[Mission 2023] QUIZ : Insights Current Affairs Quiz , 29 July 2022

Solution: c)

Ramsar secretariat designating a wetland as wetland of global importance may not lead to any extra funding by the global body.

But from the management point of view, it is like an accreditation. It is like an ISO certification. They can take you off the list as well if you don’t meet their standards continuously. 

Not every Ramsar Site is a notified protected area under the Wildlife (Protection) Act, 1972, hence systematic protection and conservation regimes might not be in place there.

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Solution: b)

On July 29, Prime Minister Narendra Modi will launch India’s first bullion exchange — the India International Bullion Exchange (IIBX) — at Gujarat’s GIFT City (Gujarat International Finance Tec-City), India’s maiden International Financial Services Centre (IFSC) located between Ahmedabad and Gandhinagar.

The bullion exchange, which was announced in the 2020 Union Budget, has not only enrolled jewellers to trade on the exchange, but has also set up necessary infrastructure to store physical gold and silver.

Qualified jewellers will be permitted to import gold through the IIBX.

For the first time in India, since the liberalisation of gold imports through nominated banks and agencies in the 1990s, the eligible qualified jewellers in India, as notified by International Financial Services Centres Authority (IFSCA), have been allowed to directly import gold through IIBX. This reform permits direct participation of qualified jewellers on IIBX for the purpose of importing gold.

Apart from qualified jewellers, non-resident Indians and institutions will also be able to participate on the exchange after registering with the IFSCA. In the medium term, institutions such as Funds for Gold ETF are also expected to participate.

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Solution: d)

What are the advantages of having a bullion exchange in India?

The IIBX will be a gateway for bullion imports into India, where all bullion imports for domestic consumption shall be channelized through the exchange. In addition to providing a trading avenue to various participants, a bullion exchange will also offer the advantages of price discovery, transparency in disclosures, guaranteed centralised clearing and assurance of quality. A bullion exchange, apart from providing standardisation and transparent mechanism, will also be an important step towards financialization of bullion-based products.

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Solution: d)

In economics, the Gini coefficient, also known as the Gini ratio, is a measure of statistical dispersion intended to represent the income inequality or the wealth inequality within a nation or a social group.

A Gini coefficient of 0 expresses perfect equality while a Gini coefficient of 1 expresses maximal inequality.

Solution: a)

A rise in the general level of prices is inflation. If the price of one good has gone up, it is not inflation; it is inflation only if the prices of most goods have gone up.

A mis-match between demand and supply pulls up prices. Either the demand increases over the same level of supply, or the supply decreases with the same level of demand and thus the situation of demand-pull inflation arise.

An increase in factor input costs (i.e., wages and raw materials) pushes up prices. The price rise which is the result of increase in the production cost is cost-push inflation.