DAY – 46 (InstaTest-46): Insta 75 Days Revision Plan-2023: Topic – ECONOMY, Test – 31, July 2022 CA

Solution: B

Difference between Old Pension Scheme and National Pension Scheme

Solution: C

ABOUT DIGITAL BANKING UNITS (DBUs)

The DBUs will enable those who do not have ICT infrastructure to access banking services digitally. They will also assist those who are not tech savvy to adopt digital banking. In DBU, the products and services will be offered to customers in 2 modes:

• Self Service Mode
• Digital Assistance Mode

DBUs will be different from traditional branch in following aspects:

• They will provide banking services including cash deposit & withdrawal 24 x 7.
• Services shall be provided digitally.
• People not having connectivity or computing devices can do banking transactions from DBU in a paperless mode.
• Bank staff will be available to help and guide users for banking transactions in assisted mode
• Will help in providing digital financial literacy and create awareness for adopting digital banking.

Solution: C

REIT or Real Estate Investment Trust refers to an entity created with the sole purpose of channelling investible funds into operating, owning or financing income-producing real estate. REITs are modelled on the lines of mutual funds and provide investors with an extremely liquid way to get a stake in real estate. It is a type of security that provides all types of investors, big or small, an outlet for regular income, portfolio diversification, and long-term capital appreciation. Like any other security, REITs can enlist themselves on a stock exchange.

REITs are more than 50-years-old and were originally devised in the United States in 1960 under the Cigar Excise Tax Extension Act. The first REIT was listed on the New York Stock Exchange in 1965. In the coming decades, similar instruments debuted on European, Japanese, and Australian stock exchanges.

In India, the Real Estate Investment Trusts were introduced by the Securities and Exchange Board of India (Sebi) in 2007. The securities watchdog only released draft regulations which due to certain limitations were later on rejected. In September, 2013, Sebi came out with revised regulations for REITs, which were approved on September 26, 2014.

REITs have many advantages for interested investors. It provides a regular income stream along with reduced portfolio volatility and dividends and wealth accumulation. As a result of it being a listed entity, it is bought and sold with ease providing great liquidity. It is a natural hedge against inflation as returns have been seen to consistently outpace Consumer Price Inflation.

Solution: C

Impact investing is an investment strategy that aims to generate specific beneficial social or environmental effects in addition to financial gains. Impact investments may take the form of numerous asset classes and may result in many specific outcomes. The point of impact investing is to use money and investment capital for positive social results.

Key Takeaways

• Impact investing is a general investment strategy that seeks to generate financial returns while also creating a positive social or environmental impact.
• Investors who follow impact investing consider a company’s commitment to corporate social responsibility or the duty to positively serve society as a whole.
• Socially responsible (SRI) and environmental, social, and governance (ESG) investing are two approaches to impact investing, although there is still some disagreement over terminology in the investing community.

Solution: C

Snow leopards have evolved to live in some of the harshest conditions on Earth. Their thick white-gray coat spotted with large black rosettes blends in perfectly with Asia’s steep and rocky, high mountains. Because of their incredible natural camouflage, rendering them almost invisible in their surroundings, snow leopards are often referred to as the “ghost of the mountains.”

The snow leopard’s habitat range extends across the mountainous regions of 12 countries across Asia: Afghanistan, Bhutan, China, India, Kazakhstan, Kyrgyz Republic, Mongolia, Nepal, Pakistan, Russia, Tajikistan, and Uzbekistan. The total range covers an area of close to 772,204 square miles, with 60% of the habitat found in China.

Snow leopards live in the mountainous regions of Central and Southern Asia. In India, their geographical range encompasses a large part of the western Himalayas, including the Union Territories of Jammu and Kashmir and Ladakh, Himachal Pradesh, Uttarakhand and Sikkim and Arunachal Pradesh in the eastern Himalayas.

Listed as Vulnerable on the IUCN-World Conservation Union’s Red List of the Threatened Species Listed as Schedule I species as per Wildlife (Protection) Act, 1972.

Solution: C

The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) is an independent intergovernmental body established by States to strengthen the science-policy interface for biodiversity and ecosystem services for the conservation and sustainable use of biodiversity, long-term human well-being and sustainable development. It was established in Panama City, on 21 April 2012 by 94 Governments.  It is not a United Nations body.  However, at the request of the IPBES Plenary and with the authorization of the UNEP Governing Council in 2013, the United Nations Environment Programme (UNEP) provides secretariat services to IPBES.

The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) is an intergovernmental organization established to improve the interface between science and policy on issues of biodiversity and ecosystem services. It is intended to serve a similar role to the Intergovernmental Panel on Climate Change.

IPBES was established in 2012, as an independent body inspired by the Intergovernmental Panel on Climate Change (IPCC) and the Millennium Ecosystem Assessment and its first work programme covers the period from 2014 to 2018.

Solution: B

TiHAN (Technology Innovation Hub on Autonomous Navigation)

Technology Innovation Hub on Autonomous Navigation and Data Acquisition Systems (UAVs, ROVs, etc.) at IIT Hyderabad

Department of Science and Technology (DST) under the National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS), Govt. of India has sanctioned the prestigious Technology Innovation Hub (TIH) in the technological vertical of Autonomous Navigation and Data Acquisition Systems (UAVs, ROVs, etc.).

TiHAN (Technology Innovation Hub on Autonomous Navigation) is a multidisciplinary initiative that will make India a global player in the futuristic and next generation ‘smart mobility’ technology.

Technology Innovation Hub on Autonomous Navigation (TiHAN) is a multi-departmental initiative, including researchers from Electrical Engineering, Computer Science & Engineering, Mechanical, and Aerospace Engineering, Civil Engineering, Mathematics, Design, and Entrepreneurship at IIT Hyderabad with collaboration and support from reputed institutions and industry.

TiHAN is recognized as a Scientific and Industrial Research Organization (SIRO) by the Department of Scientific and Industrial Research.

TiHAN will act as test bed for both Aerial & Terrestrial autonomous navigation.

TiHAN is developing and deploying a real-time CPS system utilising autonomous UAVs and ground/surface vehicles for many application sectors of the national importance of this decade.

Solution: C

The Government of India has launched ‘Mission Shakti’ – an integrated women empowerment programme as umbrella scheme for the safety, security and empowerment of women for implementation during the 15^th  Finance Commission period 202l-22 to 2025-26. The norms of ‘Mission Shakti’ will be applicable with effect from 01.04.2022.

‘Mission Shakti’ is a scheme in mission mode aimed at strengthening interventions for women safety, security and empowerment. It seeks to realise the Government’s commitment for “women-led development‟ by addressing issues affecting women on a life-cycle continuum basis and by making them equal partners in nation-building through convergence and citizen-ownership.

The scheme seeks to make women economically empowered, exercising free choice over their minds and bodies in an atmosphere free from violence and threat. It also seeks to reduce the care burden on women and increase female labour force participation by promoting skill development, capacity building, financial literacy, access to micro-credit etc.

‘Mission Shakti’ has two sub-schemes – ‘Sambal’ and ‘Samarthya’. While the “Sambal” sub-scheme is for safety and security of women, the “Samarthya” sub-scheme is for empowerment of women. The components of ‘Sambal‘ sub-scheme consist of erstwhile schemes of One Stop Centre (OSC), Women Helpline (WHL), Beti Bachao Beti Padhao (BBBP) with a new component of Nari Adalats – women’s collectives to promote and facilitate alternative dispute resolution and gender justice in society and within families.

The components of ‘Samarthya‘ sub-scheme consist of erstwhile schemes of Ujjwala, Swadhar Greh and Working Women Hostel have been included with modifications. In addition, the existing schemes of National Creche Scheme for children of working mothers and Pradhan Mantri Matru Vandana Yojana (PMMVY) under umbrella ICDS have now been included in Samarthya. A new component of Gap Funding for Economic Empowerment has also been added in the Samarthya Scheme.

Solution: A

D-8, also known as Developing-8, is an organization for economic cooperation among the following countries: Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey.

The establishment of D-8 was announced officially through the Istanbul Declaration of Summit of Heads of State/Government on June 15, 1997.

The objectives of D-8 Organization for Economic Cooperation are to improve member states’ position in the global economy, diversify and create new opportunities in trade relations, enhance participation in decision-making at international level, and improve standards of living.

D-8 is a global arrangement rather than a regional one, as the composition of its members reflects. Organization for Economic Cooperation (D-8) is a forum with no adverse impact on bilateral and multi-lateral commitments of the member countries, emanating from their membership to other international or regional organizations.

Solution: B

The LUX-ZEPLIN (LZ) Experiment is a next-generation dark matter direct detection experiment hoping to observe weakly interacting massive particles (WIMP) scatters on nuclei. It was formed in 2012 by combining the LUX and ZEPLIN groups. It is currently a collaboration of 30 institutes in the US, UK, Portugal and South Korea. The experiment is located at the Sanford Underground Research Facility (SURF) in South Dakota, and is managed by DOE’s Lawrence Berkeley National Lab (Berkeley Lab).

Solution: A

Global Findex Database 2021- released by World Bank

Overview

Financial inclusion is a cornerstone of development, and since 2011, the Global Findex Database has been the definitive source of data on global access to financial services from payments to savings and borrowing. The 2021 edition, based on nationally representative surveys of about 128,000 adults in 123 economies during the COVID-19 pandemic, contains updated indicators on access to and use of formal and informal financial services and digital payments, and offers insights into the behaviors that enable financial resilience. The data also identify gaps in access to and usage of financial services by women and poor adults.

Solution: B

The Black Sea is a marginal mediterranean sea of the Atlantic Ocean lying between Europe and Asia, east of the Balkans, south of the East European Plain, west of the Caucasus, and north of Anatolia. It is bounded by Bulgaria, Georgia, Romania, Russia, Turkey, and Ukraine. The Black Sea is supplied by major rivers, principally the Danube, Dnieper, and Don.

Solution: C

India Designates 5 New Ramsar Sites

India has designated five (5) new wetlands of International importance, which include three wetlands (Karikili Bird Sanctuary, Pallikaranai Marsh Reserve Forest & Pichavaram Mangrove) in Tamil Nadu, one (Pala wetland) in Mizoram and one wetland (Sakhya Sagar) in Madhya Pradesh, making a total of 54 Ramsar sites in the country.

• Pallikaranai Marsh Reserve Forest (TN): It is a freshwater marsh in Chennai. It is the only surviving wetland ecosystem in Chennai and the last remaining natural wetlands of South India.
• Karikili Bird Sanctuary (TN): Located in the Kancheepuram District of Tamil Nadu
• Pichavaram Mangrove (TN): It is located near Chidambaram in the Cuddalore District of Tamil Nadu. It could be counted among the largest mangrove forests in the country (more than 1100 hectares).
• Pala wetland (Mizoram): It is the largest natural wetland in Mizoram. The wetland is surrounded by green woodlands.
• Sakhya Sagar (MP): This lake is an integral part of Madhav National Park in Shivpuri, Madhya Pradesh.

Solution: B

Lumpy skin disease (LSD) is a highly contagious viral disease of cattle and buffalo that causes relatively low mortality. It does not affect humans. The disease can result in animal welfare issues and significant production losses.

LSD is spread:

• by movement of affected animals
• by biting insects or parasites such as flies, mosquitoes and ticks
• by contaminated equipment
• directly from animal to animal in some cases.

Solution: A

Ministry of Earth Science (MoES) 34% of India’s coastline is under erosion. West Bengal has suffered the worst (60.5% of its coast is threatened by erosion).

• Definition: Coastal Erosion is the process by which local sea-level rise, strong wave action, and coastal flooding wear down or carry away rocks, soils, and/or sands along the coast.
• Process: There are four main processes of coastal erosion. These are corrosion, abrasion, hydraulic action and attrition.
• Agency: National Centre for Coastal Research (NCCR) (Under MoES) is monitoring shorelines since 1990.
• Impact: Destruction of biodiversity and habitat, loss of fertile land, loss of tourism, etc.

Mitigation:

• Coastal erosion structures Seawalls, revetments, bulkheads, groins and breakwaters may reduce erosion in the short term.
• Indian National Centre for Ocean Information Services (INCOIS)has prepared and published an atlas of Coastal Vulnerability Index (CVI) maps for the entire coastline
• Integrated Coastal Zone Management Plan (ICZM): It ensures optimum suitable use of coastal natural resources
• National centre for Sustainable coastal management (NSCSCM): To research the areas of CZM including coastal resources and the environment.

Solution: B

A revaluation is a calculated upward adjustment to a country’s official exchange rate relative to a chosen baseline. The baseline can include wage rates, the price of gold, or a foreign currency.

Revaluation is the opposite of devaluation, which is a downward adjustment.

https://www.studysmarter.co.uk/explanations/macroeconomics/international-economics/devaluation-and-revaluation/

Solution: D

Factors Affecting the Exchange Rate of India

Inflation rate:

The increase in inflation rate can increase the demand for foreign currency which can negatively impact the exchange rate of the national currency.

For example, an increase in the inflation level of petroleum oil can increase the demand for foreign currency leading to the depreciation of Indian rupee.

Interest rate:

Interest rates on government securities and bonds, corporate securities etc affect the outflow and inflow of foreign currency.

If the interest rates on government bonds are higher compared to other country forex markets, it can increase the inflow of foreign currency, while lower interest rates can lead to the outflow of foreign currency. This affects the exchange rate of Indian rupee.

Exports and imports:

Exports and imports affect exchange rate as exports earn of foreign currency while imports require payments in foreign currency.

Thus, if the overall exports increases, the national currency appreciates, while increases in imports leads to the depreciation of the national currency.

Apart from above, the Indian foreign exchange market is also affected by factors such as the receipts in the accounts of exports in invisibles in the current account, inflow in the capital account such as FDI, external commercial borrowings, foreign institutional investments, NRI deposits, tourism activities etc.

Solution: B

IMF Special Drawing Rights (SDR)

• After the collapse of Bretton Woods Exchange Rate System, IMF was converted into a type of ‘deposit bank’, where the members would deposit currencies in the proportion of quotas allotted to them (depending on size of their economy, openness etc).
• IMF will pay them a small interest rate for their deposits. And IMF would lend this money to a member facing balance of payment crisis. To operationalize this mechanism, IMF would allot an artificial currency / accounting unit called SDR to the members based on their deposits.

Initially the price of SDR was fixed against the amount of gold but present mechanism: 

Solution: D

Reasons and objectives of currency devaluation

To increase Exports: countries go for currency devaluation to boost their exports in the international market. Devaluation of currency makes its goods cheaper compared to its international competitors.

Competitive devaluation (race to the bottom): if one country devalues its currency other countries are also incentivized to devalue their own currency to maintain their competitiveness and the international export market.

To reduce trade deficits: Currency devaluation makes a country export cheaper, while imports become more expensive. This leads to an increase in exports and decrease in imports. This situation favors the improved balance of payment and reduces trade deficits.

To reduce the sovereign debt burden: If the debt payments are fixed, devaluation of currency will make the domestic currency weaker and will ultimately make the payments less expensive over time.

Solution: B

The Tea Board India is responsible for the assignment of certification numbers to exports of certain tea merchants. This certification is intended to ensure the teas’ origin, which in turn would reduce the amount of fraudulent labelling on rare teas such as ones harvested in Darjeeling.

It coordinates research institutes, the tea trade and government bodies, ensuring the technical support of the tea trade in the global industry.

Assam is the largest producer of tea in India. India is one of the largest producers of tea in the world, second only to China.

Solution: B

Innovators Growth Platform (IGP) is an initiative by the Securities and Exchange Board of India (SEBI) to facilitate fundraising for startups and other emerging companies. It provides a platform for these companies to access capital markets and helps to promote innovation and entrepreneurship in the country.

Key features of IGP include:

1. Relaxed eligibility criteria: The platform allows companies with a minimum net worth of INR 10 crore (approx. $1.3 million) to list their shares, which is lower than the INR 25 crore (approx. $3.3 million) required for the mainboard.
2. Simplified listing and disclosure requirements: IGP has less stringent listing and disclosure norms compared to the mainboard, making it easier for startups to comply with regulations.
3. Lock-in period for pre-listing investors: A shorter lock-in period of six months is applicable for pre-listing investors compared to the three-year lock-in period for the mainboard.
4. Migration to mainboard: After a company has been listed on the IGP for a minimum of one year, it can migrate to the mainboard if it meets the applicable eligibility criteria.

https://www.nseindia.com/products-services/innovators-growth-platform-faqs

Solution: D

The Hathigumpha Inscription is a famous rock inscription located in the Udayagiri Hills in Bhubaneswar, Odisha, India. It was created in the 2nd century BCE by King Kharavela of the Mahameghavahana dynasty, and it provides valuable historical information about his reign.

Solution: C

The Commission for Agricultural Costs & Prices (CACP) is an attached office of the Ministry of Agriculture and Farmers Welfare, Government of India. It came into existence in January 1965. Currently, the Commission comprises a Chairman, Member Secretary, one Member (Official) and two Members (Non-Official). The non-official members are representatives of the farming community and usually have an active association with the farming community.

It is mandated to recommend minimum support prices (MSPs) to incentivize the cultivators to adopt modern technology, and raise productivity and overall grain production in line with the emerging demand patterns in the country. Assurance of a remunerative and stable price environment is considered very important for increasing agricultural production and productivity since the market place for agricultural produce tends to be inherently unstable, which often inflict undue losses on the growers, even when they adopt the best available technology package and produce efficiently. Towards this end, MSP for major agricultural products are fixed by the government, each year, after taking into account the recommendations of the Commission.
As of now, CACP recommends MSPs of 23 commodities, which comprise 7 cereals (paddy, wheat, maize, sorghum, pearl millet, barley and ragi), 5 pulses (gram, tur, moong, urad, lentil), 7 oilseeds (groundnut, rapeseed-mustard, soyabean, seasmum, sunflower, safflower, nigerseed), and 4 commercial crops (copra, sugarcane, cotton and raw jute).

Solution: C

Neo banks:

• Neo banks are financial institutions with only an online presence and function digitally.
• They offer all traditional bank services via a digital setup or mobile apps without having any physical branches.
• These are 100% digital banks. They cannot apply for a banking license. The expertise of these neo banks lies in tying technology and artificial intelligence together to offer personalized financial services to customers. It is offered at a minimal cost.
• Neo banks offer limited products like savings accounts, small loans, debit cards, etc. and not all services of banks.

Solution: D

Bureau of Indian Standards (BIS): BIS is the National Standard Body of India under the Ministry of Consumer Affairs, Food & Public Distribution. It was established under the BIS Act 2016.

• Minister for Consumer Affairs, Food & Public Distribution is the ex-officio President.
• The main activities are standardization, marking and quality certification of goods.
• BIS is responsible for developing Indian Standards, implementing voluntary and mandatory standards, such as Quality Control Orders, and providing quality assurance to consumers.
• It has included a new area for standardization such as repair or recall of goods, Alternate fuels, E-mobility, Medical Devices, Smart Cities, Digital Technologies (e.g. Industry 4.0, Artificial Intelligence, Block Chain etc.), and New and Renewable energy.

Ans. A.

The focus of the passage is on explaining the ill effects of labelling which is what we do in place of reading. Reading involves a deeper understanding of text and context. The point that the author is trying to make is that our reading is very superficial which the author terms as labelling, which is the new illiteracy of digital age.

Ans. D.

1 is correct as the passage tells us that reading is not merely about making sense of words, about discovering and constructing meaning but about assigning meaning based on our experiences. Essentially it is a post modernist interpretation of reading which involves deconstruction and reconstruction of text. Statement ii is correct as it is stated in the passage. Reading is a subjective exercise according to the passage. Hence iii is wrong. Hence D.

Correct Answer: B

Each letter forwarded 4 steps to obtain the code.

Correct Option: D

In this question we have to count places of alphabets from the end point Z.

Suppose Z = 1, Y = 2, X = 3 ……. A = 26.

Then,

GARMENT is written as ⇒20, 26, 9, 14, 22, 13, 7

Similarly,

INDULGE ⇒ 18, 13, 23, 6, 15, 20, 22

Correct Option: A

T          R          I           A          N         G         L          E

↓        ↓        ↓        ↓        ↓        ↓        ↓        ↓

–1        –1        –1        –1        –1        –1        –1        –1

↓        ↓        ↓        ↓        ↓        ↓        ↓        ↓

S          Q         H         Z          M         F          K          D

Similarly;

D          W        Z          L          O         K          D

↓        ↓        ↓        ↓        ↓        ↓        ↓

+1        +1        +1        +1        +1        +1        +1

↓        ↓        ↓        ↓        ↓        ↓        ↓

E          X          A          M         P          L          E