atricle 2

script async src="//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js">

article ad

Link

Link

Link

INDIAN ECONOMY QUIZ 2



  • a.) 
    ICAR    
  • b.) 
    State governments
  • c.) 
    Self Help Groups    
  • d.) 
    RKVY Extension centres 
Answer is (a) 
Krsihi Vigyan Kendra (KVK) are agricultural extension centres created by ICAR (Indian Council for Agricultural Research) and its affiliated institutions at district level to provide various types of farm support to the agricultural sector. The first KVK was established during 1974 (Pondichery) and has grown as a largest network in the country.
 KVKs provide several farm support activities like providing technology dissemination to farmers, training, awareness etc. To achieve the set objectives KVKs undertake following types of activities in the adopted villages: (1) Farm Advisory Service (2) Training programme for different categories of people. (3) Training programme for the extension functionaries. (4) Front Line Demonstration (Fill) (5) On Farm Testing (OFT).


  • a.) 
     I and II are correct
  • b.) 
    Only I is correct
  • c.) 
    Only II is correct
  • d.) 
     neither I nor II is correct
Answer is (a) 
The Reserve Bank's affairs are governed by a Central Board of Directors (CBD). Members of the board are appointed by the Government of India in accordance with Section 8 of the Reserve Bank of India Act.
The CBD as the administrative apex body of the RBI, contains two sets of directors. First is the official directors and second, non-official directors.
The official directors comprised of the Governor and not more than four Deputy Governors who are appointed/nominated by the Central Government under the RBI Act. RBI Governors is thus appointed by the Government 
Besides the official directors, there can be fourteen non-official directors as well in the CBD. Government can nominate two government officials into the CBD.
The Governor: appointment and term in office
The Governor and Deputy Governors hold office for periods not exceeding five years. The term of the governor may be fixed by the government at the time of his appointment. (Raghuram Rajan was appointed for three years; though a governor can get five-year tenure). Governor (and also Deputy Governors) is eligible for reappointment or extension.
 

  • a.) 
     Efficiency in investment 
  • b.) 
    capital intensity
  • c.) 
    labour absorption 
  • d.) 
    level of investment
Answer is (a)
Capital output ratio is the amount of capital needed to produce one unit of output. For example, suppose that investment in an economy, investment is 32% (of GDP), and the economic growth corresponding to this level of investment is 8%.
Here, a Rs 32 investment produces an output of Rs 8. Capital output ratio is 32/8 or 4. In other words, to produce one unit of output, 4 unit of capital is needed. But don't forget that the Rs 32 invested in the form of machineries will remain there for around ten or twelve years. Such a machinery will be giving Rs 1 output in every year.
What is the relevance of capital output ratio in economic planning?
Capital output ratio has very good use in economic planning. Suppose the government targets an economic growth of 9% for next year. planners know that the capital output ratio in India is 4. Here, to realize 9% growth, investment should be increased to 36% (9 x4).
Capital output ratio thus explain the relationship between level of investment and the corresponding economic growth. There is a simple equation in economics that shows the relationship between investment, capital output ratio and economic growth.
 G = S/V
Here, G is economic growth, S is saving as a percentage of GDP and V is capital output ratio.
What is Incremental Capital Output Ratio (ICOR)?
Another variant of capital output ratio is Incremental Capital Output Ratio (ICOR). The ICOR indicate additional unit of capital or investment needed to produce an additional unit of output. The utility of ICOR is that with more and more investment, the capital output ratio itself may change and hence the usual capital output ratio will not be useful.



  • a.) 
    MSP is recommended by Commission for Agricultural Costs and Prices (CACP) but determined by Cabinet Committee on Economic Affairs
  • b.) 
    Declared by considering production costs
  • c.) 
    Declared before the sowing season
  • d.) 
    Declared mandatorily for all food grains
Answer is (d) 
The Minimum Support Prices in India are recommended by a statutory body known as Commission for Agricultural Costs and Prices (CACP). It gives recommendations to the government on MSP for Kharif and Rabi seasons.
The Cabinet Committee on Economic Affairs (CCEA), determines the Minimum Support Prices (MSP) of various agricultural commodities based on the recommendations of the CACP keeping in view factors like increase in the cost of production, demand and supply situation, inter-crop parity, and trend of domestic and international market prices etc.
Currently, 25 agricultural commodities are covered under the function given to the CACP for advising the government in respect fixing MSP.  The Commission is required to convey its recommendations to the Government well before the sowing season of the crop.
The CACP, while formulating the recommendations on Price Policy, considers a number of important factors including cost of production, changes in input price, trends in market prices, demand and supply situation etc.
The cost of cultivation/production takes into account all paid out costs, such as, on hired labour, bullock labor and machine labor (both hired and owned) expenses on use of material inputs like seeds, fertilizers, manures, irrigation charges including cost of diesel or electricity for operation of pump sets, etc. Besides, cost of production includes imputed values of wages of family labour and rent for owned land. The cost also covers depreciation for farm machinery, building, transportation and insurance charges. State wise and crop wise cost estimation is made for recommending MSPs.



  • a.) 
    Goods for final use
  • b.) 
     goods used for the production of other goods
  • c.) 
    goods where high level of capital is needed to produce
  • d.) 
     goods whose production happens with high level of technology
Answer is (b)
  According to the draft capital goods policy of the government, "Capital goods consist of plant machinery, equipment and accessories required, either directly or indirectly, for manufacture or production of goods or for rendering services, including those required for replacement, modernization, technological upgradation and expansion of manufacturing facilities." 
Capital Goods Policy
At present India's capital goods sector is in poor state. We import large quantity of machineries from foreign countries especially China. India's share in global exports of capital goods is very low at 0.8%; compared to its overall goods export share of 1.7%. Capital goods is the second largest import item for India after crude oil. Around Rs. 122,000 Cr worth of capital goods were imported in to India during 2014- 15.
To reverse this, India has to improve its technology, invention and intellectual property culture. It is for this purpose that the government has brought a capital goods policy for the first time.
A major reason for the underdeveloped capital goods sector is low technological depth and R&D, according to the draft policy.
According to the draft policy, India's current level of technology depth ranges from basic to intermediate, indicating limited ability in fundamental research. India's rank is 30th in the world on research intensity, with 0.9% of GDP spent in R&D. This is low compared to advanced countries like South Korea (3.6%), Japan (3.4%) and China (3%).
Low technology led to poor manufacturing competitiveness for India. This is reflected in inferior supply base (quantity, quality) and value chain capabilities as an industrial country.
What the capital goods policy says?
The capital goods policy ratified by the Cabinet aims to reduce reliance on imported machineries and to create millions of jobs.
The policy targets to meet domestic requirements from 60% to 80% and thus to become a net exporter. Production of capital goods will be increased to Rs 7.5 lakh crore by 2025 from the present Rs 2.3 lakh crores. 
              Cabinet's initial framework about the policy also targets for the restructuring especially financial restructuring of the major PSES and establishment of new IITs.


  • a.) 
    Dankuni to Ludhiana
  • b.) 
    Dadri to Kolkotta
  • c.) 
    Kolkotta to Delhi
  • d.) 
     Howrah to Delhi
Answer is (a)
The Dedicated Freight Corridors have two wings- the Western DFC and the Eastern DFC. The Western Corridor connecting Dadri in NCR Delhi to Mumbai - Jawaharlal Nehru Port (JNPT), will go through six states- Uttar Pradesh, Delhi NCR, Haryana, Rajasthan, Gujarat and Maharashtra. It is the Western DFC that provides the connectivity of the Delhi Mumbai Industrial Corridor.
 The Eastern Corridor, starting from Dankuni in West Bengal will pass through the states of Jharkhand, Bihar, Uttar Pradesh and Haryana to terminate at Ludhiana in Punjab.
Traffic on EDFC comprises of coal for the power plants in the northern region of India from Coalfields located in state of Bihar, Jharkhand and Bengal, finished steel, food grains, cement, fertilizer, limestone from Rajasthan to steel plants in the east and general goods.
The Western DFC will join Eastern DFC at Dadri.
Both these Dedicated Freight Corridors offer high-speed connectivity for High Axle Load Wagons (25 Tonne) of Double Stacked Container supported by high power locomotives.


  • a.) 
    Dedicated Freight Corridor
  • b.) 
    Quadrilateral Highway Project
  • c.) 
    East West, North South Corridor Project
  • d.) 
     Highway Project from Mumbai to Delhi
Answer is (a) 
According to the DMIC Corporation, 'High Speed - High Capacity' connectivity under the Western Dedicated Freight Corridor (DFC) provides the backbone of the project.
The 1504 km long Western Dedicated Freight Corridor (DFC) between Delhi and Mumbai will go through six states - U.P, Delhi NCR, Haryana, Rajasthan, Gujarat and Maharashtra. The end terminals at Dadri in the Delhi NCR and Jawaharlal Nehru Port (JNPT) near Mumbai. Dadri is a part of Delhi NCR as well as UP's Gautam Budha Nagar District.


  • a.) 
    China Industrial and Investment Bank
  • b.) 
    UNIDO
  • c.) 
    ADB
  • d.) 
    Japan Bank for International Cooperation
Answer is (d)
For the execution of the DMIC project, the government has formed the Delhi Mumbai Industrial Corridor Development Corporation Ltd. (DMICDC) as a special purpose company, was incorporated. The DMICDC undertakes project development services for investment regions / industrial areas / economic regions / industrial nodes and townships, for various central government agencies and also assists state governments.
Shareholding in DMICDC
Share-holding of DMICDC is: Government of India (DIPP) 49%, Japan Bank for International Cooperation (JBIC) 26%, HUDCO 19.9%, IIFCL 4.1%, LIC 1.0%.
The DMIC has six participating states - U.P, Haryana, Rajasthan, Gujarat, Madhya Pradesh and Maharashtra. Industrial Areas, Regions, Economic Corridors will be established in in these states.
The DMIC envisages to develop investment regions / industrial areas / economic regions / industrial nodes and townships along its project areas.


  • a.) 
    Famers and traders
  • b.) 
    Farmers, Traders, processors and exporters
  • c.) 
     Farmers only
  • d.) 
    Mundi administrators and Farmers
Answer is (b) 
Farmers, Traders Buyers, Processers & Exporters can participate in the e NAM. Nearly 25 commodities are traded under Enam, linking mundis of 8 states. Vegetables and perishable items can't be traded for the time being.


  • a.) 
    Differentiated banks
  • b.) 
    Regional Rural Banks
  • c.) 
     Universal Banks
  • d.) 
    Foreign Banks
Answer is (c)
An 'on-tap' facility would mean the RBI will accept applications and grant license for banks throughout the year. The policy allows aspirants to apply for universal bank license at any time, subject to the fulfillment of the set conditions. It is for the first time in post nationalization phase that there comes such an open bank license policy.
There are several conditions for applying for new bank licenses set for individual applicants and entities like NBFCs. Stipulation of shareholding, fit and proper criteria for promoters etc. are some of them.
At s per the policy, industrial houses can't apply for banks.


0 comments:

Post a Comment