QUIZ – 2020: Insights Current Affairs Quiz, 9 April 2020

Solution: d)

Kerala’s grievance over Karnataka sealing its border to prevent the spread of COVID-19 has brought under focus the extent and the possible limits, of restrictions that may be imposed by the government to deal with a public health emergency.

Inter-State migration and quarantine are under the Union List, while the prevention of infectious diseases moving from one State to another is under the Concurrent List. This can only mean that while States have the power to impose border restrictions, the responsibility to prevent a breakdown of inter-State relations over such disputes is on the Centre.

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Solution: c)

The Flexitarian Diet is a style of eating that encourages mostly plant-based foods while allowing meat and other animal products in moderation. It’s more flexible than fully vegetarian or vegan diets.

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Solution: c)

What is negative interest rate?
Negative interest rates refer to a scenario in which cash deposits incur a charge for storage at a bank, rather than receiving interest income. Instead of receiving money on deposits in the form of interest, depositors must pay regularly to keep their money with the bank. This environment is intended to incentivise banks to lend money more freely.

How does the negative interest rate policy work?
Under a negative rate policy, financial institutions are required to pay interest for parking excess reserves with the central bank. That is, any surplus cash beyond that which regulators say banks must keep on hand. That way, central banks penalise financial institutions for holding on to cash in the hope of prompting them to boost lending to businesses and consumers.

How do negative interest rates stimulate an economy?
Negative central bank rates also lower borrowing costs on a whole range of instruments, meaning that businesses and households get even cheaper loans. Aside from lowering borrowing costs, advocates of negative rates say they help weaken a country’s currency rate by making it a less attractive investment than that of other currencies. A weaker currency gives a country’s export a competitive advantage and boosts inflation by pushing up import costs.

Which countries have negative interest rates?
Interest rates in a few countries in Europe, including Sweden and Denmark, have been in negative territory.

What are the cons of negative rates?
Negative rates narrow the margin that financial institutions earn from lending. If prolonged ultra-low rates hurt the health of financial institutions too much, they could stop lending and damage the economy.

Solution: b)

• The Central Vigilance Commission (CVC) has constituted an ‘Advisory Board for Banking Frauds (ABBF)’ to examine bank fraud of over ₹50 crore and recommend action.
• The board’s jurisdiction would be confined to those cases involving the level of officers of General Manager and above in the Public Sector Banks in respect of an allegation of fraud in a borrowal account.
• It would function as the first level of examination of all large fraud cases before recommendations or references are made to the investigative agencies by the respective public sector banks (PSBs).
• Lenders would refer all large fraud cases above ₹50 crore to the board and on receipt of its recommendation or advice, the bank concerned would take further action in such matter.
• The Central Bureau of Investigation may also refer any case or matter to the board where it has any issue or difficulty or in technical matters with the PSB concerned.
• It would also periodically carry out frauds analysis in the financial system and give inputs for policy formulation related to the fraud to the RBI.

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Solution: b)

The government launched National Clean Air Programme, a time-bound national level strategy to tackle increasing air pollution.
The NCAP will be a mid-term, five-year action plan with 2019 as the first year. The main aim of the programme would be 20-30% reduction of PM2.5 and PM10 concentration by 2024. The programme would take 2017 as the base year for the comparison of concentration.
Overall objective of the NCAP is comprehensive mitigation actions for prevention, control and abatement of air pollution besides augmenting the air quality monitoring network across the country and strengthening the awareness and capacity building activities.

City specific action plans are being formulated for 102 non-attainment cities identified for implementing mitigation actions under NCAP. Cities have already prepared action plans in consultation with Central Pollution Control Board. The national plan has proposed setting up an apex committee under environment minister, a steering committee under secretary (environment) and a monitoring committee under a joint secretary. There would be project monitoring committees at the state-level with scientists and trained personnel.
Other features of NCAP include, increasing number of monitoring stations in the country including rural monitoring stations, technology support, emphasis on awareness and capacity building initiatives, setting up of certification agencies for monitoring equipment, source apportionment studies, emphasis on enforcement, specific sectoral interventions etc.
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