[Mission 2023] QUIZ : Insights Current Affairs Quiz , 27 June 2022

Solution: b)

Foreign portfolio investors (FPIs), which own around 19.5% of the market capitalisation, have pulled out Rs 42,000 crore in June 2022 so far, taking the total outflows to Rs 260,000 crore ($33 billion) since October 2021. The FPI sell-off is being attributed to the tightening of monetary policy by the US Fed which has been on a rate hiking spree to control inflation.

Relatively high valuations in India, rising bond yields in the US, an appreciating dollar and concerns regarding the possibility of a recession in the US triggered by aggressive tightening are factors behind FPIs’ pullout.

Analysts said a lower rupee against the dollar keeps import bills higher, pushing inflation even higher than it is now. Higher inflation is detrimental to the overall market. If the rupee does not strengthen, FPI outflows will continue, which is another negative. A strong dollar is good for export-oriented companies, but bad for import-oriented industries such as oil, gas and chemicals. With the dip in the rupee, oil imports and other imported components will get costlier, which will further lead to higher inflation. Travellers and students studying abroad will have to shell out more rupees to buy dollars from banks. People are directly impacted by the rupee fall as fuel prices shoot up.

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Solution: d)

In India, though mediation finds legitimacy in some specific laws such as the Code of Civil Procedure, 1908, the Arbitration and Conciliation Act, 1996, the Companies Act, 2013, the Commercial Courts Act, 2015, and the Consumer Protection Act, 2019, there is no standalone legislation as yet.

Solution: c)

A development finance institution (DFI) also known as a development bank is a financial institution that provides risk capital for economic development projects on non-commercial basis. 

During the pre-liberalised era, India had DFIs which were primarily engaged in development of industry in the country.

In India, the first DFI was operationalised in 1948 with the setting up of the Industrial Finance Corporation (IFCI). Subsequently, the Industrial Credit and Investment Corporation of India (ICICI) was set up with the backing of the World Bank in 1955.

The Industrial Development Bank of India (IDBI) came into existence in 1964 to promote long-term financing for infrastructure projects and industry.

Solution: b)

The term antibiotic resistance is a subset of antimicrobial resistance or AMR which is the ability of a microbe to resist the effects of medication.

Antimicrobial resistant-microbes occur naturally and are found in people, animals, food, and the environment (in water, soil and air).

They can spread between people and animals, including from food of animal origin, and from person to person.

Solution: d)

The Sahel is the ecoclimatic and biogeographic realm of transition in Africa between the Sahara to the north and the Sudanian savanna to the south.

Having a semi-arid climate, it stretches across the south-central latitudes of Northern Africa between the Atlantic Ocean and the Red Sea.