Daily Quiz: UPSC Prelims Marathon – February 27, 2018

Development expenditure is capital expenditure whereby it’s non-repeated and not operating expenditure in nature but more on investment related expenditure.

Defence procurements and Debit service liabilities or interest payments are revenue expenditure.

All the statements are incorrect.

Cash Reserve Ratio refers to the fraction of the total Net Demand and Time Liabilities (NDTL) of a Scheduled Commercial Bank held in India, that it has to maintain as cash deposit with the Reserve Bank of India (RBI).

The Statutory Liquidity Ratio (SLR) is a prudential measure under which (as per the Banking Regulations Act 1949) all Scheduled Commercial Banks in India must maintain an amount in one of the following forms as a percentage of their total Demand and Time Liabilities (DTL) / Net DTL (NDTL);

1. Cash
2. Gold; or
3. Investments in un-encumbered Instruments that include:

• Treasury-Bills of the Government of India.
• Dated securities including those issued by the Government of India from time to time under the market borrowings programme and the Market Stabilization Scheme (MSS).
• State Development Loans (SDLs) issued by State Governments under their market borrowings programme.
• Other instruments as notified by the RBI.

In contrast to the CRR, under which banks have to maintain cash with the RBI, the SLR requires holding of assets in one of the above three categories by the bank itself.

Liquidity adjustment facility (LAF) is a monetary policy tool which allows banks to borrow money through repurchase agreements or repos. LAF is used to aid banks in adjusting the day to day mismatches in liquidity (frictional liquidity deficit/surplus). Both SLR and CRR are not part of Liquidity adjustment facility.

Wholesale Price Index (WPI) measures the average change in the prices of commodities for bulk sale at the level of early stage of transactions. The index basket of the WPI covers commodities falling under the three major groups namely Primary Articles, Fuel and Power and Manufactured products.

WPI has the highest weightage of fuel component whereas for CPI the fuel component consist of firewood, electricity and dung cake. Hence, impact of crude is minimal.

Core inflation is derived after deducting short term volatile commodities like food and energy. Hence, it experiences minimum impact.

The recent fall in international crude price has the highest impact on WPI. It depends on the weightage of fuel component among different indicators.

All of the schemes aim at improving the food and nutritional status of the poor.

Public distribution system (PDS) is a food security system established by the government under Ministry of Consumer Affairs, Food and Public Distribution and managed jointly with state governments. It distributes subsidized food and non-food items to India’ spoor. Major commodities distributed include staple food grains, such as wheat, rice, sugar and kerosene, etc. through a network of fair price shops established in several states across the country.

Integrated Child Development Services (ICDS) Scheme is a centrally sponsored scheme implemented by the states/UTs. The Scheme was launched on 2nd October 1975. The scheme has the following objectives: to improve the nutritional and health status of children in the age-group 0-6 years; to reduce mortality, morbidity, malnutrition and school dropout; to promote policy coordination and implementation for promoting child development; to lay an adequate foundation for the psychological, physical and social well-being of the children etc.

The Mid-day Meal Scheme involves provision of lunch free of cost to school-children on all working days. Its key objectives include: Protecting children from classroom hunger; Increasing school enrolment and attendance; Improved socialisation among children belonging to all castes and Addressing malnutrition, and social empowerment through provision of employment to women.

Global Wealth Report is the most comprehensive source of global household wealth information issued by the Credit Suisse Research Institute.

A rights issue is an invitation to existing shareholders to purchase additional new shares in the company. More specifically, this type of issue gives existing shareholders securities called “rights”, which, well, give the shareholders the right to purchase new shares at a discount to the market price on a stated future date. The company is giving shareholders a chance to increase their exposure to the stock at a discount price.

Statement 1 is incorrect. The National Health Policy 2017 proposes raising of public health expenditure as a percentage of GDP from the existing 1.1 5 % to 2.5 % by 2025.

Statement 2 is correct. The National Health Policy 2017 aims to ensure district – level electronic database of information on health system components by 2020. It focuses on strengthening the health surveillance system and establish registries for diseases of public health importance by 2020. It aims to establish federated integrated health information architecture, Health Information Exchanges and National Health Information Network by 2025.