Basic Quiz – 21 September 2026 | Economy

Answer: (c)

Explanation:
Syndicated lending is an internationally practised method of financing in which a group of banks or financial institutions jointly provides a loan to a single borrower.

• It is generally used when the financing requirement is too large for one lender to comfortably provide.
• The borrower may be a company, large infrastructure project or even a sovereign government.
• Since several lenders participate, the credit risk is distributed among them.
• The participating lenders together constitute a syndicate.
• The financing may take the form of a fixed loan, credit line, or a combination of both.

Hence, option (c) is correct.

Answer: (b)

Explanation:
Reverse flipping refers to the process whereby an Indian-origin company or start-up that had earlier shifted its legal domicile overseas subsequently moves its domicile back to India.

• Indian start-ups have historically shifted their holding-company structures to jurisdictions such as the US or Singapore for reasons including access to investors, regulatory considerations and global expansion.
• When such companies relocate their parent entity or domicile back to India, the process is called reverse flipping.
• It has gained importance as India’s domestic capital markets and start-up ecosystem have expanded.
• Returning to India can also facilitate an eventual listing on Indian stock exchanges, though listing itself is not essential to the basic definition.

Therefore, among the given choices, option (b) is the best answer.

Answer: (a)

Explanation:

Statement 1 is incorrect: The Export Preparedness Index (EPI) has been released by NITI Aayog, rather than the Ministry of Commerce and Industry. It assesses the readiness and performance of different regions in developing their export potential.

Statement 2 is incorrect: The index covers both States and Union Territories, not merely States.

Statement 3 is correct: The index provides analysis of India’s export performance, including district-level merchandise export trends and sector-specific performance.

The EPI broadly assesses export preparedness through dimensions such as:

• Policy
• Business Ecosystem
• Export Ecosystem
• Export Performance

It uses multiple indicators to identify strengths, weaknesses and areas requiring policy intervention.

Thus, only one statement is correct. Hence, option (a).

Answer: (b)

Explanation:
Pent-up demand refers to a rapid increase in demand for goods and services after a period during which consumers postponed or reduced their spending.

For example, during a recession, pandemic or period of economic uncertainty, households may postpone purchasing cars, appliances or other discretionary goods. This creates a backlog of potential purchases.

When economic conditions improve and consumer confidence returns, this accumulated demand may suddenly enter the market.

Pent-up demand is particularly visible in big-ticket and durable goods, because their purchase can often be postponed.

It can therefore contribute to a rapid recovery in consumption and economic activity after a period of subdued spending.

Hence, option (b) is correct.

Answer: (a)

Explanation:

Statement 1 is incorrect: The NFSA provides coverage for up to 75% of the rural population and up to 50% of the urban population, not 75% of India’s entire population. Overall, this was designed to cover roughly two-thirds of the population.

Statement 2 is correct: The Act contains an important women-empowerment provision. The eldest woman aged 18 years or above in an eligible household is treated as the head of the household for issuing the ration card.

Statement 3 is incorrect: Identification of eligible households is primarily the responsibility of the State Governments/UT administrations, within the coverage determined under the Act. It is not simply carried out by the Central Government.

Statement 4 is incorrect: The Central Government is responsible for allocation of foodgrains to States/UTs and transportation up to designated depots. States/UTs are responsible for further distribution through the Targeted Public Distribution System.

Therefore, only Statement 2 is correct. Hence, option (a).