Daily Quiz: UPSC Prelims Marathon – July 10, 2018

Key Provisions of FRDI bill: It seeks to establish a Resolution Corporation to replace the existing Deposit Insurance and Credit Guarantee Corporation(DICGC) Resolution Corporation will monitor the financial firms such as banks and insurance companies, anticipate their risk of failure, take corrective action, and resolve them in case of such failure. The Corporation will also provide deposit insurance up to a certain limit, in case of bank failure.

Municipality bonds can be issued by the city corporations to fund developmentalprojects. Institutional investors, as well as the public, can buy these bonds.The corporations can use the revenues earned from the developmental projectslike Metro rail network to repay the interest and principal on these bond. Citiessuch as Ahmedabad, Bengaluru, Nashik and Madurai have already issued them.These bonds will help the city corporations to directly raise funds.These municipal bonds have now been permitted and regulated for publicoffering by SEBI not RBI.

India ranked third in the Organisation for Economic Co-operation and Development’s(OECD) Government at a Glance 2017 report.OECD’s Government at a Glance reportpresents an index of countries that trust their governments the most.The 2017 edition ofthe report based on Gallup World Poll for 2016 states that, Indonesia and Switzerlandwith 80% people having trust in their government.

Invest India operationalized in early 2010, is set up as a joint venture company between the Department ofIndustrial Policy & Promotion (DIPP), Ministry of Commerce & Industry (35% equity), Federation of

Indian Chambers of Commerce and Industry (FICCI) (51% equity), and State Governments of India(0.5% each) in 2010.Thus, essentially, Invest India is a private company set up by the Ministry of Commerce & Industry. The core mandate of Invest India is investment promotion and facilitation. It provides sector-specific andstate-specific information to a foreign investor, assists in expediting regulatory approvals, and offers hand-holding services. Its mandate also includes assisting Indian investors to make informed choicesabout investment opportunities overseas. Invest India is intended to become the first reference point for the global investment community – bothdomestic and foreign. Make In India campaign is managed by Invest India.

Public goods, as distinct from private goods, are collectively consumed. Two important featuresof public goods are – they are non-rivalrous in that one person can increase her satisfactionfrom the good without reducing that obtained by others and they are non-excludable, and thereis no feasible way of excluding anyone from enjoying the benefits of the good.These make it difficult to collect fees for their use and private enterprise will in general notprovide these goods. Hence, they must be provided by the government.

Macro-prudential policy is a novel way of looking into financial regulation. As defined by European Central Bank, macro-prudential policies aims to make the financial sector more resilient and limit contagion effects (cross-section dimension)prevent the excessive build-up of risk, resulting from external factors and market failures, to smoothen thefinancial cycle (time dimension).encourage a system-wide perspective in financial regulation to create the right set of incentives for marketparticipants (structural dimension).

ParyatanParv :The Parv was inaugurated at the Humayun’s Tomb, New Delhi between 5th to 25th October, 2017. It will showcase the cultural diversity of the country, with cultural performances, craftsbazaar, food court showcasing folk and classical dance & music, handicrafts & handloomsand cuisine from all regions and States of the country.ParyatanParv will have three main components

• DekhoApnaDesh- To encourage Indians to visit their own country
• Tourism for All – Tourism Events at sites across all States in the country
• Tourism & Governance – Interactive Sessions & Workshops with Stakeholders on variedthemesThe “Adopt a Heritage” project launched by the Ministry of Tourism will be implemented at keysites during this period.