Lakshya UPSC PT 2022 – Economic Lecture – 4 – Complete One Year Current Affairs – Free PDF Download

Government securities

News –

• Recently the Government of India allowed retail participation in Government Securities  (G-secs).

Q) Consider the following statements: (2018)

1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.
2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.
3. Treasury bills offered are issued at a discount from the par value.

Which of the statements given above is/are correct?

1. 1 and 2 only
2. 3 Only
3. 2 and 3 only
4. 1, 2 and 3

Q) In the context of Indian economy, Open Market Operations’ refers to (2013)

• borrowing by scheduled banks from the RBI
• lending by commercial banks to industry and trade
• purchase and sale of government securities by the RBI
• None of the above

Relationship  between Bond  Prices and Yield

Long term Repo operations

• The Reserve Bank of India (RBI) conducted special long-term repo operations (SLTRO) of  Rs 10,000 crore for Small Finance Banks (SFBs)  in 2021.

Q) If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do?

• Cut and optimize the Statutory Liquidity Ratio
• Increase the Marginal Standing Facility Rate
• Cut the Bank Rate and Repo Rate

Select the correct answer using the code given below:

1. 1 and 2 only
2. 2 only
3. 1 and 3 only
4. 1, 2 and 3

Retrospective  Taxation

• With an amendment bill passed in Lok Sabha, Income Tax Act 1961 was amended to remove  the retrospective taxation

Q) Consider the following statements :

• Tax revenue as a percent of GDP of India has steadily increased in the last decade.
• Fiscal deficit as a percent of GDP of India has steadily increased in the last decade.

Which of the statements given above is/are correct ?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor

Direct Monetisation of Fiscal Deficit

News –

• The Reserve Bank of India (RBI) debated whether or not to directly monetise India’s fiscal imbalance  in light of the second wave of COVID-19

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