Economic & Social Issues (ESI) Questions For RBI Grade B Phase II 2023 | Set-19

Correct Answer – C. National Renewal Fund

Explanation- The Government of India had announced to establish a National Renewal Fund (NRF) as a part of the slew of measures announced in New Industrial Policy of 1991. The Fund was later established in February, 1992 for a period of 10 years. The main objective of the National Renewal Fund was to provide a social safety net to the workers who are likely to be affected by technological up-gradation and modernisation in the Indian industry.

Correct Answer – E. All of the above

Explanation- Special Economic Zones (SEZ) are growth engines that can boost manufacturing, augment exports and generate employment. The private sector has been actively associated with the development of SEZs. The SEZs require special fiscal and regulatory regime in order to impart a hassle free operational regime encompassing the state of the art infrastructure and support services. Special Economic Zone (SEZ) is a specifically delineated duty-free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs. SEZ unit shall be a positive Net Foreign exchange Earner. Net Foreign Exchange Earning (NFE) shall be calculated cumulatively for a period of five years from the commencement of production.

Correct Answer – E. Basel, Switzerland

Explanation- The Bank for International Settlements (BIS) is an international financial institution owned by central banks which “fosters international monetary and financial cooperation and serves as a bank for central banks”. The BIS carries out its work through its meetings, programmes and through the Basel Process – hosting international groups pursuing global financial stability and facilitating their interaction. It also provides banking services, but only to central banks and other international organizations. It is based in Basel, Switzerland, with representative offices in Hong Kong and Mexico City.

Correct Answer – E.  Bihar

Explanation- According to the Census 2011, Bihar with the literacy rate of 61.80 has the lowest literacy rate in the country.

Correct Answer –E.  All of the above

Explanation: The total value of goods produced and services rendered within a country during a year is its Gross Domestic Product. Further, GDP is calculated at market price and is defined as GDP at market prices. Different constituents of GDP are:

• Wages and salaries
• Rent
• Interest
• Undistributed profits
• Mixed-income
• Direct taxes
• Dividend
• Depreciation

Correct Answer – A. I and II

Explanation- A green bond is like any other regular bond but with one key difference: the money raised by the issuer are earmarked towards financing `green’; projects, i.e. assets or business activities that are environment-friendly. Such projects could be in the areas of renewable energy, clean transportation and sustainable water management. In 2007, green bonds were launched by few development banks such as the European Investment Bank and the World Bank. Subsequently, in 2013, corporates too started participating, which led to its overall growth. Back home,

Yes, Bank was the first bank to come out with an issue worth Rs 1,000 crore in 2015. Following this, few other banks too had green bond issuances. CLP India, was the first Indian company to tap this route. So far, Rs 7,200 crore has been raised via green bond.

Correct Answer – B.  Consolidated Fund

Explanation- Consolidated Fund of India is the most important of all government accounts. Revenues received by the government and expenses made by it, excluding the exceptional items, are part of the Consolidated Fund. This fund was constituted under Article 266 (1) of the Constitution of India. All revenues received by the government by way of direct taxes and indirect taxes, money borrowed and receipts from loans given by the government flow into the Consolidated Fund of India. All government expenditure is made from this fund, except exceptional items which are met from the Contingency Fund or the Public Account. Importantly, no money can be withdrawn from this fund without the Parliament’s approval.

Correct Answer – C. NABARD

Explanation- Reserve Bank of India (RBI) set up the Agricultural Refinance Corporation (ARC) in 1963 to work as a refinancing agency in providing medium term and long term agricultural credit to support investment credit needs for agricultural development. In 1975 this institution was renamed as Agriculture Refinance and Development Corporation (ARDC) with a view to lay emphasize on developmental and promotional role, besides refinancing activities. Upon its formation in 1982, NABARD took over the functions of the erstwhile Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of RBI and Agricultural Refinance and Development Corporation (ARDC).

Correct Answer: A. 12 months

Explanation- According to an RBI Master Circular, an asset, including a leased asset, becomes non-performing when it ceases to generate income for the bank. A non-performing asset (NPA) is a loan or an advance where interest and/ or instalment of principal remain overdue for a period of more than 90 days in respect of a term loan. Banks are required to classify nonperforming assets further into the following three categories based on the period for which the asset has remained nonperforming and the realisability of the dues:

i. Substandard Assets: A substandard asset would be one, which has remained NPA for a period less than or equal to 12 months

ii. Doubtful Assets: An asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months

iii. Loss Assets: A loss asset is one where loss has been identified by the bank or internal or external auditors or the RBI inspection but the amount has not been written off wholly.

Correct Answer: D. 1921

Explanation- For the first time since 1921, in census 2011 urban India added more numbers to its population in a decade than rural India did. At 833.1 million, India’s rural population today is 90.6 million higher than it was a decade ago. But the urban population is 91 million higher than it was in 2001. The Census cites three possible causes for the urban population to have risen by more than the rural: ‘migration,’ ‘natural increase’ and ‘inclusion of new areas as ‘urban.

The 2001 Census showed us that the rural population had grown by more than 113 million since 1991. And the urban by over 68 million. So rural India had added 45 million people more than urban.In 2011, urban India’s increase was greater than that of rural India’s by nearly half a million, a huge change. The last time the urban increase surpassed the rural was 90 years ago, in 1921. Then, the rural total actually fell by close to three million compared to the 1911 Census.