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UPSC Essentials brings to you its initiative of subject-wise quizzes. These quizzes are designed to help you revise some of the most important topics from the static part of the syllabus. Each day, we will cover one new subject. Attempt today’s subject quiz on Economy to check your progress. Come back tomorrow to solve the MCQs on International Relations. Don’t miss checking the answers and explanations at the end of the quiz.
With reference to the National Pension System (NPS), consider the following statements:
1. It is administered and regulated by Pension Fund Regulatory and Development Authority (PFRDA).
2. All citizens of India aged between 18 – 65 years can join NPS.
3. It is mandatorily applicable to all the Central Government employees.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
QUESTION 2
Consider the following statements about Web Portal UDGAM:
1. This portal has been developed for use by members of the public to facilitate and make it easier for them to search their unclaimed deposits across multiple banks in one place.
2. The user would be able to access the details of their unclaimed deposits in all the banks.
3. The portal will aid users to identify their unclaimed deposits/ accounts.
4. The portal was launched by the Reserve Bank of India.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) Only three
(d) All four
QUESTION 3
With reference to the liquidity, consider the following statements:
1. Liquidity in the banking system refers to readily available cash that banks need to meet short-term business and financial needs.
2. Abundant liquidity condition could lead to a rise in the government securities yields.
3. Tight liquidity can pose risks to price stability.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
QUESTION 4
With reference to the revenue expenditure, consider the following statements:
1. It is incurred to maintain the earning capacity.
2. It benefits more than one accounting year.
3. It is incurred on the day-to-day conduct of business.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
QUESTION 5
Consider the following crops:
1. Wheat
2. Sunflower
3. Barley
4. Coffee
How many of the above crops are covered under the Minimum Support Price?
(a) Only one
(b) Only two
(c) Only three
(d) All four
ANSWERS TO THE MCQs
1. (b)
FYI:
— Some states, such as Himachal Pradesh, Chhattisgarh are facing this issue as they have a large number of employees whose total years of service is around 10 years, an issue that has also been raised in the discussions of the Centre appointed committee to look into improving the National Pension System (NPS) for government employees.
— The National Pension System (NPS) is being administered and regulated by Pension Fund Regulatory and Development Authority (PFRDA) set up under PFRDA Act, 2013. Hence, statement 1 is correct.
— NPS is a market linked, defined contribution product. Under NPS, a unique Permanent Retirement Account Number (PRAN) is generated and maintained by the Central Recordkeeping Agency (CRA) for individual subscriber.
— This scheme includes Central and State Government Employees. NPS is mandatorily applicable to Central Government employees (except Armed Forces) recruited on or after 01.01.2004. Hence, statement 3 is not correct.
— Companies can adopt NPS for their employees with contribution rates as per the employment conditions.
— The All Citizens Model of the NPS allows all citizens of India aged between 18 – 65 years to join NPS on voluntary basis. Hence, statement 2 is correct.
Therefore, option (b) is the correct answer.
(Other Source: financialservices.gov.in)
2. (c)
FYI:
— The Governor of the Reserve Bank of India launched a Centralised Web Portal, UDGAM (Unclaimed Deposits – Gateway to Access Information). Hence, statement 4 is correct.
— This portal has been developed by RBI for use by members of public to facilitate and make it easier for them to search their unclaimed deposits across multiple banks in one place. Hence, statement 1 is correct.
— The launch of the web portal will aid users to identify their unclaimed deposits/ accounts and enable them to either claim the deposit amount or make their deposit accounts operative at their respective banks. Reserve Bank Information Technology Pvt Ltd (ReBIT), Indian Financial Technology & Allied Services (IFTAS) and participating banks have collaborated on developing the portal. Hence, statement 3 is correct.
— The users would be able to access the details of their unclaimed deposits in respect of seven banks presently available on the portal. These banks are State Bank of India, Punjab National Bank, Central Bank of India, Dhanlaxmi Bank Ltd., South Indian Bank Ltd., DBS Bank India Ltd. and Citibank N.A. Hence, statement 2 is not correct.
Therefore, option (c) is the correct answer.
(Other Source: http://www.rbi.org.in)
3. (a)
FYI:
— Liquidity in the banking system refers to readily available cash that banks need to meet short-term business and financial needs. Hence, statement 1 is correct.
— On any given day, the banking system’s liquidity is said to be in deficit if it is a net borrower from the RBI under the Liquidity Adjustment Facility (LAF), and it is said to be in surplus if it is a net lender to the RBI.
— The LAF refers to the RBI’s operations through which it injects or absorbs liquidity into or from the banking system.
— The deficit in the liquidity situation has been caused by an uptick in the bank credit, advance tax payments by corporates, intervention of the RBI into the forex market, and also incremental deposit growth not keeping pace with credit demand.
— A tight liquidity condition could lead to a rise in the government securities yields and subsequently lead to a rise in interest rates for consumers too. Hence, statement 2 is not correct.
— The RBI announced I-CRR as a temporary measure to absorb excess liquidity from the banking system. The level of surplus liquidity in the system surged because of the return of Rs 2,000 banknotes to the banking system, RBI’s surplus transfer to the government, pick up in government spending and capital inflows.
— Excess liquidity can pose a risk to both price stability and financial stability. As a result, effective liquidity management necessitates continuous assessment of the level of surplus liquidity so that additional measures can be taken as needed to impound the element of excess liquidity. Hence, statement 3 is not correct.
Therefore, option (a) is the correct answer.
4. (b)
FYI:
— Revenue Expenditure is incurred to maintain the earning capacity. Hence, statement 1 is correct.
— It is incurred on the day-to-day conduct of business. It is a recurring expenditure. Hence, statement 3 is correct.
— It normally benefits one accounting year. Hence, statement 2 is not correct.
— Revenue expenditure (subject to adjustment for outstanding and prepaid amount) is transferred to trading and profit and loss accounts.
Therefore, option (b) is the correct answer.
(Other Source: ncert.nic.in)
5. (c)
FYI:
— Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.
— The MSPs are announced by the Union government and as such, it is the government’s decision. But the government largely bases its decision on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
— The minimum support prices are announced by the Government of India at the beginning of the sowing season for certain crops.
— During each cropping season, the government announces minimum support prices for 23 crops.
— Crops covered by MSPs include:
(i) 7 types of cereals (paddy, wheat, maize, bajra, jowar, ragi and barley).
(ii) 5 types of pulses (chana, arhar/tur, urad, moong and masur).
(iii) 7 oilseeds (rapeseed-mustard, groundnut, soyabean, sunflower, sesamum, safflower, nigerseed).
(iv) 4 commercial crops (cotton, sugarcane, copra, raw jute).
Therefore, option (c) is the correct answer.
(Other Source: vikaspedia.in)
Previous Daily Subject-Wise-Quiz
Daily subject-wise quiz — Polity and Governance (Week 35)
Daily Subject-wise quiz — History, Culture, and Social Issues (Week 35)
Daily subject-wise quiz — Environment, Geography, Science and Technology (Week 35)
Daily subject-wise quiz — Economy (Week 34)
Daily subject-wise quiz – International Relations (Week 34)
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