Daily Quiz: UPSC Prelims Marathon – February 5, 2019

Both the statements are correct.

WTO’s Special Safeguard Mechanism (SSM) is a protection measure allowed for developing countries to take contingency restrictions against agricultural imports that are causing injuries to domestic farmers. It is a tool that will allow developing countries to raise tariffs temporarily to deal with import surges or price falls.

The “Nairobi Package” was adopted at the WTO’s Tenth Ministerial Conference, held in Nairobi, Kenya, from 15 to 19 December 2015. It contains a series of six Ministerial Decisions on agriculture, cotton and issues related to least-developed countries (LDCs). A Ministerial Declaration outlining the Package and the future work of the WTO was adopted at the end of the five-day Conference. The matters related to agriculture mentioned in the Nairobi Package are Special Safeguard Mechanism for Developing Country Members, Public Stockholding for Food Security Purposes, Export Competition.

Statement 1 is incorrect. While share represents part of ownership of a company, debenture acknowledges loan or debt to the company. Thus, a shareholder is a participant in the profits as well as losses of the company.

Statement 2 is incorrect. Dividend is paid on share, which is an appropriation of profits, but a debenture holder is paid interest over the lifetime of the debenture and principal amount at the end of life.

Both the statements are correct.

District Mineral Foundation (DMF) is a trust set up as a non-profit body, in those districts affected by the mining works, to work for the interest and benefit of persons and areas affected by mining related operations. It is funded through the contributions from miners. Its manner of operation comes under the jurisdiction of the relevant State Government.

Setting up of District Mineral Foundations (DMFs) in all districts in the country affected by mining related operations was mandated through the Mines and Minerals (Development & Regulation) Amendment Act, (MMDRA) 2015.  On 16 September 2015, Central Government issued a notification directing states to set up DMF.

If the supply of money remains the same when there is an increase in demand for money, there will be an increase in the rate of interest.

An increase in the supply of money typically lowers interest rates, which in turns generates more investment and puts more money in the hands of consumers, thereby stimulating spending. Businesses respond by ordering more raw materials and increasing production.

GSTN is a not for profit, non-Government, private limited company incorporated in 2013.The Union Government holds 24.5% equity in GSTN. It has been set up primarily to provide IT infrastructure and services to the Central and State Governments, tax payers and other stakeholders for implementation of Goods and Services Tax (GST). All States including two UTs (Delhi and Puducherry) and the Empowered Committee of State Finance Ministers (EC) together hold another 24.5%. Balance 51% equity is with non-Government financial institutions-HDFC Bank Ltd (10%), HDFC Ltd (10%), ICICI Bank Ltd (10%), NSE NSE Strategic Investment Corporation Ltd (10%) and LIC Housing Finance Limited (11%).

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.

An indifference curve is a graph showing combination of two goods that give the consumer equal satisfaction and utility. Each point on an indifference curve indicates that a consumer is indifferent between the two and all points give him the same utility.