Current Affairs Quiz 06 August 2022
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Current Affairs Quiz 06 August 2022 for UPSC Prelims
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- Question 1 of 5
1. Question
If the RBI decides to adopt an expansionist monetary policy, which of the following would it do ?
1. Cut and optimize the Statutory Liquidity Ratio
2. Increase the Marginal Standing Facility Rate
3. Cut the Bank Rate and Repo RateSelect the correct answer using the code given below
CorrectAns;- c) 1 and 3
Explanation;-
• As the question asked what it do that decrease the SLR, Bank and Repo Rate so that bank will circulate more money and less reserve with them.
• If the question was what it not do during then answer was 2 only i.e. b , because MSF rate should be decreased.
• The Expansionary monetary policy is when a central bank uses its tools to stimulate the economy.
• That increases the money supply, lowers interest rates, and increases demand.
• It boosts economic growth, it lowers the value of the currency, thereby decreasing the exchange rate.
• The Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds.
• The current Repo rate is used by monetary authorities to control inflation, its present percentage now is 4%.
• The Reverse repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) borrows money from commercial banks within the country, the current rate of reverse repo rate is 3.35%.
• The Marginal standing facility (MSF) is a window for banks to borrow from the Reserve Bank of India in an emergency situation when inter-bank liquidity dries up completely. Under MSF, banks can borrow funds up to one percentage of their net demand and time liabilities (NDTL), the current rate MSF percentage is 4.65%.IncorrectAns;- c) 1 and 3
Explanation;-
• As the question asked what it do that decrease the SLR, Bank and Repo Rate so that bank will circulate more money and less reserve with them.
• If the question was what it not do during then answer was 2 only i.e. b , because MSF rate should be decreased.
• The Expansionary monetary policy is when a central bank uses its tools to stimulate the economy.
• That increases the money supply, lowers interest rates, and increases demand.
• It boosts economic growth, it lowers the value of the currency, thereby decreasing the exchange rate.
• The Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds.
• The current Repo rate is used by monetary authorities to control inflation, its present percentage now is 4%.
• The Reverse repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) borrows money from commercial banks within the country, the current rate of reverse repo rate is 3.35%.
• The Marginal standing facility (MSF) is a window for banks to borrow from the Reserve Bank of India in an emergency situation when inter-bank liquidity dries up completely. Under MSF, banks can borrow funds up to one percentage of their net demand and time liabilities (NDTL), the current rate MSF percentage is 4.65%. - Question 2 of 5
2. Question
Consider the following statements about the Emergency Credit Line Guarantee scheme.
1. It provides 100% guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC)
2. Guarantee Fee shall be charged by NCGTC from the Member Lending Institutions (MLIs) under the Scheme.
Which of the above statement is/are correct?CorrectAnswer: A
About Emergency Credit Line Guarantee Scheme (ECLGS)
• Under the Emergency Credit Line Guarantee Scheme (ECLGS) 100% guarantee coverage to be provided by National Credit Guarantee Trustee Company Limited (NCGTC) for additional funding of up to Rs. 3 lakh crore to eligible MSMEs and interested MUDRA borrowers.
• The credit will be provided in the form of a Guaranteed Emergency Credit Line (GECL) facility.
• Tenor of the loan under Scheme shall be four years with a moratorium period of one year on the principal amount.
• No Guarantee Fee shall be charged by NCGTC from the Member Lending Institutions (MLIs) under the Scheme.
• Interest rates under the Scheme shall be capped at 9.25% for banks and FIs, and at 14% for NBFCs.IncorrectAnswer: A
About Emergency Credit Line Guarantee Scheme (ECLGS)
• Under the Emergency Credit Line Guarantee Scheme (ECLGS) 100% guarantee coverage to be provided by National Credit Guarantee Trustee Company Limited (NCGTC) for additional funding of up to Rs. 3 lakh crore to eligible MSMEs and interested MUDRA borrowers.
• The credit will be provided in the form of a Guaranteed Emergency Credit Line (GECL) facility.
• Tenor of the loan under Scheme shall be four years with a moratorium period of one year on the principal amount.
• No Guarantee Fee shall be charged by NCGTC from the Member Lending Institutions (MLIs) under the Scheme.
• Interest rates under the Scheme shall be capped at 9.25% for banks and FIs, and at 14% for NBFCs. - Question 3 of 5
3. Question
Consider the following statements about the Central Bureau of Investigation (CBI):
1. It deals only with cases of corruption and economic offenses.
2. The CBI’s functioning is superintended by the Central Vigilance Commission when the offenses
being investigated come under the Prevention of Corruption Act, 1988.
Which of the statements given above is/are correct?CorrectAnswer: B
CBI can take up investigation even in conventional crimes like assassinations, kidnappings, hijackings, crimes committed by extremists, violation of Official Secrets Act, large scale Banks and Insurance Frauds etc. and others specific cases like Bhagalpur Blindings, Bhopal Gas Tragedy etc.
IncorrectAnswer: B
CBI can take up investigation even in conventional crimes like assassinations, kidnappings, hijackings, crimes committed by extremists, violation of Official Secrets Act, large scale Banks and Insurance Frauds etc. and others specific cases like Bhagalpur Blindings, Bhopal Gas Tragedy etc.
- Question 4 of 5
4. Question
Consider the following Statements with respect to ‘The Commission for Air Quality Management in National Capital Region and Adjoining Areas’:
1. Adjoining areas refers to areas in the states of Haryana, Punjab, and Uttar Pradesh only.
2. The order of the commission will have over- riding effect on any order of the Central pollution control board or state-level statutory bodies.
3. All appeals against the Commission’s orders for air quality management will be heard by the National Green Tribunal.
Which of the statements given above is/are correct?CorrectAnswer: B
Statement 1 is incorrect. The Ordinance provides for constitution of a Commission for better co-ordination, research, identification, and resolution of problems related to air quality in the national capital region (NCR) and adjoining areas. Adjoining areas refers to areas in the states of Haryana, Punjab, Rajasthan, and Uttar Pradesh where any source of pollution may cause adverse impact on air quality in the NCR.
IncorrectAnswer: B
Statement 1 is incorrect. The Ordinance provides for constitution of a Commission for better co-ordination, research, identification, and resolution of problems related to air quality in the national capital region (NCR) and adjoining areas. Adjoining areas refers to areas in the states of Haryana, Punjab, Rajasthan, and Uttar Pradesh where any source of pollution may cause adverse impact on air quality in the NCR.
- Question 5 of 5
5. Question
Arrange the following states in the chronological order of their formation:
1. Mizoram
2. Haryana
3. Nagaland
4. Meghalaya
Select the correct answer using the code given below.CorrectAnswer: C
IncorrectAnswer: C
