Question Discussion & Solution

The correct answer is Crude oil.

Important Points

• An import is a good or service bought in one country that was produced in another.
• Imports and exports are components of international trade.
• If the value of a country's imports exceeds the value of its exports, the country has a negative balance of trade (BOT), also known as a trade deficit.

Key Points

• India produces just 20% crude oil of its demand and rests 80% is imported from abroad.
• Crude oil and other related products account for around 22% total import of India.
• The second spot is obtained by the capital goods (machinery, base metal, transport equipment) which accounts for 19.2% of the total Indian imports.
• The third spot is obtained by the import of gems and jewellery (16.8 per cent of the total imports), the fourth and fifth spot is secured by the chemical & related products (12.7%), and electronic goods (11.4%) respectively.

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 2017.

Key Points

• Madhya Pradesh Industrial Development Corporation Limited(MPIDC) is the Single Window Secretariat for Investment Promotion and Facilitation of the state.
• MPIDC has launched an Integrated New Venture Establishment Portal (INVEST), which is the Single Window Portal for the state. 
• INVEST Portal is being developed for monitoring of entire life cycle of investment projects, right from receipt of the ‘Intention to Invest’ to grounding and completion.
• INVEST is acting as a one-stop solution for any investor wanting to establish & operate a business in the state.
• Now investors would not be required to visit different state department portals, rather they can avail various services/approvals required for setting up their business through INVEST Portal.
• The portal ensures time-bound delivery of facilities and permissions through continuous review/monitoring.
• The development of INVEST Portal started in April 2017.
• Department of Industrial Policy and Investment Promotion, the Government of Madhya Pradesh is responsible for the all-around industrial development of the State.
• The department facilitates the establishment of industries to achieve employment generation and utilization of local resources.
• The department acts as a catalyst to modernize and strengthen industries of the State to make them globally competitive. 
• INVEST Portal, which is being developed by DIP&IP to works as an Investor lifecycle tool, will also cover MSME units

The correct answer is Option 4.

Key Points

• The new industrial policy, announced by the government on 23 July 1991 had initiated a bigger process of economic reforms in the country, seriously
  motivated towards the structural readjustment naturally obliged to ‘fulfil’ IMF conditions.
• The major highlights of the policy are as follows:
  • De-reservation of the Industries. Hence, statement 1 is correct.
  • De-licencing of the Industries. Hence, statement 3 is correct.
    • There are only five industries that carry the burden of compulsory licensing-
      • Aerospace and defence-related electronics
      • Gun powder, industrial explosives, and detonating fuse
      • Dangerous chemicals
      • Tobacco, cigarette and related products
      • Alcoholic drinks
  • Abolition of the monopolistic and restrictive trade practices (MRTP) Limit. Hence, statement 2 is correct.
  • Promotion to Foreign Investment.
  • Foreign Exchange Regulation Act (FERA) Replaced by the Foreign Exchange Management Act (FEMA). Hence, statement 4 is incorrect.

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