PREVIOUS YEAR SOLVED PAPERS - July 2018
61. Which one of the following is not the objective of UTI?
- A
To mobilise savings of the community by offering savers the triple benefits of safety, liquidity and profitability of Investments.
- B
To channelise the pooled savings into productive outlets.
- C
To provide finance under hire purchase finance and housing finance to its members.
- D
To give every one a chance to indirectly own shares and securities in a large number of select companies.
- Option : C
- Explanation : The Unit Trust of India, which was established on February 1, 1964 under the Unit Trust of India Act, 1963 in the public sector, is another organised investment institution in this country.
Objectives of UTI: The primary objective of the UTI is to encourage and mobilise savings of the community and channelise them into productive corporate investments so as to promote the growth and diversification of country’s economy. To the achievement of this objective, it is selling ‘units’ of small denomination of Rs.10 to the general public. The savings so mobilised are then invested by it in the shares and debentures of industrial companies, and in bonds of Public Corporation and Government Securities. The temporary surplus funds are placed by it with banks in call loans.
62. Which one of the following is the main objective of IFCI?
- A
To offer both small and large investors the means of acquiring shares in the widening prosperity resulting from the steady industrial growth of the country.
- B
To upgrade technology, modernization and to promote marketing of products of small scale sector.
- C
To serve as the apex institution for term finance for industry with coordination, regulation and supervision of the working of other financial institution.
- D
To provide medium and long-term financial assistance to industrial undertakings, particularly in those circumstances in which banking accommodation is in appropriate or resource to capital market is impracticable.
63. Match the items of List-II with the items of List-I and indicate the correct code:
| List-I | List-II |
| (a) Term finance | (i) Providing finance to new or existing industrial units for encouraging commercial application of technology/expansion. |
| (b) Refinance | (ii) Delivering of banking services at affordable cost to the vast sections of disadvantaged and low income groups. |
| (c) Financial inclusion | (iii) Providing replenishment finance to eligible institutions for their loans to industrial concerns. |
| (d) Venture capital | (iv) Providing finance to the borrowers for expansion and modernization of plant and equipment. |
CODES
| (a) | (b) | (c) | (d) | |
| 1 | (i) | (ii) | (iii) | (iv) |
| 2 | (i) | (ii) | (iv) | (iii) |
| 3 | (iv) | (iii) | (ii) | (i) |
| 4 | (iv) | (iii) | (i) | (ii) |
| List-I | List-II |
| (a) Tariffication | (i) They have demonstrably adverse effects on other member countries. |
| (b) Prohibited subsidies | (ii) They act on goods which are contingent upon export performance. |
| (c) Actionable subsidies | (iii) Replacement of existing non-tariff restrictions. |
| (d) Non-actionable subsidies | (iv) For industrial research in disadvantaged regions. |
CODES
| (a) | (b) | (c) | (d) | |
| 1 | (ii) | (iii) | (i) | (iv) |
| 2 | (iv) | (i) | (ii) | (iii) |
| 3 | (iii) | (ii) | (i) | (iv) |
| 4 | (ii) | (iv) | (iii) | (i) |
- Option : C
- Explanation : Tariffication and Tariff Cuts: Tariffication means the replacement of existing non-tariff restrictions on trade such as import quotas by such tariffs as would provide substantially the same level of protection. From the first year of the Agreement’s implementation, nearly all border protection was to be bound by tariffs, which (in principle) were to be no higher than the tariff equivalent of the protection levels prevailing in the base periods. Tariff binding means fixing the maximum rate of import duty, above which the country shall not raise the duty unilaterally.
On agricultural tariffs, developing countries have had the flexibility of indicating maximum ceiling binding. India had indicated ceiling bindings of 100 per cent on primary products and 300 per cent on edible oils.
Subsidies and Domestic Support Policies: The UR Agreement deals with three categories of subsidies.
Prohibited Subsidies: Prohibited subsidies are those contingent upon export performance or the use of domestic instead of imported goods. Actionable Subsidies: Actionable subsidies are those that have demonstrably adverse effects on other member countries.
Non-actionable Subsidies: Non-actionable subsidies include those provided (with stipulated limitations) to industrial research and procompetitive development activity to disadvantaged regions, or to existing facilities to adapt themselves to new environmental requirements.
