Daily Static MCQs for UPSC & State PSC Exams - Economy (15 June 2023)

Daily Static MCQs Quiz for UPSC, IAS, UPPSC/UPPCS, MPPSC. BPSC, RPSC & All State PSC Exams

Subject : Economy

1. With reference to “Economic Survey 2022-23”, consider the following statements:

1. As per the survey, there has been a decline in the social sector spending in the last fiscal year.
2. As per the survey, India has become the largest mobile phone manufacturer globally.
3. As per the survey, India is the largest recipient of remittances in the world.

How many statements given above is/are correct?

(a) Only one
(b) Only two
(c) All three
(d) None

Answer: (A)

Explanation:

  • Social Sector witnessed a significant increase in government spending. It has increased to Rs. 21.3 lakh crore in FY23 (BE) from Rs. 9.1 lakh crore in FY16. India has become the second-largest mobile phone manufacturer globally. Hence, statement 1 and 2 are incorrect.
  • India is the largest recipient of remittances in the world receiving US$ 100 bn in 2022. Remittances are the second-largest major source of external financing after service export. Hence, statement 3 is correct.

2. With reference to Nano Urea Liquid (NUL), consider the following statements:

Statement I: NUL is developed to replace conventional urea; it can curtail its requirement by 90%.
Statement II: Its use will boost balanced nutrition program by reducing the excess use of urea application in the soil.

Which one of the following is correct in respect to the above statements?

(a) Both Statement I and Statement II are correct and Statement II is the correct explanation for Statement I.
(b) Both Statement I and Statement II are correct and Statement II is not the correct explanation for Statement I.
(c) Statement I is correct but Statement II is incorrect.
(d) Statement I is incorrect but Statement II is correct.

Answer: (D)

Explanation:

  • Indian Farmers Fertiliser Cooperative Limited (IFFCO) has introduced the world’s first Nano Urea Liquid for farmers across the world. It is developed to replace conventional urea; it can curtail its requirement by at least 50%. Hence, statement 1 is incorrect.
  • Its use will boost balance nutrition program by reducing the excess use of urea application in the soil and will make the crops stronger, healthier and protect them from lodging effect. Hence, statement 2 is correct.

3. Which of the following programmes was/were started to create self-employment opportunities for educated unemployed youth in rural areas and small towns?

1. Rural Employment Generation Programme (REGP)
2. Prime Minister Rozgar Yozana (PMRY)
3. Pradhan Mantri Gramodaya Yozana (PMGY)

Select the correct answer using the code given below:

(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (B)

Explanation:

  • Under the Pradhan Mantri Gramodaya Yozana (PMGY) launched in 2000, additional central assistance is given to states for basic services such as primary health, primary education, rural shelter, rural drinking water and rural electrification.
  • Rural Employment Generation Programme (REGP) was launched in 1995. The aim of the programme is to create selfemployment opportunities in rural areas and small towns.
  • Prime Minister Rozgar Yozana (PMRY) is another scheme which was started in 1993. The aim of the programme is to create self-employment opportunities for educated unemployed youth in rural areas and small towns. They are helped in setting up small business and industries.

Hence, option (b) is correct.

4. With reference to ‘Repos and Reverse Repos’, consider the following statements:

1. In a reverse repo, the banks and financial institutions purchase government securities from the RBI.
2. Repo allows the banks and other financial institutions to borrow money from the RBI for long-term.
3. All government securities are dated and the interest for the repo or reverse repo transactions is announced by the RBI from time to time.

Which of the statements given above are correct?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (C)

Explanation:

  • In reverse repo, the banks and financial institutions purchase government securities from the RBI (basically here the RBI is borrowing from the banks and financial institutions). Hence, statement 1 is correct.
  • Repo allows the banks and other financial institutions to borrow money from the RBI for short-term (by selling government securities to RBI). Hence, statement 2 is incorrect.
  • All government securities are dated and the interest for the repo or reverse repo transactions is announced by the RBI from time to time. Hence, statement 3 is correct.

5. With reference to Atal Mission for Urban Rejuvenation and Urban Transformation (AMRUT), consider the following statements:

1. It is a first focused national water mission which aims to provide basic services like water supply, sewerage, etc. to households and build amenities in cities.
2. 100 cities are covered under AMRUT.

Which of the above statement(s) is/are incorrect?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer: (B)

Explanation:

  • AMRUT is a first focused national water mission which aims to provide basic services like water supply, sewerage, etc. to households and building amenities in cities. Hence, statement 1 is correct.
  • 500 cities are selected under AMRUT. Hence, statement 2 is incorrect.