UPSC Essentials | Daily subject-wise quiz : Economy (Week 31)

1. It is defined as “the accurate determination and official recording of the proportionate content of precious metal in precious metal articles”.

2. The Bureau of Indian Standards (BIS) operates only a gold hallmarking scheme in India.

3. Jewellery for government-approved B2B domestic exhibitions has been exempted from mandatory Hallmarking.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

QUESTION 2

Consider the following:

1. Green Hydrogen Mission

2. Energy Transition

3. Green Credit Programme

4. Renewable Energy Evacuation

How many of the above are component elements of the Budget’s Green Growth push?

(a) Only one

(b) Only two

(c) Only three

(d) All four

QUESTION 3

Consider the following statements about 6th census on minor irrigation schemes:

1. Maharashtra possesses the largest number of Minor Irrigation (MI) schemes in the country.

2. Tamil Nadu is the leading State in dug-wells, surface flow and surface lift schemes.

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

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

QUESTION 4

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

1. They are not required to maintain a certain amount of cash reserve and liquid assets.

2. They are not required to obtain permission from the Reserve Bank of India to open branches.

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

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

QUESTION 5

Which of the following is/are the effect of the depreciation of the rupee?

1. Export of goods and services becomes competitive.

2. Import of goods and services becomes costlier.

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

ANSWERS TO THE MCQs

1. (b)

FYI:

— The government announced the phased implementation of mandatory hallmarking of gold jewellery.

— In the first phase, gold hallmarking will be available in only in 256 districts and jewellers having annual turnover above Rs 40 lakh will come under its purview.

— The Bureau of Indian Standard (BIS), which operates gold and silver hallmarking scheme in India.

— Hallmarking is defined as the “accurate determination and official recording of the proportionate content of precious metal in precious metal articles.” Hence, statement 1 is correct.

— However, a certain category of jewellery and items will be exempted from the mandatory requirement of hallmarking.

— Hallmarking in India is available for jewellery of only two metals—gold and silver. Hence, statement 2 is not correct.

— According to the Department of Consumer Affairs, “Export and re-import of jewellery as per Trade Policy of Government of India — Jewellery for international exhibitions, jewellery for government-approved B2B domestic exhibitions has been exempted from mandatory Hallmarking.” Hence, statement 3 is correct.

Therefore, option (b) is the correct answer.

2. (d)

FYI:

— The Finance Minister listed ‘Green Growth’ as one of the seven priorities of her Budget. India is moving towards the ‘panchamrit’ and net-zero carbon emission by 2070 to usher in green industrial and economic transition.

— Here are the component elements of the Budget’s Green Growth push:

— Green Hydrogen Mission: It will facilitate transition of the economy to low carbon intensity, reduce dependence on fossil fuel imports, and make the country assume technology and market leadership in this sunrise sector. India aims to reach a target of an annual production of 5 MMT of green hydrogen by 2030.

— Energy Transition: The Budget has provided Rs 35,000 crore for priority capital investments towards energy transition and net zero objectives, and energy security by Ministry of Petroleum & Natural Gas.

— Energy Storage Projects: Battery Energy Storage Systems with a capacity of 4,000 MWH will be supported with Viability Gap Funding to help steer the economy towards sustainable development. A detailed framework for Pumped Storage Projects will be developed as well.

— Renewable Energy Evacuation: The Inter-state transmission system for evacuation and grid integration of 13 GW renewable energy from Ladakh will be constructed with investment of Rs 20,700 crore including central support of ` 8,300 crore.

— Green Credit Programme: A Green Credit Programme will be notified under the Environment (Protection) Act to encourage behavioural change. This will encourage companies, individuals, and local governments to take environmentally sustainable and responsive actions, as well as help mobilise additional resources for such activities.

— PM-PRANAM: A new “PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth” will be launched to incentivize States and Union Territories to promote alternative fertilizers and balanced use of chemical fertilizers.

Therefore, option (d) is the correct answer.

3. (d)

FYI:

— The report on the 6th census of minor irrigation schemes was released by the Ministry of Jal Shakti, Department of Water Resources, River Development, and Ganga Rejuvenation.

— According to the report, the country has 23.14 million minor irrigation (MI) schemes, of which 21.93 million (94.8%) are Ground Water (GW) schemes and 1.21 million (5.2%) are Surface Water (SW) schemes.

— The state of Uttar Pradesh has the most MI schemes in the country, followed by Maharashtra, Madhya Pradesh, and Tamil Nadu. Hence, statement 1 is not correct.

— Leading States

(i) In GW schemes: Uttar Pradesh, Maharashtra, Madhya Pradesh, Tamil Nadu and Telangana.

(ii) In SW schemes: Maharashtra, Karnataka, Telangana, Odisha and Jharkhand.

— Dugwells, shallow tube wells, medium tube wells, and deep tube wells are examples of GW schemes, while surface flow and surface lift schemes are examples of SW schemes.

— Nationally, both GW and SW schemes have increased by 6.9% and 1.2%, respectively. Dug-wells are the most common type of MI scheme, followed by shallow tube-wells, medium tube-wells, and deep tube-wells.

— Maharashtra is the state with the most dug-wells, surface flow, and surface lift projects. Hence, statement 2 is not correct.

Therefore, option (d) is the correct answer.

(Other Source: pib.gov.in)

4. (a)

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 2 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 3 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 1 is not 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 (a) is the correct answer.

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

5. (c)

FYI:

— The rupee’s exchange rate vis-à-vis the dollar is essentially the number of rupees one needs to buy $1. Depreciation of the Rupee is defined as the rupee becoming less valuable compared to the United States dollar.

— When the rupee depreciates, importing goods and services becomes costlier. Hence, statement 2 is correct.

— Export of goods and services, especially in the United States, exports become more competitive because depreciation makes these products cheaper for foreign buyers. Hence, statement 1 is correct.

Therefore, option (c) is the correct answer.

Previous Daily Subject-Wise-Quiz

Daily subject-wise quiz — Polity and Governance (Week 31)

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 31)

Daily subject-wise quiz — Environment, Geography, Science and Technology (Week 31)

Daily subject-wise quiz — Economy (Week 30)

Daily subject-wise quiz – International Relations (Week 30)

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