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Current Affairs Quiz , 14 Sept 2018


1. Which of the following statements is/ are correct relating to the ‘Global Adult Tobacco Survey’ (GATS)?

I. It is a household survey, of adults 18 years of age or older, is intended to help in the tobacco control interventions.
II. GATS is conducted by the World Health Organization.

Choose the correct code:

I. I only
II. II only
III. Both I and II
IV. Neither I nor II

Answer: b
• Global Adult Tobacco Survey (GATS) by WHO, is a nationally representative household survey of adults 15 years of age or older that is intended to enhance the capacity of countries to design, implement and evaluate tobacco control interventions such as the WHO MPOWER, a package of six evidence-based demand reduction measures contained in the WHO Framework Convention on Tobacco Control (FCTC).
• WHO Framework Convention on Tobacco Control (FCTC) is an evidence-based treaty that reaffirms the right of all people to the highest standard of health and was developed in response to globalization of tobacco epidemic.

2. Consider the following statements relating to the ‘Pradhan Mantri Mudra Yojana’ (PMMY).

I. The credit extended through the Kisan credit card are also considered as MUDRA loans under PMMY.
II. Micro Units Development & Refinance Agency Ltd (MUDRA) is a wholly owned subsidiary of Small Industries Development bank of India (SIDBI).

Identify the incorrect statements using the codes below.

I. I only
II. II only
III. Both I and II
IV. Neither I and II

Answer: a
• Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of Government of India to “fund the unfunded” by bringing such enterprises to the formal financial system and extending affordable credit to them. It enables a small borrower to borrow from all Public Sector Banks such as PSU Banks, Regional Rural Banks and Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions (MFI) and Non-Banking Finance Companies (NBFC) for loans upto Rs 10 lakhs for non-farm income generating activities.
• In the above backdrop the Micro Units Development & Refinance Agency Ltd (MUDRA) was set up as a wholly owned subsidiary of Small Industries Development bank of India (SIDBI) with 100% capital being contributed by it.
• This Agency would be responsible for developing and refinancing all Micro-enterprises sector by supporting the finance Institutions which are in the business of lending to micro / small business entities engaged in manufacturing, trading and service activities. MUDRA would partner with Banks, MFIs and other lending institutions at state level / regional level to provide micro finance support to the micro enterprise sector in the country.

3. Consider the following consequences if the value of Indian rupee depreciates.

I. A decrease in exports.
II. Visiting a foreign country becomes more costly.

Which of the above given statements is/are correct?

I. I only
II. II only
III. Both I and II
IV. Neither I nor II

Answer: b
• Indian rupee is now facing a fall in value against the US dollar amid growing concerns over tightening of global financial conditions and higher crude oil prices coupled with the worsening of domestic macroeconomic variables especially the current account balance and inflation.
• A weak rupee will make exports more competitive and thereby spur exports of goods and services. At the same time weakening of the domestic currency will make the imports more costly.
• The term devaluation is used when the government reduces the value of a currency under Fixed-Rate System.
• When the value of the currency falls under the Floating Rate System, it is called depreciation. Revaluation is a term which is used when there is a rise in currency value in relation with a foreign currency in a fixed exchange rate. In the floating exchange rate regime, the correct term would be appreciation.
• In a depreciated economy, the imports become more expensive; importers lose money while exporters earn more money.
• This is supposed to discourage imports – and encourage exports and, in turn, may reduce trade deficits.

4. SEBI has recently been in news amending rules regarding Foreign Portfolio Investments. Consider the following.

I. Asset Managers Round table of India (AMRI), an organisation which represents the Foreign Portfolio Investors (FPIs) and Foreign Direct Investors (FDIs) community in India.
II. SEBI at present allows NRIs and PIOs from being beneficial owners of an FPI upto 100%.

Identify the correct statements using the codes below.

a. I only
b. II only
c. Both I or II
d. Neither I nor II

Answer: d
• Asset Managers Roundtable of India (AMRI), an organisation which represents the foreign portfolio investors (FPIs) community in India, has expressed concerns about a Securities Exchange Board of India (SEBI).
• Backlash from foreign fund lobby group has forced SEBI to change its course on banning Non-Resident Indians (NRIs) and Person of Indian Origins (PIOs) from owning foreign portfolio investment (FPI) vehicle or structure. SEBI may allow NRIs and PIOs to hold 25 per cent as a single beneficiary and up to 50 per cent as a group in an FPI. In April, SEBI had banned NRIs and PIOs from being beneficial owners (BOs) of an FPI.
• Securities and Exchange Board of India (SEBI) was established in 1988, however, it got statutory mandate and powers under the SEBI Act, 1992. Its objective is to protect the interests of investors in securities and to promote the development and regulation of securities market.

5. Consider the following statements.

I. Rice farming can be a cause of global warming.
II. Growing rice doesn’t require water-intensive cultivation techniques.
III. Nitrous Oxide emissions from rice farming is a long-lived greenhouse gas than methane.

Choose the correct statements using the codes below.

a. I and II only
b. I and III only
c. II and III only
d. I, II and III

Answer: b
• Rice farming across the world could be responsible for up to twice the level of climate impact relative to what was previously estimated, according to a study conducted in India.
• The study, published in PNAS, USA- found that intermittently flooded rice farms can emit 45 times more nitrous oxide as compared to the maximum from continuously flooded farms that predominantly emit methane.
• Growing rice is also resource-intensive: rice cultivation covers 11 % of the Earth’s arable land, consumes one-third of irrigation water.
• Water and organic matter management techniques that reduce methane emissions can increase nitrous oxide emissions.. This is crucial because nitrous oxide is a long-lived greenhouse gas that traps several times more heat in the atmosphere than methane over both 20 and 100-year time frames.


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