UPSC Essentials brings to you its initiative of subject-wise quizzes. These quizzes are designed to help you revise some of the most important topics from the static part of the syllabus. Attempt today’s subject quiz on Economy to check your progress. Come back tomorrow to solve the International Relations Quiz. 🚨 The Indian Express UPSC Essentials brings to you the August edition of its monthly magazine. Click Here to read. Share your views and suggestions in the comment box or at manas.srivastava@indianexpress.com🚨 QUESTION 1 With reference to the UDGAM portal, consider the following statements: 1. It facilitates the registered users to search unclaimed deposits/accounts across multiple banks. 2. All the banks are part of the UDGAM portal. 3. The portal has been developed by the RBI. Which of the statements given above are correct? (a) 1 and 2 only (b) 1, 2 and 3 (c) 2 and 3 only (d) 1 and 3 only Explanation — UDGAM (Unclaimed Deposits-Gateway to Access Information) is an internet site developed by the RBI. Hence, statement 3 is correct. — It allows registered users to seek unclaimed deposits/accounts from numerous banks in a consolidated manner. Hence, statement 1 is correct. — As of March 4, 2024, there are 30 banks that are part of the UDGAM platform, and they account for around 90% of unclaimed deposits (in value terms) in the RBI's Depositor Education and Awareness Fund (DEA). The remaining banks are currently being onboarded. Hence, statement 2 is not correct. — The UDGAM portal allows you to look for all unclaimed deposits/accounts held by the RBI's Depositor Education and Awareness (DEA) Fund. Therefore, option (d) is the correct answer. QUESTION 2 With reference to the NBFC-Infrastructure Finance Company (NBFC-IFC), consider the following statements: 1. It is a non-deposit taking NBFC. 2. It has a minimum of 25% of its total assets deployed towards infrastructure lending. 3. NBFC-IFCs cannot lend to/ invest in infrastructure investment trusts (InvITs) and other trust funds. How many of the statements given above are correct? (a) Only one (b) Only two (c) All three (d) None Explanation — An NBFC-IFC is a non-deposit-taking NBFC that has at least 75% of its total assets dedicated to infrastructure finance. Hence, statement 1 is correct and statement 2 is not correct. — NBFC-IFCs can lend to and invest in InvITs as long as they follow all applicable regulatory standards, including exposure norms. NBFC-IFCs can also lend to/invest in other trust funds as long as they meet the requirement of allocating at least 75% of their total assets to infrastructure loans and follow all other applicable laws. Hence, statement 3 is not correct. Therefore, option (a) is the correct answer. (Source: rbi.org.in) QUESTION 3 With reference to the Wholesale Price Index (WPI), consider the following statements: 1. It is dominated by the prices of manufactured goods. 2. The WPI-based inflation data is compiled by the Ministry of Statistics and Programme Implementation. 3. The WPI takes into account the change in prices of services. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1 only (d) 2 only Explanation — The wholesale price index (WPI) inflation rate was 3.36% in June, 2.61% in May, and -4.18% in July 2023. — The two most-often used inflation rates in the country are the year-on-year: (i) the wholesale price index (WPI) based inflation rate and (ii) the consumer price index (CPI) based inflation rate — The CPI-based inflation data is compiled by the Ministry of Statistics and Programme Implementation (or MoSPI) and the WPI-based inflation data is put together by the Department for Promotion of Industry and Internal Trade (or DPIIT). Hence, statement 2 is not correct. — The WPI is dominated by the prices of manufactured goods while the CPI is dominated by the prices of food articles. Hence, statement 1 is correct. — A key difference that must not be missed is that the WPI does not take into account the change in prices of services but CPI does. Hence, statement 3 is not correct. Therefore, option (c) is the correct answer. QUESTION 4 Consider the following pairs: Type of agroforestry Description Horti-pasture It integrates livestock, forage production, and trees on the same land management unit. Silvi-pasture It combines fruit trees with pasture or animals Horti-apiculture It combines Fruit trees with honeybees. How many of the pairs given above are correctly matched? (a) Only one pairs (b) Only two pairs (c) All three pairs (d) None of the above pairs Explanation — Agroforestry is defined as the cultivation and use of trees and shrubs with crops and livestock in agricultural systems. It aims at achieving a more ecologically diverse and socially productive output from the land than is possible through conventional agriculture. — Agroforestry seeks positive interactions between its components and is also known as ‘social forestry’. Type of agroforestry Description Horti-pasture It combines fruit trees with pasture or animals Silvi-pasture It integrates livestock, forage production, and trees on the same land management unit. Horti-apiculture It combines Fruit trees with honeybees. Therefore, option (a) is the correct answer. QUESTION 5 Consider the following statements about Sovereign Gold Bonds (SGBs): 1. These are debt securities issued by the Reserve Bank of India (RBI) on behalf of the government. 2. These bonds offer the flexibility of trading in the primary market. 3. It provides investors with the opportunity to accrue capital gains. How many of the statements given above are correct? (a) Only one (b) Only two (c) All three (d) None Explanation — There are many ways to invest in gold. You can buy physical gold in the form of jewellery, gold coins, or biscuits. Alternatively, you can also invest in intangible forms of gold, such as Sovereign Gold Bonds (SGB) and Gold ETFs. — Sovereign Gold Bonds (SGBs) are debt securities issued by the Reserve Bank of India (RBI) on behalf of the government, with each unit denoting a gram of gold. Hence, statement 1 is correct. — These bonds offer the flexibility of trading in the secondary market, providing investors with the opportunity to accrue capital gains. The interest on SGBs is fixed, ensuring a predictable income stream. Hence, statement 2 is not correct and statement 3 is correct. — The minimum investment in SGBs is one gram. Individual and Hindu Undivided Family (HUF) investors can invest up to a maximum of 4 kilograms in SGBs, while the maximum government-notified limit for trusts and entities is capped at 20 kilograms. Therefore, option (b) is the correct answer. 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