Daily Quiz: UPSC Prelims Marathon – October 3

• Mercosur is a custom union in South America. Its member countries are Argentina, Brazil, Paraguay, Uruguay. Its associate countries are Chile, Bolivia, Colombia, Ecuador and Peru. Observer countries are New Zealand and Mexico. Its purpose is to promote free trade and the fluid movement of goods, people, and currency.
• Venezuela was suspended in 2016 from the Mercosur trade group over its failure to comply with its commitments when it joined the group in 2012

• Frictional unemployment is the unemployment which exists in any economy due to people being in the process of moving from one job to another.
• Structural unemployment is a form of unemployment caused by a mismatch between the skills that workers in the economy can offer, and the skills demanded of workers by employers (also known as the skills gap).
• Cyclical unemployment is a factor of overall unemployment that relates to the cyclical trends in growth and production that occur within the business cycle. When business cycles are at their peak, cyclical unemployment will be low because total economic output is being maximized

Recently, India’s foreign exchange (Forex) reserves have crossed $400 billion mark for the first time. The increase was due sharp rise in foreign currency assets.

India is now at sixth position in forex reserves ranking behind China (3,053 billion reserves), Japan ($1,188 billion), Switzerland ($743 billion), Saudi Arabia ($489 billion) and Taiwan ($441 billion).

According to RBI, foreign currency assets were $376.20 billion, gold reserves at $20.69 billion, SDRs of $ 1.52 billion and $2.30 billion reserves in IMF. The main reasons for rise in Forex Reserves are sharp increase in foreign currency assets, mainly huge inflows through foreign direct investment (FDI) in projects and portfolio investments. Foreign investors have pumped in Rs. around $ 6.7 billion in stocks and $20.55 billion in debt instrument.

About Geographical Indication (GI): 

• GI tag is an insignia on products having a unique geographical origin and evolution over centuries with regards to its special quality or reputation attributes. The status to the products marks its authenticity and ensures that registered authorised users are allowed to use the popular product name.

Benefits of GI Status: 

• Legal protection to the products.
• Prevents unauthorised use of GI tag products by others.
• Helps consumers to get quality products of desired traits.
• Promotes economic prosperity of producers of GI tag goods by enhancing their demand in national and international markets.

Legal Authorities associated with GI: It is covered as an element of intellectual property rights (IPRs) under the Paris Convention for the Protection of Industrial Property.

• At international level, GI is governed by World Trade Organisation’s (WTO’s) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
• In India, GI registration is governed by the Geographical Indications of goods (Registration and Protection) Act, 1999 which came into force in September 2003. This Act is administered by the Controller General of Patents, Designs and Trade Marks, who is also the Registrar of Geographical Indications.

Darjeeling tea was the first product to be accorded with GI tag in India.

General Insurance Corporation of India (GIC) :

• GIC Re is the statutory body under the Department of Financial Services, Ministry of Finance.
• GIC originally was incorporated on 22nd November 1972, under the Companies Act, 1956.
• In November 2000, GIC was notified as the Indian Reinsurer.
• GIC Re is the only reinsurer in the country and wholly owned by Government of India.
• Its vision is “to be a leading global reinsurer and risk solution provider”.

GIC Re provides reinsurance to the direct general insurance companies in the Indian market.

Consolidated Fund of India It is a fund to which all receipts are credited and all payments are debited. In other words, (a) all revenues received by the Government of India; (b) all loans raised by the Government by the issue of treasury bills, loans or ways and means of advances; and (c) all money received by the government in repayment of loans forms the Consolidated Fund of India. All the legally authorised payments on behalf of the Government of India are made out of this fund. No money out of this fund can be appropriated (issued or drawn) except in accordance with a parliamentary law.

Both the statements are correct

• In April 1935,Reserve Bank of India was formed based on the recommendation of Hilton Young Commission (setup in 1926).
• In the year1949, 1st January the Reserve Bank of India was nationalized.