Poverty, Planning, Finance and Economic/Social Development (Part-II)

Total Questions: 50

31. With reference to inflation in India, which of the following statements is correct? [2015-1]

(a) Controlling the inflation in India is the responsibility of the Government of India only
(b) The Reserve Bank of India has no role in controlling the inflation
(c) Decreased money circulation helps in controlling the inflation
(d) Increased money

Correct Answer: (c) Decreased money circulation helps in controlling the inflation

Solution:When inflation becomes very high, the RBI decreases supply of money (to check inflation) by adopting tight monetary policy. Decreasing the money circulation decreases the demand of goods and services, which helps in controlling the inflation. It is mainly effective in case of demand pull inflation.

32. There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit? [2015-1]

1. Reducing revenue expenditure

2. Introducing new welfare schemes

3. Rationalizing subsidies

4. Expanding industries

Select the correct answer using the code given below.

(a) 1 & 3 only
(b) 2 & 3 only
(c) 1 only
(d) 1, 2, 3 & 4

Correct Answer: (a) 1 & 3 only

Solution:To reduce the budget deficit, the government has to increase income and reduce Expenditure. Introducing new welfare schemes and Expanding industries will increase the government expenditure.

33. The Fair and Remunerative Price (FRP) of sugarcane is approved by the [2015-1]

(a) Cabinet Committee on Economic Affairs
(b) Commission for Agricultural Costs and Prices
(c) Directorate of Marketing and Inspection, Ministry of Agriculture
(d) Agricultural Produce Market Committee

Correct Answer: (a) Cabinet Committee on Economic Affairs

Solution:The Fair and Remunerative Price (FRP) of sugarcane is approved by Cabinet Committee on Economic Affairs.

34. 'Pradhan Mantri Jan-Dhan Yojana' has been launched for : [2015-1]

(a) providing housing loan to poor people at cheaper interest rates
(b) promoting women's Self-Help Groups in backward areas
(c) promoting financial inclusion in the country
(d) providing financial help to the marginalized communities

Correct Answer: (c) promoting financial inclusion in the country

Solution:Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.

35. With reference to the Fourteenth Finance Commission, which of the following statements is/are correct? [2015-1]

1. It has increased the share of States in the central divisible pool from 32 percent to 42 percent.

2. It has made recommendations concerning sector-specific grants.

Select the correct answer using the code given below.

(a) 1 only
(b) 2 only
(c) Both 1 & 2
(d) Neither 1 nor 2

Correct Answer: (a) 1 only

Solution:Union Government accepted the 14th Finance Commission's recommendation to devolve an unprecedented 42 per cent of the divisible pool to states during 20015-16 to 2019-20, against 32 per cent suggested by the previous commission.

36. Convertibility of rupee implies [2015-1]

(a) being able to convert rupee notes into gold
(b) allowing the value of rupee to be fixed by market forces
(c) freely permitting the conversion of rupee to other currencies and vice versa
(d) developing an international market for currencies in India

Correct Answer: (c) freely permitting the conversion of rupee to other currencies and vice versa

Solution:Convertibility of rupee implies freely permitting the conversion of rupee to other currencies and vice versa. Currency Convertibility is the ease with which a country's currency can be converted into gold or another currency.

37. The Government of India has established NITI Aayog to replace the : [2015-1]

(a) Human Rights Commission
(b) Finance Commission
(c) Law Commission
(d) Planning Commission

Correct Answer: (d) Planning Commission

Solution:The Government of India has established NITI Aayog to replace the Planning Commission. The Union Government of India announced formation of NITI Aayog on 1 January 2015 and the first meeting of NITI Aayog was held on 8 February 2015.

38. With reference to 'Financial Stability and Development Council', consider the following statements: [2016-1]

Council', consider the following statements:

1. It is an organ of NITI Aayog.

2. It is headed by the Union Finance Minister.

3. It monitors macroprudential supervision of the economy.

Which of the statements given above is/are correct?

(a) 1 & 2 only
(b) 3 only
(c) 2 & 3 only
(d) 1, 2 & 3

Correct Answer: (c) 2 & 3 only

Solution:(i) Financial Stability and Development Council is an apex-level body constituted by the government of India. The idea to create such a super regulatory body was first mooted by the Raghuram Rajan Committee in 2008. Finally in 2010, the then Finance Minister of India, Pranab Mukherjee, decided to set up such an autonomous body dealing with macro prudential and financial regularities in the entire financial sector of India. (ii) It falls under Dep. Of economic affairs and FM is the chairman. So, 1 is wrong and 2 is right. By elimination, we are left with answer "c".

39. Regarding "Atal Pension Yojana', which of the following statements is/are correct? [2016-1]

1. It is a minimum guaranteed pension scheme mainly targeted at unorganized sector workers.

2. Only one member of a family can join the scheme.

3. Same amount of pension is guaranteed for the spouse for life after subscriber's death

Select the correct answer using the code given below.

(a) 1 only
(b) 2 & 3 only
(c) 1 & 3 only
(d) 1, 2 & 3

Correct Answer: (c) 1 & 3 only

Solution:There is no restriction as such that only one member of a family can join the scheme.

40. With reference to 'Stand up India scheme', which of the following statement is/are correct? [2016-1]

1. Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs.

2. It provides for refinance through SIDBI.

Select the correct answer using the code given below.

(a) 1 only
(b) 2 only
(c) Both 1 & 2
(d) Neither 1 nor 2

Correct Answer: (c) Both 1 & 2

Solution:(i) Prime Minister launched the 'Stand up India Scheme' aimed at promoting entrepreneurship among Scheduled Castes/Scheduled Tribes and women by giving loans in the range of 10 lakh to 1 crore for setting up a new enterprise.

There would be a₹ 10,000 crore refinance window through Small Industries Development Bank of India (SIDBI) and the National Credit Guarantee Trustee Company Ltd (NCGTC) will create a corpus of ₹ 5,000 crore.

(ii) Both statements are correct as per: Press Information Bureau (PIB) Government of India Ministry of Finance/03-April-2016.

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Poverty, Planning, Finance and Economic/Social Development (Part-II)

31. With reference to inflation in India, which of the following statements is correct? [2015-1]

32. There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit? [2015-1]

33. The Fair and Remunerative Price (FRP) of sugarcane is approved by the [2015-1]

34. 'Pradhan Mantri Jan-Dhan Yojana' has been launched for : [2015-1]

35. With reference to the Fourteenth Finance Commission, which of the following statements is/are correct? [2015-1]

36. Convertibility of rupee implies [2015-1]

37. The Government of India has established NITI Aayog to replace the : [2015-1]

38. With reference to 'Financial Stability and Development Council', consider the following statements: [2016-1]

39. Regarding "Atal Pension Yojana', which of the following statements is/are correct? [2016-1]

40. With reference to 'Stand up India scheme', which of the following statement is/are correct? [2016-1]

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