DAY – 4 (InstaTest-4): Insta 75 Days Revision Plan-2022: Topic – ECONOMY, Subject-wise Test 12, Textbook-wise Test 4 and June 2021 CA

Solution: d)

Justification: Reserve Bank of India (the Bank) has the powers to impose penalties on Regulated Entities (REs) under various statutes including the Banking Regulation Act, 1949, the Reserve Bank of India Act, 1934, the Payments and Settlement Systems Act, 2007, the earlier Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the Factoring Regulation Act, 2011, the National Housing Bank Act, 1987 and the Credit Information Companies (Regulation) Act, 2005.

Enforcement Department was set up in April 2017 with a view to separate enforcement action from supervisory process and to put in place a structured, rule-based approach to identify and process the violations by the Regulated Entities of the applicable statutes and the rules, regulations and orders made, directions issued, and conditions imposed thereunder (hereinafter collectively referred to as “laws”) by the Bank and enforce the same consistently across the Bank.

Q Source: https://rbi.org.in/scripts/FS_Overview.aspx?fn=2766

Solution: a) 

Justification: S1 and S2: PDS is operated under the joint responsibility of the Central and State Governments. The Central Government takes the responsibility for procurement, storage, transportation and bulk allocation of foodgrains, at subsidised prices. The responsibility of distribution to consumers including target groups through a network of various fair price shops (FPSs) rests with the State Governments. 

S3: Maintaining a buffer stock is an important constituent of the Government’s food policy, as agriculture in India still remains dependent on the vagaries of nature. The buffer stock provides the basic and most flexible instrument for moderating short-term effects of supply or production shortfalls. The concept of a buffer stock was first introduced during the 4th Five Year Plan (1969-74) and a buffer stock of 5 million tonnes of foodgrains was envisaged. The buffer stock figures are normally reviewed after every 5 years. 

Q Source:  Basics: Buffer stock

Solution: b) 

Justification: S1: DRR is a provision stating that any Indian corporation that issues debentures must create a debenture redemption service in an effort to protect investors from the possibility of a company defaulting. This provision was tacked onto the Indian Companies Act of 1956, in an amendment introduced in the year 2000. 

Government removes Debenture Redemption Reserve requirement for Listed Companies, NBFCs and HFCs by amending the Companies (Share Capital & Debentures) Rules. 

Significance: The measure has been taken by the Government with a view to reducing the cost of the capital raised by companies through issue of debentures and is expected to significantly deepen the Bond Market.

S2:  The Reserve Bank of India (RBI) has introduced ‘liquidity management framework’ for Non-Banking Financial Companies (NBFCs). The guidelines are applicable to all non deposit-taking NBFCs with an asset size of ₹100 crore and above, systemically important Core Investment Companies and all deposit-taking NBFCs irrespective of their asset size.

This has come following liquidity crunch among some NBFCs in meeting their recent repayment obligations after the collapse of the Infrastructure Leasing and Financial Services (IL&FS) group.

This was necessary to strengthen their asset-liability management following the liquidity crisis faced by these firms in the past year. 

What’s changed?

Specific cap on negative asset liability mismatches for particular liquidity buckets.

NBFCs are mandated to maintain liquidity coverage ratios (LCR). LCR refers to the proportion of highly liquid assets held by companies to ensure their ongoing ability to meet short-term obligations.

LCR will promote resilience of NBFCs to potential liquidity disruptions by ensuring that they have sufficient High Quality Liquid Assets (HQLA) to survive any acute liquidity stress scenario lasting for 30 days.

Q Source: NBFCs

Solution: c)

Justification: The Government of India is the issuing authority of coins and supplies coins to the Reserve Bank on demand. The Reserve Bank puts the coins into circulation on behalf of the Central Government.

In consultation with the Government of India, RBI works towards maintaining confidence in the currency by constantly endeavouring to enhance integrity of banknotes through new design and security features. The legal framework is the RBI Act and the Indian coinage act. 

See more here https://rbi.org.in/scripts/FS_Overview.aspx?fn=2753

Q Source: https://rbi.org.in/scripts/FS_Overview.aspx?fn=2753

Solution: c) 

Justification:  MSP is an integral component of Agriculture Price Policy and it targets to ensure support price to farmers and affordable prices to the consumer. Based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), the Government of India declares MSP after considering the views of State Governments and Central Ministries/Departments concerned or agricultural crops such as Cereal, Pulses, Oilseeds and commercial crops every year at the beginning of the sowing season. MSP is announced for the Kharif crops of Paddy, Jowar, Bajara, Ragi, Maize, Arhar, Moong, Urad, Cotton, Groundnut, Sunflower Seed, Soyabean, Sesamum. The Rabi crops for which MSP is announced are Wheat, Barley, Gram, Masur, Rapeseeds& Mustard, Safflower and Toria. Apart from this, MSP is announced for Copra, De-husked Coconut, Jute and Fair Remunerative Prices (FRP) is announced for Sugarcane.

CACP submits its recommendations to the government in the form of Price Policy Reports every year, separately for five groups of commodities namely Kharif crops, Rabi crops, Sugarcane, Raw Jute and Copra. Before preparing aforesaid five pricing policy reports, the Commission draws a comprehensive questionnaire, and sends it to all the state governments and concerned National organizations and Ministries to seek their views.

Q Source: Basics: MSP

https://pib.gov.in/PressReleasePage.aspx?PRID=1754566

Solution : b

Iran and North korea are in Black list

The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 on the initiative of the G7.

It is a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in various areas.

The FATF Secretariat is housed at the OECD headquarters in Paris.

What is a blacklist and grey list?

Black List: Countries known as Non-Cooperative Countries or Territories (NCCTs) are put in the blacklist. These countries support terror funding and money laundering activities. The FATF revises the blacklist regularly, adding or deleting entries.

Grey List: Countries that are considered safe haven for supporting terror funding and money laundering are put in the FATF grey list. This inclusion serves as a warning to the country that it may enter the blacklist.

Solution : d

What is EAST?

The mission mimics the energy generation process of the sun.

The reactor consists of an advanced nuclear fusion experimental research device located in Hefei, China.

It is one of three major domestic tokamaks that are presently being operated across the country.

The EAST project is part of the International Thermonuclear Experimental Reactor (ITER) facility, which will become the world’s largest nuclear fusion reactor when it becomes operational in 2035.

Solution : d

The rare earth minerals (REM) are a set of seventeen metallic elements. These include the fifteen lanthanides on the periodic table in addition to scandium and yttrium that show similar physical and chemical properties to the lanthanides.

In 2019, US imported 80% of its rare earth minerals from China

European Union (EU) gets 98% of its supply from China

India Has the world’s fifth-largest reserves of rare earth elements, nearly twice as much as Australia, but it imports most of its rare earth needs in finished form from its geopolitical rival, China

Solution : c

5G is the next generation of mobile broadband that will eventually replace, or at least augment 4G LTE connection.

Features and benefits of the 5G technology:

• Operate in the millimeter wave spectrum (30-300 GHz) which have the advantage of sending large amounts of data at very high speeds.
• Operates in 3 bands, namely low, mid and high frequency spectrum.
• Reduced latency will support new applications that leverage the power of 5G, the Internet of Things (IoT), and artificial intelligence.
• Increased capacity on 5G networks can minimize the impact of load spikes, like those that take place during sporting events and news events.

Solution : d

About NCPCR:

Set up in March 2007 under the Commission for Protection of Child Rights Act, 2005.

It works under the administrative control of the Ministry of Women & Child Development.

The Commission’s Mandate is to ensure that all Laws, Policies, Programmes, and Administrative Mechanisms are in consonance with the Child Rights perspective as enshrined in the Constitution of India and also the UN Convention on the Rights of the Child.

The Commission shall perform all or any of the following functions, namely:

• Examine and review the safeguards provided by or under any law for the time being in force for the protection of child rights and recommend measures for their effective implementation.
• Present to be central government, annually and at such other intervals, as the commission may deem fit, reports upon working of those safeguards;
• Inquire into violation of child rights and recommend initiation of proceedings in such cases;
• Examine all factors that inhibit the enjoyment of rights of children affected by terrorism, communal violence, riots, natural disaster, domestic violence, HIV/AIDS, trafficking, maltreatment, torture and exploitation, pornography and prostitution and recommend appropriate remedial measures;

Solution : c

There are a total of 53 Tiger reserves in India with the latest addition of Guru Ghasidas National Park of Chhattisgarh.

Solution : b

Can be detained upto 12 months

As per the National Security Act, the grounds for preventive detention of a person include: o acting in any manner prejudicial to the defence of India, the relations of India with foreign powers, or the security of India.

2) regulating the continued presence of any foreigner in India or with a view to making arrangements for his expulsion from India. 

3)preventing them from acting in any manner prejudicial to the security of the State or from acting in any manner prejudicial to the maintenance of public order or from acting in any manner prejudicial to the maintenance of supplies and services essential to the community it is necessary so to do.

Solution : d

Under UAPA, both Indian and foreign nationals can be charged.

It will be applicable to the offenders in the same manner, even if crime is committed on a foreign land, outside India.

Under the UAPA, the investigating agency can file a charge sheet in maximum 180 days after the arrests and the duration can be extended further after intimating the court.

As per amendments of 2019:

The Act empowers the Director General of National Investigation Agency (NIA) to grant approval of seizure or attachment of property when the case is investigated by the said agency.

The Act empowers the officers of the NIA, of the rank of Inspector or above, to investigate cases of terrorism in addition to those conducted by the DSP or ACP or above rank officer in the state.

It also included the provision of designating an individual as a terrorist.

Solution : a

Three recognised GIAHS sites in India:

Kuttanad Below Sea Level Farming System of Kerala.

Koraput Traditional Agriculture of Odisha.

Pampore Saffron Heritage of Kashmir.

Solution : d

The global minimum tax rate would apply to overseas profits of multinational firms with 750 million euros ($868 million) in sales globally. Governments could still set whatever local corporate tax rate they want, but if companies pay lower rates in a particular country, their home governments could “top up” their taxes to the 15% minimum, eliminating the advantage of shifting profits

Solution : d

About NRC:

At its core, the NRC is an official record of those who are legal Indian citizens. It includes demographic information about all those individuals who qualify as citizens of India as per the Citizenship Act, 1955.

The register was first prepared after the 1951 Census of India and since then it has not been updated until recently.

NPR

The National Population Register (NPR) is a comprehensive identity database maintained by the Registrar General and Census Commissioner of India under Ministry of Home Affairs.

It is a Register of “usual residents of the country” and will be prepared at the local, sub-district, district, state and national level.

The NPR is being prepared under provisions of the Citizenship Act 1955 and the Citizenship (Registration of Citizens and issue of National Identity Cards) Rules, 2003. It is mandatory for every “usual resident of India” to register in the NPR.

Solution : c

The Minister of Social Justice and Empowerment, launched the SAGE (Seniorcare Aging Growth Engine) initiative and SAGE portal to support India’s elderly persons.

The portal will be a “one-stop access” of elderly care products and services by credible start-ups.

The start-ups selected under SAGE will be those which will provide new innovative products and services to elderly persons in various areas like health, travel, finance, legal ,housing, food among others.

The Ministry of Social Justice & Empowerment will act as a facilitator for this scheme.

A fund of uptoRs.1 crore as one-time equity will be granted to each selected start-up.

Solution : a

What is UN Global Compact initiative?

It is a non-binding United Nations pact to encourage businesses and firms worldwide to adopt sustainable and socially responsible policies, and to report on their implementation.

Launched in 2000.

It is a principle-based framework for businesses, stating ten principles in the areas of human rights, labor, the environment and anti-corruption.

IDDI is an initiative of CEM(Clean Energy Ministerial).

It is a global coalition of public and private organisations who are working to stimulate demand for low carbon industrial materials.

Solution : c

What is the Juvenile Justice (Care and Protection of Children) Act, 2015?

• The Act was introduced and passed in Parliament in 2015 to replace the Juvenile Delinquency Law and the Juvenile Justice (Care and Protection of Children Act) 2000.
• It allowed the trial of juveniles in conflict with law in the age group of 16-18 years as adults, in cases where the crimes were to be determined.
• The nature of the crime, and whether the juvenile should be tried as a minor or a child, was to be determined by a Juvenile Justice Board.
• It received impetus after the 2012 Delhi gangrape in which one of the accused was just short of 18 years, and was therefore tried as a juvenile.
• The Act streamlined adoption procedures for orphans, abandoned and surrendered children and the existing Central Adoption Resource Authority (CARA) has been given the status of a statutory body to enable it to perform its function more effectively.

As per the amendments:

• The District Magistrates have been further empowered under the Act to ensure its smooth implementation, as well as garner synergized efforts in favour of children in distress conditions.
• It means that DMs and ADMs will monitor the functioning of various agencies under the JJ Act in every district- including the Child Welfare Committees, the Juvenile Justice Boards, the District Child Protection Units and the Special Juvenile Protection Units.
• The DM will also carry out background checks of CWC members, who are usually social welfare activists, including educational qualifications, as there is no such provision currently.
• The DMs are also to check possible criminal backgrounds to ensure that no cases of child abuse or child sexual abuse are found against any member before they are appointed.
• The CWCs are also to report regularly to the DMs on their activities in the districts.

Solution : d

What is NARCL?

• Setting up of NARCL, the proposed bad bank for taking over stressed assets of lenders, was announced in the Budget for 2021-22.
• The plan is to create a bad bank to house bad loans of ₹500 crore and above, in a structure that will contain an asset reconstruction company (ARC) and an asset management company (AMC) to manage and recover dud assets.
• The government-backed ARC will have deep pockets to buy out big accounts and thus free up banks from carrying these accounts on their books.

The NARCL will first purchase bad loans from banks.

It will pay 15% of the agreed price in cash and the remaining 85% will be in the form of “Security Receipts”.

When the assets are sold, with the help of IDRCL, the commercial banks will be paid back the rest.

If the bad bank is unable to sell the bad loan, or has to sell it at a loss, then the government guarantee will be invoked

Solution :  d

The Employees’ State Insurance Scheme is an integrated measure of Social Insurance embodied in the Employees’ State Insurance Act and it is designed to accomplish the task of protecting ’employees’ as defined in the Employees’ State Insurance Act, 1948 against the impact of incidences of sickness, maternity, disablement and death due to employment injury and to provide medical care to insured persons and their families.

ESIS is India’s largest social security program covering roughly 10% of India’s population.

Solution : d

It is a price fixation scheme that aims to ensure farmers are given the right price for their produce. It aims to promote Farmer Producers Organizations (FPO), Agri-logistics, processing facilities and professional management of agri-produce. It focuses on organized marketing of Tomatoes, Onions and Potatoes (TOP vegetables) by connecting farmers with consumers. Operation Green was originally launched in 2018 by the Ministry of Food Processing Industries (MoFPI)

Solution : b

The Ease of Living Index (EoLI) is an assessment tool that evaluates the quality of life and the impact of various initiatives for urban development. It provides a comprehensive understanding of participating cities across India based on quality of life, economic- ability of a city, and its sustainability and resilience. The assessment incorporates the residents’ view on the services provided by city administration through a Citizen Perception Survey.

Bengaluru emerged as the top performer in the Million+ category, followed by Pune, Ahmedabad, Chennai, Surat, Navi Mumbai, Coimbatore, Vadodara, Indore, and Greater Mumbai. 

In the Less than Million category, Shimla was ranked the highest in ease of living, followed by Bhubaneshwar, Silvassa, Kakinada, Salem, Vellore.

Solution : a

The elusive cat has been reported from the region of Kumbhalgarh-Todgarh-Raoli in Udaipur. As we have planted only native species of trees and grasses, the place appears to be like a forest. Luckily, we spotted the caracal at our resort.

In Rajasthan, other than Ranthambore and contiguous areas, including Dholpur, the cat has been seen in the region of Udaipur as well as an isolated population in Chittorgarh-Pratapgarh  area

It is the country’s second wildcat species facing the threat of extinction after cheetahs.

Solution : a

The Himalayan serow (Capricornis sumatraensis thar) has been spotted for the first time in Assam.

These are known to be found in the eastern, central, and western Himalayas, but not in the Trans Himalayan region. There are several species of serows, and all of them are found in Asia.

These are protected under the Schedule I of the Wildlife Protection Act, 1972. They are listed as Vulnerable in the IUCN Red List and come under the Appendix I of the CITES.

Solution : b

Clearly, A is 13th from the left and 11th from the right end of the row.

So, number of boys in the row = (12 + 1+10) = 23.

Now, D is 17th from the right.

Number of boys to the left of D = (23 -17) =6.

Hence, D is 7th from the left end of the row.

Solution : b

Clearly, number of boys in the row

= (6+ 10 + 8)= 24.

Solution : a

Number of boys in the row = (15 + 4+ 3) =22.

Cis just left of A. So, C is 14th from the left end.

Number of boys to the right of C = (22- 14) = 8.

So, C is 9th from the right end of the row.

Solution : a

Karan is 17th from the right end.

Number of boys to the left of Karan

= (29 – 17) =12.

So, Karan is 13th from the left end. Also, Rohit is 17th from the left end.

Clearly, there are 3 boys between Rohit and Karan.

Solution : c

Passage is talking about India’s continuously increasing pollution levels  as we are on the way to achieve number one spot of maximum number of lives lost due to our toxic air.

Statement 1 is incorrect as only in china the dependence on fossil fuel is decreasing but not in India.

Statement 2 – Not given in the passage

Statement 3 – As per the passage, Pollution is increasing in India. Hence, this is contradictory statement.