GK Quiz | 24 October 2020

Q1. Consider the following statements regarding Government securities (G-Secs):

1. They carry no risk of default.
2. Foreign Portfolio Investors (FPIs) are not allowed to participate in the G-Secs market.
3. Changes in interest rates in the economy do not affect the prices of these securities.

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

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

Solution: A)

Explanation:

Statements 1,2 and 3: About Government security (G-Sec):

• It is a tradable instrument and a debt obligation of the Indian government to fund their fiscal deficit.
• These can be issued by the Central Government or the State Governments. The central government issues both - treasury bills and bonds or dated securities, while State governments issue only bonds or dated securities.
• Such securities are short term (Treasury bills) or long term and are issued through an auction conducted by the RBI on the auction platform.
• Foreign Portfolio Investors (FPIs) are allowed to participate in the G-Secs market within the quantitative limits prescribed from time to time.
• These securities carry practically no risk of default and, thus, are called risk-free gilt-edged instruments.
• Following are some factors which affect G-secs prices:

• Developments in other markets like foreign exchange, money, credit and capital markets.
• Demand and supply of the securities
• Changes in interest rates in the economy and other macro-economic factors, such as, liquidity and inflation.
• Policy actions by RBI like change in repo rates, cash-reserve ratio and open-market operations.
• Developments in international bond markets, specifically the US Treasuries.

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

 

Q2. Consider the following statements:

1. Anti-Corruption Working Group (ACWG) was set up by G20 Leaders at the Toronto Summit in 2010.
2. United Arab Emirates (UAE) became the first Arab nation to assume the G20 presidency.
3. India is a member of G20.

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

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

Solution: C)

Explanation:

Statements 1,2 and 3: Recently, Saudi Arabia hosted the first-ever Ministerial Meeting of the G-20 Anti-Corruption Working Group (ACWG) virtually.

Saudi Arabia became the first Arab nation to assume the G20 presidency.

About Anti-Corruption Working Group (ACWG):

• It was set up by G20 Leaders at the Toronto Summit in 2010.
• It has led the G-20 anti-corruption efforts to coordinate the collective and national actions taken by its members.
• Its objective is to prepare "comprehensive recommendations for consideration by leaders on how the G20 could continue to make practical and valuable contributions to international efforts to combat corruption".
• It cooperates closely with and supports the work of relevant international organizations, including the United Nations, the Organization of Economic Cooperation and Development, the World Bank, the Financial Action Task Force and the International Monetary Fund.

About G20:

• It was founded in 1999 with the aim 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 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

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

 

Q3. Which of the following countries shares a border with Libya?

1. Nigeria
2. Algeria
3. Niger

Select the correct answer using the codes given below:

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

Solution: A)

Explanation:

About Libya:

• It is a country in the Maghreb region in North Africa.
• It is bordered by Egypt to the east, Sudan to the southeast, Chad to the south, the Mediterranean Sea to the north, Tunisia to the northwest Niger to the southwest, and Algeria to the west.

Hence, option A is correct.

 

Q4. Consumer Prices Index for Industrial Worker (CPI-IW) is used for –

1. Measuring inflation in retail prices
2. Determining dearness allowance (DA) paid to central government employees
3. Fixation and revision of minimum wages in scheduled employments.

 Select the correct answer using the codes given below:

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

Solution: C)

Explanation: Recently, the Ministry of Labour and Employment has revised the base year of the Consumer Price Index for Industrial Workers (CPI-IW) from 2001 to 2016.

CPI-IW is used for

• measuring inflation in retail prices
• determining the dearness allowance (DA) of government staff and industrial workers
• revision of the minimum wages in scheduled employments.

About Consumer Price Index (CPI):

• Reserve Bank of India (RBI) adopted CPI in 2014 as its key measure of inflation.
• It captures changes in price levels at the consumer level. It captures changes in the prices of services
• There are four types of CPI: CPI for Industrial Workers (IW), CPI for Rural Labourer (RL), CPI for Agricultural Labourer (AL), CPI (Rural/Urban/Combined).
• The Labour Bureau in the Ministry of Labour and Employment compiles the first three CPI while CPI (Rural/Urban/Combined) is compiled by the Central Statistical Organization (CSO).
• It is released by the National Statistical Office (NSO).
• Monetary Policy Committee (MPC) uses CPI to control inflation.

Hence, option C is correct.

 

Q5. Consider the following statements about Tubarial salivary glands:

1. They are a set of salivary glands deep in the lower part of the throat.
2. They probably lubricate and moisten the upper throat behind the nose and mouth.
3. They are located over a piece of cartilage called the torus tubarius.

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

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

Solution: C)

Explanation:

Statements 1,2 and 3: Recently, the researchers at the Netherlands Cancer Institute have identified a set of salivary glands deep in the upper part of the throat and have named them “tubarial salivary glands”.

This discovery may be important for cancer treatment. Until now, there were three known large salivary glands in humans, namely, one under the tongue, one under the jaw and one at the back of the jaw, behind the cheek.

About Tubarial salivary glands:

• They are a set of salivary glands deep in the upper part of the throat and are located over a piece of cartilage called the torus tubarius.
• They are about 1.5 inches (3.9 centimeters) in length on average.
• They probably lubricate and moisten the upper throat behind the nose and mouth.

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