Economic & Social Issues (ESI) Questions For RBI Grade B Phase II 2023 | Set-9

Correct Answer: C. 1 and 2 only

Explanation-In the calculation of the Index of Industrial Production (IIP), the data of the following 8 sectors is measured. Eight core sectors comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP). Hence, statement 1 is correct.

It is compiled and published monthly by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation. Hence, statement 2 is correct.

The eight-core sector industries that are measured under IIP, in decreasing order of their weightage:

Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers.

Correct Answer – B. G7

Explanation-The Group of seven (G-7) advanced economies has recently made an announcement on taxing multinational companies.This would be the “Minimum global tax rate” and its lower floor limit has been fixed at 15%.G7 is an intergovernmental organization comprising Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.

Correct Answer – A. UNESCAP

Explanation: A report ‘Economic and Social Survey of Asia and the Pacific 2021: Towards post-Covid-19 resilient economies’ has recently been released by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP).

According to the report, India is estimated to record an economic growth of 7% in 2021-22, over a contraction of 7.7% witnessed in the previous fiscal on account of the pandemic’s impact on normal business activity

The Economic and Social Survey of Asia and the Pacific report is annually produced since 1947.

It is the oldest United Nations report on the region’s progress. 

The Survey monitors regional progress, provides cutting-edge analyses and guides policy discussion on the current and emerging socio-economic issues and policy challenges to support inclusive and sustainable development in the region.

The Survey of 2021 studies the impact of Covid-19 pandemic and provides insights for post-Covid-19 resilient economies.

Correct Answer – B. 1 and 3 only

Explanation-India has fallen 28 places in the World Economic Forum’s (WEF) Global Gender Gap Report 2021. Hence, statement 1 is correct.

The Global Gender Gap Report was first published in 2006 by the WEF.

It benchmarks 156 countries on their progress towards gender parity in four dimensions:

Economic Participation and Opportunity, Educational Attainment, Health and Survival and Political Empowerment.

Over the Index, the highest possible score is 1 (equality) and the lowest possible score is 0 (inequality).

India is now one of the worst performers in South Asia, it is now ranked 140 among 156 countries. Hence, statement 2 is not correct.

In South Asia, Bangladesh ranked 65, Nepal 106, Pakistan 153, Afghanistan 156, Bhutan 130 and Sri Lanka 116.

India was ranked 112th among 153 countries in the Global Gender Gap Index 2020.

Political Empowerment:

India has declined on the political empowerment index as well by 13.5 percentage points, and a decline in the number of women ministers, from 23.1% in 2019 to 9.1% in 2021. Hence, statement 3 is correct.

However, it has still performed relatively well compared to other countries, ranking at 51 in women’s participation in politics.

Education Attainment:

In the index of education attainment, India has been ranked at 114.

Economic Participation:

The report notes that the economic participation gender gap actually widened in India by 3% this year.

The share of women in professional and technical roles declined further to 29.2%.

The share of women in senior and managerial positions also is at 14.6% and only 8.9% firms in the country have top female managers.

The estimated earned income of women in India is only one-fifth of men’s, which puts the country among the bottom 10 globally on this indicator.

In Pakistan and Afghanistan, the income of an average woman is below 16% of that of an average man, while in India it is 20.7%.

Health and Survival index:

On this India has fared the worst, ranking at 155.

The only country to have fared worse is China.

The report points to a skewed sex ratio as the major factor.

It says the ratio can be attributed to norms of son preference and gender-biased prenatal sex-selective practices.

China and India together account for about 90 to 95% of the estimated 1.2 to 1.5 million missing female births annually worldwide due to gender-biased prenatal sex selective practices.

Correct Answer: D. WHO

Explanation-ACT-Accelerator was launched in the month of April, 2020 at an event co-hosted by the Director-General of the World Health Organization (WHO), the President of France, the President of the European Commission, and the Bill & Melinda Gates Foundation.

It brings together governments, scientists, businesses, civil society, and philanthropists and global health organizations.

The participants include the Bill & Melinda Gates Foundation, CEPI, Foundation for Innovative New Diagnostics (FIND), Gavi, The Global Fund, Unitaid, Wellcome Trust (London), the WHO and the World Bank.

It aims to end the pandemic, restore full societal and economic activity globally and facilitate high-level control of Covid-19 disease. 

The ACT-Accelerator is organized into four pillars of work:

Diagnostics, treatment, vaccines and health system strengthening.

Each pillar is vital to the overall effort and involves innovation and collaboration.

Correct Answer: E. Only (a) and (c)

Explanation:The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a regional organization, established in 1997.

It comprises seven countries. Five of these seven countries- India, Nepal, Sri Lanka, Bhutan and Bangladesh- are from South Asia while the remaining two, Thailand and Myanmar, are from Southeast Asia.

The group remained dormant for many years till it was revived a few years ago as an alternative to the South Asian Association for Regional Cooperation (SAARC), which despite having the potential, has not been able to move forward due to friction between India and Pakistan.

Currently, the BIMSTEC is involved in 15 sectors including trade, technology, agriculture, tourism, fisheries, energy and climate change among others, for sectoral cooperation.

The Permanent Secretariat of BIMSTEC was established in Dhaka, Bangladesh on 13th September, 2014 after a span of 17 years of the founding of BIMSTEC.

Correct Answer – A. 1 and 2 only

Explanation: The Emergency Credit Line Guarantee Scheme (ECLGS) provides fully guaranteed and collateral free additional credit to MSMEs, business enterprises, MUDRA borrowers and individual loans for business purposes. Hence, statement 1 is not correct.

National Credit Guarantee Trustee Company (NCGTC) is the guarantee provider under the ECLGS scheme. Hence, statement 2 is not correct.

NCGTC is a private limited company incorporated under the Companies Act, 1956 in 2014, established by the Department of Financial Services, Ministry of Finance, as a wholly owned company of the Government of India, to act as a common trustee company for multiple credit guarantee funds.

Government has extended the ECLGS and widened its scope to new sectors; covers business enterprises in Hospitality, Travel & Tourism, Leisure & Sporting sectors: Whose total credit outstanding is not exceeding Rs. 500 crore and overdues, if any, were for 60 days or less. Hence, statement 3 is correct.

Correct Answer – E. Only (a) and (b)

Explanation-The current account records exports and imports in goods and services and transfer payments.

It represents a country’s transactions with the rest of the world and, like the capital account, is a component of a country’s Balance of Payments (BOP).

There is a deficit in Current Account if the value of the goods and services imported exceeds the value of those exported.

Current Account Deficit could be reduced by boosting exports and curbing non-essential imports such as gold, mobiles, and electronics.

Correct Answer – E. All of the above

Explanation-Foreign exchange reserves are assets held on reserve by a central bank in foreign currencies, which can include bonds, treasury bills and other government securities.

India’s Forex Reserve include:

Foreign Currency Assets

Gold reserves

Special Drawing Rights

Reserve position with the IMF

Foreign Currency Assets are assets that are valued based on a currency other than the country’s own currency.

FCA is the largest component of the forex reserve. It is expressed in dollar terms.

The FCAs also include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

Correct Answer – D. All the above

Explanation-The Special Drawing Rights (SDR) is an international reserve asset, created by the International Monetary Fund (IMF) in 1969 to supplement its member countries’ official reserves. 

The SDR is neither a currency nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. SDRs can be exchanged for these currencies.

The value of the SDR is calculated from a weighted basket of major currencies, including the US dollar, the euro, Japanese yen, Chinese yuan, and British pound. 

The interest rate on SDRs or (SDRi) is the interest paid to members on their SDR holdings.