GK Quiz | 2 September 2020

Q1. Consider the following statements regarding Gross Value Added (GVA):

1. It is the output of the country minus the intermediate consumption.
2. It gives a picture of the state of economic activity from the consumers’ side or demand perspective.
3. It gives the rupee value of goods and services produced in the economy after deducting the cost of inputs and raw materials used.

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: A)

Explanation:

About Gross Value Added (GVA):

• It is the output of the country less the intermediate consumption
• It gives the rupee value of goods and services produced in the economy after deducting the cost of inputs and raw materials used.
• It gives a picture of the state of economic activity from the producers’ side or supply side. The GDP gives the picture from the consumers’ side or demand perspective.
• Formula: Gross Value Added = GDP + subsidies on products - taxes on products

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

 

Q2. Consider the following statements with reference to the Index of Industrial Production (IIP):

1. It is compiled and published yearly by the National Statistical Office (NSO).
2. Core sector industries comprise 50% of the weight of items included in the IIP.
3. Its base Year was changed to 2004-05 from 1993-94 in 2014.

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

1. 2 only
2. 1 and 3 only
3. 1,2 and 3
4. None

Solution: D)

Explanation:

Statements 1,2 and 3: India’s factory output contracted for the fourth month in a row in June at 16.6%. The index of eight core infrastructure sectors dropped to 9.6% in July.

About Index of Industrial Production (IIP):

• It is an indicator that measures the changes in the volume of production of industrial products during a given period.
• It is compiled and published monthly by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation.
• The base year was changed to 2011-12 from 2004-05 in the year 2017.
• Eight core sector industries:
• These include refinery products, fertilizer, crude oil, steel, cement, electricity, coal and natural gas.
• These industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).
• Refinery Products has the highest weightage at 28.04% followed by Electricity (19.85), Steel (17.92), Coal (10.33), Crude Oil (8.98), Natural Gas (6.88), Cement (5.37) and Fertilizers (2.63).

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

 

Q3. Consider the following statements regarding Open Market Operations (OMO):

1. OMO is the simultaneous sale and purchase of government securities and treasury bills by RBI.
2. The aim of OMO is to regulate the money supply in the economy.

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: C)

Explanation:

Statements 1 and 2: In measures to ease pressure on liquidity, RBI announced Open Market Operation (OMO) for an aggregate amount of ₹20,000 crores in two tranches of ₹10,000 crores each.

About Open Market Operations (OMO):

• OMO is the simultaneous sale and purchase of government securities and treasury bills by RBI.
• It is one of the quantitative tools that RBI uses to smoothen the liquidity conditions throughout the year and minimize its impact on the interest rate and inflation rate levels.
• Its main aim is to regulate the money supply in the economy.

So, both statements are correct and hence, option C is correct.

 

Q4. Consider the following statements with reference to the Baobab Tree:

1. They are deciduous trees ranging in height from 5 to 20 meters.
2. They are found only in Asia.

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

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

Solution: B)

Explanation:

Statements 1 and 2:  A study published in the journal Scientific Reports has recently found that the  African Baobab tree has 168 chromosomes. This study will be useful in genetic conservation efforts.

About African Baobabs:

• They are deciduous trees ranging in height from 5 to 20 meters.
• It is one of the nine species of baobab and is native to mainland Africa. They are also found in African Savannah.
• They provide food, livestock fodder, medicinal compounds, and raw materials.
• It is succulent, which means it absorbs and stores water in its vast trunk during the rainy season that enables it to produce a nutrient-dense fruit in the dry season when all around is dry and arid.

(Source: Frontline)

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

 

Q5. Consider the following pairs:

1. Kummattikali - The flower rangolis
2. Pookkalam - Mask dances
3. Pulikali -  The tiger dance

Which of the pair(s) given above is/are correctly matched?

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

Solution: A)

Explanation:

Onam is a major harvest festival in Kerala. It is celebrated to honour the home-coming of Asura king Mahabali. It is a 10-day harvest festival that begins on Atham and concludes on Thiruvonam.

It is celebrated by making Pookkalam, which is the flower rangolis and an intricate and colourful arrangement of flowers laid on the floor.

Following rituals are also performed which includes-

• Vallam Kali: it  is a traditional boat race in Kerala.
• Pulikkali or a tiger dance, is a colourful part of Onam celebrations in Thrissur district of Kerala. In this, human tigers, who paint their bodies with bright yellow and black stripes like a big cat, prance around to the accompaniment of rousing fans. 
• Kummattikali: It is the famous colorful mask-dance of Kerala.
• Onathallu: the martial arts

Hence, option A is correct.

 

Q6. Consider the following statements about Asur Tribe or Asur people:

1. They are Austro-Asiatic in origin.
2. It is a ‘particularly vulnerable tribal group’ found in Tamil Nadu.
3. They claim to be descendants of Mahishasur.

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

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

Solution: C)

Explanation:

Statements 1,2 and 3: About Asur Tribe:

• They are Austro-Asiatic in origin.
• It is among the nine ‘particularly vulnerable tribal groups’ found in Jharkhand. They also live in Bihar, West Bengal and a few other states.
• Festivals like Sarhul, Karma, Dhanbuni, Kadelta, Rajj karma and Dasahara Karam are celebrated by them.
• They claim to be descendants of Mahishasur, the buffalo-demon whom Goddess Durga kills after a spirited fight lasting nine nights. It is this mythology in mainstream Hinduism that’s celebrated in the form of the nine-day-long Durga Puja but observed as ‘Mahishasur Dasain’ among the Asurs, who hold a period of mourning during which they largely stay indoors.

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

 

Q7. With reference to the Purchasing Managers’ Index (PMI), consider the following statements:

1. It is an indicator of business activity in the service and manufacturing sectors.
2. It is usually released at the start of every year.
3. PMI above 50 denotes contraction in business activity.

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

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

Solution: B)

Explanation:

Statements 1,2 and 3:

About Purchasing Managers’ Index (PMI):

• It is an indicator of business activity in the service and manufacturing sectors.
• It is calculated separately for services and the manufacturing sectors, and then a composite index is constructed.
• PMI above 50 represents an expansion when compared to the previous month and anything below 50 represents contraction
• It is usually released at the start of the month.
• It is a good leading indicator of economic activity and corporate earnings.

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

 

Q8. Consider the following statements about the Insurance Regulatory and Development Authority of India (IRDAI):

1. It is a statutory body.
2. It regulates the company investment of funds.
3. It is a 10-member body including the chairman.

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

1. 1 and 3 only
2. 2 only
3. 1,2 and 3
4. None

Solution: C)

Explanation:

Statements 1,2 and 3: About Insurance Regulatory and Development Authority of India (IRDAI)

• It is a statutory body constituted by the Insurance Regulatory and Development Authority Act, 1999.
• It consists of 10-members including the chairman, five full-time and four part-time members appointed by the government of India.
• Functions:
• Regulating company investment of funds
• Issuing, renewing, modifying, withdrawing, suspending or cancelling registrations
• Protecting policyholder interests
• Promoting efficiency in the conduct of insurance businesses
• Promote and regulate professional organizations connected with insurance and reinsurance business

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