Current Affairs Quiz 27 October 2022

What is Capital Adequacy Ratio?
• It is the ratio of a bank’s capital in relation to its risk weighted assets and current liabilities.
• It is decided by central banks and bank regulators to prevent commercial banks from taking excess leverage and becoming insolvent in the process.
• Capital Adequacy Ratio = (Tier I + Tier II + Tier III (Capital funds)) /Risk-weighted assets.
• The CRAR is a ratio that compares the value of a bank’s capital (or net worth) against the value of its various assets weighted according to how risky each asset is, and is used to gauge the risk of insolvency faced by a bank.
• The riskier a type of asset held in a bank’s balance sheet, the higher the weightage given to the value of the asset while calculating the bank’s capital adequacy ratio.
• This causes the capital adequacy ratio of the bank to drop, thus signalling a higher risk of insolvency during crises.
What are Basel-III norms?
• These were adopted by financial regulators across the globe in the aftermath of the financial crisis of 2007-08 that involved major failures in the banking system.
• Banks are supposed to maintain their CRAR at 9% or above.

The International Court of Justice
o The International Court of Justice, also known as the World Court.
o It was established in June 1945 by the Charter of the United Nations and began work in April 1946.
o The seat of the Court is at the Peace Palace in The Hague (Netherlands).
o Role and Responsibilities:
 The Court settles legal disputes submitted to it by States, in accordance with international law.
 It also gives advisory opinions on legal questions referred by authorised UN organs and specialised agencies.
 Judgments in disputes between States are binding.
 The Court decides disputes between countries, based on the voluntary participation of the States concerned.
 If a State agrees to participate in a proceeding, it is obligated to comply with the Court’s decision.
o Unlike other organs of international organizations, the Court is not composed of representatives of governments. Members of the Court are independent judges whose first task, before taking up their duties, is to make a solemn declaration in open court that they will exercise their powers impartially and conscientiously.

The Global South
• The Global South has traditionally been used within intergovernmental development organizations –– primarily those that originated in the Non-Aligned Movement¬ ¬–– to refer to economically disadvantaged nation-states and as a post-cold war alternative to “Third World.”
o However, in recent years and within a variety of fields, the Global South is employed in a post-national sense to address spaces and peoples negatively impacted by contemporary capitalist globalization.

Ajeya Warrior (army-to-army biennial exercise), the Konakan (joint navy-to-navy annual exercise) and the Indradhanush (joint air-to-air exercise) happen between India and UK.
Vajra Prahar: India and US
Garuda Shakti: India & Indonesia

What is Particulate Matter (PM?
• Particulate matter (PM) are inhalable and respirable particles composed of sulphate, nitrates, ammonia, sodium chloride, black carbon, mineral dust and water.
• PM2.5:
o PM2.5, particulate matter consisting of fine aerosol particles measuring 2.5 microns or smaller in diameter, is one of six routinely measured criteria air pollutants .
o It is commonly accepted as the most harmful to human health due to its prevalence in the environment and the broad range of health effects.
o It is generated from many sources and can vary in chemical composition and physical characteristics.
o Common chemical constituents of PM2.5 include sulphates, nitrates, black carbon, and ammonium.
o The most common human-made sources include internal combustion engines, power generation, industrial processes, agricultural processes, construction, and residential wood and coal burning. The most common natural sources for PM2.5 are dust storms, sandstorms, and wildfires.