IASbaba's Daily Static Quiz
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DAILY STATIC QUIZ (PYQs)
It will cover PYQs all the topics of static subjects – Polity, History, Geography, Economics, Environment and Science and technology.
Daily 5 questions (Monday to Saturday) will be posted from static topics (PYQs)
The questions will be in the quiz format so you will be able to answer them directly on the portal.
Schedule
- Week 1 – Polity
- Week 2 – Economics
- Week 3 – History and Art & Culture
- Week 4 – Geography
- Week 5 – Environment and Science & Technology
Same cycle will be repeated from Week 6.
Make the best use of the initiative. All the best!
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Question 1 of 5
1. Question
In the context of the Indian economy, non-financial debt includes which of the following?
- Housing loans owed by households
- Amounts outstanding on credit cards
- Treasury hills
Select the correct answer using the code given below:
Correct
Solution (d)
Non-financial debt consists of credit instruments issued by governmental entities, households and businesses that are not included in the financial sector.
Debts are contractual obligations to repay monetary loans, often with related interest expense. Non-financial debt includes industrial or commercial loans, Treasury bills and credit card balances. They share most of the same characteristics with financial debt, except the issuers are non-financial. They have maturities ranging from one day to perpetuity, and can be used as loans to finance a company’s growth. Companies can also use more sophisticated debt instruments for hedging purposes.
Incorrect
Solution (d)
Non-financial debt consists of credit instruments issued by governmental entities, households and businesses that are not included in the financial sector.
Debts are contractual obligations to repay monetary loans, often with related interest expense. Non-financial debt includes industrial or commercial loans, Treasury bills and credit card balances. They share most of the same characteristics with financial debt, except the issuers are non-financial. They have maturities ranging from one day to perpetuity, and can be used as loans to finance a company’s growth. Companies can also use more sophisticated debt instruments for hedging purposes.
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Question 2 of 5
2. Question
The term ‘West Texas Intermediate’, sometimes found in news, refers to a grade of
Correct
Solution (a)
West Texas Intermediate (WTI) crude oil is a specific grade of crude oil and one of the main three benchmarks in oil pricing, along with Brent and Dubai Crude. WTI is known as a light sweet oil because it contains 0.24% sulfur and has a low density, making it “light.”
WTI is the underlying commodity of the New York Mercantile Exchange’s (NYMEX) oil futures contract and is considered a high-quality oil that is easily refined.
Incorrect
Solution (a)
West Texas Intermediate (WTI) crude oil is a specific grade of crude oil and one of the main three benchmarks in oil pricing, along with Brent and Dubai Crude. WTI is known as a light sweet oil because it contains 0.24% sulfur and has a low density, making it “light.”
WTI is the underlying commodity of the New York Mercantile Exchange’s (NYMEX) oil futures contract and is considered a high-quality oil that is easily refined.
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Question 3 of 5
3. Question
With reference to the international trade of India at present, which of the following statements is/are correct?
- India’s merchandise exports are less than its merchandise imports.
- India’s imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years.
- India’s exports of services are more than its imports of services.
- India suffers from an overall trade/current account deficit.
Select the correct answer using the code given below:
Correct
Solution (d)
India had a total export of 322,291,568.43 in thousands of US$ and total imports of 617,945,603.08 in thousands of US$ leading to a negative trade balance of -295,654,034.65 in thousands of US$ The Effectively Applied Tariff Weighted Average (customs duty) for India is 4.88% and the Most Favored Nation (MFN) Weighted Average tariff is 6%.The trade growth is 0.87% compared to a world growth of 3.50%. GDP of India is 2,718,732,231,300 in current US$. India services export is 204,955,578,850 in BoP, current US$ and services import is 124,181,614,510 in Bop, current US$.India exports of goods and services as percentage of GDP is 19.74% and imports of goods and services as percentage of GDP is 23.64%.
https://wits.worldbank.org/CountryProfile/en/IND#:~:text=India%20All%20Products%20Exports%20and%20Imports&text=India%20services%20export%20is%20204%2C955%2C578%2C850,percentage%20of%20GDP%20is%2023.64%25.
https://iasbaba.com/2020/05/issues-in-export-sector-during-covid19-all-india-radio-air-ias-upsc/
Incorrect
Solution (d)
India had a total export of 322,291,568.43 in thousands of US$ and total imports of 617,945,603.08 in thousands of US$ leading to a negative trade balance of -295,654,034.65 in thousands of US$ The Effectively Applied Tariff Weighted Average (customs duty) for India is 4.88% and the Most Favored Nation (MFN) Weighted Average tariff is 6%.The trade growth is 0.87% compared to a world growth of 3.50%. GDP of India is 2,718,732,231,300 in current US$. India services export is 204,955,578,850 in BoP, current US$ and services import is 124,181,614,510 in Bop, current US$.India exports of goods and services as percentage of GDP is 19.74% and imports of goods and services as percentage of GDP is 23.64%.
https://wits.worldbank.org/CountryProfile/en/IND#:~:text=India%20All%20Products%20Exports%20and%20Imports&text=India%20services%20export%20is%20204%2C955%2C578%2C850,percentage%20of%20GDP%20is%2023.64%25.
https://iasbaba.com/2020/05/issues-in-export-sector-during-covid19-all-india-radio-air-ias-upsc/
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Question 4 of 5
4. Question
With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristics?
Correct
Solution (b)
Foreign direct investment or FDI is when a business receives investment from a foreign investor (individual or company). This foreign investor is based outside the country where the business is taking place.
Foreign direct investments are characterized by a notion of ‘lasting interest’. Having a lasting interest in the business where the investment is being done is a significant characteristic of FDI. Foreign direct investments are guided by the notion of ‘controlling ownership’.
Incorrect
Solution (b)
Foreign direct investment or FDI is when a business receives investment from a foreign investor (individual or company). This foreign investor is based outside the country where the business is taking place.
Foreign direct investments are characterized by a notion of ‘lasting interest’. Having a lasting interest in the business where the investment is being done is a significant characteristic of FDI. Foreign direct investments are guided by the notion of ‘controlling ownership’.
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Question 5 of 5
5. Question
With reference to the Indian economy, consider the following statements:
- ‘Commercial Paper’ is a short-term unsecured promissory note.
- ‘Certificate of Deposit’ is a long-term instrument issued by the Reserve Bank of India to a corporation.
- ‘Call Money’ is a short-term finance used for interbank transactions.
- ‘Zero-Coupon Bonds’ are the interest bearing short-term bonds issued by the Scheduled Commercial Banks to corporations.
Which of the statements given above is/are correct?
Correct
Solution (c)
Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note. It can be issued for maturities between a minimum of 7 days and a maximum of up to one year from the date of issue (short-term). Hence statement 1 is correct.
A certificate of deposit (CD) is a product offered by banks and credit unions that provides an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period of time. Hence Statement 2 is incorrect
Call money rate is the rate at which short term funds are borrowed and lent in the money market among banks on a day-today basis. Banks resort to this type of loan to fill the asset liability mismatch, comply with the statutory CRR and SLR requirements and to meet the sudden demand of funds. Hence statement 3 is correct.
A zero-coupon bond is a debt security that does not pay interest but instead trades at a deep discount, rendering a profit at maturity, when the bond is redeemed for its full face value. Hence Statement 4 is incorrect
Incorrect
Solution (c)
Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note. It can be issued for maturities between a minimum of 7 days and a maximum of up to one year from the date of issue (short-term). Hence statement 1 is correct.
A certificate of deposit (CD) is a product offered by banks and credit unions that provides an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period of time. Hence Statement 2 is incorrect
Call money rate is the rate at which short term funds are borrowed and lent in the money market among banks on a day-today basis. Banks resort to this type of loan to fill the asset liability mismatch, comply with the statutory CRR and SLR requirements and to meet the sudden demand of funds. Hence statement 3 is correct.
A zero-coupon bond is a debt security that does not pay interest but instead trades at a deep discount, rendering a profit at maturity, when the bond is redeemed for its full face value. Hence Statement 4 is incorrect
