Day-500 | Daily MCQs | UPSC Prelims | ECONOMY

Answer: A
Explanation:
● Statement 1 is incorrect: Increase in interest rate leads to fall in bond prices and rise in bond yield.
● Statement 2 is correct: Rise in inflation leads to fall in bond prices and rise in bond yield.
Rise in Inflation causes interest rates to rise, leading to a decrease in value of existing bonds.
Additional information:
● Bond yield is the return an investor realizes on a bond and can be derived in different ways.
● The coupon rate is the annual interest rate established when the bond is issued. The current yield depends on the bond’s price and its coupon, or interest payment.
● Additional calculations of a bond’s yield include Yield To Maturity (YTM), Bond Equivalent Yield (BEY), and Effective Annual Yield (EAY).
● Bond yield is the return an investor realizes on an investment in a bond.
● A bond can be purchased for more than its face value, at a premium, or less than its face value, at a discount.
● The current yield is the bond’s coupon rate divided by its market price.
● Price and yield are inversely related and as the price of a bond goes up, its yield goes down.
● According to the Bond Yield definition, it is the amount you return on the capital invested on a particular bond.
● The bond yield is calculated by using the following formula: Bond Yield= Coupon Amount/ Price.

Answer: C
Explanation:
● PM-Ayushman Bharat Health Infrastructure Mission (PMABHIM) is announced in Budget 21-22 on 1st February 2021.
● It aims to create public health infrastructure at all levels that is primary, secondary and tertiary and to prepare health systems in responding effectively to the current and future pandemics/disasters.
Additional information:
● The PM-ABHIM is a Centrally Sponsored Scheme with some Central Sector Components, for implementation of the Atmanirbhar Bharat Package for health sector as announced by Hon’ble Finance Minister in May 2020.
● The objective of the scheme is to fill critical gaps in health infrastructure, surveillance and health research – spanning both the urban and rural areas so that the communities are Atmanirbhar in managing such pandemic/ health crises.
● It is the largest Pan-India scheme for public health infrastructure since 2005.
● The Mission targets to build an IT enabled disease surveillance system by developing a network of surveillance laboratories at block, district, regional and national levels, in Metropolitan areas & strengthening health units at the Points of Entry, for effectively detecting, investigating, preventing, and combating Public Health Emergencies and Disease Outbreaks.

Answer: A
Explanation:
● Statement 1 is incorrect: The nodal ministry of the scheme is the Ministry of Finance. But it is operated by the Ministry of Consumer Affairs, Food and Public Distribution.
● Statement 2 is incorrect: Its primary objective is to provide free food grains to eligible beneficiaries.
● Statement 3 is correct: It aims to cover both eligible households of two categories: i)Priority household category and ii)Antyodaya Anna Yojana under National Food Security Act, 2013.
Additional information:
● Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY) is a scheme as part of Atmanirbhar Bharat to supply free food grains to migrants and the poor.
● Phase-I and Phase-II of this scheme was operational from April to June, 2020 and July to November, 2020 respectively. Phase III of the scheme was operational from May to June, 2021. Phase-IV of the scheme during July-November, 2021 and Phase V from December 2021 till March, 2022.
● Under this scheme, the center provides 5kg of free food grains per month to the poor. This is in addition to the subsidized (Rs 2-3 per kg) ration provided under the National Food Security Act (NFSA) to families covered under the Public Distribution System (PDS). The food grain and the amount may be variable.

Answer: B
Explanation:
● Statement 1 is incorrect: It comes under the Ministry of Chemicals and Fertilisers.
● Statement 2 is correct: It seeks to facilitate constant and adequate supply of fertilizers to the farmers. It aims to reduce subsidy burden on chemical fertilisers and provide agri inputs including testing facilities for soil, seeds and fertilizer.
Additional information:
● Under the scheme, the fertilizer retail shops in the country will be converted into PMKSK in a phased manner.
● PMKSK will generate awareness among farmers; provide information regarding various government schemes and ensure regular capacity building of retailers at block/district level outlets. More than 3.3 lakh retail fertilizer shops are planned to be converted into PMKSK.
● PM Sammridhi Kendras are the sales centres for fertiliser.
● These will be centres where farmers can buy fertilisers and seeds.
● These centres will provide soil testing and avail useful information about farming techniques.
● It will ensure the quality of the fertiliser and its availability, as urea will be available only under the ‘Bharat’ brand name in the entire country”.

Answer: B
Explanation:
● Advance Pricing Agreement is an agreement between a taxpayer and tax authority determining the transfer pricing methodology for pricing the tax payer’s international transactions for future years. It can be unilateral, bilateral, or multilateral. In this agreement, methodology is to be applied for a certain period of time based on the fulfilment of certain terms and conditions.
Additional Information:
● Advance Pricing Agreement was introduced in 2012 by the Central Board of Direct Taxes to minimize any confusion regarding the pricing of international transactions through a mutual agreement between the taxpayer and tax authority.
● Advance Pricing Agreement (APA) provisions were introduced in the Income-tax Act, 1961. The rules in respect of the APA scheme have been notified by the Central Board of Direct Taxes (CBDT) by way of insertion of Rule 10F to Rule 10T and Rule 44GA in the Income-tax Rules, 1962 (Rules).
● An APA can be unilateral, bilateral, or multilateral
a) Unilateral APA: an APA that involves only the tax payer and the tax authority of the country where the tax payer is located.
b) Bilateral APA (BAPA): an APA that involves the tax payer, associated enterprise (AE) of the tax payer in the foreign country, tax authority of the country where the tax payer is located, and the foreign tax authority.
c) Multilateral APA (MAPA): an APA that involves the tax payer, two or more AEs of the tax payer in different foreign countries, tax authority of the country where the tax payer is located, and the tax authorities of AEs.