I have a fairly latest version of android studio, I have created a module under a project which is basically supposed to be a library, when I build it, it creates an \".aar\
aar is not related to AS or eclipse but is an AndroidARchive for Android applications like JavaARchives are for java applications.
Because Android is java based, jars can be used. But to take android specialities into account, like resource bundles, an aar is the right thing to use.