Daily Quiz: UPSC Prelims Marathon – January 29, 2019

A High Level advisory Committee (HLAC)was set up by the RBI on October 2013 Under the Chairmanship of Dr. BimalJalan to screen the applications for grant of Bank License under the RBI guidelines.

The Committee had granted in principal approval to IDFC Limited and BandhanFinacial Services Limited to set up banks.

Types of ATMs-

• White label ATMs- White Label ATMs are those ATMs which set up, owned and operated by non-bank entitiesincorporated under Companies Act 1956.
• Brown label ATMs- Brown label ATMs are owned and maintained by service provider whereas bank whose brand is used on ATM takes care of cash management and network connectivity.
• Green label ATMs- These ATMs are provided specifically for Agricultural transactions.
• Orange Label ATMs- ATMsprovided for Share Transactions.
• Yellow Label ATMs- o ATMs provided for E-commerce  Pink label ATM- o ATM provided for women banking.

EXIM Bank         

• Export-Import Bank of India – Established in 1982
• Controlled by Government of India (100%)

NABARD             

• National Bank for Agriculture and Rural Development – Established in 1982
• Controlled by → GoI (99.3%) + RBI (0.7%)

NHB      

• National Housing Bank – Established in 1988
• Apex institution for housing finance in India
• Controlled by RBI (100%)

SIDBI    

• Small industries development bank of India – Established in 1990
• Controlled by SBI, LIC, IDBI other public sector banks, insurance companies etc.

A mixed economic system is an economic system that features characteristics of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims.

All the above statements are correct. Inflation redistributes wealth from creditors to debtors. This implies that the lenders suffer and borrowers benefit out of inflation. As per Phillips curve inflation and unemployment have a stable and inverse relationship.

Rising inflation indicates rising aggregate demand and indicates comparatively lower supply and higher purchasing capacity among the consumers.

Quinary activities are services that focus on the creation, re-arrangement and interpretation of new and existing ideas; data interpretation and the use and evaluation of new technologies. Often referred to as ‘gold collar’ professions, they represent another subdivision of the tertiary sector representing special and highly paid skills of senior business executives, government officials, research scientists, financial and legal consultants, etc. Their importance in the structure of advanced economies far outweighs their numbers. The highest level of decision makers or policy makers performs quinary activities.

A liquidity trap is a situation, described in Keynesian economics, in which injections of cash into the private banking system by a central bank fail to decrease interest rates and hence make monetary policy ineffective. Thus interest rate will not decrease thus fail to make economic growth.