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.

With reference to the India’s edible oil, consider the following statements:

1. The imports of India’s edible oil have increased in rupee value terms during the last 10 years.

2. India’s edible oil production from domestically grown oilseeds is less than half the total production.

3. The two biggest contributors to India’s edible oil production are mustard and soyabean.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

With reference to the Index of Industrial Production (IIP), consider the following statements:

1. The IIP fell from April 2023 to January 2024 compared to the previous year.

2. It is released by the National Statistical Office (NSO).

Which of the statement(s) given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

India signed a trade agreement with the four-nation European Free Trade Association (EFTA). Which of the following countries is not a part of EFTA?

(a) Liechtenstein

(b) Switzerland

(c) Norway

(d) Finland

With reference to the urban cooperative banks, consider the following statements:

1. They are not required to maintain a certain amount of cash reserve and liquid assets.

2. The regulatory function complies with the provisions of the Banking Regulation Act, of 1949.

3. They do not require permission from the Reserve Bank of India for opening branches.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

With reference to the “off-budget borrowings”, consider the following statements:

1. It is included in fiscal deficit calculation.

2. The off-budget borrowings allow the Central Government to finance its expenditures.

Which of the statement(s) given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

FYI:

— India’s edible oil imports have risen almost 1.5 times and more than doubled in rupee value terms during the last 10 years. Hence, statement 1 is correct.

— India’s edible oil imports have increased from 11.6 mt (valued at Rs 60,750 crore) in 2013-14 to 16.5 mt (Rs 138,424 crore) in 2022-23.

— India’s edible oil production from domestically grown oilseeds and alternative sources such as cottonseed, rice bran, and maize/corn is expected to be around 10.3 million tonnes in 2022-23. Adding 16.5 million tonnes of imports increased total availability to 26.8 million tonnes, with domestic production accounting for only 38.6% of this total. Hence, statement 2 is correct.

— The two biggest contributors to India’s edible oil production now are mustard and soyabean followed by cottonseed and rice bran. Hence, statement 3 is correct.

— The other oils — coconut, sesame, sunflower and safflower — have all registered declines in domestic output.

Therefore, option (c) is the correct answer.

FYI:

— India’s Index of Industrial Production grows by 3.8 per cent in January 2024. Factory output measured in terms of the Index of Industrial Production (IIP) witnessed a growth of 5.8 per cent in January 2023.

— The data released by the National Statistical Office (NSO) showed that the manufacturing sector’s output grew 3.2 per cent in January 2024, down from 4.5 per cent in the year-ago month. Hence, statement 2 is correct.

— The IIP grew 5.9 per cent during April 2023 to January 2024 compared to a 5.5 per cent expansion in the year-ago period. Hence, statement 1 is not correct.

Therefore, option (b) is the correct answer.

FYI:

— India signed a trade agreement with the four-nation European Free Trade Association (EFTA).

— EFTA is an intergovernmental grouping of Iceland, Liechtenstein, Norway and Switzerland.

— The deal brings in $100 billion in investment over 15 years, with the EFTA looking at joint ventures that will help India diversify imports away from China.

— India could see investment flow into the pharma, chemical sectors, food processing and engineering sectors.

Therefore, option (d) is the correct answer.

FYI:

— A primary (urban) cooperative bank is required to obtain a licence from the Reserve Bank of India, under the provisions of Section 22 of the Banking Regulation Act, 1949.

— Under the provisions of Section 23 of the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies), primary (urban) cooperative banks are required to obtain permission from the Reserve Bank of India for opening branches. Hence, statement 3 is not correct.

— The regulatory functions of the Urban Banks Department relate to monitoring compliance with the provisions of the Banking Regulation Act, 1949. Hence, statement 2 is correct.

— As in the case of commercial banks, primary (urban) cooperative banks are also required to maintain a certain amount of cash reserve and liquid assets. Hence, statement 1 is not correct.

— To ensure that the UCBs conduct their affairs in the interests of the depositors and also comply with the regulatory framework prescribed by the Reserve Bank of India, the department undertakes on-site inspections of these banks with frequency ranging from one to two years depending upon the financial condition/status of banks.

Therefore, option (a) is the correct answer.

(Other Source: http://www.rbi.org.in)

FYI:

— Off-budget borrowings are loans that are taken not by the Centre directly, but by another public institution which borrows on the directions of the central government.

— Off-budget borrowings are used to fulfil the government’s expenditure needs. Hence, statement 2 is correct.

— However, the loan is not included in the national fiscal deficit because the loan’s liability is not officially on the Centre. This keeps the nation’s budget deficit within manageable bounds. Hence, statement 1 is not correct.

— The off-budget borrowings raised by the government can ask an implementing agency to raise the required funds from the market through loans or by issuing bonds.

Therefore, option (b) is the correct answer.

Daily subject-wise quiz — Polity and Governance (Week 49)

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 49)

Daily subject-wise quiz — Environment, Geography, Science and Technology (Week 49)

Daily subject-wise quiz — Economy (Week 48)

Daily subject-wise quiz – International Relations (Week 48)

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