1. Which of the following statements is/are correct?

1. For 2022-23, Corporation Income Tax has the highest weightage among Gross Tax Revenue.
2. External grants is a component of Non-tax Revenue of the government.

Select the correct code.

A. 1 Only

B. 2 Only

C. Both are Correct

D. None is Correct

2. Consider the following statements:

1. Loans given for agriculture and allied activities are covered under Food Credit category of Scheduled Commercial banks.
2. Since March 2022, weighted average lending rate (WALR) on fresh and outstanding rupee loans has decreased gradually.

Which of the above statements is/are correct?

A. 1 only

B. 2 only

C. Both 1 and 2

D. None of the above

3. Consider the following statements with respect to various Government Insurance schemes: 

1. Under Ayushman Bharat Yojana, health coverage of ₹5 lakh per beneficiary family per annum is provided.
2. Pradhan Mantri Jeevan Jyoti Bima Yojana provides risk coverage of ₹2 lakh for accidental death and complete disability and ₹1 lakh for partial disability is given to beneficiaries.
3. Old age income security is provided to senior citizens under Pradhan Mantri Vaya Vandana Yojana.

Which of the statements given above is/are correct?

A. 1 only

B. 2 and 3 only

C. 1 and 3 only

D. 1, 2 and 3 

4. Which one of the following statements is incorrect?

A. In FY23, retail inflation was mainly driven by higher food inflation, while core inflation stayed at a moderate level.

B. In FY23, vegetables, cereals, milk and spices are the major contributors of increase in food inflation.

C. To check the soaring prices of wheat and rice, the government has prohibited the export of wheat products and imposed an export duty on rice in FY23.

D. None of the above.

5. Which one of the following statement correctly defines Inventory Overhang?

A. Units that are in the production process but not yet completed.

B. Estimated time period developers are likely to take to sell off the unsold inventory, based on the current sales velocity.

C. Extra inventory that a business holds to ensure that it has enough stock to meet unexpected demand or supply chain disruptions.

D. None of the above

Answers with Explanations

1. Which of the following statements is/are correct?

1. For 2022-23, Corporation Income Tax has the highest weightage among Gross Tax Revenue.
2. External grants is a component of Non-tax Revenue of the government.

Select the correct code.

A. 1 Only

B. 2 Only

C. Both are Correct

D. None is Correct

Answer: B

Explanation

Chapter 3

Fiscal Developments- Revenue Relish

2. Consider the following statements:

1. Loans given for agriculture and allied activities are covered under Food Credit category of Scheduled Commercial banks.
2. Since March 2022, weighted average lending rate (WALR) on fresh and outstanding rupee loans has decreased gradually.

Which of the above statements is/are correct?

A. 1 only

B. 2 only

C. Both 1 and 2

D. None of the above

Answer: D

Explanation

• Given the importance of bank credit flow to different productive sectors of the economy, the Reserve Bank has been compiling and publishing monthly sectoral deployment of bank credit data. 
• The data is classified under the food and non-food credit (NFC) categories, with food credit being provided to the Food Corporation of India (FCI) and state agencies for procurement of food grains.
• As food credit is largely driven by external forces such as monsoons, size of the marketed surplus and Government procurements, non-food credit is generally used as a gauge of bank lending. 
• Non-food credit is categorised into four broad categories – (i) agriculture and allied activities, (ii) industry, (iii) services, and (iv) personal loans.

Chapter-3
Monetary Management And Financial Inter Mediation: A Good Year

• Weighted average lending rate (WALR) is an important metric used by banks and financial institutions to determine the interest rates on their loans. 
• The WALR is calculated by taking into account the interest rate on each loan and its corresponding share in the total loan portfolio of the institution. 
• The resulting rate is a weighted average that reflects the overall cost of borrowing for the institution.
• Overall, the weighted average lending rate (WALR) on fresh and outstanding rupee loans rose by 135 bps and 71 bps, respectively, in FY23 (up to November 2022).

3. Consider the following statements with respect to various Government Insurance schemes: 

1. Under Ayushman Bharat Yojana, health coverage of ₹5 lakh per beneficiary family per annum is provided.
2. Pradhan Mantri Jeevan Jyoti Bima Yojana provides risk coverage of ₹2 lakh for accidental death and complete disability and ₹1 lakh for partial disability is given to beneficiaries.
3. Old age income security is provided to senior citizens under Pradhan Mantri Vaya Vandana Yojana.

Which of the statements given above is/are correct?

A. 1 only

B. 2 and 3 only

C. 1 and 3 only

D. 1, 2 and 3 

Answer: C

Explanation

4. Which one of the following statements is incorrect?

A. In FY23, retail inflation was mainly driven by higher food inflation, while core inflation stayed at a moderate level.

B. In FY23, vegetables, cereals, milk and spices are the major contributors of increase in food inflation.

C. To check the soaring prices of wheat and rice, the government has prohibited the export of wheat products and imposed an export duty on rice in FY23.

D. None of the above.

Answer: D

Explanation

5. Which one of the following statement correctly defines Inventory Overhang?

A. Units that are in the production process but not yet completed.

B. Estimated time period developers are likely to take to sell off the unsold inventory, based on the current sales velocity.

C. Extra inventory that a business holds to ensure that it has enough stock to meet unexpected demand or supply chain disruptions.

D. None of the above

Answer: B

Explanation

• There is evidence of a significant decline in the inventory overhang dipping to 33 months during Q3 of FY23 from 42 months last year.
• Inventory overhang refers to the estimated time period developers are likely to take to sell off the unsold inventory, based on the current sales velocity.

➡️UPSC 2023 General Studies Course: https://sleepyclasses.com/general-studies-for-upsc/

➡️Sociology Optional for UPSC : https://sleepyclasses.com/sociology-for-upsc/

➡️Political Science and IR for UPSC: https://sleepyclasses.com/psir-for-upsc/

➡️Signup here – https://sleepyclasses.com/

Have any query related to UPSC preparation:  📞Contact Us ► Toll-Free: 1800 890 3043 ► Mobile: 6280133177 ► Email: Sleepy.Classes@gmail.com ► WhatsApp: 6280133177