QUIZ 31

1-With reference to the ‘Repo Rate’, consider the following statements:

1. It is the rate at which the Reserve Bank of India lends money to commercial banks within the country.
2. At the time of inflation in the country, the repo rate is reduced.

Which of the statements given above is/are correct?

A1 only

B2 only

CBoth 1 and 2

DNeither 1 nor 2

Explanation

• Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banksin the event of any shortfall of funds. 
• In the event of inflation, central banks increase repo rateas this acts as a disincentive for banks to borrow from the central bank. This ultimately reduces the money supply in the economy and thus helps in arresting inflation. Hence, option c is the correct answer.

 

 2-With reference to Anglo-Indians, consider the following statements

1. Article 366 of the Indian constitutiondefines Anglo-Indians.
2. National Commission for SCs investigates all matters relating to the Constitutional safeguards for the Anglo-Indian community.

Which of the statements given above is/are correct?

A-1 only

B-2 only

C-Both 1 and 2

D-Neither 1 nor 2

Explanation

• Article 366 of the Indian constitutiondefines Anglo-Indian as a person whose father or any of whose other male progenitors in the male line is or was of European descent but who is domiciled within the territory of India and is or was born within such territory of parents habitually resident therein and not established there for temporary purposes only. Hence, statement 1 is correct.
• National Commission for SCs (Article 338)investigates all matters relating to the Constitutional and other legal safeguards for the Anglo-Indian community and report to the President upon their working. Hence, statement 2 is correct.
• Hence, option c is the correct answer

3-Consider the following statements

1. Small Finance Banks can not extend large loans whereas Payment Banks cannot extend loans.
2. Both Small Finance Banks and Payment Banks are required to open at least 25% of its banking outlets in unbanked rural centres.

Which of the statements given above is/are correct?

A-1 only

B-2 only

C-Both 1 and 2

D-Neither 1 nor 2

Explanation

• Small Finance Banks need to extend at least 50% of its loan portfolio constituting loans and advances of up to Rs 25 lakhs. Thus, it cannot extend large loans. Whereas, Payment Banks cannot extend loans at all. Hence, statement 1 is correct.
• Both Small Finance Banks and Payment Banks are required to open at least 25% of its banking outlets in unbanked rural centres. Hence, statement 2 is correct.
• Hence, option c is the correct answer

 

4-With respect to Mauritania, consider the following statements:

1. It is located on the western coast of Africa.
2. It is part of the African Union as well as the United Nations.

Which of the statements given above is/are correct?

A-1 only

B-2 only

C-Both 1 and 2

D-Neither 1 nor 2

Explanation

• Mauritania is located on the Atlantic coast of Africa (west coast). Hence, statement 1 is not correct.
• It is a member of the United Nationsand the African Union. Hence, statement 2 is correct.
• Hence, option c is the correct answer

 

5-With respect to the ‘Exchange Traded Fund (ETF)’, consider the following points:

1. It is a collection of securities and is listed on the stock exchange.
2. India’s first equity-based ETF is Bharat Bond ETF.

Which of the statements given above is/are correct?

A-1 only

B-2 only

C-Both 1 and 2

D-Neither 1 nor 2

Explanation

• An Exchange-Traded Fund (ETF) is a basket of securities that trade on a stock exchange, just like a stock. Hence, statement 1 is correct.
• Recently, the Cabinet Committee on Economic Affairs, chaired by the Prime Minister of India, has approved the Government’s plan to create and launchIndia’s first corporate bond Exchange Traded Fund (ETF) — Bharat Bond ETF. Bharat - 22 ETF is an equity based ETF. Hence, statement 2 is not correct.
• Hence, option A is the correct answer.