UPSC Essentials | Daily subject-wise quiz : Economy (Week 16)

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QUESTION 1

With reference to the capital expenditure, consider the following statements:

1. The benefit of expenditure extends up to one accounting period.

2. It is incurred on the day-to-day conduct of business.

3. It increases earning capacity of the business.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

QUESTION 2

With reference to the urban cooperative banks, consider the following statements:

1. The regulatory function complies with the provisions of the Banking Regulation Act, of 1949.

2. They are required to maintain a certain amount of cash reserve and liquid assets.

3. They are not required to obtain permission from the Reserve Bank of India for opening branches.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

QUESTION 3

With reference to the Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM), consider the following statements:

1. It aims to uplift the urban poor by enhancing sustainable livelihood opportunities through skill development.

2. World Trade Organisation (WTO) and DAY-NULM entered into a collaborative partnership aimed at empowering women to make well-informed career choices in the field of entrepreneurship.

Which of the statement(s) given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

QUESTION 4

With reference to the Fair and Remunerative Price (FRP), consider the following statements:

1. It is determined on the basis of recommendations of the Commission for Agricultural Costs and Prices.

2. It is applicable for the purchase of sugarcane from the farmers.

3. The decision to increase or decrease the FRP is taken by the Ministry of Agriculture.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

QUESTION 5

With reference to the Financial Stability Report, consider the following statements:

1. It is released by NITI Aayog.

2. It is a yearly publication with contributions from all the financial sector regulators.

Which of the statement(s) given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

ANSWERS TO MCQs

1. (a)

FYI:

— The Department of Expenditure under the Finance Ministry has approved capital investment proposals of Rs 56,415 crore for 16 states in the current financial year 2023-24.

— With an intent to tap into a higher multiplier effect of capital expenditure by frontloading the spending by states, the amount has been approved for 16 states including Arunachal Pradesh, Bihar, Chhattisgarh, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Mizoram, Odisha, Rajasthan, Sikkim, Tamil Nadu, Telangana, and West Bengal.

Therefore, option (a) is the correct answer.

(Other Source: ncert.nic.in)

2. (b)

FYI:

— The Reserve Bank of India (RBI) has imposed monetary penalties on two urban cooperative banks in Gujarat — Vadodara-based Shree Chhani Nagrik Sahakari Bank and Jamnagar People’s Cooperative Bank.

— A primary (urban) cooperative bank is required to obtain a licence from the Reserve Bank of India, under the provisions of Section 22 of the Banking Regulation Act, 1949.

— Under the provisions of Section 23 of the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies), primary (urban) cooperative banks are required to obtain permission from the Reserve Bank of India for opening branches. Hence, statement 3 is not correct.

— The regulatory functions of the Urban Banks Department relate to monitoring compliance with the provisions of the Banking Regulation Act, 1949. Hence, statement 1 is correct.

— As in the case of commercial banks, primary (urban) cooperative banks are also required to maintain a certain amount of cash reserve and liquid assets. Hence, statement 2 is correct.

— To ensure that the UCBs conduct their affairs in the interests of the depositors and also comply with the regulatory framework prescribed by the Reserve Bank of India, the department undertakes on-site inspections of these banks with frequency ranging from one to two years depending upon the financial condition/status of banks.

Therefore, option (b) is the correct answer.

(Other Source: http://www.rbi.org.in)

3. (a)

FYI:

— The United Nations Development Programme (UNDP) and the Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) entered into a collaborative partnership aimed at empowering women to make well-informed career choices in the field of entrepreneurship. Hence, statement 2 is not correct.

— The DAY-NULM aims to uplift the urban poor by enhancing sustainable livelihood opportunities through skill development. Hence, statement 1 is correct.

— The partnership will provide support for women looking to start and expand their own enterprises, particularly in sectors such as the care economy, digital economy, electric mobility, waste management, food packaging and more.

Therefore, option (a) is the correct answer.

(Source: pib.gov.in)

4. (b)

FYI:

— The government increased the Fair and Remunerative Price (FRP), the minimum price that mills have to pay to sugarcane growers, by Rs 10 to Rs 315 per quintal for the 2023-24 season starting October.

— The decision to increase the FRP of sugarcane was taken in the meeting of the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi. The FRP of sugarcane has been fixed at Rs 315 per quintal for the 2023-24 season. Hence, statement 3 is not correct.

— The FRP approved shall be applicable for the purchase of sugarcane from the farmers in the sugar season 2023-24 (starting w.e.f. October 1, 2023) by sugar mills. Hence, statement 2 is correct.

— The FRP has been determined on the basis of recommendations of the Commission for Agricultural Costs and Prices (CACP) and after consultation with State Governments and other stakeholders. Hence, statement 1 is correct.

Therefore, option (b) is the correct answer.

(Other Source: pib.gov.in)

5. (d)

FYI:

— The Financial Stability Report (FSR) is a half-yearly publication with contributions from all the financial sector regulators. The FSR reflects the collective assessment of the Sub Committee of the Financial Stability and Development Council on prevailing and emerging vulnerabilities in the Indian financial system. Hence, statement 2 is not correct.

— Reserve Bank of India releases the Financial Stability Report (FSR), which reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability and the resilience of the Indian financial system. Hence, statement 1 is not correct.

— As per the Reserve Bank of India’s latest financial stability report, banks’ gross non-performing assets have fallen to a 10-year low of 3.9 per cent in March 2023.

Therefore, option (d) is the correct answer.

(Other Source: http://www.rbi.org.in)

Previous Daily Subject-Wise-Quiz

Daily subject-wise quiz — Polity and Governance (Week 16)

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 16)

Daily subject-wise quiz — Environment, Geography, Science and Technology (Week 16)

Daily subject-wise quiz — Economy (Week 15)

Daily subject-wise quiz – International Relations (Week 15)

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