Official: SFG / RLG All Tests Discussions in one place
Hello All,
The Group usage here is a little cumbersome, so I am creating this thread to make sure that all questions with doubts stay in one place. Can someone push all the doubts and queries here? I will make this an announcement?
-Faceless, Anonymous "root"
w.r.t Test 38 Q 4 When Crowding out effect kicks in there is less money in the economy and hence the money lending institutions increase the lending rate resulting in higher interest payment by the private sector due to which there expenditure increases and thus their investment decreases.
The correct answer is option c which means there expenditure decreases.
So how is there expenditure reducing?
w.r.t Test 38 Q 4 When Crowding out effect kicks in there is less money in the economy and hence the money lending institutions increase the lending rate resulting in higher interest payment by the private sector due to which there expenditure increases and thus their investment decreases.
The correct answer is option c which means there expenditure decreases.
So how is there expenditure reducing?
crowding out happens when private sector is driven out due to excess government participation in a sector. Excess borrowing by government leaves less capital for private sector leading to less expenditure.
w.r.t Test 38 Q 4 When Crowding out effect kicks in there is less money in the economy and hence the money lending institutions increase the lending rate resulting in higher interest payment by the private sector due to which there expenditure increases and thus their investment decreases.
The correct answer is option c which means there expenditure decreases.
So how is there expenditure reducing?
crowding out happens when private sector is driven out due to excess government participation in a sector. Excess borrowing by government leaves less capital for private sector leading to less expenditure.
Am I Confusing the word Expenditure with investment or both are same?
bernoullitrials,w.r.t Test 38 Q 4 When Crowding out effect kicks in there is less money in the economy and hence the money lending institutions increase the lending rate resulting in higher interest payment by the private sector due to which there expenditure increases and thus their investment decreases.
The correct answer is option c which means there expenditure decreases.
So how is there expenditure reducing?
crowding out happens when private sector is driven out due to excess government participation in a sector. Excess borrowing by government leaves less capital for private sector leading to less expenditure.
Am I Confusing the word Expenditure with investment or both are same?
In the question I interpreted expenditure = investment spending.
w.r.t Test 38 Q 4 When Crowding out effect kicks in there is less money in the economy and hence the money lending institutions increase the lending rate resulting in higher interest payment by the private sector due to which there expenditure increases and thus their investment decreases.
The correct answer is option c which means there expenditure decreases.
So how is there expenditure reducing?
crowding out happens when private sector is driven out due to excess government participation in a sector. Excess borrowing by government leaves less capital for private sector leading to less expenditure.
Am I Confusing the word Expenditure with investment or both are same?
In the question I interpreted expenditure = investment spending.
@Himasree Ok but I believe both are different.
Investment is when you put your money in some product and expenditure is associated with the product when you already have it like petrol in a car.
Since Government pulls out money and less money is present so private companies won't do investment in new business because for that they need to borrow money which is now available at a higher lending rate due to crowding-out effect. Hence they decrease their investments.
Those who have to mandatorily do it because of some investments already done in the market will need to borrow it even though the lending rate is high which may increase their expenditure. Hence expenditure increases.
This is what I thought.
w.r.t Test 38 Q 4 When Crowding out effect kicks in there is less money in the economy and hence the money lending institutions increase the lending rate resulting in higher interest payment by the private sector due to which there expenditure increases and thus their investment decreases.
The correct answer is option c which means there expenditure decreases.
So how is there expenditure reducing?
Crowding out effect - The crowding-out effect is an economic theory arguing that rising public sector spending drives down or even eliminates private sector spending.
You are confusing the way government functions from the way private sector functions. The government can borrow money for expenditure as well as investment, on the other hand the private sector can undertake borrowing only for further investment.
A private entity can not be sustainable if its income is not higher than its expenditure. Thus when the private sector borrows money, it uses that money to expand its production capacity to generate further income only.
However, since crowding out effect leads to an increase in interest rates, the private sector will find it more difficult to undertake further investment decisions. Thus they would not indulge in the expansion of their production capacity, thereby reducing the private sector's expenditure which would have taken place had the interest rates been lower.
Q 33...managed exchange rate system..it is the central bank that intervenes to affect it and not the government of the economy..plz don’t say that central bank is also owned by the government. I know that but central bank has clearly assigned functions regarding managing the exchange rate system in managed rate system
PE14,STT isdirecttax?
Securities Transaction Tax (STT) is a type of financial transaction tax levied in India on transactions done on the domestic stock exchanges. The rates of STT are prescribed by the Central / Union Government through its Budget from time to time. In tax parlance, this is categorised as a direct tax.
SFG batch 2, test 42
Question number 24. Statement 1.
Bimbisara was not a disciple of Buddhism. "Bimbisara was contemporary to both Mahavira and gautam buddha. Both religions claim him as their supporters and devotee."
Quoted from TN board book
Also, does follower of Buddhism imply they were Budhha's disciples? The statement should be incorrect.
SFG BATCH 2 Test 42 Q 5
Statement 3:
3. Rigvedic Aryans had domesticated the horse whereas there is no evidence of Indus Valley people having been aware of this animal.
As per TN board book, it is actually not mentioned that Indus valley people are not aware of Horses.
(Pg No. 20)
As per wikipedia:https://en.wikipedia.org/wiki/Surkotada
Statement 3 must be wrong.Answer should be "A".
SFG BATCH 2 Test 42 Q 5
Statement 3:
3. Rigvedic Aryans had domesticated the horse whereas there is no evidence of Indus Valley people having been aware of this animal.
As per TN board book, it is actually not mentioned that Indus valley people are not aware of Horses.
(Pg No. 20)
As per wikipedia:https://en.wikipedia.org/wiki/Surkotada
Statement 3 must be wrong.Answer should be "A".
This is a PYQ. UPSC key says 1&3 are correct.
SFG test-42
Q-3, rituals were there in Yajurveda and Sacrifices were there in Atharvaveda
Q-7, 2nd Jain Council 513 A.D. or 526 A.D. so it is 6th century not 5th.
Q-14, Patliputra is on the confluence of Gandak and Ganga
Q-16 Domestication of animals started in Neolithic. ( A few associations may be seen later mesolithic age).
mhs11,SFG batch 2, test 42
Question number 24. Statement 1.
Bimbisara was not a disciple of Buddhism. "Bimbisara was contemporary to both Mahavira and gautam buddha. Both religions claim him as their supporters and devotee."
Quoted from TN board book
How did you come to this conclusion from one single statement? This is history, you need to refer to other sources. One single Google search or if you had read other NCERTs then it would have been easier for you.
King Bimbisara met the Buddha for the first time prior to the Buddha's enlightenment and later became an important disciple. Kings like Prasanajit of Kosala, Bimbisar, and Ajatshatru of Magadh accepted his Doctrines and became his disciples.
Test 45, Q47
Could someone elaborate on the statement that 'the founders of Buddhism and Jainism came from Republican states.' ?
The statement means that both Mahavira and Buddha belonged to the Mahajanpads/Jandapadas that were a republic. To break it down for you, Mahavira was from Vaishali ( Vajji/Vrajji Mahajanpada) and Buddha was born in a Shakya Kshatriya family in Lumbini near Kapilavastu. Shakyas of Kapilavastu was a tribal Republican territory.
abhilasha1811,
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