Flash Card

LAKSHYA-75 [Day-58] Static Flash Cards for IAS Prelims 2020

Foreign exchange earnings from tourism; Patent Cooperation Treaty (PCT); Equalisation Levy; Arctic Council; Banks Board Bureau (BBB); eBkray Platform; Global Innovation Index; Global Economic Freedom Index; New National Policy on Official Statistics; Debt Financing; Equity Financing; Headline vs. Core Inflation;
By IASToppers
May 06, 2020

Core inflation considers commodity prices while headline inflation does not. True OR False?

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Answer: False

Correct Answer:

  • Headline inflationconsiders the price of all the goods and services, but Core inflation considers the prices of all goods and services except commodity prices (like prices of vegetables, fruits etc) and oil prices.

Enrich Your Learning:

Headline vs. Core Inflation

  • Core Inflation excludes the inflation caused by volatile price commoditiessuch as food and energy.
  • Headline inflation includes inflation due to prices of all the commodities(including commodities like food and energy).
  • Headlines and core inflation are used to set monetary policyin India by RBI. 
  • Headline includes volatile inputs like food and energy in the CPI basket which are seldom affected by short term demand- supply shocks.
  • This is done because the prices of commodities and oil fluctuate very frequently and give us unstable numbers. So, many economists prefer to take core instead of headline inflation in order to get stable numbers over time.

In terms of foreign exchange earnings from tourism, India ranks 10th in the world and 7th in Asia & Pacific. True OR False?

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Answer: False

Correct Answer:

  • In terms of foreign exchange earnings from tourism, India ranks 13th in the world and 7th in Asia & Pacific.

Enrich Your Learning:

Foreign tourist arrivals

Why in News?

  • Growth of foreign tourist arrivals to India slowed down to 2.7 per centin January-October period of 2019 in tune with the global trend, according to the Economic Survey 2019-20.

Key Facts:

  • Foreign tourist arrivals growth (year-on year) has decelerated since then to 2 per cent in 2018 and 2.7 per cent in January-October 2019.
  • Foreign exchange earnings totalled USD 24 billion in January-October 2019, with a growth of 2 per cent.
  • In 2018, India ranked 22nd in the worldin terms of international tourist arrivals, improving from the 26th position in 2017.
  • In terms of foreign exchange earnings from tourism, India ranks 13th in the world and 7th in Asia & Pacific.
  • The survey said visitors from the top 10 countries — Bangladesh, USA, UK, Sri Lanka, Canada, Australia, Malaysia, China, Germany and Russia— accounted for 65 per cent of the total foreign tourist arrivals in India.
  • Among foreign tourists, 4 per cent visited India for leisure; holiday and recreation, 16.3 per cent for business purposes, and 13.5 per cent was Indian Diaspora.
  • With the e-Visa scheme available for 169 countries, the survey said foreign tourist arrivals to India on e-visas increased from 4.45 lakh in 2015 to 23.69 lakh in 2018, and stood at 21.75 lakh in January-October 2019, recording nearly 21 per cent.

What is the main difference between a debt and equity financing?

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Answer:

  • The primary difference between debt and equity financingis that debt must be repaid at maturity, while there is no obligation to repay equity financing. Interest must be paid on debt while the company is under no obligation to issue dividends on equity financing.

Enrich Your Learning:

Debt Financing vs. Equity Financing

Debt Financing:

  • When a firm raises money for capital by selling debt instruments to investors, it is known as debt financing.
  • In return for lending the money, the individuals or institutions become creditors and receive a promise that the principal and interest on the debt will be repaid on a regular schedule.

Equity Financing:

  • Equity financing is the process of raising capital through the sale of shares in a company. With equity financing comes an ownership interest for shareholders.
  • Equity financing may range from a few thousand dollarsraised by an entrepreneur from a private investor to an initial public offering (IPO) on a stock exchange running into the billions.

The New National Policy on Official Statistics is based on the recommendations of the National Statistical Commission and the United Nations Fundamental Principles of Official Statistics. True OR False?

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Answer: True

Enrich Your Learning:

New National Policy on Official Statistics

  • The Union Budget 2020-21mentions the New National Policy on Official Statistics which intends to promote the use of the latest technologies including AI and lay down a road-map towards modernized data collection, integrated information portal and timely dissemination of information. 

Key updates about the New National Policy on Official Statistics:

  • The new policy comes in the wake of certain leaked government reports on jobs and consumption data which raised questions about delays in making them public
  • The new national policy on official statistics is based on the recommendations of the National Statistical Commission andthe United Nations Fundamental Principles of Official Statistics. 
  • The policy seeks to create synergy between the Centre and the states in statistical mattersbesides promoting an ecosystem for “informed debate” on various social and economic issues affecting people’s lives.
  • The ministry began drafting the policy in June, shelving a proposal to set up a National Statistical Development Council, an independent authority headed by the Prime Ministerthat would supersede the National Statistical Commission (NSC). The latter is the apex body on statistical matters.
  • It had also proposed to make the chief statistician a permanent member of the NSC through the redrafted policy for improved coordination between the NSC and the government.

What is India’s ranking in the global economic freedom index 2019?

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Answer:

  • India ranks 79 out of 162 countriesand territories included in the Economic Freedom of the World: 2019 Annual Report, released by the Centre for Civil Society (CCS).

Enrich Your Learning:

Global Innovation Index

  • It ranks nations based on 80 indicators, ranging from intellectual property filing rates to R&D, online creativity, mobile application creation, computer software spending, education spending, scientific & technical publications and ease of starting business.
  • India’s Confederation of Indian Industry(CII) is one of the knowledge partners which assist GII team in bringing out the annual ranking.
  • GII is published annually since 2007and is considered leading benchmarking tool for business executives, policy makers and others seeking insight into state of innovation around the world.
  • It is being used by them to evaluate progress on continual basis.
  • GII 2018 has placed India at the 57thposition among 130 countries and improved its ranking by five places to 52nd in 2019.

Global Economic Freedom Index

  • Indiahas jumped 11 spots on Global Economic Freedom index from last year’s 96th spot to the current ranking of 79.
  • The Index of Economic Freedom is an annual index and rankingcreated in 1995 by the Heritage Foundation and The Wall Street Journal to measure the degree of economic freedom in the world’s nations.
  • Hong Kong’seconomic freedom score is 90.2, sustaining its status as the world’s freest economy in the 2019 Index. The second and third rank goes to Singapore and New Zealand.

What is eBkray Platform?

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Answer:

The eBkray platform provides navigational links to all PSB e-auction sites, property search feature and presents single-window access to information on properties up for e-auction, comparison of similar properties, and also contains videos and photographs of the uploaded properties

Enrich Your Learning:

eBkray Platform:

  • Objective:To enhance user experience through seamless access to information by search based on type and location of property put up for e-auction by banks in India.
  • It will provide navigational links to all Public Sector Banks (PSBs) e-auction sites, property search feature and will present single-window access to information on properties up for e-auction, comparison of similar properties, as well as contains videos and photographs of uploaded properties.
  • The platform will help buyer to easily navigate to bank e-auction site after a notified property is selected. It also helps user to search property using State-wise, District-wise and bank-wise details.

Banks Board Bureau (BBB) was established on the recommendations of which committee?

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Answer: P.J. Nayak Committee

Enrich Your Learning:

About the Banks Board Bureau:

  • With a view to improve the Governance of Public Sector Banks (PSBs), the Government had decided to set up an autonomous Banks Board Bureau in August 2015.
  • The bureau was announced as part of the seven-point Indradhanush plan to revamp PSBs.
  • BBB is an autonomous body.
  • The bureau will have three ex-officio members and three expert members, in addition to the Chairman. All the Members and Chairman will be part time.

Its functions:

  • The Bureau is mandated to play a critical role in reforming the troubled public sector banks by recommending appointments to leadership positions and boards in those banks and advise them on ways to raise funds and how to go ahead with mergers and acquisitions.
  • It will constantly engage with the boards of all 22 public sector banks to formulate appropriate strategies for their growth and development.
  • They will also constantly engage with the Board of Directors of all the public sector banks to formulate appropriate strategies for their growth and development.
  • The bureau will search and select heads of public sector banks and help them develop differentiated strategies of capital raising plans to innovative financial methods and instruments.
  • It would also be responsible for selection of non-executive chairman and non-official directors on the boards.

India is a member of Arctic Council. True OR False.

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Answer: False.

Correct statement: India is not a member of the Arctic Council.

Enrich Your Learning:

Arctic Council:

  • The Arctic Council is an advisory body that promotes cooperation among member nations and indigenous groups.
  • Its focus is on sustainable development and environmental protection of the Arctic.It does not make policy or allocate resources, and its decisions must be unanimous.
  • In terms of being a reflection of a nation’s priorities, it can only go so far since all eight have to agree to the same thing.
  • Eight member countriesconstitute the council: Canada, Denmark, Finland, Iceland, Norway, Russia, Sweden, and the United States as these are the eight countries with sovereignty over the lands within the Arctic Circle.
  • Observer status is open to non-Arctic states approved by the Councilat the Ministerial Meetings that occur once every two years.
  • Observers have no voting rights in the Council. Presently, there are 12 observer states including India and China.

What is Equalisation Levy?

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Answer: Equalisation Levy is a direct tax, which is withheld at the time of payment by the service recipient.

Enrich Your Learning:

Equalisation Levy:

  • Equalisation Levy was introduced in India in 2016, with the intention of taxing the digital transactions i.e. the income accruing to foreign e-commerce companies from India.
  • It is aimed at taxing business to business transactions.

Applicability of Equalisation Levy:

  • Equalisation Levy is a direct tax, which is withheld at the time of payment by the service recipient. The two conditions to be met to be liable to equalisation levy:
  • The payment should be made to a non-resident service provider;
  • The annual payment made to one service provider exceeds Rs. 1,00,000 in one financial year.

Services Covered Under Equalisation Levy:

  • Currently, not all services are covered under the ambit of equalisation Levy. The following services covered:
  • Online advertisement;
  • Any provision for digital advertising space or facilities/ service for the purpose of online advertisement

The Patent Cooperation Treaty is an international treaty administered by which international organization?

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Answer: World Intellectual Property Organization (WIPO)

Enrich Your Learning:

Patent Cooperation Treaty (PCT):

  • The Patent Cooperation Treaty (PCT) is an international patent law treaty, concluded in 1970.
  • It provides a unified procedure for filing patent applications to protect inventions in each of its contracting states.
  • The PCT makes it possible to seek patent protection for an invention simultaneously in each of a large number of countriesby filing an “international” patent application.
  • Such an application may be filed by anyone who is a national or resident of a PCT Contracting State.
  • It may generally be filed with the national patent office of the Contracting State of which the applicant is a national or resident or, at the applicant’s option, with the International Bureau of WIPO in Geneva. 

Procedure for application:

  • A PCT application does not itself result in the grant of a patent, since there is no such thing as an “international patent”, and the grant of patent is a prerogative of each national or regional authority.
  • In other words, a PCT application, which establishes a filing date in all contracting states, must be followed up with the step of entering into national or regional phases to proceed towards grant of one or more patents.
  • The PCT procedure essentially leads to a standard national or regional patent application, which may be granted or rejected according to applicable law, in each jurisdiction in which a patent is desired.

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Daily Current Flash Cards 2020 Prelims 2020
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