Question Discussion & Solution

The correct answer is 9%.

Key Points

• 12th Five Year Plan (2012 - 2017)
  • 12th Five Year Plan 2012-17 as per the draft document released by the Planning Commission aims at a growth rate of 9%.
  • 12th Five Year Plan of the Government of India (2012–17) was India's last Five Year Plan.
  • With the deteriorating global situation, the Deputy Chairman of the Planning Commission Mr. Montek Singh Ahluwalia has said that achieving an average growth rate of 8 percent in the next five years is not possible.
  • The final growth target has been set at 8% by the endorsement of the plan at the National Development Council (NDC) meeting held in New Delhi.
  • The government intends to reduce poverty by 10 percent during the 12th Five-Year Plan.

Additional Information

• NITI Aayog (National Institution for Transforming India)
  • Planning Commission was replaced by a new institution – NITI AAYYOG on January 1, 2015, with emphasis on the ‘Bottom –Up’ approach to envisage the vision of Maximum Governance, Minimum Government, echoing the spirit of ‘Cooperative Federalism.
  • Chairperson: Prime Minister
  • Vice-Chairperson: To be appointed by Prime-Minister
  • Governing Council: Chief Ministers of all states and Lt. Governors of Union Territories.
  • Regional Council: To address specific regional issues, Comprising Chief Ministers and Lt. Governors Chaired by Prime Minister or his nominee.
  • Adhoc Membership: 2 members in ex-officio capacity from leading Research institutions on a rotational basis.
  • Ex-Officio membership: Maximum four from Union council of ministers to be nominated by Prime minister.
  • Chief Executive Officer: Appointed by Prime-minister for a fixed tenure, in the rank of Secretary to Government of India.
  • Special Invitees: Experts, Specialists with domain knowledge nominated by Prime-minister.

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.

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 Orphan children.

• Palanhar Yojana of the Rajasthan government is associated with orphan children.

Key Points

• Palanhar Yojana
  • ​This scheme was launched in 2004-05 for the care and up keeping of Orphan children.
  • A person (normally a near relative) taking responsibility for caring and bringing up such a child is called "Palanhar".
  • In this Scheme `500 per month is given for the children of 0-6 years who go to Anganwari and `1,000 per month is given for school going children of age 6-18 years and an annual grant of `2,000/-.

Additional Information

• Mukhya Mantri Hunar Vikas Yojana
  • This scheme is for higher education/skill development programme to beneficiaries of PalanharYojana and children staying in Government and Non-government Institutional Homes.

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.