Q.1 which of the following are the indicators of the multidimensional poverty index ? 1) Child Mortality 2) Sanitation 3) Nutrition 4) Child school attendance 5) Assets ownership Codes: A) 1,2,3 B) 3,4,5 C) 1,2,3,4 D) 1,2,3,4,5 Ans. D Q.2 Which of the following are the goals of the National Rural Livelihood Mission ? 1) Reduction of poverty 2) improvement in livelihoods 3) skilled wage employment opportunities Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. D National Rural Livelihood Mission (NRLM) is a poverty alleviation project implemented by Ministry of Rural Development, Government of India. This scheme is focused on promoting self-employment and organization of rural poor. The basic idea behind this programme is to organize the poor into SHG (Self Help Groups) groups and make them capable for self-employment. In 1999 after restructuring Integrated Rural Development Programme(IRDP), Ministry of Rural Development (MoRD) launched Swarnajayanti Grameen Swarojgar Yojana (SGSY) to focus on promoting self-employment among rural poor. SGSY is now remodeled to form NRLM thereby plugging the shortfalls of SGSY programme. This scheme was launched in 2011 with a budget of $ 5.1 billion and is one of the flagship programme of Ministry of Rural Development. This is one of the worlds largest initiative to improve the livelihood of poor. This programme is supported by World Bank with a credit of $ 1 Billion. Q.3 Which among the following are the functions of the Finance Commission ? 1) Distribution of net proceeds of taxes between Centre and the States 2) To make recommendations to president as to the measures needed to augment the Consolidated Fund of a State to supplement the resources of the panchayats and municipalities in the state 3) Determine factors governing Grants-in Aid to the states Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. D Q.4 In relation to the Base Effect , which among the following statements are correct ? 1) Smaller rise in the Price Index will arithmetically give a high rate of inflation, even if the inflation rate was too low in the corresponding period of the previous year 2) It relates to inflation in the corresponding period of the previous year Codes: A) Only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. C Q.5 In context with the Aam Aadmi Bima Yojaana, which among the following statements are correct ? 1) Member should normally be the head of the family or one earning member of the below poverty line family (BPL) or marginally above the poverty line 2) The members should be aged between 18 years completed and 59 years 3) Nominal fee should be paid by the member under this scheme Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. C Click on this link: https://www.licindia.in/aam_admi_features.htm Q.6 In context with the Microfinance, which among the following are correct ? 1) Microcredit is provision of credit services to poor clients 2) It is a source of financial services for entrepreneurs and small businesses 3) It helps to manage the assets of the poor and generates income Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. D The two main mechanisms for the delivery of financial services to such clients are: (1) relationship-based banking for individual entrepreneurs and small businesses; and (2) group-based models, where several entrepreneurs come together to apply for loans and other services as a group. In some regions, for example Southern Africa, microfinance is used to describe the supply of financial services to low-income employees, which is closer to the retail finance model prevalent in mainstream banking. For some, microfinance is a movement whose object is "a world in which as many poor and near-poor households as possible have permanent access to an appropriate range of high quality financial services, including not just credit but also savings, insurance, and fund transfers.” Many of those who promote microfinance generally believe that such access will help poor people out of poverty, including participants in the Microcredit Summit Campaign. For others, microfinance is a way to promote economic development, employment and growth through the support of micro-entrepreneurs and small businesses. Q.7 Which of the following are the characteristics of an Open Economy ? 1) It involves flow of funds as investment across the border 2) Railway services of a country cannot be traded with another to avail this service 3) Consumers will have an opportunity to invest their savings outside of the country 4) It has a negligible effect on interest rate. Codes: A) 1,3,4 B) 2,3,4 C) 1,2,3 D) 1,2,3,4 Ans. D Q.8 Which among the following regarding Introductory Rate which is also known as Teaser rate are correct ? 1) It is an interest rate charged to a customer during the initial stages of a loan 2) The teaser rate is only temporary 3) It is usually low interest rate to attract potential customers to obtain the service Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. D A teaser rate is a low, adjustable introductory interest rate advertised for a loan, credit card, or deposit account in order to attract potential customers to obtain the service. The teaser rates are normally too good to be true for the long term, and are far below the common realistic rate for the service. In a competitive market, many companies will compete with each other for the lower teaser rate. Typically, the teaser rate is 0%. The teaser rate is only temporary. After its expiration, the rate increases to a normal or much higher than normal rate, and in some cases, the borrower cannot keep up with making payments. Some consumers with good credit manage to take advantage of teaser rates offered by the industry as a whole by applying for a card, having their balances transferred to that card, and then maintaining payments on that card during the period of the teaser rate. Prior to its expiration, they obtain another card that they use for the same. They continue this technique continually in an attempt to keep money borrowed at low interest rates. Many credit card issuers who catch onto a consumer using this technique will be reluctant to offer the teaser rate to such consumers