Indian Economy Quiz: Day 15

Answer: (c)

• Green bonds are financial instruments that generate proceeds for the investments in environmentally-suitable and climate friendly projects. These instruments have lower capital cost than regular bonds.
• Government announced in Union Budget 2022-23 that it will issue its maiden sovereign green bonds in the present financial year.
• The government announced that it would auction Rs.16,000 worth of green bonds during the second half of FY2023.

Answer: (b)

• Self Reliant India (SRI) Fund is Rs.10,000 crore fund launched by the Indian Government.
• It is a SEBI-registered category-II Alternative Investment Fund (AIF) that was launched by the Indian Government to provide growth capital to MSME Sector.
• The Ministry of New & Renewable Energy announced recently that the National Bio Energy Programme will be implemented until 2025-26
• Innovations For You’ is a Coffee Table Book series feature success stories of startups that are supported through the 3 flagship programmes implemented under the Atal Innovation Mission – Atal Incubation Centres, Atal Community Innovation Centres and Atal New India Challenges

Answer: (c)

• An angel investor is usually a high-net-worth individual who funds startups at the early stages, often with their own money.
• Angel investing is often the primary source of funding for many startups who find it more appealing than other, more predatory, forms of funding.
• The support that angel investors provide startups fosters innovation which translates into economic growth.
• These types of investments are risky and usually do not represent more than 10% of the angel investor’s portfolio.

Answer: (b)

Answer: (c)

What is an Alternate Investment Fund

Alternative Investment Fund or AIF means any fund established or incorporated in India which is a privately pooled investment vehicle which collects funds from sophisticated investors, whether Indian or foreign, for investing it in accordance with a defined investment policy for the benefit of its investors.

Applicants can seek registration as an AIF in one of the 3 categories-

1.Category I AIFs- invest in start-up or early stage ventures

2.Category II AIFs- which do not fall in Category I and III and which do not undertake borrowing other than to meet day-to-day operational requirements (Various types of funds such as real estate funds, private equity funds (PE funds), funds for distressed assets, etc.)

3.Category III AIFs- which employ diverse or complex trading strategies

Answer: (c)

• India Post Payments Bank (IPPB) comes under the aegis of the Department of Posts, Ministry of Communication.
• It is fully owned by the central government.
• This bank was launched on September 1, 2018 to become the most accessible, affordable and trusted bank for common man in India.
• The main goal of the IPPB is to eliminate barriers for the unbanked and under-banked and reach the last mile connectivity by making use of a network of over 160,000 post offices and 400,000 postal employees.
• It aims to enable paperless, cashless and presence-less banking accessible in a simple and secured manner at the customers’ doorstep via a CBS-integrated smartphone and biometric device.

Answer: (d)

• A single income tax return (ITR) form was proposed for all taxpayers.
• The draft of the proposed form was unveiled recently by the Central Board of Direct Taxes (CBDT) to receive public inputs until December 15.
• The common ITR form can be used by all taxpayers except trusts and non-profits.
• It merges all existing ITR forms except ITR-7.
• Under this new format, taxpayers will be given the option to either use the common form or existing forms ITR-1 or ITR-4.
• However, other old tax forms (ITR-2, ITR-3, ITR-5 and ITR-6) are not part of this new format and their users only have the option of using the common form.

Answer: (b)

• RBIH or Reserve Bank Innovation Hub is a Section 8 company under the 2013 Companies Act, set up in March 2022, with an initial capital of ₹100 crores.
• It is a wholly-owned subsidiary of the central bank.
• It has an independent board headed by Kris Gopalakrishnan.
• It also includes members from academia and industry.
• The key objective of the hub is to boost financial inclusion and financial innovation.

Answer: (d)

• The World Bank recently released the October 2022 edition of the Commodity Markets Outlook.
• The projections of commodity prices are subject to numerous risks.
• Energy markets are facing significant supply-related distress due to concerns regarding their availability during the winter season.

Answer: (b)

Answer: (c)

• External commercial borrowing (ECB) is basically a loan availed by an Indian entity from a non-resident lender.
• They are used widely in India to facilitate access to foreign money by Indian corporations and PSUs (public sector undertakings).
• Most of these loans are provided by foreign commercial banks and other institutions

Answer: (d)

Answer: (c)

Answer: (d)

Answer: (c)

• Money market is the mechanism through which short term funds are loaned and borrowed.
• Capital Market is a part of financial system which is concerned with raising capital by dealing in shares, bonds and other long term investments.

Answer: (d)

The Current Account:

• It includes all international trade transactions of goods and services, international service transactions (i.e. tourism, transportation and royalty fees) and international unilateral transfers (i.e. gifts and foreign aid).

The Capital Account:

• Financial transactions consisting of direct investment and purchases of interest- bearing financial instruments, non- interest bearing demand deposits and gold fall under the capital account

Answer: (d)

Answer: (c)

The primary difference between Laissez-Faire and Keynesian Economics is that the latter greatly advocates for government intervention measures in an economy.

On the other hand, Laissez-Faire Economics advocates for a free market with minimum interference from the authorities.

Answer: (a)

• Nobel laureate Simon Kuznets first introduced the concept of national income.

Answer: (d)

Stock refers to a quantity of a commodity measured at a point of time.

In macro economics, money supply, unemployment level, foreign exchange reserves, capital etc. are examples of stock variables.

Flow variables are measured over a period of time.

National Income, imports, exports, consumption, production, investment etc are examples of flow variables.