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Hello Friends, 

Welcome to Day-19.

Importance of Self – Tracking: Learning from Last Year

Last year, aspirants used to comment their answers in the comment box on daily basis. There were huge participation in discussion. Putting answers in comment box has been very effective to self-track yourself after updating the score. In the end, you can cross check your performance through Disqus profile.

It was highly effective in the last edition of 60 Days that propelled aspirants to monitor their performance and learn through discussion. Let you solve these questions with full honesty and write your result in the comment box. Interact with peers to know your mistakes.

The importance of this initiative stands time-bound and aggressive reverse engineering to learn the concepts. Many of you must be busy with your own strategy but let us tell you honestly that in the last two months, it is very important to revise and consolidate your learning. Just reading won’t suffice.

So, take out few hours from your schedule and make it a revision exercise.

How can you make the best use of it?

Be honest to your effort and do not start competing with XYZ aspirants here just for the sake of marks. It is more important for you to introspect and check your learning than focusing on others. Try to answer the questions in 20 minutes only. 

Do not get into negative feeling that I don’t have enough knowledge to answer these questions. Feel like you are taking the real exam. What would be your response then?

The same will be replicated in UPSC exam. Here, you get marks only and nothing else matters. So, make effort to know the answers to all questions. Do not cheat 😛

 

DETAILED MICRO ANALYSIS MATRIX SAMPLE– is given here. You can download this and do an assessment for yourself.  DOWNLOAD

 

Are you ready? Let’s start!

[Day 19]: ECONOMICS AND CURRENT AFFAIRS

Q.1) Which of the following regulators regulate the NBFCs in India?

  1. Reserve Bank of India
  2. Security and Exchange Board of India
  3. Insurance Regulatory Development Authority
  4. National Housing Bank

Select the correct answer using the codes given below.

  1. 1 only
  2. 1 and 2 only
  3. 1, 2 and 3 only
  4. All the above

Q.2) Consider the following statements about Cash Reserve Ratio (CRR)

  1. An increase in CRR sucks amount from the economy
  2. A decrease in CRR injects amount into the economy

Which of the above statements is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. None

Q.3) Consider the following statement about Call Money Market:

  1. Borrowing and lending of funds take place on overnight basis.
  2. Participants in the call money market in India currently include all the scheduled commercial banks (SCBs), cooperative banks, insurance.

Which of the above statements is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. None

Q.4) Consider the following statements about ‘Willful Defaulter’.

  1. A willful defaulter is financially capable to repay and yet does not do so.
  2. One who diverts the funds for purposes other than what the fund was availed for.
  3. With whom funds are not available in the form of assets as funds have been siphoned off.
  4. Who has sold or disposed the property that was used as a security to obtain the loan.

Which of the above statements is/are correct?

  1. 1, 2 and 3 only
  2. 2, 3 and 4 only
  3. 1 only
  4. All the above

Q.5) Consider the following pairs.

Money Components
    1. Reserve Money Currency in circulation + Bankers’ Deposits with the RBI + ‘Other’ deposits with the RBI.
    2. Narrow Money Currency with the Public + Demand Deposits with the Banking System + ‘Other’ deposits with the RBI.
   3. Broad Money Currency in circulation + Bankers’ Deposits with the RBI + ‘Other’ deposits with the RBI+ Time Deposits with the Banking System.

Which of the pairs is/are correctly matched?

  1. 1 and 2 only
  2. 2 and 3 only
  3. 1 only
  4. All the above

Q.6) Which of the following are the Non-Banking Financial Company (NBFC) in India as per RBI?

  1. Asset Finance Company (AFC)
  2. Infrastructure Finance Company (IFC)
  3. Peer to Peer (P2P) lending
  4. Account Aggregators

Select the correct answer using the codes given below.

  1. 1 and 2 only
  2. 1, 2 and 3 only
  3. 1, 3 and 4 only
  4. All the above

Q.7) Which of the following manages FOREX and Gold reserves of India?

  1. SEBI
  2. All Nationalised Banks
  3. RBI
  4. All of the above

Q.8) Agriculture is covered under the priority sector lending. Which of the following activities are covered under agriculture?

  1. Farm credit
  2. Agriculture Infrastructure
  3. Ancillary Activities

Select the code from below:

  1. 1 only
  2. 1 and 2
  3. 2 and 3
  4. All of the above

Q.9) Consider the following statements regarding Regional Rural Banks:

  1. RRBs have a statutory backing under RRB Act 1976.
  2. Regional Rural Banks are regulated by National Bank for Agriculture and Rural Development (NABARD)
  3. Their area of operation may include urban areas too.

Which of the above statements are correct?

  1. 1 and 2
  2. 2 and 3
  3. 1 and 3
  4. All of the above

Q.10) Which of the following statements are correct regarding T – Wallet?

  1. It is the official digital wallet launched by Andhra Pradesh.
  2. It is the first digital wallet launched by any State government.
  3. It is available in Urdu and Telugu, apart from English.

Select the code from below:

  1. 1 and 2
  2. 2 and 3
  3. 1 and 3
  4. All of the above

Q.11) Which of the following are correct differences between a Payment bank and Small Finance Bank?

  1. Small banks can accept all types of deposits like a commercial bank ( savings, current, fixed deposits, recurring deposits etc) while Payment banks can take deposits only on current & savings account.
  2. Small Finance bank can undertake lending activity while payment banks cannot lend money.

Select the code from below:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Q.12) Consider the following statements regarding Micro Units Development and Refinance Agency Bank (or MUDRA Bank):

  1. It provides loans at low rates to micro-finance institutions and non-banking financial institutions which then provide credit to MSMEs.
  2. The Tarun category under MUDRA bank is allowed a loan upto a limit of Rs 50 thousand.
  3. The bank will function as a subsidiary of SIDBI

Which of the above statements are correct?

  1. 1 and 2
  2. 2 and 3
  3. 1 and 3
  4. All of the above

Q.13) The Department of Posts has launched the India Post Payment Banks(IPPB) as a Public sector company. Which of the following statements are correct regarding IPPB?

  1. IPPB is offering demand deposits such as savings and current accounts up to a balance of Rs 1 Lakh.
  2. It provides access to third-party financial services such as insurance, mutual funds, pension, credit products, forex etc.
  3. Government of India has 100% equity in IPPB.

Select the code from below:

  1. 1 only
  2. 2 and 3
  3. 1 and 3
  4. All of the above

Q.14) Consider the following statements:

  1. The sum total of all the foreign currencies an economy possesses at a particular time is its foreign currency assets/reserves.
  2. Foreign exchange reserves act as the first line of defense for India in case of economic slowdown.
  3. The foreign exchange reserves are managed by the Reserve Bank of India for the Indian government.

Which of the above statements is/are correct?

  1. 1 and 2
  2. 1 and 3
  3. 2 and 3
  4. 1, 2 and 3

Q.15) Consider the following statements regarding credit bureaus in India:

  1. Currently, there are four credit bureaus in India — Moody’s, Experian, Equifax and Standard and Poor’s.
  2. They are regulated by the RBI under the Credit Information Companies (Regulation) Act, 2005.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Q.16) Match the following statements with the related terms given below:

  1. It is rate at which scheduled banks can borrow funds overnight from RBI against government securities.
  2. It is amount that banks have to maintain a stipulated proportion of their net demand and time liabilities (NDTL) in form of liquid assets.
  3. It is amount of funds that banks have to keep with RBI.
  4. It is rate at which banks lend funds to RBI.

Terms:

  1. Reverse Repo Rate
  2. Repo Rate
  3. Marginal Standing Facility (MSF) Rate
  4. Cash Reserve Ratio (CRR)
  5. Statutory Liquidity Ratio (SLR)

Select the correct answer using the following codes:

  1. 1-E; 2-C; 3-B; 4-A
  2. 1-E; 2-C; 3-A; 4-B
  3. 1-C; 2-E; 3-D; 4-A
  4. 1-C; 2-E; 3-D; 4-B

Q.17) Why maintaining Capital Adequacy Ratio (CAR) is/are must in banks?

  1. Bank capital helps to prevent bank failure.
  2. It acts as a cushion to lessen the chance of the bank turning insolvent.

Which of the above stated reasons is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Q.18) With reference to regulation of pension products, consider the below statements:

  1. Pension products floated by insurance companies or sold by mutual funds come under the purview of the Insurance Regulatory and Development Authority (IRDA).
  2. The National Pension System (NPS) is a voluntary defined contribution pension system administered and regulated by the Pension Fund Regulatory and Development Authority (PFRDA).

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Q.19) Which among the following is not SEBI regulated NBFC?

  1. Venture Capital Fund
  2. Merchant Banking companies
  3. Stock Broking companies
  4. Housing Loan companies

Q.20) Consider the following pairs:

  1. Capital Adequacy Ratio (CAR) : : the ratio of liquid assets to net demand and time liabilities (NDTL)
  2. Cash Reserve Ratio (CRR) : : minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank
  3. Statutory Liquidity Ratio (SLR) : : expressed as a percentage of a bank’s risk weighted credit exposures

Which of the pairs given above is/are not correct?

  1. 1 only
  2. 1 and 3 only
  3. 2 only
  4. None of the above

Q.21) Consider the following statements about Aggregate Measurement of Support (AMS)

  1. It is the measure for domestic subsidies for agriculture under the WTO Agreement of Agriculture
  2. It consists of Amber Box
  3. It is associated with product specific subsidies only

Select the correct statements

  1. 1 and 2
  2. 2 and 3
  3. 1 and 3
  4. All of the above

Q.22) Consider the following statements about ‘Hortinet’

  1. It is developed by the Agricultural and Processed Food Products Export Development Authority (APEDA)
  2. It allows farmers to apply online to facilitate their farm registration
  3. It provides for testing and certification of vegetables meant for export from India to the European Union

Select the correct statements

  1. 1 Only
  2. 1 and 2
  3. 1, 2 and 3
  4. 2 and 3

Q.23) Consider the following statements about ‘Silai/Sal Tree’

  1. It is found in both the Eastern Ghats and Western Ghats
  2. The dry leaves of the tree are a major source for the production of leaf plates
  3. Oil extracted from the seeds of the tree is used as edible oil

Select the correct statements

  1. Only 2
  2. 2 and 3
  3. 1 and 2
  4. 1 and 3

Q.24) Consider the following statements about ‘Kandariya Mahadeva Temple’

  1. It was built during the reign of Vidyadhara of the Chandela dynasty
  2. It was built to celebrate Vidyadhara’s success over Mahmud of Ghazni
  3. It is located in Khajuraho

Select the correct statements

  1. 1 and 2
  2. 2 and 3
  3. 1 and 3
  4. All of the above

Q.25) ‘Global Human Capital Index’ is released by

  1. World Economic Forum
  2. International Labour Organization
  3. World Bank
  4. None of the above

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