QUIZ – 2017: Insights Current Affairs Quiz, 04 January 2017

Solution: c.

“With the Union budget less than a month away, the coming weeks could well serve to provide clear signals on the potential need for a fiscal stimulus to reinvigorate flagging economic growth, especially if a revival in credit growth is going to be slower than anticipated.”

• Economic stimulus consists of attempts by governments or government agencies to financially stimulate an economy. An economic stimulus is the use of monetary or fiscal policy changes to kickstart growth during a recession. Governments can accomplish this by using tactics such as lowering interest rates, increasing government spending and quantitative easing, to name a few.
• John Maynard Keynes, a British economist from the early 20th century, is most often associated with the concept of economic stimulus, sometimes referred to as counter-cyclical measures. His general theory argued that during times of persistently high unemployment, governments ought to deficit spend in an effort to stimulate further demand, elevate growth rates, and reduce unemployment. In stimulating growth, deficit spending could, in some circumstances, pay for itself through higher tax revenues resulting from faster growth.

Investopedia: What is an ‘Economic Stimulus’;

Improvisation: TH – A nudge to borrowers;

Solution: a.

Safe to be aware of the names of important cases.

Improvisation: TH: Two takes on democracy;

Bar and Bench: Record of Proceedings;

—

Solution: a.

“Taking another step towards digitisation of records, the Mumbai Police will soon be taking its entire fingerprint database online… The police are also exploring the possibility of linking the database to the countrywide Crime and Criminal Tracking Network System (CCTNS), an initiative that aims to link police forces to a single server so that information about arrested and wanted accused can be accessed by police anywhere in the country.”

TH: Soon, Mumbai police to digitise fingerprint data;

Solution: b.

Statement 3 refers to ‘Brown Label’ ATMs.

“In a circular, RBI said banks should advise their currency chests to step up issuance of fresh notes to rural branches of Regional Rural Banks, District Central Cooperative Banks and commercial banks, White Label ATMs in rural areas and post offices in rural areas on a priority basis.”

• Traditionally, Automated Teller Machines (ATMs) have respective bank’s logo. So just by looking, this is SBI’s ATM, this is ICICI’s ATM and so on.
• But White label ATM doesn’t have such Bank logo, hence called White label ATMs.
• RBI has given license / permission to non-bank entities to open such ATMs.
• Any non-bank entity with a minimum net worth of Rs.100 crore, can apply for white label ATMs. (not just NBFC, any non-bank entity can apply.)

Mrunal: White Label ATMs;

Improvisation: Th: RBI tells banks to ensure 40% of cash supply reaches rural areas;

Solution: d.

• Target group: The scheme will provide entrepreneurship education and training to over seven lakh students over five years (2016-17 to 2020-21) through 3,050 institutes.  It will also include easy access to information and mentor network, credit, incubators and accelerators and advocacy for the youth covered under the scheme.
• Institutes covered under the Scheme: The scheme includes 2,200 institutes of higher learning (colleges, universities, and premier institutes), 300 schools, 500 Industrial Training Institutes and 50 Entrepreneurship Development Centres, through Massive Open Online Courses (MOOCs).

Source: PRS MPR: November 2016;

Solution: c.

Same explanation as provided for Question 1.

Investopedia: What is an ‘Economic Stimulus’;

Improvisation: TH – A nudge to borrowers;