UPSC Essentials | Daily subject-wise quiz : Economy MCQs on PMKVY scheme, exchange traded funds and more (Week 149)

3. The ETFs can be bought or sold in fractions.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Relevance: It is important for understanding capital market instruments and differences between ETFs, mutual funds, and index funds — a recurring Prelims theme. The question helps in conceptual clarity on NAV, liquidity, expense ratios, and exchange-based trading, which are frequently tested in elimination-based questions.

Explanation

— In a first for India, investments in gold Exchange Traded Funds (ETFs) in January were greater than inflows into equity-oriented mutual funds, showed data from the Association of Mutual Funds in India (AMFI) released.

What are ETFs

— Exchange Traded Fund (ETF) are funds that track indices such as Sensex, Nifty, etc. When you buy units of an ETF, you actually buy units of a portfolio that tracks the performance of the index. ETFs just reflect the performance of the index they track.

— Unlike regular mutual funds, ETFs trade like a common stock on the stock exchange and the price of an ETF changes as per the trading in the market takes place. The trading value of an ETF depends on the net asset value of the underlying assets that it represents. Hence, statement 1 is correct.

— ETFs, generally, have higher daily liquidity and lower fees than mutual fund schemes. Hence, statement 2 is not correct.

— The exchange-traded funds (ETFs) cannot be bought or sold in fractions unlike mutual fund units. Hence, statement 3 is not correct.

Therefore, option (a) is the correct answer.

(Other Source: investor.sebi.gov.in)

QUESTION 2

With reference to the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025, consider the following statements:

1. The law enables private players to enter the operations side of this critical sector.

2. The act does not allow private entities in areas such as fuel management.

3. It seeks to accelerate India’s goal of 100 GW nuclear capacity by 2030.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Relevance: This question is important for understanding recent reforms in the nuclear energy sector and changes to the Atomic Energy framework. It is also relevant for questions on privatisation, strategic sectors, and India’s clean energy transition targets.

Explanation

— The Department of Atomic Energy has said that state-owned NTPC Ltd and Chicago-based Clean Core Thorium Energy (CCTE) are exploring the “development and deployment of a thorium-based fuel” for existing nuclear stations in India, subject to regulatory clearances.

— In December, the Centre had passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025, marking a major shift in how India’s tightly-controlled nuclear power sector will be governed in the coming years.

— For the first time, the law enables private players to enter the operations side of this critical sector. This includes a possibility of foreign participation in the future. It also envisages a role for private entities in areas such as fuel management, which had remained under tight public-sector control for decades. The advantage with the thorium fuel produced by the Chicago-based company is that it can be shipped to India and directly loaded on to PHWRs. Hence, statement 1 is correct and statement 2 is not correct.

— It seeks to accelerate India’s goal of 100 GW nuclear capacity by 2047. Hence, statement 3 is not correct.

Therefore, option (a) is the correct answer.

QUESTION 3

The ‘NUDGE campaign’ is a:

(a) Behavioural economics-based initiative to encourage taxpayers to voluntarily improve compliance and timely filing.

(b) Government programme aimed at promoting digital payments and reducing cash-based transactions in the economy.

(c) Campaign to encourage higher household savings through formal financial instruments such as mutual funds and insurance.

(d) Initiative to promote responsible borrowing and curb over-indebtedness among retail loan customers.

Relevance: This question helps in linking economic administration with soft policy tools instead of coercive enforcement, a growing trend in economic policymaking.

Explanation

— Around 60 per cent of the 1.11 crore people who responded to the Income Tax department’s NUDGE campaign to encourage better tax compliance, by revising or updating their returns, were non-filers — a clear sign that the initiative, which involved targeted e-mails, has paid off.

— The ‘NUDGE campaign’ is a behavioural economics-based initiative to encourage taxpayers to voluntarily improve compliance and timely filing.

— First implemented in late 2024, NUDGE – Non-intrusive Usage of Data to Guide and Encourage — is a tech-driven campaign that uses data analytics, behavioural insights and digital messaging to improve tax compliance.

— The key difference between NUDGE, including the NUDGE 2.0 avatar of late 2025 that focussed on foreign assets and income, and previous efforts to boost compliance is the fact that it is preventive in nature and not post-facto enforcement. The latter would require scrutinising crores of tax returns — an impossible task for the Government.

Therefore, option (a) is the correct answer.

QUESTION 4

Which of the statements about the AgriStack is/are correct?

1. It is a part of the Centre’s Digital Public Infrastructure (DPI) Mission in the agriculture sector.

2. The foundational registries of the AgriStack do not include Geo-referenced village maps.

3. Under Agristack, each farmer is issued a unique digital identity (similar to Aadhaar), with details of their landholding and crops grown per area.

Select the correct answer using the codes given below:

(a) 1 and 2 only

(b) 1 only

(c) 2 and 3 only

(d) 1 and 3 only

Relevance: It is important for Prelims under Digital India, governance reforms, and agriculture sector initiatives, especially questions on Digital Public Infrastructure (DPI). The question helps in understanding issues of data governance, privacy, federal coordination, and land record digitisation, which are increasingly asked in both Prelims and Mains.

Explanation

— In her Budget Speech on February 1, Finance Minister Nirmala Sitharaman announced the launch of Bharat-VISTAAR (Virtually Integrated System to Access Agricultural Resources), a multilingual AI tool to integrate the AgriStack portals and the ICAR package on agricultural practices with AI systems.

— AgriStack is a Digital Public Infrastructure (DPI) for the farm sector, an initiative under the Digital Agriculture Mission (DAM), and was approved by the Union Cabinet in September, 2024. Hence, statement 1 is correct.

— The AgriStack comprises three foundational registries or databases in the agriculture sector: the Farmer Registry, Geo-referenced village maps and the Crop Sown Registry, all created and maintained by the State Governments or Union Territories. Hence, statement 2 is not correct.

— Each farmer is issued a unique digital identity (similar to Aadhaar), with details of their landholding and crops grown per area. Hence, statement 3 is correct.

Therefore, option (d) is the correct answer.

QUESTION 5

With reference to the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), consider the following statements:

1. The scheme provides guaranteed government jobs to all certified candidates.

2. It is implemented by the Ministry of Labour and Employment.

3. The scheme provides long-term degree programmes equivalent to university education.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Relevance: The question helps in understanding India’s strategy for demographic dividend, skill gap reduction, and labour market reforms, which are recurring themes in UPSC. It is also relevant to GS-2 (Governance & Welfare Schemes) and GS-3 (Employment & Inclusive Growth) in Mains.

Explanation

— The Government says that about 27.08 lakh candidates across 38 sectors have been trained in skills, ranging from beauty and wellness, food processing and handicrafts to aerospace and aviation, under the flagship Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0.

— Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is the flagship outcome-based skill training scheme of the Ministry of Skill Development & Entrepreneurship (MSDE). The objective of this skill certification and reward scheme is to enable and mobilize a large number of Indian youth to take up outcome based skill training and become employable and earn their livelihood. Hence, statement 2 is not correct.

— PMKVY does not guarantee employment, especially not government jobs. The scheme focuses on skill training, certification, and improving employability. Hence, statement 1 is not correct.

— PMKVY provides short-term skill training and certification, not academic degree programmes. Hence, statement 3 is not correct.

Therefore, option (d) is the correct answer.

(Other Source: http://www.nielit.gov.in)

Previous Daily Subject-Wise-Quiz

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 144)

Daily subject-wise quiz — Polity and Governance (Week 149)

Daily subject-wise quiz —  Science and Technology (Week 149)

Daily subject-wise quiz — Economy (Week 148)

Daily subject-wise quiz — Environment and Geography (Week 148)

Daily subject-wise quiz – International Relations (Week 148)

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