[Mission 2023] QUIZ : Insights Current Affairs Quiz , 13 August 2022

Solution: b)

UNMOGIP emerged from U.N. Security Council Resolution 39 of January 1948 that set up the U.N. Commission for India and Pakistan (UNCIP).

The Karachi Agreement of July 1949 firmed up the role of UN-level military observers and permitted supervision of the Cease Fire Line established in Jammu and Kashmir.

India officially maintains that the UNMOGIP’s role was “overtaken” by the Simla Agreement of 1972 that established the Line of Control or the LoC which with “minor deviations” followed the earlier Cease Fire Line. Pakistan however did not accept the Indian argument and continued to seek cooperation from the UNMOGIP. As a result of this divergent policies, Pakistan continues to lodge complaints with the UNMOGIP against alleged Indian ceasefire violations whereas India has not officially gone to the UNMOGIP since 1972 with complaints against Pakistan.

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Solution: d)

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. In its press release issued on August 10, the RBI gave the reasons for the cancellation of the bank’s licence:

• The bank does not have adequate capital and earning prospects. As such, it does not comply with the provisions of Section 11(1) and Section 22 (3) (d) read with Section 56 of the Banking Regulation Act, 1949;
• The continuance of the bank is prejudicial to the interests of its depositors.
• The continuance of the bank is prejudicial to the interests of its depositors.
• The bank with its present financial position would be unable to pay its present depositors in full;

Public interest would be adversely affected if the bank is allowed to carry on its banking business any further.

Solution: c)

Members of NATO are committed to mutual defence in response to an attack by any external party. Collective defence lies at the very heart of NATO, “a unique and enduring principle that binds its members together, committing them to protect each other and setting a spirit of solidarity within the Alliance”.

The European Recovery Programme, known as the Marshall Plan after President Harry S Truman’s Secretary of State George C Marshall, promoted the idea of shared interests and cooperation between the US and Europe. The USSR declined to participate in the Marshall Plan, and discouraged eastern European states in its sphere of influence from receiving American economic assistance.

The Vandenburg Resolution was the stepping stone to NATO. 

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Solution: c)

The Central Vigilance Commission (CVC) expanded the scope of the Advisory Board for Banking and Financial Frauds (ABBFF), which would now examine bank frauds of Rs 3 crore and above and recommend action. Earlier the ABBFF was only looking into banking and financial frauds of Rs 50 crore and above.

The ABBFF is functioning as a ‘Safety Valve’ for bankers and it critically and comprehensively examines the gravity of lapses/accountability, if any, on the part of officials/ Whole Time Directors of PSBs/PSFIs, based on the documentary evidence.

The CVC, in consultation with RBI, thereafter in August 2019 constituted the ABBFF.

Lenders would refer all large fraud cases worth Rs 3 crore and above to the ABBFF and on receipt of its recommendation or advice, the bank concerned would take further action in such matter.

The Central Bureau of Investigation (CBI) may also refer any case or matter to the board where it has any issue or difficulty or in technical matters with the PSB and PFI concerned.

Solution: a)

• Convertibility is the quality that allows money or other financial instruments to be converted into other liquid stores of value.
• Convertibility is an important factor in international trade, where instruments valued in different currencies must be exchanged.