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UPSC Essentials introduces its new initiative of subject-wise quizzes. These quizzes are crafted to aid in revising crucial topics from the static portion of the syllabus. Each day, we will focus on a different subject. Take today’s quiz on Economy to evaluate your progress. Make sure to return tomorrow for solving the MCQs on International Relations. Don’t forget to review the answers and explanations provided at the end of the quiz.
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QUESTION 1
The term “Green Shoe Option” recently made headlines. It corresponds to
(a) It helps to measure the levels of greenhouse gas emissions
(b) It is the practice of creating structures and using processes that are environmentally responsible.
(c) Investment that promotes environmentally positive activities.
(d) It is primarily used at the time of IPO or listing of any stock to ensure a successful opening price.
For the Interest Subvention Scheme (ISS), consider the following statements:
1. The Government of India has reduced the interest subvention from 2 per cent to 1.5 per cent, availed on short-term loans for FY 2022-23 and 2023-24.
2. It does not apply to animal husbandry and fisheries.
3. The scheme was announced during the budget session of 2006-07.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
QUESTION 3
About the Agriculture Accelerator Fund, consider the following statements:
1. It aims at bringing innovative and affordable solutions for challenges faced by farmers.
2. Modern technologies to transform agricultural practices.
3. Financial support is provided to entrepreneurs in the field of agriculture and allied sector.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
QUESTION 4
This crop is mostly grown in India’s Western Ghats, which are located in the states of Tamil Nadu, Kerala, and Karnataka. In the non-traditional regions of Andhra Pradesh, Odisha, and the North East states, crop farming is also growing quickly. It is mostly an export-oriented commodity, with 65–70% of the crop produced in the nation going elsewhere and the remaining portion being consumed domestically.
The above lines refer to which of the following crops?
(a) Coffee
(b) Cashew
(c) Groundnut
(d) Clove
QUESTION 5
Concerning the Atal Pension Yojna, consider the following statements:
1. The scheme was introduced in the year 2016 to provide social security to workers mainly in the unorganised sector.
2. Income taxpayers can enroll in the government’s social security scheme Atal Pension Yojana.
3. It is applicable to all citizens of India aged between 18-40 years.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
ANSWERS TO THE MCQs
1. (d)
FYI:
— A green shoe option is nothing but a clause contained in the underwriting agreement of an IPO.
— This option permits the underwriters to buy up to an additional 15% of the shares at the offer price if public demand for the shares exceeds expectations and the share trades above its offering price.
— Green shoe option is also known as an over-allotment provision.
— This option is primarily used at the time of IPO or listing of any stock to ensure a successful opening price.
— Accordingly, companies can intervene in the market to stabilise share prices during the first 30 days’ time window immediately after listing.
— It involves the purchase of equity shares from the market by the underwriting syndicate in case the share price fall below the issue price or goes significantly above the issue price.
— The green shoe option acts as a price stabilising mechanism. From the investor’s point of view, an IPO with a green shoe option ensures that after listing the share price will not fall below its offer price.
Therefore, option (d) is the correct answer.
2. (b)
FYI:
— The interest subvention scheme was announced by the Government of India during the budget of 2006-07. The scheme came into force with effect from Kharif 2006-07. Hence, statement 3 is correct.
— The amount of subvention was to be calculated on the amount of crop loan from the date of disbursement up to the actual date of repayment of the crop loan by the farmer or up to the due date of the loan fixed by the banks, whichever is earlier, subject to a maximum period of one year.
— The Government of India has reduced the interest subvention from 2 per cent to 1.5 per cent, availed on short-term loans for FY 2022-23 and 2023-24. Hence, statement 1 is correct.
— The Government of India has extended the Interest Subvention Scheme on KCC issued to crop loan farmers to the KCC issued to Animal Husbandry and Fisheries farmers from 2018-19. Hence, statement 2 is not correct.
— Interest subvention of 2 per cent to banks and 3 per cent to farmers towards Prompt Repayment incentive is extended on short-term loans up to Rs 2 lakh to animal husbandry and fisheries.
Therefore, option (b) is the correct answer.
(Other Source: http://www.nabard.org)
3. (c)
FYI:
— During the Budget Speech of 2023-2024, the Finance Minister of India said “An agriculture accelerator fund will be set up to encourage agri-startups by young entrepreneurs in rural areas. Hence, statement 3 is correct.
— The fund will aim at bringing innovative and affordable solutions for challenges faced by farmers. Hence, statement 1 is correct.
— The Government of India, Department of Agriculture & Farmers’ Welfare (DA&FW) is committed to the welfare of the farmers. It includes modernizing the agricultural systems by incorporating new and innovative solutions brought by agri-entrepreneurs. Hence, statement 2 is correct.
— Accordingly, DA&FW is implementing the “Innovation and Agri-Entrepreneurship Development” programme under Rashtriya Krishi Vikas Yojana (RKVY) from 2018-19 to promote innovation and agri-entrepreneurship by providing financial support and nurturing an incubation ecosystem in the country.
Therefore, option (c) is the correct answer.
4. (a)
FYI:
— In India, coffee is traditionally grown in the Western Ghats spread over Karnataka, Kerala and Tamil Nadu.
— The cultivation of coffee is also expanding rapidly in the non-traditional areas of Andhra Pradesh, Odisha and the North East states.
— Coffee is predominantly an export-oriented commodity and 65% to 70% of coffee produced in the country is exported while the rest is consumed within the country.
— Indian coffee has created a niche for itself in the international market and Indian Coffees are earning high premiums, particularly Indian Robusta which is highly preferred for its good blending quality. Arabica Coffee from India is also well-received in