UPSC Essentials | Daily subject-wise quiz : Economy MCQs on Cooperative Banks, Make in India initiative and more (Week 136)

QUESTION 1

Which of the following statements is/are correct about the Cooperative Banks?

1. The RBI can impose restrictions on the cooperative banks due to concerns over their financial stability.

2. These banks, till 1996, were allowed to lend money for non-agricultural purposes.

Select the correct answer using the codes given below:

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Explanation

— The Reserve Bank of India’s Urban Banks Department is responsible for regulating and monitoring main (urban) cooperative banks, often known as Urban Cooperative Banks (UCBs).

— Under Section 23 of the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies), primary (urban) cooperative banks must acquire authorisation from the Reserve Bank of India before creating branches.

— The Urban Banks Department’s regulatory tasks include ensuring that urban cooperative banks comply with the terms of the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies). These provisions include :

(i) Minimum Share Capital

(ii) Maintenance of CRR and SLR

The RBI can impose limitations on the bank due to worries about its financial stability. These limits include forbidding the bank from making new loans, making investments, borrowing funds, or permitting withdrawals for six months. Hence, statement 1 is correct.

The RBI can supersede the bank’s board of directors for a 12-month period due to “poor governance standards.”

— Urban Co-operative Banks (UCBs), while not technically defined, are primary cooperative banks located in urban and semi-urban areas. Until 1996, these banks were only allowed to lend money for non-agricultural purposes. Hence, statement 2 is correct.

Therefore, option (c) is the correct answer.

QUESTION 2

The term “Quick commerce” refers to:

(a) Commercial activity done via social media platforms.

(b) Shopping directly via smart TVs or voice assistants like Alexa or Google Assistant.

(c) Transactions in virtual reality environments.

(d) Rapid delivery of goods ordered online.

Explanation

— Quick commerce (q-commerce) refers to the rapid delivery of goods ordered online, usually between 10 minutes and 30 minutes.

— For q-commerce to work effectively, firms must invest in opening and efficiently stocking so-called “dark stores”, which are stocked like standard retail stores but are used only as storage and are not open to the public. Dark stores are critical working infrastructure that make expedited fulfillment feasible in the area of operation of the q-commerce firm.

— The three largest q-commerce companies in India — Blinkit, Zepto, and Swiggy Instamart — together receive approximately 4.3 million orders every day.

Therefore, option (d) is the correct answer.

QUESTION 3

Which of the following have been identified as the areas of focus under the Make in India initiative?

1. Enhancing ease and cost of doing business

2. Manufacturing quality products

3. Availability of technology

Select the correct answer using the codes given below:

(a) 1 and 2 only

(b) 1, 2 and 3

(c) 2 and 3

(d) 1 only

Explanation

— ‘Make in India’ was launched in 2014 with the sole purpose of increasing indigenous production. According to their website, the purpose is to “facilitate investment, foster innovation, enhance skill development, protect intellectual property, and build best-in-class manufacturing infrastructure”.

— These goals will be fulfilled by “entering new processes, building new infrastructure, entering new manufacturing sectors, and providing a new ‘mindset’ of public-private partnership” .

— The mission has identified the following areas of focus:

(i) Enhancing ease and cost of doing business;

(ii) Building a future-ready workforce for in-demand jobs;

(iii) A vibrant and dynamic MSME sector;

(iv) Ensuring availability of technology; and

(v) Manufacturing quality products.

Therefore, option (b) is the correct answer.

QUESTION 4

With reference to the Indian economy, “Collateral Borrowing and Lending Obligations” are the instruments of: (UPSC 2024)

(a) Money market

(b) Bond market

(c) Forex market

(d) Stock market

Explanation

— The G-Secs market primarily caters to long-term investors, whereas the money market offers short-term investment opportunities.

— Money market transactions are typically used to fund transactions in other markets, including the G-Secs market, and to address short-term liquidity shortages.

— Money markets have a maximum tenor of one year. Within one year, depending on the tenors, the money market is divided into:

i. Overnight market – The tenor of transactions is one working day.

ii. Notice money market – The tenor of the transactions is from 2 days to 14 days.

iii. Term money market – The tenor of the transactions is from 15 days to one year.

— Money market instruments include call money, repos, T- Bills, Cash Management Bills, Commercial Paper, Certificate of Deposit and Collateralized Borrowing and Lending Obligations (CBLO).

Therefore, option (a) is the correct answer.

(Source: rbi.gov.in)

QUESTION 5

Consider the following statements regarding the Unified Portal for Agricultural Statistics (UPAg):

1. It is a platform designed exclusively for generating crop production estimates.

2. It integrates data from multiple sources, including trade, procurement, and stock statistics.

3. The portal provides near real-time agricultural information.

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, 2, and 3

Explanation

— “Unified Portal for Agricultural Statistics (UPAg) is an advanced agricultural data management platform designed to generate crop estimates and integrate with other systems generating Agriculture Statistics such as Price, Trade, Procurement, Stock etc. It serves as a centralized hub for near real time information on crop production, market trends, pricing, and other vital agricultural data.” Hence, statement 3 is correct.

— “UPAg is not exclusively for crop production estimates; it also integrates various agricultural statistics such as price, trade, procurement, and stock.” Hence, statement 1 is not correct and statement 2 is correct.

Therefore, option (b) is the correct answer.

(Source: upag.gov.in)

Previous Daily Subject-Wise-Quiz

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 131)

Daily subject-wise quiz — Polity and Governance (Week 136)

Daily subject-wise quiz —  Science and Technology (Week 136)

Daily subject-wise quiz — Economy (Week 135)

Daily subject-wise quiz — Environment and Geography (Week 135)

Daily subject-wise quiz – International Relations (Week 135)

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