Daily Quiz: UPSC Prelims Marathon – January 22, 2019

Peer-to-peer lending is a form of crowd-funding used to raise loans for people who need to borrow, from people who want to invest.

It enables individuals to borrow and lend money without any financial institution as an intermediary, and extends credit to borrowers who are unable to get it through traditional financial institutions.

The main idea is savers getting higher interest by lending out their money instead of saving it, and borrowers getting funds at comparatively low interest rates.

It typically uses an online platform where the borrowers and lenders register themselves. Due diligence is carried out before allowing the parties to participate in any lending or borrowing activity.

All P2P platforms will now be considered non-banking financial companies and regulated by the RBI.

Statement 1 is Incorrect:

National Income – Total value of final goods and services produced by the normal residents during an accounting year, after adjusting depreciation.

Statement 2 and 3 are correct

It is Net National Product (NNP) at Factor Cost (FC)

It does not include taxes, depreciation and non-factor inputs (raw materials).

Money Supply is the total stock of all types money (currency + deposit money) held with public.

Concepts/Measurement of Money Supply:

M1 = C + DD + OD (Narrow Money)

C – Currency held by the public

DD – Demand Deposits with Banks

OD – Other deposits (Demand Deposits held by RBI)

M2 = M1 + Savings account deposits with Post Offices

M3 = M1 + TD (Broad Money)

TD – Time Deposits with Banks Includes fixed deposits, Recurring deposits and time liability of Savings accounts

M4 = M3 + Total Deposits with Post Office.

The Trade and Development Report (TDR), launched in 1981, is issued every year for the annual session of the Trade and Development Board.

The Report analyses current economic trends and major policy issues of international concern, and makes suggestions for addressing these issues at various levels.

CPI is a measure of change in retail prices of goods and services consumed by defined population group in a given area with reference to a base year.The formula for calculating Consumer Price Index is Laspeyre’s  with base year 2010.It is calculated by Central Statistics Office (CSO) < In the Ministry of Statistics and Programme Implementation (MOSPI)

The WPI measures the price of a representative basket of wholesale goods. WPI captures price movements in a most comprehensive way.  It is calculated by – Office of the Economic Adviser <In DIPP (Department of Industrial Policy and Promotion) < In Ministry of Commerce & Industry.

Index of Industrial Production (IIP) measures the quantum of changes in the industrial production in an economy and captures the general level of industrial activity in the country. It is a composite indicator expressed in terms of an index number which measures the short term changes in the volume of production of a basket of industrial products during a given period with respect to the base period(2004).It is calculated by Central Statistics Office (CSO) < In the Ministry of Statistics and Programme Implementation (MOSPI)

The budget consists of two types of expenditure—the expenditure ‘charged’ upon the Consolidated Fund of India and the expenditure ‘made’ from the Consolidated Fund of India. The charged expenditure is non-votable by the Parliament, that is, it can only be discussed by the Parliament, while the other type has to be voted by the Parliament. The list of the charged expenditure is as follows:

1. Emoluments and allowances of the President and other expenditure relating to his office.
2. Salaries and allowances of the Chairman and the Deputy Chairman of the RajyaSabha and the Speaker and the Deputy Speaker of the LokSabha.
3. Salaries, allowances and pensions of the judges of the Supreme Court.
4. Pensions of the judges of high courts.
5. Salary, allowances and pension of the Comptroller and Auditor General of India.
6. Salaries, allowances and pension of the chairman and members of the Union Public Service Commission.
7. Administrative expenses of the Supreme Court, the office of the Comptroller and Auditor General of India and the Union Public Service Commission including the salaries, allowances and pensions of the persons serving in these offices.
8. The debt charges for which the Government of India is liable, including interest, sinking fund charges and redemption charges and other expenditure relating to the raising of loans and the service and redemption of debt.
9. Any sum required to satisfy any judgement, decree or award of any court or arbitral tribunal.
10. Any other expenditure declared by the Parliament to be so charged.

• First rough estimate of NI was done by DadabhaiNaoroji for 1867-68; published in his book Poverty and Unbritish rule in India (famous for its Drain of Wealth theory)
• First scientific estimate made by Prof V K R V Rao (1931-32)
• GoI estimated the NI for the first time in 1948-49 through the Ministry of Commerce
• National Income Committee was set up in 1949 (Chairman – Dr P C Mahalanobis)
• P C Mahalanobis was also the chairman of Indian Statistical Institute
• Currently, Central Statistical Organization (est 1950) estimates NI (since 1956)
• It publishes National Accounts Statistics annually
• Under the Ministry of Statistics and Programme Implementation
• Now, CSO has been merged with National Sample Survey Organization to form National Statistical Organization