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A foreigner is travelling by Air India from Delhi to Mumbai. What will this be considered as in terms of national income: - a)Import
- b)Domestic consumption
- c)Exports
- d)None of the Above
Correct answer is option 'C'. Can you explain this answer?
A foreigner is travelling by Air India from Delhi to Mumbai. What will this be considered as in terms of national income:
a)
Import
b)
Domestic consumption
c)
Exports
d)
None of the Above
|
Deepika Ahuja answered |
Explanation:
National income is the total value of goods and services produced within a country's borders in a specific period of time. In this case, a foreigner is travelling by Air India from Delhi to Mumbai. Let's see what it will be considered as in terms of national income:
Imports: Imports refer to goods and services that are produced outside the country and brought into the country. In this case, since the foreigner is travelling within the country and not bringing any goods or services into the country, it cannot be considered as an import.
Domestic consumption: Domestic consumption refers to the consumption of goods and services within the country. In this case, the foreigner is consuming Air India's services within the country, but since the foreigner is not a resident of the country and is not a part of the domestic population, it cannot be considered as domestic consumption.
Exports: Exports refer to goods and services produced within the country and sold outside the country. In this case, Air India is a domestic airline and is providing its services to a foreigner who is travelling within the country. However, since the foreigner is not a resident of the country, it can be considered as an export of services.
Therefore, the correct answer is option 'C' - exports.
National income is the total value of goods and services produced within a country's borders in a specific period of time. In this case, a foreigner is travelling by Air India from Delhi to Mumbai. Let's see what it will be considered as in terms of national income:
Imports: Imports refer to goods and services that are produced outside the country and brought into the country. In this case, since the foreigner is travelling within the country and not bringing any goods or services into the country, it cannot be considered as an import.
Domestic consumption: Domestic consumption refers to the consumption of goods and services within the country. In this case, the foreigner is consuming Air India's services within the country, but since the foreigner is not a resident of the country and is not a part of the domestic population, it cannot be considered as domestic consumption.
Exports: Exports refer to goods and services produced within the country and sold outside the country. In this case, Air India is a domestic airline and is providing its services to a foreigner who is travelling within the country. However, since the foreigner is not a resident of the country, it can be considered as an export of services.
Therefore, the correct answer is option 'C' - exports.
Consider the following statement about Foreign Portfolio Investment (FPI) - FPI does not provide investor with direct ownership of financial assets.
- FPI is part of country’s current account.
- FPI is more liquid and more risky than FDI.
Which of the above statements is/are incorrect?- a)1 only
- b)2 only
- c)2, 3
- d)1, 3
Correct answer is option 'C'. Can you explain this answer?
Consider the following statement about Foreign Portfolio Investment (FPI)
- FPI does not provide investor with direct ownership of financial assets.
- FPI is part of country’s current account.
- FPI is more liquid and more risky than FDI.
Which of the above statements is/are incorrect?
a)
1 only
b)
2 only
c)
2, 3
d)
1, 3
|
Nilesh Patel answered |
FPI consists of securities and other financial assets passively held by foreign investors. It does not provide investor with direct ownership of financial assets. (Statement 1)
In India, FPIs are allowed to invest in various debt market instruments such as government bonds, treasury bills, state development loans (SDLs) and corporate bonds, but with certain restrictions and limits.
FPI is part of country’s capital account and shown on its balance of payments (BOP). (Statement 2)
FPI is more liquid and less risky than FDI. (Statement 3)
In India, FPIs are allowed to invest in various debt market instruments such as government bonds, treasury bills, state development loans (SDLs) and corporate bonds, but with certain restrictions and limits.
FPI is part of country’s capital account and shown on its balance of payments (BOP). (Statement 2)
FPI is more liquid and less risky than FDI. (Statement 3)
Which of the following are not the components of Non tax revenue receipts? - Government earning Dividends and profits from PSUs.
- Goods and Services Tax (GST)
- State governments receiving grants from the Central Government
- Wealth Tax
- Value Added Tax (VAT)
Select the correct code:- a)1, 3
- b)1, 2, 3
- c)2, 4, 5
- d)3, 4, 5
Correct answer is option 'C'. Can you explain this answer?
Which of the following are not the components of Non tax revenue receipts?
- Government earning Dividends and profits from PSUs.
- Goods and Services Tax (GST)
- State governments receiving grants from the Central Government
- Wealth Tax
- Value Added Tax (VAT)
Select the correct code:
a)
1, 3
b)
1, 2, 3
c)
2, 4, 5
d)
3, 4, 5
|
Prakash Kumbar answered |
Answer a non taxation means no tax it should revenue from non tax
Consider the following:
1. SAARC
2. ASEAN
3. G 20
4. BRICSIndia entered into a complete open sky agreement with which of the given above regional groups?- a)1 and 2 only
- b)3 and 4 only
- c)1, 2 and 4 only
- d)None
Correct answer is option 'D'. Can you explain this answer?
Consider the following:
1. SAARC
2. ASEAN
3. G 20
4. BRICS
1. SAARC
2. ASEAN
3. G 20
4. BRICS
India entered into a complete open sky agreement with which of the given above regional groups?
a)
1 and 2 only
b)
3 and 4 only
c)
1, 2 and 4 only
d)
None
|
Dishani Dasgupta answered |
India has not entered into a complete open sky agreement with any of the given regional groups, namely SAARC, ASEAN, G20, and BRICS. The correct answer is option 'D' - None.
Explanation:
- SAARC (South Asian Association for Regional Cooperation) is a regional intergovernmental organization consisting of eight member countries in South Asia. It aims to promote economic and regional integration among member countries. However, India has not entered into a complete open sky agreement with SAARC.
- ASEAN (Association of Southeast Asian Nations) is a regional intergovernmental organization consisting of ten member countries in Southeast Asia. It aims to promote economic growth, social progress, and regional stability. India has not entered into a complete open sky agreement with ASEAN.
- G20 (Group of Twenty) is an international forum consisting of 19 countries and the European Union. It brings together major economies to discuss global economic issues. However, India has not entered into a complete open sky agreement with G20.
- BRICS is an acronym for an association of five major emerging national economies: Brazil, Russia, India, China, and South Africa. BRICS aims to enhance cooperation among member countries in various fields. However, India has not entered into a complete open sky agreement with BRICS.
In conclusion, India has not entered into a complete open sky agreement with any of the given regional groups mentioned in the question. Therefore, the correct answer is option 'D' - None.
Explanation:
- SAARC (South Asian Association for Regional Cooperation) is a regional intergovernmental organization consisting of eight member countries in South Asia. It aims to promote economic and regional integration among member countries. However, India has not entered into a complete open sky agreement with SAARC.
- ASEAN (Association of Southeast Asian Nations) is a regional intergovernmental organization consisting of ten member countries in Southeast Asia. It aims to promote economic growth, social progress, and regional stability. India has not entered into a complete open sky agreement with ASEAN.
- G20 (Group of Twenty) is an international forum consisting of 19 countries and the European Union. It brings together major economies to discuss global economic issues. However, India has not entered into a complete open sky agreement with G20.
- BRICS is an acronym for an association of five major emerging national economies: Brazil, Russia, India, China, and South Africa. BRICS aims to enhance cooperation among member countries in various fields. However, India has not entered into a complete open sky agreement with BRICS.
In conclusion, India has not entered into a complete open sky agreement with any of the given regional groups mentioned in the question. Therefore, the correct answer is option 'D' - None.
Which of the following developments may not likely reduce the fiscal deficit? - Increasing Foreign Direct Investment (FDI)
- Providing budgetary support to public sector enterprises
- Waiving off farm loans.
- Austerity measures should be adopted.
Select the correct code:- a)1, 4
- b)2, 3
- c)2, 3, 4
- d)1, 2, 3
Correct answer is option 'B'. Can you explain this answer?
Which of the following developments may not likely reduce the fiscal deficit?
- Increasing Foreign Direct Investment (FDI)
- Providing budgetary support to public sector enterprises
- Waiving off farm loans.
- Austerity measures should be adopted.
Select the correct code:
a)
1, 4
b)
2, 3
c)
2, 3, 4
d)
1, 2, 3
|
Prashanth Malik answered |
Increasing Foreign Direct Investment (FDI)
- Increasing FDI can potentially reduce the fiscal deficit as it brings in foreign capital, which can be used to finance government expenditure and reduce the need for borrowing. This can help in bridging the fiscal deficit gap.
Providing budgetary support to public sector enterprises
- Providing budgetary support to public sector enterprises may not likely reduce the fiscal deficit. Public sector enterprises often require financial assistance from the government to meet their operational expenses and investment needs. This support adds to the government's expenditure, increasing the fiscal deficit.
Waiving off farm loans
- Waiving off farm loans may not likely reduce the fiscal deficit. When the government waives off farm loans, it forgives the outstanding debt of farmers. This leads to a direct increase in government expenditure, which in turn increases the fiscal deficit.
Austerity measures should be adopted
- Austerity measures refer to reducing government expenditure and increasing revenue through measures like cutting subsidies, reducing welfare programs, and increasing taxes. While austerity measures can help in reducing the fiscal deficit, it is not mentioned that they may not likely reduce the fiscal deficit.
Explanation:
- Option B (2, 3) is the correct answer because providing budgetary support to public sector enterprises and waiving off farm loans both add to the government's expenditure, increasing the fiscal deficit. Increasing FDI can potentially reduce the fiscal deficit, and the impact of austerity measures on the fiscal deficit is not specified in the question.
- Increasing FDI can potentially reduce the fiscal deficit as it brings in foreign capital, which can be used to finance government expenditure and reduce the need for borrowing. This can help in bridging the fiscal deficit gap.
Providing budgetary support to public sector enterprises
- Providing budgetary support to public sector enterprises may not likely reduce the fiscal deficit. Public sector enterprises often require financial assistance from the government to meet their operational expenses and investment needs. This support adds to the government's expenditure, increasing the fiscal deficit.
Waiving off farm loans
- Waiving off farm loans may not likely reduce the fiscal deficit. When the government waives off farm loans, it forgives the outstanding debt of farmers. This leads to a direct increase in government expenditure, which in turn increases the fiscal deficit.
Austerity measures should be adopted
- Austerity measures refer to reducing government expenditure and increasing revenue through measures like cutting subsidies, reducing welfare programs, and increasing taxes. While austerity measures can help in reducing the fiscal deficit, it is not mentioned that they may not likely reduce the fiscal deficit.
Explanation:
- Option B (2, 3) is the correct answer because providing budgetary support to public sector enterprises and waiving off farm loans both add to the government's expenditure, increasing the fiscal deficit. Increasing FDI can potentially reduce the fiscal deficit, and the impact of austerity measures on the fiscal deficit is not specified in the question.
Consider the following statements about Society for Worldwide Interbank Financial Telecommunication (SWIFT) - SWIFT sells software and services to financial institutions
- All international interbank messages use the SWIFT network.
- SWIFT does not facilitate funds transfer.
Which of the above statements is/are correct?- a)1, 2
- b)2, 3
- c)1, 3
- d)1, 2, 3
Correct answer is option 'C'. Can you explain this answer?
Consider the following statements about Society for Worldwide Interbank Financial Telecommunication (SWIFT)
- SWIFT sells software and services to financial institutions
- All international interbank messages use the SWIFT network.
- SWIFT does not facilitate funds transfer.
Which of the above statements is/are correct?
a)
1, 2
b)
2, 3
c)
1, 3
d)
1, 2, 3
|
Ravi Chandran answered |
Answer to above question is C.
statement 2 is wrong:
All banks in the world won't rely on a particular system of international communication. China has its own Cross border interbank payment system, Russia has SPFS system for transfer of financial messages.
So by this method you can eliminate other three.
statement 2 is wrong:
All banks in the world won't rely on a particular system of international communication. China has its own Cross border interbank payment system, Russia has SPFS system for transfer of financial messages.
So by this method you can eliminate other three.
Export Subsidy for sugar industry is desirable in a year with:- a)Low expected production for present season.
- b)High carry forward stock from previous season.
- c)High domestic consumption.
- d)Higher diversion towards producing ethanol.
Correct answer is option 'B'. Can you explain this answer?
Export Subsidy for sugar industry is desirable in a year with:
a)
Low expected production for present season.
b)
High carry forward stock from previous season.
c)
High domestic consumption.
d)
Higher diversion towards producing ethanol.
|
|
Nilesh Patel answered |
- Sugar Industry is an important agro-based industry that impacts livelihood of 50 million farmers and 5 lakh mill workers. Besides, India is the second largest producer (15% of global production) and the industry has strong linkages with other industries like bio-electricity, chemicals etc.
- Currently, the central government announces Fair and Remunerative Price (FRP) at the recommendations of the Commission for Agricultural Costs and Prices (CACP). Besides this, some states declare state specific sugarcane prices called State Advised Prices (SAP), usually higher than the FRP.
- Before answering the question, one must understand the concept of sugar balance sheet. At the starting of each sugar season (usually Oct-Nov), sugar industry prepares its balance sheet which reads as:
- Expected production for current year + carry forward stock from previous year – domestic consumption (including ethanol production) – Exports.
Hence option (b) is the correct answer.
With reference to Liquefied Natural Gas (LNG), which of the following statements is/are correct?
1. It is an odourless, non-toxic and noncorrosive fuel.
2. It is more economical to produce than diesel.
3. Saudi Arabia is the largest supplier of LNG to India.Select the correct answer using the code given below.- a)1 only
- b)1 and 2 only
- c)2 and 3 only
- d)1, 2 and 3
Correct answer is option 'B'. Can you explain this answer?
With reference to Liquefied Natural Gas (LNG), which of the following statements is/are correct?
1. It is an odourless, non-toxic and noncorrosive fuel.
2. It is more economical to produce than diesel.
3. Saudi Arabia is the largest supplier of LNG to India.
1. It is an odourless, non-toxic and noncorrosive fuel.
2. It is more economical to produce than diesel.
3. Saudi Arabia is the largest supplier of LNG to India.
Select the correct answer using the code given below.
a)
1 only
b)
1 and 2 only
c)
2 and 3 only
d)
1, 2 and 3
|
Gitanjali Bajaj answered |
Explanation:
1. Odourless, non-toxic and noncorrosive fuel:
- LNG is odourless, non-toxic and noncorrosive in its natural state, making it a safer fuel option compared to other traditional fuels.
- This property makes it ideal for transportation and storage.
2. More economical to produce than diesel:
- The production of LNG is generally more cost-effective compared to diesel due to its abundance and lower processing costs.
- LNG is also more environmentally friendly as it produces fewer emissions than diesel, making it a popular choice for industries and transportation.
3. Saudi Arabia is the largest supplier of LNG to India:
- This statement is incorrect. Qatar is actually the largest supplier of LNG to India, followed by countries like the United States and Australia.
- Saudi Arabia is a major oil producer but does not play a significant role in LNG supply to India.
Therefore, the correct statements are 1 and 2 only.
1. Odourless, non-toxic and noncorrosive fuel:
- LNG is odourless, non-toxic and noncorrosive in its natural state, making it a safer fuel option compared to other traditional fuels.
- This property makes it ideal for transportation and storage.
2. More economical to produce than diesel:
- The production of LNG is generally more cost-effective compared to diesel due to its abundance and lower processing costs.
- LNG is also more environmentally friendly as it produces fewer emissions than diesel, making it a popular choice for industries and transportation.
3. Saudi Arabia is the largest supplier of LNG to India:
- This statement is incorrect. Qatar is actually the largest supplier of LNG to India, followed by countries like the United States and Australia.
- Saudi Arabia is a major oil producer but does not play a significant role in LNG supply to India.
Therefore, the correct statements are 1 and 2 only.
Under a managed floating exchange rate system, the nation’s monetary authorities intervene in foreign exchange markets to - a)Smooth out short-run and long run fluctuations in exchange rates
- b)Keep exchange rates fixed among a group of nations
- c)Smooth out short-run fluctuations in exchange rates
- d)Keep exchange rates flexible
Correct answer is option 'C'. Can you explain this answer?
Under a managed floating exchange rate system, the nation’s monetary authorities intervene in foreign exchange markets to
a)
Smooth out short-run and long run fluctuations in exchange rates
b)
Keep exchange rates fixed among a group of nations
c)
Smooth out short-run fluctuations in exchange rates
d)
Keep exchange rates flexible
|
Srestha Deshpande answered |
's central bank intervenes in the foreign exchange market to influence the value of its currency, but allows the exchange rate to float within a certain range. This means that the central bank may buy or sell its own currency in the foreign exchange market to maintain a desired exchange rate.
The managed floating exchange rate system is a compromise between a fixed exchange rate system, where the exchange rate is pegged to another currency or a basket of currencies, and a flexible exchange rate system, where the exchange rate is determined by market forces.
In a managed floating exchange rate system, the central bank may use a variety of tools to influence the exchange rate, such as changing interest rates, adjusting reserve requirements for banks, and buying or selling government securities. The goal is to balance the needs of maintaining a stable exchange rate with the benefits of allowing market forces to determine the value of the currency.
Overall, a managed floating exchange rate system provides some stability and predictability for businesses and investors, while still allowing for some flexibility and responsiveness to changing market conditions.
The managed floating exchange rate system is a compromise between a fixed exchange rate system, where the exchange rate is pegged to another currency or a basket of currencies, and a flexible exchange rate system, where the exchange rate is determined by market forces.
In a managed floating exchange rate system, the central bank may use a variety of tools to influence the exchange rate, such as changing interest rates, adjusting reserve requirements for banks, and buying or selling government securities. The goal is to balance the needs of maintaining a stable exchange rate with the benefits of allowing market forces to determine the value of the currency.
Overall, a managed floating exchange rate system provides some stability and predictability for businesses and investors, while still allowing for some flexibility and responsiveness to changing market conditions.
When a country faces the Balance of Payment crisis it takes the mechanism of,' The Extended fund Facility (EFF)' to recover the crisis. This service is provided by- a)World Bank
- b)International Monetary Fund
- c)The UN Economic and Social council
- d)European Union
Correct answer is option 'B'. Can you explain this answer?
When a country faces the Balance of Payment crisis it takes the mechanism of,' The Extended fund Facility (EFF)' to recover the crisis. This service is provided by
a)
World Bank
b)
International Monetary Fund
c)
The UN Economic and Social council
d)
European Union
|
|
Nilesh Patel answered |
- The Extended Fund Facility (EFF) is a service provided by the International Monetary Fund (IMF) to its member countries which authorizes them to raise any amount of foreign exchange from it to fulfill their BoP crisis but on the conditions of structural reforms in the economy put by the body.
- It is the first agreement of its kind. India had signed this agreement with the IMF in the financial year 1981–82.
With reference to National Industrial Corridor Development Corporation (NICDC) Limited, consider the following statements.
1. It has been formed by renaming Delhi Mumbai Industrial Development Corporation Limited after the expansion of its mandate.
2. Government of India and Japan Bank for International Cooperation are its shareholders.
3. Its mandate is to develop and implement all industrial corridor projects in the country.Which of the statements given above are correct?- a)1, 2 and 3
- b)1 and 3 only
- c)1 and 2 only
- d)2 and 3 only
Correct answer is option 'A'. Can you explain this answer?
With reference to National Industrial Corridor Development Corporation (NICDC) Limited, consider the following statements.
1. It has been formed by renaming Delhi Mumbai Industrial Development Corporation Limited after the expansion of its mandate.
2. Government of India and Japan Bank for International Cooperation are its shareholders.
3. Its mandate is to develop and implement all industrial corridor projects in the country.
1. It has been formed by renaming Delhi Mumbai Industrial Development Corporation Limited after the expansion of its mandate.
2. Government of India and Japan Bank for International Cooperation are its shareholders.
3. Its mandate is to develop and implement all industrial corridor projects in the country.
Which of the statements given above are correct?
a)
1, 2 and 3
b)
1 and 3 only
c)
1 and 2 only
d)
2 and 3 only
|
|
Nilesh Patel answered |
- National Industrial Corridor Development Programme is India's most ambitious infrastructure programme aiming to develop new industrial cities as "Smart Cities" and converging next generation technologies across infrastructure sectors.
- Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) Limited, a special purpose company, was incorporated to establish, promote and facilitate development of Delhi Mumbai Industrial Corridor Project.
- Further, after announcement of other Industrial Corridor Projects, the mandate of DMICDC Ltd. has been expanded to develop and implement all Industrial Corridor Projects in the country and accordingly, the name has been changed to National Industrial Corridor Development Corporation (NICDC) Limited. Hence statement 1 and statement 3 are correct.
- NICDC is mandated to undertake project development activities for Investment Regions/Industrial Areas/ Economic Regions / Industrial Nodes and Township etc.
- The shareholding of NICDC is as follows:
- Govt of India – 49% o Japan Bank for International Cooperation – 26%
- Housing and Urban Development Corporation Ltd – 19.9%
- India Infrastructure Finance Company Ltd – 4.1%
- LIC – 1%
Hence statement 2 is correct.
Which of the following trends were seen in the Indian economy after the 1991 economic reforms?
1. The growth rate steadily increased.
2. Agriculture and allied sector continuously show a positive growth rate.
3. Share of the public sector in total investment increased.Which of the statements given above is/are correct?- a)1 only
- b)1 and 2 only
- c)2 only
- d)2 and 3 only
Correct answer is option 'C'. Can you explain this answer?
Which of the following trends were seen in the Indian economy after the 1991 economic reforms?
1. The growth rate steadily increased.
2. Agriculture and allied sector continuously show a positive growth rate.
3. Share of the public sector in total investment increased.
1. The growth rate steadily increased.
2. Agriculture and allied sector continuously show a positive growth rate.
3. Share of the public sector in total investment increased.
Which of the statements given above is/are correct?
a)
1 only
b)
1 and 2 only
c)
2 only
d)
2 and 3 only
|
|
Aarya Mehta answered |
Trends in the Indian Economy After 1991 Economic Reforms
1. Steady Increase in Growth Rate
After the 1991 economic reforms, the Indian economy witnessed a steady increase in the growth rate. The average GDP growth rate between 1991-92 and 2019-20 was around 6.8%, which is significantly higher than the pre-reform period's growth rate of around 5.6%.
2. Positive Growth Rate in Agriculture
Contrary to popular belief, the agriculture and allied sector has not shown a continuously positive growth rate after the 1991 economic reforms. While the sector did grow at an average annual rate of around 3.5% between 1991-92 and 2019-20, it witnessed fluctuations and even negative growth rates during some years.
3. Decrease in Public Sector Investment
The share of the public sector in total investment decreased after the 1991 economic reforms. The reforms aimed to reduce the government's role in the economy and promote private sector participation, which led to a decrease in public sector investment.
Therefore, the correct statement among the given options is "2 only," which indicates that the agriculture and allied sector has shown a positive growth rate but the share of the public sector in total investment decreased after the 1991 economic reforms.
1. Steady Increase in Growth Rate
After the 1991 economic reforms, the Indian economy witnessed a steady increase in the growth rate. The average GDP growth rate between 1991-92 and 2019-20 was around 6.8%, which is significantly higher than the pre-reform period's growth rate of around 5.6%.
2. Positive Growth Rate in Agriculture
Contrary to popular belief, the agriculture and allied sector has not shown a continuously positive growth rate after the 1991 economic reforms. While the sector did grow at an average annual rate of around 3.5% between 1991-92 and 2019-20, it witnessed fluctuations and even negative growth rates during some years.
3. Decrease in Public Sector Investment
The share of the public sector in total investment decreased after the 1991 economic reforms. The reforms aimed to reduce the government's role in the economy and promote private sector participation, which led to a decrease in public sector investment.
Therefore, the correct statement among the given options is "2 only," which indicates that the agriculture and allied sector has shown a positive growth rate but the share of the public sector in total investment decreased after the 1991 economic reforms.
Which of the following is not a consequence of rupee depreciation? - a)Increase in the cost of imports
- b)Foreign trips will become costlier
- c)Exports will become competitive
- d)Reduction in remittances from abroad
Correct answer is option 'D'. Can you explain this answer?
Which of the following is not a consequence of rupee depreciation?
a)
Increase in the cost of imports
b)
Foreign trips will become costlier
c)
Exports will become competitive
d)
Reduction in remittances from abroad
|
Rajesh Kulkarni answered |
Consequences of Rupee Depreciation
Increase in the Cost of Imports:
- When the value of the rupee depreciates, it means that it takes more rupees to purchase the same amount of foreign currency.
- As a result, the cost of imports increases because now more rupees are needed to buy the same quantity of goods from other countries.
- This leads to higher prices for imported goods and can contribute to inflation in the domestic economy.
Foreign Trips Will Become Costlier:
- Depreciation of the rupee also affects the cost of foreign travel and tourism.
- When the rupee depreciates, it means that more rupees are required to purchase foreign currency for travel purposes.
- As a result, the cost of foreign trips becomes more expensive for Indian tourists.
- This can discourage people from traveling abroad or force them to cut down on their spending while on vacation.
Exports Will Become Competitive:
- One of the potential benefits of rupee depreciation is that it can make exports more competitive in the international market.
- When the rupee depreciates, it means that fewer rupees are needed to purchase the same amount of foreign currency.
- This makes Indian goods relatively cheaper for foreign buyers, leading to an increase in demand for Indian exports.
- As a result, exporters can benefit from increased sales and potentially higher profits.
Reduction in Remittances from Abroad:
- Remittances refer to the money sent by individuals working abroad to their home country.
- When the rupee depreciates, it means that the value of the remittances in terms of the domestic currency decreases.
- This can discourage individuals from sending money back home or reduce the amount they send, leading to a reduction in remittances.
- As a consequence, there may be a negative impact on the income and consumption patterns of households that rely on remittances for their livelihood.
Conclusion:
- Out of the given options, option D, "Reduction in remittances from abroad," is not a consequence of rupee depreciation.
- The depreciation of the rupee can have various effects on the economy, including increased import costs, higher prices for foreign trips, and increased competitiveness of exports.
- However, it does not directly lead to a reduction in remittances from abroad, as that depends on factors such as the economic conditions and employment opportunities in the countries where Indian workers are employed.
Increase in the Cost of Imports:
- When the value of the rupee depreciates, it means that it takes more rupees to purchase the same amount of foreign currency.
- As a result, the cost of imports increases because now more rupees are needed to buy the same quantity of goods from other countries.
- This leads to higher prices for imported goods and can contribute to inflation in the domestic economy.
Foreign Trips Will Become Costlier:
- Depreciation of the rupee also affects the cost of foreign travel and tourism.
- When the rupee depreciates, it means that more rupees are required to purchase foreign currency for travel purposes.
- As a result, the cost of foreign trips becomes more expensive for Indian tourists.
- This can discourage people from traveling abroad or force them to cut down on their spending while on vacation.
Exports Will Become Competitive:
- One of the potential benefits of rupee depreciation is that it can make exports more competitive in the international market.
- When the rupee depreciates, it means that fewer rupees are needed to purchase the same amount of foreign currency.
- This makes Indian goods relatively cheaper for foreign buyers, leading to an increase in demand for Indian exports.
- As a result, exporters can benefit from increased sales and potentially higher profits.
Reduction in Remittances from Abroad:
- Remittances refer to the money sent by individuals working abroad to their home country.
- When the rupee depreciates, it means that the value of the remittances in terms of the domestic currency decreases.
- This can discourage individuals from sending money back home or reduce the amount they send, leading to a reduction in remittances.
- As a consequence, there may be a negative impact on the income and consumption patterns of households that rely on remittances for their livelihood.
Conclusion:
- Out of the given options, option D, "Reduction in remittances from abroad," is not a consequence of rupee depreciation.
- The depreciation of the rupee can have various effects on the economy, including increased import costs, higher prices for foreign trips, and increased competitiveness of exports.
- However, it does not directly lead to a reduction in remittances from abroad, as that depends on factors such as the economic conditions and employment opportunities in the countries where Indian workers are employed.
Consider the following statements with reference to food fortification in India:
1. Fortified rice is distributed through the Public Distribution System in some states.
2. Milk and edible oil require mandatory food fortification.
3. Andhra Pradesh leads in Food Fortification Index.Which of the statements given above is/are correct?- a)1 only
- b)1 and 3 only
- c)2 and 3 only
- d)1, 2 and
Correct answer is option 'B'. Can you explain this answer?
Consider the following statements with reference to food fortification in India:
1. Fortified rice is distributed through the Public Distribution System in some states.
2. Milk and edible oil require mandatory food fortification.
3. Andhra Pradesh leads in Food Fortification Index.
1. Fortified rice is distributed through the Public Distribution System in some states.
2. Milk and edible oil require mandatory food fortification.
3. Andhra Pradesh leads in Food Fortification Index.
Which of the statements given above is/are correct?
a)
1 only
b)
1 and 3 only
c)
2 and 3 only
d)
1, 2 and
|
|
Nilesh Patel answered |
- Recently, to initiate the process of taking the country towards nutritional security, the Department of Food & Public Distribution (DFPD) has been running a “Centrally Sponsored Pilot Scheme on Fortification of Rice & its distribution through Public Distribution System”. Hence statement 1 is correct.
- The Pilot Scheme has been approved for a period of three years beginning 2019-2020 with a total budget outlay of Rs.174.6 Crore. Fifteen State Governments have identified their respective districts (1 district per state) for implementing the Pilot Scheme.
- Already 5 states of Andhra Pradesh, Gujarat, Maharashtra, Tamil Nadu and Chhattisgarh have started the distribution of fortified rice in their respective identified districts. Special focus would be placed on supplying fortified rice to the 112 specially identified Aspirational Districts of the country.
- The Food Safety and Standards Authority of India (FSSAI) has revealed plans to make fortification mandatory for edible oil and milk but has not made it mandatory yet. The Food Safety and Standards Authority (FSSAI) is mulling over making fortification in edible oil with Vitamin A and D mandatory, in a bid to combat the malnutrition challenges including micronutrient deficiencies in India. In 2018, the regulator had set standards for fortification for five category of staples which includes wheat flour and rice (with iron, vitamin B12 and folic acid), milk and edible oil (with Vitamins A and D) and double fortified salt (with iodine and iron). The fortification norms are currently voluntary. In addition, it is intensifying its focus on local staples such as rice, wheat and salt. Hence statement 2 is not correct.
- The Food Safety and Standards Authority of India (FSSAI) releases the STATE FOOD FORTIFICATION INDEX for different states and union territories of India. As per the recently released report Andhra Pradesh ranks first. Hence statement 3 is correct.
Consider the following statements with reference to 'Soil Health Card' (SHC):
1. SHCs are provided to all farmers in the country at an interval of 2 years.
2. Soil samples are tested with respect to macro and micro nutrients only.
3. SHCs could lead to savings on fertilisers and increase in production.Which of the statements given above is/are correct?- a)1 and 2 only
- b)2 and 3 only
- c)1 and 3 only
- d)1 only
Correct answer is option 'C'. Can you explain this answer?
Consider the following statements with reference to 'Soil Health Card' (SHC):
1. SHCs are provided to all farmers in the country at an interval of 2 years.
2. Soil samples are tested with respect to macro and micro nutrients only.
3. SHCs could lead to savings on fertilisers and increase in production.
1. SHCs are provided to all farmers in the country at an interval of 2 years.
2. Soil samples are tested with respect to macro and micro nutrients only.
3. SHCs could lead to savings on fertilisers and increase in production.
Which of the statements given above is/are correct?
a)
1 and 2 only
b)
2 and 3 only
c)
1 and 3 only
d)
1 only
|
|
Rajiv Reddy answered |
- Soil Health Card is a printed report that a farmer will be handed over for each of his holdings. It is provided to all farmers in the country at an interval of 2 years to enable to apply recommended doses of nutrients based on soil test values to realise improved and sustainable soil health and fertility, low costs and high profits. Hence statement 1 is correct.
- Soil samples are tested with respect to 12 parameters: o Macro Nutrients - Nitrogen(N), Phosphorus(P), Potassium(K). o Secondary Nutrients- Sulphur(S). o Micro Nutrients- Zinc (Zn), Iron(Fe), Copper(Cu), Mangnese(Mn), Boron(B). o Physical parameters- pH (potential of hydrogen), EC (electrical conductivity),OC (organic Carbon). Hence statement 2 is not correct.
- The recent study conducted by the National Productivity Council concluded that use of soil health card has helped farmers substantially reduce the cost of production and achieve higher production, thereby increasing farm income.
- Application of fertilisers as per the recommendation of soil health cards led to savings in nitrogen fertilisers such as urea, which resulted in reduction in the cost of cultivation. Hence statement 3 is correct.
Gross capital formation will increase if: - gross domestic savings increases
- gross domestic consumption increases
- GDP increases
Select the correct answer using the codes given below.- a)1 only
- b)1 and 2 only
- c)1 and 3 only
- d)None
Correct answer is option 'D'. Can you explain this answer?
Gross capital formation will increase if:
- gross domestic savings increases
- gross domestic consumption increases
- GDP increases
Select the correct answer using the codes given below.
a)
1 only
b)
1 and 2 only
c)
1 and 3 only
d)
None
|
Aarya Nambiar answered |
Explanation:
Gross capital formation refers to the total amount of investment made in the economy. It includes investments in fixed assets, such as machinery, buildings, and infrastructure. The options given in the question are:
1. Gross domestic savings increases:
When gross domestic savings increase, it means that people are saving a larger portion of their income, which can be used for investment purposes. This can lead to an increase in gross capital formation.
2. Gross domestic consumption increases:
When gross domestic consumption increases, it means that people are spending more and saving less. This can lead to a decrease in gross capital formation as there is less money available for investment.
3. GDP increases:
When GDP increases, it means that the economy is growing, and there is more money available for investment. This can lead to an increase in gross capital formation.
Based on the above explanations, it can be seen that only option 1 can lead to an increase in gross capital formation. Therefore, the correct answer is option D, none of the above.
Gross capital formation refers to the total amount of investment made in the economy. It includes investments in fixed assets, such as machinery, buildings, and infrastructure. The options given in the question are:
1. Gross domestic savings increases:
When gross domestic savings increase, it means that people are saving a larger portion of their income, which can be used for investment purposes. This can lead to an increase in gross capital formation.
2. Gross domestic consumption increases:
When gross domestic consumption increases, it means that people are spending more and saving less. This can lead to a decrease in gross capital formation as there is less money available for investment.
3. GDP increases:
When GDP increases, it means that the economy is growing, and there is more money available for investment. This can lead to an increase in gross capital formation.
Based on the above explanations, it can be seen that only option 1 can lead to an increase in gross capital formation. Therefore, the correct answer is option D, none of the above.
Consider the following statements about Pradhan Mantri Formalisation of Micro food processing Enterprises (PM-FME):
1. It has been launched under the Aatmanirbhar Bharat Abhiyan.
2. It primarily focuses on the unorganized segment of the food processing industry.
3. It envisages enhancing minor forest produce in the tribal districts.Which of the statements given above is/are correct?- a)1 only
- b)1 and 2 only
- c)2 and 3 only
- d)1, 2 and 3
Correct answer is option 'D'. Can you explain this answer?
Consider the following statements about Pradhan Mantri Formalisation of Micro food processing Enterprises (PM-FME):
1. It has been launched under the Aatmanirbhar Bharat Abhiyan.
2. It primarily focuses on the unorganized segment of the food processing industry.
3. It envisages enhancing minor forest produce in the tribal districts.
1. It has been launched under the Aatmanirbhar Bharat Abhiyan.
2. It primarily focuses on the unorganized segment of the food processing industry.
3. It envisages enhancing minor forest produce in the tribal districts.
Which of the statements given above is/are correct?
a)
1 only
b)
1 and 2 only
c)
2 and 3 only
d)
1, 2 and 3
|
Stuti Dey answered |
The correct answer is option 'D' - 1, 2 and 3.
Explanation:
Statement 1: It has been launched under the Aatmanirbhar Bharat Abhiyan.
- This statement is correct. Pradhan Mantri Formalisation of Micro food processing Enterprises (PM-FME) has been launched as a part of the Aatmanirbhar Bharat Abhiyan. The Aatmanirbhar Bharat Abhiyan is a self-reliant India campaign launched by the Government of India to promote economic growth and resilience in the wake of the COVID-19 pandemic.
Statement 2: It primarily focuses on the unorganized segment of the food processing industry.
- This statement is correct. PM-FME primarily focuses on the unorganized segment of the food processing industry. The unorganized segment of the food processing industry consists of small-scale enterprises that lack access to modern technology, infrastructure, and markets. PM-FME aims to provide support to these enterprises and promote their formalization, thereby enhancing their competitiveness and contribution to the economy.
Statement 3: It envisages enhancing minor forest produce in the tribal districts.
- This statement is correct. PM-FME envisages enhancing minor forest produce in the tribal districts. Minor forest produce refers to the non-timber forest products that are collected and extracted by tribal communities from the forests. These products include items like wild fruits, vegetables, herbs, honey, and bamboo. PM-FME aims to support the processing and value addition of minor forest produce in the tribal districts, thereby providing livelihood opportunities to tribal communities and promoting sustainable forest management.
In conclusion, all the given statements about Pradhan Mantri Formalisation of Micro food processing Enterprises (PM-FME) are correct. It has been launched under the Aatmanirbhar Bharat Abhiyan and primarily focuses on the unorganized segment of the food processing industry. It also aims to enhance minor forest produce in the tribal districts.
Explanation:
Statement 1: It has been launched under the Aatmanirbhar Bharat Abhiyan.
- This statement is correct. Pradhan Mantri Formalisation of Micro food processing Enterprises (PM-FME) has been launched as a part of the Aatmanirbhar Bharat Abhiyan. The Aatmanirbhar Bharat Abhiyan is a self-reliant India campaign launched by the Government of India to promote economic growth and resilience in the wake of the COVID-19 pandemic.
Statement 2: It primarily focuses on the unorganized segment of the food processing industry.
- This statement is correct. PM-FME primarily focuses on the unorganized segment of the food processing industry. The unorganized segment of the food processing industry consists of small-scale enterprises that lack access to modern technology, infrastructure, and markets. PM-FME aims to provide support to these enterprises and promote their formalization, thereby enhancing their competitiveness and contribution to the economy.
Statement 3: It envisages enhancing minor forest produce in the tribal districts.
- This statement is correct. PM-FME envisages enhancing minor forest produce in the tribal districts. Minor forest produce refers to the non-timber forest products that are collected and extracted by tribal communities from the forests. These products include items like wild fruits, vegetables, herbs, honey, and bamboo. PM-FME aims to support the processing and value addition of minor forest produce in the tribal districts, thereby providing livelihood opportunities to tribal communities and promoting sustainable forest management.
In conclusion, all the given statements about Pradhan Mantri Formalisation of Micro food processing Enterprises (PM-FME) are correct. It has been launched under the Aatmanirbhar Bharat Abhiyan and primarily focuses on the unorganized segment of the food processing industry. It also aims to enhance minor forest produce in the tribal districts.
Consider the following statements about Consumer Food Price Index (CFPI). - It is a measure of change in retail prices of food products consumed by a defined population group in a given area
- It is released by Central Statistics Office (CSO) for three categories -rural, urban and combined.
- Cereals and products constitute more than 50 percent weight within CFPI.
Which of the above statements is/are correct?- a)1, 2
- b)1, 3
- c)2, 3
- d)1, 2, 3
Correct answer is option 'A'. Can you explain this answer?
Consider the following statements about Consumer Food Price Index (CFPI).
- It is a measure of change in retail prices of food products consumed by a defined population group in a given area
- It is released by Central Statistics Office (CSO) for three categories -rural, urban and combined.
- Cereals and products constitute more than 50 percent weight within CFPI.
Which of the above statements is/are correct?
a)
1, 2
b)
1, 3
c)
2, 3
d)
1, 2, 3
|
|
Pooja Choudhury answered |
- Consumer Food Price Index (CFPI) is a measure of change in retail prices of food products consumed by a defined population group in a given area with reference to a base year.
- The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation (MOSPI) started releasing Consumer Food Price Indices (CFPI) for three categories -rural, urban and combined – separately on an all India basis with effect from May, 2014.
- Like Consumer Price Index (CPI), the CFPI is also calculated on a monthly basis and methodology remains the same as CPI. The base year presently used is 2012.
With reference to the Earth Observation Satellite (EOS-01), recently launched by the ISRO, consider the following statements:
1. It was launched onboard the Geosynchronous Satellite Launch Vehicle (GSLV).
2. It operates in the Sun-synchronous orbit.
3. It was launched from Abdul Kalam Island, Odisha.Which of the statements given above is/are correct?- a)1 and 2 only
- b)2 only
- c)2 and 3 only
- d)1 and 3 only
Correct answer is option 'B'. Can you explain this answer?
With reference to the Earth Observation Satellite (EOS-01), recently launched by the ISRO, consider the following statements:
1. It was launched onboard the Geosynchronous Satellite Launch Vehicle (GSLV).
2. It operates in the Sun-synchronous orbit.
3. It was launched from Abdul Kalam Island, Odisha.
1. It was launched onboard the Geosynchronous Satellite Launch Vehicle (GSLV).
2. It operates in the Sun-synchronous orbit.
3. It was launched from Abdul Kalam Island, Odisha.
Which of the statements given above is/are correct?
a)
1 and 2 only
b)
2 only
c)
2 and 3 only
d)
1 and 3 only
|
|
Saumya Kulkarni answered |
Explanation:
The Earth Observation Satellite (EOS-01) was recently launched by the Indian Space Research Organisation (ISRO). Let us analyze the given statements one by one:
1. It was launched onboard the Geosynchronous Satellite Launch Vehicle (GSLV).
This statement is incorrect. The EOS-01 was not launched onboard the Geosynchronous Satellite Launch Vehicle (GSLV). It was actually launched onboard the Polar Satellite Launch Vehicle (PSLV-C49) from the Satish Dhawan Space Centre (SDSC) in Sriharikota, Andhra Pradesh.
2. It operates in the Sun-synchronous orbit.
This statement is correct. The EOS-01 operates in the Sun-synchronous orbit, which means that it passes over any given point on the Earth's surface at the same local solar time.
3. It was launched from Abdul Kalam Island, Odisha.
This statement is incorrect. The EOS-01 was not launched from Abdul Kalam Island, Odisha. It was launched from the Satish Dhawan Space Centre (SDSC) in Sriharikota, Andhra Pradesh.
Therefore, only statement 2 is correct, and the correct option is (B) 2 only.
The Earth Observation Satellite (EOS-01) was recently launched by the Indian Space Research Organisation (ISRO). Let us analyze the given statements one by one:
1. It was launched onboard the Geosynchronous Satellite Launch Vehicle (GSLV).
This statement is incorrect. The EOS-01 was not launched onboard the Geosynchronous Satellite Launch Vehicle (GSLV). It was actually launched onboard the Polar Satellite Launch Vehicle (PSLV-C49) from the Satish Dhawan Space Centre (SDSC) in Sriharikota, Andhra Pradesh.
2. It operates in the Sun-synchronous orbit.
This statement is correct. The EOS-01 operates in the Sun-synchronous orbit, which means that it passes over any given point on the Earth's surface at the same local solar time.
3. It was launched from Abdul Kalam Island, Odisha.
This statement is incorrect. The EOS-01 was not launched from Abdul Kalam Island, Odisha. It was launched from the Satish Dhawan Space Centre (SDSC) in Sriharikota, Andhra Pradesh.
Therefore, only statement 2 is correct, and the correct option is (B) 2 only.
The 'Atal Jyoti Yojana' recently seen in the news is related to:- a)Installation of solar street lights in electricity deficient area.
- b)Achieving universal household electrification.
- c)Providing energy efficient LED tube lights and fans to people at subsidized rates.
- d)Providing incentives to local bodies for setting up waste to energy generation plants.
Correct answer is option 'A'. Can you explain this answer?
The 'Atal Jyoti Yojana' recently seen in the news is related to:
a)
Installation of solar street lights in electricity deficient area.
b)
Achieving universal household electrification.
c)
Providing energy efficient LED tube lights and fans to people at subsidized rates.
d)
Providing incentives to local bodies for setting up waste to energy generation plants.
|
|
Nilesh Patel answered |
- The Ministry of New and Renewable Energy (MNRE) launched the Atal Jyoti Yojana (AJAY) to illuminate dark regions across five states through solar power.
- It is a sub scheme under off –grid and decentralized solar application scheme of Ministry of New and Renewable Energy (MNRE), Govt. of India.
- The scheme covers 5 states only namely - Uttar Pradesh, Assam, Bihar, Jharkhand, and Odisha.
- The objective of the Atal Jyoti Scheme in India is to install solar energy-based street lights in those areas where there is a shortage of electricity. Hence option (a) is the correct answer.
- The Phase I was implemented during September 2016- March 2018. The Phase II is being implemented during 2018-19 and 2019-20.
Consider the following statements about e-Kuber. - e-Kuber is the Core Banking Solution of SBI.
- State /central Governments are also the users.
- It is a portal based service.
Which of the above statements is/are correct?- a)1, 2
- b)2, 3
- c)1, 3
- d)1, 2, 3
Correct answer is option 'B'. Can you explain this answer?
Consider the following statements about e-Kuber.
- e-Kuber is the Core Banking Solution of SBI.
- State /central Governments are also the users.
- It is a portal based service.
Which of the above statements is/are correct?
a)
1, 2
b)
2, 3
c)
1, 3
d)
1, 2, 3
|
|
Nilesh Patel answered |
- e-Kuber is the Core Banking Solution of Reserve Bank of India. E-Kuber provides the provision of a single current account for each bank across the country, with decentralised access to this account from anywhere-anytime using portal based services in a safe manner.
- e-Kuber enables ease of operations. The system also benefits state /central Governments as users. Some of the facilities offered include the provision of portal based access which allows Government departments to access on anywhere-anytime basis and view their balances.
- The e-kuber system can be accessed either through INFINET or Internet.
Which of the following are the factors lead to the skewed cropping pattern?1. Minimum Support Price
2. Input subsidies
3. Availability of groundwater
4. Demand driven productionSelect the correct answer using the code given below.- a)3 and 4 only
- b)1 and 2 only
- c)1 and 4 only
- d)1, 2 and 3 only
Correct answer is option 'B'. Can you explain this answer?
Which of the following are the factors lead to the skewed cropping pattern?
1. Minimum Support Price
2. Input subsidies
3. Availability of groundwater
4. Demand driven production
2. Input subsidies
3. Availability of groundwater
4. Demand driven production
Select the correct answer using the code given below.
a)
3 and 4 only
b)
1 and 2 only
c)
1 and 4 only
d)
1, 2 and 3 only
|
Maitri Menon answered |
Factors Leading to Skewed Cropping Pattern
The cropping pattern in agriculture refers to the proportion of land allocated to different crops. A skewed cropping pattern occurs when certain crops dominate the agricultural landscape while others are limited in their cultivation. Several factors contribute to this skewed cropping pattern:
1. Minimum Support Price (MSP):
The Minimum Support Price is a price set by the government to ensure remunerative prices for farmers' produce, particularly for essential crops like wheat and rice. However, MSPs are often higher for some crops than others, leading to a preference for those crops. This preference can lead to an imbalanced cropping pattern as farmers prioritize crops with higher MSPs, resulting in overproduction of those crops and neglect of others.
2. Input Subsidies:
Input subsidies, such as fertilizer subsidies, are provided by the government to reduce the cost of inputs for farmers. These subsidies are often directed towards specific crops, such as rice and wheat, which are considered essential for food security. As a result, farmers tend to focus on cultivating these subsidized crops, leading to a skewed cropping pattern.
3. Availability of Groundwater:
The availability of groundwater plays a crucial role in determining crop choices. Crops that require a high amount of water, such as paddy rice, are more likely to be cultivated in areas with ample groundwater resources. However, in regions with limited groundwater availability, farmers are compelled to opt for less water-intensive crops. This discrepancy in water availability can lead to a skewed cropping pattern.
4. Demand-Driven Production:
The demand for certain crops in the market can influence farmers' cropping choices. Crops with high market demand and better price prospects are more likely to be cultivated extensively, resulting in a skewed cropping pattern. This demand-driven production can be influenced by factors like changing consumer preferences, export potential, and government policies.
Conclusion:
In conclusion, the factors that contribute to a skewed cropping pattern include the Minimum Support Price (MSP), input subsidies, availability of groundwater, and demand-driven production. These factors can lead to an imbalanced allocation of land and resources, favoring certain crops over others. Understanding these factors is crucial for policymakers to develop strategies that promote a more sustainable and diversified cropping pattern, ensuring food security and income stability for farmers.
The cropping pattern in agriculture refers to the proportion of land allocated to different crops. A skewed cropping pattern occurs when certain crops dominate the agricultural landscape while others are limited in their cultivation. Several factors contribute to this skewed cropping pattern:
1. Minimum Support Price (MSP):
The Minimum Support Price is a price set by the government to ensure remunerative prices for farmers' produce, particularly for essential crops like wheat and rice. However, MSPs are often higher for some crops than others, leading to a preference for those crops. This preference can lead to an imbalanced cropping pattern as farmers prioritize crops with higher MSPs, resulting in overproduction of those crops and neglect of others.
2. Input Subsidies:
Input subsidies, such as fertilizer subsidies, are provided by the government to reduce the cost of inputs for farmers. These subsidies are often directed towards specific crops, such as rice and wheat, which are considered essential for food security. As a result, farmers tend to focus on cultivating these subsidized crops, leading to a skewed cropping pattern.
3. Availability of Groundwater:
The availability of groundwater plays a crucial role in determining crop choices. Crops that require a high amount of water, such as paddy rice, are more likely to be cultivated in areas with ample groundwater resources. However, in regions with limited groundwater availability, farmers are compelled to opt for less water-intensive crops. This discrepancy in water availability can lead to a skewed cropping pattern.
4. Demand-Driven Production:
The demand for certain crops in the market can influence farmers' cropping choices. Crops with high market demand and better price prospects are more likely to be cultivated extensively, resulting in a skewed cropping pattern. This demand-driven production can be influenced by factors like changing consumer preferences, export potential, and government policies.
Conclusion:
In conclusion, the factors that contribute to a skewed cropping pattern include the Minimum Support Price (MSP), input subsidies, availability of groundwater, and demand-driven production. These factors can lead to an imbalanced allocation of land and resources, favoring certain crops over others. Understanding these factors is crucial for policymakers to develop strategies that promote a more sustainable and diversified cropping pattern, ensuring food security and income stability for farmers.
With reference to Investor Education and Protection Fund (IEPF), consider the following statements:
1. It is set up under the Companies Act, 2013 to increase awareness of investors and protect their interests.
2. It consists of only unclaimed amount from shares and bonds and no grant from the government is provided.Which of the statements given above is/are correct?- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'A'. Can you explain this answer?
With reference to Investor Education and Protection Fund (IEPF), consider the following statements:
1. It is set up under the Companies Act, 2013 to increase awareness of investors and protect their interests.
2. It consists of only unclaimed amount from shares and bonds and no grant from the government is provided.
1. It is set up under the Companies Act, 2013 to increase awareness of investors and protect their interests.
2. It consists of only unclaimed amount from shares and bonds and no grant from the government is provided.
Which of the statements given above is/are correct?
a)
1 only
b)
2 only
c)
Both 1 and 2
d)
Neither 1 nor 2
|
|
Jaya Mehta answered |
Investor Education and Protection Fund (IEPF)
Investor Education and Protection Fund (IEPF) is a fund established under the Companies Act, 2013, with the aim of increasing awareness among investors and protecting their interests. Let's analyze the given statements:
Statement 1: It is set up under the Companies Act, 2013 to increase awareness of investors and protect their interests.
- This statement is correct. The IEPF is indeed established under the Companies Act, 2013 to educate investors about their rights and responsibilities and to safeguard their interests in the Indian financial market.
Statement 2: It consists of only unclaimed amount from shares and bonds and no grant from the government is provided.
- This statement is incorrect. The IEPF consists not only of unclaimed amounts from shares and bonds but also includes dividends, deposits, and any other amount transferred by companies to the fund. Additionally, the government may provide grants to the IEPF to support its operations and investor protection initiatives.
In conclusion, only statement 1 is correct as per the description and functioning of the Investor Education and Protection Fund. It is essential for investors to be aware of such funds to safeguard their investments and seek redressal in case of any disputes or discrepancies.
Investor Education and Protection Fund (IEPF) is a fund established under the Companies Act, 2013, with the aim of increasing awareness among investors and protecting their interests. Let's analyze the given statements:
Statement 1: It is set up under the Companies Act, 2013 to increase awareness of investors and protect their interests.
- This statement is correct. The IEPF is indeed established under the Companies Act, 2013 to educate investors about their rights and responsibilities and to safeguard their interests in the Indian financial market.
Statement 2: It consists of only unclaimed amount from shares and bonds and no grant from the government is provided.
- This statement is incorrect. The IEPF consists not only of unclaimed amounts from shares and bonds but also includes dividends, deposits, and any other amount transferred by companies to the fund. Additionally, the government may provide grants to the IEPF to support its operations and investor protection initiatives.
In conclusion, only statement 1 is correct as per the description and functioning of the Investor Education and Protection Fund. It is essential for investors to be aware of such funds to safeguard their investments and seek redressal in case of any disputes or discrepancies.
Consider the following statements about Foreign portfolio investment (FPI) in India. - It is any equity investment by non-residents which is less than or equal to 50% of capital in a company.
- As per SEBI regulations, FPIs are not allowed to invest in unlisted shares and investment in unlisted entities.
- According to SEBI rules, investors are prohibited from investing in government bonds.
Which of the above statements is/are correct?- a)1, 2
- b)2 only
- c)1, 3
- d)1, 2, 3
Correct answer is option 'B'. Can you explain this answer?
Consider the following statements about Foreign portfolio investment (FPI) in India.
- It is any equity investment by non-residents which is less than or equal to 50% of capital in a company.
- As per SEBI regulations, FPIs are not allowed to invest in unlisted shares and investment in unlisted entities.
- According to SEBI rules, investors are prohibited from investing in government bonds.
Which of the above statements is/are correct?
a)
1, 2
b)
2 only
c)
1, 3
d)
1, 2, 3
|
Tanishq Sarkar answered |
Understanding Foreign Portfolio Investment (FPI) in India
Foreign Portfolio Investment (FPI) plays a crucial role in the Indian economy, allowing non-resident investors to participate in the Indian financial markets. Let’s examine the statements in question:
Statement 1: FPI Definition
- FPI refers to any equity investment by non-residents, but the notion that it must be less than or equal to 50% of capital in a company is incorrect.
- FPI can involve multiple investment patterns, and it is not capped at a specific percentage for being classified as FPI.
Statement 2: SEBI Regulations on Unlisted Shares
- This statement is correct. According to SEBI regulations, FPIs are strictly prohibited from investing in unlisted shares and unlisted entities.
- This regulation is aimed at maintaining a structured investment landscape and protecting the interests of both investors and the market.
Statement 3: Investment in Government Bonds
- This statement is incorrect. SEBI allows FPIs to invest in government bonds among other securities.
- Government bonds are considered a stable investment option, and FPIs are actively encouraged to invest in them as part of their portfolio diversification.
Conclusion
Based on the analysis:
- Statement 1 is incorrect.
- Statement 2 is correct.
- Statement 3 is incorrect.
Therefore, the only correct statement is option 'B', which states that "2 only" is correct. This highlights the importance of understanding FPI regulations accurately for informed investment decisions.
Foreign Portfolio Investment (FPI) plays a crucial role in the Indian economy, allowing non-resident investors to participate in the Indian financial markets. Let’s examine the statements in question:
Statement 1: FPI Definition
- FPI refers to any equity investment by non-residents, but the notion that it must be less than or equal to 50% of capital in a company is incorrect.
- FPI can involve multiple investment patterns, and it is not capped at a specific percentage for being classified as FPI.
Statement 2: SEBI Regulations on Unlisted Shares
- This statement is correct. According to SEBI regulations, FPIs are strictly prohibited from investing in unlisted shares and unlisted entities.
- This regulation is aimed at maintaining a structured investment landscape and protecting the interests of both investors and the market.
Statement 3: Investment in Government Bonds
- This statement is incorrect. SEBI allows FPIs to invest in government bonds among other securities.
- Government bonds are considered a stable investment option, and FPIs are actively encouraged to invest in them as part of their portfolio diversification.
Conclusion
Based on the analysis:
- Statement 1 is incorrect.
- Statement 2 is correct.
- Statement 3 is incorrect.
Therefore, the only correct statement is option 'B', which states that "2 only" is correct. This highlights the importance of understanding FPI regulations accurately for informed investment decisions.
With reference to India economy, consider the following: - Bank rate
- Open market operations
- Public debt
- Public revenue
Which of the above is/are component/components of Monetary Policy?- a)1 only
- b)2, 3 and 4
- c)1 and 2
- d)1, 3 and 4
Correct answer is option 'C'. Can you explain this answer?
With reference to India economy, consider the following:
- Bank rate
- Open market operations
- Public debt
- Public revenue
Which of the above is/are component/components of Monetary Policy?
a)
1 only
b)
2, 3 and 4
c)
1 and 2
d)
1, 3 and 4
|
Gauri Desai answered |
Monetary Policy Components in India
Monetary policy refers to the process by which the central bank manages the money supply and interest rates in the economy to achieve specific goals such as price stability, economic growth, and employment. In India, the Reserve Bank of India (RBI) is responsible for formulating and implementing monetary policy. The components of monetary policy in India are:
1. Bank Rate:
The bank rate is the rate at which the RBI lends money to commercial banks. It influences the interest rates in the economy, which, in turn, affects the borrowing and spending behavior of individuals and businesses. A higher bank rate means higher borrowing costs for banks, which can lead to higher lending rates and lower borrowing and spending in the economy.
2. Open Market Operations:
Open market operations refer to the buying and selling of government securities by the RBI in the open market. When the RBI buys government securities, it injects money into the economy, which can stimulate borrowing and spending. When it sells government securities, it withdraws money from the economy, which can reduce borrowing and spending.
3. Public Debt:
Public debt refers to the total amount of money owed by the government to individuals, businesses, and other countries. The RBI manages public debt by buying and selling government securities, which can affect the money supply in the economy.
4. Public Revenue:
Public revenue refers to the income received by the government from taxes, fees, and other sources. The RBI can influence public revenue by adjusting the interest rates, which can affect the borrowing and spending behavior of individuals and businesses.
Conclusion:
Out of the given options, Bank rate and Open market operations are the components of monetary policy in India. Hence, the correct answer is option C.
Monetary policy refers to the process by which the central bank manages the money supply and interest rates in the economy to achieve specific goals such as price stability, economic growth, and employment. In India, the Reserve Bank of India (RBI) is responsible for formulating and implementing monetary policy. The components of monetary policy in India are:
1. Bank Rate:
The bank rate is the rate at which the RBI lends money to commercial banks. It influences the interest rates in the economy, which, in turn, affects the borrowing and spending behavior of individuals and businesses. A higher bank rate means higher borrowing costs for banks, which can lead to higher lending rates and lower borrowing and spending in the economy.
2. Open Market Operations:
Open market operations refer to the buying and selling of government securities by the RBI in the open market. When the RBI buys government securities, it injects money into the economy, which can stimulate borrowing and spending. When it sells government securities, it withdraws money from the economy, which can reduce borrowing and spending.
3. Public Debt:
Public debt refers to the total amount of money owed by the government to individuals, businesses, and other countries. The RBI manages public debt by buying and selling government securities, which can affect the money supply in the economy.
4. Public Revenue:
Public revenue refers to the income received by the government from taxes, fees, and other sources. The RBI can influence public revenue by adjusting the interest rates, which can affect the borrowing and spending behavior of individuals and businesses.
Conclusion:
Out of the given options, Bank rate and Open market operations are the components of monetary policy in India. Hence, the correct answer is option C.
With reference to the outcomes observed in the decade following the LPG reforms initiated in India in 1991, consider the following statements.
1. It led to rapid increase in FDI and forex reserves.
2. It led to increase in the GDP growth of the Indian economy.
3. It led to lower growth rate in manufacturing industries.
Which of the statements given above is/are correct?
- a)1 only
- b)1 and 2 only
- c)2 and 3 only
- d)1, 2 and 3
Correct answer is option 'B'. Can you explain this answer?
With reference to the outcomes observed in the decade following the LPG reforms initiated in India in 1991, consider the following statements.
1. It led to rapid increase in FDI and forex reserves.
2. It led to increase in the GDP growth of the Indian economy.
3. It led to lower growth rate in manufacturing industries.
1. It led to rapid increase in FDI and forex reserves.
2. It led to increase in the GDP growth of the Indian economy.
3. It led to lower growth rate in manufacturing industries.
Which of the statements given above is/are correct?
a)
1 only
b)
1 and 2 only
c)
2 and 3 only
d)
1, 2 and 3
|
|
Anjali Rao answered |
- In 1991, India met with an economic crisis relating to its external debt — the government was not able to make repayments on its borrowings from abroad; foreign exchange reserves, which we generally maintain to import petrol and other important items, dropped to levels that were not sufficient for even a fortnight. The crisis was further compounded by rising prices of essential goods. India approached the International Bank for Reconstruction and Development (IBRD), popularly known as World Bank and the International Monetary Fund (IMF), and received $7 billion as a loan to manage the crisis. For availing the loan, these international agencies expected India to liberalise and open up the economy by removing restrictions on the private sector, reduce the role of the government in many areas and remove trade restrictions. This led to Liberalization, Privatization and Globalization, popularly known as LPG reforms.
- Outcomes of reforms: The growth of GDP increased from 5.6 per cent during 1980-91 to 6.4 per cent during 1992-2001. This shows that there has been an increase in the overall GDP growth in the reform period. Hence statement 2 is correct.
- The opening up of the economy has led to rapid increase in foreign direct investment and foreign exchange reserves. The foreign investment, which includes foreign direct investment and foreign institutional investment, increased from about US $ 100 million in 1990-91 to US $ 150 billion in 2003-04. There has been an increase in the foreign exchange reserves from about US $ 6 billion in 1990- 91 to US $ 125 billion in 2004-05. Hence statement 1 is correct.
With reference to 'Equalisation Levy 2.0', which of the following statements is/are correct?
1. It covers online sales of all goods and services.
2. It is applied to only non-resident companies.
3. India is the only G20 nation to have implemented such a tax.Select the correct answer using the code given below.- a)1 and 2 only
- b)2 only
- c)3 only
- d)1, 2 and 3
Correct answer is option 'A'. Can you explain this answer?
With reference to 'Equalisation Levy 2.0', which of the following statements is/are correct?
1. It covers online sales of all goods and services.
2. It is applied to only non-resident companies.
3. India is the only G20 nation to have implemented such a tax.
1. It covers online sales of all goods and services.
2. It is applied to only non-resident companies.
3. India is the only G20 nation to have implemented such a tax.
Select the correct answer using the code given below.
a)
1 and 2 only
b)
2 only
c)
3 only
d)
1, 2 and 3
|
|
Nilesh Patel answered |
- Recently, several European nations like France and Italy have asked tech giants like Google, Apple, Facebook, and Amazon (GAFA) to pay Digital service tax.
- Digital service tax covers online sales of goods and services. It includes policies that specifically target businesses that provide products or services through digital means. Hence statement 1 is correct.
- India was the first country to introduce a digital tax called ‘Equalisation Levy’ in 2016 at the rate of 6%. EL 1.0 was payable by Indian residents on online advertisement services purchased from nonresident companies.
- From 1 April 2020, the scope of equalization levy has been expanded to include a 2% levy on all online sales of goods or services into India by non-resident e-commerce operators (‘EL 2.0’). Hence statement 2 is correct.
- Recognizing the need to reform international tax rules for taxing digital companies such that countries get their fair share of taxes, the OECD has been working on proposals for new rules but so far has not arrived at a consensus on the final scope and manner of taxation.
- Meanwhile, many countries such as France (3% levy), Italy, Turkey, Austria, UK, Malaysia, Spain etc. have either proposed or implemented a unilateral digital tax applicable to digital companies, called as the ‘Digital Services Tax’ (‘DST’). Hence statement 3 is not correct.
Buoyancy of tax refers to: - a)Relationship between the changes in government’s tax revenue growth and the changes in Inflation.
- b)Relationship between the changes in government’s tax revenue growth and the changes in GDP.
- c)Relationship between the changes in government’s tax revenue growth and the changes in Investment.
- d)Relationship between the changes in government’s tax revenue growth and the changes in demand.
Correct answer is option 'B'. Can you explain this answer?
Buoyancy of tax refers to:
a)
Relationship between the changes in government’s tax revenue growth and the changes in Inflation.
b)
Relationship between the changes in government’s tax revenue growth and the changes in GDP.
c)
Relationship between the changes in government’s tax revenue growth and the changes in Investment.
d)
Relationship between the changes in government’s tax revenue growth and the changes in demand.
|
Gitanjali Khanna answered |
Explanation:
Buoyancy of tax refers to the relationship between the changes in government's tax revenue growth and the changes in GDP.
Therefore, when we talk about the buoyancy of tax, we are looking at how changes in government's tax revenue growth correspond to fluctuations in GDP. This relationship is crucial for understanding the effectiveness of the tax system in capturing economic growth and generating revenue for the government.
Buoyancy of tax refers to the relationship between the changes in government's tax revenue growth and the changes in GDP.
- Tax Revenue Growth: Tax revenue is the income that government receives from taxation. The growth in tax revenue indicates the increase in the amount of money collected through taxes by the government.
- GDP: Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. It is a key indicator of a country's economic performance.
- Relationship: The buoyancy of tax measures how responsive tax revenue is to changes in GDP. If tax revenue grows at a faster rate than GDP, it indicates that the tax system is buoyant. On the other hand, if tax revenue grows at a slower rate than GDP, it suggests that the tax system is not very responsive to economic growth.
Therefore, when we talk about the buoyancy of tax, we are looking at how changes in government's tax revenue growth correspond to fluctuations in GDP. This relationship is crucial for understanding the effectiveness of the tax system in capturing economic growth and generating revenue for the government.
With reference to Fixed Term Employment, consider the following statements:
1. In this system, payment is not fixed and can be altered during the term of the contract.
2. In this system, the employee is not on the payroll of the company.Which of the statements given above is/are correct?- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'B'. Can you explain this answer?
With reference to Fixed Term Employment, consider the following statements:
1. In this system, payment is not fixed and can be altered during the term of the contract.
2. In this system, the employee is not on the payroll of the company.
1. In this system, payment is not fixed and can be altered during the term of the contract.
2. In this system, the employee is not on the payroll of the company.
Which of the statements given above is/are correct?
a)
1 only
b)
2 only
c)
Both 1 and 2
d)
Neither 1 nor 2
|
|
Nilesh Patel answered |
- Fixed-term employment is a contract in which a company or an enterprise hires an employee for a specific period of time. In most cases, it is for a year but can be renewed after the term expires depending on the requirement. In fixed-term employment, the employee is not on the payroll of the company. Hence statement 2 is correct.
- Under the fixed-term employment contract, the payout or the payment is fixed in advance and is not altered till the term expires. Hence statement 1 is not correct.
Which of the following statements is/are correct about the 'Foreign Institutional Investment'?
1. They can invest in both the listed and unlisted entities.
2. They can invest at the time of initial allotment.
3. They can involve in the direct management of the enterprise.Select the correct answer using the code given below.- a)1 and 2 only
- b)2 only
- c)3 only
- d)2 and 3 only
Correct answer is option 'B'. Can you explain this answer?
Which of the following statements is/are correct about the 'Foreign Institutional Investment'?
1. They can invest in both the listed and unlisted entities.
2. They can invest at the time of initial allotment.
3. They can involve in the direct management of the enterprise.
1. They can invest in both the listed and unlisted entities.
2. They can invest at the time of initial allotment.
3. They can involve in the direct management of the enterprise.
Select the correct answer using the code given below.
a)
1 and 2 only
b)
2 only
c)
3 only
d)
2 and 3 only
|
|
Nilesh Patel answered |
- As per Section 15 (1) (a) of the SEBI FII Regulations, 1995, a Foreign Institutional Investor (FII) could invest in the securities in the primary and secondary markets including shares, debentures and warrants of companies unlisted, listed or to be listed on a recognized stock exchange in India. However, subsequent to SEBI (FPI) regulations, FIIs are allowed to invest only in listed or to-be listed entities and only through stock exchanges. Hence statement 1 is not correct.
- Foreign investors investing in initial allotment of shares (say IPOs or when a group of entities come together to float a company) are categorized as FDIs, this is a myth. In fact FIIs are very active in the over the counter (OTC) markets and in the Initial Public Offering market in India. Hence statement 2 is correct.
- Consolidated FDI Policy of Department of Industrial Policy and Promotion (DIPP) states that “foreign Direct Investment, as distinguished from portfolio investment (FII), has the connotation of establishing a ‘lasting interest’ in an enterprise that is resident in an economy other than that of the investor”. FII cannot involve in the direct management of the enterprise. Hence statement 3 is not correct.
Consider the following pairs: Index Organization
1. Global Talent Competitiveness Index : International Monetary Fund
2. Global Competitiveness Index : World Economic Forum
3. World Competitiveness Ranking : World BankWhich of the pairs given above is/are correctly matched?- a)1, 2 and 3
- b)1 and 2 only
- c)2 only
- d)1 and 3 only
Correct answer is option 'C'. Can you explain this answer?
Consider the following pairs: Index Organization
1. Global Talent Competitiveness Index : International Monetary Fund
2. Global Competitiveness Index : World Economic Forum
3. World Competitiveness Ranking : World Bank
1. Global Talent Competitiveness Index : International Monetary Fund
2. Global Competitiveness Index : World Economic Forum
3. World Competitiveness Ranking : World Bank
Which of the pairs given above is/are correctly matched?
a)
1, 2 and 3
b)
1 and 2 only
c)
2 only
d)
1 and 3 only
|
|
Nilesh Patel answered |
- Global Talent Competitiveness Index is an annual benchmarking report prepared by the INSEAD Business school that measures and ranks countries based on their ability to grow, attract and retain talent. Launched for the first time in 2014. Hence pair 1 is not correctly matched.
- World Competitiveness Ranking is prepared by IMD (Institute for Management and Development). The World Competitiveness Yearbook is an annual report published by the Swiss-based International Institute for Management Development (IMD) on the competitiveness of nations and has been published since 1989. Hence pair 3 is not correctly matched.
- Global Competitiveness Index is prepared by the World Economic Forum. The index is an annual yardstick for policy-makers to look beyond short-term and reactionary measures and to instead assess their progress against the full set of factors that determine productivity. Hence pair 2 is correctly matched.
Consider the following pairs: Applications and Platform Aim
1. mHariyali : To encourage Public engagement in planting trees and other such Green drives.
2. L2Pro India : To enable youth, innovators, entrepreneurs, and small and medium industries (SMEs) in understanding IPRs.
3. UMANG : To provide a single platform for all Indian Citizens to access pan India eGov services
4. ROSHNI App To promote the usage of LED bulbs among mobile application users.Which of the pairs given above are correctly matched?- a)1 and 2 only
- b)3 and 4 only
- c)1, 3 and 4 only
- d)1, 2 and 3 only
Correct answer is option 'D'. Can you explain this answer?
Consider the following pairs: Applications and Platform Aim
1. mHariyali : To encourage Public engagement in planting trees and other such Green drives.
2. L2Pro India : To enable youth, innovators, entrepreneurs, and small and medium industries (SMEs) in understanding IPRs.
3. UMANG : To provide a single platform for all Indian Citizens to access pan India eGov services
4. ROSHNI App To promote the usage of LED bulbs among mobile application users.
1. mHariyali : To encourage Public engagement in planting trees and other such Green drives.
2. L2Pro India : To enable youth, innovators, entrepreneurs, and small and medium industries (SMEs) in understanding IPRs.
3. UMANG : To provide a single platform for all Indian Citizens to access pan India eGov services
4. ROSHNI App To promote the usage of LED bulbs among mobile application users.
Which of the pairs given above are correctly matched?
a)
1 and 2 only
b)
3 and 4 only
c)
1, 3 and 4 only
d)
1, 2 and 3 only
|
|
Nilesh Patel answered |
- Secretary Department for Promotion of Industry and Internal Trade (DPIIT), launched the website and mobile application [Learn to Protect, Secure and Maximize Your Innovation] on Intellectual Property Rights (IPRs) today in New Delhi. The website and app have been developed by Cell for IPR Promotion and Management (CIPAM)-DPIIT in collaboration with Qualcomm and National Law University (NLU), Delhi.
- The L2Pro India IP e-learning platform will have 11 modules for three different levels: Basic, Intermediate, and Advanced. Each module comprises of e-text for understanding concepts, short animated videos of the concepts, links to additional resources on the subject, and quizzes for assessment and grading the learner’s knowledge and understanding of the subject. Learners will access the L2Pro IP elearning platform through their desktop, laptop, mobile browser, and mobile application (available on Android & iOS), and will be provided e-certificates by CIPAM-DPIIT and NLU Delhi, and Qualcomm on successful completion of the e-learning modules. Hence pair 2 is correctly matched.
- Minister of State(I/c) for Housing & Urban Affairs launching the mobile app, “mHariyali,”. The app is aimed to encourage Public engagement in planting trees and other such Green drives. People can now upload information/photos of any plantation done by them, which is linked to the app and will be displayed on the website www.epgc.gov.in. The App provides for automatic geotagging of plants. This app will also enable nodal officers to periodically monitor the plantation. The App is user friendly and works on any android mobile phone. Hence pair 1 is correctly matched.
- UMANG (Unified Mobile Application for New-age Governance) is developed by the Ministry of Electronics and Information Technology (MeitY) and the National e-Governance Division (NeGD) to drive Mobile Governance in India. It provides a single platform for all Indian Citizens to access pan India e-Gov services ranging from Central to Local Government bodies and other citizen-centric services. Hence pair 3 is correctly matched.
- In a bid to assist visually impaired people to easily determine the denomination of currency notes, the Indian Institute of Technology at Ropar in Punjab has developed an Android App “Roshni”, using image processing and analytics. Hence pair 4 is not correctly matched.
Consider the following statements about Peer to peer (P2P) lending. - It is a form of crowdfunding used to raise unsecured loans which are re-paid with interest.
- Only individuals can borrow money.
- RBI enabled P2P entities as Non-Banking Financial Company (NBFC).
- Minimum net worth requirement for these platforms is kept at Rs. 5 Cr.
Which of the above statements is/are incorrect?- a)1, 2
- b)1, 2, 3
- c)2, 4
- d)2, 3, 4
Correct answer is option 'C'. Can you explain this answer?
Consider the following statements about Peer to peer (P2P) lending.
- It is a form of crowdfunding used to raise unsecured loans which are re-paid with interest.
- Only individuals can borrow money.
- RBI enabled P2P entities as Non-Banking Financial Company (NBFC).
- Minimum net worth requirement for these platforms is kept at Rs. 5 Cr.
Which of the above statements is/are incorrect?
a)
1, 2
b)
1, 2, 3
c)
2, 4
d)
2, 3, 4
|
|
Palak Kumar answered |
Understanding P2P Lending Statements
Peer-to-peer (P2P) lending is a modern financial practice that allows individuals to borrow and lend money directly without traditional financial institutions. Let's analyze the statements provided:
Statement 1: It is a form of crowdfunding used to raise unsecured loans which are re-paid with interest.
- This statement is correct. P2P lending platforms facilitate unsecured loans between individuals, with interest rates agreed upon by both parties.
Statement 2: Only individuals can borrow money.
- This statement is incorrect. Both individuals and businesses can borrow through P2P lending platforms. Hence, it is not limited to individuals alone.
Statement 3: RBI enabled P2P entities as Non-Banking Financial Company (NBFC).
- This statement is correct. The Reserve Bank of India (RBI) has established a regulatory framework for P2P lending platforms, classifying them as NBFCs.
Statement 4: Minimum net worth requirement for these platforms is kept at Rs. 5 Cr.
- This statement is incorrect. The minimum net worth requirement set by the RBI for P2P lending platforms is actually Rs. 2 Cr, not Rs. 5 Cr.
Conclusion
Based on the analysis:
- Incorrect Statements: Statement 2 and Statement 4
- Therefore, the correct answer is option C (2, 4).
This breakdown clarifies why the identified statements are incorrect, highlighting the flexibility of P2P lending and the regulatory requirements set forth by the RBI.
Peer-to-peer (P2P) lending is a modern financial practice that allows individuals to borrow and lend money directly without traditional financial institutions. Let's analyze the statements provided:
Statement 1: It is a form of crowdfunding used to raise unsecured loans which are re-paid with interest.
- This statement is correct. P2P lending platforms facilitate unsecured loans between individuals, with interest rates agreed upon by both parties.
Statement 2: Only individuals can borrow money.
- This statement is incorrect. Both individuals and businesses can borrow through P2P lending platforms. Hence, it is not limited to individuals alone.
Statement 3: RBI enabled P2P entities as Non-Banking Financial Company (NBFC).
- This statement is correct. The Reserve Bank of India (RBI) has established a regulatory framework for P2P lending platforms, classifying them as NBFCs.
Statement 4: Minimum net worth requirement for these platforms is kept at Rs. 5 Cr.
- This statement is incorrect. The minimum net worth requirement set by the RBI for P2P lending platforms is actually Rs. 2 Cr, not Rs. 5 Cr.
Conclusion
Based on the analysis:
- Incorrect Statements: Statement 2 and Statement 4
- Therefore, the correct answer is option C (2, 4).
This breakdown clarifies why the identified statements are incorrect, highlighting the flexibility of P2P lending and the regulatory requirements set forth by the RBI.
Which of the following is/are the objectives of the Debt Management Strategy of Government of India?
1. To mobilise borrowings at low cost while keeping the risks at prudent levels.
2. To maintain a stable and sustainable debt structure so as to ensure financial stability.
3. Development of a well-functioning domestic bond market.Select the correct answer using the code given below.- a)1 only
- b)1 and 2 only
- c)2 and 3 only
- d)1, 2 and 3
Correct answer is option 'D'. Can you explain this answer?
Which of the following is/are the objectives of the Debt Management Strategy of Government of India?
1. To mobilise borrowings at low cost while keeping the risks at prudent levels.
2. To maintain a stable and sustainable debt structure so as to ensure financial stability.
3. Development of a well-functioning domestic bond market.
1. To mobilise borrowings at low cost while keeping the risks at prudent levels.
2. To maintain a stable and sustainable debt structure so as to ensure financial stability.
3. Development of a well-functioning domestic bond market.
Select the correct answer using the code given below.
a)
1 only
b)
1 and 2 only
c)
2 and 3 only
d)
1, 2 and 3
|
|
Muskaan Chopra answered |
Objectives of the Debt Management Strategy of Government of India
The Debt Management Strategy (DMS) of the Government of India aims to enhance the efficiency and sustainability of public debt management. The three key objectives outlined in the strategy are as follows:
1. Mobilise Borrowings at Low Cost
- The primary aim is to borrow funds at the lowest possible cost, ensuring that the government's financial burden is minimized.
- This involves actively managing the debt portfolio to avoid high-interest rates and unnecessary expenditures on servicing debt.
2. Maintain a Stable and Sustainable Debt Structure
- A stable debt structure is crucial for maintaining financial stability.
- The government aims to ensure that the debt-to-GDP ratio remains at sustainable levels, which helps in maintaining investor confidence and economic stability.
3. Development of a Well-Functioning Domestic Bond Market
- The DMS promotes the development of a robust domestic bond market, which is essential for providing the government with a reliable source of funding.
- A well-functioning bond market enhances liquidity, encourages foreign investment, and allows for better pricing of risks associated with government bonds.
Conclusion
Given these objectives, the correct answer is option 'D' (1, 2, and 3), as all three points accurately reflect the goals of the Debt Management Strategy of the Government of India. The strategy is designed to ensure that borrowing remains efficient and sustainable while fostering a strong domestic financial market.
The Debt Management Strategy (DMS) of the Government of India aims to enhance the efficiency and sustainability of public debt management. The three key objectives outlined in the strategy are as follows:
1. Mobilise Borrowings at Low Cost
- The primary aim is to borrow funds at the lowest possible cost, ensuring that the government's financial burden is minimized.
- This involves actively managing the debt portfolio to avoid high-interest rates and unnecessary expenditures on servicing debt.
2. Maintain a Stable and Sustainable Debt Structure
- A stable debt structure is crucial for maintaining financial stability.
- The government aims to ensure that the debt-to-GDP ratio remains at sustainable levels, which helps in maintaining investor confidence and economic stability.
3. Development of a Well-Functioning Domestic Bond Market
- The DMS promotes the development of a robust domestic bond market, which is essential for providing the government with a reliable source of funding.
- A well-functioning bond market enhances liquidity, encourages foreign investment, and allows for better pricing of risks associated with government bonds.
Conclusion
Given these objectives, the correct answer is option 'D' (1, 2, and 3), as all three points accurately reflect the goals of the Debt Management Strategy of the Government of India. The strategy is designed to ensure that borrowing remains efficient and sustainable while fostering a strong domestic financial market.
With reference to ‘Livestock and Fisheries Development in India’, which of the statements is/are correct?
1. Poultry possessed by households are covered under the Livestock Census of India.
2. Dairy exports are not covered under the Merchandise Exports from India Scheme.
3. A separate Ministry for Fisheries was created during the 7th Five-Year Plan (1985–1990) as part of the Neel Kranti Mission.Select the correct answer using the code given below.- a)1 and 2 only
- b)1 only
- c)2 only
- d)1, 2 and 3
Correct answer is option 'B'. Can you explain this answer?
With reference to ‘Livestock and Fisheries Development in India’, which of the statements is/are correct?
1. Poultry possessed by households are covered under the Livestock Census of India.
2. Dairy exports are not covered under the Merchandise Exports from India Scheme.
3. A separate Ministry for Fisheries was created during the 7th Five-Year Plan (1985–1990) as part of the Neel Kranti Mission.
1. Poultry possessed by households are covered under the Livestock Census of India.
2. Dairy exports are not covered under the Merchandise Exports from India Scheme.
3. A separate Ministry for Fisheries was created during the 7th Five-Year Plan (1985–1990) as part of the Neel Kranti Mission.
Select the correct answer using the code given below.
a)
1 and 2 only
b)
1 only
c)
2 only
d)
1, 2 and 3
|
|
Nilesh Patel answered |
- Livestock and fisheries play an important role in Indian economy. About 15 million people depend upon both livestock and fisheries each for their livelihood.
- Livestock:
- Department of Animal Husbandry & Dairying, Ministry of Fisheries, Animal Husbandry and Dairying has released the 20th Livestock Census report.
- It has been conducted periodically since 1919-20 which covers all domesticated animals and its headcounts both in rural and urban areas.
- The last livestock census was conducted in 2012.
- India has a total Livestock population is 535.78 million as per the 20th Livestock Census.
- Various species of animals (Cattle, Buffalo, Yak, Sheep, Goat, Pig, Donkey Camel, Dog, Rabbit, Elephant etc.), poultry birds possessed by the households, household enterprises/non-household enterprises and institutions are counted at their site. Hence statement 1 is correct. o State-wise Uttar Pradesh (UP) has recorded highest livestock population in 2019 followed by Rajasthan, MP, West Bengal, Bihar, Andhra Pradesh, Maharashtra, Telangana, Karnataka and Gujarat.
- Fisheries:
- To promote fisheries sector was envisaged under the Neel Kranti Mission/ Blue Revolution during 7th five year plan (1985-90).
- However a separate ministry for fisheries came into existence recently and the announcement for the same was made in interim budget of FY 2020. Hence statement 3 is not correct.
- About Merchandise Exports from India Scheme (MEIS):
(i) It is one of the two schemes introduced in Foreign Trade Policy of India 2015-20, as a part of Exports from India Scheme. (The other scheme is Service Exports from India Scheme).
(ii) It seeks to promote export of notified goods manufactured/ produced in India. MEIS is a major export promotion scheme implemented by the Ministry of Commerce and Industry.
(iii) The scheme provides incentive in the form of duty credit scrip to the exporter to compensate for his loss on payment of duties. The scrip can be transferred or used for payment of a number of duties/taxes like customs, excise etc.
(iv) Later in 2018, government extended the benefits under the scheme to dairy sector including skimmed milk, dairy spreads, fresh cheese etc.
Hence statement 2 is not correct
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