Q.1) Pradhan Mantri Ujjwala Yojana is a scheme for providing Free LPG connections to Women from BPL Households. with this regard, consider the following statements.
1. This will provide free LPG cylinders along with kerosene to women free of cost.
2. Identification of the BPL families will be done with the help of NSSO only.
3. It was approved by committee on petroleum and natural gas headed by PM.
Select the correct statement using the codes given below.
a) 1 and 2 Only
b) 2 and 3 Only
c) 1 only
d) None of them
Ans-[D]
Explanation– The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has approved Pradhan Mantri Ujjwala Yojana – Scheme for Providing only Free LPG connections to Women from BPL Households. The identification of eligible BPL families will be made in consultation with the State Governments and the Union Territories. This is the first time in the history of the country that the Ministry of Petroleum and Natural Gas would implement a welfare scheme benefiting crores of women belonging to the poorest households.
Q.2) Co-operative banks is retail end commercial banking organized on a cooperative basis. Which this respect, consider the following statements:
1. Co-operative banks are not subject to CRR and SLR.
2. Co-op banks are first govt sponsored and govt supported financial agency of India.
Select the correct statement using the codes given below.
a) 1 Only
b) 2 Only
c) Both 1 and 2
d) Neither 1 nor 2
Ans-[B]
Explanation- Cooperative banks are subjected to CRR and SLR. Statement 1 is wrong. Statement 2 is right as Co-operative banks are perhaps the first government sponsored, government-supported, and government-subsidised financial agency in India. They get financial and other help from the Reserve Bank of India, NABARD, central government and state governments. They constitute the “most favoured” banking sector with risk of nationalisation.
Q.3) Full convertibility of Rupee was advocated by Tarapore committee as
1. it will help in promotion of exports
2. it will help India get secure loan from world financial market.
select the correct answer using the codes given below.
a) 1 Only
b) 2 Only
c) Both 1 and 2
d) Neither 1 nor 2
Ans-[A]
Explanation– The Tarapore committee was set up by the Reserve Bank of India (RBI) in 1997 to go into the issue of Capital Account Convertibility. It is defined it as the freedom to convert local financial assets into foreign financial assets and vice versa at market determined rates of exchange. Current account convertibility allows free inflows and outflows for all purposes other than for capital purposes such as investments and loans. In other words, it allows residents to make and receive trade-related payments — receive dollars (or any other foreign currency) for export of goods and services and pay dollars for import of goods and services, make sundry remittances, access foreign currency for travel, studies abroad, medical treatment and gifts etc. Statement 1 is right.
Statement 2 is wrong as secure loan from financial market doesn’t necessarily demand full capital account convertibility.
Q.4) Which of the following is correct with respect to Purchasing power parity and exchange rate?
a) Market exchange rate are used to compare international income
b) There is no difference between market exchange rate and PPP
c) PPP are unstable as compared to market exchange rate
d) PPP is used to determine relative value of currencies estimating amount of adjustment needed on exchange rate.
Ans-[D]
Explanation- As per Investopedia, Purchasing power parity (PPP) is a theory in economics that approximates the total adjustment that must be made on the currency exchange rate between countries that allows the exchange to be equal to the purchasing power of each country’s currency. It is PPP which is used to compare international incomes. Market exchange rate are highly volatile as compared to PPP. Option (d) is correct thus as it talks about factual economic concept.
Q.5) National Income includes:
1. FDI
2. Indirect taxes
3. External commercial Borrowings
Select the correct answer using the codes given below.
a) 2 and 3 only
b) 1 and 3 only
c) 1 and 2 only
d) 1, 2 and 3
Ans-[D]
Explanation- All are included under National income as National income= Consumption+Investment+government spending. Government spending includes taxes and sources of it.
Q.6) Consider the following statements:
1. Minimum investment in government securities is Rs 100
2. They can be held by individuals only.
Which of the above statements is/are not correct?
a) 1 Only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Ans-[C]
Explanation-Both statements are wrong. Government securities comprise dated securities issued by the Government of India and state governments. Reserve Bank of India manages and services these securities through its public debt offices located in various places as an agent of the Government. Minimum investment is Rs 10000 and in multiples of 10000 rupees. They can be held by anyone from individual to firm to company etc
Q.7) Enforcement directorate who investigates various economic offence works under:
a) It is an independent non constitutional body.
b) It works under Ministry of Commerce and industry
c) It works under Ministry of finance
d) It works under mandate of RBI.
Ans-[C]
Q.8) A policy of sterilization means
a) Identifying sources of black marketing and hoarding to curb increased prices of goods
b) Withdrawing equivalent amount of domestic currency from circulation to prevent inflation due to rise in forex
c) Control on imports to prevent domestic industry
d) None of the above
Ans-[B]
Explanation – Option (b) is right. It is basic definition.
Q.9) Which of the following statement is correct regarding Rashtriya Mahila Kosh?
a) It works as a micro credit agency exclusively
b) It provides credit for service sector industries only which are managed by widowed women
c) It provides lending to intermediate micro-credit org. which lends to women
d) None of them
Ans – [C]
Explanation – Rashtriya Mahila Kosh (RMK), established in 1993 is a national level organization as an autonomous body under the aegis of the Ministry of Women and Child Development, for socio-economic empowerment of women.
The aims & objectives of Rashtriya Mahila Kosh are as follows:-
1. Socio-economic empowerment through multi-pronged effort.
2. Providing micro-credit facilities.
3. Capacity building of IMOs and women beneficiaries.
4. To promote or undertake activities for the promotion of or to provide credit as an instrument of socio- economic change and development through the provision of a package of financial and social development services for the development of women.
5. To promote and support schemes for improvement of facilities for credit for women:-
a) for sustenance of their existing employment
b) for generation of further employment
c) for asset creation
d) for asset redemption and
e) for tiding over consumption, social and contingent needs
6. To demonstrate and replicate participatory approaches in the organization of women’s groups for effective utilization of credit resources leading to self-reliance.
7. To promote and support experiments in the voluntary and formal sector using innovative methodologies to reach poor women with credit and other social services.
8. To sensitize existing government delivery mechanisms and increase the visibility of poor women as a vital and viable clientele with the conventional institutions.
9. To promote research, study, documentation and analysis, including provision of fellowships and scholarships, of credit and its management and of successful experiences at various levels in order to promote replication and dissemination of successful credit extension and management methodologies.
10. To promote the federation and net working of women’s organisations for shaping & exchange of experience and information and to develop skills in response management & social mobilization.
11. To promote and support the expansion of entrepreneurship skills among women.
12. To cooperate with and secure the cooperation of the Central Government, State Governments and Union Territory Administration, credit institutions, industrial and commercial organisations and non-governmental, voluntary and other organisations and bodies in promoting the objects of the Kosh.
13. To accept subscriptions, grants, contributions, donations, loans, guarantees, gifts, bequests etc. on such terms and obligations not inconsistent with the aims and objects of the Kosh, and
14. To do all such lawful acts & things as may be necessary or conducive for furthering the objects of the Kosh.
Q.10) Consider the following statements:
1. Full capital account convertibility is very dangerous during economic crisis
2. To go for full convertibility of capital account India should lower down its fiscal deficit.
Select the correct statement using the codes given below.
a) 1 Only
b) 2 Only
c) Both 1 and 2
d) Neither 1 nor 2
Ans-[C]
Explanation– Both statements are correct. As during economic crisis lot of capital outflow may occur which may throw nation into severe crisis. Lowering down fiscal deficit and inflation improves economic health and thus is obvious statement.
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