industries manufacturing & service sectors section 1 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 1

Which of the following statements are true regarding Universal Service Obligation Fund (USOF)?

  1. This fund is under Dept. of Telecommunication
  2. This fund is used to provide ICT services in rural and remote areas
  3. This fund is created out of the budgetary resources of Govt. of India
Select the correct answer using the code given below:

a) (i) only

b) (iii) only

c) (i) & (ii) only

d) (ii) & (iii) only

Answer: (c)

Apart from the higher capital cost of providing telecom services in rural and remote areas, these areas also generate lower revenue due to lower population density, low income and lack of commercial activity.

Thus, normal market forces alone would not direct the telecom sector to adequately serve backward and rural areas. Keeping in mind the inadequacy of the market mechanism to serve rural and inaccessible areas on one hand and the importance of providing vital telecom connectivity on the other, most countries of the world have put in place policies to provide Universal Access and Universal Service to ICT.

The New Telecom Policy (of India)- 1999 (NTP'99) provided that the resources for meeting the Universal Service Obligation (USO) would be raised through a 'Universal Access Levy (UAL)', which would be a percentage of the revenue earned by the telecom operators under various licenses.

The Universal Service Support Policy came into effect from 01.04.2002. The Indian Telegraph (Amendment) Act, 2003 giving statutory status to the Universal Service Obligation Fund (USOF) was passed by both Houses of Parliament in December 2003.

USOF is under the Dept. of Telecommunication, Ministry of Communication and is being used to connect villages in rural areas under the BharatNet project. USOF provides widespread and non-discriminatory access to quality ICT services at affordable prices to people in rural and remote areas.

It provides an effective and powerful linkage to the hinterland thereby mainstreaming the population of rural and remote parts of the country. It ensures that universal services are provided in an economically efficient manner.

It also ensures that by developing hitherto unconnected areas, the benefits of inclusive growth are reaped by our nation, bringing in its wake rapid socio-economic development and improved standards of living.

Question : 2

What is the difference between Millenium Development Goals and Sustainable Development Goals?

  1. Millennium Development Goals (MDGs) were not developed through an intergovernmental process, while SDG was.
  2. All the MDGs are applicable only to the developing countries except for MDG 8 which relates to aid and finance.
Options :

a) Both 1 and 2

b) 1 only

c) 2 only

d) None of these

Answer: (a)

The Millenium Development Goals focus on developing countries.

There is one exception :

MDG number 8 on developing a global partnership for development, which includes commitments for developed countries to help developing countries.

An important difference is that the sustainable Development Goals are meant to apply to all countries, including developed countries.

Another difference is that the sustainable Development Goals are explicitly meant to include the three dimensions of sustainable development economic, social and environmental.

Question : 3

Credit Rating Agencies are regulated by which ministry/ department/ agency?

a) Reserve Bank of India

b) Ministry of Corporate Affairs

c) Securities and Exchange Board of India

d) Ministry of Finance

Answer: (c)

Credit Rating Agencies (CRAs) are regulated by SEBI.

In light of the COVID-19 crisis, SEBI directed CRAs that, if the default by the companies (which are listed on the exchange and which has been provided Credit Rating by any of the CRAs) is solely due to COVID-19 LOCKDOWN then the CRAs should not recognize it as a DEFAULT and should not degrade their rating.

The definition of NPA is given by RBI for financial institutions regulated by RBI like banks and NBFCs. But some (financial institutions) like Mutual Funds, Exchange Traded Funds (ETFs), are also regulated by SEBI for which NPA definition has been given by SEBI.

Question : 4

Consider the following statements:

  1. Lack of adequate entrepreneurship and leadership in business.
  2. Lack of saving to invest.
  3. Lack of technology, skills and infrastructure.
  4. Limited purchasing power among the larger masses.
Which of the above statement(s) are correct ?

a) 2, 3 and 4

b) 1, 3 and 4

c) 1, 2 and 3

d) 1, 2 and 4

Answer: (d)

Question : 5

Sunrise industries are industries :

a) Which are small scale industries

b) Which are well developed and have ample scope for future development.

c) Which improve exports performance of the country.

d) Which have high growth potential and meet future requirements of the economy.

Answer: (d)

Sunrise industries are industries which have high growth potential and meet future requirements of the economy.

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