Statement 2 is correct. Statement 1 and 3 are incorrect.
Standing Deposit Facility (SDF) :In 2018, the amended Section 17 of the RBI Act empowered the Reserve Bank to introduce the SDF – an additional tool for absorbing liquidity without any collateral.
By removing the binding collateral constraint on the RBI, the SDF strengthens the operating framework of monetary policy.
The SDF is also a financial stability tool in addition to its role in liquidity management.
The SDF will replace the fixed-rate reverse repo (FRRR) as the floor of the liquidity adjustment facility corridor.
This concept, first recommended by the Urjit Patel committee report in 2014, may soon become part of the central bank’s toolkit to manage liquidity. Hence statement 1 is incorrect.
A standing deposit facility is a remunerated facility that will not require the provision of collateral for liquidity absorption. Hence statement 2 is correct.
Banks, at different points in time, may be short of funds or flush with money.
When they need money for the short-term, they borrow from the RBI (Repo Rate) for which they pledge government securities.
When banks have excess funds they lend it to the RBI at the reverse repo rate that is lower than the repo rate. Hence statement 3 is incorrect.

Statement 1 is incorrect. Statement 2 and 3 are correct.
CBDC is a digital form of Fiat Currency which can be transacted using wallets backed by blockchain and is regulated by the central bank. It is a legal tender issued by a central bank in a digital form. Hence statement 1 is incorrect and statement 3 is correct.
Fiat money is a government-issued currency that is not backed by a commodity such as gold. Fiat money gives central banks greater control over the economy because they can control how much money is printed.
As the cryptocurrencies are not pegged to any asset or currency, its value is solely determined by speculation (demand and supply). Hence statement 2 is correct.
Due to this, there has been huge volatility in the value of cryptocurrencies like bitcoin.
Digital Rupee provides an opportunity for India to establish the dominance of Digital Rupee as a superior currency for trade with its strategic partners, thereby reducing dependency on the dollar.
The need for a sovereign digital currency arises from the anarchic design of existing cryptocurrencies, wherein their creation, as well as maintenance, are in the hands of the public.
By regulating digital currency, the central bank can put a check on their malpractices.

Statements 1 and 3 are correct. Statement 2 is incorrect.
The scheme was launched as part of the Aatmanirbhar Bharat Abhiyan package announced in May 2020 to mitigate the distress caused by coronavirus-induced lockdown, by providing credit to different sectors, especially Micro, Small and Medium Enterprises (MSMEs). Hence statement 1 is correct.
It aims to provide fully guaranteed and collateral free additional credit to MSMEs, business enterprises, MUDRA borrowers and individual loans for business purposes to the extent of 20% of their credit outstanding as on 29th February, 2020. Hence statement 2 is incorrect.
100% guarantee coverage is being provided by the National Credit Guarantee Trustee Company, whereas Banks and Non-Banking Financial Companies (NBFCs) provide loans.
Tenure of loans provided under the Scheme is four years, including a moratorium of one year on principal repayment. Hence statement 3 is correct.
Interest rates under the Scheme are capped at 9.25% for Banks and Financial Institutions (FIs), and 14% for NBFCs.
Present Status: As per data uploaded by Member Lending Institutions on the ECLGS portal, an amount of Rs. 2.03 lakh crore has been sanctioned under the Scheme to 60.67 lakh borrowers so far, while an amount of Rs. 1.48 lakh crore has been disbursed.

Statements 1, 2, and 3 are correct. Statement 4 is incorrect.
The Indian economy can be classified into various sectors on the basis of ownership, working conditions and the nature of the activities.
In Primary sector of economy, activities are undertaken by directly using natural resources. Agriculture, Mining, Fishing, Forestry, Dairy etc. are some examples of this sector.
Secondary activities are those activities that involve the manufacturing of finished goods by processing the raw materials that are found in nature.
Secondary activities add value to natural resources by transforming raw materials into valuable products. Secondary activities are concerned with manufacturing, processing, and construction (infrastructure) industries. Hence statement 2 is correct.
Cotton in the boll has limited use but after it is transformed into yarn, becomes more valuable and can be used for making clothes. The cotton textile industry involves spinning, weaving, and finishing fabrics. Hence statement 3 is correct.
Tertiary sector’s activities help in the development of the primary and secondary sectors. By itself, economic activities in tertiary sector do not produce a goods but they are an aid or a support for the production. This sector jobs are called white collar jobs.
The mining of Iron ore is a primary activity and Extraction of Iron from Iron ore is a secondary activity. Hence statement 1 is correct and statement 4 is incorrect.

Statement 1 and 3 are incorrect. Statement 2 is correct.
Indian economy is expected to grow by approximately 7% in the years to come. Sectors like infrastructure and automobiles will receive a renewed thrust, that would further generate demand for power and steel in the country. The mining sector provides raw materials to these fast-growing sectors.
The total value of mineral production (excluding atomic & fuel minerals) during 2022-23 has been estimated at $16.6 bn, which shows an increase of about 13% over that of the previous year.
The mining sector’s contribution to the GDP is 2.3-2.5 % at present. Mineral production in India grew at a compound annual growth rate (CAGR) of 5.72% between 2017-18.and 2021-22. Statement 1 is incorrect.
It is a labour-intensive sector and provides employment for both unskilled labour and skilled labour. Being a part of the primary sector, it largely provides unskilled jobs. Hence, Statement 2 is correct.
The National Mineral Policy 2019 encourages the private sector to take up exploration, on a revenue sharing model. Statement 3 is incorrect.
It also mentions long term import-export policy for mineral, which will help the private sector in planning and bring stability in business.

Option B is correct. Gross national product (GNP) is an estimate of total value of all the final products and services turned out in a given period by the means of production owned by a country’s Citizens.
GNP is commonly calculated by taking the sum of personal consumption expenditures, private domestic investment, government expenditure, net exports and any income earned by residents from overseas investments, minus income earned within the domestic economy by foreign residents.
Net exports represent the difference between what a country exports minus any imports of goods and services
GNP is related to another important economic measure called gross domestic product (GDP), which takes into account all output produced within a country’s borders regardless of who owns the means of production.
GNP starts with GDP, adds residents’ investment income from overseas investments, and subtracts foreign residents’ investment income earned within a country.
Applying the concepts of GDP and GNP to the scenario given in the question where in a Country X, GDP is less than its GNP. The most appropriate deduction would be the Income earned by domestic corporations outside of X exceeds income earned within X by foreign corporations.

Both the statements are correct.
GDP is commonly used as the metric for evaluating the state of economic activity. In India, however, there is an overwhelming preference of statisticians, the academia and policymakers for the use of gross value added (GVA) in view of the latter’s superior sectoral coverage and tractability in terms of explaining primary, secondary and tertiary areas of activity that together constitute aggregate supply. While GVA gives a picture of the state of economic activity from the producers’ side or supply side, the GDP gives the picture from the consumers’ side or demand perspective. Both measures need not match because of the difference in treatment of net taxes. Hence, statement 1 is correct.
GVA is also a better reflection of the productivity of producers as it excludes indirect taxes which could distort an analytical view of the production process. As a result, high-frequency indicators of activity have developed around the constituents of GVA and less robustly around GDP. In the same vein, however, it can be argued that GDP is distorted by the presence of subsidies. Hence statement 2 is correct.

Statement 1, 3 and 4 are correct. Statement 2 is incorrect.
Distribution of GDP may not be uniform – If the GDP of the country is rising, the welfare may not rise as a consequence. This is because the rise in GDP may be concentrated in the hands of very few individuals or firms. For the rest, the income may in fact have fallen. In such a case the welfare of the entire country cannot be said to have increased. Hence statement 1 is correct.
Growth of GDP results in rise of Direct taxes – Increasing or decreasing of direct taxes is a fiscal policy matter which has no direct connection with the GDP. So this statement does not explain as to why GDP cannot be regarded as an index of the wellbeing of people. Hence statement 2 is not correct.
Many activities in an economy are not evaluated in monetary terms. Many activities in an economy are not evaluated in monetary terms. For example, the domestic services women perform at home are not paid for. The exchanges which take place in the informal sector without the help of money are called barter exchanges. So, GDP calculated in the standard manner may not give us a clear indication of the productive activity and well-being of a country. Hence statement 3 is correct.
GDP inherently does not take into account negative externalities. Externalities refer to the benefits (or harms) a firm or an individual causes to another for which they are not paid (or penalised). Hence statement 4 is correct.

Option A is correct. The Inclusive Development Index (IDI) is released by the World Economic Forum (WEF), in the 2021 report, India ranked 62nd out of 74 emerging countries and was among the least inclusive countries in Group of 20 (G-20) countries.
The IDI is based on the idea that most people base their country’s growth not on GDP but by their own standard of living.
It gives a measure of inequality based on three parameters:
• Growth and development
• Inclusion
• Inter-generational equity and sustainability.
India also did not make it to the top 10 most inclusive emerging and developing economies, where its neighbours Nepal, China and Sri Lanka made a mark.
India performed its best in terms of “intergenerational equity and sustainability”, ranking 44th, for which credit can be attributed to its demographic dividend.

Statement 1 and 3 are correct. Statement 2 is incorrect.
PMJDY is a National Mission on Financial Inclusion that takes an integrated strategy to ensure that all households in the country have access to financial services.
The PMJDY envisions universal banking access, with each household having at least one basic banking account. Statement 1 is correct
Besides it also ensures financial literacy, insurance, access to credit, and a pension plan. In addition, each beneficiary will receive a RuPay Debit card with a built-in 1 lakh accident insurance cover. Statement 2 is incorrect
The plan asks for the transfer of all government money to beneficiaries’ accounts and the promotion of the Union Government’s Direct Benefits Transfer (DBT) scheme.
The Scheme also intends to use mobile transactions through telecom operators and their established centres as Cash Out Points for Financial Inclusion. Statement 3 is correct.
The “Pradhan Mantri Jan-Dhan Yojana (PMJDY)” aims to ensure that the excluded sections, such as weaker sections and low-income groups, have access to various financial services such as basic savings, loans, remittances, insurance, and pension.