1. With reference to the ‘Doing Business Report 2018’, consider the following statements:
1. The report is released by World Bank.
2. India has been ranked at 100th position.
3. India is the only economy among the South Asian nations to be within the first 100 ranks.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 only
(d) 1, 2 and 3
Answer (a) Explanation
✓ Doing Business Report is an annual report released by the World Bank.
✓ In the latest report - Doing Business Report 2018, India has been ranked at the 100th position (from 130th rank last year).
✓ India is not the only economy among the South Asian nations to be in the first 100 ranks as Bhutan is ranked at 75th position this year.
2. Which one of the following best describes the term ‘blue chip companies’ sometimes seen in the news?
(a) The companies that make sustainable products and services
(b) The companies that invest in renewable energy sector
(c) The companies that are profit making
(d) The companies that are expert in Artificial Intelligence
✓ A blue chip is a nationally recognized, well-established, and financially sound company.
✓ Blue chip companies are known to weather downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth.
✓ The term has also been used to refer to highly-priced stocks, but now it is used more
commonly to refer to high-quality stocks.
3. The second volume of Economic Survey 2016-17 says the expected GDP growth for the coming year is around 6.75%. Which of the following factors are leading to such lower performance of the Indian Economy?
1. Farm loan waivers of the states.
2. The depreciation of the rupee.
3. Transitional challenges in the implementation of GST.
Select the correct answer using the codes given below.
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Explanation In February, the Finance Ministry’s Economic Survey had predicted India’s real GDP growth for 2017-18 to be within a range of 6.75 per cent to 7.5 per cent. But “Volume 2” version of the Survey practically ruled out the possibility of meeting the upper end of the growth forecast, while stating that “the balance of risks seem to have shifted to the downside”.
This has been attributed to new factors that have apparently arisen after February 2017 which include:
(a) Farm loan waivers by states (which may force them to slash capital expenditures to keep budget deficits on track)
(b) Transitional challenges from implementing the goods and services tax (GST)
(c) Appreciation of rupees in real terms (which could hit exports)
(d) Worsening financials of power and telecom firms (which would impact bank balance sheets as well)
(e) Agrarian stress (from declining price realisations in most non-cereal crops).
4. Peer to Peer Lending (P2P Lending) is in news recently. Which of the following statements is/are correct in this context?
1. P2P Lending refers to secured lending that happens online.
2. In India, entities engaged in P2P Lending have been classified as Non Banking Financial Company (NBFC).
Select the correct answer using the code given below.
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
✓ Peer to Peer Lending (P2P Lending) refers to unsecured (and not secured) lending that happens on an online platform.
✓ Recently, the entities engaged in P2P Lending have been classified as Non-Banking Financial Companies (NBFCs) and has been brought under the regulation of RBI.
5. India’s first Technology and Innovation Support Centre (TISC) is to be set up in
(a) Tamil Nadu
(d) Andhra Pradesh
✓ The Department of Industrial Policy and Promotion (DIPP) and World Intellectual Property Organization (WIPO) have signed an agreement to establish Technology and Innovation Support Centers (TISC) in India.
✓ WIPO’s Technology and Innovation Support Centers (TISC) program provides innovators in developing countries with access to locally based, high quality technology information and related services, helping them to exploit their innovative potential and to create, protect, and manage their intellectual property (IP) rights.
✓ India’s first Technology and Innovation Support Centre (TISC) is to be set up in
Punjab. Second TISC is to be set up in Chennai.