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19th January 2018: Daily MCQs for Indian Economy
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10 MCQs based on Fundamentals of economy and Current Affairs

Jatin Verma is teaching live on Unacademy Plus

Jatin Verma
Have appeared in UPSC CSE thrice. Have been taking Unacademy Plus courses Academics- Polity, Economics & Current Affairs.

U
Unacademy user
sir Som or estimation k upr video upload kre
sir please time 8-10 minutes se jada mat kijiye
Ayman Hussain
2 years ago
wat will u do in ur remaining 5 mins sir??
Aayush Shukla
2 years ago
another video
if you want quality then forget about the quantity@aayush
may be that 5 mins will bring good marks.#on a lighter note#
Ayman Hussain
2 years ago
Shikha Salil Mishra agree :)
Aayush Shukla
2 years ago
thanks for suggestions shikha and ayman ji
most welcome.
2 minutes ke total view wale ko bhi 15 minutes k video se allergy ????????????????
Aayush Shukla
2 years ago
आप जीते मैं हारा
Jayant Panghal
2 years ago
Simple solution - Run it at speed of 1.5x (comprehensible and time-saving)
But sir in your question it's given that gini coefficient is same for the countries having same GDP and in answers it's showing same Countries can have different coefficient. Please make it correct if I'm wrong.
yes that is my question also
Deepak Kumar
2 years ago
it can be same as well as different....no such condition....
Nakul Bhatt
2 years ago
sir used "can" means this can be equal or can be different
Radha Gupta
2 years ago
But it is depicting different meanings if we go through the ques and answer.
Nitin Patel
2 years ago
answer is 1 and 3 it is just slip of tongue in jatin word bhawanyo ko samjho
Samadhan Tangde
2 years ago
ya it should be 1&3 only
C
Charan
8 months ago
if gdp per capita income same ..it gini co. also same
H
sir, FDI and FII belong to capital account .. you told it would help reduce current account deficit.. how?? I don't understand
Anshika Agarwal
2 years ago
same doubt
Samadhan Tangde
2 years ago
:) same doubt but options are like that only
Dipendra Awasthi
2 years ago
same doubt
Dipendra Awasthi
2 years ago
I thought only one is correct. but there is no option as only one.
WAQUAR AHMAD
2 years ago
Only 'B' would be right answer and if ques. is asking - CANNOT help in reducing CAD then ans. would be 1 & 3
WAQUAR AHMAD
2 years ago
here B means export subsidies
Kedar Deokar
2 years ago
With FDI and FII foreign currency is coming to the country...n this currency can be used to bridge CAD so indirectly we can say this
Chaitanya kaskar
2 years ago
Foreign investment comes under capital account but income & divident from it comes under current account
Please give us link to download the slides...thank you so much
Mehboob Elahi
2 years ago
take the screenshot.
how can reduction in the export subsidy increase current account deficit?
A
Arvind
2 years ago
reduction in export subsidy=》less export=》import exceed export=》inc. in CAD Current account= export in goods nd services-import
Prachi nehwal
2 years ago
thank you so much
@arvind And how would increase in FDI and FII help reduce CurrentAD (I believe both are under Capital Account)?
Chaitanya kaskar
2 years ago
Foreign investment comes under capital account but income & divident from it comes under current account
A
Arvind
2 years ago
but that divdent and income come in FDI and FII origin country current account not in receving country.i guess their is some mistake in jatin sir explanation.
Chaitanya kaskar
2 years ago
http://www.civilsdaily.com/blog/economicscurrent-account-deficit-explained/
  1. Daily 10 MCQs for Indian Economy for UPSC CSE 2018 By Jatin Verma 19th January 2018 . Highlights: Emphasis on Concept-building Useful for revising Indian economy part of DN Coverage of Economy related Current Affairs


  2. Explore a Search Courses, Topics & Educators Jatin Verma VERIFIED Follow My Idea is not to simply read out the Lines, my Idea is to read between the Lines!!! Hope you get it before it's too late :) 761,690 This month views 8,426,384 Lifetime Views Facebook: jatinverma0 509 47 Courses 210.2k Followers 6 Following Wish you all a Very Happy New Year UNACADEMY PLUS Approach the New Year with resolve to find the opportunities hidden in each new day By Jatin Verma By Jatin Verma Upcoming Indian Economy for UPSC CSE (Hindi) January 2018: The Hindu- Daily News Analysis By Jatin... January 2018: The Hindu Daily News and Editorial Analysis By... Last date to apply is 27th January, 2018 48 Lessons 42 Lessons View Details 2,310 ratings 244 reviews 977 ratings81 revlews


  3. INSTRUCTIONS Correct Watch the lessons on 'The Hindu Daily News Analysis and Editorial Analysis' video before or after attempting the question. As soon as the question appears, pause the video, answer the question and resume it. .100% of the time, without fail, calculate your score and write it in the comments section (Compete Conclusion 1-3 Very low chance of selection Can do better, need to grind more 4-5 6-7 Going good, almost there 8 or moreVery high chance of selection


  4. unacademy About course course curriculum FAQs Upcoming Indian Economy For UPSC CSE By Jatin Verma In this course, Jatin Verma will cover all the important aspects of Indian Economy and related Current Affairs relevant to the UPSC Civil Services Exam, other Exams conducted by UPSC and the State PSC exams. This course will also be relevant for Economy section of SSC, Banking and other Govt exams Starts on 27th Jan, 2018 43 SESSIONS Live sessions of 1 hour duration each which will comprehensively cover Upcoming Indian Economy LIFETIME ACCESS Get access to recordings of all the live sessions, downloadable notes, study material and other learning APPLY FOR COURSE


  5. Q1. Consider the following statements regarding Financial Stability and Development Council (FSDC): 1) It aims to strengthen and institutionalise the mechanism of maintaining financial stability 2) It is headed by the Prime Minister of India 3) The Governor of RBl is also a member of the Council Which of the statements given above is/are correct? A) 1 only. B) 2 and 3 only. C) 1 and 3 only. D) 1, 2 and 3. 2


  6. Solution: C) 1 and 3 only Explanation: FSDC was created in 2010 under Dept. Of Economic Affairs, Ministry of Finance Union Finance Minister is the chairman and have 5 regulators as members (SEBI, IRDA, PFRDA, RBI, IBBI). Chief Economic Adviser, Secretary (Economic Affairs), Secretary (Financial Services) Secretary, Ministry of Corporate Affairs (MCA) are other member . The Council envisages to strengthen and institutionalise the mechanism of maintaining financial stability, financial sector development, inter-regulatory coordination along with monitoring macro-prudential regulation of economy. They do coordination, consultation and promotion of financial literacy among public. . The idea to create such a super regulatory body was first mooted by the Raghuram Rajan Committee in 2008


  7. Q2. Consider the following statements regarding General Anti- Avoidance Rules (GAAR) 1) It aims at curbing tax avoidance, by taking advantage of international tax laws. 2) It will be effective from Financial Year 2018-19 onwards 3) A minimum threshold limit of a tax benefit of Rs 3 crore before GAAR is applicable Which of the statements given above is/are correct? A) 1 and 2 only. B) 2 and 3 only. C) 1 and 3 only. D) 1, 2 and 3 2


  8. Solution: C) 1 and 3 GAAR is aimed at curbing tax avoidance, designed to prevent the avoidance of tax by taking advantage of international tax laws GAAR is effective from Financial Year 2017-18 onwards. . There are safeguarss provided before the rule can be invoked like . Grandfathering provisions, under which investments made prior to 1 April 2017 would be protected from the applicability of GAAR in respect of income arising on transfer of such investments. Relaxation for Foreign portfolio investor (FPI) from the applicability of GAAR, provided no treaty benefit has been claimed, and for non-resident investors investing in participatory notes in an FPI entity . A minimum threshold limit of a tax benefit of Rs3 crore before GAAR is applicable. . The two-stage approval process before GAAR can be initiated by a tax officer.


  9. Q3. Consider the following statements regarding Wholesale Price Index 1) It is measured by the Central Statistical Organisation (CSO) 2) The Monetary Policy Committee of RBI targets Wholesale Price-based Inflation. 3) The base year for WPl is 2011-12. Which of the statements given above is/are correct? A) 1 and 2 only. B) 1 and 3 only. C) 3 only. D) 1, 2 and 3. 2


  10. . Solution: C) 3 Only WPI is measured by the Office of Economic Advisor (OEA), Department of Industrial Policy and Promotion, Ministry of Commerce and Industry WPI base year was revised last year from 2004-5 to 2011-12. Revised WPI series was brought in based on recommendations of Working Group constituted in 2012, chaired by Late Dr. Saumitra Chaudhuri. The MPC targets Consumer Price-based Inflation and not the WP 2


  11. Q4. Which of the following shows the correct order (decreasing) of weightage of 8 core industries in lndex of Industrial Production. A) Refinery Products>Electricity> Steel > Coal> Crude Oil > Natural Gas B) Electricity> Refinery Products > Steel > Coal> Crude Oil > Natural Gas C) Refinery Products> Electricity> Coal> Steel > Crude Oil> Natural Gas> D) Electricity> Refinery Products > Coal> Steel > Crude Oil > Natural Gas > Cement> Fertilizers > Cement> Fertilizers Cement > Fertilizers 2 > Cement> Fertilizers


  12. Solution: A) Refinery Products > Electricity > Steel > Coal > Crude Oil > Natural Gas> Cement> Fertilizers Eight Core Industries have a combined weight of 40.27 per cent in the IIP. 1. Petroleum Refinery production (weight: 28.04%), 2, Electricity generation (weight: 19.85%) 3. Steel production (weight: 17.92 %), 4, Coal production (weight: 10.33 %), 5. Crude Oil production (weight: 8.98 %), 6. Natural Gas production (weight: 6.88 %), 7. Cement production (weight: 5.37%), 8. Fertilizers production (weight: 2.63 %) 2


  13. Solution D) Laffer Curve Explanation: Philips Curve- inverse relation b/w inflation and unemployment Lorenz curve is a graphical representation of the distribution of income or of wealth. Kuznets Curve- the hypothesis that as an economy develops, market forces first increase and then decrease economic inequality. Laffer curve is one possible representation of the relationship between rates of taxation and the hypothetical resulting levels of government revenue. 2


  14. Q.7 Consider the following statements with respect to the Gini Coefficient. 1) It is a measure of income distribution. 2) Two countries with same GDP per capita can have the same Gini coefficient 3) A Gini coefficient of 1 represents perfect in-equality and 0 represents perfect equality. Which of the statements given above is/are correct? A) 1 and 2 only. B) 2 and 3 only. C) 1 and 3 only. D) 1, 2 and 3. 2


  15. Solution: D) None of the above Explanation: Sachet portal is launched by RBl to curb illegal collection of money by companies The website will enable public to obtain information regarding entities who accept deposits, lodge complaints and also share information regarding illegal acceptance of deposits The website would also help enhance coordination among regulators and state government agencies. The website also incorporates regulations prescribed by all financial regulators that one has to follow. 2 'Sachet also has a section for closed user group for State Level Coordination Committee (SLCCs) wherein they could share market intelligence and other information about their activities as well as agenda and minutes of meetings across the country in real time.


  16. Q9. Consider the following actions which the government can take: 1) Devaluing the domestic currency. 2) Reduction in the export subsidy. 3) Adopting suitable policies which attract greater FDIl and more funds from Flls Which of the above action/actions can help in reducing the current account deficit? A) 1 and 2 B) 2 and 3 C) 3 only. D) 1 and 3, 2


  17. Q10. Consider the following statements regarding Indian Agriculture sector: 1) The production of foodgrains is larger than that of foodgrains. 2) Small and marginal farmers are the largest cultivators of horticulture crops Which of the statements given above is/are correct? A) 1 only. B) 2 only. C) Both D) None 2