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Doubt Clearance Thread: UPSC 2021

"When in doubt, observe and ask questions. When certain, observe at length and ask many more questions."

Created this thread as a one stop solution for all members so that all the doubts wherein any conceptual clarification is required can be solved here. 

jack_Sparrow,curious_kidand122 otherslike this
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4.2k comments

@Cosmostic @priyochatterjee08434 that makes sense. I had not read the provisions in detail. Thank you

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@priyochatterjee08434 makes total sense now...I read it as a single statement. My bad. Thanks!!! 


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with cse 2020 interviews postponed, will there be any effect on cse 2021 prelims date ?
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Can someone explain how new moon is also a supermoon? 
correct ans is b. 



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Why Monetization of deficit is termed as non debt finance? As given in vison IAS pt

Isn't RBI is lending in this process? If yes then why is not a debt finance? 

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@Freakhoto i also didnt understand this, because at the end of the day, RBI is buying the primary bonds of the govt and printing fresh money to pay for these bonds, yet this is non debt. Leaving comment so that someone can solve this problem.


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@Freakhoto i also didnt understand this, because at the end of the day, RBI is buying the primary bonds of the govt and printing fresh money to pay for these bonds, yet this is non debt. Leaving comment so that someone can solve this problem.


So i am not the only sufferer 😂!! But every article I read didn't even mention..! 

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Does omo also requires printing of money? 

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Does omo also requires printing of money? 

It raises another question where does rbi gets the money to purchase G-Sec under omo operations! 


I know this sound going into the depth..! But i think this much depth is permissible to have a correct and full understanding of the system! 

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@Freakhoto It is just the way terms are defined. Debt financing includes borrowing from public or from other external source like IMF while monetization of deficit is termed as money financing or non debt finance(ironically government do have debt with RBI).
Also, for OMO RBI do print money but it is mainly to control inflation where RBI decides to print how much and at what rate or even purchase with the existing RBI funds without printing money.
While in case of monetization it prints money for financing the deficit of government where usually it is government which decides to borrow at very low interest rate creating more inflationary effect as compared to OMO.


D36M82,Loxodonta
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It is non-debt because it is a temporary support to treasury cash needs without future repayment obligation. https://www.thehindu.com/opinion/lead/whos-afraid-of-monetisation-of-the-deficit/article31782093.ece


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Monetisation of deficit is essentially the RBI printing money for the purpose of lending it to the govt , it is not an non-debt financing , there is a debt but that is issued at a lower interest rate. Generally all this is done in the primary market, If RBI does it in the secondary market , it is indirect monetisation and referred to OMO (because RBI is printing currency , but then buying at the prevailing market interest rates) and here vision is wrong. I had this doubt long back. 
oldrustyagain29523,
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Does omo also requires printing of money? 

It raises another question where does rbi gets the money to purchase G-Sec under omo operations! 


I know this sound going into the depth..! But i think this much depth is permissible to have a correct and full understanding of the system! 

for buying in OMO , its like ..you can go for printing the currency , if RBI wants to increase money supply ( they  would work as assests ) but then RBI can also not print money and buy if it doesnt want to increase money supply in the economy.

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@Freakhoto because in monetizing the deficit , government is just creating the money rather than buying it (bonds se) . Its just that it tends to balance the assets- liabilities equation and RBI gives the money to govt. 


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Can anyone Tell me Whats the issue of Andhra CM Writing to renegotiate with PPA Producers?
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How ELectricity Tarriff is set and What is role of Solar Energy Corporation in it?
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Q Upsc 2020

1. The jet stream occur in the Northern hemisphere only

2. Only some cyclone develop an eye

3. The temp inside the eye of a cyclone is nearly 10c lesser than that of the surrounding.

a)1only

b)2&3 only

c) 2only

d)1 and 3only

I just knew the first statement was wrong and 2nd was correct automatically after elimination.

but from where did the third statement come form 

I ended up marking b but correct answer is c

any book ? any logic ?

I just have read the NCERT



3.1k views

Q Upsc 2020

1. The jet stream occur in the Northern hemisphere only

2. Only some cyclone develop an eye

3. The temp inside the eye of a cyclone is nearly 10c lesser than that of the surrounding.

a)1only

b)2&3 only

c) 2only

d)1 and 3only

I just knew the first statement was wrong and 2nd was correct automatically after elimination.

but from where did the third statement come form 

I ended up marking b but correct answer is c

any book ? any logic ?

I just have read the NCERT



If the temperature inside the eye region is lower (by any degree, let alone 10), the pressure will have to be higher (than the rest of the cyclone). 

We know that the eye is the region of lowest pressure. So the eye must have the highest temperature of all parts of cyclone

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Economic survey, chapter 5, page 154.

"Need for system design in healthcare

5.11 Given these market failures, a free market where individual consumers purchase services from providers on their own while paying at the point of service leads to severely sub-optimal outcomes including demand that can be influenced and induced by suppliers, over-seeking of hospitalization and under-seeking of primary care/public health when compared to economically optimal levels, and catastrophic out-of-pocket spending in part due to the low preference for health insurance. Therefore,most well-functioning health systems are structured as oligopolies purchasing from oligopsonys instead of individual consumers purchasing from individual providers. The structure of the market has substantial implications for long term trajectory of the health system. Countries with more fragmented health systems tend to have lower performance as reflected in higher costs, lower efficiency, and poor quality. Therefore, in addition to providing healthcare services and financing healthcare, a key role for the government is to actively shape the structure of the healthcare market."


Doubts-

  1. Can someone please explain the underlines phrase?
  2. What does it mean by health systems structured as oligopolies purchasing from oligopsonies?
  3. Is there any such system existing anywhere in any country?
  4. Would not an oligopoly be determinantal to the interests of the free market by preventing new players to enter?
  5. Would this system not kill innovation?
Thanks in advance!
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