GK Quiz | 17 March 2020

1. Which of the following is true about AT-1 bonds?

1. It is a part of the Tier-2 capital of a bank.
2. Only commercial banks can issue these bonds.
3. These bonds are unsecured perpetual bonds.
4. Mutual funds, pension funds, investors and individuals can invest in these bonds.

Select the correct answer from the codes given below:

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

Ans. C

Explanation

AT-1 or Additional Tier -1 bonds are issued by banks, including payment banks, cooperative banks, etc. to maintain their capital adequacy ratio. They are maintained as part of Tier-1 capital. These bonds are unsecured perpetual bonds with high risk and interest. The bonds have a call option that can be invoked at the discretion of banks. The banks are not mandated to pay out the interest and they are the last to be redeemed at the discretion of the banks. The banks can reduce the face value of the bonds without the permission of the investors. If the RBI feels that banks are failing, it can cancel the interest payment on outstanding bonds.

Currently, as per Basel-III norms, RBI has mandated that the banks should maintain 11.5% as the capital of their total risk-weighted assets. Out of this, 9.5% is to be maintained as Tier-1 capital and 2% as Tier-2 capital.

Hence, C is the correct answer.

 

2. Which of the following is correct about Keeladi civilization?

1. Keeladi civilization is located on the bank of the Vagai river.
2. Tamil poets have described it as belonging to the Sangam age.
3. Arrentine ware and terracotta are found from the site.

Select the correct answer from the codes given below:

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

Ans. B

Explanation

Keeladi Civilization, also called the Sangam age civilization, is located on the banks of the Vagai river in Tamil Nadu. The site had trade links with parts of India and abroad. In the 4^th round of excavation in 2018, various historical artifacts were found like brick structures, terracotta ring wells, fallen roofing with tiles, golden ornaments, broken parts of copper objects, iron implements, terracotta chess pieces, arrentine wares, etc. Megalithic burials and Roman coins have also been found at the site. However, no signs of religious worship have been found. The urban planning as comparable to Indus valley civilization is found at the site.

Hence, B is the correct answer.

 

3. Which of the following is true about the Vagai river?

1. The river originates in the Eastern Ghats.
2. The river ends in Palk Strait.
3. Varaganadi is one of the tributaries of the Vagai river.
4. Vattaparai fall is on the river Vagai.

Select the correct answer from the codes given below:

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

Ans. B

Explanation

Vagai river finds its origin in the Western Ghats from Varusanadu hills. The river falls in Palk strait. The main tributaries of the Vagai are Suruliyaru, Mullaiyaaru, Varaganadi, Manjalaru,  Kottagudi and Kridhumaal. Vattaparai fall is there on River Vagai.

Hence, B is the correct answer.

 

4. Which of the following is matched incorrectly?

1. Adjournment                : Speaker
2. Adjournment Sine Die : Speaker
3. Prologue                       : President
4. Dissolution                   : President

Select the correct answer from the codes given below:

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

Ans. C

Explanation

Adjournment means suspending the meeting of the house of Parliament or state assemblies. It is done by the presiding officer of the house.

Adjournment Sine Die means terminating a sitting of the house of Parliament or state assemblies for an indefinite period. It is done by the Speaker or Chairman of the house.

Prorogation is called on by the President after the announcement of sine die or in the mid of the session to call off the session of Lok Sabha or Rajya Sabha.

Dissolution: It is called on by the President after the prorogation to dissolve the Lok Sabha or legislative assembly. The Lok Sabha or the legislative assembly is automatically dissolved after a tenure of 5 years or when the President calls off.

Hence, C is the correct answer.

 

5. Which of the following is incorrect about CSR provisions?

1. Corporate Social Responsibility provisions are mandatory to pursue under Companies Act 2013.
2. One of the conditions for the companies includes a turnover of 500 crores.
3. Both A and B
4. None of the above

Ans. C

Explanation

According to Section 135 of the Companies Act 2013, companies having a net worth of INR 500 crore or more, financial turnover of 1000 crore or more or net profit of INR 5 crore or more during the preceding financial year need to constitute a CSR committee. The company needs to invest around 2% of the net profit of the last 3 financial years.

The CSR provisions have been made mandatory by the 2014 rules. By the 2019 amendment act the companies have to constitute Unspent Corporate Social Responsibility Account (“CSR Account“) and the unspent CSR amount needs to be transferred to this account which needs to be spent up within the 3 years of such transfer and if remain unspent within 3 years the amount needs to be transferred in a special fund under schedule 7 of the act. If the amount is not related to CSR activities, the amount can be transferred to that special fund within 6 months of the end of the financial year.

By the 2019 amendment act, now the companies have to spend 2% of the net profit of the previous financial year under the CSR provisions.

Hence, the correct answer is C.

 

6. Which of the following is true about Unnat Bharat Abhiyan?

1. It aims to connect higher educational institutions with rural areas.
2. It aims to promote scientific research in the country.
3. It aims to promote the health of people.
4. None of the above

Ans. A

Explanation

Unnat Bharat Abhiyan is a program under the Ministry of Human Resource and Development to connect higher educational institutions like NIT, IIT, etc. with the local communities and to meet out the rural challenges. The basic aim is to use science and technology to meet out the rural challenges.

Hence, A is the correct answer.