[CSP-2020] Solutions – Diagnostic Test 5

  • Here are the solutions to Diagnostic Test 5.

  • Award yourself 2 marks for every correct answer and take away -0.66 for every wrong answer.

Ans 1 (b)

The National Institution for Transforming India (NITI) Aayog has launched Women Entrepreneurship Platform (WEP) on the occasion of International Women’s day (March 8, 2018).

The correct answer is: 2 only

Ans 2 (c)

India has contributed additional $1 million to India-UN Development Partnership Fund, earmarked for South-South cooperation. The contribution aims to intensify its partnerships with other developing countries in south. India has pledged multi-year contribution of $100 million to the fund established in June 2017. India has already provided $6 million within the seven months since launch of fund. The fund was set up on 9 June 2017 on occasion of the World Oceans Day as a partnership between India and United Nations Office for South-South Cooperation (UNOSSC). It will be utilized to carry out country-level projects that would be catalytic towards achieving 17 sustainable development goals (SDGs) of 2030 Agenda. The fund is managed by UNOSSC. It prioritises projects reducing poverty and hunger, improving health, education and equality, and expanding access to clean water and energy and livelihoods. It mainly focuses on transformational sustainable development projects in Least Developed Countries (LDCs) and Small Island Developing States. The projects under fund are implemented by UN agencies in close collaboration with partnering governments.

The correct answer is: Both 1 and 2

Ans 3 (a)

With a view to improve the Governance of Public Sector Banks (PSBs), the Government had decided to set up an autonomous Banks Board Bureau. The Bureau will recommend for selection of heads – Public Sector Banks and Financial Institutions and help Banks in developing strategies and capital raising plans. The Government has announced the constitution of Banks Board Bureau which will have three ex-officio members and three expert members in addition to Chairman. All the Members and Chairman will be part time. The BBB, started functioning from 1st April, 2016.

The correct answer is: 1 only

Ans 4 (c)

Women, Business and the Law (WBL) is a World Bank Group project collecting unique data on the laws and regulations that restrict women’s economic opportunities.

The correct answer is: World Bank

Ans 5 (d)

The Union government has declared inclusion of 17 new minor forest produce (MFP) under the government’s minimum support price scheme. The new MFP under the scheme includes Mahua flowers (dried), Tejpatta (dried) and Kokum (dry). In theory, MSP is the minimum price set by the Government at which farmers can expect to sell their produce for the season. When market prices fall below the announced MSPs, procurement agencies step in to procure the crop and ‘support’ the prices. The Cabinet Committee of Economic Affairs announces MSP for various crops at the beginning of each sowing season based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).

The correct answer is: Neither 1 nor 2

Ans 6 (c)

The 6 member Monetary Policy Committee (MPC) constituted by the Central Government as per the Section 45ZB of the amended RBI Act, 1934. Governor of the Reserve Bank of India is the ex-officio chairperson of the MPC. The government nominees will have a four-year term “or until further orders, whichever is earlier”.

The correct answer is: 1 and 2 only

Ans 7 (d)

The total stock of money in an economy system has our components:

Notes and Coins with Public (other than Banks)

Notes and Coins with Commercial Banks

Deposits of the Commercial Banks with the Central Bank

Demand Deposits with Commercial Banks

The correct answer is: 1, 2 and 3

Ans 8 (b)

Legal Reserves : CRR (with the Central Bank) + SLR (with the commercial banks)

The correct answer is: commercial banks and the central bank

Ans 9 (d)

Banking Correspondents are are individuals/entities engaged by a bank in India for providing banking services in unbanked / under-banked geographical territories. They work as an agent of the bank and substitutes for the brick and mortar branch of the bank.

Megalopolis is a very large, heavily populated city or urban complex.

Mumbai, Chennai, Delhi, Kolkata, Hyderabad, Bengaluru, Pune, and Ahmedabad are among the designated metro cities in India.

A central business district (CBD) is the commercial and business center of a city.

Being at the centre-stage of economic activities, none of the three are likely to be unbanked or under-banked and BCs can be expected to be conspicuous by their absence.

The correct answer is: None of the above

Ans 10 (a)

The information given is symptomatic of a weakening of the currency. However, that the economy is in a free fall is too strong a statement to be inferred from the given information.

The correct answer is: 1 only

Ans 11 (c)

It is a composite indicator that measures the short term changes in the volume of production of a basket of industrial products during a given period with respect to the base year 2011-12.

It is compiled and published monthly by CSO.

The correct answer is: Both 1 and 2

Ans 12 (c)

The WTO has many roles: it operates a global system of trade rules, it acts as a forum for negotiating trade agreements, it settles trade disputes between its members and it supports the needs of developing countries.

The correct answer is: Both 1 and 2

Ans 13 (d)
All the statements are correct.
The correct answer is: 1, 2 and 3
Ans 14 (a)
The Sagarmala Development Company Limited (SDCL) has been incorporated (on 31st August 2016) under the Companies Act, 2013, after obtaining approval of the Union Cabinet on 20th July 2016. SDCL has been set up under the administrative control of Ministry of Shipping 
The correct answer is: 1 only
Ans 15 (d)
They are professional investors who invest other people’s money in high growth potential start-ups and companies.
The correct answer is: Neither 1 nor 2
Ans 16 (b)
Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia.
The correct answer is: 2, 3 and 4
Ans 17 (d)
The Securities and Exchange Board of India was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.
The Central Board of Direct Taxes is a statutory authority functioning under the Central Board of Revenue Act, 1963.
The Pension Fund Regulatory & Development Authority Act was passed on 19th September, 2013 and the same was notified on 1st February, 2014. PFRDA is regulating NPS, subscribed by employees of Govt. of India, State Governments and by employees of private institutions/organizations & unorganized sectors.
The correct answer is: 1, 2 and 3
Ans 18 (d)
‘Quad’ is an informal consultative mechanism between India, US, Australia and Japan.
The correct answer is: Singapore
Ans 19 (c)
The POSHAN Abhiyaan is a multi-ministerial convergence mission to ensure a malnutrition free India by 2022.
Ayushman Bharat aims to provide universal and affordable access to good quality health care services.
The correct answer is: Both 1 and 2
Ans 20 (d)
SEBI introduced the measure to keep a tab on securities that witness an abnormal price rise that is not commensurate with financial health and fundamentals of the company such as earnings, book value, price to earnings ratio among others.
The correct answer is: SEBI
Ans 21 (a)
To offset disability and attract investments in Electronic manufacturing, Modified Special Incentive Package Scheme (M-SIPS) was notified on 27.7.2012.
The correct answer is: Electronics
Ans 22 (c)
Statutory Liquidity Ratio:
The percentage of Net Time and Demand Liabilities kept by the bank in the form of liquid assets.
Time Liabilities is the amount payable to the depositors after a specific time
Demand Liabilities is the amount payable to the depositors when the demand arises
The correct answer is: Both 1 and 2
Ans 23 (c)
Both the statements are correct.
The correct answer is: Both 1 and 2
Ans 24 (b)
The Extended Fund Facility is lending facility of the Fund of the IMF and it was established in 1974 to help countries address medium- and longer-term balance of payments problems. The EFF is prescribed for a country who is suffering from balance of payment problem caused by structural weaknesses and who need fundamental economic reforms. The use of the facility has increased substantially in the recent crisis period.
The correct answer is: 2 only
Ans 25 (a)
In response to mounting concern over money laundering, the Financial Action Task Force on Money Laundering (FATF) was established by the G-7 Summit that was held in Paris in 1989. 
The FATF’s decision making body, the FATF Plenary, meets three times per year.  
The correct answer is: 1 only
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Categories: CSP_GS I

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