UPSC General Studies Sample Paper General Studies Sample Paper-4

  • question_answer
    Which of the following can potentially lead to an increase in employment levels in India?
    1. Increasing the Cash Reserve Ratio (CRR) and interest rates.
    2. Relaxing stringent labour laws.
    3. Providing incentives to the Micro, Small and Medium Enterprises (MSMEs).
    4. Relaxing FBI caps in brownfield projects in the manufacturing and services sector.
    Select the correct answer using the codes given below.

    A)  2 and 3           

    B)  1 and 2            

    C)  2, 3 and 4                    

    D) (d) 1, 3 and 4

    Correct Answer: C

    Solution :

    [c] Increasing the Cash Reserve Ratio (CRR) and interest rates squeezes the money out of market and might result in decrease in investments and employment levels. Relaxing stringent labour laws, providing incentives to MSME and relaxing FD' caps in manufacturing and service sector would bring increase in employment opportunities.

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