UPSC Disaster Management – Chapter 4: Financing Disaster Management (20 MCQs)

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UPSC Disaster Management – Chapter 4: Financing Disaster Management (20 MCQs) – 20 questions, subject: Disaster Management. Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.

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1.  

The National Disaster Response Fund is constituted under which section of the Disaster Management Act, 2005?

Correct Answer: B [Section 46]

Explanation:

Section 46 provides for the National Disaster Response Fund; Section 44 is the force and Section 47 the mitigation fund.

2.  

The Calamity Relief Fund was first recommended by the:

Correct Answer: A [Ninth Finance Commission]

Explanation:

The Ninth Finance Commission (1990–95) replaced margin money with a Calamity Relief Fund for each State.

3.  

The SDRF and NDRF replaced the CRF and NCCF on the recommendation of the:

Correct Answer: D [Thirteenth Finance Commission]

Explanation:

2010.

4.  

Central assistance from the National Disaster Response Fund is finally approved by the High Level Committee chaired by the:

Correct Answer: D [Union Home Minister]

Explanation:

The High Level Committee that approves NDRF assistance is chaired by the Union Home Minister.

5.  

Under the Fifteenth Finance Commission's framework, the share of the mitigation fund in the risk-management fund is:

Correct Answer: A [20 per cent]

Explanation:

The Fifteenth Finance Commission split each risk-management fund 80 per cent response and 20 per cent mitigation.

6.  

For the north-eastern and Himalayan States, the Union's share in the State disaster fund is:

Correct Answer: B [90 per cent]

Explanation:

For north-eastern and Himalayan States the Union pays 90 per cent of the State fund and the State pays 10 per cent.

7.  

The window "recovery and reconstruction" under the Fifteenth Finance Commission's response fund gets:

Correct Answer: C [30 per cent]

Explanation:

Of the 80 per cent response share, the recovery and reconstruction window gets 30 per cent.

8.  

The team sent by the Union to assess damage after a State submits a memorandum is the:

Correct Answer: D [Inter-Ministerial Central Team]

Explanation:

After a memorandum, the MHA sends an Inter-Ministerial Central Team to assess damage before the HLC decides assistance.

9.  

A State may use part of its SDRF for State-notified local disasters. The ceiling is:

Correct Answer: A [10 per cent]

Explanation:

States may spend up to 10 per cent of their SDRF on notified State-specific local disasters; the Sixteenth Finance Commission recommended continuing it.

10.  

Consider the following statements:

1. The National Disaster Mitigation Fund is provided for in Section 47 of the DM Act.
2. The SDRF is the first source of relief funds after a disaster.
3. The National Calamity Contingency Fund still exists alongside the NDRF.

Which of the statements given above is/are correct?

Correct Answer: B [1 and 2 only]

Explanation:

Statements 1 and 2 are true; statement 3 is false because the NCCF was merged into the NDRF in 2010.

11.  

Assertion (A): Parametric insurance can pay out within days of a disaster.

Reason (R): Its payout depends on a measured trigger, not on a loss assessment.

Correct Answer: A [Both A and R are true, and R is the correct explanation of A]

Explanation:

Both are true, and R explains A: no loss assessment is needed, so payment follows quickly once the trigger is crossed.

12.  

In a catastrophe bond, if the defined disaster occurs:

Correct Answer: D [the investors lose part of the principal, which goes to the issuer]

Explanation:

When the defined event occurs, investors lose part or all of the principal, which the issuer uses to meet disaster costs.

13.  

The Loss and Damage Fund was operationalised at:

Correct Answer: C [COP28, Dubai]

Explanation:

The Loss and Damage Fund agreed at COP27 was operationalised at COP28 in Dubai in 2023.

14.  

In Swaraj Abhiyan v. Union of India (2016), the Supreme Court asked the Union to:

Correct Answer: B [set up the National Disaster Mitigation Fund]

Explanation:

In Swaraj Abhiyan (2016) the Court directed the Union to establish the National Disaster Mitigation Fund within three months.

15.  

Which one of the following is a regional catastrophe risk pool?

Correct Answer: B [Caribbean Catastrophe Risk Insurance Facility]

Explanation:

The CCRIF pools catastrophe risk of Caribbean and Central American governments and gives quick parametric payouts.

16.  

Which of the following is an ex-ante financing tool?

Correct Answer: A [Disaster insurance]

Explanation:

Insurance is arranged and paid for before a disaster, so it is an ex-ante financing tool.

17.  

Arrange the following in chronological order:

1. SDRF and NDRF set up
2. NDRMF and SDRMF recommended
3. Calamity Relief Fund
4. National Calamity Contingency Fund

Select the correct answer using the code given below:

Correct Answer: C [3-4-1-2]

Explanation:

1990, 2000–01, 2010, 2021–26.

18.  

The National Disaster Response Fund is kept in the:

Correct Answer: A [Public Account of India]

Explanation:

The National Disaster Response Fund is held in the Public Account of India as a reserve fund.

19.  

The NCCF was financed mainly through:

Correct Answer: C [a National Calamity Contingent Duty on certain goods]

Explanation:

The NCCF was financed mainly by the National Calamity Contingent Duty levied on certain goods.

20.  

Section 48 of the Disaster Management Act, 2005 requires each State Government to establish:

Correct Answer: D [State and district disaster response and mitigation funds]

Explanation:

Section 48 makes each State set up State and district response funds and State and district mitigation funds.

➤ Full notes, maps, tables, a reason for every option and Mains PYQs – U19 · Disaster Management (UPSC book, ₹249): www.shanmugamiasacademy.in/study-materials/upsc-disaster-management

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