Tag: Economics Prelims

Posted in Indian Economy, UPSC

GS 1 Prelim 2019/7 (Solved)

Posted on by A Z

updated on June 6th, 2019

GS 1 Prelim 2019/7 (Solved)

7. Which of the following is not a sub-index of the world Bank’s ‘Ease of Doing Business Index?

(a) Maintenance of law and order

(b) Paying taxes

(c) Registering property

(d) Dealing with construction permits

Answer is ‘A’

The eleven evaluated parameters for evaluating ease of doing businsess are as follows :

  1. Starting a business,
  2. Dealing with construction permits,
  3. Getting electricity,
  4. Registering property,
  5. Getting credit,
  6. Protecting minority investors,
  7. Paying taxes,
  8. Trading across borders,
  9. Enforcing contracts,
  10. Resolving insolvency, and
  11. Labour market regulation.

Hence maintenance of law and order is not on the list .

For further reading

Questions on the same topic asked previously

2016 Prelims

GS 1 prelim 2016/37

So we can see reading previous year questions are important

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Posted in UPSC

GS 1 Prelim 2019/3 (Solved)

Posted on by A Z

GS 1 Prelim 2019/3 (Solved)

3. The Chairmen of public sector banks are selected by the

(a) Banks Board Bureau

(b)  Reserve Bank of India

(c) Union Ministry of Finance

(d)Management of concerned bank

Answer is ‘A’

 The appointment of the Chairman of public sector bank follows the recommendations of the Banks Board Bureau (BBB), an autonomous body of Government that works to improve governance of Public Sector Banks, recommends a selection of bank chiefs and helps banks in developing strategies.

The independence of BBB make sure, the appointment is fair and not affected by the political masters.

Posted in UPSC

GS 1 Prelim 2019/2 (Solved)

Posted on by A Z

updated on June 6th, 2019

GS 1 Prelim 2019/2 (Solved)

2. What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?

(a) To lessen the Government of India’s perennial burden of fiscal deficit and current account deficit

(b) To support the infrastructure projects of Central and State Governments

(c) To act as an independent regulator in case of applications for loans of Rs. 50 crore or more which are under consortium lending

(d) To aim at faster resolution of stressed assets of ₹ 50 crore or more which are under consortium lending

Answer is ‘D’

Direct Question from the news papers , the state below is Right .

  • To aim at faster resolution of stressed assets of ₹ 50 crores or more which are under consortium lending
  • By this, the bad loan is either sold or bought by a single bank and hence, they can resolve it fast.
  • For further read NPAs And Stressed Assets

Related questions from the past

 With reference to the governance of public sector banking in India, consider the following statements :

1. Capital infusion into public sector banks by the Government of India has steadily increased in the last decade.

2. To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer is ‘B’

for analysis of this question see GS 1 prelim 2018/96

The NPAs and their resolution might find its place in future UPSC questions .So follow them sincerely in News .

PS : How to prepare Indian Economy for UPSC ?

Posted in Prelims

GS 1 prelim 2017/11

Posted on by A Z

updated on March 23rd, 2019

11. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)?

1. It decides the RBI‘s benchmark interest rates.

2. It is a 12-member body including the Governor of RBI and is reconstituted every year.

3. It functions under the chairmanship of the Union Finance Minister.

Select the correct answer using the code given below :

(a) l only

(b)1 and 2 only

(c) 3 only

(d) 2 and 3 only

Answer is ‘A’

It was a major news break, and perhaps the most significant reform in India’s monetary policy framework in past few decades.

Justification: Statement 1: It decides the repo rates, CRR, SLR etc. It replaced the earlier system of policy rate veto by the RBI governor.  

Statement 2:  It consists of six members (RBI Governor, Deputy Gov RBI, One RBI officer and three members nominated by the government), and they hold office for a period of four years.

Statement 3:  The Governor of the RBI is the ex-officio Chairperson of MPC.

http://pib.nic.in/newsite/PrintRelease.aspx?relid=151264

The Reserve Bank of India Act, 1934 (RBI Act) has been amended by the Finance Act, 2016, to provide for a statutory and institutionalised framework for a Monetary Policy

Committee, for maintaining price stability, while keeping in mind the objective of growth. The Monetary Policy Committee would be entrusted with the task of fixing the benchmark policy

rate (repo rate) required to contain inflation within the specified target level. As per the provisions of the RBI Act, out of the six Members of Monetary Policy Committee, three Members will be

from the RBI and the other three Members of MPC will be appointed