[Mission 2023] STATIC QUIZ, 13 March 2023 – Economy

Solution: d)

Structural adjustment programs (SAPs) consist of loans (structural adjustment loans; SALs) provided by the International Monetary Fund (IMF) and the World Bank (WB) to countries that experience economic crises. Their purpose is to adjust the country’s economic structure, improve international competitiveness, and restore its balance of payments. SAPs are created with the stated goal of reducing the borrowing country’s fiscal imbalances in the short and medium term or in order to adjust the economy to long-term growth.

Solution: b)

The Multilateral Investment Guarantee Agency (MIGA) is a member of the World Bank Group. Our mandate is to promote cross-border investment in developing countries by providing guarantees (political risk insurance and credit enhancement) to investors and lenders.

Our guarantees protect investments against noncommercial risks and can help investors obtain access to funding sources with improved financial terms and conditions. The Agency derives its unique strength from the World Bank Group and from its structure as an international organization whose shareholders include most countries of the world. This enables us to provide an umbrella of deterrence against government actions that could disrupt projects, and assist in the resolution of disputes between investors and governments. We also add value through our ability to offer clients extensive knowledge of emerging markets and of international best practice in environmental and social management.

Solution: b)

For a country to access IDA resources, it must be in a situation of relative poverty as indicated by its per capita income falling below the IDA operational cut-off, $1,255 in FY23, and/or lack creditworthiness for IBRD borrowing. IDA funds are allocated to the recipient countries in relation to their income levels and record of success in managing their economies and their ongoing IDA projects. IDA’s lending terms are highly concessional, meaning that IDA credits carry no or low interest charges.

Solution: b)

• HSN stands for Harmonised System of Nomenclature code. It is mandatory for both B2B and B2C tax invoices on the supplies of Goods and Services.
• This was introduced in 1988 by the World Customs Organization (WCO). This was introduced for a systematic classification of goods both national and international. This is a 6-digit code that classifies various products. India has been using HSN codes since 1986 to classify commodities for Customs and Central Excise.
• HSN codes apply to Customs and GST. The codes prescribed in the Customs tariff are used for the GST purposes too. HSN is used all over the world. There are different HSN codes for various commodities.
• HSN codes remove the need to upload details about the goods which makes filing of GST returns easier.
• HSN code is required for anything from animal products, mineral products, plastic articles to footwear, arms and ammunition and machinery.

Solution: c)

The World Economic Forum, mostly known for its annual summit in Davos, Switzerland, is a non-governmental lobbying organisation founded by economist Klaus Scwab. According to the WEF website, “The Forum strives in all its efforts to demonstrate entrepreneurship in the global public interest while upholding the highest standards of governance.”

The WEF is largely funded by its partnering corporations. These are generally global enterprises with annual turnover greater than $ 5 billion.