UPSC Basics | Daily Subject Quiz: Economics MCQs on Cooperative Banks, Make in India Initiative and More (Week 136) | UPSC Current Affairs News

Question 1

Which of the following statements is true/true regarding cooperative banks?

1. The Reserve Bank of India can impose restrictions on cooperative banks due to concerns about their financial stability.

2. Until 1996, these banks were allowed to lend money for non-agricultural purposes.

Choose the correct answer using the codes below:

(A) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

clarification

— The RBI’s Urban Banking Department is responsible for regulating and monitoring the major (urban) cooperative banks, often known as Urban Cooperative Banks (UCBs).

– Under Section 23 of the Banking Regulation Act, 1949 (as applicable to cooperative societies), primary (urban) cooperative banks must obtain a license from the Reserve Bank of India before setting up branches.

— The regulatory functions of the Urban Banking Department include ensuring that urban cooperative banks comply with the terms of the Banking Regulation Act of 1949 (as it applies to cooperative societies). These provisions include:

(i) Minimum capital

(2) Maintenance of CRR and SLR

The Reserve Bank of India can impose restrictions on a bank due to concerns about its financial stability. These limits include prohibiting the bank from making new loans, making investments, borrowing money, or allowing withdrawals for a period of six months. Therefore statement 1 is correct.

The Reserve Bank of India can replace the bank’s board for 12 months due to “poor governance standards”.

— Urban cooperative banks (UCBs), although not technically defined, are major cooperative banks located in urban and semi-urban areas. Until 1996, these banks were only allowed to lend money for non-agricultural purposes. Therefore statement 2 is true.

Therefore, option (C) is the correct answer.

Question 2

The term “fast trade” refers to:

(a) Commercial activity conducted through social media platforms.

(b) Shopping directly via smart TVs or voice assistants such as Alexa or Google Assistant.

(c) Transactions in virtual reality environments.

(d) Express delivery of goods ordered online.

clarification

—Quick commerce (q-commerce) refers to the rapid delivery of goods ordered over the Internet, usually between 10 and 30 minutes.

– For commerce to work effectively, companies must invest in opening and efficiently stocking so-called “dark stores”, which are stocked like standard retail stores but are used only for storage and are not open to the public. Dark stores are an important business infrastructure that makes rapid implementation possible in the q-commerce company’s operating area.

— India’s top three e-commerce companies — Blinkit, Zepto and Swiggy Instamart — together receive nearly 4.3 million orders daily.

Therefore, option (D) is the correct answer.

Question 3

Which of the following have been identified as focus areas under the Make in India initiative?

1. Enhancing the ease and cost of doing business

2. Manufacture of high quality products

3. Availability of technology

Choose the correct answer using the codes below:

(A) 1 and 2 only

(b) 1, 2 and 3

(c) 2 and 3

(d) 1 only

clarification

The “Make in India” initiative was launched in 2014 with the sole aim of increasing local production. According to their website, the goal is to “facilitate investment, promote innovation, promote skills development, protect intellectual property, and build best-in-class manufacturing infrastructure.”

These goals will be achieved by “entering new operations, building new infrastructure, entering new industrial sectors, and providing a new ‘mindset’ for public-private partnership.”

The mission identified the following areas of focus:

(i) Enhancing the ease and affordability of doing business;

(2) Building a future-ready workforce to take on in-demand jobs;

(3) the vibrant and dynamic SME sector;

(4) Ensure availability of technology; and

(v) Manufacture of high quality products.

Therefore, option (B) is the correct answer.

Question 4

With reference to the Indian economy, “Security Borrowing and Lending Commitments” are instruments: (UPSC 2024)

(a) Money market

(b) Bond market

(c) Forex market

(d) Stock market

clarification

— The G-Secs market primarily caters to long-term investors, while the money market provides short-term investment opportunities.

— Money market The transactions are typically used to fund transactions in other markets, including the G-Secs market, and to address short-term liquidity shortages.

– Money markets have a maximum duration of one year. Within one year, depending on the terms, the money market is divided into:

I. Night Market – Transaction duration is one business day.

secondly. Money Market Notice – Transaction duration from 2 to 14 days.

Third. Money Market Term – Duration of transactions from 15 days to 1 year.

— Money market instruments include call money, repurchase agreements, Treasury bills, cash management notes, commercial paper, certificates of deposit, and collateralized borrowing and lending obligations (CBLO).

Therefore, option (A) is the correct answer.

(source: rbi.gov.in)

Question 5

Consider the following statements regarding the Unified Portal for Agricultural Statistics (UPAG):

1. It is a platform designed exclusively for generating crop production estimates.

2. It integrates data from multiple sources, including trade, purchasing and inventory statistics.

3. The portal provides almost real-time agricultural information.

Which of the above statements is true/correct?

(A) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

clarification

– “The Unified Agricultural Statistics Portal (UPAG) is an advanced agricultural data management platform designed to generate crop estimates and integrate with other systems that generate agricultural statistics such as prices, trade, purchases, inventory, etc. It serves as a central hub for near real-time information on crop production, market trends, pricing and other vital agricultural data.” Therefore, statement 3 is correct.

— “UPAg is not exclusively intended for crop production estimates; It also integrates various agricultural statistics such as prices, trade, purchases and inventory. Hence, statement 1 is incorrect and statement 2 is correct.

Therefore, option (B) is the correct answer.

(source: upag.gov.in)

Daily previous test subject wise

Daily quiz on the topic – History, Culture and Social Issues (Week 131)

Daily quiz on the topic – Political system and governance (Week 136)

Daily quiz on the topic – Science and Technology (Week 136)

Daily quiz on the topic – Economics (Week 135)

Daily quiz on the topic – Environment and Geography (Week 135)

Daily quiz on the topic – International Relations (Week 135)

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