RBI Grade B Economic and Social Issues (ESI) Questions | Test-7

Correct Answer: A. 1 and 2

Explanation- International Energy Agency (IEA) was established in 1974 as per framework of the OECD.  IEA is an autonomous intergovernmental organisation. Its mission is guided by four main areas of focus: energy security, economic development, environmental awareness, and engagement worldwide. Its headquarters (Secretariat) is in Paris, France. Currently, it has 30 members.

Correct Answer – C. Ashok Dalwai committee

Explanation- Ashok Dalwai committee – The government had appointed an expert committee headed by Ashok Dalwai in 2016 to look into the entire agriculture ecosystem in the country to suggest ways and means to reform it so that farmers’ income can be doubled by 2022. The committee headed by Ashok Dalwai has come out with 14 voluminous reports that deal with all aspects of agriculture including agri inputs, risk management, post-harvesting and agri-logistics. The report pertains to three areas — productivity gains, reduction in cost of cultivation, and remunerative prices. One of the important recommendations made by the committee is that the concept of one-India market may benefit from placing agricultural marketing under the Concurrent List (in the Seventh Schedule of the Constitution).

Correct Answer – C. $250,000

Explanation:RBI has permitted Indian residents to make remittances to international financial services centres (IFSCs) established here under the liberalized remittance scheme (LRS). Till now, only global participants were allowed to invest in funds set up in Indian IFSCs. The move is likely to benefit retail investors, and high net-worth individuals (HNIs). Under the LRS, an Indian individual can send up to $250,000 per year overseas for travel, education and medical care as well as for the purchase of shares. Gujarat International Finance Tec-City Co. Ltd is India’s first IFSC.

Correct Answer – C. Rs 20,000 crore

Explanation- The Govt is set to introduce a Development Financial Institution (DFI). Rs 20,000 crore will be provided to capitalise the new DFI, with an aim to have a lending portfolio of Rs 5 lakh crore in 3 years. Debt financing through the infrastructure investment trust (InvIT) and real estate investment trust (REIT) routes will be enabled through necessary amendments in the rules.

Correct Answer: D. Food Inflation

Explanation- Headline CPI inflation remained high during COVID-19 induced lockdown period and subsequently, due to the persistence of supply side disruptions. Rise in inflation was mostly driven by food inflation, which increased to 9.1% during 2020-21 (Apr-Dec). Food inflation is driven primarily by:

• Supply-side factors.
• Changes in CPI-C anchor inflation expectations
• Several components of food inflation are transitory with wide variations within the food and beverages group
• Relatively higher weight of food items in the index.

Correct Answer: C. 2 and 3

Explanation: Indian Army has proposed ‘Tour of Duty’ model of recruitment that would let young individuals voluntarily serve for a temporary period of three years. It will be a voluntary engagement. It will shift the concept of permanent service/job in the Armed Forces, towards ‘internship’/temporary experience for three years.

Correct Answer – A. Defence

Explanation: Central government has unveiled production-linked incentive (PLI) scheme to encourage domestic manufacturing investments in 10 more sectors. Sectors includes: Food processing, telecom, electronics, textiles, speciality steel, automobiles and auto components, solar photo-voltaic modules and white goods, such as air conditioners and LEDs.

Correct Answer – D. A, B and C

Explanation- The Constitution (Eighty-sixth Amendment) Act, 2002 inserted Article 21-A in the Constitution of India to provide free and compulsory education of all children in the age group of six to fourteen years as a Fundamental Right in such a manner as the State may, by law, determine. The Right of Children to Free and Compulsory Education (RTE) Act, 2009, which represents the consequential legislation envisaged under Article 21-A, means that every child has a right to full-time elementary education of satisfactory and equitable quality in a formal school which satisfies certain essential norms and standards. Article 21-A and the RTE Act came into effect on 1 April 2010.

Correct Answer – A. FAO

Explanation-Food and Agriculture Organization (FAO) of the United Nations has launched a Food Coalition to increase resilience of agricultural food systems and ensure global food access. It is proposed by Italy and led by Food and Agriculture Organization. It will work as a network of networks and a multi-stakeholder coalition for a unified global action to ensure food access and increase the resilience of agricultural food systems in response to COVID-19.

Correct Answer – C. Poor economic growth

Explanation- Stagflation is a time of economic stagnation combined with inflation. This type of inflation can lead to economic adversity: combining poor economic growth, high unemployment, and highinflation rate all in one.