Daily Quiz: UPSC Prelims Marathon- August 22

Statement 2 is incorrect:

It comes under Ministry of Finance

Important Learning:

The Department of Disinvestment has been renamed as Department of Investment and Public Asset Management or ‘Dipam’, a decision aimed at proper management of Centre’s investments in equity including its disinvestment in central public sector undertakings.

The new department has been mandated to “advice the government in the matters of financial restructuring of central public sector enterprises and for attracting investment through capital markets”,

While the Lorenz curve is most often used to represent economic inequality, it can be used to represent unequal distribution in any system. The farther away the curve is from the baseline, represented by the straight diagonal line, the higher the level of inequality. In economics, the Lorenz curve denotes inequality in the distribution of either wealth or income;

The Gini coefficient is used to express the extent of inequality in a single figure. It can range from 0 (or 0%) to 1 (or 100%).

Statement 2 is incorrect:

• NBFC will rise funds from the market and also mobilize CSR funds from PSUs/Corporates and lend to government-run higher educational institutions for promoting research and innovation.

Important Learning:

• The Government has signed an agreement with Canara bank to set up non-banking financial company (NBFC) called the Higher Education Finance Agency (HEFA).
• It will be a joint venture between the HRD ministry and the bank.
• It is formed to give a major push for creation of high quality infrastructure in premier educational institutions.

Explanation:

The RBI tries to control inflation by raising the policy rates ( CRR, SLR, repo rate, bank rate). This increases the lending rate. To understand how increasing the lending rate eases inflation, we need to see how interest rate affects demand. When interest rates are low, people would consume more and finance their consumption by lending.

Now, if interest rates are raised, people would refrain from borrowing to finance consumption, leading to decreased demand. Less demand means low prices. This is how increasing interest rates lower inflation.

Statement 1 is incorrect:

Unnat Jyoti by Affordable LEDs and appliances for All (UJALA) is a flagship scheme of Ministry of Power for distribution of energy efficient appliance.

Important Learning:

Its main objective is to promote efficient lighting, enhance awareness on using efficient equipment which reduce electricity bills and help preserve environment.

Under this scheme, LED bulbs at 40% of the market price will be distributed to every grid connected consumer.

It is implemented by the Electricity Distribution Company and Energy Efficiency Services Limited (EESL).

Priority Sector includes the following categories:

(i) Agriculture
(ii) Micro, Small and Medium Enterprises
(iii) Export Credit
(iv) Education
(v) Housing
(vi) Social Infrastructure
(vii) Renewable Energy
(viii) Others

Stages of Economic Integration:

1.) Preferential Trade Agreement

2.) Free Trade Agreement

3.) CECA/CEPA

4.) Custom Union

5.) Common Market

6.) Economic Union

Important Learning:

A trade agreement is an arrangement between two or more countries or trading blocs that primarily agree to reduce or eliminate customs tariff and non-tariff barriers on limited/substantial trade between them. It also includes tax benefits and investment guarantees.

The most common trade agreements are of the preferential and free trade types in order to reduce (or eliminate) tariffs, quotas and other trade restrictions on items traded between the signatories. Trade Agreements can create opportunities for and help to grow Indian economy.