, with the objective of earning profits is known as a Commercial Bank. The two main characteristics of commercial banks are lending and borrowing. They m
    8 min read
    Commercial Banks : Features, Advantages & Disadvantages
    What are Commercial Banks?A commercial bank is a financial institution that provides services like accepting deposits, granting loans, bank overdrafts, offering certificates of deposits, and savings accounts to individuals and businesses. Commercial banks are considered to be an important component
    6 min read
    Credit Creation
    Money is a concept that is much easier to understand than to explain in the form of words. However, it can be described as an instrument or thing that is generally accepted as a mode of payment or as a Medium of Exchange in the economy, like a Rupee in India, a Dollar in the USA, or a Yen in Japan.
    7 min read
    Money Multiplier
    Money is a concept that is much easier to understand than to explain in the form of words. However, it can be described as an instrument or thing that is generally accepted as a mode of payment or as a Medium of Exchange in the economy, like a Rupee in India, a Dollar in the USA, or a Yen in Japan.
    3 min read
    Functions of Central Bank
    What is Central Bank?An apex body that controls, operates, regulates, and directs a country's banking and monetary structure is known as a Central Bank. As the functions of a central bank are peculiar, there is only one central bank in a country. Every financially developed country has its own centr
    12 min read
    Difference between Commercial Bank and Central Bank
    Banks are the backbone of any economy. Commercial Bank and Central Bank are two types of banks with various differences. Commercial Banks are responsible for accepting deposits and granting loans whereas Central Bank works as a regulatory body for all the commercial banks and monetary system. Table
    3 min read

    Chapter 4: Determination of Income and Employment

    Components of Aggregate Demand
    What is Aggregate Demand?The word aggregate in the Aggregate Demand means 'Total', therefore, Aggregate Demand indicates the total demand of an economy. Aggregate Demand refers to the total demand for finished goods and services in the economy over a specific period. It also refers to a country's Gr
    5 min read
    Explain the Components of Aggregate Supply or National Income.
    The money value of all the final goods and services that all the producers are willing to supply in a given time period in an economy is known as Aggregate Supply. Also, when we express aggregate supply in physical terms, then it is an economy's total output of goods and services. The value of total
    2 min read
    What is Consumption Function (Propensity to Consume)?
    The functional relationship between consumption and national income is known as Consumption Function. It was introduced by John Maynard Keynes and represents the willingness of households to purchase goods and services at a given income level during a given period of time. It is represented as C = f
    5 min read
    Types of Propensities to Consume
    The functional relationship between consumption and national income is known as Consumption Function. It represents the willingness of households to purchase goods and services at a given income level during a given period of time. It is represented as C = f(Y). The consumption function is a psychol
    6 min read
    Difference between APC and MPC
    The functional relationship between consumption and national income is known as the Consumption Function. It represents the willingness of households to purchase goods and services at a given income level during a given period of time. It is represented as C = f(Y). The consumption function is a psy
    3 min read
    What is Saving Function (Propensity to Save)?
    The functional relationship between saving and national income is known as Saving Function. It shows the savings of households during a given period of time at a given income level. In alternate terms, the savings function shows different savings levels at different income levels in an economy. Savi
    4 min read
    Types of Propensities to Save
    The functional relationship between saving and national income is known as Saving Function. It shows the savings of households during a given period of time at a given income level. In alternate terms, the savings function shows different savings levels at different income levels in an economy. Savi
    4 min read
    Difference between APS and MPS
    The functional relationship between saving and national income is known as Saving Function. It shows the savings of households during a given period of time at a given income level. In alternate terms, the savings function shows different savings levels at different income levels in an economy. Savi
    2 min read
    Relationship between different propensities (APC, MPC, APS and MPS)
    The four different types of propensities are Average Propensity to Consume (APC), Marginal Propensity to Consume (MPC), Average Propensity to Save (APS), and Marginal Propensity to Save (MPS). Average Propensity to Consume (APC) It is the ratio of consumption expenditure to the corresponding income
    4 min read
    Explain the Derivation of Saving Curve from Consumption Curve.
    As we know that Y = C + S, which means that as Consumption and Savings together make up income, the consumption curve and saving curve are complementary curves. Therefore, it is possible to derive the saving curve from consumption curve and consumption curve from saving curve. Let us derive saving c
    2 min read
    Investment Function: Induced Investment, Autonomous Investment and Determinants of Investment
    What is Investment Function? A strategy or concept of economics that helps in identifying the connection between shifts in the investment patterns of people and other variable factors affecting investment in an economy is known as Investment Function. The expenditure incurred to create new capital a
    4 min read
    Full Employment and Involuntary Unemployment
    Full Employment and Involuntary Unemployment are two concepts that are closely related but have different meanings. Full Employment refers to a situation where all or nearly all individuals who are willing and able to work at the prevailing wage rates are employed. However, Involuntary Unemployment
    3 min read
    Determination of Equilibrium Level of Income: AD-AS Approach and S-I Approach
    Determination of Equilibrium Level The Keynesian Theory states that the equilibrium situation is usually expressed in terms of Aggregate Demand (AD) and Aggregate Supply (AS). When aggregate demand for products and services over a given period of time equals aggregate supply, an economy is in equili
    3 min read
    Aggregate Demand-Aggregate Supply (AD-AS) Approach
    Aggregate demand (AD) is the total amount of final products and services that all sectors of the economy intend to purchase over a single accounting year at a specific level of income. Whereas, Aggregate Supply (AS) refers to the monetary value of finished goods and services that all producers are p
    4 min read
    Saving-Investment (S-I) Approach
    Saving means storing money safely for the future so that when one needs money, it is available for them. However, Investment means putting one's money to work in financial instruments like bonds, shares, etc., to grow money over time. Saving-Investment Approach (S-I Approach) is used to determine th
    3 min read
    What is Investment Multiplier?
    The term Investment Multiplier is an important contribution made by Prof. J.M. Keynes. Keynes felt that an initial rise in investment multiplies overall income by a large factor. The relationship between an initial increase in investment and the subsequent rise in total revenue is expressed by the m
    6 min read
    Explain the working of Investment Multiplier.
    To understand the Working of Investment Multiplier, let us first understand the meaning of Investment Multiplier. What is Investment Multiplier?The term Investment Multiplier is an important contribution made by Prof. J.M. Keynes. Keynes felt that an initial rise in investment multiplies overall inc
    3 min read
    Short-run Fixed Price Analysis of Product Market
    The prices in the short run take some time to react to factors of excess supply or demand as producers seek to modify their production plans in the meantime. For instance, if there is an excess supply, firms plan to produce less in the next cycle to prevent inventory accumulation. In addition, an in
    3 min read
    What is Excess Demand?
    According to Keynesian theory, an equilibrium income level might correspond to full employment, underemployment, or over employment of resources. Similarly, when the economy is not at full employment, there will be instances of surplus demand and deficit demand. Excess demand and deficit demand are
    4 min read
    What is Deficient Demand?
    According to Keynesian theory, an equilibrium income level might correspond to full employment, underemployment, or over the employment of resources. Similarly, when the economy is not at full employment, there will be instances of surplus demand and deficit demand. Excess demand and deficit demand
    4 min read
    Difference between Excess Demand and Deficient Demand
    Excess Demand and Deficient Demand are often used interchangeably. Excess demand and deficit demand are the two situations of disequilibrium. What is Excess Demand?When demand is more than what is necessary to utilise resources fully, it is called Excess Demand. In simple terms, when planned aggrega
    3 min read
    What are the different measures to control Excess Demand and Deficient Demand?
    When demand is more than what is necessary to utilise resources fully, it is called Excess Demand. In simple terms, when planned aggregate expenditure is more than aggregate supply at full employment, excess demand arises. However, when demand is not sufficient to fully utilise resources, it is refe
    11 min read
    Excess and Deficient Demand in Three-Sector Economy
    Excess and Deficient Demand in Three-Sector Economy When demand is more than what is necessary to utilise resources fully, it is called Excess Demand. However, when demand is not sufficient to fully utilise resources, it is referred to as Deficient Demand. Excess Demand and Deficient Demand can occu
    3 min read
    What is Fiscal Policy and how it used to correct Excess Demand and Deficient Demand?
    Meaning of Fiscal Policy A fiscal policy is the policy of the central government which aims at controlling the situation of the money supply in the economy. Simply put, fiscal policy includes using taxation, government spending, and borrowing to change the level and growth of output, aggregate deman
    4 min read

    Chapter 5: Government Budget and the Economy

    Revenue Receipt and Revenue Expenditure: Meaning and Classification
    The Government Budget is a statement of expected receipts and expected expenditures of the Government (for the coming fiscal year) that reveals the budgetary policy of the Government to achieve the twin objective of growth and stability. The financial/fiscal year is taken from 1st April to 31st Marc
    9 min read
    Difference between Direct and Indirect Tax
    Direct and Indirect Tax are two types of taxes imposed on the property and income of individuals and companies, which is paid by them directly and indirectly to the government respectively. Table of Content What is Direct Tax?What is Indirect Tax?Difference between Direct Tax and Indirect TaxHow to
    4 min read
    Capital Receipt and Capital Expenditure: Meaning and Sources of Capital Receipts
    The Government Budget is a statement of expected receipts and expected expenditures of the Government (for the coming fiscal year) that reveals the budgetary policy of the Government to achieve the twin objective of growth and stability. The financial/fiscal year is taken from 1st April to 31st Marc
    5 min read
    Difference between Revenue Receipt and Capital Receipt
    The estimated money receipts of the government from all sources during a fiscal year are known as Budget Receipts. The two different kinds of budget receipts are Revenue Receipt and Capital Receipt. Table of Content What is Revenue Receipt?What is Capital Receipt?Difference between Revenue Receipt a
    4 min read
    Difference between Revenue Expenditure and Capital Expenditure
    Revenue Expenditure and Capital Expenditure are two different kinds of budget expenditures. Revenue Expenditure refers to the spending incurred in the day-to-day running of government or business operations. However, Capital Expenditure (CapEx) refers to the spending on acquiring, upgrading, or main
    5 min read
    Measures of Government Deficit: Revenue Deficit, Fiscal Deficit and Primary Deficit
    What is Budgetary Deficit? A Budgetary Deficit can be termed as the excess of the total government expenditure over the total revenue generated in a financial year. A budgetary deficit happens when the government spends more money than what is generated through revenue collection, including direct o
    5 min read
    Difference between Fiscal Deficit and Revenue Deficit
    A Budgetary Deficit can be termed as the excess of the total government expenditure over the total revenue generated in a financial year. A budgetary deficit happens when the government spends more money than what is generated through revenue collection, including direct or indirect taxes. Based on
    2 min read
    Difference between Primary Deficit and Fiscal Deficit
    A Budgetary Deficit can be termed as the excess of the total government expenditure over the total revenue generated in a financial year. A budgetary deficit happens when the government spends more money than what is generated through revenue collection, including direct or indirect taxes. Based on
    2 min read
    Difference between Plan & Non-plan Expenditure
    The term expenditure describes a payment made in cash or on credit to buy or obtain goods or services. Liabilities incurred in the exchange of commodities or services are referred to as expenditures. Table of Content What is Plan Expenditure?What is Non-plan Expenditure?Difference between Plan Expen
    2 min read
    Developmental and Non-Developmental Expenditure
    The term expenditure describes a payment made in cash or on credit to buy or obtain goods or services. Liabilities incurred in the exchange of commodities or services are referred to as expenditures. What is Developmental Expenditure?The expenditure which is related directly to the economic and soci
    3 min read

    Chapter 6: Open Economy Macroeconomics

    Foreign Exchange Rate : Meaning and Types
    What is Foreign Exchange Rate?A medium of exchange for goods and services is called currency. In a nutshell, it is money issued by governments and accepted for payment in the country. It comes in the form of coins and paper. Every nation has a currency that is widely accepted within its boundaries.
    10 min read
    Currency Depreciation and Currency Appreciation
    What is Currency Depreciation?It refers to the decrease in the value of the domestic currency (₹) in terms of one or more foreign currencies (like $). It makes domestic currency less valuable and more is required to buy a unit of currency. For example, if the price of $1 rises from ₹60 to ₹64, then
    4 min read
    Demand and Supply for Foreign Exchange
    What is Foreign Exchange?Foreign exchange refers to foreign currency. For example, for an Indian resident, the Indian rupee (₹) is a domestic currency that can be used as a medium of exchange in India. But the Indian rupee (₹) can not be used as a medium of exchange outside India. The currency used
    9 min read
    Determination of Exchange Rate
    What is Foreign Exchange?Foreign exchange refers to foreign currency. For example, for an Indian resident Indian rupee(₹) is a domestic currency that can be used as a medium of exchange in India. But the Indian rupee (₹) can not be used as a medium of exchange outside India. The currency used in oth
    7 min read
    Foreign Exchange Market : Meaning, Functions and Types
    Every nation has a unique currency that it uses for commerce and business, in India, it's Indian Rupee, but what about the global market? The lack of flexibility of the currencies makes them a barrier to international trade. The Foreign Exchange Market was formed to solve this problem. This is a spe
    9 min read
    Fixed Exchange Rate System | Meaning, Methods, Merits and Demerits
    A medium of exchange for goods and services is called currency, which is different from one country to another country. However, a country’s currency cannot be used in another country. For this purpose, the currency of one country is converted into the currency of another country, and the rate
    7 min read
    Flexible Exchange Rate System | Meaning, Merits and Demerits
    A medium of exchange for goods and services is called currency, which is different from one country to another country. However, a country’s currency cannot be used in another country. For this purpose, the currency of one country is converted into the currency of another country, and the rate at wh
    5 min read
    Managed Floating Exchange Rate System : Meaning, Objectives, Merits and Demerits
    A medium of exchange for goods and services is called currency, which is different from one country to another country. However, a country’s currency cannot be used in another country. For this purpose, the currency of one country is converted into the currency of another country, and the rate at wh
    5 min read
    Devaluation of Currency| Meaning, Reasons, Effects, Example and Critical Evaluation
    Sometimes there arise some situations when the value of the domestic currency tends to increase drastically and faces monetary barriers. The government and the central bank intervene with some effective monetary policies for the correction of exchange rates, trade deficits, etc. One of these practic
    5 min read
    Depreciation of Currency : Effects, Examples and Critical Evaluation
    What is Depreciation of Currency?Currency Depreciation refers to a decrease in the value of a currency as compared to other currencies in a floating exchange rate system. Market forces of demand and supply work towards the depreciation of the currency and determine a currency depreciation rate. The
    5 min read
    Difference between Devaluation and Depreciation
    Devaluation and Depreciation are two examples of a situation when the value of domestic currency falls in terms of foreign currencies. Even though both include a reduction in the value of domestic currency, the way in which it happens is different. What is Devaluation? Devaluation means deliberately
    2 min read
    Balance of Payment and its Components: Capital and Current Account
    Usually, government records all the transactions that arise between a country and the outside world. This record is titled Balance of Payments. Balance of Payments can also be known as the Balance of International Payments. It is a statement of all transactions between entities in one country and th
    9 min read
    Difference between Current Account and Capital Account of BoP
    Balance of Payment is a statement of all transactions between entities in one country and the outside world over a specified time period, such as a quarter or a year. It lists all interactions between residents of one country and residents of other countries that involve businesses, organizations, o
    3 min read
    Difference between Balance of Payment and Balance of Trade
    Balance of Payment and Balance of Trade are two important terms that are sometimes confused as the same. The former is a statement of all transactions between entities in one country and the outside world over a specified time period; however, the latter is the difference between the Export and Impo
    3 min read
    Balance of Payments: Surplus and Deficit, Autonomous and Accommodating Transactions, Errors and Omissions
    A balance of payment (BoP) is a summary statement that lists all of the transactions that took place within a specific period between the resident and the outside world. The Balance of Payment indicates the extent to which a country saves enough money to cover its imports. It also reveals whether th
    14 min read

    Important Formulas

    Important Formulas in Macroeconomics | Class 12
    Chapter: Introduction1. Net InvestmentNet Investment = Gross Investment – Depreciation 2. Net Indirect TaxNet Indirect Tax = Indirect Taxes - Subsidies 3.  Market PriceMarket Price = Factor Cost + Net Indirect Taxes OR = Factor Cost + (Indirect Taxes - Subsidies) 4. Net factor Income from Abroad (NF
    7 min read

    CBSE Previous Year Papers (2020)

    CBSE Class 12 Economics Solved Question Paper 2020 - Set 1
    Economics (Code No. 58/1/1)  Time allowed : 3 hoursMaximum Marks: 80 General Instructions:  Read the following instructions very carefully and strictly follow them :  (i) This question paper comprises two sections - A and B. All questions are compulsory.  (ii) Question numbers 1 – 10 and 18 – 27 are
    15+ min read
    CBSE Class 12 Economics Solved Question Paper 2020 (Set 58/1/2)
    Economics (Code No. 58/1/2) Time allowed : 3 hoursMaximum Marks: 80General Instructions:  Read the following instructions very carefully and strictly follow them :  (i) This question paper comprises two sections - A and B. All questions are compulsory.  (ii) Question numbers 1 – 10 and 18 – 27 are v
    15+ min read
    Class 12 Economics Solved Question Paper 2020 (Set 58/1/3)
    Economics (Code No. 58/1/3)  Time allowed : 3 hoursMaximum Marks: 80 General Instructions:  Read the following instructions very carefully and strictly follow them :  (i) This question paper comprises two sections - A and B. All questions are compulsory.  (ii) Question numbers 1 – 10 and 18 – 27 are
    15+ min read
    CBSE Class 12 Economics Solved Question Paper 2020 - Set 2
    Economics (Code No. 58/2/1)  Time allowed : 3 hoursMaximum Marks: 80 General Instructions:  Read the following instructions very carefully and strictly follow them :  (i) This question paper comprises two sections - A and B. All questions are compulsory.  (ii) Question numbers 1 – 10 and 18 – 27 are
    15+ min read
    CBSE Class 12 Economics Solved Question Paper 2020 - Set 2 (58/2/2)
    Economics (Code No. 58/2/2)  Time allowed : 3 hoursMaximum Marks: 80 General Instructions:  Read the following instructions very carefully and strictly follow them :  (i) This question paper comprises two sections - A and B. All questions are compulsory.  (ii) Question numbers 1 – 10 and 18 – 27 are
    15+ min read
    CBSE Class 12 Economics Solved Question Paper 2020 - Set 2 (58/2/3)
    Economics (Code No. 58/2/3)  Time allowed : 3 hoursMaximum Marks: 80 General Instructions:  Read the following instructions very carefully and strictly follow them :  (i) This question paper comprises two sections - A and B. All questions are compulsory.  (ii) Question numbers 1 – 10 and 18 – 27 are
    15+ min read
    CBSE Class 12 Economics Solved Question Paper 2020 - Set 3
    Economics (Code No. 58/3/1)  Time allowed : 3 hoursMaximum Marks: 80 General Instructions:  Read the following instructions very carefully and strictly follow them :  (i) This question paper comprises two sections - A and B. All questions are compulsory.  (ii) Question numbers 1 – 10 and 18 – 27 are
    15+ min read
    CBSE Class 12 Economics Solved Question Paper 2020 - Set 3 (58/3/2)
    Economics (Code No. 58/3/2)  Time allowed : 3 hoursMaximum Marks: 80 General Instructions:  Read the following instructions very carefully and strictly follow them :  (i) This question paper comprises two sections - A and B. All questions are compulsory.  (ii) Question numbers 1 – 10 and 18 – 27 are
    15+ min read
    CBSE Class 12 Economics Solved Question Paper 2020 - Set 3 (58/3/3)
    Economics (Code No. 58/3/3)  Time allowed : 3 hoursMaximum Marks: 80 General Instructions:  Read the following instructions very carefully and strictly follow them :  (i) This question paper comprises two sections - A and B. All questions are compulsory.  (ii) Question numbers 1 – 10 and 18 – 27 are
    15+ min read
    CBSE Class 12 Economics Solved Question Paper 2020 - Set 4 (Code No. 58/4/1)
    Economics (Code No. 58/4/1)  Time allowed : 3 hoursMaximum Marks: 80 General Instructions:  Read the following instructions very carefully and strictly follow them :  (i) This question paper comprises two sections - A and B. All questions are compulsory.  (ii) Question numbers 1 – 10 and 18 – 27 are
    15+ min read
    CBSE Class 12 Economics Solved Question Paper 2020 - Set 4 (58/4/2)
    Economics (Code No. 58/4/2)  Time allowed : 3 hoursMaximum Marks: 80 General Instructions:  Read the following instructions very carefully and strictly follow them :  (i) This question paper comprises two sections - A and B. All questions are compulsory.  (ii) Question numbers 1 – 10 and 18 – 27 are
    15+ min read
    CBSE Class 12 Economics Solved Question Paper 2020 - Set 4 (58/4/3)
    Economics (Code No. 58/4/3)  Time allowed : 3 hoursMaximum Marks: 80 General Instructions:  Read the following instructions very carefully and strictly follow them :  (i) This question paper comprises two sections - A and B. All questions are compulsory.  (ii) Question numbers 1 – 10 and 18 – 27 are
    15+ min read
    CBSE Class 12 Economics Solved Question Paper 2020 - Set 5 (58/5/1)
    Economics (Code No. 58/5/1)  Time allowed : 3 hoursMaximum Marks: 80 General Instructions:  Read the following instructions very carefully and strictly follow them :  (i) This question paper comprises two sections - A and B. All questions are compulsory.  (ii) Question numbers 1 – 10 and 18 – 27 are
    15+ min read
    CBSE Class 12 Economics Solved Question Paper 2020 - Set 5 (58/5/2)
    Economics (Code No. 58/5/2)  Time allowed : 3 hoursMaximum Marks: 80 General Instructions:  Read the following instructions very carefully and strictly follow them :  (i) This question paper comprises two sections - A and B. All questions are compulsory.  (ii) Question numbers 1 – 10 and 18 – 27 are
    15+ min read
    CBSE Class 12 Economics Solved Question Paper 2020 - Set 5 (58/5/3)
    Economics (Code No. 58/5/3)  Time allowed : 3 hoursMaximum Marks: 80 General Instructions:  Read the following instructions very carefully and strictly follow them :  (i) This question paper comprises two sections - A and B. All questions are compulsory.  (ii) Question numbers 1 – 10 and 18 – 27 are
    15+ min read
geeksforgeeks-footer-logo
Corporate & Communications Address:
A-143, 7th Floor, Sovereign Corporate Tower, Sector- 136, Noida, Uttar Pradesh (201305)
Registered Address:
K 061, Tower K, Gulshan Vivante Apartment, Sector 137, Noida, Gautam Buddh Nagar, Uttar Pradesh, 201305
GFG App on Play Store GFG App on App Store
Advertise with us
  • Company
  • About Us
  • Legal
  • Privacy Policy
  • In Media
  • Contact Us
  • Advertise with us
  • GFG Corporate Solution
  • Placement Training Program
  • Languages
  • Python
  • Java
  • C++
  • PHP
  • GoLang
  • SQL
  • R Language
  • Android Tutorial
  • Tutorials Archive
  • DSA
  • Data Structures
  • Algorithms
  • DSA for Beginners
  • Basic DSA Problems
  • DSA Roadmap
  • Top 100 DSA Interview Problems
  • DSA Roadmap by Sandeep Jain
  • All Cheat Sheets
  • Data Science & ML
  • Data Science With Python
  • Data Science For Beginner
  • Machine Learning
  • ML Maths
  • Data Visualisation
  • Pandas
  • NumPy
  • NLP
  • Deep Learning
  • Web Technologies
  • HTML
  • CSS
  • JavaScript
  • TypeScript
  • ReactJS
  • NextJS
  • Bootstrap
  • Web Design
  • Python Tutorial
  • Python Programming Examples
  • Python Projects
  • Python Tkinter
  • Python Web Scraping
  • OpenCV Tutorial
  • Python Interview Question
  • Django
  • Computer Science
  • Operating Systems
  • Computer Network
  • Database Management System
  • Software Engineering
  • Digital Logic Design
  • Engineering Maths
  • Software Development
  • Software Testing
  • DevOps
  • Git
  • Linux
  • AWS
  • Docker
  • Kubernetes
  • Azure
  • GCP
  • DevOps Roadmap
  • System Design
  • High Level Design
  • Low Level Design
  • UML Diagrams
  • Interview Guide
  • Design Patterns
  • OOAD
  • System Design Bootcamp
  • Interview Questions
  • Inteview Preparation
  • Competitive Programming
  • Top DS or Algo for CP
  • Company-Wise Recruitment Process
  • Company-Wise Preparation
  • Aptitude Preparation
  • Puzzles
  • School Subjects
  • Mathematics
  • Physics
  • Chemistry
  • Biology
  • Social Science
  • English Grammar
  • Commerce
  • World GK
  • GeeksforGeeks Videos
  • DSA
  • Python
  • Java
  • C++
  • Web Development
  • Data Science
  • CS Subjects
@GeeksforGeeks, Sanchhaya Education Private Limited, All rights reserved
We use cookies to ensure you have the best browsing experience on our website. By using our site, you acknowledge that you have read and understood our Cookie Policy & Privacy Policy
Lightbox
Improvement
Suggest Changes
Help us improve. Share your suggestions to enhance the article. Contribute your expertise and make a difference in the GeeksforGeeks portal.
geeksforgeeks-suggest-icon
Create Improvement
Enhance the article with your expertise. Contribute to the GeeksforGeeks community and help create better learning resources for all.
geeksforgeeks-improvement-icon
Suggest Changes
min 4 words, max Words Limit:1000

Thank You!

Your suggestions are valuable to us.

What kind of Experience do you want to share?

Interview Experiences
Admission Experiences
Career Journeys
Work Experiences
Campus Experiences
Competitive Exam Experiences