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Daily Quiz: July 21, 2020
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- Question 1 of 10
1. Question
1 pointsCategory: EconomyConsider the following statements regarding the Asset Monetisation Framework:
- It is prepared by Reserve bank of India.
- It helps to monetise stressed debts of banking system.
Which of the statements given above is/are correct?
Correct
The framework is being drafted by the Department of Investment and Public Asset Management (DIPAM). The policy framework lays down the Institutional framework for monetization of the following:
- Identified non-core assets of CPSEs under strategic disinvestment;
- Immovable Enemy Property under the custody of Custodian of Enemy Property (CEPI), MHA as per sub section 6 of section 8A of the Enemy Property Act, 1968;
- This framework is also available for use to monetize assets of other CPSEs/PSUs/other Government Organizations with the approval of the Competent Authority;
- Sick/Loss making CPSEs under closure normally follow the DPE closure guidelines dated 14.06.2018 in this regard. However, any sick/loss making CPSE can also adopt this framework with the approval of Competent Authority.
The objective of the asset monetization programme of the Government of India is to unlock the value of investment made in public assets which have not yielded appropriate or potential returns so far.
Incorrect
The framework is being drafted by the Department of Investment and Public Asset Management (DIPAM). The policy framework lays down the Institutional framework for monetization of the following:
- Identified non-core assets of CPSEs under strategic disinvestment;
- Immovable Enemy Property under the custody of Custodian of Enemy Property (CEPI), MHA as per sub section 6 of section 8A of the Enemy Property Act, 1968;
- This framework is also available for use to monetize assets of other CPSEs/PSUs/other Government Organizations with the approval of the Competent Authority;
- Sick/Loss making CPSEs under closure normally follow the DPE closure guidelines dated 14.06.2018 in this regard. However, any sick/loss making CPSE can also adopt this framework with the approval of Competent Authority.
The objective of the asset monetization programme of the Government of India is to unlock the value of investment made in public assets which have not yielded appropriate or potential returns so far.
- Question 2 of 10
2. Question
1 pointsWhich of the following enterprises is/are funded mostly under Venture Capital funds?
- Start-ups.
- Small and medium enterprises.
- Large enterprises.
Select the correct answer using the code given below:
Correct
Venture capital funds are investment funds that manage the money of investors who seek private equity stakes in startup and small- to medium-sized enterprises with strong growth potential.
- These investments are generally characterized as high-risk/high-return opportunities.
- In the past, venture capital investments were only accessible to professional venture capitalists, although now accredited investors have a greater ability to take part in venture capital investments.
Incorrect
Venture capital funds are investment funds that manage the money of investors who seek private equity stakes in startup and small- to medium-sized enterprises with strong growth potential.
- These investments are generally characterized as high-risk/high-return opportunities.
- In the past, venture capital investments were only accessible to professional venture capitalists, although now accredited investors have a greater ability to take part in venture capital investments.
- Question 3 of 10
3. Question
1 pointsConsider the following statements regarding the Market Stabilization Scheme (MSS):
- It is a tool used by central bank (RBI) to increase the liquidity and bringing the money market under control.
- It was initiated by Raghuram Rajan in 2013.
Which of the statements given above is/are NOT correct?
Correct
Market Stabilisation Scheme or MSS is a tool used by the Reserve Bank of India to suck out excess liquidity from the market through issue of securities like Treasury Bills, Dated Securities etc. on behalf of the government.
- The money raised under MSS is kept in a separate account called MSS Account and not parked in the government account or utilized to fund its expenditures.
- The Reserve Bank under Governor YV Reddy initiated the MSS scheme in 2004, to control the surge of US dollars in the Indian market; RBI started buying US dollars while pumping in rupee.
This eventually led to over-supply of the domestic currency raising inflationary expectations. MSS was introduced to mop up this excess liquidity.
Incorrect
Market Stabilisation Scheme or MSS is a tool used by the Reserve Bank of India to suck out excess liquidity from the market through issue of securities like Treasury Bills, Dated Securities etc. on behalf of the government.
- The money raised under MSS is kept in a separate account called MSS Account and not parked in the government account or utilized to fund its expenditures.
- The Reserve Bank under Governor YV Reddy initiated the MSS scheme in 2004, to control the surge of US dollars in the Indian market; RBI started buying US dollars while pumping in rupee.
This eventually led to over-supply of the domestic currency raising inflationary expectations. MSS was introduced to mop up this excess liquidity.
- Question 4 of 10
4. Question
1 pointsWhich of the following is/are type (s) of Government Securities (G-Sec)?
- Treasury Bills (T-bills)
- Cash Management Bills (CMBs)
- Dated Government Securities
Select the correct answer using the code given below:
Correct
A Government Security (G-Sec) is a tradeable instrument issued by the Central Government or the State Governments. It acknowledges the Government’s debt obligation.
Such securities are short term (usually called treasury bills, with original maturities of less than one year) or long term (usually called Government bonds or dated securities with original maturity of one year or more).
In India, the Central Government issues both, treasury bills and bonds or dated securities while the State Governments issue only bonds or dated securities, which are called the State Development Loans (SDLs).
G-Secs carry practically no risk of default and, hence, are called risk-free gilt-edged instruments.
- Treasury Bills (T-bills): Treasury bills or T-bills, which are money market instruments, are short term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 day, 182 day and 364 day.
- Cash Management Bills (CMBs): In 2010, Government of India, in consultation with RBI introduced a new short-term instrument, known as Cash Management Bills (CMBs), to meet the temporary mismatches in the cash flow of the Government of India. The CMBs have the generic character of T-bills but are issued for maturities less than 91 days.
- Dated G-Secs: Dated G-Secs are securities which carry a fixed or floating coupon (interest rate) which is paid on the face value, on half-yearly basis. Generally, the tenor of dated securities ranges from 5 years to 40 years.
Incorrect
A Government Security (G-Sec) is a tradeable instrument issued by the Central Government or the State Governments. It acknowledges the Government’s debt obligation.
Such securities are short term (usually called treasury bills, with original maturities of less than one year) or long term (usually called Government bonds or dated securities with original maturity of one year or more).
In India, the Central Government issues both, treasury bills and bonds or dated securities while the State Governments issue only bonds or dated securities, which are called the State Development Loans (SDLs).
G-Secs carry practically no risk of default and, hence, are called risk-free gilt-edged instruments.
- Treasury Bills (T-bills): Treasury bills or T-bills, which are money market instruments, are short term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 day, 182 day and 364 day.
- Cash Management Bills (CMBs): In 2010, Government of India, in consultation with RBI introduced a new short-term instrument, known as Cash Management Bills (CMBs), to meet the temporary mismatches in the cash flow of the Government of India. The CMBs have the generic character of T-bills but are issued for maturities less than 91 days.
- Dated G-Secs: Dated G-Secs are securities which carry a fixed or floating coupon (interest rate) which is paid on the face value, on half-yearly basis. Generally, the tenor of dated securities ranges from 5 years to 40 years.
- Question 5 of 10
5. Question
1 points“Mission Purvodaya” is often seen in news is related to which of the following?
Correct
Mission Purvodaya in steel sector envisions creating an integrated steel hub in Eastern India.
- With abundance of raw materials, strategic geographical location and strong and developing connectivity, Odisha is well poised to be the heart of this eastern steel hub.
- The Mission is rolled out by Union Petroleum and Natural Gas & Steel Ministry.
- More than 75% of India‘s envisioned incremental steel capacity will come from eastern India, with Odisha alone crossing 100 MTPA.
- In Odisha, Kalinganagar will be developed as the epicenter of Mission Purvodaya.
Incorrect
Mission Purvodaya in steel sector envisions creating an integrated steel hub in Eastern India.
- With abundance of raw materials, strategic geographical location and strong and developing connectivity, Odisha is well poised to be the heart of this eastern steel hub.
- The Mission is rolled out by Union Petroleum and Natural Gas & Steel Ministry.
- More than 75% of India‘s envisioned incremental steel capacity will come from eastern India, with Odisha alone crossing 100 MTPA.
- In Odisha, Kalinganagar will be developed as the epicenter of Mission Purvodaya.
- Question 6 of 10
6. Question
1 pointsConsider the following statements regarding the Vizag-Chennai Industrial Corridor (VCIC):
- It is part of Kolkata-Kanyakumari East Coast Economic Corridor.
- It is funded by Asian Infrastructure Investment Bank (AIIB).
Which of the statements given above is/are correct?
Correct
Asian Development Bank (ADB) had prepared Conceptual Development Plan (CDP) for Vizag-Chennai Industrial Corridor (VCIC).
- The Andhra Pradesh government has mooted development of nodes in Visakhapatnam, Machilipatnam, Donakonda and on the Yerpedu-Srikalahasti stretch.
- The VCIC has been identified for development in the first phase of Kolkata-Kanyakumari East Coast Economic Corridor.
- The ADB, which prepared the concept paper, has agreed to give $500 million towards multi-tranch financing facility and policy-based loan worth $125 million.
Incorrect
Asian Development Bank (ADB) had prepared Conceptual Development Plan (CDP) for Vizag-Chennai Industrial Corridor (VCIC).
- The Andhra Pradesh government has mooted development of nodes in Visakhapatnam, Machilipatnam, Donakonda and on the Yerpedu-Srikalahasti stretch.
- The VCIC has been identified for development in the first phase of Kolkata-Kanyakumari East Coast Economic Corridor.
- The ADB, which prepared the concept paper, has agreed to give $500 million towards multi-tranch financing facility and policy-based loan worth $125 million.
- Question 7 of 10
7. Question
1 pointsConsider the following statements regarding the Farmer Producer Organization (FPO):
- Farmers, Local representatives and other interested parties are the shareholders of FPO.
- NABARD has dedicated funds to promote FPOs.
Which of the statements given above is/are correct?
Correct
An FPO, formed by a group of farm producers, is a registered body with producers as shareholders in the organization.
- It deals with business activities related to the farm produce and it works for the benefit of the member producers.
- Small Farmers’ Agribusiness Consortium (SFAC) is providing support for promotion of FPOs.
- NABARD has dedicated Funds like Producer Organisation Development Fund (PODF) and PRODUCE for promotion of FPOs.
- Financing FPOs through NABARD’s subsidiary NABKISAN Finance Ltd., digitisation of FPO data, development of performance measurement tool, etc. have also contributed to the ongoing efforts.
- Besides, NABARD is running an awareness campaign on the role of FPOs in building resilience against climate change, increase in productivity and optimal efficiency in the agri value chain.
Incorrect
An FPO, formed by a group of farm producers, is a registered body with producers as shareholders in the organization.
- It deals with business activities related to the farm produce and it works for the benefit of the member producers.
- Small Farmers’ Agribusiness Consortium (SFAC) is providing support for promotion of FPOs.
- NABARD has dedicated Funds like Producer Organisation Development Fund (PODF) and PRODUCE for promotion of FPOs.
- Financing FPOs through NABARD’s subsidiary NABKISAN Finance Ltd., digitisation of FPO data, development of performance measurement tool, etc. have also contributed to the ongoing efforts.
- Besides, NABARD is running an awareness campaign on the role of FPOs in building resilience against climate change, increase in productivity and optimal efficiency in the agri value chain.
- Question 8 of 10
8. Question
1 points“Apiary on Wheels” is sometimes seen in news is related to which of the following?
Correct
The Ministry of Micro, Small and Medium Enterprises has flagged off “Apiary on Wheels”.
- Apiary on Wheels is a unique concept designed by the Khadi and Village Industries Commission (KVIC) for the easy upkeep and migration of Bee Boxes having live Bee colonies.
- It is a holistic approach to address the challenges faced by the beekeepers.
Incorrect
The Ministry of Micro, Small and Medium Enterprises has flagged off “Apiary on Wheels”.
- Apiary on Wheels is a unique concept designed by the Khadi and Village Industries Commission (KVIC) for the easy upkeep and migration of Bee Boxes having live Bee colonies.
- It is a holistic approach to address the challenges faced by the beekeepers.
- Question 9 of 10
9. Question
1 pointsWhich of the following crops are covered under minimum support price (MSP)?
- Paddy
- Wheat
- Cotton
- Jute
- Sugar crane
Select the correct answer using the code given below:
Correct
The Government’s price policy for agricultural commodities seeks to ensure remunerative prices to the growers for their produce with a view to encourage higher investment and production and to safeguard the interest of consumers by making available supplies at reasonable prices with low cost of intermediation.
- The price policy also seeks to evolve a balanced and integrated price structure in the perspective of the overall needs of the economy.
- Towards this end, the Government announces, Minimum Support Prices (MSP) for 25 major agricultural commodities each year in both the Crop seasons after taking into account the recommendations of the Commission for Agricultural Costs and Prices (CACP).
- CACP recommends MSP for twenty two (22) crops and Fair & Remunerative Price (FRP) for sugarcane.
- Apart from Sugarcane for which FRP is declared by the Department of Food &Public Distribution, twenty two crops covered under MSP are Paddy, Jowar, Bajra, Maize, Ragi, Arhar, Moong, Urad, Groundnut-in-shell, Soyabean, Sunflower, Seasamum, Nigerseed, Cotton, Wheat, Barley, Gram, Masur (lentil), Rapeseed/Mustardseed, Safflower, Jute and Copra.
- In addition, MSP for Toria and De-Husked coconut is fixed by the Department on the basis of MSP’s of Rapeseed/Mustardseed and Copra respectively.
Incorrect
The Government’s price policy for agricultural commodities seeks to ensure remunerative prices to the growers for their produce with a view to encourage higher investment and production and to safeguard the interest of consumers by making available supplies at reasonable prices with low cost of intermediation.
- The price policy also seeks to evolve a balanced and integrated price structure in the perspective of the overall needs of the economy.
- Towards this end, the Government announces, Minimum Support Prices (MSP) for 25 major agricultural commodities each year in both the Crop seasons after taking into account the recommendations of the Commission for Agricultural Costs and Prices (CACP).
- CACP recommends MSP for twenty two (22) crops and Fair & Remunerative Price (FRP) for sugarcane.
- Apart from Sugarcane for which FRP is declared by the Department of Food &Public Distribution, twenty two crops covered under MSP are Paddy, Jowar, Bajra, Maize, Ragi, Arhar, Moong, Urad, Groundnut-in-shell, Soyabean, Sunflower, Seasamum, Nigerseed, Cotton, Wheat, Barley, Gram, Masur (lentil), Rapeseed/Mustardseed, Safflower, Jute and Copra.
- In addition, MSP for Toria and De-Husked coconut is fixed by the Department on the basis of MSP’s of Rapeseed/Mustardseed and Copra respectively.
- Question 10 of 10
10. Question
1 pointsWhich of the following is/are procurement agency/agencies for agriculture commodities?
- Food Corporation of India (FCI).
- Cotton Corporation of India (CCI).
- National Consumer Cooperative Federation of India Ltd. (NCCF).
Select the correct answer using the code given below:
Correct
Besides, announcement of MSP, the Government also organizes procurement operations of these agricultural commodities through various public and cooperative agencies such as Food Corporation of India (FCI), Cotton Corporation of India (CCI), Jute Corporation of India (JCI), Central Warehousing Corporation (CWC), National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), National Consumer Cooperative Federation of India Ltd. (NCCF), and Small Farmers Agro Consortium (SFAC).
Besides, State Governments also appoint state agencies to undertake PSS operations. While deciding the MSP for various agricultural commodities, the recommendations of CACP, the views of Central Ministries and State Governments and such other relevant factors which are important in the opinion of the Government are considered.
The CACP, while recommending the Minimum Support Price keeps in view
- the need to provide incentives to the producers for adopting improved technology and for developing a production pattern broadly in the light of national requirements
- the need to ensure rational utilization of land, water and other production resources and
- the likely effect of the price policy on the rest of the economy, particularly, on the cost of living, level of wages, industrial cost structure etc.
NAFED, Central Warehousing Corporation (CWC), National Consumer Cooperative Federation of India Ltd. (NCCF), Small Farmers Agro Consortium (SFAC) are the central agencies for procurement of oilseeds & pulses.
However, NAFED is also an additional central agency for procurement of cotton, in addition to Cotton Corporation of India (CCI) under the DAC.
Incorrect
Besides, announcement of MSP, the Government also organizes procurement operations of these agricultural commodities through various public and cooperative agencies such as Food Corporation of India (FCI), Cotton Corporation of India (CCI), Jute Corporation of India (JCI), Central Warehousing Corporation (CWC), National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), National Consumer Cooperative Federation of India Ltd. (NCCF), and Small Farmers Agro Consortium (SFAC).
Besides, State Governments also appoint state agencies to undertake PSS operations. While deciding the MSP for various agricultural commodities, the recommendations of CACP, the views of Central Ministries and State Governments and such other relevant factors which are important in the opinion of the Government are considered.
The CACP, while recommending the Minimum Support Price keeps in view
- the need to provide incentives to the producers for adopting improved technology and for developing a production pattern broadly in the light of national requirements
- the need to ensure rational utilization of land, water and other production resources and
- the likely effect of the price policy on the rest of the economy, particularly, on the cost of living, level of wages, industrial cost structure etc.
NAFED, Central Warehousing Corporation (CWC), National Consumer Cooperative Federation of India Ltd. (NCCF), Small Farmers Agro Consortium (SFAC) are the central agencies for procurement of oilseeds & pulses.
However, NAFED is also an additional central agency for procurement of cotton, in addition to Cotton Corporation of India (CCI) under the DAC.