UPSC Current Affairs Quiz : 30 January 2024

Solution: b)

Statement 1 is incorrect.

Indian companies’ fundraising via dollar bonds hit a 14-year low in 2023, as elevated global yields discouraged borrowers who moved to securing foreign currency loans instead.

Throughout 2023 global interest rate environment was not favourable and the cost of raising dollars hedged into rupees was comparatively higher than (accessing) domestic liquidity, so Indian issuers chose to borrow locally.

Multiple rate hikes by the U.S. Federal Reserve and anticipation of prolonged higher rates drove an increase in bond yields worldwide.

Instead, Indian companies leaned on foreign currency loans, which are benchmarked to floating interest rates. 

Source

Solution: a)

Only Statement 1 is correct.

• Multilateral development banks (MDBs) originated in the aftermath of World War II to rebuild war-ravaged nations and stabilize the global financial system.
• Today, MDBs fund infrastructure, energy, education, and environmental sustainability in developing countries.
• While commercial banks seek to make profits on loans and other financial services, the goal of MDBs is to issue grants and low-cost loans to improve the economic conditions of impoverished or developing nations.
• MDBs now operate throughout the world and control trillions of dollars in assets.
• g., International Monetary Fund, World Bank, Asian Development Bank etc.

Issues: Currently, MDBs are dominated by developed Countries (WB by USA, IMF by EU and ADB by Japan); they impose conditionality in loans; there is a lack of Transparency and Accountability.

Solution: b)

Only statement 1 and 2 is correct.

Scientists from the Indian Institute of Geomagnetism (IIG) have conducted decade-long ionospheric observations at Bharati station in Antarctica, revealing significant seasonal variations in ionospheric density.

The researchers found the peak ionospheric density near local noon during the winter months, attributing it to particle precipitation and the transportation of convectional plasma from high latitudes.

These long-term studies aim to enhance understanding of ionospheric effects on satellite-based navigation and communication systems.

The ionosphere is a layer of the Earth’s atmosphere that is made up of charged atoms, molecules, and electrons. It stretches from 50 kilometres (30 miles) to over 1,000 kilometres (600 miles) above the Earth. 

Solution: c)

Statement 2 is incorrect.

Angola leaves OPEC, a setback for the Saudi-led oil producer group.

OPEC was established in 1960 at the Baghdad Conference by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela, is an intergovernmental organization with key members including Algeria, Equatorial Guinea, Gabon, Libya, Nigeria, the Republic of the Congo, and the United Arab Emirates.

The organization’s primary objective is to coordinate and unify petroleum policies among member countries, ensuring fair and stable prices for petroleum producers and maintaining an efficient, economic, and regular supply of petroleum to consuming nations. With its headquarters in Vienna, Austria, OPEC holds significant global influence, possessing over 80% of the world’s total crude oil reserves.

Solution: d)

The number of loan accounts for the microfinance industry increased to 136.3 million in FY23, from 123.9 million in FY22, posting a year-on-year (y-o-y) growth of 10%. Lender-wise figures showed that NBFCs registered highest y-o-y growth of 23%, followed by NBFC-MFIs at 15%, not-for profits or NFPs at 6%, banks at 6%, and small finance banks at 5%.