[Mission 2023] QUIZ : Insights Current Affairs Quiz , 12 August 2022

Solution: d)

Financial institutions wishing to carry out banking operations such as accepting deposits or lending have to obtain a licence from India’s central bank. The RBI issues the licence under the Banking Regulation Act of 1949 after carrying out a series of checks about the financial suitability of the applicant institution.

Parameters like capital adequacy ratio (CAR) — the ratio of a bank’s available capital to its risk weighted credit exposure — and loan to deposit ratio (LDR) — the ratio of a bank’s total loans to total deposits in the same period — are checked before the licence is granted. The 1949 Act in particular stresses on adequate capital and protection of the public interest before the licence is granted.

No company other than one that has been issued a banking licence is allowed to use the word bank in its name while doing business. RBI, which issues the licence, has the power to cancel it as well, in case the bank fails to satisfy laid-down conditions. This could mean an increase in bad debts — and if the RBI feels a bank does not have enough capital to cover its exposure and pay its depositors, its licence can be suspended or cancelled.

The RBI audits banks every year, and can take action if it notes an increase in bad debts or other suspicious activities in their books.

Source

Solution: b)

New Delhi held its first political dialogue with the North Atlantic Treaty Organisation (NATO) in Brussels on December 12, 2019.

The North Atlantic Treaty Organisation, or NATO, is a political and military alliance of 28 European countries and two countries in North America (United States and Canada).

It was set up in 1949 by the US, Canada, and several western European nations to ensure their collective security against the Soviet Union. It was the US’s first peacetime military alliance outside the western hemisphere.

Thirty countries are currently members of NATO, which is headquartered in Brussels, Belgium.

Source

Solution: b)

CPI may differ from GDP deflator because:

1. The goods purchased by consumers do not represent all the goods which are produced in a country. GDP deflator takes into account all such goods and services.
2. CPI includes prices of goods consumed by the representative consumer; hence it includes prices of imported goods. GDP deflator does not include prices of imported goods.
3. The weights are constant in CPI – but they differ according to production level of each good in GDP deflator.

Ministry of Statistics and Programme Implementation (MOSPI) comes out with GDP deflator in National Accounts Statistics as price indices.

Solution: b)

President Droupadi Murmu administered the oath of office to Jagdeep Dhankhar. Before his swearing-in, the Election Commission’s certification of election issued to Mr. Dhankhar was read out.

Source

Solution: a)

The Mekong is a trans-boundary river in Southeast Asia. From the Tibetan Plateau the river runs through China’s Yunnan Province, Myanmar, Laos, Thailand, Cambodia, and Vietnam.

The Tigris is the eastern of the two great rivers that define Mesopotamia, the other being the Euphrates. The river flows south from the mountains of south-eastern Turkey through Iraq and empties into the Persian Gulf.