26. When RBI reduces CRR, it results into:

  • Option : B
  • Explanation : Effect of Decrease in Cash Reserve Ratio
    Effect on interest rates: When the cash reserve ratio is decreased by the RBI, banks will have more money to invest in other businesses since the amount of funds that needs to be kept with the RBI is low. This shows that banks will have an excess of funds and hence, there will be a decline in the interest rates that are charged on loans.
    Effect on inflation: When the cash reserve ratio is minimised, commercial banks will have more funds and hence, the money supply of the banking system will increase. When there is a rise in the money supply, excessive funds will result in high inflation.
    When the CRR is minimised, funds are drawn out from the economic system excessively and then the money supply is affected negatively wherein there is a shortage of funds. Since the money supply has declined in this situation, the inflation also reduces.
    Effect of Increase in Cash Reserve Ratio
    When the cash reserve ratio is raised, banks will have very limited amount of funds because they are asked to retain huge amounts of cash in hand with the Reserve Bank of India. Hence, banks will not have any money to use for other purposes. You also need to remember that the RBI does not pay any interest on balances of the CRR.
    Now, since banks are not able to receive any interest, they decide to raise the interest rates. They will be forced to raise the interest rates for their loan products such as personal loans, car loans, home loans, two-wheeler loans, etc. When interest rates are increased, even the equated monthly installments (EMIs) of the borrowers will increase. Your loan costs will rise pretty intensely.
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28. Match the items of List-I with the items of List-II and choose the correct answer from the code given below.

(a) Balance of trade(i) Imports and exports of goods and services and   unilateral transfer of goods and services
(b) Current account(ii) Transactions leading to changes in the financial  assets and liabilities of a country
(c) Balance of payments(iii) All economic transactions between a countries  residents and residents of other countries
(d) Capital account(iv) Value of exports and  imports of a country


1(iii) (ii)(iv)(i)
2(i) (ii)(iii)(iv)

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30. Choose the correct code for the following statements being correct or incorrect.
Statement I: Intellectual Property (IP) is a category of property that includes intangible creations of the human intellect.
Statement II: IPR does not include trade secrets and moral rights.

  • Option : D
  • Explanation : “Intellectual Property shall include the rights relating to; literary, artistic and scientific works, performances of performing artists, inventions in all fields of human endeavour, scientific discoveries, industrial designs, trademarks, service marks and commercial names and designations, protection against unfair competition, and all other rights resulting from intellectual activity in the industrial, scientific, literary or artistic fields” (WIPO Convention).
    IP is usually divided into two categories: copyright and industrial property. Industrial property rights include patents for inventions, trademarks, industrial designs, plant variety rights, and of course, GIs. The holder of IPR has a legally recognized capacity to authorize and/or prevent others from acting in certain ways with respect to his/her intellectual property.
    Nature and Kinds of Intellectual Property
    ∎ Creation of human mind (Intellect)
    ∎ Intangible property
    ∎ Exclusive rights given by statutes
    ∎ Attended with limitations and exceptions
    ∎ Time-bound
    ∎ Territorial (Patent terms vary considerably from country to country)
    ∎ Different kinds of properties are-
    ∎ Movable Property: Car, Pen, Furniture, Dress
    ∎ Immovable Property: Land, Building
    ∎ Intellectual Property: Literary works, inventions
    Important IP laws that prevail in most of the countries are patents, copyright and related rights, trademarks, trade secrets, industrial designs, industrial property, GIs, layout designs/topographies and protection of new plant varieties.
    Rights in the Content
    A. The Content Provider is the exclusive owner of the Content and shall retain all rights therein and any Content derived therefrom as well as in the Content Provider Marks and any and all intellectual property rights relating thereto. This shall include all inventions, discoveries, trademarks, patents, trade names, copyrights, moral rights, knowhow, intellectual property, software, shop rights, licenses, developments, research data, designs, technology, trade secrets, test procedures, processes, route lists, computer programs, computer discs, computer tapes, literature, reports, and other confidential information, intellectual and similar intangible property rights, whether or not patentable or copyrightable (the “Content Provider Property”).
    B. The Content Distributor is the exclusive owner of any content created by the Content Distributor (the “Content Distributor Content”) and shall retain all right, title and interest to the Content Distributor Content or any content derived therefrom, the Content Distributor’s Service, the Content Distributor’s trademarks, and all Intellectual Property Rights therein, excluding the Content Provider Property.
    C. During the Term of this Agreement, the Content Provider shall not license nor authorize another to license any person other than the Content Distributor the right to use the Content or the Content Provider Marks in connection with promoting in the United States any wireless service that makes the Content available via the Platform.
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