DAY – 4 (InstaTest-4): Insta 75 Days Revision Plan-2023: Topic – ECONOMY, Subject-wise Test 12,13,25 ( Revision ), Textbook-wise Test 1,2,3 ( Revision ) and July 2022 CA (PRELIMS 30 & MAINS 30)

Solution: C

Rupee Goes To

Budget 2023-24

Interest Payments forms the largest part in the total expenditure.

The capital expenditure has increased steadily over the last five years.

Solution: A

Price Stabilization Fund

The purpose of the creation of the Price Stabilization fund is to restrain the prices of agri-horticultural commodities like onion, potatoes, and pulses from the extreme price volatility. The fund is aimed to increase or decrease the low or high prices of such selected commodities by distributing or procuring the commodity to stabilize the price in a range. This fund is distributed through the Department of Consumer Affairs (DOCA), Government of India.

Price Stabilization and Fund Management Committee (PSFMC)

The Price Stabilization Fund will be managed centrally by a Price Stabilization Fund Management Committee (PSFMC) which will approve all proposals from State Governments and Central Agencies.

The committee has created an objective of setting aside a corpus fund of Rupees five hundred crores for the purpose of providing interest free advance towards working capital to eligible proposals from Union Territories or State Governments, Central Agencies/Central Public Sector Undertakings/Co-operative organizations as decided by the respective ministry to enable procurement of perishable agriculture and horticulture produce. This fund was initially decided to be utilized for onion, potato and pulses.

Solution: D

Digital Public Infrastructure (DPI)

In the twenty-first-century, technological innovation has created a tempest of ideological, geographical and economic implications that pose new challenges. The monopolization of public infrastructure, which plagued previous generations, has manifested itself in the centralized nature of today’s digital infrastructure. It is increasingly evident that the world needs a third type of public infrastructure, following modes of transport such as ports and roads, and lines of communication such as telegraph or telecom – but with open, democratic principles built in.

​​Digital Public Infrastructure (DPI) can fulfil this need, though it faces several challenges. There is a disturbing trend of the weaponization of data and technology – or “Digital Colonization” (Hicks, 2019) – resulting in a loss of agency, sovereignty and privacy. Therefore, proactively deliberating on how to build good DPI is key to avoiding such challenges.

To begin with, it is important to crystallize what DPI is and what it does. Put simply, foundational DPIs mediate the flow of people, money and information. First, the flow of people through a digital ID System. Second, the flow of money through a real-time fast payment system. And third, the flow of personal information through a consent-based data sharing system to actualize the benefits of DPIs and to empower the citizen with a real ability to control data. These three sets become the foundation for developing an effective DPI ecosystem.

India, through India Stack, became the first country to develop all three foundational DPIs: digital identity (Aadhar), real-time fast payment (UPI) and a platform to safely share personal data without compromising privacy (Account Aggregator built on the Data Empowerment Protection Architecture or DEPA) (Roy, 2020). Each DPI layer fills a clear need and generates considerable value across sectors.

Solution: B

Horticulture is estimated to contribute close to 30 per cent of the agriculture Gross Domestic Product (GDP) using only 13.1 per cent of gross cropped area. However, the sector faces the problem of post-harvest losses, lack of storage infrastructure, price seasonality and market volatility among others, industry sources said.

Production doubled

Horticulture production in India has more than doubled from 146 million tonnes (mt) in 2001-02 to 329.86 mt in 2020-21 whereas the production of foodgrains increased from 213 mt to 308.65 mt during the same period, said a study by NABARD in 2021.

Solution: C

Urban Infrastructure Development Fund

A Urban Infrastructure Development Fund (UIDF) will be set up to ramp up infrastructure in tier-2 and tier-3 cities with an annual allocation of Rs 10,000 crore, Union Finance Minister Nirmala Sitharaman announced Wednesday. Presenting the Union Budget 2023-24, Sitharaman said states will be encouraged to leverage resources from the grants of the 15th Finance Commission, as well as existing schemes, to adopt appropriate user charges while accessing the UIDF.

“Like the RIDF, an Urban Infrastructure Development Fund will be established through the use of priority sector lending shortfall,” she said. The UIDF, which will be managed by the National Housing Bank, will be established on the lines of the Rural Infrastructure Development Fund (RIDF) The Union finance minister said the funds will be used by public agencies to create urban infrastructure in tier-2 and tier-3 cities.

Cities having a population between 50,000 and 1,00,000 are classified as tier-2 cities while those with a population of 20,000 to 50,000 are known as tier-3 cities.

Solution: B

The finance minister in her Budget Speech made an announcement to setup Bharat Shared Repository of Inscriptions (BharatSHRI), a digital epigraphy museum, with digitization of one lakh ancient inscriptions in the first stage. The BharatSHRI will be setup by the Archaeological Survey of India at Hyderabad.

Solution: C

PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth” (PM-PRANAM)

Objectives of PM PRANAM Scheme

• The scheme aims to reduce the subsidy burden on chemical fertilisers, expected to increase by 39% to Rs.2.25 lakh crore in 2022-2023 compared to Rs.1.62 lakh crore in the previous year.
• It aims to discourage chemical fertiliser usage and promote sustainable agriculture practices.

Features of PM PRANAM Scheme

• The scheme will be financed by the “savings of existing fertiliser subsidy” under the schemes run by the Department of Fertilisers scheme and will not have a separate budget. 
• 50% subsidy savings will be given as a grant to the state that saves money. 
• States can use 70% of the grant given under the scheme for asset creation related to alternate fertiliser production and technological adoption of alternate fertiliser units at the block, village and district levels.
• States can use the remaining 30% of the grant money to incentivise panchayats, farmer producer organisations, farmers and self-help groups involved in awareness generation and reducing fertiliser use.
• The government would compare a state’s reduction or increase in urea in a particular year to its average consumption of urea during the last three years.
• The data on a Fertiliser Ministry dashboard, IFMS (Integrated fertilisers Management System), would be used to collect the state’s urea consumption data.

Solution: D

SEBI

• It was established in 1988 as an executive body and was given statutory powers in1992 through the SEBI Act, 1992.
• SEBI Act:
  • Protect the interests of investors and development of the capital/securities market.
  • Register intermediaries like stock brokers, merchant bankers, portfolio managers and regulate their functioning.
  • Impose penalties such as monetary penalties, including suspending or cancelling the registration.
  • Powers of a civil court.

• The SCR Act
  • Recognise (and derecognise) stock exchanges, prescribe rules and bye laws for their functioning, and regulate trading, clearing and settlement on stock exchanges.
  • The term “securities” is defined in the SCRA and powers to declare an instrument as a security remain vested in SEBI.
  • Arbitrating disputes that arise between stock brokers and investors.
• Depositories Act
  • This Act introduced and legitimised the concept of dematerialised securities being held in an electronic form.
  • SEBI set up the infrastructure for doing this by registering depositories and depository participants.
  • Regulate functioning of depositories and depository participants and powers to impose penalties including suspending or cancelling the registration.

• The Companies Act, 2013
  • Powers of SEBI:
  • The regulation of raising capital, corporate governance norms such as periodic disclosures, board composition, oversight management and resolution of investor grievances.

Solution: B

Trade Receivables Discounting System (TReDS)

1. What is TReDS?

Ans. TReDS is an electronic platform for facilitating the financing / discounting of trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers. These receivables can be due from corporates and other buyers, including Government Departments and Public Sector Undertakings (PSUs).

2. Who are the participants in TReDS?

Ans. Sellers, buyers and financiers are the participants on a TReDS platform.

3. Who can participate as a seller in TReDS?

Ans. Only MSMEs can participate as sellers in TReDS.

4. Who can participate as a buyer in TReDS?

Ans. Corporates, Government Departments, PSUs and any other entity can participate as buyers in TReDS.

5. Who can participate as a financier in TReDS?

Ans. Banks, NBFC – Factors and other financial institutions as permitted by the Reserve Bank of India (RBI), can participate as financiers in TReDS.

Solution: A

What is DICGC?

Deposit Insurance and Credit Guarantee Corporation (DICGC) is a wholly-owned subsidiary of the Reserve Bank of India (RBI). It provides deposit insurance that works as a protection cover for bank deposit holders when the bank fails to pay its depositors.

The agency insures all kinds of deposit accounts of a bank, such as savings, current, recurring, and fixed deposits up to a limit of Rs. 5 lakh per account holder per bank. In case an individual’s deposit amount exceeds Rs.5 lakh in a single bank, only Rs.5 lakh, including the principal and interest, will be paid by DICGC if the bank becomes bankrupt.

How DICGC Works?

DICGC protects depositors’ money kept in all commercial and foreign banks located in India; central, state, and urban co-operative banks; regional rural banks; and local banks, provided that the bank has opted for DICGC cover.

The agency’s operations are performed as per The Deposit Insurance and Credit Guarantee Corporation Act, 1961 and The Deposit Insurance and Credit Guarantee Corporation General Regulations, 1961, framed by RBI under the provisions of sub-section (3) of Section 50 of the act. The act states that the establishment of this corporation is with the aim of insuring deposits, guaranteeing credit facilities, and other related matters.

What DICGC Does Not Cover?

• Deposits of state or Central governments
• Deposits from foreign governments
• State land development banks depositing with the state co-operative bank
• Inter-bank deposits
• Funds that are due on account of India and deposits received outside India
• Funds exempted by the corporation with the previous approval from RBI

Solution: B

National Payments Corporation of India (NPCI), an umbrella organisation for operating retail payments and settlement systems in India, is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a robust Payment & Settlement Infrastructure in India.

Considering the utility nature of the objects of NPCI, it has been incorporated as a “Not for Profit” Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013), with an intention to provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems. The Company is focused on bringing innovations in the retail payment systems through the use of technology for achieving greater efficiency in operations and widening the reach of payment systems.

Solution: D

Pricing policy for sugarcane

The pricing of sugarcane is governed by the statutory provisions of the Sugarcane (Control) Order, 1966 issued under the Essential Commodities Act (ECA), 1955.

Fair and remunerative price (FRP) is the minimum price at which rate sugarcane is to be purchased by sugar mills from farmers.

The FRP is fixed by Union government (Cabinet Committee on Economic Affairs (CCEA) on the recommendations of Commission for Agricultural Costs and Prices (CACP).

CACP is required to pay due regard to the statutory factors listed in the Control Order, which are

• The cost of production of sugarcane;
• The return to the grower from alternative crops and the general trend of prices of agricultural commodities;
• The availability of sugar to the consumers at a fair price;
• The price of sugar;
• The recovery rate of sugar from sugarcane;
• The realization made from sale of by-products viz. molasses, bagasse and press mud or their imputed value (inserted in December, 2008) and;
• Reasonable margins for growers of sugarcane on account of risk and profits (inserted in October, 2009).

States also announce a price called the State Advisory Price (SAP), which is usually higher than the SMP.

Solution: D

Government announces minimum support prices (MSPs) for 22 mandated crops and FRP for sugarcane. The mandated crops are 14 crops of the kharif season, 6 rabi crops and two other commercial crops. In addition, the MSPs of toria and de-husked coconut are fixed on the basis of the MSPs of rapeseed/mustard and copra, respectively. The list of crops are as follows.

• Cereals (7) – paddy, wheat, barley, jowar, bajra, maize and ragi
• Pulses (5) – gram, arhar/tur, moong, urad and lentil
• Oilseeds (8) – groundnut, rapeseed/mustard, toria, soyabean, sunflower seed, sesamum, safflower seed and niger seed
• Raw cotton
• Raw jute
• Copra
• De-husked coconut
• Sugarcane (Fair and remunerative price)
• Virginia flu cured (VFC) tobacco

Solution: C

Agriculture contributes to about 15% of GDP and is a primary livelihood source for more than 50% of Indian population. Indian agriculture has several credits to it such as the following.

• World’s largest producer of spices, pulses, milk, tea, cashew, jute, bananas, jackfruits, etc.
• Second largest producer of wheat, rice, fruits and vegetables, sugarcane, cotton and oilseeds
• Fourth largest producer of agrochemicals
• Largest livestock population of around 535.8 million (31%) of world’s livestock
• Largest land area under irrigation
• Top five net exporters in the world

Solution: D

Revised Kisan Credit Card Scheme

Eligibility and credit limit

Eligibility

• All farmers-individuals/Joint borrowers who are owner cultivators.
• Tenant farmers, Oral lessees and Share Croppers etc.
• SHGs or Joint Liability Groups of farmers including tenant farmers, share croppers etc.,
• The criteria for eligible beneficiaries under KCC for Animal Husbandry and Fisheries are as follows
  • Fishery
    • Inland Fisheries and Aquaculture – Fishers, Fish Farmers (individual & groups/ partners/ share croppers/ tenant farmers), Self Help Groups, Joint Liability Groups and women groups. The beneficiaries must own or lease any of the fisheries related activities such as pond, tank, open water bodies, raceway, hatchery, rearing unit, possess necessary license for fish farming and fishing related activities, and any other State specific fisheries and allied activities.
    • Marine Fisheries – Beneficiaries listed above, who own or lease registered fishing vessel/boat, possess necessary fishing license/permission for fishing in estuary and sea, fish farming/mariculture activities in estuaries and open sea and any other State specific fisheries and allied activities.
  • Poultry and small ruminant – Farmers, poultry farmers either individual or joint borrower, Joint Liability Groups or Self-Help Groups including tenant farmer of sheep/goats/pigs/poultry/ birds /rabbit and having owned/rented/leased sheds.
  • Dairy – Farmers and Dairy farmers either individual or joint borrower, Joint Liability Groups or Self-Help Groups including tenant farmers having owned /rented/leased sheds.

Solution: A

India has supported an initiative by China to conduct a “joint border operation” in 2023 of all member countries of SCO (Shanghai Cooperation Organisation) that includes Russia, Pakistan and Central Asian countries. The border operation called “Solidarity-2023” will be organised by China, a statement by the Border Security Force (BSF) said.

The BSF hosted the 21^st meeting of Experts’ Group and Border Security Conference of SCO countries from June 15-17th that was attended by China, Pakistan, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and the Executive Committee of the Regional Anti-Terrorist Structure (RATS)-SCO.

The statement issued at the meeting said that the participants exchanged information reflecting assessments of the situation on the State borders of the SCO member states, trends and forecasts of its development.

https://www.thehindu.com/news/national/india-backs-chinas-plan-for-joint-border-activity/article65536746.ece

Solution: D

Introduction

Considering the importance of availability of labour force data at more frequent time intervals, National Statistical Office (NSO) launched Periodic Labour Force Survey (PLFS) in April 2017. It is released by Ministry of Statistics and Programme Implementation.

The objective of PLFS is primarily twofold:

• To estimate the key employment and unemployment indicators (viz. Worker Population Ratio, Labour Force Participation Rate, Unemployment Rate) in the short time interval of three months for the urban areas only in the Current Weekly Status (CWS)
• To estimate employment and unemployment indicators in both usual status (ps+ss) and CWS in both rural and urban areas annually.

The sample design of Periodic Labour Force Survey (PLFS) is not specifically focused to capture information on migration particulars and temporary visitors. However, in the PLFS canvassed during 2020-21, some additional information was collected on the following aspects:

• Information on migration particulars of the household members.
• Information on the temporary visitors in the household who arrived after March 2020 and stayed in the household continuously for a period of 15 days or more but less than 6 months.

The report, Migration in India, 2020-2021 contains estimates of the indicators based on information collected in PLFS during July 2020- June 2021 on these aspects.

Females recorded a higher share of migration rate (47.9%) as compared to males.

Solution: D

Sant Tukaram (1608 – 1650)

He was one of the saints of the Bhakti movement in Maharashtra and one of the greatest poets in the Marathi language.

He was also known as Tukoba, Tukaram Bolhoba Ambile etc. He composed a Marathi genre of literature called Abhanga poetry which fused folk stories with spiritual themes. Abhangs had themes on
ecology, equality, brotherhood and love of God.

His kirtans aka spiritual songs were devoted to Vithoba or Vitthala, an avatar of Hindu god Vishnu.

Solution: C

Sant Kabir Das

He was born in the city of Varanasi, Uttar Pradesh. He was a 15th century
mystic poet, saint and social reformer and a proponent of the Bhakti Movement.

His early life was in a Muslim family, but he was strongly influenced by his teacher, the Hindu bhakti leader Ramananda.

He belonged to Nirguni tradition, in this tradition, God was understood
to be a universal and formless being.

Kabir’s compositions can be classified into three literary forms – dohas (short two liners), ramanas (rhymed 4 liners), sung compositions of varying length, known as padas (verses) and sabdas (words)

Kabir Das’ writings had a great influence on the Bhakti movement and includes titles like Kabir Granthawali, Anurag Sagar, Bijak, and Sakhi Granth.

Solution: B

The Negev is a large desert region in southern Israel. Its main city is Be’er Sheva. Here, the Old City is home to the Negev Museum of Art, with contemporary Israeli and international exhibitions.

Nearby is Abraham’s Well, a cultural centre with interactive exhibits about the story of Abraham. East of the city, Tel Be’er Sheva is a prehistoric settlement mound with ruins, plus a lookout tower with desert views.  It forms an inverted triangle shape whose
western side is contiguous with the desert of the Sinai Peninsula, and whose eastern border is the Arabah valley.

Solution: B

Ream Naval Base

It is operated by the Royal Cambodian Navy on the coast of the Gulf of Thailand in the province of Sihanoukville, Cambodia.

Ream faces the Gulf of Thailand, adjacent to the South China Sea.

Zaporizhzhia

The Zaporizhzhia region is one of the biggest industrial hubs of Ukraine’s
southeast. In the south of Ukraine, Russia has already seized the large Ukrainian cities of Kherson and Mariupol.

Solution: D

What does gig economy include?

The term “gig economy” means a general workforce environment, which includes short-term employment, contractual jobs, and independent contractors. It is also called “freelancer economy”, “agile workforce”, “sharing economy”, or “independent workforce”.

Examples of a gig economy are those jobs that individuals discover and access through online platforms that list such jobs. These jobs are often one-time or short-term contract jobs. These include driving for a ride-sharing service, painting someone’s house, freelance work, coaching, fitness training, and tutoring.

Solution: B

PPIs can be issued by banks and non-banks. Banks can issue PPIs after obtaining approval from RBI. The non-bank PPI issuers are companies incorporated in India and registered under the Companies Act.

These payment instruments are licensed and regulated by the Reserve Bank of India. Prepaid payment instruments (PPIs) come with a pre-loaded value and in some cases a pre-defined purpose of payment.

They facilitate the purchase of goods and services as well as inter-personal remittance transactions such as sending money to a friend or a family member.

Solution: D

Navigation with Indian Constellation (NavIC):

• Navigation with Indian Constellation (NavIC) is an independent regional navigation satellite system designed to provide position information in the Indian region and 1500 km around the Indian mainland.

Services provided:

• IRNSS would provide two types of services, namely Standard Positioning Services available to all users and Restricted Services provided to authorised users.

Its applications include:

• Terrestrial, Aerial and Marine Navigation.
• Disaster Management.
• Vehicle tracking and fleet management.
• Integration with mobile phones.
• Precise Timing.
• Mapping and Geodetic data capture.
• Terrestrial navigation aid for hikers and travelers.
• Visual and voice navigation for drivers.

Solution: C

Nagaland is a mountainous state in northeast India, bordering Myanmar. It’s a home for diverse indigenous tribes, with festivals and markets celebrating the different tribes’ culture.

About ‘Particularly Vulnerable Tribal Groups (PVTGs)’:

PVTGs are more vulnerable among the tribal groups.

1. They have declining or stagnant population, low level of literacy, pre-agricultural level of technology and are economically backward.
2. They generally inhabit remote localities having poor infrastructure and administrative support.

Among the 75 listed PVTG’s the highest number are found in Odisha (13), followed by Andhra Pradesh (12), Bihar including Jharkhand (9) Madhya Pradesh including Chhattisgarh (7) Tamil Nadu (6) Kerala and Gujarat having five groups each. The remaining PVTGs live in West Bengal (3) Maharashtra (3), two each in Karnataka and Uttarakhand and one each in Rajasthan, Tripura and Manipur. All the four tribal groups in Andamans, and one in Nicobar Islands, are recognized as PVTGs.

Ntangki National Park is a national park located in Peren district of Nagaland, India. Among the species that inhabit the park are the rare hoolock gibbon, golden langur, hornbill, Asian palm civet, black stork, tiger, white-breasted kingfisher, monitor lizard, python and sloth bear.

Solution:D) 6 hours

It takes 12 hours for a couple of taps to fill a tank upto 80% of its capacity.
Hence, time taken to fill the tank fully = (12/80) × 100 = 15 hours.So it takes 3 more hours to fill in the tank. However, if one of the tap is closed, it must take double that time, i.e., 6 hours to fill up the tank upto the rim.

Hence, option(d) is correct.

Solution: A) 60

If M1 persons can do a piece of work in D1 days and M2 persons can do same piece of work in D2 days, then M1*D1= M2 * D2.

Let the original number of men in the group be ‘x’. (M1)

After 6 men left, the size of group be (x-6) men. (M2)

Now using the above formula, we get

x * 18 = (x-6) * 20

• 18x = 20x -120
• 120= 20x-18x
• 120 = 2x
• x=60

Therefore original number of men in the group are 60 men.

Hence, option (a) is correct.

Solution: D) 7.5 days

If A can do a work in ‘x’ days and A + B can do the same work in ‘y’ days, then the number of days required to complete the work if B works alone is given by the formula: ( x * y)/(x-y).

Aman alone takes 5 days (i.e x) to complete a piece of work and along with his son he can complete same of piece of work in 3 days(i.e y).

Therefore, his son alone takes  ( x * y)/(x-y) days to complete the same piece of work. By substituting the given values in formula, his so will take

• (5 * 3)/(5-3)
• 15/2
• 5 days.

Hence, option (d) is correct.

Correct Answer: C) 3 and 4

Explanation:

1 is eliminated as ‘‘art form’’ is not mentioned in the passage. Social inequalities are not accepted so 2 is false. Only 3 and 4 are mentioned in the passage

Correct Answer: B) 2 and 4 only

Explanation:

According to passage Instigation by external forces (social group get politically …. ) and ‘‘urge for granting privileges and self respect to disparaged section of the society’’ are manifestations of social movements.