UPSC Essentials | Daily subject-wise quiz | Economy (Week 36)

1. The framework calls for building interoperable solutions and formulating laws.

2. The framework is binding.

3. The member countries will leverage digital technologies for the “protection and promotion of culture and cultural heritage”.

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 India’s edible oil, consider the following statements:

1. India’s edible oil imports have decreased in rupee value terms during the last 10 years.

2. India’s edible oil production from domestically grown oilseeds is less than half the total production.

3. The two biggest contributors to India’s edible oil production are cottonseed and rice bran.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

QUESTION 3

Consider the following statements:

1. The CPI-based inflation data is compiled by the Department for Promotion of Industry and Internal Trade (or DPIIT).

2. The Wholesale price index (WPI) takes into account the change in prices of services.

3. The Consumer price index (CPI) is dominated by the prices of manufacturing goods.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

QUESTION 4

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

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

2. It is responsible for maintaining the inflation target.

3. It is a three-member committee.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

QUESTION 5

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

1. It offloads the excess stocks.

2. The scheme is not applicable to wheat.

3. It reduces the carrying cost of food grains.

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 New Delhi Leaders’ Declaration stated the G20 countries recognised that safe and trusted deployment of digital public infrastructure (DPI) can “enable service delivery and innovation”.

— G20 members welcomed the ‘Framework for Systems of Digital Public Infrastructure’. The framework calls for building interoperable solutions and formulating laws that can ensure that DPIs are safe, secure, trusted, and governed transparently. Hence, statement 1 is correct.

— Approaches to building DPI should incorporate privacy-enhancing and security technology into the core design of the services to ensure privacy, data, and customer protection.

— The framework is non-binding.Hence, statement 2 is not correct.

— The declaration also stated that member countries will “spare no effort in fostering safe and resilient digital ecosystems, as well as ensuring that every citizen on our planet is financially included.”

— They committed to promote responsible, sustainable and inclusive use of digital technology by farmers and an ecosystem of agri-tech start-ups and MSMEs.

— The countries also stated that they will use digital technologies to “protect and promote culture and cultural heritage.” Hence, statement 3 is correct.

Therefore, option (b) is the correct answer.

2. (a)

FYI:

— India’s edible oil imports have risen almost 1.5 times and more than doubled in rupee value terms during the last 10 years. Hence, statement 1 is not correct.

— India’s edible oil imports have increased from 11.6 mt (valued at Rs 60,750 crore) in 2013-14 to 16.5 mt (Rs 138,424 crore) in 2022-23.

— India’s edible oil production from domestically grown oilseeds and alternative sources such as cottonseed, rice bran, and maize/corn is expected to be around 10.3 million tonnes in 2022-23. Adding 16.5 million tonnes of imports increased total availability to 26.8 million tonnes, with domestic production accounting for only 38.6% of this total. Hence, statement 2 is correct.

— The two biggest contributors to India’s edible oil production now are mustard and soyabean followed by cottonseed and rice bran. Hence, statement 3 is not correct.

— The other oils — coconut, sesame, sunflower and safflower — have all registered declines in domestic output.

Therefore, option (a) is the correct answer.

3. (d)

FYI:

— Any inflation rate essentially tells us the rate at which prices have been rising in an economy.

— The government comes out with two indices — one for mapping inflation in the wholesale market and one for mapping inflation in the retail market. Inflation rates are also calculated for rural and urban markets for better policy analysis.

— The two most-often used inflation rates in the country are the year-on-year

(i) Wholesale price index (WPI) based inflation rate and

(ii) Consumer price index (CPI) based inflation rate

— Both WPI and CPI are price indices. These are two different baskets of goods and services. The government assigns different weights to different goods and services based on what is relevant for those two types of consumers.

— The CPI-based inflation data is compiled by the Ministry of Statistics and Programme Implementation (or MoSPI) and the WPI-based inflation data is put together by the Department for Promotion of Industry and Internal Trade (or DPIIT). Hence, statement 1 is not correct.

— The WPI is dominated by the prices of manufactured goods while the CPI is dominated by the prices of food articles. Hence, statement 3 is not correct.

— The WPI does not account for changes in the pricing of services such as haircuts or banking transactions, but the CPI does. Hence, statement 2 is not correct.

Therefore, option (d) is the correct answer.

4. (a)

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 not 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 (a) is the correct answer.

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

5. (b)

FYI:

— Karnataka demanded immediate resumption of the Open Market Sale scheme-Domestic (OMSS-D) for rice and wheat in states. Hence, statement 2 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.

(ii) To moderate the open market prices.

(iii) To offload the excess stocks. Hence, statement 1 is correct.

(iv) To reduce the carrying cost of food grains. Hence, statement 3 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 36)

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 36)

Daily subject-wise quiz — Environment, Geography, Science and Technology (Week 36)

Daily subject-wise quiz — Economy (Week 35)

Daily subject-wise quiz – International Relations (Week 35)

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