UPSC Prelims MCQs II Indian Economy: Economic Survey and budget 2020-21 II

Practice Important Current Affairs and Static Questions for IAS Prelims 2020 General Studies Paper I (GS), Are you preparing for UPSC IAS Prelims 2020? Have a look at these questions that cover sections like Current affairs, Geography, History, Polity, Economy, Science, Technology, Culture, Environment, and others. We have provided 10- Important Current Affairs and Static General Studies Model Test Paper along with their answers and explanations. UPSC Prelims MCQs II Indian Economy: Economic Survey and budget 2020-21 II

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UPSC Prelims MCQs II Indian Economy: Economic Survey and budget 2020-21 II

Q1. With reference to India’s Position in the Global Human Development Index, consider the following statements:

1. India has improved the HDI ranking in the last two consecutive years.

2. In terms of average annual HDI growth, India is behind China, Russia, and Brazil.

Which of the statements given above is/are correct?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Answer: a

Statement 1 is correct. India’s rank in the Human Development Index (HDI) improved to 129 in 2018 from 130 in 2017, out of a total of 189 countries.

The value of HDI for India reached to 0.647 in 2018. India’s ranking was 131 in 2016 for the year of 2015, in the Human Development Index (HDI).

Statement 2 is incorrect. With 1.34 per cent average annual HDI growth, India is among the fastest-improving countries, and ahead of China (0.95), South Africa (0.78), Russian Federation (0.69) and Brazil (0.59) (Figure 1). To sustain this momentum in human development and to further accelerate it, the role of the public sector in the delivery of social services such as education and health is critical.

Q2. With reference to the Pradhan Mantri Jan Arogya Yojana, consider the following statements:

1. It was launched as per the recommendation of the National Health Policy 2017.

2. The households included are based on the deprivation and occupational criteria of Socio-Economic Caste Census 2011 (SECC 2011) for rural and urban areas respectively.

3. Under this scheme, there is no restriction on family size, age or gender.

Which of the statements given above is/are correct?

a) 2 only

b) 1 and 3 only

c) 3 only

d) 1, 2 and 3

Answer: d

All the statements are correct.  Ayushman Bharat Yojana is a flagship scheme of Government of India which was launched as per the recommendation of the National Health Policy 2017. It aims to achieve the vision of Universal Health Coverage (UHC). This initiative has been designed to meet Sustainable Development Goals (SDGs) and its underlining commitment, which is to “leave no one behind.”

Ayushman Bharat adopts a continuum of care approach, comprising of two inter-related components, which are: 

1. Health and Wellness Centres (HWCs)

2. Pradhan Mantri Jan Arogya Yojana (PM-JAY)

Ayushman Bharat PM-JAY is the largest health assurance scheme in the world which aims at providing a health cover of Rs. 5 lakhs per family per year for secondary and tertiary care hospitalization to over 10.74 crores poor and vulnerable families (approximately 50 crore beneficiaries) that form the bottom 40% of the Indian population. There is no restriction on the family size, age or gender.

The households included are based on the deprivation and occupational criteria of Socio-Economic Caste Census 2011 (SECC 2011) for rural and urban areas respectively.

PM-JAY envisions to help mitigate catastrophic expenditure on medical treatment which pushes nearly 6 crore Indians into poverty each year.

The cover under the scheme includes all expenses incurred on the following components of the treatment:

1.        Medical examination, treatment, and consultation

2.        Pre-hospitalization

3.        Medicine and medical consumables

4.        Non-intensive and intensive care services

5.        Diagnostic and laboratory investigations

6.        Medical implantation services (where necessary)

7.        Accommodation benefits

8.        Food services

9.        Complications arising during treatment

10.      Post-hospitalization follow-up care up to 15 days

The benefits of INR 5, 00,000 are on a family floater basis which means that it can be used by one or all members of the family. In addition, pre-existing diseases are covered from the very first day.

Q3. The ‘Mission Indradhanush’ has been launched for

a) Recapitalisation of Public Sector Banks.

b) Providing affordable diagnosis and treatment facilities for Tuberculosis patients.

c) Uplifting the Transgender Persons.

d) Full immunization of children and pregnant women.

Answer: d

The Mission Indradhanush was launched by the Ministry of Health and Family Welfare to strengthen and re-energize the programme and achieve full immunization coverage for all children and pregnant women at a rapid pace. It was launched in December 2014. Hence, the correct answer is (d).

The Union Government announced Indradhanush plan for revamping Public Sector Banks (PSBs) in August 2015.

The Mission Indradhanush aims to cover all those children by 2020 who are either unvaccinated, or are partially vaccinated against vaccine preventable diseases. India’s Universal Immunisation Programme (UIP) provides free vaccines against 12 life threatening diseases, to 26 million children annually.  The Universal Immunization Programme provides life-saving vaccines to all children across the country free of cost to protect them against Tuberculosis, Diphtheria, Pertussis, Tetanus, Polio, Hepatitis B, Pneumonia and Meningitis due to Haemophilus Influenzae type b (Hib), Measles, Rubella, Japanese Encephalitis (JE) and Rotavirus diarrhoea.

Q4. As per the norms and standards recognized by the Right of Children to Free and Compulsory Education (RTE) Act, 2009, for school imparting elementary education should have

1. At least one classroom for every teacher.

2. An office cum-store-cum-Head teacher’s room.

3. Separate toilets for boys and girls.

Which of the statements given above is/are correct?

a) 3 only

b) 1 and 2 only

c) 1 only

d) 1, 2 and 3

Answer: d

All the statements are correct.

In India, free and compulsory education starts at the age of 6 and ends at the age of 14 years under the ambit of the Right of Children to Free and Compulsory Education (RTE) Act, 2009 which stipulates norms and standards for a recognized school imparting elementary education.

The RTE norms provide for an all-weather building in elementary schools. The school building should, inter-alia, consist of at least one classroom for every teacher and an office cum-store-cum-Head teacher’s room, barrier free access, separate toilets for boys and girls, safe and adequate drinking water facility to all children and playground.

Q5. The ‘Samagra Shiksha’ mission subsumes which of the following Centrally Sponsored Schemes?

1. Sarva Shiksha Abhiyan (SSA)

2. SWAYAM scheme

3. Rashtriya Madhyamik Shiksha Abhiyan (RMSA)

4. Teacher Education (TE)

Select the correct answer using the code given below:

a) 4 only

b) 1, 3 and 4 only

c) 2 and 3 only

d) 1, 2 and 4 only

Answer: b

The Union Budget, 2018-19 proposed to treat school education holistically without segmentation from pre-nursery to Class 12. Samagra Shiksha is an overarching programme for the school education sector extending from pre-school to class 12 has been, therefore, prepared with the broader goal of improving school effectiveness measured in terms of equal opportunities for schooling and equitable learning outcomes.

The Samagra Shiksha scheme subsumes the three erstwhile Schemes of Sarva Shiksha Abhiyan (SSA), Rashtriya Madhyamik Shiksha Abhiyan (RMSA) and Teacher Education (TE). Hence, the correct answer is (c).

The Ministry of Human Resource Development has launched a Massive Open Online Courses (MOOCs) platform popularly known as SWAYAM (Study Webs of Active learning for Young Aspiring Minds) on July 9, 2017. The portal is offering various online courses for school education and higher education.

About Samagra Shiksha scheme:

• This scheme envisages the ‘school’ as a continuum from pre-school, primary, upper primary, secondary to Senior Secondary levels. The vision of the Scheme is to ensure inclusive and equitable quality education from pre-school to senior secondary stage in accordance with the Sustainable Development Goal (SDG) for Education.

• The major objectives of the scheme are provision of quality education and enhancing learning outcomes of students; Bridging Social and Gender Gaps in School Education; Ensuring equity and inclusion at all levels of school education; Ensuring minimum standards in schooling provisions; Promoting Vocationalisation of education; Support States in implementation of Right of Children to Free and Compulsory Education (RTE) Act, 2009; and Strengthening and up-gradation of SCERTs/State Institutes of Education and DIET as a nodal agencies for teacher training.

Q6. Regarding Pradhan Mantri Kaushal Vikas Yojana (PMKVY), consider the following statements:

1. It is a scheme under the Skill India Mission.

2. Under this Scheme, the Training and Assessment fees are completely paid by the Government.

Which of the statements given above is/are correct?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Answer: c

Both the statements are correct. The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is the flagship scheme of the Ministry of Skill Development & Entrepreneurship (MSDE), under the Skill India Mission.

It enables large number of prospective youth to take up Short Term Training (STT) and Recognition of Prior Learning (RPL) through empanelled training centers/training providers (TCs/TPs) throughout the country.

The objective of this Skill Certification Scheme is to enable a large number of Indian youth to take up industry-relevant skill training that will help them in securing a better livelihood. Individuals with prior learning experience or skills will also be assessed and certified under Recognition of Prior Learning (RPL). Under this Scheme, Training and Assessment fees are completely paid by the Government.

Q7. ‘DHRUV Scheme’ is sometimes mentioned in the news with reference to

a) Providing bridge courses to the persons who were not able to complete university education.

b) Identifying and encouraging talented students to enrich their skills and knowledge.

c) Certifying the skills acquired by construction workers through traditional channels.

d) Reserving some skilled jobs to rural and urban poor is some public sector undertakings.

Answer: b

Pradhan Mantri Innovative Learning Program (DHRUV) was launched to identify and encourage talented students to enrich their skills and knowledge. It is a programme of the Ministry of Human Resource Development.

Under this scheme, the objective of the Pradhan Mantri Innovative Learning Programme program would be to allow talented students to realize their full potential and contribute to society.

Q8. Which of the statements is/are correct about the Rashtriya Mahila Kosh (RMK)?

1. It is an autonomous body under the aegis of the Ministry of Social Justice and Empowerment.

2. Under this, micro-credit facilities are offered at concessional terms to poor women.

Select the correct answer using the code given below:

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Answer: b

Statement 1 is incorrect. The Rashtriya Mahila Kosh (RMK) was established by the Government of India in March, 1993 as an autonomous body under the Ministry of Women & Child Development. It was registered under the Societies Registration Act 1860.

Statement 2 is correct. Rashtriya Mahila Kosh (RMK) is an apex micro-finance organization that provides micro-credit at concessional terms to poor women for various livelihood and income generating activities. Among other things, RMK also promotes and supports expansion of entrepreneurship skills among women.

Q9. Regarding the banking sector of India, consider the following statements:

1. Due to the liberalisation and privatisation in the last three decades, the dominance of the public sector banks in India has been on a decline.

2. The State Bank of India is the only bank to be ranked in the Global top 100.

Which of the statements given above is/are correct?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Answer: c

Both the statements are correct.

With state policies shifting towards liberalisation and privatisation in the last three decades and the entry of new private sector banks, the dominance of the public sector banks (PSBs) has been on a decline. The share of PSBs in the total assets of the scheduled commercial banks, which was over 80 per cent in 1997-98 declined to around 70 per cent by 2007-08 and further to below 66 per cent in 2017-18.

In 2019, when the Indian economy is the fifth-largest in the world, our highest ranked bank—State Bank of India— is ranked a lowly 55th in the world and is the only bank to be ranked in the Global top 100. India has only one bank in the global top 100 and gets grouped on this characteristic with countries that are a fraction of its size: Finland (about 1/11th), Denmark (1/8th), Norway (1/7th), Austria (about 1/7th), and Belgium (about 1/6th). Countries like Sweden and Singapore, which are respectively about 1/6th and 1/8th the economic size of India, have thrice the number of global banks as India does.

Q10. The term ‘JAM trinity’ is used to denotes

a) An initiative to providing broadband connectivity.

b) An initiative for sustainable agriculture.

c) A mission for clean India.

d) An approach for Direct Benefit Transfer.

Answer: d

The term ‘JAM Trinity’ is an abbreviation for Jan Dhan Yojana, Aadhaar and Mobile number. The government is using these three modes of identification to deliver direct benefits to India’s poor. Before this, the government has operated a multitude of subsidy schemes to ensure a minimum standard of living for the poor. These take convoluted routes to deliver affordable products or services to them. Thus, the MGNREGA operated through the panchayats, which pays minimum wages to rural workers. The Centre and States supply rice, wheat, pulses, cooking oil, sugar and kerosene at heavily subsidised prices through the PDS. Then, sectors such as power, fertilisers and oil sell their products to people below-market prices.

Such subsidies cost the exchequer quite a bit. Yet, as they make their winding way through the hands of intermediaries, leakages, corruption and inefficiencies eat away large parts.

Q11. Regarding the ‘Invest India’ initiative, consider the following statements:

1. It is India’s official agency dedicated to investment promotion and facilitation.

2. It regularly partners with similar agencies across the world in an endeavour to enhance bilateral investment and economic engagement.

Which of the statements given above is/are correct?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Answer: c

Statement 1 is correct.  Invest India was set up in 2009. It is a non-profit venture under the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, Government of India.

In addition to a core team that focuses on sustainable investments, Invest India also partners with substantial investment promotion agencies and multilateral organizations.

Invest India focuses on sector-specific investor targeting and development of new partnerships to enable sustainable investments in India.  It also actively works with several Indian states to build capacity as well as bring in global best practices in investment targeting, promotion and facilitation areas. Hence, statement 2 is correct.

Q12. Which of the following sectors have been given the status of ‘Priority Sector’?

1. Import credit

2. Agriculture

3. Micro, Small and Medium Enterprises

4. Renewable Energy

Select the correct answer using the code given below:

a) 1 and 2 only

b) 2, 3 and 4 only

c) 1, 2 and 3 only

d) 1, 2, 3 and 4

Answer: b

The Priority Sector includes the following categories:

1.        Agriculture

2.        Micro, Small and Medium Enterprises

3.        Export Credit

4.        Education

5.        Housing

6.        Social Infrastructure

7.        Renewable Energy

8.        Others

The objective of the priority sector lending programme is to ensure adequate institutional credit flows into some of the vulnerable sectors of the economy, which may not be attractive for the banks from the point of view of profitability.

Q13. Which of the following is/are the purposes of setting up Payment banks in India?

1. To expand the distribution of non-risk sharing financial products like mutual fund units and insurance products.

2. To provide payments/remittance services to small businesses.

3. To promote financial inclusion and lending activities.

Select the correct answer using the code given below:

a) 1 and 2 only

b) 2 and 3 only

c) 1 and 3 only

d) 1, 2 and 3

Answer: a

 Statements 1 and 2 are correct. The objectives of setting up of payments banks will be to further financial inclusion by providing

1. Small savings accounts and

2. payments/remittance services to migrant labour workforce, low income households, small businesses, other unorganised sector entities and other users.

Statement 3 is incorrect. The payments bank cannot undertake lending activities. Thus, they cannot issue credit cards.

Q14. The ‘NISHTHA Programme’, sometimes mentioned in the news, has been launched for

a) Fostering awareness and skill development among teachers.

b) Conducting the first level of examination in all major banking fraud cases.

c) Creating employment for military veterans.

d) Connecting children at orphanages with senior citizens in old-age homes.

Answer: a

The National Initiative for School Heads’ and Teachers’ Holistic Advancement (NISHTHA) was launched in Union Territory of Jammu and Kashmir. It is a pioneering scheme that was earlier launched across the country by HRD Ministry in August 2019. This National Mission aims at improving learning outcomes at Elementary level through integrated Teacher Trainings.

The Mission aims to build capacities of 42 lakh participants covering all teachers and Heads of Schools at the elementary level in all Government Schools across India as well as faculty members of State Institute of Education (SIE)/ State Council of Educational Research and Training (SCERTs), District Institute of Education and Training (DIET) etc.

Q15. Which of the following are parts of Social Infrastructure?

1. Higher Education

2. Sports

3. Health and Family Welfare

4. Tourism

Select the correct answer using the code given below:

a) 3 only

b) 1, 3 and 4 only

c) 1, 2 and 3 only

d) 1, 2, 3 and 4

Answer: d

Social infrastructure can be broadly defined as the construction and maintenance of facilities that support social services. Types of social infrastructure include healthcare (hospitals), education (schools and universities), public facilities (community housing and prisons) and transportation (railways and roads).

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