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

📆 March 17, 2025

Total Questions: 61

1. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)? [2017-1]

1. It decides the RBI's benchmark interest rates.

2. It is a 12-member body including the Governor of RBI and is reconstituted every year.

3. It functions under the chairmanship of the Union Finance Minister.

Select the correct answer using the code given below:

Correct Answer: (a) 1 only
Solution:MPC has 6 members, not 12; and it's headed by RBI governor and not Finance Minister. So statement 2 and 3 are wrong, hence by elimination, we reach answer (A) only 1 correct.

2. What is the purpose of setting up of Small Finance Banks (SFBs) in India? [2017-1]

1. To supply credit to small business units

2. To supply credit to small and marginal farmers

3. To encourage young entrepreneurs to set up business particularly in rural areas.

Select the correct answer using the code given below:

Correct Answer: (a) 1 & 2 only
Solution:While directly or indirectly all three will be encouraged because of Small Finance banks. But when RBI invited applications, the specific purpose were 1 and 2 only.

3. Who among the following can join the National Pension System (NPS)? [2017-1]

Correct Answer: (c) All State Government employees joining the services after the date of notification by the respective State Governments.
Solution:NPS was compulsory for new central govt recruits (except armed forces) WEF 1/1/2004. so "D" is wrong. Any Indian between 18 to 55 can join NPS. So "B" is wrong. NRIs are allowed to open NPS account as per PFRDA norms. So we are left with answer "c".

4. What is/are the most likely advantages of implementing 'Goods and Services Tax (GST)? [2017-1]

1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.

2. It will drastically reduce the 'Current Account Deficit' of India and will enable it to increase its foreign exchange reserves.

3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future.

Select the correct answer using the code given below:

Correct Answer: (a) I only
Solution:Exports will become ZERO RATED under GST, so statements 2 and 3 would have been correct If examiner had used moderate words "GST will help". But he has used 'extreme' words. GST is unlikely to 'drastically reduce CAD Because of crude oil import and OPEC cartel that manipulates its prices.

Similarly, GST is unlikely to enormously increase size of oureconomy (IMF projection-1-1.5% addition in growth rate.) and we can't overtake China in near future, because unlike China we are keeping our currency undervalued against dollar.

Hence statement 2 and 3 are wrong. We are left with Answer A.

5. With reference to the 'Prohibition of Benami Property Transactions Act, 1988 (PBPT Act)', consider the following statements: [2017-1]

1. A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction.

2. Properties held benami are liable for confiscation by the Government.

3. The Act provides for three authorities for investigations but does not provide for any appellate mechanism.

Which of the statements given above is/are correct?

Correct Answer: (b) 2 only
Solution:Act provides is an appellate tribunal, and they're required to finish case within one year. So #3 is wrong, by elimination, we are left with A and B. So, B is most appropriate because IT dept (-therefore Government) can seize the benami properties.

6. Consider the following statements: [2017-1]

1. Tax revenue as a per cent of GDP of India has steadily increased in the last decade.

2. Fiscal deficit as a per cent of GDP of India has steadily increased in the last decade.

Which of the statements given above is/are correct?

Correct Answer: (d) Neither 1 nor 2
Solution:If we look at the overall trend from 2007 to 2017 there is gradual increase but on yearly basis there have been ups and downs. So, Neither Tax revenue nor Fiscal deficit as a percentage of GDP have steadily increased. UPSC kept D is the official answer.

7. What is the aim of the programme 'Unnat Bharat Abhiyan"? [2017-1]

Correct Answer: (b) Connecting institutions of higher education with local communities to address development challenges through appropriate technologies.
Solution:Answer is "b" as per the Press Information Bureau.

8. With reference to 'National Investment and Infrastructure Fund', which of the following statements is/are correct? [2017-1]

1. It is an organ of NITI Aayog.

2. It has a corpus of ₹ 4,00,000 crore at present.

Select the correct answer using the code given below:

Correct Answer: (d) Neither 1 nor 2
Solution:NIIF is under Department of Economic Affairs. So first statement is wrong. It was setup in Budget 2015, with Rs.40k crores, but even if counting the recent allotments till Budget 2017, the 4 lakh amount is unrealistic. So, second statement is also wrong.

9. Which of the following are the objectives of 'National Nutrition Mission"? [2017-1]

1. To create awareness relating to malnutrition among pregnant women and lactating mothers.

2. To reduce the incidence of anemia among young children, adolescent girls and women.

3. To promote the consumption of millets, coarse cereals and unpolished rice.

4. To promote the consumption of poultry eggs.

Select the correct answer using the code given below:

Correct Answer: (a) 1 & 2 only
Solution:While this mission will certainly increase consumption of millets, coarse cereals and eggs once people become aware of their nutritional benefits, but promoting their 'consumption' is not the explicit objective of this mission. Explicitly stated objectives are only 1 and 2.

So, experts were divided between A and B and C- because in the 2016's UN-REDD+ question, UPSC official even kept 'indirect benefit of poverty removal as one of the objective.

But in official answer key of 2017, they have gone only by literal interpretation of explicitly mentioned 'direct benefits, and they chose 'A' as the official answer.

10. What is the purpose of Vidyanjali Yojana"? [2017-1]

1. To enable the famous foreign educational institutions to open their campuses in India.

2. To increase the quality of education provided in government schools by taking help from the private sector and the community.

3. To encourage voluntary monetary contributions from private individuals and organizations so as to improve the infrastructure facilities for primary and secondary schools.

Select the correct answer using the code given below:

Correct Answer: (a) 2 only
Solution:HRD Ministry has launched an initiative called 'Vidyanjali' to encourage youngsters to volunteer their services at any neighborhood government school.

So accordingly "A" is the most appropriate choice.

What about statement "3"? While the mygov.in portal guidelines mention that Vidyanjali will cover initiatives under CSR, PPP, PSU. But mobilization of voluntary monetary contribution is not the primary and explicit 'purpose' of the scheme.
And the scheme is targeted at primary (Class 1 to 5) and upper primary classes (Class 6 to 8) so 'secondary schools' infrastructure facilities' are beyond its scope of work.

HRD ministry's other schemes specifically count class 9 onwards as 'secondary education'

Hence 3 is wrong. Therefore, Answer is "A".

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