UPSC Essentials : Daily subject-wise quiz : Economy (Week 24)

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 2

With reference to the Gold Exchange-Traded Funds (ETF), consider the following statements:

1. These are units representing physical gold present only in paper form.

2. One Gold ETF unit is equal to 10 grams of gold.

3. RBI regulates the gold exchange-traded funds.

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 Monetary Policy Committee (MPC), consider the following statements:

1. The meeting of the committee is held once every three months.

2. It is responsible for maintaining the inflation target.

3. Section 45ZB of the amended RBI Act, 1934 provides for an empowered six-member Monetary Policy Committee (MPC).

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

QUESTION 4

Consider the following schemes:

1. PM Kisan Samman Nidhi

2. PM Fasal Bima Yojana

3. Mahatma Gandhi National Rural Employment Guarantee Act

4. PM Awas Yojana

How many of the above schemes are covered under direct benefit transfer to provide financial assistance?

(a) Only one

(b) Only two

(c) Only three

(d) None

QUESTION 5

Consider the following statements about the Open Market Sale Scheme (OMSS):

1. It enhances the supply of food grains during the lean season and deficit regions.

2. It reduces the carrying cost of food grains.

3. This scheme is not applicable to wheat and rice.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

ANSWERS TO THE MCQs

1. (b)

FYI:

— The “State of Working India 2023” revealed the overall unemployment rate reduced to 6.6 per cent in 2021-22 from 8.7 per cent in 2017-18. Hence, statement 1 is not correct.

— The report indicates an increase in women’s workforce participation, it was accompanied by a decline in self-employment earnings, which in 2022 were only 85 per cent of what they were in the first quarter of 2019 reflecting the impact of distress induced by the pandemic. Hence, statement 2 is correct.

— There has been an upward trend in intergenerational mobility, but the trend has been weaker for workers belonging to Scheduled Castes and Scheduled Tribes categories as compared to workers belonging to general castes.

— According to the report, 42.3 percent of graduates under the age of 25 are unemployed, while 21.4 percent of those who have finished upper secondary school in the same age group are unemployed. Notably, with lower educational qualifications, the rate of unemployment also decreased.

Therefore, option (b) is the correct answer.

2. (d)

FYI:

— Gold exchange-traded funds (ETFs) attracted Rs 1,028 crore in August, making it the highest inflow in 16 months, amid continued hikes in interest rates in the US, which led to a slowing down in growth rate there.

— Gold ETFs are units representing physical gold which may be in paper or dematerialised form. Hence, statement 1 is not correct.

— One Gold ETF unit is equal to 1 gram of gold and is backed by physical gold of very high purity. They combine the flexibility of stock investments and the simplicity of gold investments. Hence, statement 2 is not correct.

— Gold ETF schemes can only invest primarily in gold or gold-related products that have been approved by SEBI. Hence, statement 3 is not correct.

Therefore, option (d) is the correct answer.

3. (b)

FYI:

— The RBI adopted an inflation-targeting monetary policy regime in 2016 that an MPC meeting has been called under the provisions of Section 45ZN of the Act.

— Section 45ZB of the amended RBI Act, 1934 provides for an empowered six-member monetary policy committee (MPC). Hence, statement 3 is correct.

— Currently, the MPC meets six times in a financial year, which is every two months. Hence, statement 1 is not correct.

— Regulation 7 of the RBI MPC and Monetary Policy Process Regulations, 2016 states that a separate meeting is required to be scheduled as part of the normal policy process to discuss and draft the report to be sent to the government.

— The MPC is responsible for maintaining the inflation target. Hence, statement 2 is correct.

Therefore, option (b) is the correct answer.

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

4. (d)

FYI:

— The International Monetary Fund (IMF) lauded India’s Direct Benefit Transfer (DBT) Scheme as a “logistical marvel” that has reached hundreds of millions of people and specifically benefitted women, the elderly and farmers.

— David Malpass, President of the World Bank Group, had also urged other nations to adopt India’s move of targeted cash transfer instead of broad subsidies noting that “India managed to provide food or cash support to a remarkable 85 per cent of rural households and 69 per cent of urban households”.

— In rural India, DBT has enabled the government to deliver financial support to farmers more effectively and openly, whether for fertiliser or any of the other programmes such as the PM Kisan Samman Nidhi, PM Fasal Bima Yojana, and PM Krishi Sinchayi Yojana.

— The PM Awas Yojana and LPG Pahal schemes in urban India successfully employ DBT to deliver cash to qualified participants. The DBT architecture is used to offer social security through several scholarship programmes and the National Social Assistance Programme. DBT in rehabilitation programmes such as the Self Employment Scheme for Rehabilitation of Manual Scavengers provides new doors to social mobility for people from all walks of life.

Therefore, option (d) is the correct answer.

5. (b)

FYI:

— Karnataka demanded immediate resumption of the Open Market Sale scheme-Domestic (OMSS-D) for rice and wheat in states. Hence, statement 3 is not correct.

— The Centre had discontinued the scheme on June 13 for all states except North Eastern states, hilly states, and those facing law and order situations and natural calamities.

— Open Market Sale Scheme has following objectives:

(i) To enhance the supply of food grains during the lean season and deficit regions. Hence, statement 1 is correct.

(ii) To moderate the open market prices.

(iii) To offload the excess stocks.

(iv) To reduce the carrying cost of food grains. Hence, statement 2 is correct.

Therefore, option (b) is the correct answer.

(Other Source: dfpd.gov.in)

Previous Daily Subject-Wise-Quiz

Daily subject-wise quiz — Polity and Governance (Week 24)

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 24)

Daily subject-wise quiz — Environment, Geography, Science and Technology (Week 24)

Daily subject-wise quiz — Economy (Week 23)

Daily subject-wise quiz – International Relations (Week 23)

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