Static Quiz 20 April 2024
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Static Quiz 20 April 2024 for UPSC Prelims
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- Question 1 of 5
1. Question
“It is a pooled investment fund that trades in relatively liquid assets. It makes extensive use of complex trading and risk management techniques such as short selling, leverage, and derivatives to make quick returns.”
Which of the following is best described by the passage given above?CorrectAnswer: A
IncorrectAnswer: A
- Question 2 of 5
2. Question
With reference to the ‘Debt Service Coverage Ratio (DSCR)’ of a firm, consider the following statements:
1. The ratio is used to determine if a company will be able to sustain its debt based on cash flow.
2. A DSCR of less than 1 means that the company is able to pay its current debt obligations without borrowing.
Which of the statements given above is/are correct?CorrectAnswer: A
Lenders often assess a borrower’s DSCR before extending a loan. A DSCR of less than 1 indicates negative cash flow, meaning the borrower cannot meet current debt obligations without additional borrowing. For instance, a DSCR of .95 implies that net operating income covers only 95% of annual debt payments. Hence, statement 2 is incorrect.
IncorrectAnswer: A
Lenders often assess a borrower’s DSCR before extending a loan. A DSCR of less than 1 indicates negative cash flow, meaning the borrower cannot meet current debt obligations without additional borrowing. For instance, a DSCR of .95 implies that net operating income covers only 95% of annual debt payments. Hence, statement 2 is incorrect.
- Question 3 of 5
3. Question
The Poverty and Growth Facility, an institution that lends money to poor countries, operates under the administrative control of:
CorrectAnswer: B
IncorrectAnswer: B
- Question 4 of 5
4. Question
The Middle Income Group Scheme aims at:
CorrectAnswer: D
IncorrectAnswer: D
- Question 5 of 5
5. Question
Which of the following statements is/are correct regarding the Agricultural and Processed Foods Export Promotion Development Authority (APEDA)?
1. It is a statutory body under the Ministry of Agriculture and Farmers’ Welfare.
2. The Rice Export Promotion Forum (REPF) is established under its purview.
3. It is responsible for the registration and protection of Intellectual Property rights related to Basmati Rice.
Select the correct answer using the code given below.CorrectAnswer: B
APEDA is a statutory body established under the Agricultural and Processed Food Products Export Development Authority Act, 1985, falling under the Ministry of Commerce and Industry. Hence, statement 1 is incorrect.
IncorrectAnswer: B
APEDA is a statutory body established under the Agricultural and Processed Food Products Export Development Authority Act, 1985, falling under the Ministry of Commerce and Industry. Hence, statement 1 is incorrect.