Current Affairs Quiz 09 June 2022
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Current Affairs Quiz 09 June 2022 for UPSC Prelims
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- Question 1 of 5
1. Question
Which of the folloing statements regarding Monetary Policy Committee are correct?
1. The Monetary Policy Committee (MPC) is a committee constituted by the Reserve Bank of India and led by the Governor of RBI.
2. Monetary Policy Committee was formed with the mission of fixing the benchmark policy interest rate (repo rate) to restrain inflation within the particular target level.CorrectAns;- c) Both 1 and 2
Explanation;-
• Both the statements are correct regarding Monetary Policy Committee
About Monetary Policy Committee
• The Monetary Policy Committee (MPC) is a committee constituted by the Reserve Bank of India and led by the Governor of RBI.
• Monetary Policy Committee was formed with the mission of fixing the benchmark policy interest rate (repo rate) to restrain inflation within the particular target level.
• Monetary Policy was implemented with an initiative to provide reasonable price stability, high employment, and a faster economic growth rate.
• The major four objectives of the Monetary Policy are mentioned below:
1. To stabilize the business cycle.
2. To provide reasonable price stability.
3. To provide faster economic growth.
4. Exchange Rate Stability.
• Monetary Policy Committee (MPC) was constituted as per Section 45ZB under the RBI Act of 1934 by the Central Government.
• The committee comprises six members – three officials of the Reserve Bank of India and three external members nominated by the Government of India.
• The current mandate of the committee is to maintain 4% annual inflation until 31 March 2021 with an upper tolerance of 6% and a lower tolerance of 2%.
• Decisions are taken by majority with the Governor having the casting vote in case of a tie.IncorrectAns;- c) Both 1 and 2
Explanation;-
• Both the statements are correct regarding Monetary Policy Committee
About Monetary Policy Committee
• The Monetary Policy Committee (MPC) is a committee constituted by the Reserve Bank of India and led by the Governor of RBI.
• Monetary Policy Committee was formed with the mission of fixing the benchmark policy interest rate (repo rate) to restrain inflation within the particular target level.
• Monetary Policy was implemented with an initiative to provide reasonable price stability, high employment, and a faster economic growth rate.
• The major four objectives of the Monetary Policy are mentioned below:
1. To stabilize the business cycle.
2. To provide reasonable price stability.
3. To provide faster economic growth.
4. Exchange Rate Stability.
• Monetary Policy Committee (MPC) was constituted as per Section 45ZB under the RBI Act of 1934 by the Central Government.
• The committee comprises six members – three officials of the Reserve Bank of India and three external members nominated by the Government of India.
• The current mandate of the committee is to maintain 4% annual inflation until 31 March 2021 with an upper tolerance of 6% and a lower tolerance of 2%.
• Decisions are taken by majority with the Governor having the casting vote in case of a tie. - Question 2 of 5
2. Question
Which of the following are correctly matched?
1. Repo Rate = is when the RBI borrows money from banks when there is excess liquidity in the market.
2. Reverse 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.CorrectExplanation;-
• Both the statements are reversed.
• Reverse Repo Rate is a mechanism to absorb the liquidity in the market, thus restricting the borrowing power of investors. Reverse Repo Rate is when the RBI borrows money from banks when there is excess liquidity in the market. The banks benefit out of it by receiving interest for their holdings with the central bank.
• 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. Repo rate is used by monetary authorities to control inflation.
IncorrectExplanation;-
• Both the statements are reversed.
• Reverse Repo Rate is a mechanism to absorb the liquidity in the market, thus restricting the borrowing power of investors. Reverse Repo Rate is when the RBI borrows money from banks when there is excess liquidity in the market. The banks benefit out of it by receiving interest for their holdings with the central bank.
• 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. Repo rate is used by monetary authorities to control inflation.
- Question 3 of 5
3. Question
Which of the following statements regarding MSP i.e. Minimum Support Price are Correct?
1) MSP is decided after sowing the crops
2) MSP is fixed by respective state governments
3) MSP is 1.5 times of the cost of production
Which of the above statement is/are correct?CorrectAns:- c) Only 3
Explanation:-
Statement 1 is not correct because , MSP is decided before sowing the crops , Statement 2 is not correct because the MSP is fixed on the recommendations of the Commission for Agricultural Costs and Prices (CACP), the Cabinet Committee on Economic Affairs (CCEA) of the Union government takes a final decision on the level of MSPs and other recommendations made by the CACP.
Statement 3 is correct because it is 1.5 times cost of production
IncorrectAns:- c) Only 3
Explanation:-
Statement 1 is not correct because , MSP is decided before sowing the crops , Statement 2 is not correct because the MSP is fixed on the recommendations of the Commission for Agricultural Costs and Prices (CACP), the Cabinet Committee on Economic Affairs (CCEA) of the Union government takes a final decision on the level of MSPs and other recommendations made by the CACP.
Statement 3 is correct because it is 1.5 times cost of production
- Question 4 of 5
4. Question
Which of following countries does not boarder Mediterranean sea?
CorrectAnswer: D
IncorrectAnswer: D
- Question 5 of 5
5. Question
Which of the following statements are correct regarding tool of Monetary Policy?
1. Quantitative tool= are not directed towards the quality of credit or the use of the credit.
2. Qualitative tool = are related to the Quantity or Volume of the moneyCorrectAns;- d) None of the above
Explanation;-
• The Quantitative Instruments are also known as the General Tools of monetary policy. These tools are related to the Quantity or Volume of the money. The Quantitative Tools of credit control are also called as General Tools for credit control.
• The Qualitative Instruments are also known as the Selective Tools of monetary policy. These tools are not directed towards the quality of credit or the use of the credit. They are used for discriminating between different uses of credit.
IncorrectAns;- d) None of the above
Explanation;-
• The Quantitative Instruments are also known as the General Tools of monetary policy. These tools are related to the Quantity or Volume of the money. The Quantitative Tools of credit control are also called as General Tools for credit control.
• The Qualitative Instruments are also known as the Selective Tools of monetary policy. These tools are not directed towards the quality of credit or the use of the credit. They are used for discriminating between different uses of credit.
