Question Discussion & Solution

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 Option 4.

• POLICIES AND PROGRAMMES TOWARDS POVERTY ALLEVIATION
  • ​The government’s approach to poverty reduction was of three dimensions.
    • Growth-oriented approach
      • ​It is based on the expectation that the effects of economic growth — rapid increase in gross domestic product and per capita income — would spread to all sections of society and will trickle down to the poor sections also.
      • Rapid industrial development and transformation of agriculture through a green revolution in select regions would benefit the underdeveloped regions and the more backward sections of the community. 
    • Poverty alleviation programs
      • Expanding self-employment programs and wage employment programs are being considered as the major ways of addressing poverty.
      • For example - Rural Employment Generation Programme (REGP), Prime Minister’s Rozgar Yojana (PMRY), and Swarna Jayanti Shahari Rozgar Yojana (SJSRY), Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA).
    • Providing minimum basic amenities to the people
      • ​India was among the pioneers in the world to envisage that through public expenditure on social consumption needs — provision of food grains at subsidized rates, education, health, water supply, and sanitation—people’s living standards could be improved.
      • Three major programs that aim at improving the food and nutritional status of the poor are the Public Distribution System, Integrated Child Development Scheme, and Midday Meal Scheme.
      • Pradhan Mantri Gram Sadak Yojana and Valmiki Ambedkar Awas Yojana are also attempted in developing infrastructure and housing conditions.
      • Pradhan Mantri Jan-Dhan Yojana is available in which people in India are encouraged to open bank accounts.

The correct answer is Cooperative farming.

Key Points

• Efficiency and effectiveness are two wings of Productivity.
• These two are essential for a productive industry.
• Low productivity occurs due to lack of adequate machinery, lack of finances for farmers, lack of good quality seeds and fertilizers and ownership of land.
• Other factors include:
  • Inadequate inputs availability
  • Sub-division and fragmentation of land holdings
  • Poor finance and marketing facilities
• The co-operatives and other institutional agencies have not been able to eliminate the village money-lenders.
• Storage facilities for farmers are not still available to preserve their agricultural products for a better price.

The correct answer is 2011-12.

Key Points

• The Index of Industrial Production (IIP)
  • It is a short-term macroeconomic indicator widely used in measuring the industrial growth of the State.
  • The index indicates the relative change over time in the volume of production in the industrial sector and it is an effective tool to measure the trend of current industrial production.
  • Presently IIP is constructed based on the base year 2011-12. Hence, Option 3 is correct.
  • The Directorate of Economics and Statistics, Department of Planning, Rajasthan has been compiling/releasing an index of industrial production for the Rajasthan State since 1971 as per the guidelines of the Central Statistical Office (CSO), Govt. of India.
  • New base year IIP series based on 156 items/product groups for the manufacturing sector.
  • Shifting of the base year 2011-12 are in process to get monthly Production data from April 2011 onwards for a selected item for selected units in the prescribed format given by C.S.O.
  • Three major sectors in IIP 
    • Manufacturing:- For Manufacturing Sector the Production data is collecting for selected items from selected industrial units through district statistical officer’s and Now IIP web Portal has been developed for the collection of regular data from districts through an online system.
    • Mining:- Mining sector production data is supplied by the Indian Bureau of Mines, (IBM) Nagpur.
    • Electricity:- Electricity sector generation figures furnished by the Central Electricity Authority New Delhi.

The correct answer is Kota.

Key Points

• Takli irrigation cum drinking water supply project is on river Takli.
• It is a tributary of Ajmer River as well as Kalisindh River.
• The dam site is located near village Dhankya in the Kota district.
• The project would provide an irrigation facility in an area of 7,386 hectares.
• It provides a drinking water facility to 4 villages and 2 towns of Ramganjmandi Tehsil, Kota district.
• The estimated cost of the project is Rs. 51.81 crores.