UPSC Essentials brings to you its initiative of subject-wise quizzes. These quizzes are designed to help you revise some of the most important topics from the static part of the syllabus. Each day, we will cover one new subject. Attempt today’s subject quiz on Economy to check your progress. Come back tomorrow to solve the MCQs on International Relations. Don’t miss checking the answers and explanations at the end of the quiz.

The “Green Credit Programme” was in the news. It has been launched for:

(a) Restoration, Awareness, Nourishment and Amelioration of Mother Earth.

(b) Generating waste to wealth plants under Galvanizing Organic Bio-Agro Resources Dhan scheme.

(c) Inter-state transmission systems for evacuation and grid integration.

(d) Encouraging behavioural change that will be notified under the Environment (Protection) Act.

Consider the following statements about Standing Deposit Facility (SDF):

1. It reduces the excess liquidity in the system and controls inflation.

2. It was introduced in 2018 by an amendment to the RBI Act.

3. It strengthens the operating framework of monetary policy.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Which of the following statements is not correct about GST Council?

(a) The Union Finance Minister is the chairperson of the council.

(b) The recommendations of the GST Council are binding.

(c) It is a joint forum of the Centre and the states which the President set up as per Article 279A (1) of the amended Constitution of India.

(d) Each state can nominate a minister in charge of finance or taxation or any other minister as a member.

Consider the following statements about Raising and Accelerating MSME Performance:

1. It is a World Bank assisted Central Sector Scheme.

2. The scheme aims at improving access to market and credit.

3. It will strengthen the coordination between the institutions at the National and State levels.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

With reference to the Fincluvation, which of the following statement(s) is/are correct?

1. It is a joint initiative to collaborate with the Fintech Startup community to co-create and innovate solutions for financial inclusion.

2. It is a permanent platform of RBI to co-create inclusive financial solutions with participating start-ups.

Select the correct answer using the codes given below:

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

FYI:

— The Finance Minister of India listed ‘Green Growth’ as one of the seven priorities of her Budget. She said these seven principles complement each other and act as the ‘Saptarishi’ guiding India through the Amrit Kaal. Green Growth is the fifth of these seven priorities.

— India is moving towards the ‘panchamrit’ and net-zero carbon emission by 2070 to usher in a green industrial and economic transition.

Green Credit Programme

— The programme has been launched to encourage behavioural change, a Green Credit Programme will be notified under the Environment (Protection) Act.

— This will incentivize environmentally sustainable and responsive actions by companies, individuals and local bodies, and help mobilize additional resources for such activities.

Therefore, option (d) is the correct answer.

FYI:

— In 2018, the amended Section 17 of the RBI Act empowered the Reserve Bank to introduce the SDF – an additional tool for absorbing liquidity without any collateral. Hence, statement 2 is correct.

— The SDF strengthens the operating framework of monetary policy by removing the binding collateral constraint on the RBI. Hence, statement 3 is correct.

— The SDF is also a financial stability tool in addition to its role in liquidity management.

— The main purpose of SDF is to reduce the excess liquidity in the system and control inflation. Hence, statement 1 is correct.

— The SDF will replace the fixed rate reverse repo (FRRR) as the floor of the liquidity adjustment facility corridor. Both the standing facilities — the MSF (marginal standing facility) and the SDF will be available on all days of the week, throughout the year.

Therefore, option (c) is the correct answer.

FYI:

— The GST Council is a joint forum of the Centre and the states which the President set up as per Article 279A (1) of the amended Constitution.

— The Council, according to Article 279, is meant to “make recommendations to the Union and the states on important issues related to GST, like the goods and services that may be subjected or exempted from GST, model GST Laws”.

— It also decides on various rate slabs of GST.

— The members of the Council include the Union Finance Minister (chairperson), and the Union Minister of State (Finance) from the Centre.

— Each state can nominate a minister in charge of finance or taxation or any other minister as a member.

— The recommendations of the GST Council are not binding.

— The court said Article 246A of the Constitution gives both Parliament and state legislatures “simultaneous” power to legislate on GST and recommendations of the Council “are the product of a collaborative dialogue involving the Union and States”.

Therefore, option (b) is the correct answer.

FYI:

— Raising and Accelerating MSME Performance (RAMP) is a World Bank assisted Central Sector Scheme, supporting various Corona Virus Disease 2019 (COVID) Resilience and Recovery interventions of the Ministry of Micro, Small and Medium Enterprises (MoMSME). Hence, statement 1 is correct.

— The programme aims at improving access to market and credit, strengthening institutions and governance at the Centre and State, improving Centre-State linkages and partnerships, addressing issues of delayed payments and greening of MSMEs. Hence, statement 2 is correct.

— Funds would flow through RAMP into the Ministry’s budget against Disbursement Linked Indicators (DLIs) to support ongoing MoMSME programmes, focusing on improving market access and competitiveness.

Objectives

— Strengthening coordination and institutions at the National and State level. Hence, statement 3 is correct.

— Building and integrating technology platforms.

— Enhancing firm capabilities and access to markets.

— Strengthening the receivables financing markets.

— Enhancing guarantee products towards increased greening and gender participation.

— Expanding access to Online Dispute Resolution Mechanism (ODR).

Therefore, option (c) is the correct answer.

(Other Source: ramp.msme.gov.in)

FYI:

— On the occasion of the 75th anniversary of Indian Independence & ongoing Azadi ka Amrit Mahotasav, India Post Payments Bank (IPPB), a 100 per cent government-owned entity under the Department of Posts (DoP) announced the launch of Fincluvation– a joint initiative to collaborate with Fintech Startup community to co-create and innovate solutions for financial inclusion. Hence, statement 1 is correct.

— It is the first initiative to create a powerful platform to mobilize the start-up community towards building meaningful financial products aimed at financial inclusion.

— Fincluvation will be a permanent platform of IPPB to co-create inclusive financial solutions with participating start-ups. Hence, statement 2 is not correct.

— Fincluvation invites startups to Participate, Ideate, Develop and Market intuitive and tailored products and services that can be taken to the customers.

Therefore, option (a) is the correct answer.

(Source: pib.gov.in)

Daily subject-wise quiz — Polity and Governance (Week 42)

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 42)

Daily subject-wise quiz — Environment, Geography, Science and Technology (Week 42)

Daily subject-wise quiz — Economy (Week 41)

Daily subject-wise quiz – International Relations (Week 41)

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