ENGLISH QUIZ 10.08.2020

1.Consider the following statements:

1.Jewel loan-to-value ratio raised to 90% from 75%.

2.Under the current guidelines, loans sanctioned by banks against pledge of gold ornaments                           jewellery should not exceed 65% of the value of gold ornaments and jewellery, which has now                     increased to 90%.

Which of the above statement/statements are correct?

A. 1 only

B. 2 only

C. Both 1 and 2

D. Neither 1 nor 2

2.Consider the following statements:

1.In the recent meeting of the Monetary Policy Committee, the Reserve Bank of India-RBI has                       decided to keep the monetary policy rates unchanged.

2.As per the Reserve Bank of India Act-1944, the Government of India will set the inflation target                 once in every five years in consultation with the RBI.

3.The Central Government has set it at 4 percent for the period from August 5, 2016 to March 31,                  2021 as per the ‘Consumer Price Index’ (CPI). The upper limit of which is 6 percent and the lower              limit is 2 percent.

Which of the statements given above is/are correct?

A. 1 and 2 are correct

B. 1 and 3 are correct

C. 2 and 3 are correct

D. All of the above

3.In what year will India host the ICC T20 World Cup?

A. 2021

B. 2022

C. 2023

D. 2024

4.Who among the following has been appointed as UPSC Chairman?

A. Arvind Saxena

B. Pradeep Kumar Joshi

C. Arvind Joshi

D. Pradeep Saxena

5.Who inked partnership with Airtel Payments Bank for offer ‘shop insurance’ for retailers?

A. Bajaj Life Insurance

B. Max Bupa Insurance

C. Bharti AXA General Insurance

D. Airtel Payments Insurance

6.How many million did India contribute to the India-United Nations Development Partnership Fund?

A. 46 million

B. 46 million

C. 46 million

D. 46 million

7.The Monetary Policy Committee of Reserve Bank of India (RBI) unanimously decided to keep the repo rate to what percentage?

A. 4 percent

B. 7 percent

C. 6 percent

D. 5 percent

8.Recently which state has launched Family Identity Card (PPP) scheme?

A. Punjab

B. Haryana

C. Maharashtra

D. Uttarakhand

9.World Tribal Day is observed every year on which date?

A. 07 August

B. 08 August

C. 09 August

D. 10 August

ANSWERS:-

Answer: 1)A      

Explanation

Recently with a view to further mitigating the economic impact of the COVID-19 pandemic on households, entrepreneurs and small businesses, the RBI has decided to increase the permissible loan-to-value ratio (LTV) for loans against pledge of gold ornaments and jewellery for non-agricultural purposes to 90%.

Recent Development

• Under the current guidelines, loans sanctioned by banks against pledge of gold ornaments jewellery should not exceed 75% of the value of gold ornaments and jewellery, which has now increased to 90%.
• This enhanced LTV ratio will be applicable up to March 31, 2021, to enable the borrowers to tide over their temporary liquidity mismatches on account of COVID 19.
• Accordingly, fresh gold loans sanctioned on and after April 1, 2021, shall attract an LTV ratio of 75%.

Significance

• Gold loans by banks will get a fillip from the increase in permissible loan-to-value ratio.
• It is expected that gold loans will be one of the preferred options for raising funds in the current environment for many borrowers as individuals and micro-enterprises go for it to meet immediate funding needs.
• However, with gold prices at all-time highs, banks may be wary of increasing LTV all the way to 90%.

About Gold Monetisation Scheme

• The scheme was launched in November 2015 along with sovereign gold bonds and India gold coins.
• It facilitates the depositors of gold to earn interest on their metal accounts. Once the gold is deposited in metal account, it starts earning interest on the same.
• Under the scheme, a depositor gets 2.25% interest annually for a short-term deposit of one year to three years. Medium- and long-term deposits get 5% interest rate.

Objective

• To mobilize the gold held by households and institutions in the country to put this gold into productive use and in the long run to reduce the current account deficit by reducing the country’s reliance on imports of gold to meet the domestic demand.
• Sovereign Gold Bond Scheme (an alternative to purchasing metal gold) and development of Indian Gold Coin were also launched in November 2015, under Gold Monetization Scheme.

What Is the Loan-to-Value (LTV) Ratio?

• The loan-to-value (LTV) ratio is an assessment of lending risk that financial institutions and other lenders examine before approving a mortgage.
• Typically, loan assessments with high LTV ratios are considered higher risk loans. Therefore, if the mortgage is approved, the loan has a higher interest rate.

Answer: 2)B

Explanation

In the recent meeting of the Monetary Policy Committee, the Reserve Bank of India-RBI has decided to keep the monetary policy rates unchanged.

What is Monetary policy?

• Monetary Policy is the central bank’s policy which uses the monetary instruments like Repo rate, Reverse repo rate, Liquidity Adjustment Facility and many others, to achieve the goals stated in the Act. In India, the Reserve Bank of India (RBI) has been given the responsibility of conducting monetary policy as mandated under the Reserve Bank of India Act, 1934.

Monetary Policy Goal:

• The primary objective of monetary policy is to maintain price stability keeping economic growth in mind. Price stability is an essential for sustainable development.
• As per the Reserve Bank of India Act-1934, the Government of India will set the inflation target once in every five years in consultation with the RBI.
• The Central Government has set it at 4 percent for the period from August 5, 2016 to March 31, 2021 as per the ‘Consumer Price Index’ (CPI). The upper limit of which is 6 percent and the lower limit is 2 percent.

The composition of the Monetary Policy Committee is as follows:

• Governor of the Reserve Bank of India – Chairperson, ex officio: Shri Shaktikanta Das
• Deputy Governor of the Reserve Bank of India, in charge of Monetary Policy– Member, ex officio: Dr. Michael Debabrata Patra
• One officer of the Reserve Bank of India to be nominated by the Central Board – Member, ex officio: Dr. Mridul K. Saggar
• Chetan Ghate, Professor, Indian Statistical Institute (ISI): Member
• Pami Dua, Director, Delhi School of Economics: Member
• Ravindra H. Dholakia, Professor, Indian Institute of Management, Ahmedabad: Member.

Some important instruments of Monetary Policy:

The RBI’s Monetary Policy has several direct and indirect instruments which is used for implementing the monetary policy. Some important instruments of Monetary Policy are as follows:

Repo Rate:

• It is the (fixed) interest rate at which banks can borrow overnight liquidity from the Reserve Bank of India against the collateral of government and other approved securities under the liquidity adjustment facility (LAF).

Reverse Repo Rate:

• It is the (fixed) interest rate at which the Reserve Bank of India can absorb liquidity from banks on an overnight basis, against the collateral of eligible government securities under the LAF.

Liquidity Adjustment Facility (LAF):

• The LAF has overnight as well as term repo auctions under it.
• The term repo helps in the development of the inter-bank term money market.
• This market sets the benchmarks for pricing of loans and deposits.
• This helps in improving the transmission of monetary policy.
• As per the evolving market conditions, the Reserve Bank of India also conducts variable interest rate reverse repo auctions.

Marginal Standing Facility (MSF):

• MSF is a provision which enables the scheduled commercial banks to borrow additional amount of overnight money from the Reserve Bank of India.
• Bank can do this by dipping into their Statutory Liquidity Ratio (SLR) portfolio up to a limit at a penal rate of interest.
• This helps the banks to sustain the unanticipated liquidity shocks faced by them.

Answer: 3)A

Explanation

India has retained the rights to host the ICC Men’s Twenty20 World Cup in 2021, while Australia has been asked to organize this year’s postponed event in 2022.

Format of the tournament:

• The format of the ICC Men’s T20 World Cup 2021 will remain as it was for 2020 and all teams that qualified for that event will now participate in India in 2021.
• A new qualification process will be run for the ICC Men’s T20 World Cup 2022.
• The format of the postponed ICC Women’s Cricket World Cup will remain as it was for 2021.
• Five teams have already qualified for the event and that will stand for 2022.
• The original global qualification event to determine the final three teams to contest the ICC Women’s Cricket World Cup was scheduled to be held in Sri Lanka in July 2020, but this was postponed due to COVID-19. The qualification event will now be held in 2021.

CEO of ICC: Manu Sawhney.

Headquarters of ICC: Dubai, United Arab Emirates.

Chairman of ICC: Imran Khwaja (Interim).

Answer: 4)B

Explanation

Educationist Pradeep Kumar Joshi was  appointed the chairman of the Union Public Service Commission (UPSC).Joshi is currently a member in the Commission. He was administered the oath of office and secrecy by Arvind Saxena, the outgoing chairman of the UPSC.

Union Public Service Commission (UPSC)

• UPSC is the constitutional body which conducts the prestigious civil service examination for Indian Administrative Service (IAS), Indian Foreign Service (IFS) and Indian Police Service (IPS) and various other services. It is established under Article 315 of the Indian Constitution.
• It consists of a Chairman and ten other members, who are appointed and appointed by the President. The Chairman and members of the Commission perform the duties of their office for a period of six years or till they reach the age of 65 years.
• Article 316 of the Constitution deals with the appointment and term of office of the members.

Answer: 5)C

Explanation

Airtel Payments Bank has teamed-up with Bharti AXA General Insurance in a bid to offer ‘shop insurance’ for its retailers and merchants. The policy will provide financial protection in case of damage to assets inside the shop due to fire and allied perils and burglary, among others, as covered in the product.

About Smart Plan Shop Package Policy:

• This policy covers assets inside the shop against burglary, fire and allied perils such as flood, earthquake, landslide, rockslide, riots, strike and malicious damage, among others.
• It also covers the loss of money in safe because of an accident.
• The policy has a flexible sum insured option, starting from Rs 2 lakh up to Rs 25 lakh.

Answer: 6)D

Explanation

India has contributed $15.46 million to the India-UN Development Partnership Fund, underscoring the country’s commitment to supporting developing nations in their developmental priorities across all the Sustainable Development Goals.

The cheque was handed over by India’s Permanent Representative to the UN Ambassador T S Tirumurti to the United Nations Office for South-South Cooperation (UNOSSC) Director Jorge Chediek.

About India-UN Development Partnership Fund:

• The India-UN Development Partnership Fund was formed in 2017, to promote multilateralism and shared prosperity to support developing countries towards the realization of the 2030 Agenda for Sustainable Development.
• The fund is supported and led by the Government of the Republic of India, managed by the United Nations Office for South-South Cooperation (UNOSSC), and implemented in collaboration with the United Nations system.
• Till date, 55 projects and proposals have been approved with a total contribution of USD 41.8 million towards a USD 150 million multi-year pledge to the India-UN Development Partnership Fund.

Answer: 7)A

Explanation

RBI governor Dr. Shaktikanta Das today said that the apex bank’s monetary policy committee has decided to unanimously leave the policy repo rate unchanged at 4 per cent. He added that RBI will continue with the accommodative stance of monetary policy as long as necessary to revive growth, mitigate the impact of COVID-19, while ensuring that inflation remains within the target going  forward.  In an address after the conclusion of the three day MPC meeting on Thursday via video conferencing, RBI Governor said the Marginal Standing Facility (MSF) rate and the Bank rate remain unchanged at 4.25 per cent. He said, the reverse repo rate stands unchanged at 3.35 per cent. He said the MPC’s assessment is that the global economic activity has remained fragile and in retrenchment in the first half of 2020.

Answer: 8)B

Explanation

Haryana chief minister Manohar Lal Khattar launched Parivar Pehchan Patra in the state. A brain child of team CMO, the PPP will enable the citizens to get the benefits of various central and state government schemes at their door-step in a fair and transparent manner. The PPP will be now linked to Mukhya Mantri Parivar Samridhi Yogna (MMPSY). All the departments will be linked with e-Parivar Pehchan Patra (PPP) within the next three months. At present, the MMPSY, which was launched on January 26, 2020 and three pension schemes – Old Age Samman Allowance Scheme, Divyang Jan Pension Scheme, and Widow and Destitute Women Pension Scheme, have been integrated with Parivar Pehchan Patra.

Answer: 9)C

Explanation

Every year United Nations and other world organizations celebrate World Tribal Day or International Day of the World Indigenous People on 09 August. The day promotes and protects the rights of the world indigenous population. The day marked the first meeting of the United Nations Working Group on Indigenous Populations in Geneva, 1982. 2020 Theme: COVID-19 and indigenous people resilience.