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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

@Apu_n_42 i think the answer should be cabinet mission because
Cripps mission recommended CA which would consist of both elected and nominated (by princely states)
Cabinet mission recommended election by proportional representation by single transferable vote ( British+indian for both)
One vote per ten lkh....this was the recommendation


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Apu_n_42said

Q.9) The suggestion for framing of the Constitution of India by an elected Constituent Assembly was made by
a) Simon Commissions
b) Government of India Act, 1935
c) Cripps Mission
d) Cabinet Mission

IAS baba day 1 question 9. The answer key says cabinet mission.  as per cripps proposal the Constitution was to be framed by an elected by constituent assembly. But the proposal was rejected by Muslim league. Then CA was constituted in nov 1946 as per scheme formulated by under cabinet mission.
but then since the word suggestion is used in the Q shouldn’t the answer be cripps mission?
 

Although there was absence of provision for elected members from princely states in cabinet mission, the phrase 'partly elected' was used in proposal of cripps mission, but not in cabinet mission. So, answer should be 'd'.


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ArchAngel96said

1. COM are collectively responsible to the Parliament

2. COM are collectively responsible to the Lok Sabha


I usually mark 2 only and it is correct but can someone explain me this statement in regard to the question.

The COM is collectively responsible to the Parliament is general and Lok Sabha in particular.


The CoM is only responsible to Lok Sabha and not to Parliament as a whole. The reasoning is that Rajya Sabha is representative of the states while the LS is representative of the people. The CoM or the govt. shouldn't have to be responsible towards the state, but it should be responsible towards the people instead.

ArchAngel96,
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ArchAngel96said

1. COM are collectively responsible to the Parliament

2. COM are collectively responsible to the Lok Sabha


I usually mark 2 only and it is correct but can someone explain me this statement in regard to the question.

The COM is collectively responsible to the Parliament is general and Lok Sabha in particular.


 Marking statement 1 correct implies COM are collectively responsible to Rajya Sabha also, which is not true.

Suppose animals = Parliament, dogs = Lok Sabha =>All dogs are animals but all animals are not dogs.

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Please explain?

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@Steph_Curry A- Because it will reduce the reserve requirement of the banks and allow them to lend more in the open market. Money multiplier is inversely proportional to reserve requirement. 


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@necromancer the question asks about what would reduce money multiplier and what you are saying would increase it, moreover, it's not like banks can't lend under PSL, it's not a reserve. 


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Steph_Currysaid


Please explain?

is it c


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Steph_Currysaid


Please explain?

I think 'd'. limiting number of bank account =>likely to decrease quantity of loans =>A decrease in the quantity of loans also means fewer deposits in other banks, and other banks reducing their lending as well =>likely to reduce money multiplier.


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@priyochatterjee08434 Yes, correct ans is 'd'


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I think option D as correct answer assumes that whatever is not going out under PSL is being loaned out the usual way.

Otherwise answer could be A as well. Only when the bank's money is loaned out will the money multiplier change. Lending under PSL goes down >amount loaned out goes down >money multiplier goes down. 

chamomile,
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@thelastcoyote if they lower PSL norms that doesn't mean amount loaned would go down, it simply means amount loans to those sections would go down. PSL is a qualitative tool, it doesn't affect the quantity of amount loans


thelastcoyote,
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What is the latest edition of spectrum ?
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Not A , because reducing PSL targets will only transfer loans from Priority sectors to private sector. So quantum of loans may or may not change. 

B is probable, but not sure as cutting direct taxes , increases disposable income , which increase money circulation in the household economy but also decrease govt income which would otherwise be spent in public expenditure (which causes big a multiplier effect) 

Not C , as if RBI reduces profit , more money to gov  to spend on Capital Expenditure / Public Exp , which are big sources of money multipliers in economy 

D is again contentious , because number of bank accounts doesn't affect total money in economy as an individual would still have a given amount to be deposited , which even if deposited in multiple banks , will still have certain % of it kept at CRR SLR by that bank , so as a whole the aggregate  loaned amount will be the same . 

So unless u are considering the incremental money generated due to different SLR rates amongst some types of banks , D can't be the answer. 



So B looks more appropriate amongst all four. 

Ur thoughts ?


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Steph_Currysaid


Please explain?

I think it's D since money multiplication depends on banks lending money to new or existing ventures from the deposits they hold.


For a better clarification on the concept: Multiplier effect and the money supply (video) | Khan Academy

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@IASVk  I think it's D, since its talking about money multiplier, which as an economic concept is a function of either reserve ratio or people's saving habits. So if I had to mark I would say it's D


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CSF is to be maintained outside consolidated and public funds of the state acc to mrunal. Vision tests/pt 365 says other wise. Please explain. 

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palebluedotsaid

CSF is to be maintained outside consolidated and public funds of the state acc to mrunal. Vision tests/pt 365 says other wise. Please explain. 

In light of the suggestions of the Twelfth Finance Commission, credits from banks, and liabilities due to the National Small Saving fund must also be included in the amortization of loans. The fund has to be financed outside the consolidated fund of the states and public account should only be used for redemption of loans.

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@priyochatterjee08434  it means the fund is outside of public account of the state/s.


The answer for above question is C. It must be wrong.  
Thanks anyways :) 


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@palebluedot(The fund has to be financed outside the consolidated fund of the states) and ( public account should only be used for redemption of loans)are two different things.I think 'c' is right ans. In the following article -http://www.legalserviceindia.com/legal/article-2730-explained-consolidated-sinking-fund.html
it is written - During 2016-17 the State government made an arrangement for decrease or shirking of obligation and appropriated to Sinking Fund under Public Accounts by book transfer.


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