DAY 8 (23-09-23)
Q1. With reference to International Monetary Fund (IMF), consider the following statements :
- IMF was established in 1991.
- IMF can grant loans to only member countries.
- IMF can also grant loans to the private sector of a country.
How many of the above statements are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
Answer: (a)
Explanation:
Statement 1 is incorrect: IMF was formed in 1944 and started functioning in 1945. It works to achieve sustainable growth and prosperity for all of its 190 member countries. It does so by supporting economic policies that promote financial stability and monetary cooperation, which are essential to increase productivity, job creation, and economic well-being. The IMF is governed by and accountable to its member countries.
Statement 2 is correct:The IMF assists only member countries hit by crises by providing them financial support to create breathing room as they implement adjustment policies to restore economic stability and growth.
Statement 3 is incorrect:The IMF only lends to governments, not the private sector or civil society.
Q2. Consider the following statements :
- The concept of fraternity is emphasized to ensure both the dignity of the individual and the unity of the Nation.
- The term secular was added by the 42nd Amendment.
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: (c)
Explanation:
Statement 1 is correct: The concept of fraternity is emphasized to ensure both the dignity of the individual and the unity of the Nation. It is a spirit of brotherhood, and its promotion will help in bringing together people from various religions and races etc. It places a moral obligation on the State to recognize individual personality of the citizens and help achieve human dignity and self-respect.
Statement 2 is correct: Secular was added in the Constitution by the 42nd Amendment. It declares that the state shall have no religion of its own, and all the people in the country are free to profess, propagate and practice any religion and they are also equally entitled to freedom of conscience.
Q3. Consider the following statements regarding Bureau of Energy Efficiency (BEE) :
- It gives financial assistance to institutions for promoting efficient use of energy.
- It is a statutory body under Energy Conservation Act, 2001.
- It works under Ministry of New and Renewable Energy.
How many of the above statements are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
Answer: (b)
Explanation:
Statement 1 is correct: BEE promote use of energy efficient processes, equipment, devices and systems and undertakes measures against the wasteful use of electricity. It also gives financial assistance to institutions for promoting efficient use of energy and its conservation.
Statement 2 is correct: The Government of India set up Bureau of Energy Efficiency (BEE) under the provisions of the Energy Conservation Act, 2001. The mission of the Bureau of Energy Efficiency is to assist in developing policies and strategies with a thrust on self-regulation and market principles, within the overall framework of the Energy Conservation Act, 2001 with the primary objective of reducing energy intensity of the Indian economy.
Statement 3 is incorrect: BEE works under Ministry of Power.
Q4. Consider the following statements :
- Five-Year Plans (FYPs) are centralized and integrated national economic programs.
- Joseph Stalin implemented the first FYP in the Soviet Union in the late 1940s.
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: (c)
Explanation:
Statement 1 and 2 both are correct: Five-Year Plans (FYPs) are centralized and integrated national economic programs. Joseph Stalin implemented the first FYP in the Soviet Union in the late 1920s. Most communist states and several capitalist countries subsequently have adopted them. China and India both continue to use FYPs, although China renamed its Eleventh FYP, from 2006 to 2010, a guideline, rather than a plan, to signify the central government’s more hands-off approach to development.
Q5. Which of the following statements about Tendulkar Committee on poverty estimation in India isincorrect?
(a) It recommended shift from Calorie Consumption based Poverty Estimation
(b) It computed separate poverty line for rural and urban areas.
(c) It included health and education expenditure in the poverty estimation.
(d) It recommended using Mixed Reference Period based estimates.
Answer: (b)
Explanation:
Major Recommendations of Tendulkar Committee –
- Shift from Calorie Consumption based Poverty Estimation: It based its calculations on the consumption of the items like cereal, pulses, milk, edible oil, non-vegetarian items, vegetables, fresh fruits, dry fruits, sugar, salt & spices, other food, intoxicants, fuel, clothing, footwear, education, medical (non-institutional and institutional), entertainment, personal & toilet goods.
- Private Expenditure: Incorporation of private expenditure on health and education while estimating poverty.
- Price Adjustment Procedure: The Committee also recommended a new method of updating poverty lines, adjusting for changes in prices and patterns of consumption (to correct spatial and temporal issues with price adjustment), using the consumption basket of people close to the poverty line.
- Mixed Reference Period: The Committee recommended using Mixed Reference Period based estimates, as opposed to Uniform Reference Period based estimates that were used in earlier methods for estimating poverty.
- Uniform Poverty line Basket: Unlike Alagh committee (which relied on separate PLB for rural and urban areas), Tendulkar Committee computed new poverty lines for rural and urban areas of each state based on the uniform poverty line basket and found that all India poverty line (2004-05) was:
- ₹446.68 per capita per month in rural areas
- ₹578.80 per capita per month in urban areas