GK Quiz | 18 September 2020

Q1. Consider the following statements about Interest Rate Derivative (IRD):

1. It is a financial instrument with a value that increases and decreases based on movements in interest rates.
2. These are often used as hedges by institutional investors, banks, companies and individuals to protect themselves against changes in market interest rates
3. An interest rate swap (IRS) is a type of Interest Rate Derivative (IRD).

Which of the statement(s) given above is/are correct?

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

Solution: C)

Explanation:

Statements 1,2 and 3: RBI has issued draft on rupee IR derivatives.

About Interest Rate Derivative (IRD):

• It is a financial instrument with a value that increases and decreases based on movements in interest rates.
• These are often used as hedges by institutional investors, banks, companies and individuals to protect themselves against changes in market interest rates.
• These derivatives can also be used to increase or refine the holder's risk profile.
• These may include interest rate futures, options, swaps, swaptions, and FRA’s.
• An interest rate swap (IRS) is a contract between two counterparties who agree to exchange the future interest rate payments they make on loans or bonds.

So, all statements are correct. Hence, option C is correct.

 

Q2. Consider the following statements regarding the Policy on Promotion of City Compost:

1. It was announced by NITI Aayog in 2018.
2. Under the policy, assistance of Rs 1,500 per tonne of city compost will be provided to fertilizer companies.

Which of the statement(s) given above is/are correct?

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

Solution: B)

Explanation:

Statements 1 and 2: About the Policy on Promotion of City Compost:

• It was approved in 2016 to process and use city waste as compost, and announced by the Ministry of Chemicals and Fertilizers.
• Under the policy, the fertilizer companies will get an assistance of Rs 1,500 per tonne of city compost for marketing and promotion of city compost.

So, statement 1 is incorrect and statement 2 is correct. Hence, option B is correct.

 

Q3. Consider the following statements regarding Anti-Satellite (A-SAT) missile:

1. It is a modified Interceptor missile of the Ballistics Missile defence (BMD) system.
2. India is the second country to acquire such a specialized and modern capability.
3. ASAT missile test was done in low earth orbit in order to maximize debris.

Which of the statement(s) given above is/are correct?

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

Solution: B)

Explanation:

Statements 1,2 and 3: Defence Research and Development Organization (DRDO) has successfully conducted an Anti-Satellite (A-SAT) missile test ‘Mission Shakti’ from Dr APJ Abdul Kalam Island launch complex, earlier known as wheeler Island, in Odisha.

DRDO tested ASAT missile which hit a live satellite in Low Earth Orbit of 300 Km.

About Anti-Satellite (A-SAT) missile:

• It is a modified Interceptor missile of the Ballistics Missile defence (BMD) system.
• India is the fourth country to acquire such a specialized and modern capability.
• ASAT missile test was done in low earth orbit in order to minimize debris.
• The interceptor missile was a three-stage missile with two solid rocket boosters.

So, statement 1 is correct and statements 2 and 3 are incorrect. Hence, option B is correct.

 

Q4. With reference to the 1967 Outer Space Treaty, consider the following statements:

1. It prohibits all kind of weapons in outer space.
2. India is yet to ratify this treaty.

Which of the statement(s) given above is/are correct?

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

Solution: D)

Explanation:

Statements 1 and 2: About the 1967 Outer Space Treaty:

• It is the principal international Treaty on space.
• It was opened for signature in the United Sates, and the Soviet Union on 27 January 1967, and entered into force on 10 October 1967.
• It prohibits only weapons of mass destruction in outer space, not ordinary weapons. It does not prohibit the launching of ballistic missiles, which could be armed with WMD warheads, through space.
• India is a signatory to this treaty, and ratified it in 1982.

So, both statements are incorrect. Hence, option D is correct.

 

Q5. Consider the following statements about Essential Commodities Act of 1955:

1. Under the Act, the government can also fix the maximum retail price (MRP) of any packaged product that it declares an “essential commodity”.
2. It is used by the Government to regulate the production, supply and distribution of a whole host of commodities it declares ‘essential’.
3. It gives consumers protection against irrational spikes in prices of essential commodities.

Which of the statement(s) given above is/are correct?

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

Solution: D)

Explanation:

Statements 1,2 and 3: Essential Commodities (Amendment) Bill 2020 has been passed in Lok Sabha that will amend Essential Commodities Act, 1955.

About Essential Commodities Act:

• The Government uses Essential Commodities Act to regulate the production, supply and distribution of a whole host of commodities it declares ‘essential’ in order to make them available to consumers at fair prices.
• Under the Act, the government can also fix the maximum retail price (MRP) of any packaged product that it declares an “essential commodity”.
• Under the act, the list of items includes drugs, fertilisers, petroleum and petroleum products.
• The Centre can include new commodities as and when the need arises, and take them off the list once the situation improves.
• It is important as it gives consumers protection against irrational spikes in prices of essential commodities and cracks down on hoarders and black-marketers of such commodities.

So, all statements are correct and hence, option D is correct.

 

Q6. Consider the following statements about serial interval:

1. It is the time between a person’s exposure to the virus and symptom onset.
2. It depends on incubation period and reproduction rate.

Which of the statement(s) given above is/are correct?

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

Solution:  B)

Explanation:

Statements 1 and 2: China was able to contain Covid-19 due to its ability to manage the serial interval.

About the serial interval:

• It is the duration between symptom onset of a primary case and symptom onset of secondary cases (contacts) generated by the primary case.
• It depends on the following main factors:
• Reproduction rate (R naught) is the number of people who will be infected by one infected person.
• Incubation period which is the time between a person’s exposure to the virus and symptom onset.
• It helps to gauge the effectiveness of infection control interventions besides indicating rising population immunity and forecast future incidence.

So, statement 1 is incorrect and statement 2 is correct and hence, option B is correct.

 

Q7. Consider the following statements:

1. The cycle that the Sun's magnetic field goes through approximately every 11 years is called solar cycle.
2. The beginning of a solar cycle is referred to as a solar maximum.

Which of the statement(s) given above is/are correct?

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

Solution: A)

Explanation:

Statements 1 and 2: NASA and NOAA have jointly announced the start of solar cycle 25. Solar cycle 24 started in December 2008 and ended in December 2019.

About solar cycle:

• It refers to the cycle that the Sun's magnetic field goes through approximately every 11 years.
• Scientists track the solar cycle is by counting the number of sunspots.
• The beginning of a solar cycle is the solar minimum or the sun has the only a few sunspots.
• The middle of the solar cycle is when the Sun has the most sunspots and thus, it is known as solar maximum.

(Source: Indian Express)

So, statement 1 is correct and statement 2 is incorrect. Hence, option A is correct.

 

Q8. Which of the following countries shares a border with Djibouti?

1. Eritrea
2. Somalia
3. Kenya
4. Sudan
5. Ethiopia

Select the correct answer using the codes given below:

1. 1,2 and 5 only
2. 2 and 4 only
3. 2,3 and 4 only
4. 1, 3 and 5 only

Solution: A)

Explanation:

Recently, India has joined Djibouti code of Conduct/Jeddah Amendment as an observer.

Djibouti is a country located in the Horn of Africa in East Africa. The country is strategically located near some of the world’s busiest shipping lanes.

Name of Countries/Geographical bodies sharing border with Djibouti	Location of countries/ geographical bodies sharing border with Djibouti
Eritrea	North
Ethiopia	South and West
Somalia	South
Red Sea and Gulf of Aden	East

Hence, option A is correct.

 

Q9. Consider the following statements with reference to South Asian Association for Regional Cooperation (SAARC):

1. The Secretariat of the Association is at Dhaka, Bangladesh.
2. Maldives joined SAARC at the 13^th annual summit in 2005.
3. It promotes collective self-reliance among the countries of South Asia.

Which of the statement(s) given above is/are correct?

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

Solution: B)

Explanation:

Statements 1,2 and 3: India and Pakistan are expected to participate in the SAARC virtual meeting to be held this year.

About South Asian Association for Regional Cooperation (SAARC):

• It was established with the signing of the SAARC Charter in Dhaka on 8^th December 1985.
• It is headquartered at Kathmandu, Nepal.
• SAARC Secretariat was established in Kathmandu on 16^th January 1987.
• It comprises of the following eight member States:
• Afghanistan
• Nepal
• Pakistan
• Sri Lanka
• Bangladesh
• Bhutan
• India
• Maldives
• Afghanistan joined SAARC at the 13^th annual summit in 2005.
• Objectives:
• To promote the welfare of the people of South Asia and to improve their quality of life.
• To contribute to mutual trust, understanding and appreciation of one another’s problems.
• To promote active collaboration and mutual assistance in the economic, social, cultural, technical and scientific fields. To accelerate economic growth, social progress and cultural development in the region and to provide all individuals the opportunity to live in dignity and to realize their full potentials.
• To promote and strengthen collective self-reliance among the countries of South Asia.
• To strengthen cooperation among themselves in international forums on matters of common interests; and
• To cooperate with international and regional organizations with similar aims and purposes.
• To strengthen cooperation with other developing countries.

So, statements 1 and 2 are incorrect and statement 3 is correct. Hence, option B is correct.

 

Q10. Which of the following is/are the members of G20?

1. Canada
2. India
3. Singapore
4. USA

Select the correct answer using the codes given below:

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

Solution: B)

Explanation:

The Environment Ministerial Meeting of the G20 countries was held recently via video conferencing. The meeting was chaired by Saudi Arabia.

About G20:

• It was founded in 1999 to discuss policy pertaining to the promotion of international financial stability and has expanded its agenda since 2008.
• It is an informal group of 19 countries and the European Union (EU), with representatives of the International Monetary Fund and the World Bank.
• G20 comprises of the following members: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the UK, the USA, and the EU.
• It does not have any permanent secretariat or management and administrative structure as it operates as a forum and not as an organization.

Hence, option B is correct.