[WpProQuiz 17]
Daily Quiz : UPSC Prelims Marathon – January 24
Comments
58 responses to “Daily Quiz : UPSC Prelims Marathon – January 24”
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3/5
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Please donot do that. Because working professionals like me have to depend on the 7AM slot in order to write effectively. Otherwise we will lose out.
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Please explain 5 que , how increased demand will reduce DF
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5/5
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3 of 5 time 00:02:42
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3/5
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Thanks for the feedback. Let us see, if that is possible.
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Good conversations.
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@forumias-7f07ca326ce76cdde680e4b3d568bce8:disqus
please correct the explanation of the 1st question. India is not the world largest producer of natural rubber, India is 5th. -
Sir kindly explain q5 to everyone. Thanku :).
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Dear kal.hi tho samjhaya maine. Demand kis jiZ ki bad rrhi hai ye tho dekh. Eg. Gov took mny on borrowg then it invested that mny on infrastructure then demand will increase more employmnt so in that case private sector will establish new industries to meet demand ( even now.supply has not increased to.fulfil demand) . So essential investment is done. Here interst rate will.b controlled to prevent inflationary pressure. More infrastructure more.investment more.return so one can pay back . Now point 3 rbi can print notes to fulfil this brwg so again capital formation. Thats y all.3.r crct.
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same here bro
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#4. I went through the official website :: https://shramsuvidha.gov.in/home
Where objective is mentioned as :: “The objective of Web Portal is to consolidate information of Labour Inspection and its enforcement.”
There is no mention of labour laws reporting.Please justify the answer of this question.
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You have reached 3 of 5 scores, (60%)
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Good one.
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4/5.
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Your time: 00:04:32
You have reached 5 of 5 scores, (100%)
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Don’t worry bro. 5th question makes no sense to me also. The options have been worded horribly. From among the options however, ‘a’ is the most relevant.
P.S: Economics is the only subject I have a solid grip on, MA economics here. -
Theoretically it is possible to internal debt finance capital asset creation ABG. RBI could resort to printing currency in lieu of the debt and the resultant difference is used for capital formation. Needless to say, it is an extremely risky measure with inflation only a step away and hence it is resorted only as a last measure. But still for the sake of the question..it is possible to decrease deficit that if production matches demand..
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4 of 5 questions answered correctly
Your time: 00:02:53
You have reached 4 of 5 scores, (80%)5th question makes absolutely no sense to me, it has been worded wrongly.
P.S: I am an econ hons + masters student, its the only thing i have a solid grip on. -
Thanks for the reply. You are right, I was thinking in terms of balance sheet when answering…balance sheet has to be balanced not budget 🙂
But I distinctly remember reading somewhere that central budget deficit is always zero…was confused..anyway thanks! -
Well, if it has this kind of condition, there must be increase in deficit financing, according to Keynes deficit financing. I said you were right about the 3rd option. May be it wasn’t clear as I did not explain further.
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Thanks ABG for clarification and I am glad this clarification came from your side. 🙂
However,I still feel there is something wrong with the options. -
In my understanding,
FD = TE (exvluding borrowing)- TR
So why u r segerragating in capital n revenue,
Pls correct me. -
2/4
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It is logical. N dat is why I mentioned d same.not elaborated though.
N I marked option a only bcoz of dat.
Bcoz of only i rejected 2nd statemnt. -
He has explained it nicely
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Excellent.
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Refer @Civilserviceaspirant:disqus ‘s explanation. It sounds logical.
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D point is hw increase in demand only will reduce DF.
Not how DF lead to increase in demand.
Please clarify.. -
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Demand waala concept to samajh aa gaya hoga
Govt spending —-> Demand increases —> Economy boosts —–> Supply increases —-> Self sufficiency and Exports increase —-> No need of imports and positive Balance of trade —–> CAD decreases —-> Deficit financing reduced.Now 1st statement is important because you need to increase supply/demand ratio – if demands increases ONLY and supply does not increase —-> INFLATION increases —-> need of goods have to be fulfilled by IMPORTS —-> Deficit financing increases
Also, All govt expenditure is Internal debt financing —–> No CAPITAL FORMATION —–> No increase in SUPPLY —–> Need of imports —-> Further Deficit financing
Hence, I think that option a should be correct.
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Could someone please explain Question 5? How deficit financing can be reduced by the given options…. Thank you in advance 🙂
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Well I have no idea ABG! I left that question ‘cos I wasn’t having any clear picture. Hope someone clarifies.
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But how does it reduce DEFICIT FINANCING ?? It surely reduces Fiscal deficit. The idea here is that how debts are being financed – all expenditures only to finance internal debt is unsustainable – the thing is how will you bring expenditure.
Waise, theoretically, you are right Monica – no revenue expenditure and only capital expenditure.
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Increase in aggregate demand :- Deficit financing loads to increase in aggregate demand through increased public expenditure. This increase the income and purchasing power of the people as a consequence there is an increase availability of goods and services and the production and employment level also increase.
Source: -http://iscexamnotes-content.blogspot.in/2010/04/deficit-financing.html?m=1 -
There is something wrong with Q.5. Doesn’t make sense.
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Thank you @VVKEMPEROR:disqus ! Can you explain how if only demand goes up, deficit financing will be reduced?
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Nice score
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Deficit refers to the difference between expenditure and receipts. In public finance, it means the government is spending more than what it is earning. Government expenditure and revenue can be split into capital and revenue. Capital expenditure generally includes those expenses which result in creation of assets. Revenue expenditure is primarily that which does not result in asset creation —for example interest payments, salaries, subsidies, etc. Similarly, on the receipts side, whatever the government receives as taxes is revenue receipt. Receipts not of a recurring nature are generally capital receipts. These include domestic and external borrowings, proceeds of disinvestment, recovery of loans given by the Union government, etc.
Source GK Today
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If all expenditure are debt payments, it means zero revenue expenditure meaning a good composition of fiscal deficit. I have no idea in 2nd option.
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Well I think the question is right.
It has been made a little confusing for the people giving the test.Budget = Capital + Revenue account.
Capital account deficit = Total of receipts – total of expenditure.
Revenue account deficit = Total of receipts – total of expenditure.So, if CAD = 100-120 = (-20)
and RAD = 100-150= (-50)
then, Sum of the above two i.e. (-20) + (-50)= (-70)The same thing comes with what you said.
i.e. Difference between total expenditure and total receipts.
It goes like this– Total expenditure = 270.
Total receipts = 200
Difference = (-70)Hope it cleared the air @Insider:disqus
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5/5
Thanks@forumias -
Can someone please explain deficit financing question?
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Daily Quiz : UPSC Prelims Marathon – January 24
24 Jan, 2017Post By : ForumIASComments : 9Category : Daily QuizDaily Quiz – January 24
Results
3 of 5 questions answered correctlyYour time: 00:05:19
You have reached 3 of 5 scores, (60%)
Average score 40.16%
Your score 60%
CategoriesEconomy60%
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Third question options are wrong. Budget deficit is difference between total expenditure and total receipts (including loans and borrowings). Hence it is zero always. Could you kindly confirm?
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Hi Team, pls explain deficit financing ques-
Lil confused as if only demand will increase then price increase —-inflation —–DF should incresae.
Second, if all expenditure are debt—-unproductive—-deficit increase.Please correct me.
Thanks -
ForumIAS, I have one request to you regarding mains marathon. Kindly post the questions around 9:00 AM. Questions at around 7:00 AM gives opportunity to few of us to post the answer first and so reviewed and gets comments early and large in numbers. Those who post the answer late don’t get large attention by others. So, same timing of start writing the answers would serve a more playing field for all of us.
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thnk i’m new to forumias. It’s a decent platform
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Keep practicing. Good score.
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Good score Solitude.
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4/5 🙁
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Good score!
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Good score.
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Deficit financing – please explain
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You have reached 4 of 5 scores, (80%)
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4/5 🙁
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3/5
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