Saturday, June 9, 2018

UPSC Preliminary MCQ's Part 04


Consider the following:
1. Credit Information Bureau (India) Limited (CIBIL),
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2. CRISIL
3. CRIF Highmark
Which of the above is NOT a private credit databases regulated by RBI under Credit Information Companies (Regulation) Act, 2005 (CICRA 2005):
a) 1 Only
b) 2 Only
c) 3 Only
d) 1 and 3 Only
Correct Answer: B
Explanation
Presently, four CICs, viz. Credit Information Bureau (India) Limited i.e CIBIL, Equifax Credit Information Services Private Limited, Experian Credit Information Company of India Private
Limited and CRIF High Mark Credit Information Services Private Limited have been granted Certificate of Registration by RBI. In terms of Section 15 of the Credit Information Companies
(Regulation) Act, 2005 (CICRA).
RBI has proposed the creation of an integrated facility as PCR which will help to remove inconsistencies such as information asymmetry and data fragmentation. Public Credit Registry is a database of credit information which is accessible by all the stakeholders. It generally captures all the relevant information in one large database on the borrower. It will be managed by a public authority as RBI and the lenders will have to mandatorily report the loan details.
PCR will assist RBI primarily in Credit assessment.

Tikdam: CRISIL is a private credit rating agency and not a CIC. There is only one answer choice that has CRISIL. Hence our answer is b)



With reference to 'BHARAT-22', consider the following statements:
1. It is an Exchange Traded Fund
2. It will comprise of 22 stocks of private sector enterprises only.
3. It will help government sell equity stakes in state-run firms and also help in achieving its objective to raise Rs. 72,500 crore through disinvestment in the current financial year.
Which of the statements given above is/are correct?
a) 1, 2 and 3
b) 2 and 3 Only
c) 2 Only
d) 1 and 3 Only
Correct Answer: D
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Explanation
The government of India, in the Budget speech of 2017, announced its plan to achieve a divestment target of Rs 72,500 crore in the FY 2017-18. Bharat 22 ETF has been set up as one of its vehicle to achieve the target. It is an open-ended Exchange Traded Fund which will invest in similar composition and weightages as they appear in Bharat 22 Index. The index is collectively comprised of 22 stocks of Central Public Sector Enterprises (CPSE), Public Sector Banks and private companies which are Strategic Holding of Specified Undertaking of Unit Trust of India (SUUTI). The said 22 stocks are spread across six sectors (Basic Materials, Energy, Finance, FMCG, Industrials and Utilities).
Tikdam: 2 and 3 cannot be simultaneously correct. Why? Government disinvestment happens in a public sector company, not in a private company. So one of these is incorrect for sure. Hence,
a) and b) are eliminated. Now one has 50% probability of getting this question correct.



Consider the following statements regarding Agricultural and Processed Food Products Export
Development Authority (APEDA):
1. APEDA is statutory authority related to exports of agricultural products and functions under Union Ministry of Commerce and Industry.
2. Finance Minister of India is the ex officio chairman of APEDA.
3. It looks at the export of fruits, vegetables, and their processed products, meat and meat products, poultry and dairy products.
Which of the statements given above is/are correct?
a) 1, 2 and 3
b) 1 and 2 Only
c) 2 Only
d) 1 and 3 Only
Correct Answered:D
Explanation
The Agricultural and Processed Food Products Export Development Authority (APEDA) was established by the Government of India under the Agricultural and Processed Food Products Export Development Authority Act passed by the Parliament in December, 1985.
Its primary function is to achieve development of industries relating to the scheduled products for export by way of providing financial assistance or otherwise for undertaking surveys and feasibility studies, participation in enquiry capital through joint ventures and other reliefs and subsidy schemes; Improving of marketing of the Scheduled products outside India, etc.
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Tikdam: One could have easily made a guess that the Finance Minister cannot be chairman of  a body which has something to do with Agriculture. The only answer choice which does not


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