With reference to 'Financial Stability and Development Council', consider the following statements : 1. It is an organ of NITI Aayog. 2. It is headed by the Union Finance Minister. 3. It monitors macroprudential supervision of the economy. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.3 only
- C.2 and 3 only
- D.1, 2 and 3
Correct answer
Explanation
The correct answer is C, 2 and 3 only. The Financial Stability and Development Council (FSDC) is chaired by the Union Finance Minister and oversees macroprudential supervision, but it has nothing to do with NITI Aayog.
The FSDC was set up by the Government of India in December 2010, following the Raghuram Rajan committee's recommendation after the global financial crisis. It is a non-statutory apex body housed in the Ministry of Finance. Its members include the heads of the financial regulators: the RBI Governor, the chairpersons of SEBI, IRDAI and PFRDA, along with senior finance ministry officials. It works for financial stability, inter-regulatory coordination, financial literacy and inclusion, and the macroprudential supervision of the economy, including large financial conglomerates.
A is wrong because the FSDC is not an organ of NITI Aayog, which was created only in 2015. B is wrong because it leaves out statement 2. D is wrong because statement 1 is incorrect.
Exam tip: FSDC 2010, chaired by the Finance Minister; its sub-committee is chaired by the RBI Governor.
Practice Questions
View allWhich one of the following forms of money supply is considered as the most widely used in the Indian monetary system?
- A.M1
- B.M2
- C.M3
- D.M4
Show answer
M3, called broad money, is the measure of money supply most commonly used by the RBI for analysis and policy.
Read the full explanation →Which one among the following pairs of type of firm and feature is not correctly matched ?
- A.Oligopoly firm : Interdependence in decision-making
- B.Monopolistic competitive firm : Firm is a price setter
- C.Monopoly firm : Produces an efficient level of output
- D.Perfectly competitive firm : Produces socially optimum output
Show answer
A monopolist restricts output and charges a higher price, so it does not produce the efficient level of output. A monopoly is a single seller of a product with no close substitutes and strong barriers to entry.
Read the full explanation →Which one of the following statements is not correct?
- A.When total utility is maximum, marginal utility is zero.
- B.When total utility is decreasing, marginal utility is negative.
- C.When total utility is increasing, marginal utility is positive.
- D.When total utility is maximum, marginal and average utility are equal to each other.
Show answer
At the point where total utility is highest, marginal utility is zero but average utility is still positive, so the two cannot be equal.
Read the full explanation →Which one of the following is not an objective of the MGNREGA?
- A.Providing up to 100 days of skilled labour in a financial year
- B.Creation of productive assets
- C.Enhancing livelihood security
- D.Ensuring empowerment to women
Show answer
The Act guarantees at least 100 days of unskilled manual work, not skilled labour.
Read the full explanation →Which one of the following is the opportunity cost of a chosen activity ?
- A.Out of pocket cost
- B.Out of pocket cost plus cost incurred by the Government
- C.Value of all opportunities forgone
- D.Value of next best alternative that is given up
Show answer
Opportunity cost is what you sacrifice by choosing one option, measured by the best option you did not take. Because resources such as time, money and land are scarce, choosing one use means giving up others.
Read the full explanation →