Question Discussion & Solution

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 Issue Department of the RBI:

• The Issue Department is concerned with the proper and efficient management of the note issue.
• For the conduct of monetary transactions, the country has been divided into 14 circles of issue, each having an Office of Issue — the branch of the Issue Department.
• Each branch of the Issue Department consists of: (i) the General Department and (ii) the Cash Department, controlled by the currency officer.
  • The General Department deals with resource operations, i.e., arrangement of supply of notes and coins from the presses and Government Mints.
  • The Cash Department deals with cash transactions.
• ​The RBI Offices, where Issue Department is functioning, offer the facility to members of the public to exchange their notes including soiled and mutilated notes and coins including uncurrent or worn-out coins.
• The Bank is committed to providing exchange facilities free of cost at its counters during business hours.
• The Issue Department of the RBI maintains a Minimum Reserve System against the printing of notes.
• Under the Minimum Reserve System, the RBI has to maintain a minimum reserve of Rs. 200 crores, Rs. 115 crores should be in the form of gold coins and the rest in the form of foreign currencies.
• After maintaining the minimum reserve, the RBI can print any number of currency notes as per the requirement of the economy, except one rupee note.
• Since the one rupee note is issued by the Ministry of Finance but is distributed by the RBI through commercial banks. 

Therefore, the Issue Department of the RBI maintains a Minimum Reserve System against the printing of notes.

The correct answer is Sales tax.

Key Points

• The principal source of State's own tax revenues is a sales tax which accounts for about 60 percent of the total.
• The taxation system in India is such that the taxes are levied by the Central Government and the State Governments. Some minor taxes are also levied by the local authorities such as the Municipality and the Local Governments.
• To run the government and manage the affairs of a state, money is required. So the government imposes taxes in many forms on the incomes of individuals and companies.
• Broadly taxes are divided into two categories:
  • Direct Taxes
  • Indirect Taxes
• Indirect Taxes:
  • The term indirect tax has more than one meaning. In the colloquial sense, an indirect tax such as sales tax, a specific tax, value-added tax (VAT), or goods and services tax (GST) is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the consumer).
  • The intermediary later files a tax return and forwards the tax proceeds to the government with the return. In this sense, the term indirect tax is contrasted with a direct tax which is collected directly by the government from the persons (legal or natural) on which it is imposed.
  • Excise duty, value-added tax, and sales tax are included under the GST.

The correct answer is Minimum reserve system.

Key Points

India Currency System:

• In terms of section 22 of the reserve bank of india act, the RBI has been given the statutory function of notes issue on a monopoly basis.
• The note issue in india was originally based upon the " Proportional Reserve System ".
• When it becomes difficult to maintain the re-serve proportionately.
• It was replaced by " Minimum Reserve Systems ".

• According to the RBI amendment act of 1957, the bank should now maintain a minimum reserve of Rs.200 crore worth of gold coins.
• The gold bullion and foreign securities of which the value of gold coin and bullion should be not less than Rs.115 crore. 

The correct answer is Mycem Cement Factory - Katani.

Key Points

• Mycem Cement Factory is situated in Damoh.
  • It was established in 2013.
  • It is a subsidiary of Heidelberg cement of Germany.
• National Newsprint and Paper Mill are situated in Nepanagar, Burahnpur, Madhya Pradesh.
  • It was established in 1948.
  • It is India's first newspaper printing mill.
• Security Paper Mill is situated in Hoshangabad.
  • It was established in 1968.
  • Stamp paper, postal tickets, and currency notepaper are manufactured here.
  • It is under the control of the Ministry of Finance, Government of India.
• Tissue Paper Mill is situated in Indore.
• Kaimur factory is situated in Katani.
  • It was established in 1923.
  • This factory is operated under ACC cement company.