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 term “Green Shoe Option” was in the news. It corresponds to

(a) It helps to measure the levels of greenhouse gas emissions

(b) It is the practice of creating structures and using processes that are environmentally responsible.

(c) Investment that promotes environmentally positive activities.

(d) It is primarily used at the time of IPO or listing of any stock to ensure a successful opening price.

With reference to the Interest Subvention Scheme (ISS), consider the following statements:

1. The Government of India has reduced the interest subvention from 2 per cent to 1.5 per cent, availed on short-term loans for FY 2022-23 and 2023-24.

2. It does not apply to animal husbandry and fisheries.

3. The scheme was announced during the budget session of 2006-07.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Consider the following statements about Agriculture Accelerator Fund:

1. It aims at bringing innovative and affordable solutions for challenges faced by farmers.

2. Modern technologies to transform agricultural practices.

3. Financial support is provided to entrepreneurs in the field of agriculture and allied sector.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

This crop is mostly grown in India’s Western Ghats, which are located in the states of Tamil Nadu, Kerala, and Karnataka. In the non-traditional regions of Andhra Pradesh, Odisha, and the North East states, crop farming is also growing quickly. It is mostly an export-oriented commodity, with 65–70% of the crop produced in the nation going elsewhere and the remaining portion being consumed domestically.

The above lines refer to which of the following crops?

(a) Coffee

(b) Cashew

(c) Groundnut

(d) Clove

With reference to the Atal Pension Yojna, consider the following statements:

1. The scheme was introduced in the year 2016 to provide social security to workers mainly in the unorganised sector.

2. Income taxpayers can enroll in the government’s social security scheme Atal Pension Yojana.

3. It is applicable to all citizens of India aged between 18-40 years.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

FYI:

— A green shoe option is nothing but a clause contained in the underwriting agreement of an IPO.

— This option permits the underwriters to buy up to an additional 15% of the shares at the offer price if public demand for the shares exceeds expectations and the share trades above its offering price.

— Green shoe option is also known as an over-allotment provision.

— This option is primarily used at the time of IPO or listing of any stock to ensure a successful opening price.

— Accordingly, companies can intervene in the market to stabilise share prices during the first 30 days’ time window immediately after listing.

— It involves the purchase of equity shares from the market by the underwriting syndicate in case the share price fall below the issue price or goes significantly above the issue price.

— The green shoe option acts as a price stabilising mechanism. From the investor’s point of view, an IPO with a green shoe option ensures that after listing the share price will not fall below its offer price.

Therefore, option (d) is the correct answer.

FYI:

— The interest subvention scheme was announced by the Government of India during the budget of 2006-07. The scheme came into force with effect from Kharif 2006-07. Hence, statement 3 is correct.

— The amount of subvention was to be calculated on the amount of crop loan from the date of disbursement up to the actual date of repayment of the crop loan by the farmer or up to the due date of the loan fixed by the banks, whichever is earlier, subject to a maximum period of one year.

— The Government of India has reduced the interest subvention from 2 per cent to 1.5 per cent, availed on short-term loans for FY 2022-23 and 2023-24. Hence, statement 1 is correct.

— The Government of India has extended the Interest Subvention Scheme on KCC issued to crop loan farmers to the KCC issued to Animal Husbandry and Fisheries farmers from 2018-19. Hence, statement 2 is not correct.

— Interest subvention of 2 per cent to banks and 3 per cent to farmers towards Prompt Repayment incentive is extended on short-term loans up to Rs 2 lakh to animal husbandry and fisheries.

Therefore, option (b) is the correct answer.

(Other Source: http://www.nabard.org)

FYI:

— During the Budget Speech of 2023-2024, the Finance Minister of India said “An agriculture accelerator fund will be set up to encourage agri-startups by young entrepreneurs in rural areas. Hence, statement 3 is correct.

— The fund will aim at bringing innovative and affordable solutions for challenges faced by farmers. Hence, statement 1 is correct.

— The Government of India, Department of Agriculture & Farmers’ Welfare (DA&FW) is committed to the welfare of the farmers. It includes modernizing the agricultural systems by incorporating new and innovative solutions brought by agri-entrepreneurs. Hence, statement 2 is correct.

— Accordingly, DA&FW is implementing the “Innovation and Agri-Entrepreneurship Development” programme under Rashtriya Krishi Vikas Yojana (RKVY) from 2018-19 to promote innovation and agri-entrepreneurship by providing financial support and nurturing an incubation ecosystem in the country.

Therefore, option (c) is the correct answer.

FYI:

— In India, coffee is traditionally grown in the Western Ghats spread over Karnataka, Kerala and Tamil Nadu.

— The cultivation of coffee is also expanding rapidly in the non-traditional areas of Andhra Pradesh, Odisha and the North East states.

— Coffee is predominantly an export-oriented commodity and 65% to 70% of coffee produced in the country is exported while the rest is consumed within the country.

— Indian coffee has created a niche for itself in the international market and Indian Coffees are earning high premiums, particularly Indian Robusta which is highly preferred for its good blending quality. Arabica Coffee from India is also well-received in the international market.

— The government of India established the ‘Coffee Board’ through a constitutional act “Coffee Act VII of 1942” under the administrative control of the Ministry of Commerce and Industry.

— Coffee Board is located in Bangalore, Karnataka.

— The activities of the Board are broadly aimed at:

(i) enhancement of production, productivity & quality;

(ii) export promotion for achieving higher value returns for Indian Coffee and

(iii) supporting the development of the Domestic market.

Therefore, option (a) is the correct answer.

(Other Source: vikaspedia.in)

FYI:

— Atal Pension Yojna (APY) was launched by the Union Government in 2015 to address the longevity risks among workers in the unorganised sector and to encourage workers in the unorganised sector to voluntarily save for their retirement. Hence, statement 1 is not correct.

— APY is applicable to all citizens of India aged between 18-40 years. Hence, statement 3 is correct.

— Aadhaar will be the primary KYC. Aadhar and mobile numbers are recommended to be obtained from subscribers for the ease of operation of the scheme.

— Income taxpayers will not be allowed to enrol in the government’s social security scheme Atal Pension Yojana (APY) from October 1, 2022, according to a notification. Hence, statement 2 is not correct.

Benefits of the Scheme

— There is a guaranteed minimum monthly pension for subscribers between Rs. 1000 and Rs. 5000 per month. The benefit of a minimum pension would be guaranteed by the Government.

— The Government will also co-contribute 50% of the subscriber’s contribution or Rs. 1000 per annum, whichever is lower.

— The Government co-contribution is available for those who are not covered by any Statutory Social Security Schemes and is not income tax payer.

— The benefit of five years of government Co-contribution under APY would not exceed 5 years for all subscribers including migrated Swavalamban beneficiaries.

Therefore, option (a) is the correct answer.

(Other Source: npscra.nsdl.co.in)

Daily subject-wise quiz — Polity and Governance (Week 44)

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 44)

Daily subject-wise quiz — Environment, Geography, Science and Technology (Week 44)

Daily subject-wise quiz — Economy (Week 43)

Daily subject-wise quiz – International Relations (Week 43)

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