ele ted s 23.9
their needs. In case the firm defaults in 17. (d) Abenomics is the name given to a suite
servicing the loans the LoU-issuing bank/ of measures introduced by the Japanese
institution is supposed to compensate the Prime Minister Shinzo Abe after his
lending banks/financial institutions. It December 2012 re-election to the post
was in news by late February 2018 when he has held since 2007. Such measures
a firm (led by Nirav Modi) was accused by a government to boost growth is not
of a Rs. 11,500 crore borrowings from possible in the case of the recession-hit
several overseas branches of the Indian economies of the Western world—the
banks on the basis of a LoU issued by Japanese economy has an edge over them
the Punjab National Bank (PNB) in the due to its low levels of inflation and fiscal
name of his firm (Gitanjali). deficit.
12. (b) The idea was for the first time used by the 18. (d) SWIFT (Society for Worldwide
GoI in the Union Budget 2011–12, but Interbank Financial Telecommunica-
it was not borrowed from the Western tion) is a ‘messaging network’ that con-
nations—this is an Indian idea. nects banks and financial institutions
13. (d) The agricultural provisions (i.e., the across the world. The letter of undertak-
Agreement on Agriculture) of the WTO ings (LoUs) are communicated through
have put a ceiling on the amount of farm it only by the banks/financial institutions
subsidies (both direct and indirect) of across the globe.
the member country—as they distort the
19. (d) As interest rate goes up the investment
free market prices of farm goods.
decreases because the cost of fund
14. (b) The BIPA is a kind of India alternative of increases.
the ICSID (one of the World Bank group
20. (a) Demand deposits will have more
entity). But it has no links either with the
ICISD or IMF. By now, India has signed liquidity than the saving deposits as the
such agreements with 82 countries. former includes the ‘current accounts’ of
the firms (the most liquid deposit with
15. (c) NSEL (National Spot Exchange Ltd.) is
the banks).
promoted by a private firm (which owns
it by 99 per cent) Financial Technologies 21. (b) This method is being used by the GoI
India Ltd. and NAFED (National for the first time, though, it has been
Agricultural Cooperative Marketing already used by the states (Andhra
Federation of India Ltd.) for ‘spot trading’ Pradesh, Bihar, Gujarat, MP, Punjab,
in commodities in India, operating since etc.). By late January 2016, the Ministry
2008. Other such bourses—the NCDEX of Railways used this method to award
Spot and R-Next, are promoted by the contracts for development of 400 railway
NSE and Reliance Capital, respectively. stations in the country. Though, the
Since February 2012 ‘spot contracts’ are government has been discouraged by the
being looked after by the Forward Market Vijay Kelkar Expert Committee (set up
Commission (FMC)—regulated under on ‘Revisiting and Revitalising the PPP
the Forward Contract (Regulation) Act, Model of Infrastructure Development’).
1952. The committee submitted its report in
16. (d) All of the statements are correct about January 2016 itself.
the P-Notes. 22. (c) Both of the statements are correct.