UPSC LAW Optional

❔❔❔QUESTION❔❔❔ 👇👇👇👇👇👇👇👇👇👇👇👇 (Q.) Consider the following statements 1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI). 2. The WPI does not capture changes in the prices of services, which CPI does. 3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.

Explanation The correct answer is 1 3 and 4 only. Key Points • The Kisan Credit Card plan intends to provide farmers with flexible and streamlined credit support from the banking system through a single window for their farming and other needs as listed below: ○ To satisfy the short-term financial needs for agricultural farming ○ Post-harvest costs; loan for produce marketing ○ Consumption needs of a household of farmers ○ Working capital for agriculturally related operations and farm asset maintenance ○ The need for investment loans for agricultural and related activities. Hence 1 3 and 4 is the correct answer. • Commercial banks, RRBs, small finance banks, and cooperatives will execute the Kisan Credit Card Scheme described in the following paragraphs.

❔❔❔QUESTION❔❔❔ 👇👇👇👇👇👇👇👇👇👇👇 (Q.) Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes? 1. Working capital for maintenance of farm assets 2. Purchase of combine harvesters, tractors and mini trucks 3. Consumption requirements of farm households 4. Post-harvest expenses 5. Construction of family house and setting up of village cold storage facility

Explanation The Correct Answer is Provisions of the Fiscal Responsibility and Budget Management Act, 2003. Key Points • In accordance with Section 3(5) of the Fiscal Responsibility and Budget Management Act of 2003, a statement known as the Macro-economic Framework Statement is one that is sent to the Parliament at the time of the Union Budget. • It includes an analysis of the economy's growth potential with particular underlying assumptions. • It contains an analysis of the projected GDP growth rate, the Central Government's fiscal position, and the economy's external sector balance. • The declaration is delivered yearly. Important Points Documents mandated by FRBM Act, 2003 • Statement of the Macroeconomic Framework • Statement of Fiscal Policy and Strategy • Statement of Medium-Term Fiscal Policy • Statement of the Medium Term Expenditure Framework (to be presented in parliament in the Session after the Budget session).

[In reply to Beandbyias] Explanation The correct answer is to leave it unchanged. Key Points • Demand Deposit Account ○ It comprises of money maintained in a bank account that allows withdrawals at any time, as opposed to a term deposit account that restricts access for a set period of time. ○ Demand Deposit Accounts include Current and Savings Accounts. ○ A few banks require account holders to keep a certain minimum amount. • The entire amount of money that is at any given time available in an economy is known as the money supply. • The public's demand deposits at banks and all currency in circulation together make up the public's money supply. • As a result, we can write Money Supply = Money in circulation + Money in the bank. • If we look at the equation, taking money out of the bank adds to the amount of money you have in your possession but has no impact on the quantity of money in circulation. • As a result, there won't be any changes to the overall money supply.

[In reply to Beandbyias] Explanation The correct answer is 1 only. Key Points • A global financial crisis forces both foreign creditors and the debtor countries into default, resulting in severe suffering for both. ○ It is difficult to avoid helping a struggling nation or region for both political and economic reasons. ○ India shouldn't rely on short-term foreign borrowings as a result. It will undoubtedly grant India immunity. ○ As a result, Statement 1 is true. • As a result of the financial crisis, banks will likely face a greater weight of NPAs (non-performing assets), making it difficult for them to recover these assets and forcing them to declare insolvency soon. ○ Therefore, India would be taking a tremendous risk by opening up to additional international banks. ○ As a result, Statement 2 is untrue. • Convertibility of capital accounts refers to the unrestricted ability to engage in investment transactions. ○ Generally speaking, this entails having no limitations on the amount you can convert into foreign currency in order to buy any foreign asset, and vice versa. ○ It will be a catastrophic failure and error during a financial crisis. ○ As a result, assertion 3 is untrue.

❔❔❔QUESTION❔❔❔ 👇👇👇👇👇👇👇👇👇👇👇👇 (Q.) If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India? 1. Not depending on short-term foreign borrowings 2. Opening up to more foreign banks 3. Maintaining full capital account convertibility

Explanation The correct answer is 1 only. Key Points • PPP is an economic theory that contrasts the value of various currencies using a common "basket of goods and services." • The PPP between two nations calculates how much money is needed in one country to buy a certain basket of goods and services in comparison to how much money is needed in the other country to buy the same basket of goods and services. Therefore, statement 1 is true. • In PPP dollars, China has the largest economy in the world in 2018, with the United States and India coming in second and third, respectively. Therefore, assertion 2 is untrue.

❔❔❔QUESTION❔❔❔ 👇👇👇👇👇👇👇👇👇👇👇 (Q.) Considering the following statements: 1. Purchasing Power Parity (PPP) exchange rates are calculated by the prices of the same basket of goods and services in different countries. 2. In terms of PPP dollars, India is the sixth largest economy in the world.

Explanation The Correct Answer is 3 only. Key Points • The Maternity Benefit (Amendment) Act of 2017 grants working women 26 weeks of paid maternity leave. (Therefore, statement 1 is false.) • Any business with more than 50 workers must provide a childcare facility for working mothers, and businesses must permit a woman to attend the childcare facility four times per day to feed and care for her kid. • Paid maternity leave will last 12 weeks for mothers who are pregnant after having two children already. (Therefore, Statement 3 is true.) Maternity Benefit (Amendment) Act 2017 ○ After being approved by the Parliament, the Maternity Benefit (Amendment) Act 2017 gained presidential assent on March 27, 2017. The 1961 Maternity Benefits Act has been modified by the Act. The Maternity Benefit (Amendment) Act's majority of its provisions went into effect on April 1, 2017. ○ The Act's primary goal is to control women's employment during pregnancy and childbirth. The clauses relating to the length and applicability of maternity leave, as well as other facilities, have been changed. • Major changes ○ The Maternity Benefit (Amendment) Act 2017 extended the amount of time that women employees can take off work for maternity leave, bringing it up from 12 weeks to 26 weeks. The length of the leave, however, remains unchanged at 12 weeks for women who become pregnant after having two children. ○ The paid maternity leave may be used up to eight weeks prior to the anticipated due date. Prior to the modification, there were six weeks. ○ The Maternity Benefit (Amendment) Act of 2017 expanded the benefits available to commissioning and adoptive moms, and also stipulates that a woman who adopts a child shall be granted 12 weeks of maternity leave starting on the date of adoption. ○ An enabling clause for "work from home" has been added to the Act and may be used beyond the expiration of the 26-week leave term. A woman can take advantage of this provision depending on the type of work she does under conditions that are mutually agreed upon with the employer. ○ Creche facilities are required by the revised Act for every business with 50 or more employees. The facilities should be open to the female employees four times a day. ○ Under the revised law, employers are required to inform women about the maternity benefits that are available to them at the time of their employment. • Other provisions ○ All women engaged in factories, mines, stores, or other commercial establishments with 10 or more employees are covered by the act.

❔❔❔QUESTION❔❔❔ 👇👇👇👇👇👇👇👇👇👇👇 (Q.) Which of the following statements is/are correct regarding the Maternity Benefit (Amendment) Act, 2017? 1. Pregnant women are entitled for three months predelivery and three months post-delivery paid leave 2. Enterprises with creches must allow the mother minimum six creche visits daily 3. Women with two children get reduced entitlements.