Daily Quiz: UPSC Prelims Marathon – August 21, 2018

Statements 1 and 4 are correct. Global financial Stability report and World Economic Outlook are released by IMF.

Statement 2 and 3 are incorrect. World Investment Report – UNCTAD Asia and Pacific Trade and investment report – UNESCAP

Statement 2 is incorrect. SETU or Self Employment and Talent Utilization Scheme is a techno-financial, incubation and facilitation programme to give support and encouragement to young start-ups and other self-employment technology-intensive ideas.

• It will involve setting up of incubation centres and enhance skill development.
• It aims to create around 100,000 jobs through start-ups

Statement 1 is correct.

Atal Innovation Mission or AIM including Self-Employment and Talent Utilization (SETU) is Government of India’s, Under NITI AAYOG, endeavour to promote a culture of innovation and entrepreneurship. Its objective is to serve as a platform for promotion of world-class Innovation Hubs, Grand Challenges, Start-up businesses and other self-employment activities, particularly in technology driven areas.

The Atal Innovation Mission shall have two core functions:

• Entrepreneurship promotion through Self-Employment and Talent Utilization
• Innovation promotion by providing a platform where innovative ideas are generated

Statement 3 is correct.

IMPRINT (Impacting Research Innovation and Technology), a Pan-IIT and IISc joint initiative to develop a roadmap for research to solve major engineering and technology challenges in ten technology domains relevant to India.

Structural unemployment is a category of unemployment arising from the mismatch between the

jobs available in the market and the skills of the available workers in the market. Structurally unemployed people usually have skills that are not needed in the market or have a specialized background or experience that cannot be used in the current market. It is usually the result of a change in the economic situation of an industry or region, often a natural disaster or the introduction of a new competitor or market. Natural disasters, such as hurricanes, have wiped out entire industries in geographic regions leaving the workforce structurally unemployed. It can also be occur due to change in technology (from labour intensive technology to capital intensive technology) or change in the pattern of demand. In a developing country like India, structural unemployment exists both in the rural and the urban areas.

A Time deposits with the bank is less liquid in nature among the mentioned assets. A time deposit or term deposit is a deposit with a specified period of maturity and earns interest. It is a money deposit at a banking institution that cannot be withdrawn for a specific term or period of time (unless a penalty is paid). When the term is over it can be withdrawn or it can be held for another term. Liquidity describes how easy it is to convert assets to cash. The most liquid asset, and what everything else is compared to, is cash or currency. This is because it can always be used easily and immediately.

The sequence of these decreasing order of Liquidity is:

1. Currency
2. Demand deposits with the banks
3. Savings deposits with the banks
4. Time deposits with the banks

Statement 1 is incorrect. A measure of economic well-being for a specified economy, computed by taking the sum of the unemployment rate and the inflation rate for a given period.

Statement 2 is correct. An increasing index means a worsening economic climate for the economy in question, and vice versa.

Statement 1 and 2 are correct. As per the RBI’s guidelines a part (i.e. maximum of 50 per cent) of the aggregate amount of loans may be extended for other purposes such as housing repairs, education, medical and other emergencies. However, aggregate amount of loans given to a borrower for income generation should constitute at least 50 per cent of the total loans from the NBFC-MFI.

Statement 3 is incorrect. NBFC-MFIs cannot accept demand deposits. Thus, they are not allowed to open Savings bank account.

Statement 1 is correct. Capital account convertibility (CAC) means the freedom to convert local financial assets into foreign financial assets and vice versa at market determined rates of exchange. This implies that Capital Account Convertibility allows anyone to freely move from local currency into foreign currency and back. Current Account Convertibility allows free inflows and outflows of foreign currency for all purpose including resident Indians buying foreign goods and services (imports), Indians selling foreign goods and services (exports), Indians receiving and sending remittances, accessing foreign currency for travel, study abroad, medical tourism purpose etc. On the other hand, Capital Account Convertibility is widely regarded as the hallmark of developed countries. It is also seen as the major comfort factor for foreign investors since it allows them to reconvert local currency back into their own currency and move out from India. Presently, India has current account convertibility. This means one can import and export goods or receive or make payments for services rendered. However, investments and borrowings are restricted.

Hence, statement 2 is correct.

Statement 3 is incorrect. The flip side of capital account convertibility is that it can destabilise an economy due to massive capital flows in and out of the country.