Shop No.89, 1 st floor, Old Rajinder Nagar, New Delhi DAY REVISION PROGRAM DAY-25

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1 IAS BEE Shop No.89, 1 st floor, Old Rajinder Nagar, New Delhi KEY 40- DAY REVISION PROGRAM DAY Ans: a Explanation: Amber box- Nearly all domestic support measures considered to distort production and trade (with some exceptions) fall into the amber box, which is defined in Article 6 of the Agriculture Agreement as all domestic supports except those in the blue and green boxes. These include measures to support prices, or subsidies directly related to production quantities. post-uruguay Round reform period are committed to reduce these subsidies. Blue box- This is the amber box with conditions conditions designed to reduce distortion. Any support that would normally be in the amber box, is placed in the blue box if the support also requires farmers to limit production. At present there are no limits on spending on blue box subsidies. Green box- In order to qualify, green box subsidies must not These supports are subject to distort trade, or at most cause limits: de minimis minimal minimal distortion. They have supports are allowed (generally to be government-funded (not 5% of agricultural production by charging consumers higher for developed countries, 10% prices) and must not involve for developing countries); 32 price support. They tend to be WTO members that had larger programmes that are not subsidies than the de minimis targeted at particular products, levels at the beginning of the

2 and include direct income supports for farmers that are not related to (are decoupled from) current production levels or prices. They also include environmental protection and regional development programmes. Green box subsidies are therefore allowed without limits, provided they comply with the policy-specific criteria set out in Annex 2. ratop_e/agric_e/agboxes_e.ht m and ECONOMY.pdf page no Ans: a Explanation: The Peace Clause was adopted after the Bali Conference of WTO. The peace clause said that no country would be legally barred from food security programmes even if the subsidy breached the limits specified in the WTO agreement on agriculture. This peace clause was expected to be in force for four years until 2017, by which time the protagonists hoped to find a permanent solution to the problem. India s worry is that if the clause expires before a permanent solution is in place, food security programmes and policies to protect farmers, such as Minimum Support Prices, would come under siege. The limited window offered by the Western powers for the peace clause was seen by India as insufficient assurance. The clause also requires full disclosure of MSPs and annual procurement for food security programmes, which the Government fears would leave India open to questioning by other countries on domestic matters. line.com/opinion/all-you-

3 wanted-to-know-about-peaceclause/article ece 3. Ans: d Explanation: A bull market is a financial market of a group of securities in which prices are rising or are expected to rise. Bull markets are characterized by optimism, investor confidence and expectations that strong results will continue. Bear market refers to a market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, pessimism only grows. Ramesh Singh and Investopedia 4. Ans: c Explanation: The term Money Market, according to the Reserve Bank of India, is used to define a market where short-term financial assets are traded. These assets are a near substitute for money and they aid in the money exchange carried out in the primary and secondary market. So, essentially, the money market is an apparatus which facilitates the lending and borrowing of short-term funds, which are usually for duration of under a year. Short maturity period and high liquidity are two characteristic features of the instruments which are traded in the money market. Institutions like commercial banks, non-banking finance corporations (NBFCs) and acceptance houses are the components which make up the money market. Some of the common money market instruments include Banker s

4 Acceptance, Treasury Bills, Repurchase Agreements, Certificate of Deposits and Commercial Papers. Shares and debentures are traded in capital market. Some of the notable characteristics of money market instruments are as follows: Liquidity Money market instruments are highly liquid because they are fixed-income securities which carry short maturity periods of a year or less. Safety Issuers of money market instruments have strong credit ratings, which automatically means that the money instruments issued by them will also be safe. Discount Pricing Another important characteristic feature of money market instruments is that they are issued at a discount on their face value. Ramesh Singh 5. Ans: d Explanation: Arbitrage and speculation are very different strategies. Arbitrage involves the simultaneous buying and selling of an asset in order to profit from small differences in price. Often, arbitrageurs buy stock on one market (for example, a financial market in the United States like the NYSE) while simultaneously selling the same stock on a different market (such as the London Stock Exchange). In the United States, the stock would be traded in US dollars, while in London, the stock would be traded in pounds. Since arbitrage involves the simultaneous buying and selling of an asset, it is essentially a type of hedge and

5 involves limited risk, when executed properly. Arbitrageurs typically enter large positions since they are attempting to profit from very small differences in price. Speculation, on the other hand, is a type financial strategy that involves a significant amount of risk. Financial speculation can involve the trading of instruments such as bonds, commodities, currencies and derivatives. Speculators attempt to profit from rising and falling prices. A trader, for example, may open a long (buy) position in a stock index futures contract with the expectation of profiting from rising prices. If the value of the index rises, the trader may close the trade for a profit. Conversely, if the value of the index falls, the trade might be closed for a loss. Ramesh Singh 6. Ans: a Explanation: The balance of payments (BoP) records the transactions in goods, services, and assets between residents of a country with the rest of the world for a specified time period typically a year. It represents a summation of country s current demand and supply of the claims on foreign currencies and of foreign claims on its currency. It represents a summation of country s current demand and supply of the claims on foreign currencies and of foreign claims on its currency. There are two main accounts in the BoP the current account and the capital account. Current Account: The current account records exports and imports in goods, trade in services and transfer payments. Capital Account: The capital account records all international purchases and sales of assets such as money, stocks, bonds,

6 etc. It includes foreign investments and loans. The official reserve transactions are seen as the accommodating item in the BoP. MY.pdf page no Ans: d Explanation: Economic growth is a short-term measure and generally refers to year to year rise in national and per capita income in real terms. But the income index does not take into account the distributional aspects of national income. Another important thing is that income approach does not take into account the unproductive and dysfunction growth and productive and socially useful growth. Economic development on the other hand is a long term measure over a long period. The economic development refers to overall rise in standard of living and a better quality of life. Besides income index some non income indices are also taken into account. These are high life expectancy at birth, low infant mortality and high rate of literacy. An improvement in these nonincome indices imply that the

7 quality of life has also improved. Class 12 th NCERT Microeconomics 1 st chapter N/A-year-after- 10. Ans: c 8. Ans: b Explanation: Refer Centrally Sponsored Schemes and Central Sector Schemes. m/news/business/budget/budg et-2018-central-sectorschemes-and-centrallysponsored-schemes-explained html 9. Ans: d Explanation: All the above activities would result in generation of black money. tics/ujgpxbpmaulpnoro5jfx3 demonetisation-indias-black- money-market-is-t.html Explanation: Mumbai is set to be the newest member and the first Indian city on the World Cities Culture Forum (WCCF), a platform for cities to share their culture. The WCCF enables the policy makers of member cities to share research and intelligence, while exploring the vital role of culture in prosperity. Forum members collaborate via a program of events including themed symposia, regional summits and workshops. com/mumbai-news/mumbai- to-pay-rs21-lakh-fee-become- 1st-indian-city-to-join-worldcities-culture-forum/story-

8 Yza1pElWbK0eCNAJYBCNwK.h tml 11. Ans: b Explanation: A motion of No Confidence can be introduced only in the Lok Sabha (the lower house of the Parliament of India). The motion is admitted for discussion when a minimum of 50 members of the house support the motion. If the motion carries, the House debates and votes on the motion. If a majority of the members of the house vote in favour of the motion, the motion is passed and the Government is bound to vacate the office. 12. Ans: c Explanation: Ayushman Bharat is National Health Protection Scheme, which will cover over 10 crore poor and vulnerable families (approximately 50 crore beneficiaries) providing coverage upto 5 lakh rupees per family per year for secondary and tertiary care hospitalization. Ayushman Bharat - National Health Protection Mission will subsume the on-going centrally sponsored schemes - Rashtriya Swasthya Bima Yojana (RSBY) and the Senior Citizen Health Insurance Scheme (SCHIS). Ayushman Bharat - National Health Protection Mission will be an entitlement based scheme with entitlement decided on the basis of deprivation criteria in the SECC database. The beneficiaries can avail benefits in both public and empanelled private facilities. se.aspx?relid= Ans: c Explanation: Asian Premium is the extra charge being collected by OPEC countries from Asian countries when selling oil, and India has been voicing its dissent against this practice. rs/explainers-all-you-need-to-knowabout-a-no-confidence-motion.com/business/india- business/india-will-work-with- china-on-opecs-asian-

9 premium-issue-dharmendrapradhan/articleshow/ cms 14. Answer: D Explanation: FATF was formed in1989. It s an Inter governmental organisation and its purpose is to combat money laundering and terrorism financing. It has 36 members and HQ is located in Paris. It was founded by the initiatives of G7. Important policies issued by FATF are 40 recommentations on money laundering and 9 recommentations on terrorism financing. 15. Ans: B Explanation: LEADS-Logistics Ease Across Different States which is a first ever sub-national logistics performance index. 16. Ans:B Explanation: Quinary activities are services that focus on the creation, re-arrangement and interpretation of new and existing ideas; data interpretation and the use and evaluation of new technologies. Often referred to as gold collar professions, they represent another subdivision of the tertiary sector representing special and highly paid skills of senior business executives, government officials, research scientists, financial and legal consultants, etc. Their importance in the structure of advanced economies far outweighs their numbers. The highest level of decision makers or policy makers performs quinary activities. 17. Ans: D explanation: Both the statements are incorrect. FTAs are arrangements between two or more countries or trading blocs that primarily agree to reduce or eliminate customs tariff and non-tariff barriers on substantial trade between them. FTAs, normally cover trade in goods (such as agricultural or industrial products) or trade in services (such as banking, construction, trading etc.). FTAs can also cover other areas such as intellectual property rights (IPRs), investment, government procurement and competition policy, etc. 18. Ans: C Both the statements are correct. District Mineral Foundation (DMF) is a trust set up as a non-profit body, in those districts affected by the mining works, to work for the interest and benefit of persons and areas affected by mining related operations. It is funded through the

10 contributions from miners. Its manner of operation comes under the jurisdiction of the relevant State Government. 19. Ans: A Statement 1 is correct. The Pradhan Mantri Suraksha Bima Yojana is a one year cover Personal Accident Insurance Scheme, renewable from year to year, offering protection against death or disability due to accident. Statement 2 is incorrect. All individual (single or joint) bank account holders in the age 18 to 70 years in participating banks will be entitled to join in Pradhan Mantri Suraksha Bima Yojana. 20. Ans: C Global Wealth Report is the most comprehensive source of global household wealth information issued by the Credit Suisse Research Institute.