UPSC 2023 Indian Economy Questions with Answers

Explanation

Capital markets are financial markets where long-term debt or equity-backed securities are bought and sold. They facilitate the raising of capital for businesses, governments, and other entities. Capital markets include:

Government Bond Market: Government bonds are long-term debt instruments issued by the government to finance its expenditures. They are part of the capital market because they have maturities typically longer than one year. Stock Market: The stock market is a quintessential part of the capital market, as it deals with the buying and selling of equity shares, which represent ownership in companies. Markets Not Included in Capital Markets:

Call money market is part of the money market, not the capital market. It deals with short-term funds (typically with maturities of 1 day to 14 days) used for interbank lending and borrowing. It is used to meet short-term liquidity requirements. Treasury bills (T-bills) are short-term debt instruments issued by the government with maturities of less than one year (usually 91 days, 182 days, or 364 days) which are part of the money market.

Explanation

In finance, beta is a numerical metric that gauges a stock’s volatility in relation to overall market fluctuations. It represents systematic risk, which stems from broader market movements, rather than company-specific factors. A benchmark index like the S&P 500 is assigned a beta value of 1.0 which serves as a reference point for evaluating individual stocks:

Beta > 1.0: The stock experiences greater volatility than the market. For instance, a beta of 1.3 implies that the stock is 30% more volatile than the market. Beta = 1.0: The stock moves in sync with the market. Beta < 1.0: The stock is less volatile compared to the market. Investors use beta to determine how a stock contributes to the overall risk of a diversified portfolio. A higher beta indicates greater risk but also the potential for higher returns, while a lower beta signifies reduced risk and lower expected returns. This concept plays a key role in the Capital Asset Pricing Model (CAPM) which estimates an asset’s expected return based on its beta and the anticipated market returns.

Explanation

Statement-I is correct: India’s public health system has historically been more focused on curative care (treating diseases after they occur) rather than preventive care (stopping diseases before they occur), promotive care (improving overall health and well-being), and rehabilitative care (helping patients recover after illness or injury). Statement-II is correct: India follows a decentralized approach to health care delivery. The responsibility for organizing and delivering health services lies primarily with the state governments. The central government plays a supportive role by providing policy guidance, funding, and technical assistance. The Constitution of India places health care under the State List (List II) which means states have the primary responsibility for health services. The central government’s role is largely limited to national health programs, policy formulation, and funding through schemes like the National Health Mission (NHM). Statement-II is not the correct explanation for Statement-I: The decentralized nature of health care delivery (Statement-II) does not inherently explain why the system focuses more on curative care (Statement-I). The focus on curative care is more related to historical priorities, resource allocation, and systemic challenges rather than the decentralized structure.