[Mission 2023] Current Affairs Quiz , 27 August 2022

Solution: b)

What is Money Market?

While the G-Secs market generally caters to the investors with a long-term investment horizon, the money market provides investment avenues of short-term tenor. Money market transactions are generally used for funding the transactions in other markets including G-Secs market and meeting short term liquidity mismatches. By definition, money market is for a maximum tenor of one year. Within the one year, depending upon the tenors, money market is classified into:

• Overnight market – The tenor of transactions is one working day.
• Notice money market – The tenor of the transactions is from 2 days to 14 days.
• Term money market – The tenor of the transactions is from 15 days to one year.

What are the different money market instruments?

Money market instruments include call money, repos, T- Bills, Cash Management Bills, Commercial Paper, Certificate of Deposit and Collateralized Borrowing and Lending Obligations (CBLO).

Call money market:

Call money market is a market for uncollateralized lending and borrowing of funds. This market is predominantly overnight and is open for participation only to scheduled commercial banks and the primary dealers.

Solution: b)

The Heart of Asia – Istanbul Process (HoA-IP) is an initiative of the Republic of Afghanistan and the Republic of Turkey, which was officially launched at a conference hosted by Turkey in Istanbul on 2 November 2011. Since then, Afghanistan supported by fourteen Participating Countries of the Heart of Asia Region and 16 Supporting Countries beyond the region as well as 12 Regional and International Organizations is leading and coordinating this Process. It is a platform for promoting regional security, economic and political cooperation centered on Afghanistan through dialogue and a set of Confidence Building Measures (CBMs).

Solution: c)

The Dhubri – Phulbari Bridge is an under-construction bridge over the Brahmaputra River between Assam and Meghalaya in North-East India.

The Dhubri – Phulbari bridge, to be completed by 2026–27, would be India’s longest bridge over water and would span more than 19 km. This proposed bridge, close to the Bangladesh border, will connect Assam’s Dhubri with Meghalaya’s Phulbari

Solution: d)

The Organization for Security and Co-operation in Europe (OSCE) is the world’s largest regional security-oriented intergovernmental organization with observer status at the United Nations. Its mandate includes issues such as arms control, promotion of human rights, freedom of the press, and free and fair elections.

The OSCE is concerned with early warning, conflict prevention, crisis management, and post-conflict rehabilitation. Most of its 57 participating countries are in Europe, but there are a few members present in Asia and North America. The participating states cover much of the land area of the Northern Hemisphere. It was created during the Cold War era as a forum for discussion between the Western Bloc and Eastern Bloc.

Source

Solution: b)

Fiscal Consolidation refers to the policies undertaken by Governments (national and sub-national levels) to reduce their deficits and accumulation of debt stock.

Farm loan waiver increases the expenditure of government. Thus, it will go against the principle of fiscal consolidation.

Rationalization of tax base increases the revenue for the government and promotes the fiscal consolidation.