 Hello everyone. So welcome to Shankaray's Academy series of discussions on various previous year questions. We have divided into various subjects. You've already seen on YouTube videos that have been uploaded on other subjects. So this is a continuation of that. So today we'll be discussing core economics, the subject of economics itself we are dividing into two. One, we are only based on the concepts that are associated with economics. There are eight areas into which we'll segregate core economics and we'll be discussing those. Subsequently, there will also be another video on the general side of economics, which is how the Indian economy has progressed over the years and questions that are based on that area that will be discussed separately. So today in our session we'll be dealing with questions from 2016 to 2022. So that's a period of seven years that we'll be discussing. So there are a total of 87 questions that we'll be discussing as well. So there is already a video in existence on YouTube which talks about various techniques in order to arrive at specific answers even if you don't quite know the entire area that is being questioned in. Today's focus would be slightly different. So I've taken almost all the questions during this period of years that we have mentioned over here. Almost all the questions are there. So there's, as I told you, a total of 87 questions. So the focus is on understanding the answer to all of those questions, specifically the concept oriented one, wherever we can arrive at an answer through elimination techniques, I'll mention those as well. So before we get into the first question itself, there is a bit of an analysis that we have done and we have presented it in the form of a pie chart. So we have looked at the various areas from which UTC is asking these questions and segregated them and the type of questions that is being asked as well. So we'll take a look at that first to begin with. So we have, as I told you, divided the area of core economics into eight headings. One is national income accounting. The second is growth and development. So these two are associated areas. So national income accounting is about GDP and all the related areas. It's about growth of the nation and subsequently followed by it is growth and development, which is that increase in the income levels of the people resulting in improvement in the quality of life of the people. So this is one segment or these are two segments followed by public finance as an area of discussion which is governments finances, budget analysis, budget and the area. So followed by this are three areas which can be grouped together, money, inflation and banking. The money which comes into existence, the concept of multiplication and all those things followed by what if there is an excess of money in the economy, what if there is a shortfall of it and its impact on the form of inflation followed by the banking sector and specifically the area of performing and non-performing assets and its impact on the economy. So these are one segment of areas which we are divided into three headings followed by external sector, which is India's trade and exchange rate related questions, investments and all those things will come into the picture. And finally, we have financial markets. Financial markets is about share markets and all those areas. Share markets, bonds, yields, all those things are the areas. Now something that is surprising us during this time period alone, specifically during this time period and let me make it very clear, we cannot make any conclusions out of this. It is just an observation that we are doing. So if you notice this, so in the white chart over here, the structuring is this way. So you have this two percentage is what is your area on national income accounting, national income accounting. This part is growth and development. So national income accounting, very few questions, actually a total of only three questions out of 87 are from this national income accounting area. More questions have come from growth and development. But we'll notice that from this area in general, the number of questions that have been asked post 2017-18 have actually gone down significantly. So public finance has always been an area where there are consistently questions, but even there the number of questions that are being asked from this area, we are seeing a drop in that. So money is an area where mostly one or maybe two questions a year may be asked, some year questions may not be asked as well, which is along expected lines. Inflation was an area where a lot of questions were not being asked because still about 2019, in India inflation was largely under control, especially since 2015 with the introduction of monetary policy committee. So inflation was not making much of a news. So questions from that area was also quite less off late because of events that are happening in the economy, we are seeing more questions from that area. The domination of questions starting from 2014 with the huge NPA crisis that came into the economy had been on banking. So during the years 2016-17, 2015-17, 2018-19, until 2019, every year multiple questions on banking 3, 4 and sometimes even 5 or 6 questions in the same year from the chapter of banking or area of banking was quite common. But post COVID, because the rest of the economy also is in some bit of trouble, the questions from banking has actually seen a decrease, slight decrease, but still it's an area of question, which means that this area, external sector is an area from where questions have been asked quite a lot in the past also, but more so in the present, especially in the context of India's trade varying, the exports changing, a pattern of exports changing, export and import partners changing, the various trade agreements that we are signing and the currency exchange rate variations that have been happening over the years, that is again an area where a lot of questions are coming from. And final area is what we call as the financial market, which is nothing but your bonds and yields and all those things. It is an area which conventionally UPSC stays away from, but we are noticing a trend over the last three, four years at least, that there are questions in this seven-year period, there have been five questions from that area with one particular year, I think last year there were a couple of questions from that area. So it is not suddenly not an area of great importance per se, as we always say financial markets is a very, very low importance area, it's not something that we should be spending a lot of time on. Whatever questions have come from are from very basic concepts of financial markets or if there is some current of escalator to it, that is what the area has been. But having told you all of these things, a disclaimer is definitely necessary over here. None of this indicates what is going to happen. You cannot base your preparation on what kind of questions UPSC or what area of questioning UPSC has asked from. What we are witnessing over here is just a reflection of UPSC's tendency to ask questions based on what is actually happening in their economy at any given point whichever area of the economy is in a crisis or some sort of an issue that is happening active in the economy, that is the area in which they have been focusing on. We cannot conclude that one area external sector is very important, banking is very important, national income account is not important, we cannot make any such conclusions out of this. But this has been the pattern that we are observing, that is how this is used to. So that is with respect to this particular question. So moving on, now I think before we move on. So one more category into which we classify these questions is into four different headings. One is knowledge based questions. Let me explain these categorizations first. Knowledge based question means if you read it from a textbook, you simply read a textbook, you can understand, you will be able to answer these questions based on explicit textbook learning. So textbook classroom, wherever you learn it from, that is enough. So that is the number of questions, 17% which is quite a small number. A greater number comes from application of the knowledge where you go into the exam hall, you look at the question paper and based on the particular options given there, you will have to choose between various options and choose the answer over there. So cumulatively they account for almost half of the questions. So where are the remaining half coming from? Both are in a way current affairs. 42% is explicitly current affairs. Whatever has happened over the period of that one particular year, questions from that is huge number, a dominant number. Across the years, this has been a trend that has been in existence. And then when we say trend based questions, so we are referring to questions like over the last five years. Instead of asking questions about one particular year's event over the last five years, over the last 10 years or since liberalization, these kind of questions are what we mean by trend based questions. Trend based questions are more common in general economics but they are found in the core aspects as well. So cumulatively half from textbook and application of textbook and the remaining half from reading newspaper, which again shows the significance of going beyond just simply textbook rather than something that I tell all my students in the class, in the first class that we have as well, that just reading a textbook and reading multiple textbooks is pointless. Just pick one textbook, read that thoroughly, just understand the concepts inside it and the rest of the questions are definitely going to be based on your application of that knowledge for which a lot of test series has to be taken, a lot of questions have to be solved and subsequently reading newspaper and interpreting things out of that. This is the area from where the questions are going to appear. All right. So this is a basic analysis to begin with. We'll move to the first question but before we do so, there is something that I should have done right at the beginning of the video. I don't think I did it either. So my name is Sharath. I'll be going through the rest of the topics. So I am a faculty at Shankaraya's Academy. I've been teaching here for the last five, six years now. So this is something that I should have done in the beginning of the video somehow because I'm not used to this process of video. I'm quite forgetful about that. Anyway, so we'll move on to the first area of discussion, which is national income accounting. Very few questions from this. Take a look at the first question. Which of the following activities constitute a real sector in the economy? So before we look at the answer itself, so we need to understand what is the requirement of the question. It is not a very common type of a question. It is not a common segregation that we do as well. But in economics, sectors can be divided into real sector and financial sector. So if you look at any GDP calculation, there are two sites to it. There are the goods and services that are being produced and there is the money transaction which happens as a result of tracing of the goods and services is the real sector and the tracing of the money transactions is the financial sector. So which of these are a part of the real sector is what is the question. So farmers harvesting crops, crop is coming as an output. So that is a real activity that is taking place. Textile mills converting raw cotton into fabrics. Fabrics are getting coming out of it. A real output is coming out of it. These are contributing towards the GDP of the nation as well. Whereas the third one, a commercial bank lending money to a trading company. There is no actual good that is being created out of it. It's only a lending activity that is happening. So no physical commodity is coming out of it or even a proper service is being generated. Although lending is a commercial activity, it is not considered as a real. It is a financial transaction. Similarly, a corporate body issuing rupee denominated bonds overseas is also a kind of a monetary activity. So these two are part of the financial sector. Three and four are a part of the financial sector. One and two are a part of the real sector. So the answer here is A, one and two only. So this is the logic behind it. If you do not know the difference between real and financial sector, it is very difficult to make any guesses out of this. You can logically say, okay, one and two is one type of activity, three and four are a different kind of activity. Because you don't have an option of three and four, you can assume that they might be referring to actual physical commodities. That is one logic you might be applying, but no guarantees with respect to that. If you don't know what is a real sector, it's very difficult to answer this kind of a question. So that was the first question. Second, with reference to the expenditure made by an organization or a company, which of the following statements is or are correct? So the statements are acquiring new technology is capital expenditure. So we all know from a general budget concept or whatever it is, whenever we use the term capital, capital refers to something which results in creation of assets. Assets could be tangible in nature. Assets could be intangible in nature. Acquiring new technology is capital expenditure is true because it's an intangible asset. If you look at the concept of gross capital formation, so you might be familiar with the concept of gross capital formation inside it, which inside, which we have gross fixed capital formation, then you have change in stock and inventories, which is not relevant here. So this fixed capital formation, conventionally, we think of this as building speciality and all those things, but this also includes intangibles such as new technology or intellectual property rights that are associated. They are also considered as fixed capital formation. So acquiring new technology is definitely a capital expenditure. All right. Now the next statement is debt financing is considered capital expenditure while equity financing is considered revenue expenditure. Now let me make something very clear over here. 2022 UPC's official key is not out. And as you might be aware, UPC sometimes removes questions based on queries that people have raised subsequent to examination. So there might be some questions which we find an answer to which ultimately UPC says, okay, this question is not relevant. So we are going to remove it. It is a possibility. Now the reason I'm talking about the possibility is because usually when we say debt financing or equity financing, financing means where do you get money from? So if you, the general understanding of the concept of financing, debt financing means borrowing money, equity financing means selling shares and getting money. Both of these are considered to be receipts conventionally. So that is our understanding. But that is not the reason why we are going to call the statement as wrong because be it debt or be it equity, both of these are considered as part of capital. I would call it as capital receipt, but in this context it is given as debt financing is considered as capital expenditure. Let us read that way. Let's say money is borrowed and borrowed money is used for expenditure purposes. So that is capital expenditure. While equity financing, that is also the same thing. Instead of taking it as loan, you're taking it by selling your shares, selling your shares and getting the money and using it for purposes of the company, which is also a capital expenditure. So whether it is debt, whether it is equity, both of these would be considered as capital, not revenue. So the second part of the statement is anywhere wrong, but there is a bit of a confusion or a debate about the usage of the word debt financing also. But the answer which we are going to take is one only. We'll have to wait and see but we won't know why a question has been removed, even if it has been removed. So we'll have to wait and see what happens. If not, the answer is still one only. So that is the answer to this particular question. Second question is done, moving to the last question in your national income accounting. Despite being a high-saving economy, capital formation may not result in significant increase in the output. So if we actually write this question by highlighting the key areas, let's say you don't know anything about this area, you will still be able to answer this question. So some basics, of course, you need to know. It's not that you don't know anything by reading you. I'm not, I don't mean that, but let's say you don't know the answer to this, you still can answer it. Despite being a high-saving economy, so savings is happening, quite a lot of savings happening, high-saving economy. And the saving is turning into investment. We all know investment is what is capital. Capital formation means investment. So saving is turning into capital. They're not even using the word investment, they're using the word capital. May not result in significant increase in output. So it is not resulting in significant increase in output. Look at the options, look at the most significant one. So there is a concept in economics called as incremental capital output ratio or simply capital output ratio, where we know there is an inverse relationship. If 100 rupees is required to produce 10 outputs, whereas in a different economy, 120 rupees is required to produce 10 output. Both are actually in money terms, but for the sake of understanding, I'm taking one as money terms and the other in unit terms, here the capital output ratio is 10, here the capital output ratio is 12. More money is required to produce the same output, which means it is less efficient. So what is happening here? High savings is happening, saving is turning into investment, but the investment is not resulting in a significant rise in output. So there is an investment of 100, the investment is increasing to 120, but the output remains as 10. Why is that happening? That particular country has a high capital output ratio. High capital output ratio is bad. High capital output ratio indicates less efficiency. So the answer here is D, that is the reason why it may not result in significant increase in output, because the country has high capital output ratio. So these are the questions from national income accounting. You'll notice that 2022, more recently post-COVID, there are two questions. 2018, there is one question. Since from 2016 to 2022, that is all that we have. Moving on, as I told you again, no guarantees. We still have to learn that as important as any other area. Moving on to growth and development, which is the next area, which is actually an expansion of this area itself. So let's go on with it. So these are very straightforward questions. There is nothing much to discuss over here. There is nothing much that we can guess. If you know it, you know it. You can answer it. If you don't know it, you can't answer it. The global competitiveness report is published by which of the organizations. The answer is World Economic Forum. There is no way you can guess this. If you know the answer, you can answer it. That's all. If you don't know, better to leave it and go, taking guesses is not going to be very helpful. So the answer here is C. That is the answer. Moving on to the first one. So this is a very interesting kind of question where application matters. In a given year in India, official poverty lines are higher in some states than in others because now this is the kind of question which is actually very tricky. There is only one answer, but I've asked this question in class multiple times and most of the times, almost every time, there are sets of people who answer, who give A as answer, B as answer, C as well as D as answer. All four seem like possible answers. It is quite possible because if you look at it, it's about poverty. The first statement says poverty. Some people may feel it is about price levels. Some people may say GDP or gross state product is what is about income. So lack of income is poverty. So that could be the reason. Some people may say quality of public distribution means that less quality items are available, so more poverty. Any four may appear like the answer, but there is only one correct answer here. Explicitly, there is only one answer. So what is the mistake that a lot of people do when tackling this question is focusing on the word poverty without focusing on the next word. Poverty line is what the question is about, not about poverty. In India, it doesn't say official poverty is high in some states. Official poverty lines are kept higher in some states and in some other states. Now we have to understand what is meant by poverty line. So poverty line is in terms of income. How much income is required by a person? So that is why we say above poverty line, below poverty line. How much is your income? Is your income above what is the income considered as poverty line? So above it or below it? So why do they set a particular income? Because we need income to buy goods and services. Income is an indication of capability to buy goods and services, purchasing power. Income gives purchasing power. So in a particular state, so this basket of goods and services which is required would be the same throughout the country. You cannot say if you are from one state, you can eat lesser, it's okay. If you are from another state, you have to eat more. That is not how poverty is defined. Poverty is defined in the same way. If you can buy these goods and services, then you are not poor. If you cannot buy even these goods and services, then you are poor. That is how it is defined. Anywhere in the country, that is how it is defined. So how much is the money required to buy these goods and services? That is poverty. This basic set of goods and services. In some states, the prices of these commodities are higher. In some other states, the prices of these commodities are lower because of the cost of production there, wage, interest, profit. It varies from one place to another. It doesn't even state the same inside a state. But at least broadly speaking, in one state, this will be different. In another state, it will be different. As a result, the amount of money required to buy the set of goods and services should be lower in one state where the cost of production is lower. It will be higher in another state where the prices of goods and services are higher. So what determines the poverty line, the price levels in a state? So price levels vary from state to state. That is the reason why poverty lines are different in different states. So this is a kind of application question where whatever your level of expertise in the subject, in the exam hall, you will have to sit and analyze this question. You have to look at each option and choose the best one out of these. So it is a kind of question which takes some time. So you have to be very careful in an examination. So you look at question number four and five. Four is a question where you should not be spending more than five to 10 seconds on answering this question. Because if you know it, you will mark the answer. If you don't know it, thinking is not going to give you the answer because there is no logic associated here. So you should save time on these kind of questions by either answering it quickly or leading it quickly. Knowing that, okay, I don't know this, I will move on. No point thinking. Whereas fifth question, poverty line question is a kind of question where inevitably for everyone, there is some thinking time that should go away. For a person who has very good understanding of economics, maybe 15, 20 or 30 seconds, because you cannot just look at D and say, okay, B is the answer. You have to look at other options also. What if there is a better answer there? I'm just seeing hypothetically speaking. So you have to look at, anyone will have to look at all four options. If you know economics well, you'll arrive it quicker. If you have uncertainties with your concept, it might take long. That is all the differences. So four is the type of question that will help you save time to deal with the questions of the nature of five. Number six, which of the following is not a subindex of World Bank's use of doing business index? You can apply many, many logics, but without knowing it, you can't answer. Similar to the fourth question, the answer here is A, maintenance of law and order. Other parts are, I think if I'm not wrong, 10 subindexes. I could be wrong with the number. I'm not very sure about it, but maintenance of law and order is one which is not a subindex. So that is the answer over here. No point in thinking. Just look at it. Answer, if you don't know, move on. Number seven, in the context of any country, which one of the following would be considered as part of it, social capital. Again, requires a little bit of thinking. Let's go one by one. The proportion of literates in the population. So literate means more educated people. That is definitely a part of capital in an economy, but an intangible capital. So that is possibly an answer. Let's look at it. Then B, the stock of its buildings, other infrastructure and machines. We know that it's not social capital. That is what is considered as physical capital. So B is not the answer. It is also capital, but not social capital. C, the size of population in the working age group. You can consider it to be in a way, but it is just size of population working age. They are not even, at least if they had given labour force participation out of the working age group, how many are actually presenting themselves for work that would have meant something. C doesn't actually mean much. It just is about the demographic capability of a country at most. So that probably you can consider, but not quite in terms of, at least if they had given skilled population, that would make sense. Which will make A and C very similar in nature, if that is what is done. And the last one is the level of mutual trust and harmony in the society. Now comes two concepts. There is physical capital, which is weak, which we already know. Then there is a concept called as human capital. Human capital formation. There's a past UPC question itself about human capital. If we might actually be having that question subsequently as well. Yes, there is a subsequent question we'll be discussing. So there is a concept called as human capital. Human capital is about the skills of people, the health, the education levels and all those things. Social capital means as a society, how are people interacting with each other and all those things, which means in this case, clearly only one answer is there. The level of mutual trust and harmony in the society, D is the answer. D is the answer to this. Again, a kind of question where we need to sit and think and we need to arrive at the answer. And in the exam hall, people even who know economics well might end up answering A as an answer. Some people do sometimes. And I'm just talking based on my interactions with students at that point of time. So A is potentially a confusing area for some people, but clearly D is the answer over here. Okay. Moving to eight question. Again, application. Increase in absolute and per capita real GNP do not connote a higher level of economic development if. So per capita GNP is increasing. Absolute GNP is also increasing, which means income levels of the entire country and of the people on an average is increasing. On an average is increasing, but there is always a problem with average. The problem with averages, it doesn't talk about income inequality or inequality in the distribution of income. It doesn't talk about what are the options? Industrial output fails to keep pace with agricultural output. Agricultural output fails to keep pace with industrial output. If one is the answer, the other also has to be the answer. So neither of this answer is over here because one sector alone growing can result in disparity, but why specifically industrial, why specifically agricultural, we can't comment. So A and B is not the answer. Poverty and unemployment increases. So overall income of the country is increasing. Average income is also increasing. In spite of that, if there is increase in poverty and unemployment, it means what? There is probably jobless growth happening, which means jobs are newer jobs are not getting created at the same level as income is increasing, which means money is getting accumulated to some segments while the rest are left out of it. And development is the measurement of income inequality, unemployment, employment opportunities, all of those things. So C is the answer over here. The fourth option is imports grow faster than exports. That doesn't mean anything. It is not a relevant measure of economic development. So C is the answer over here. 8-1. Moving to 9, consider the following statements. This is the question I was referring to with respect to human capital formation. Human capital formation as a concept is better explained in terms of a process which enables. So physical capital is different. Human capital is different. And we just saw a couple of basings ago that social capital is different. Now, what is human capital? It enables individuals of a country to accumulate more capital. So if you simply come across the word capital, it refers to physical capital. That's how it is understood. So individuals of a country to accumulate more capital is not what is human capital formation. Increasing the knowledge, skill levels, and capacities of the people of the country is definitely what we consider as human capital formation. Human is becoming a better human, a more skilled human, a more knowledgeable human. That is human capital formation. Accumulation of tangible wealth is physical capital. So once again, not what we are looking at, accumulation of intangible wealth, something which cannot be physically measured. My knowledge cannot be physically measured. Or my skills cannot be physically measured. It is just something that can be experienced. So two and four is what is the answer over here. C, two and four is the answer over here. Again, you look at how the concepts are building up. In 2018, they asked a question about human capital formation. And subsequently in 2019, they asked a question about social capital. It's a build up. One year there was something next year, they want to ask a question from the same area, but they want to differentiate. Slightly different concept with relation to the capital itself. I'm sure if you go back a little, you will find that there are questions based on actual physical capital itself in the past. Anyway, moving on to question 10. Again, nothing much to discuss here. Global gender gap index is released by World Economic Forum. So what we can take away from this is if UPC is going to ask questions about these indices, there is a very high chance that they are primarily going to focus on large organizations, very important organizations like World Bank, IMF, your World Economic Forum or some United Nations. You look at the options also. All the options are major organizations. So how to prepare for these things? At least focus on the reports of these major organizations. If not going into the look and corner and reading 200, 300 reports, at least be sure about the 50, 60 or 70 reports which are published by these organizations, the standard global very popular organizations that are. So moving on to the 11th question. Which of the following statements or statement is or are indicator indicators of used by IFPRI to compute global hunger index? Look at this, 2016. There is a factual error here. This global hunger index is not published by IFPRI anymore. Till 2016, the statement was true. So when it was asked, it was true. Now it is not true. It is not the International Food Policy Research Institute which is publishing global hunger index anymore. But that is irrelevant to our question here because when it was asked, it was right. All three are parts of it. So there is also child wasting, which is the fourth parameter which is there. So all three, once again, if you know, you can answer. If you don't know, you can still guess because hunger can result in stunting, hunger can result in mortality, hunger can result in undernourishment. But it is a little difficult to guess also because if they give something else, let's say something like body mass index, it also seems like an answer. But body mass index may not be a factor. In fact, undernourishment is measured in terms of that. I'm just giving you an example. So it may or may not be, it is better if you learn these things. Making guesses can be very tricky with respect to this. The answer to this one is 11c. 12. India's ranking in the ease of doing business index is sometimes seen in the news. Which of the following has declared that ranking? So look at this buildup. 2016, there is a question on who publishes ease of doing business index. The answer here is World Bank. Okay. So this is 2016. But if you look at what happened subsequent to this, so you'll notice that 2019, so that was 2016, 2017, 18, third year from that, the question itself is which of the following is not a sub index of World Bank's ease of doing business. They have given you who's publishing it. They are going deeper into it. This is again a trend that UPC follows. If they already ask a question, a basic question to begin with. Subsequently, if they still want to ask a question, let's say ease of doing business is repeatedly making news, why would they go and ask the same question that they asked previously? They can, they have asked, I'll show you example of that. But why do they have to do that, especially if it's not concept based? So they go one level deeper. What is the index? What is the sub index and so on? Okay. So that is what we are witnessing over here. 2019 is an update on the 2016 question, which is who publishes? So this is the who publishes question. Well, see, you know it, you can answer, you don't know it, you can't guess. Okay. Financial stability report, again, international monetary fund. If you know, you know, else nothing can be done about it. So 13B is the answer. So that ends our discussion on growth and development as well. So we'll move on to the third area, which is public finance. Okay. So there are, if I'm not wrong, another 13 questions from public finances in area. So some years there have been no questions as well, but most of the years there have been questions. I think there's only one year where there was no question or so public finance is standard area. We can expect some sort of question from public finance every year. Start with the first one. With reference to Indian economy, consider the following statements. So this is the most recent one, the most this earlier 2022, they asked a share of the households financial savings goes towards the government borrowing. Now, you may not factually know this. Okay. And I do not consider this to be a particularly trend based question. I consider this to be a, you could say concept based question. Okay. The reason why I say so is because we all know concepts like government borrowing. Where does government borrow from? Government issues, government securities to borrow money. But that is not the only borrowings that the government has. The contributions that households do in terms of provident fund, pension fund contribution. So these that we do, we are not actually giving this money to the government. We are temporarily giving in their hand with the promise that they'll give it back later. What is that? That is government borrowing. There is a difference here in the sense governments conventional borrowing goes into the consolidated fund, whereas the government taking money in the form of provident fund and all those goes into the public account of India. In spite of that, in the larger picture of government debt, there is a heading called as other internal liabilities and all of this will go into government's liabilities. So these are also part of borrowings of the government. Okay. So knowingly or unknowingly, the money that we give ends up becoming the government. But it need not be just this alone. Your small savings that we do, post office savings, small savings and all national small savings fund, those are also loans given to the government by the households. All right. So a share of the household financial savings goes towards government borrowings is an irrefutable statement in the sense that is generically correct. Okay. It's very hard to argue that no money goes towards government borrowings. And more so, the question is asked in 2022, in 2021 period, retail borrowing has also been launched by the government, which means what? Now, households can directly register on the ecobare portal and lend money to the government, which means again, household financial savings is going towards government borrowings. So that is in a very generic sense, we can understand that to be a true statement. So the first statement here is true. Then dated securities issued at market related rates in auctions form a large component of internal debt. So there are a couple of things that we need to understand here. Maybe may not be common knowledge per se, but it is something that you should know. So whenever the government releases the budget, what do we do with respect to the budget statement? How do we learn a budget statement is a common question that I get. The answer is take a look at the budget document, analyze the pattern inside it. So you look at mainly so expenditures, there is a pie chart which is given in the budget document itself, which says how much of the money goes towards what? How what percentage of the money is received in the form of loan? So what percentage of the overall receipts in the form of borrowing? That is an analysis that you need to do. What percentage of the expenditure is going towards interest payments? That is another analysis because we know there is a concept called as primary deficit. So what is important is interest payments. What percentage of the expenditure revenue expenditure is going towards grants to build assets? So that's another analysis that we have to do. Similarly, when we take a look at governments borrowing itself, take a look deeper inside. What is the source of borrowing? What is the major source of borrowing? In simple terms, is the government's short term obligation high or long term obligation high? The government would be in trouble if its short term obligation is high because it has to repay in a very short duration of time. Whereas the government is much safer if its long term obligation is comparatively higher because it needs to repay but only over a long period of time. And Indian economy or Indian government finance is generally considered to be in a reasonably good state. We are not in a panic situation. Let's say like a country like Sri Lanka or Pakistan, we are not in a position where we are unable to repay loans now. We have obligations but a lot of those obligations are long term in nature. Dated security is a conceptual term which we should know. Dated security refers to long term securities, one year or longer. Typically, five years or longer is what is government issues. So, dated securities do form a large component of internal debt. So, that is one part. The second part is market-related rates issued at market-related rates. Market-related rates in auction means what? The government doesn't fix the interest rate and say this is the interest rate that it is going to be sold. That was the case in a pre-liberalized setup. In a market economy, in a liberalized setup, the rates and prices should be determined based on demand and supply. And how do you understand demand and supply? For securities, RBI conducts auctions and in the auctions, the auction actually happens on the interest rate at risk, the lending can happen. Whoever is asking for lesser interest, government would take loan from them. So, that is why we call this market-related rates issued at market-related rates in auction. It does form a large component of internal debt for the government of India, no doubt about it. So, the answer here is both the statements are correct. See, both 1 and 2. Again, see, I am able to give you the answer because I know, but even if you don't know specific explicit true or false about this, these are questions which I believe if you have been preparing for a year at least, you should be in a position to make some logical guess about it and answer it. It's not beyond the comprehension of someone who has been preparing. Just believe in your capability to understand these things, but do a little bit of analysis. As I told you, when the budget document is out, actually do an analysis, but even if you haven't done the analysis, it is something that I believe you will be able to sit in an exam hall and analyze and arrive at an answer. If you have a calm mind, you will be able to think along these lines. If you are in a moment of panic, you may not be able to make sense at all. You may look at this and say, I don't know. You leave it and go or blindly guess. It is something that can be answered. What I feel. Moving to the next question, 15. Which one of the following effects of creation of black money in India has been the main cause of worry to the government of India? Question is simple. If there is high black money, how is it going to affect the government? So, first, we need to understand what is black money? Black money is not a counterfeit currency. Black money is not money which the RBI did not create or the government did not authenticate. Black money is actual legal money which is there. It is legal tender. It is fiat money. All of it is there. When do we call it as black money when the money is hidden from the government? It is legal money, but it is hidden from the government. And what do you mean by hiding from the government? Why are you trying to hide when someone is trying to catch you? What is the government's attempt at catching? The government is coming and saying pay tax on the income that you want, pay tax. So, you don't want to pay tax if you don't want to pay tax, you hide from the government. So, that is when legally existing money becomes black money. So, black money means money on which tax is supposed to be paid, but tax is not being paid. Tax evasion results in black money. So, what do people do with black money or what happens? Which is the downside, which is what worries the government. So, diversion of resources to purchase of real estate, investment in luxury housing as one investment in unproductive activities and purchase of precious stones, jewelry, gold, etc., that's another large donation to political parties and growth of regionalism. So, these three are very similar in nature. Money is being used for some purpose. At least in A and B, it is used for buying goods and services in the economy. In the third one, it is just transfer. There is a greater invisibility that comes along with it or non-transparency that comes along with it. But in many cases or in many senses, A, B and C are very similar kind of options. If you choose one, there will obviously be a question. Why not? If you choose A, there is some more loss. Why not B? And if you choose B, why not C? And if you choose C, why not A? It's a question that would come in. All of those are similar in nature. Look at the last option, which is actually the correct answer over here. Loss of revenue to the state extrecer due to tax evasion, as simple as that. So, what is the government's worry? Government is missing out on the money. That's all. What the government can do with it is up to the government. That is not even given in the option. What does the government's biggest money? We could have collected so much money with which we could have done so much. We could have borrowed less. We could have done so much more of infrastructure work. We could have done so much more of welfare work. We are not able to do that because we are losing the revenue that we should be getting. So, that is what is the major worry for the government. If you ask me, this is a question which everyone should get right. There is no way that you should make a mistake in this kind of a question. If you know what is black money, if you do not get confused between the concept of black money and counterfeit currency, these are very different. Okay. Okay. Anyway, so that is 15. Answer is done. 16. Along with the budget, the finance minister also places other documents for the parliament, which include the macroeconomic framework statement. The aforesaid document is presented because this is mandated by there is no analysis which we can do about this. You can do a little bit of thinking and say, okay, so macroeconomic framework, it's about stability, whatever mandates, stability is what gives it. If you are able to think along these lines, it means that you already know the answer to this. Okay. There is an act in the parliament passed by the parliament called as FRBM act. FRBM act mandates that along with the budget to keep the government more accountable or responsible with respect to its money management, three documents have to be submitted along with the budget and one document has to be submitted sometime after the budget. So the three documents include this macroeconomic framework statement. The other documents are fiscal policy strategy statement and the medium-term fiscal policy statement. And subsequently after the budget is presented, there is an expenditure statement also that they have to keep medium-term expenditure framework statement. Okay. So the answer here is FRBM. So to my understanding, if you know it, you can answer. If you are able to guess, it means that you already know the answer. Right. So there is other ways you can't answer. If you without knowing it, it's hard to guess. Okay. So 16, the answer is D. 17. In India, which of the following can be considered as public investment in agriculture? This is actually a slightly higher level of application question. We need to understand the question. We need to rephrase the question and understand it. We have to look at this first in this way. In India, which of the following can be considered as public. So by public, we mean here government. Okay. And investment means capital expenditure. This is the interpretation that we have to make. In India, which of the following can be considered as government's capital expenditure in agriculture? If you look at, if the question is asked this way, there is no doubt it is quite easy to answer the question. Okay. But the challenge lies in interpreting the words public investment. Public investment means government's capital expenditure, not government's expenditure. That is not public investment. Investment is capital expenditure. So government's capital expenditure in agriculture. Fixing MSP for agricultural products, fixing MSP, providing MSP revenue expenditure. So not part of the answer. If you can eliminate that, you have already arrived with the answer. There's only one option which does not have one end. Second, computerization of primary agricultural product societies, computerization, more machines are being bought. So there is an improvement in technology. So two is definitely part of the answer. Social capital development. So social capital, we are already familiar with the terminologies, the money spent on developing those intangibles is still, I told you there, capital, it is a part of, so intangible capital is also a part of investments of the government or whoever does it. So three is part of the answer. Free electricity supplied to the farmers is a subsidy, revenue expenditure. Waiver of agricultural loans is going out of the government's revenue. So five is also part of revenue expenditure. Setting up of cold storage facilities by the government is infrastructure building. So two, three and six, you might have a doubt about three. You don't know whether three is a part or not. So you remove one, you're left with only one answer. You remove five, you're left with only one answer. You remove four, you're left with maybe two answers, but you've already removed one and five. So whether you know whether three is part of the answer or not doesn't matter. You know two's answer, you know six's answer. Six is definitely part of the answer because it's infrastructure. So if you know that six is part of the answer, A and B are eliminated. Then it's only a question of whether all of them are part of the answer or only some of them are a part of the answer. So this is the logic that you have to apply. Again, if you interpret the question correctly as government's capital expenditure, there is no question of getting this question wrong. You will get it right. The answer here is C, two, three and six. So there are always some keywords which you need to focus on. Sitting now relaxed in the atmosphere that we are in, it might be easy to catch on these keywords. Maybe even before I mentioned the keyword, you would have thought of it, but in the pressure of the examination, sitting there, would you be able to think of this? So the only way you can get better at it is by taking more tests in the exact environment, in a similar environment to what the actual exam is being conducted. So that is the only way to get better at it. Anyway, moving on to question number 18. With reference to India's decision to levy an equalization tax of six percentage on online advertisement services offered by non-residential entities, which of the following statements, these are correct. So there is no guessing that we have to associate here. It is purely based on current affairs of that particular year. It was there. It was a lot in the news around that period of 2018. So the answer, both the statements here introduce a spot of income tax actors wrong that they can claim a tax credit in the home country if they could, it would not have become a major issue. It was like double taxation for them. They're also, they have to pay here. Also they have to pay. So both the statements here are wrong. So the answer is, which is correct, neither one nor two is correct. These are questions which you can't analyze and arrive at the answer, especially the first statement over here. The second, at least you can do some guessing with respect to second statement, you can say, okay, non-residential entities that offer advertisements in India can claim a tax credit in their home country. Then you have to think, okay, if they can claim a tax credit, which means that they are only paying tax in India, which means either they are paying there or they are paying here. What is the problem? What problem would they have? Why would it make some major news out of it? Why is it making the news? Because there is some controversy associated. Someone is getting affected. Who's getting affected that they cannot claim a benefit is affecting them. So when you say they can claim, you see, all these are in hindsight, you can do the analysis. But in the exam hall, I'm just telling this is at most what you can do, maximum. You can't go beyond this. Whereas in the first one, you can't even do that. It's a very factual statement. If you know it, you know it. Else, no. So that's the kind of question that this is. If you don't know this, unless you are desperate to answer more questions, better to leave it and go these kind of questions. But there is a limit to how many questions that you can leave as well. Moving on, question number 19. Consider the following statements about FRBM. So the review committee has recommended a debt to GDP ratio of 60% for general government by 23, comprising 40% and 24 state governments. This was 2018 early period or early period was when I think, in case in committee had given the recommendations. It was just current affairs at that point of time. It was all over the newspaper. So very, very standard expected kind of question. The first statement is definitely correct. It is true even today in the existing form of FRBM also, the same similar targets are given. Okay. I think instead of 23, it is given as 24, 25. That is the only change that could be there when the government actually implemented it rather than looking at the recommendations. This question is about recommendations in the review committee. Second statement, central government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the state governments. Now compare the first and second questions. If you know the first question to be correct, then you know that second question has to be wrong because the first question says target itself is 40% for center and 20% for state. Whereas if the existing number is 21% for center, they have already made the target, at least through internal liabilities. Whereas 49% for state means they have to bring it down to 20. How unreasonable would that look like? So if you know the first to be correct, you know one and two cannot simultaneously be a part of the answer. Okay. Then the third one, as per the constitution of India, it is mandatory for a state to take the central government's consent for raising any loan if the former owes any outstanding liabilities to the latter. We know that the constitution itself makes the states financially dependent on the center for almost everything they are dependent on the center. Logically, it makes sense to assume that the third statement is correct. So three is definitely part of the answer. So the only question is one and two. Again, a choice between those is what you have to do. So A is rolled out as an answer. B, C or D can be, but I told you one and two cannot simultaneously be a part of the answer, which leaves us with D being ruled out. So logically itself, you can eliminate D. You don't know which of one and two is correct. You can eliminate saying that one and two simultaneously cannot be correct. So you eliminate A, you eliminate D. DNC is what you have to choose between. In this case, the answer is C, one and three only. Some bit of knowledge, but the rest of it you can guess. See, this is how with respect to UPSC, when we talk about preparation, there is never a point where we say, okay, I finished preparation and we are done moving on with respect to examination prepared for the examination. That doesn't happen. Usually for most people, it doesn't happen. Some people maybe. Okay. So what you say, let's say you're completely prepared, even then you go into the example, there are only going to be 30 or some people 40 questions, which you look at it and say, okay, I definitely know the answer. For the rest of the questions, one statement you would know. The remaining statements, you'll have to guess. In this case, most people would know one to be correct. Okay. So based on if one is correct, you have never heard of two, let's say, then you have to say, if one is correct, two cannot be correct. So partial knowledge is enough to answer a lot of these questions and that is what we are aiming at as well. If you know a little bit, you can apply the knowledge and eliminate options using that little bit of knowledge that we have. Okay. So moving on to 20, if the commodity, if a commodity is provided free to the public by the government, then so this is actually a bit of concept, microeconomic concept, you could say, normally we won't study about opportunity cost and all those things. But what is opportunity cost? In case you are not familiar with it, I'll explain it to you. Let us say I have some money with me, I have 100 rupees with me. So I have multiple things which I could do with 100 rupees. So let's say I have two options in front of me. I could either go and buy this pen or I could go and buy a notebook. Okay. I choose to buy this pen, which means what? I've lost the opportunity to buy that notebook. So what is my opportunity cost of buying this pen? Because I bought this pen, I'm missing out on the notebook which I could have bought as well. Okay. So the next best option is what we call as opportunity cost. What am I losing by taking this pen? So the notebook is the opportunity cost of buying this pen. So what is the loss? Okay. So there is a loss here because a commodity is provided free to the public by the government. The government is buying the commodities or the government is spending money on it. Okay. The government is spending money on it. If they are providing it for free, which means they would have got the money back. They're giving it for, so sorry, they're providing it for free, which means they are not getting the money back. If they had sold it, they would have got the money. But because they are choosing to give it for free, they are missing out on this money, which they could have used for other purposes. So there is an opportunity cost. The question is not, what is the opportunity cost? That we can never answer. The question is, who's bearing the opportunity cost? You can never say opportunity cost is zero. There is always an opportunity cost. Opportunity cost is not ignored. It is not an actual cost for us to ignore it. It is a concept. So there is no question of ignorance coming in. So A and B are ruled out. C and D are the only possible options. Opportunity cost is transferred from the consumer of the product, which is the person who's using it, provided free to the public. They are the consumer. So the tax paying public, whoever is actually paying for it, their money is being used to provide this for free. Second, the opportunity cost is transferred from the consumer of the product to the government. So this is quite a confusing one for many people. So you could justify your answer. The answer that UPSC feels or has given is C, which is also a logical answer. But you could also argue that D is the answer because the government is the one who could have done something else with it. The government is missing out on the opportunity to do something. So they are the ones who are facing the or who's feeling the opportunity cost. If the consumer had paid for it, they are the ones paying the opportunity cost because they could have, with the money that they paid for it, they could have done something else. The government, you can argue by saying that the government could have done something else with this money, which they are missing out on. But ultimately, in a country like India and most countries of the world, whatever the expenditure that the government does, most of the money is borne, ultimately borne by the public. Even if the government borrows money, ultimately who's going to pay that back? Public's money. Taxation is going to be the source of all of government's expenditure. Even if government for now borrows money, let's say government sells a PSU tax, the question, where did they get the money to build the PSU from? Public's money ultimately. So it is the common public who are paying the taxes who are bearing the burden of operability costs, which is why we say if the government borrows a lot of money, it creates intergenerational inequality because today the government is spending for the welfare of the people who are living today. But who's going to bear the burden next generation because they are going to continue paying taxes for the benefits which this generation are receiving right now. So it's ultimately the tax paying public who are bearing the opportunity cost of giving something for free to other parts of the public. So C is the answer. But even if you think D is the answer, there is a logic to it, but C is the more appropriate answer and that is what UPC thinks as well. So 20, the answer is C. 21, consider the following statements. The Reserve Bank of India manages and services government of India securities, but not any state government securities. So if you know basic concepts of Reserve Bank of India, you would know that RV is the banker to central and state governments, which means if they're doing a service for the center, they'd be doing a similar service for the state also. Some exceptions are there. Some services are not available for the state governments. Look at the second statement. Treasury bills are issued by the government of India and there are no treasury bills issued by the state government. The RB website in itself in its FAQ on securities says that treasury bills are only issued by the government of India, whereas dated government securities, long-term securities are issued both by the central government as well as the state government. If the state government issues them, it will be called as state development loans, SDL. So second statement is correct. Treasury bills are offered at a discount from the par value. Par value means what? Let's say the government wants to borrow rupees 1000. This is the face value or this is what we are going to call as the par value, discount from the par value. So this is the face value. So in the case of dated government securities, how does it work? Government says I borrow I'll pay a 10% interest on top of it. So you will get 1100 at the end of let's say one year. This is how dated G6 works, but treasury bills, short-term securities don't work like this because of one reason. This is 10% per annum. When the duration is greater than an annum, it makes sense or one year or more, it makes sense to give it per annum. But when the duration of borrowing is less than 365 days, less than one year, the per annum concept becomes more complicated to apply. They can still apply it by dividing it by the number of days and all those things. They can do it. But to simplify the process, they say when they borrow money and the treasury bills and cash management bills, both of which are short-term in nature, they say at the end of whatever is the duration, let's say there is a 182-day TV. At the end of 182 days, I will pay you back 1000 rupees. So what you are going to get at the end is what is given as the par value or the face value over here. And they say through an auction, they will decide, okay, I want 950 rupees for this. So it is issued at 950, which is a discount to this 1000 rupees, which is what is mentioned over here. Treasury bills are offered at a discount from the par value. So this concept is technically called as issued at discount, redeemed at par. This is the issue value. This is the redemption value. Redemption is equal to the face value. Issue is at a discount to the face value. So third statement is correct. 2 and 3 are correct. 1 is wrong. So C is the answer. 1 is wrong because RBA manages the services and services the G6 of state government securities also. Okay. Moving on, what is or are the most likely advantages of implementing goods and services tax? So it's a hypothetical question, 2017. So GST was not yet implemented because July 1, 2017 is when it was implemented, but it's almost certain that it would be implemented because we wanted to implement it on April 1 itself. There was a slight delay. That's why it was in July. Okay. So this was a question at that moment. The GST had not happened yet. What is the benefit that we are expecting of profit? You can guess answer over here. It replaced multiple taxes collected by multiple authorities and will thus create a single market in India, which is what is the intention of GST itself. So the first statement is correct. The moment you know first statement is correct, you rule out this option. Okay. Second, it will drastically reduce the current account deficit of India will enable it to increase its foreign exchange reserves. It could play a role in reducing current account deficit. How so? Because with better taxation, commodities can be produced at lower prices because cascading effect of taxation can be overcome. So we might become more competitive export wise and we might export more. As a result, we might earn more money. It might help in foreign exchange reserves, but will drastically is an absolute statement which cannot be considered as correct. So you rule out any option with the two inside it. So you're only left with one and one and three. Okay. So the only question is three is correct or not. It will enormously increase the growth and size of economy of India may be true in the long run and will enable to overtake China may be true in the long run, in the near future. In the near future, just because if you could bring GST and do this, then you do whatever is necessary to bring in GST. You would have done it long time back. So again, a very, very absolute extreme kind of a statement three cannot be correct. So the answer is a one only. So again, this is a question which without knowing in depth of it, you would be able to answer if you apply a little bit of common understanding of any measure that is taken, any measure cannot have such immediate and drastic impacts, highly unlikely, at least in 2017 immediate means by 2018, 19 or 20, highly unlikely. So 22, A is the answer over here, 23. Consider the following statements, tax revenue as a percentage of GDP of India has steadily increased in the last decade. So tax revenue as a percentage of GDP is what we refer to as tax buoyancy or tax to GDP ratio. Then fiscal deficit as a percentage of GDP of India has steadily increased in the last decade. Remember, this question is asked in 2017, not at present. And from 2012, 11, 12 to 2018, India was on a path of fiscal consolidation. India was doing very well with respect to manage its fiscal deficit, which means fiscal deficit as a percentage of GDP. The government had actually brought it down from 6% in 2009, 10, 8, 9 or 9, 10. They had brought it down to close to 3.4 percentage by 2019. So we were consistently on a path of fiscal consolidation by reducing the fiscal deficit as a percentage of GDP. At that time, it was common knowledge. So this is a very easy statement to guess that this is wrong. We had actually steadily decreased it as a percentage of GDP itself. So 2 is wrong. So you rule out B and C. The only business is the first one right or wrong. Tax revenue as a percentage of GDP has steadily increased. Now, steady increase means what? It increases like this. So what is unsteady increase? It increased, it decreased, it increased, it decreased, it increased. So compare this period with this period, there is an increase. But is it a steady increase? No, it's an unsteady increase. Some years it is increasing, some years it is decreasing. If the question had been tax revenue of India has steadily increased in the last decade, it's more likely to be true because you're only talking about tax revenue, the absolute amount with every passing year as the GDP increases, more and more tax would be collected. But are both increasing by the same proportion and with every year, for tax to GDP ratio to increase, with every year with increase in GDP, tax should increase by more than proportion, more than proportion, more than proportion, which is very, very difficult to achieve unless there is a drastic improvement in the taxation system. But that too, it's not a gradual process. So last decade, 2007 to 2017, to imagine that tax revenue has increased, especially 2007 to 2017 is also a period, apply a little bit of knowledge over here. The global financial crisis happened. During that period, the government would be giving more discounts to the people in terms of tax discounts in order to boost the economy. So the likelihood of tax revenue as a percentage of GDP increasing, very, very difficult for it to be true. So the statement one is also wrong the answer here is neither one nor two. But to be able to answer all these things, you should be able, you should have a basic understanding of what are the events that are transpired in the economy. Otherwise, you will find it very hard to find the exact answer with respect to these or at least to make guesses. Second one you can guess, first one also you apply a little bit, you can maybe it becomes a bit of a tricky thing for you. So that is 23, answer is D, 24. This is something that everyone should be is expected to answer. There has been a persistent deficit budget year after year, which action or actions of the following can be taken by the government to reduce the fiscal deficit. So there is a deficit budget, okay, year after year. So there is a deficit government doesn't have enough money to spend. It is borrowing and that is how it is spending, which action or actions of the following can be taken to reduce the deficit. So we want to reduce the deficit. So there are two ways of reducing the deficit, either reduce the expenditure or increase the source of receipts. Reducing revenue expenditure makes sense. It makes sense. So one looks like an answer, one doesn't is not a part, you can remove B. Introducing new welfare schemes. Welfare schemes are revenue expenditure, we know that. Introducing new welfare schemes does not make any sense because already we are in a deficit. We want to reduce the deficit. How we want to increase the expenditure, we have to find a way to reduce expenditure, right? So that is definitely not part of the answer. So two has to be removed, which means D is also removed. So one is there, three is there, we don't have to worry about four because none of the answer has four now. So four is automatically removed. Reducing import duty is removed. Okay, but reducing import duty means what the government is reducing its revenue collection. The opposite of this is what is happening. So the receipts is going down. So it doesn't make sense. Rationalizing subsidies. So we are not saying that subsidies should not be given because practically subsidies would still be required, but do not give subsidies to those who do not deserve it. So rationalizing subsidy means that you cut down on unnecessary subsidies and give it to only those who deserve. So one and three are both correct over here. 24 C is the answer. So these are again the type of questions that I keep referring to as whatever your level of expertise in the subject, you will have to sit and at least think for it for a moment. If you have good expertise, you will be able to answer it in let's say 10 to 15 seconds or maybe 30 seconds. If you are more confused, you might take a minute to answer it. That is the difference. Okay, so 24, the answer is C. 25. Which of the following is or are included in the capital budget of the government of India? So capital budget means capital expenditure, as well as capital receipts will be a part of it. Expenditure on acquisition of assets, capital loans received. We know that capital transactions tend to be two way in nature and there is a golden rule of borrowing. Borrowing should be for capital expenditure purposes. So loans received is a part of capital receipt. Loans and advances granted is a part of don't be deceived by the word granted. It is still a loan. Granted here means given. So it is not to be misled because you will say grants are a part of revenue expenditure. It is not money which is granted in general. It is loan which is granted. It means loans are given. So the word granted can be misleading for some, but it is ultimately loans, loans given are capital expenditure. So first and third are capital expenditure. Second is capital receipt. Both all three of them are a part of capital budget. So the answer is D, 1, 2 and 3. So moving on to the last question in public finance. The term base erosion and profit shifting is sometimes seen in the news in the context of if you know, you know and most of you would already be familiar, but in 2016 it was a lot in the news. So there was a lot of tax evasion avoidance happening. The base here refers to tax base. The base here refers to tax base. So tax base erosion, profit is shifted to another country. Answer is curbing of tax evasion by multinational companies. B is the answer. B is the answer here. But if you are not familiar with the terminology, you can't guess. It's very difficult to guess. So it's a knowledge base question or a current affairs base question is what do you have to look at it as. So that ends our discussion on public finance.