Question Discussion & Solution

The correct answer is 1, 2 and 3.

Key Points

• Consultative Group for International Agricultural Research (CGIAR)
  • The international agricultural research system, mainly the Consultative Group for International Agricultural Research (CGIAR) has been a useful ally of the
    national system. Hence statement 1 is correct.
  • However, it has undergone significant change, in terms of funding, organization and research thrusts. 
• Indian Council of Agricultural Research (ICAR)
  • It was established on 16 July 1929 as a registered society under the Societies Registration Act, 1860.
  • It is an autonomous organization under the Department of Agricultural Research and Education (DARE), Ministry of Agriculture and Farmers Welfare, Government of India. Hence statement 2 is correct.
  • It is headquartered in New Delhi. With 102 ICAR institutes and 71 agricultural universities spread across the country, this is one of the largest national agricultural systems in the world.
  • It is the apex body for coordinating, guiding and managing research and education in agriculture including horticulture, fisheries and animal sciences in the entire country.
• Krishi Vigyan Kendra (KVK)
  • KVK is an integral part of the National Agricultural Research System (NARS). The first KVK was established in 1974 at Puducherry. Hence statement 3 is not correct.
  • The mandate of KVK is technology assessment and demonstration for its application and capacity development.
  • It aims at assessment of location-specific technology modules in agriculture and allied enterprises, through technology assessment, refinement and demonstrations.
  • KVKs also produce quality technological products (seed, planting material, bio-agents, livestock) and make them available to farmers.

The correct answer is Cash reserve ratio.

Key Points

• The Cash Reserve Ratio (CRR) refers to the share of Net Demand and Time Liabilities that banks have to hold as balances with the RBI.
• The objective of CRR is to keep inflation under control.
• During high inflation in the economy, the central bank raises the CRR to lower the bank’s loanable funds.
• The current Cash Reserve Ratio is 4.00% (as of June 2021).
• The current Reverse repo rate is 3.35% (as of June 2021).
• The Central bank has the authority to regulate monetary policies.
• The Ministry of Finance has the authority to regulate fiscal policies.

Additional Information

• Marginal Standing facility:
  • MSF is a facility under which scheduled commercial banks can borrow an additional amount of overnight money from the RBI by dipping into their SLR portfolio up to a limit at a penal rate of interest. 
  • This provides a safety wall against unanticipated liquidity shocks to the banking system.
  • The MSF is a scheme launched by RBI in 2011-12.
  • Under MSF banks can borrow funds up to 1% of their net demand and time liability.
  • The minimum amount for which RBI receives application is Rs. 1 crore and afterwards in multiples of rupees 1 crore.
• ​SLR is a kind of reserve that commercial banks need to maintain before crediting their money to borrowers.
  • Regulating the SLR rates is a component of RBI's monetary policy.
  • Reserve Bank of India sets the limit for banks (under Banking Regulation Act, 1949) to hold a certain proportion of their assets as SLR.
• Repo Rate:- It is a rate at which the central bank (RBI) lends money to its clients against the government securities.
• Reverse Repo- It is the rate at which the central bank (RBI) borrows money from its clients.
  • Reverse Repo is used in India as a tool in which banks will give their surplus fund to RBI for a short-term period and earn money.
  • The repo rate is always higher than the reverse repo rate.
  • Repo and Reverse repo rates are decided by the Monitory policy committee (MPC) of RBI.

The correct answer is Neither 1 nor 2.

Key Points

• Agriculture is the backbone of the Indian economy.
• Over the years, there has been a continuous decline in the share of the agriculture and allied activities sector to total GDP from around 52% in FY1951 to around 14% in FY2014.
• Agriculture is the main source of employment generation in India.
• It still provides more than 50% employment. In absolute terms, the working population engaged in the agriculture sector increased from 97.2 million to 234.1 million during 1950-2011.
• In India, the farming community uses the mixed crop-livestock farming system — cattle, goats, fowl are the widely held species.
• Livestock production provides increased stability in income, food security, transport, fuel, and nutrition for the family without disrupting other food-producing activities.
• The distribution of livestock in India:
  • Poultry accounts for the largest share with 58 per cent followed by cattle and buffaloes (24 per cent), goats and sheep (16 per cent), pigs (1 per cent).
  • Other animals which include camels, asses, horses, ponies, and mules are in the lowest rung. Hence, statement 1 is not correct.
• In the fisheries sector, presently, fish production from inland sources contributes about 64 per cent to the total value of fish production, and the balance of 36 per cent comes from the marine sector (sea and oceans).
• Today total fish production accounts for 0.8 per cent of the total GDP. In India, West Bengal, Andhra Pradesh, Kerala, Gujarat, Maharashtra, and Tamil Nadu are major fish-producing states. Hence, statement 2 is not correct.

The correct answer is 2005-06.

• Magra Regional Development Programme was started in 2005-06.

Key Points

• ​Objective-
  • Social and economic development of the Magra region.
  • Infrastructure development in this region like- enhance health and education facilities in this region.
  • Employment generation in this region.
• Covered districts- Ajmer, Bhilwara, Chittorgarh, Pali, Rajasamand
• Total Panchayat Samiti covered- 16
• Total village covered- 1715
• Financed by - State Government

The correct answer is Inflation.

Key Points

• Inflation:
  • ​Inflation is an increase in the level of prices of the goods and services that households buy.
  • It is measured as the rate of change of those prices.
  • The well-known indicator of inflation is the Consumer Price Index (CPI), which measures the percentage change in the price of a basket of goods and services consumed by households.
  • Inflation refers to the increase in the prices of the goods and services of daily use, such as food, housing, clothing, transport, recreation, consumer staples, etc.
  • Inflation is calculated in India by the Ministry of Statistics and Program Implementation.

Additional Information

• Deflation: 
  • ​It is also called negative inflation.
  • During a deflationary period, prices fall in the same way as they arise in the case of inflation: continuously and in a generalized manner.
• Stagflation:
  • ​Stagflation is the extreme economic situation, a peculiar combination of stagnant growth and rising inflation leading to high unemployment.
  • Causes of Stagflation:
    • ​Government expansion of the money supply.
    • Decreasing level of Productivity.
    • Supply-side shock.
    • Increasing structural Unemployment.
    • Central bank raising Interest rates.
    • A sudden increase in oil prices.
  • Hyperinflation:​
    • It is the situation when the price of goods and services rises uncontrollably over a definite time period.
    • It is also called Rapid Inflation.