Indian Economy Quiz: Day 46

December 22, 2022

Which of the following is/are correct regarding Sovereign Gold Bonds?
1 Gold bonds are government securities denominated in grams of gold.
2. These bonds offer a superior alternative to holding gold in physical form.
3. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity.
4. The bond is issued by the RBI on behalf of the government.
Select the correct answer using the codes given below:

(A) 1, 2 and 4 only
(B) 2, 3 and 4 only
(C) 1, 2 and 3 only
(D) 1, 2, 3 and 4

Show Answer

Answer: (d)

Gold bonds are government securities denominated in grams of gold.
They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity.
The bond is issued by the RBI on behalf of the government.
These bonds offer a superior alternative to holding gold in physical form.
The risks and costs of storage are eliminated.
Investors are assured of the market value of gold at the time of maturity and periodical interest.
It’s free from issues like making charges and purity in the case of gold in jewellery form.
The bonds are held in the books of the RBI or in demat form eliminating risk of loss.
While the tenor of bonds is eight years, it can be redeemed after five years.

How many of the below given pair(s) is/are correctly matched?
1. M1 Includes demand deposit in all banks
2. M3 M2 + Time deposits
3. M2 Includes post office savings

(A) 1 pair only
(B) 2 pairs only
(C) All the pairs
(D) None of the pairs

Show Answer

Answer: (b)

M3= M1+time and NOT M3=M2+time

Four countries have shown interest in using India’s trade settlement mechanism. The mechanism is a way of using rupees instead of dollars and other currencies for international transactions. The mechanism has already been used by which country?

(A) Sudan
(B) Indonesia
(C) Saudi Arabia
(D) Russia

Show Answer

Answer: (d)

Tajikistan, Cuba, Luxembourg and Sudan have begun talking to India about using the mechanism, according to two sources and an official document reviewed by Reuters.
It has already been used by Russia following the imposition of sanctions on Moscow over the Ukraine war.
The Reserve Bank of India (RBI) set up the mechanism in July 2022.

The Old Pension Scheme guarantees pension at what percentage of the last drawn basic pay?

(A) 45%
(B) 55%
(C) 50%
(D) 40%

Show Answer

Answer: (c)

In the OPS, upon retirement, employees receive 50 percent of their last drawn basic pay plus dearness allowance or their average earnings in the last ten months of service, whichever is more advantageous to them.
A ten-year service requirement should be met by the employee.
Under OPS, employees are not required to contribute to their pensions. An incentive for taking on government employment was the guarantee of a pension post-retirement and a family pension. Retirement corpus building was not pressured. OPS has become unsustainable for governments due to rises in life expectancy.

Which of the following statements is/are correct regarding Indian Railway Catering and Tourism Corporation (IRCTC)?
1. It is wholly owned by the Government of India.
2. It is a Mini Ratna Central Public Sector Enterprise under Ministry of Railways.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

Show Answer

Answer: (b)

The government holds 67.40% stake in IRCTC.
Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) is a “Mini Ratna (Category-I)” Central Public Sector Enterprise under Ministry of Railways, Government of India.
IRCTC was incorporated on 27th September, 1999 as an extended arm of the Indian Railways to upgrade, professionalize and manage the catering and hospitality services at stations, on trains and other locations and to promote domestic and international tourism through development of budget hotels, special tour packages, information & commercial publicity and global reservation systems.

What does the term ‘doxxing’ mean in digital parlance?

(A) Disclosing a person’s personal information online
(B) Using illegally obtained personal information to blackmail someone online
(C) Online faking or theft of identity
(D) Redirecting a website’s traffic to a fake version of it

Show Answer

Answer: (a)

“Doxxing” refers to disclosing online someone’s identity, address, or other personal details.

Consider the following statements:
1. India aims to deploy 50,000 e-buses in tranches over the next four to five years at an estimated cost of one trillion rupees.
2. Indian banks are reluctant to lend to electric-bus makers for supply to state transport operators.
Which of the statements give above is/are correct?

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

Show Answer

Answer: (c)

Indian banks are reluctant to lend to electric-bus makers for supply to ailing state transport operators over concerns on recovery of dues, hurting the country’s goal of curbing vehicle emissions, said banking, industry, and government sources told Reuters.
The lack of funding is limiting the ability of e-bus makers to participate in federal government tenders to supply to states, the sources told Reuters, threatening to slow the electrification of major public transport now reliant on diesel.
India wants to deploy 50,000 e-buses in tranches over the next four to five years at an estimated cost of one trillion rupees ($12 billion).
As of now, 6,740 e-buses have been approved by the federal government that provides incentives for related infrastructure, of which nearly a third have been deployed in states.

Which of the following is/are correct?
1 The State Governments in India have less fiscal consolidation to do than the central government.
2. In recent times, the central government capital expenditure has risen but state capital expenditure has contracted.
Select the answer using the codes below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

Show Answer

Answer: (c)

The central government capex has risen but state capex has contracted.
Making a commendable choice, the central government used both its tax bounty as well as its ability to borrow more at a time when banking sector liquidity was loose to raise capex spending, which rose by 1.2 per cent of GDP between 2019-20 and 2021-22.

This plan aimed at accelerating food grain production, increasing employment opportunities & raising productivity with focus on ‘food, work & productivity’. The plan was very successful as the economy recorded 6% growth rate against the targeted 5%. Which plan is being referred to here?

(A) Seventh Five year Plan
(B) Eleventh Five year Plan
(C) Tenth Five year Plan
(D) Sixth Five year Plan

Show Answer

Answer: (a)

With reference to Indian economy, consider the following?
1. Bank rate
2. Open market operations
3. Public debt
4. Public revenue
Which of the above is/are the component(s) of Monetary Policy?

(A) 1 only
(B) 2, 3 and 4
(C) 1 and 2
(D) 1, 3 and 4

Show Answer

Answer: (c)

Which of the following statement(s) is/are correct regarding Money multiplier?
1. It is the ratio of Broad money (M3) and Reserve Money (M0).
2. When Reserve money increases, Broad money will also increase.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

Show Answer

Answer: (c)

Rangarajan Committee was related to which of the following?

(A) Insurance reform
(B) Small-scale industries
(C) Disinvestment
(D) None of these

Show Answer

Answer: (c)

Workers temporarily unemployed but who normally find jobs quickly are called

(A) Frictionally unemployed
(B) Cyclically unemployed
(C) Seasonally unemployed
(D) Structurally unemployed

Show Answer

Answer: (a)

Consider the following statements regarding Non-Banking Financial Companies :
1 NBFCs are regulated under Companies Act 2013.
2. They are not required to maintain the reserve ratios unlike commercial banks.
Select the correct statement(s) using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2

Show Answer

Answer: (c)

Consider the following statements:
1 India was one of the founder members of General Agreement on Trade and Tariffs.
2. The Uruguay round of GATT led to the creation of WTO.
Select the correct statement(s) using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) None of the above

Show Answer

Answer: (c)

GATT was signed by 23 countries in 1947.
India was one of the founder members of GATT.
GATT’s primary purpose was to increase International Trade by reducing various tariffs, quotas and subsidies while maintaining meaningful regulations.

Rounds of GATT

First in Geneva (Switzerland) (1947)
Second in Annecy (France) in 1949
Third in Torquay (UK) in 1950 – 51
Fourth, fifth, and Sixth in Geneva (Switzerland) in 1956, 1960-61, 1964 -67.
Seventh in Tokyo (Japan) in 1973 – 79
Eighth and final round at Punta del Este (Uruguay) in 1986 – 1994, known as ‘Uruguay Round’.