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

Total Questions: 61

51. Consider the following statements in the context of interventions being undertaken under Anaemia Mukt Bharat Strategy: [2023-1]

1. It provides prophylactic calcium supplementation for pre-school children, adolescents and pregnant women.

2. It runs a campaign for delayed cord clamping at the time of child-birth.

3. It provides for periodic deworming to children and adolescents.

4. It addresses non-nutritional causes of anaemia in endemic pockets with special focus on malaria, hemoglobinopathies and fluorosis.

How many of the statements given above are correct?

Correct Answer: (c) Only three
Solution:Statement 1 is incorrect: Prophylactic Iron Folic Acid supplementation (not Prophylactic calcium) given to children, adolescents, women of reproductive age and pregnant women, irrespective of anemia is a key continued intervention.

Statement 2 is correct: Promotion and monitoring of delayed clamping of the umbilical cord for at least 3 minutes (or until cord pulsations cease) for newborns across all health facilities will be carried out for improving the infant's iron reserves up to 6 months after birth. Simultaneously, all birth attendants should make an effort to ensure early initiation of breastfeeding within 1 hour of birth.

Statement 3 is correct: The Anemia Mukt Bharat, also integrates
deworming of women of reproductive age and for pregnant women as part of the NDD strategy. Bi-annual mass deworming for children in the age groups between 1-19 years is carried out on designated dates 10th February and 10th August every year under National Deworming Day (NDD) programme. Statement 4 is correct: The Anemia Mukt Bharat strategy attempts to intensify awareness and integrate screening and treatment for non-nutritional causes of anemia with special focus on malaria, haemoglobinopathies and fluorosis.

52. Consider the following statements: [2023-1]

Statement-I: According to the United Nations' 'World Water Development Report, 2022', India extracts more than a quarter of world's groundwater withdrawal each year.

Statement-II: India needs to extract more than a quarter of the world's groundwater each year to satisfy the drinking water and sanitation needs of almost 18% of world's population living in its territory.

Which one of the following is correct in respect of the above statements?

Correct Answer: (c) Statement-I is correct but Statement-II is incorrect.
Solution:The correct answer is (c)

Statement-I is correct because according to the United Nations' World Water Development Report, 2022', India extracts 25% of the world's groundwater withdrawal each year. This is more than any other country in the world.

Statement-II is wrong India does not need to extract more than a quarter of the world's groundwater each year to satisfy the drinking water and sanitation needs of its population.

In fact, India could reduce its groundwater extraction by investing in water conservation and water efficiency measures.

53. Consider the following statements: [2024-1]

1. In India, Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India.

2. In India, Foreign Institutional Investors can hold the Government Securities (G-Secs).

3. In India, Stock Exchanges can offer separate trading platforms for debts.

Which of the statements given above is/are correct?

Correct Answer: (c) 1,2 und 3
Solution:All Scheduled Commercial Banks (excluding RRBs) and Primary Dealers (PDs) maintaining Subsidiary General Ledger (SGL) and Current accounts with RBI at Mumbai will be eligible to participate in the Repo auctions.

As per definition of Primary dealers by RBI- "A non-bank entity applying for permission to undertake PD business shall obtain Certificate of Registration as an NBFC under Section 45-IA of the RBI Act, 1934 from the Department of Non-Banking Supervision, Reserve Bank of India."

Thus, non-banking financial companies can access the liquidity adjustment facility of the Reserve Bank of India. Thus, Statement 1 is correct.

Foreign Institutional Investors (FIIs) are allowed to invest in Government Securities (G-Secs) in India. Thus, Statement 2 is correct.

Stock Exchanges in India can indeed offer separate trading platforms for debt instruments (bonds and other debt securities). This provides a mechanism for trading debt securities separately from equity shares. Thus, Statement 3 is correct. Hence the correct answer is (c).

54. In India, which of the following can trade in Corporate Bonds and Government Securities? [2024-1]

1. Insurance Companies

2. Pension Funds

3. Retail Investors

Select the correct answer using the code given below:

Correct Answer: (d) 1, 2 and 3
Solution:Insurance companies in India invest a substantial portion of their collected premiums into corporate bonds and government securities. Pension funds also participate in the bond market, focusing on generating returns and ensuring stability for payouts.

These funds can invest in bonds rated 'A' or higher, with a cap of 10% for bonds rated between 'A' and 'AA-'. The Indian government has recently encouraged greater retail investor participation in the bond market, allowing individuals to invest in both corporate bonds and government securities directly or indirectly. Hence the correct answer is (d).

55. Consider the following: [2024-1]

1. Exchange Traded Funds (ETF)

2. Motor vehicles

3. Currency swap

Which of the above is/are considered financial instruments?

Correct Answer: (d) 1 and 3 only
Solution:Financial instruments are intangible assets offering future benefits through claims to future cash, representing legal or contractual monetary value or ownership. They are traded in financial markets, where their prices are determined by market forces.

Correct examples include ETFs, which track asset performance and trade like stocks, and currency swaps, financial derivatives exchanging loan principals in different currencies to hedge risk or secure better rates.

Motor vehicles are not financial instruments; they are tangible transportation assets, not traded as securities or derivatives. Hence the correct answer is (d).

56. With reference to the rule/rules imposed by the Reserve Bank of India while treating foreign banks, consider the following statements: [2024-1]

1. There is no minimum capital requirement for wholly owned banking subsidiaries in India.

2. For wholly owned banking subsidiaries in India, at least 50% of the board members should be Indian nationals.

Which of the statements given above is/are correct?

Correct Answer: (d) Neither 1 nor 2
Solution:The RBI mandates a minimum capital requirement of ₹5 billion for wholly owned banking subsidiaries, applicable to both new foreign banks in India and existing foreign banks converting their branches.

As per the Scheme for setting up of wholly owned subsidiaries by foreign banks in India, at least 50% of the directors must be Indian nationals, NRIs, or PIOs, with the stipulation that one-third of the directors are Indian nationals residing in India. However, PIOs are not considered Indian nationals. Hence both statements are wrong.

57. With reference to the Indian economy, "Collateral Borrowing and Lending Obligations" are the instruments of: [2024-1]

Correct Answer: (c) Money market
Solution:The term "Collateralized Borrowing and Lending Obligation (CBLO)" refers to a type of money market instrument. In CBLO transactions, a borrower pledges collateral (usually government securities) to secure a loan of cash from a lender.

These short-term instruments are designed to enable borrowing and lending in a fully secured manner, primarily within India's financial markets. Hence, the correct answer is (c).

58. With reference to the Pradhan Mantri Surakshit Matritva Abhiyan, consider the following statements: [2024-1]

1. This scheme guarantees a minimum package of antenatal care services to women in their second and third trimesters of pregnancy and six months post-delivery health care service in any government health facility.

2. Under this scheme, private sector health care providers of certain specialities can volunteer to provide services at nearby government health facilities.

Which of the statements given above is/are correct?

Correct Answer: (b) 2 only
Solution:Statement 1 is wrong: Free Medical checkup, every ninth day of every month during pregnancy. it doesn't mention post-delivery health care.

Statement 2 is correct: Woman can get this checkup both in government Hospital as well as private clinics. Hence, Option (b) is the correct answer.

59. With reference to the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) Yojana, consider the following statements: [2024-1]

1. The entry age group for enrolment in the scheme is 21 to 40 years.

2. Age specific contribution shall be made by the beneficiary.

3. Each subscriber under the scheme shall receive a minimum pension of ₹3,000 per month after attaining the age of 60 years.

4. Family pension is applicable to the spouse and unmarried daughters.

Which of the statements given above is/are correct?

Correct Answer: (b) 2 and 3 only
Solution:Statement 1 is wrong: Entry age between 18 and 40 years. Option (a) and (d) eliminated.

Statement 3 is right: Assured monthly pension of Rs. 3,000 from the age of 60, So by elimination the correct answer is (b).

60. Consider the following Vandan Adhiniyam: [2024-1]

1. Provisions will come into effect from the 18" Lok Sabha.

2. This will be in force for 15 years after becoming an Act.

3. There are provisions for the reservation of seats for Scheduled Castes Women within the quota reserved for the Scheduled Castes.

Which of the statements given above are correct?

Correct Answer: (c) 2 and 3 only
Solution:Statement 1 is wrong: Provision did not come into effect from the 18th Lok Sabha (2024). According to the provisions of the Bill, the reservation is set to be enforced following the publication of a new census and the completion of the delimitation exercise.

Furthermore, it's important to note that for the bill to be fully ratified, it necessitates approval from a minimum of 50% of the states. Thus, Statement 1 is wrong and by elimination of options containing this statement, we arrive at the correct answer (c).