UPSC Static Quiz, 17 June 2023 – Believers IAS Academy

Answer: c
Explanation:
•Nominal interest rate used is the annual weighted average interest rate on Central Government securities (published by RBI).
•An increase in the general government debt-to-GDP ratio would increase the interest rate. However Economic Survey 2022-23 (ESI) says that in Indian Scenario, an increase in the general government debt-to-GDP ratio correlates with lower (not higher) nominal interest rates.
•ESI says that, In the last three decades, there is a strong negative correlation between debt-to-GDP ratio and nominal interest rates in India. So, statement 1 is not correct.
•According to ESI, countries growing their GDP at high rates, growth leads to lowering of their public debt as measured by their debt-to-GDP ratios but not vice versa. In contrast, when the GDP growth rate is low, no such causal relationship manifests between growth and public debt. So, statement 2 is not correct.
•As shown in the graph below, India’s public debt-to GDP ratio has been significantly low compared to high global debt levels. So, statement 3 is correct.

Answer: c
Explanation:
•In Union Budget 2023-24, Finance Minister allocated Rs 1.25 lakh crores for agriculture. Agriculture was one of the seven major priorities of the budget. During the Budget presentation in the parliament, the finance minister announced that Government of India will set up Agriculture Accelerator Fund.
•The Agriculture Accelerator Fund will be set up to encourage agri-startups by young entrepreneurs, for which Rs 500 crore has been allocated over a period of 5 years. Agriculture Accelerator Fund comes under Ministry of Agriculture & Farmers Welfare. (Statement 1 is incorrect)
•Under the programme, financial support is provided to entrepreneurs in the field of agriculture & allied sector to set up their startups in rural areas. It will focus only on farmers and the challenges faced by them. (Statement 2 is correct)
•For this, a financial support of Rs. 5.00 lakh is provided at the idea/pre seed stage and Rs. 25 lakhs at the seed stage.
•Start-ups are trained and incubated at various Knowledge Partners (KPs) and RKVY Agribusiness Incubators (R-ABIs) appointed under the programme. The technologies, products and services developed by these startups are evaluated by KPs and R-ABIs in terms of their utility and impact in agriculture and allied sectors. (Statement 3 is correct)

Answer: b
Explanation:
•SEBI has introduced the ‘Graded Surveillance Measure’ to keep a tab on the securities/shares of those companies which witness an abnormal price rise that is not commensurate with the financial health and fundamentals of the company.
•The underlying principle behind the graded surveillance framework is to alert and protect investors trading in a security, which is seeing abnormal price movements. SEBI may put shares of companies under the measure for suspected price rigging.

Answer: b
Explanation:
As per Ministry of Commerce & Industry (DPIIT), an entity shall be considered as a Startup:
•Up to a period of ten years from the date of its incorporation. (Statement 1 is correct).
•Turnover of the entity since its incorporation should not exceed Rs. 100 crores in any Financial Year. (Statement 2 is incorrect).
•The entity is working towards innovation, development or improvement of products or process or services, or if it is a scalable business model with a high potential of employment generation and wealth creation.
•In August 2020, RBI included ‘Startups’ under priority sector lending. (Statement 3 is correct).

Answer: d
Explanation
•The Paris Club is an informal group of creditor countries that was formed in 1956 to find solutions to debt-related issues facing debtor countries.
•The Paris Club is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by debtor countries. As debtor countries undertake reforms to stabilize and restore their macroeconomic and financial situation, Paris Club creditors provide an appropriate debt treatment. Paris Club creditors provide debt treatments to debtor countries in the form of rescheduling, which is debt relief by postponement or, in the case of concessional rescheduling, reduction in debt service obligations during a defined period (flow treatment) or as of a set date (stock treatment). So, statement 1 is correct.
•The members are Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Israel, Japan, Netherlands, Norway, Russia, South Korea, Spain, Sweden, Switzerland, the United Kingdom and the United States. All 22 are members of the group called Organisation for Economic Co-operation and Development (OECD). So, statement 2 is not correct.
•IMF and World Bank are observer groups of Paris Club. Negotiations by the Paris Club are supported by the IMF and the World Bank. So, statement 3 is correct.
•The Paris Club, an informal group of creditor nations, will provide financial assurances to the International Monetary Fund on Sri Lanka’s debt. So, statement 4 is correct.