QUIZ – 2020: Insights Current Affairs Quiz, 13 April 2020

Solution: d)

Some of the Financial entities regulated by SEBI.

Investment Banks

Capital Markets

Stock Brokers

Real estate investment trusts (REITs)

Infrastructure investment trusts (InvITs)

Stock Exchanges

Commodities Futures / Options

Alternative Investment Funds

Solution: c)

The IPSF is part of the European Commission’s ongoing work to support a global transition to a low-carbon, more resource-efficient and sustainable economy.

What is the scope and objectives of the IPSF?

The ultimate objective of the IPSF is to scale up the mobilisation of private capital towards environmentally sustainable investments. The IPSF will deepen international cooperation and, where appropriate, coordination on approaches and initiatives for the capital markets (such as taxonomies, disclosures, standards and labels), that are fundamental for private investors to identify and seize environmentally sustainable investment opportunities globally.

Operationally, the IPSF will pursue three objectives:

• Exchange and disseminate information to promote best practices in environmentally sustainable finance;
• Compare the different initiatives and identify barriers and opportunities to help scale up environmentally sustainable finance internationally;
• While respecting national and regional contexts, enhance international coordination where appropriate on environmentally sustainable finance issues. In addition, where appropriate, some willing members could strive to align initiatives and approaches.

The members of the IPSF are jurisdictions willing to advance on environmentally sustainable finance. The members are represented by public authorities in charge of developing environmentally sustainable finance policies and initiatives in their respective jurisdiction. The members of the IPSF are the European Union and relevant authorities from Argentina, Canada, Chile, China, India, Kenya, and Morocco.

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Solution: b)

India is working with the United States to secure a dollar swap line that would help in better management of its external account and provide extra cushion in the event of an abrupt outflow of funds, according to banking industry and government sources.

In a swap arrangement, the US Fed provides dollars to a foreign central bank, which, at the same time, provides the equivalent funds in its currency to the Fed, based on the market exchange rate at the time of the transaction. The parties agree to swap back these quantities of their two currencies at a specified date in the future, which could be the next day or even three months later, using the same exchange rate as in the first transaction.

These swap operations carry no exchange rate or other market risks, as transaction terms are set in advance. The absence of an exchange rate risk is the major benefit of such a facility.

In 2019, India signed a $75 billion bilateral currency swap line agreement with Japan, which has the second largest dollar reserves after China. This facility provides India with the flexibility to use these reserves at any time in order to maintain an appropriate level of balance of payments or short-term liquidity.

Recently to further financial stability and economic cooperation within the SAARC region, the RBI put in place a revised framework on currency swap arrangement for SAARC countries for 2019-22.

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Solution: c)

No first use nuclear doctrine refers to a pledge or a policy by a nuclear power not to use nuclear weapons as a means of warfare unless first attacked by an adversary using nuclear weapons. Earlier, the concept had also been applied to chemical and biological warfare.

China became the first nation to propose and pledge NFU policy when it first gained nuclear capabilities in 1964, stating “not to be the first to use nuclear weapons at any time or under any circumstances”.

India first adopted a “No first use” policy after its second nuclear tests, Pokhran-II, in 1998.

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Solution: d)

CITES (the Convention on International Trade in Endangered Species of Wild Fauna and Flora) is an international agreement between governments. Its aim is to ensure that international trade in specimens of wild animals and plants does not threaten their survival.

It was signed on March 3, 1973 (Hence world wildlife day is celebrated on march 3).

It is administered by the United Nations Environment Programme (UNEP).

Secretariat— Geneva (Switzerland).

CITES is legally binding on state parties to the convention, which are obliged to adopt their own domestic legislation to implement its goals.

The species covered by CITES are listed in three Appendices, according to the degree of protection they need.

Appendix I includes species threatened with extinction. Trade in specimens of these species is permitted only in exceptional circumstances.

Appendix II includes species not necessarily threatened with extinction, but in which trade must be controlled in order to avoid utilization incompatible with their survival.

Appendix III contains species that are protected in at least one country, which has asked other CITES Parties for assistance in controlling the trade.

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