UPSC Essentials: Daily subject-wise quiz — Economy (Week 5)

QUESTION 1

With reference to the Interest Subvention Scheme (ISS), consider the following statements:

1. The Government of India has reduced the interest subvention from 2 per cent to 1.5 per cent, availed on short-term loans for FY 2022-23 and 2023-24.

2. It does not apply to animal husbandry and fisheries.

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

QUESTION 2

Which of the following statements is not correct about the Digital Banking Units (DBU)?

(a) These will be established by the Scheduled Commercial Banks.

(b) The services include fixed deposits and recurring deposit accounts for customers.

(c) It is a specialised fixed point business unit housing a certain minimum digital infrastructure for delivering digital banking products and services.

(d) It includes banking activities through cheques, pay-in slips, and demand drafts.

QUESTION 3

With reference to the Atal Pension Yojna, consider the following statements:

1. The scheme was introduced in the year 2016 to provide social security to workers mainly in the unorganised sector.

2. It is applicable to all citizens of India aged between 18-40 years.

3. Income taxpayers can enroll in the government’s social security scheme Atal Pension Yojana.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

QUESTION 4

It is an important natural fiber crop in India. The raw part of the crop was originally considered a raw material source for packaging industries. But it has now emerged as a versatile raw material for diverse applications, such as textile, paper, building, automotive industries, decorative and furnishing materials, etc.

The above lines refer to which of the following crop?

(a) Cotton

(b) Flax

(c) Coir

(d) Jute

QUESTION 5

The term “Tokenisation” was recently in the news. It is associated with:

(a) Reserve Bank of India

(b) International Monetary Fund

(c) Security and Exchange Board of India

(d) National Rural Bank of Agriculture

QUESTION 6

Consider the following statements about Periodic Labour Force Survey (PLFS):

1. It is carried out by National Statistical Office under Ministry of Statistics of Programme and Implementation (MoSPI).

2. Labour data for urban areas is published annually, while that for rural areas is released every quarter.

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

QUESTION 7

Consider the following statements about Agriculture Accelerator Fund:

1. It aims at bringing innovative and affordable solutions for challenges faced by farmers.

2. Financial support is provided to entrepreneurs in the field of agriculture and allied sector.

3. Modern technologies to transform agricultural practices.

Select the correct answer using the codes given below:

(a) 1 and 2 only

(b) 3 only

(c) 2 and 3 only

(d) 1, 2 and 3

QUESTION 8

Consider the following statements about National Green Hydrogen Mission:

1. It will promote the manufacturing of low-cost green hydrogen in a bid to cut emissions.

2. Green Hydrogen is produced via coal or lignite gasification.

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 MCQs

1. (a)

FYI:

— Interest subvention scheme was announced by the Government of India during the budget of 2006-07. The scheme came into force with effect from Kharif 2006-07.

— The amount of subvention was to be calculated on the amount of crop loan from the date of disbursement up to the actual date of repayment of the crop loan by the farmer or up to the due date of the loan fixed by the banks, whichever is earlier, subject to a maximum period of one year.

— The Government of India has reduced the interest subvention from 2 per cent to 1.5 per cent, availed on short-term loans for FY 2022-23 and 2023-24. Hence, statement 1 is correct.

— The Government of India has extended the Interest Subvention Scheme on KCC issued to crop loan farmers to the KCC issued to Animal Husbandry and Fisheries farmers from 2018-19. Hence, statement 2 is not correct.

— Interest subvention of 2 per cent to banks and 3 per cent to farmers towards Prompt Repayment incentive is extended on short-term loans up to Rs 2 lakh to animal husbandry and fisheries.

Therefore, option (a) is the correct answer.

Source: (http://www.nabard.org)

2. (d)

FYI:

— The Finance Minister of India announced to set up 75 digital banking units in 75 districts this year. This is to take forward the government’s agenda of digital financial inclusion.

— Commercial banks (other than regional rural banks, payment banks, and local area banks) with past digital banking experience are permitted to open DBUs in tier 1 to tier 6 centres.

— The services include savings bank accounts under various schemes, current accounts, fixed deposits and recurring deposit accounts, digital kit for customers, mobile banking, Internet banking, debit cards, credit cards, and mass transit system cards, digital kit for merchants, UPI QR code, BHIM Aadhaar and point of sale (PoS).

— Other services include making applications for and onboarding customers for identified retail, MSME, or schematic loans.

— Digital banking involves taking all traditional banking activity online — doing away with paperwork like cheques, pay-in slips, demand drafts, etc.

Therefore, option (d) is the correct answer.

3. (b)

FYI:

— Atal Pension Yojna (APY) was launched by the Union Government in 2015 to address the longevity risks among workers in the unorganised sector and to encourage workers in the unorganised sector to voluntarily save for their retirement. Hence, statement 1 is not correct.

— APY is applicable to all citizens of India aged between 18-40 years. Hence, statement 2 is correct.

— Aadhaar will be the primary KYC. Aadhar and mobile numbers are recommended to be obtained from subscribers for the ease of operation of the scheme.

— Income taxpayers will not be allowed to enrol in the government’s social security scheme Atal Pension Yojana (APY) from October 1, 2022,  according to a notification. Hence, statement 3 is not correct.

Benefits of the Scheme

— There is a guaranteed minimum monthly pension for subscribers between Rs. 1000 and Rs. 5000 per month. The benefit of a minimum pension would be guaranteed by the Government.

— The Government will also co-contribute 50% of the subscriber’s contribution or Rs. 1000 per annum, whichever is lower.

— The Government co-contribution is available for those who are not covered by any Statutory Social Security Schemes and is not income tax payer.

— The benefit of five years of government Co-contribution under APY would not exceed 5 years for all subscribers including migrated Swavalamban beneficiaries.

Therefore, option (b) is the correct answer.

Other Source: (npscra.nsdl.co.in)

4. (d)

FYI:

— The scarcity of rain in the jute-producing districts in the southern part of West Bengal has slowed down the supply of golden fibre to mills. The retting process of the plants is being held back due to a lack of rainfall in the southern districts of the state.

— Jute is an important natural fibre crop in India next to cotton. In trade and industry, jute and mesta crop together known as raw jute as their uses are almost the same.

— Raw jute plays an important role in the country’s economy. Raw jute was originally considered a source of raw material for packaging industries only. But it has now emerged as a versatile raw material for diverse applications, such as textile industries, paper industries, building, and automotive industries, uses as a soil saver, uses as decorative and furnishing materials, etc.

— Raw jute is a bio-degradable and annually renewable source, it is considered an environment-friendly crop and it helps in the maintenance of the environment and ecological balance.

— Further attraction of Jute lies in its easy availability, and inexhaustible quantity at a comparatively cheaper rate. Moreover, it can easily be blended with other natural and manmade fibres.

Therefore, option (d) is the correct answer.

Other Source: (farmer.gov.in)

5. (a)

FYI:

— The Reserve Bank of India (RBI) has implemented the card-on-file (CoF) tokenisation norms from October 1, 2022, which aim at improved the safety and security of card transactions.

— Now, for any purchases done online or through mobile apps, merchants, payment aggregators and payment gateways will not be able to save crucial customer credit and debit card details such as three-digit CVV and expiry date.

— Tokenisation refers to the replacement of actual card details with a unique alternate code called the ‘token’, which shall be unique for a combination of cards, token requester, (i.e. the entity which accepts requests from the customer for tokenisation of a card and passes it on to the card network to issue a corresponding token) and the device.

Working of Tokenisation

— A debit or credit card holder can get the card tokenised by initiating a request on the app provided by the token requester.

— The token requester will forward the request to the card network which, with the consent of the card issuer, will issue a token corresponding to the combination of the card, the token requester, and the device.

— In case of an online transaction, instead of card details, a unique token will be stored on the server.

— The merchant or transaction platform sends out a message to Visa or Mastercard or a payment gateway, which asks for a token against that card number and will then pass it on to the bank for allowing the transaction.

— The customer will not be charged for availing of the tokenisation service.

Services of Tokenisation

— Tokenisation can be performed only by the authorised card network, and recovery of the original Primary Account Number (PAN) should be feasible only for the authorised card network.

— Adequate safeguards have to be put in place to ensure that PAN cannot be found out from the token and vice versa, by anyone except the card network.

Therefore, option (a) is the correct answer.

6. (a)

FYI:

— The annual report of the Periodic Labour Force Survey for July 2020 to June 2021 showed that the unemployment rate, as per usual status (reference period of last 365 days preceding the survey), eased to 4.2 per cent from 4.8 per cent in 2019-20.

— The unemployment rate of 4.2 per cent in 2020-21, the lowest since the first PLFS showed an unemployment rate of 6.1 per cent in 2017-18.

— According to the report, the labour force participation rate (LFPR), or those working or seeking or available for work in the labour force, was the highest in four years at 39.3 per cent in 2020-21, as was the worker population ratio (WPR) at 36.3 per cent. WPR is defined as the percentage of employed persons in the population.

— The National Statistical Office (NSO) under the Ministry of Statistics of Programme and Implementation (MoSPI) conducts the PLFS for rural and urban areas. Hence, statement 1 is correct.

— Labour data for rural areas is published annually, while that for urban areas is released every quarter. There is a gap of at least a year in the release of the annual PLFS report. Hence, statement 2 is not correct.

Therefore, option (a) is the correct answer.

7. (d)

FYI:

— During the Budget Speech of 2023-2024, the Finance Minister of India said “An agriculture accelerator fund will be set up to encourage agri-startups by young entrepreneurs in rural areas. Hence, statement 2 is correct.

— The fund will aim at bringing innovative and affordable solutions for challenges faced by farmers. Hence, statement 1 is correct.

— The Government of India, Department of Agriculture & Farmers’ Welfare (DA&FW) is committed to the welfare of the farmers.  It includes modernizing the agricultural systems by incorporating new and innovative solutions brought by agri-entrepreneurs. Hence, statement 3 is correct.

— Accordingly, DA&FW is implementing the “Innovation and Agri-Entrepreneurship Development” programme under Rashtriya Krishi Vikas Yojana (RKVY) from 2018-19 with an objective of promoting innovation and agri-entrepreneurship by providing financial support and nurturing an incubation ecosystem in the country.

Therefore, option (d) is the correct answer.

Other Source: (pib.gov.in)

8. (a)

FYI:

— The National Green Hydrogen Mission (NHGM) was approved by the Union Cabinet on 4 January 2022, with the intended objectives of – 

(1) Making India a leading producer and supplier of Green Hydrogen in the world

(2) Creation of export opportunities for Green Hydrogen and its derivatives

(3) Reduction in dependence on imported fossil fuels and feedstock

(4) Development of indigenous manufacturing capabilities

(5) Attracting investment and business opportunities for the industry

(6) Creating opportunities for employment and economic development

(7) Supporting Research and Development projects

— The plan is to provide incentives to promote the manufacturing of low-cost green hydrogen in a bid to cut emissions. Green hydrogen will play a huge role in countering climate change. Hence, statement 1 is correct.

— The NGHM is a key component in India’s attempt at energy transition from fossil fuels to renewables, with the government announcing its new nationally determined contributions after COP 26 in Glasgow.

— The government had committed to reducing the emissions intensity of GDP by 45 per cent by 2030 (from its 2005 level) and achieving about 50 per cent cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.

Types of Hydrogen Based on Extraction Methods

— Grey Hydrogen: It is produced via coal or lignite gasification (black or brown), or via a process called steam methane reformation (SMR) of natural gas or methane (grey). These tend to be mostly carbon-intensive processes. Hence, statement 2 is not correct.

— Blue Hydrogen: It is produced via natural gas or coal gasification combined with carbon capture storage (CCS) or carbon capture use (CCU) technologies to reduce carbon emissions.

— Green Hydrogen: It is produced using electrolysis of water with electricity generated by renewable energy. The carbon intensity ultimately depends on the carbon neutrality of the source of electricity (i.e., the more renewable energy there is in the electricity fuel mix, the “greener” the hydrogen produced).

Therefore, option (a) is the correct answer.

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

Previous Quizzes:

Polity and Governance (Week 2)

Polity and Governance (Week 3)

Polity and Governance (Week 4)

History, Culture, and Social Issues (Week 2)

History, Culture, and Social Issues (Week 3)

History, Culture, and Social Issues (Week 4)

UPSC Weekly Quiz (Current Affairs)

UPSC Essentials: Daily subject-wise quiz — Economy (Week 2)

UPSC Essentials: Daily subject-wise quiz — Economy (Week 3)

UPSC Essentials: Daily subject-wise quiz — Economy (Week 4)

Environment, Geography, Science and Technology (Week 2)

Environment, Geography, Science and Technology (Week 3)

Environment, Geography, Science and Technology (Week 4)

International Relations (Week 2)

International Relations (Week 3)

International Relations (Week 4)

Tomorrow’s Quiz: International Relations

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