Day-739 | Daily MCQs | UPSC Prelims | ECONOMY

Answer: B
Explanation:
Anna Darpan is a digital supply chain management system launched by the Food Corporation of India (FCI) to modernize its operations. The system is designed to improve efficiency and productivity, and to help the FCI make better decisions about food distribution and storage. For this, the FCI has selected M/s Coforge Limited as the system integrator (SI).
The ANNA DARPAN system has been envisioned to achieve several key objectives that align with the strategic vision of FCI leadership. These objectives are central to overcoming the limitations of the current systems and include:
1. Improved Efficiency and Productivity: Streamlining processes to optimize performance across the supply chain.
2. Interactive and User-Friendly UI Design: Creating an intuitive interface that enhances user interaction.
3. Data-Driven Decision Making: Leveraging data analytics to support strategic and operational decisions.
4. Integration with Internal and External Systems: Facilitating smooth interoperability with other systems, both within and outside FCI.
5. Merger of Existing Internal Systems: Merging and optimizing current applications to reduce redundancy and improve efficiency.
6. Mobile-First Approach: Prioritizing mobile accessibility to ensure the system is accessible anytime, anywhere.

Answer: B
Explanation:
● Statement 1 is correct: Insider trading is the practice of buying or selling a company’s securities based on material, non-public information. Insider trading disrupts market transparency and fairness. While insiders can trade, doing so based on non-public information without disclosure is illegal.
● Statement 2 is incorrect: Penalties can include both forfeiture of profits and additional fines, imprisonment, or other legal actions.
● Statement 3 is correct: SEBI, this year, has amended its Prohibition of Insider Trading (PIT) Regulations of 2015 to expand the ambit of relatives covered under the securities law, by replacing the word “immediate relative” with “relative”. As per the new norms, relatives will include a person’s spouse, their parents and in-laws, siblings of the person and the spouse and those siblings’ spouses, child of person and child of spouse, and those children’s spouses.

Answer: B
Explanation:
Capital account convertibility refers to the freedom to convert domestic currency into foreign currency and vice versa for capital transactions, allowing unrestricted movement of capital across borders. While it enhances global integration and investor confidence, full capital account convertibility also exposes a country to greater financial risk, especially in the context of global financial instability.
The chances of speculative attacks increase under full capital account convertibility. Full capital account convertibility allows for unrestricted movement of capital into and out of a country. This increased liquidity can attract speculators who may attempt to profit from short-term fluctuations in exchange rates or asset prices. Hence, both Statement-I and Statement-II are correct and Statement-II is the not correct explanation for Statement-I

Answer: D
Explanation
Statement-I is incorrect but Statement-II is correct: A withdrawal from demand deposit by a person will not have any impact on the aggregate money supply. Let’s understand this with the help of an example.
When you withdraw Rs. 100,000 in cash from your demand deposit account, you’re essentially shifting the money from one form (demand deposit) to another (currency). While the composition of the money supply changes, the total amount remains the same.
This is because aggregate money supply consists of currency in circulation and demand deposits.

Answer: C
Explanation:
In an import-dependent economy, increased pressure on the domestic currency to depreciate can have significant implications for the economy, as it can lead to higher import costs, inflation, and potentially a trade deficit.
Lowering of interest rate can lead to capital flow as domestic currency becomes unattractive. This can decrease demand for the domestic currency and there will be more pressure to depreciate. Hence, option 1 is incorrect.
Introduction of import quotas can help restrict imports and reduce the demand for foreign currency. Hence, option 2 is correct.
Tax breaks to exporters can help increase the export of the country and improve the forex reserves. This can arrest the currency depreciation. Hence, option 3 is correct.