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Daily Current Affairs
11 March, 2025
1. Which of the following is NOT a factor contributing to China’s deflation crisis?
A) Low consumer demand
B) Oversupply of goods
C) High wage growth
D) Economic slowdown
E) External trade pressures
Answer: C) High wage growth
Explanation: China’s deflation crisis is caused by low consumer demand, oversupply of goods, economic slowdown, and external trade pressures such as U.S. tariffs. High wage growth is not a contributing factor to deflation; instead, low wages may reduce consumer spending, worsening deflation.
2. Why is India cautious about tariff reductions in trade negotiations with the U.S.?
A) India has a trade surplus with the U.S.
B) India wants to protect strategic sectors like dairy
C) The WTO has banned tariff reductions for developing nations
D) The U.S. has imposed new tariffs on Indian exports
E) The Indian government opposes all trade liberalization
Answer: B) India wants to protect strategic sectors like dairy
Explanation: While India may selectively lower tariffs (e.g., on nuts), it is cautious about reducing tariffs in strategic sectors like dairy to protect domestic producers. The WTO does not ban tariff reductions but requires compliance with MFN principles.
3. Which of the following statements about U.S. economic trends under Trump’s second term is TRUE?
A) The U.S. economy is growing at a record pace
B) The Federal Reserve has increased interest rates aggressively
C) Bond yields indicate an economic slowdown
D) The New York Fed’s Recession Probability Gauge is at an all-time low
E) The IT sector in India has benefited significantly
Answer: C) Bond yields indicate an economic slowdown
Explanation: Bond yields reflect economic trends, and a decline suggests slower growth and higher recession risks. The New York Fed’s Recession Probability Gauge indicates rising concerns, and the Indian IT sector faces challenges due to U.S. economic uncertainty.
4. What is the proposed threshold turnover for businesses that may be subject to MDR on UPI transactions?
A) ₹10 lakh
B) ₹20 lakh
C) ₹30 lakh
D) ₹40 lakh
E) ₹50 lakh
Answer: D) ₹40 lakh
Explanation: The government is considering reintroducing MDR for large merchants with a turnover above ₹40 lakh. This move aims to help banks sustain the UPI payment infrastructure.
5. What is a key reason for slow CASA (Current Account Savings Account) growth in Indian banks?
A) Customers prefer higher-interest term deposits
B) RBI has capped CASA deposits
C) Digital transactions have reduced deposit inflows
D) Foreign banks are offering better interest rates
E) Banks have stopped offering CASA accounts
Answer: A) Customers prefer higher-interest term deposits
Explanation: Due to rising interest rates, customers are shifting funds from low-interest CASA accounts to higher-yielding term deposits, leading to slower CASA growth in banks.
6. Which country became the second-largest arms exporter in the world, surpassing Russia?
A) China
B) Germany
C) France
D) Israel
E) India
Answer: C) France
Explanation: According to the SIPRI report, France surpassed Russia to become the second-largest arms exporter after the U.S., as Russia’s arms exports declined by 64%.
7. What is one of the key objectives of AI-driven models in inflation forecasting?
A) Reducing bank deposit rates
B) Increasing market speculation
C) Analyzing real-time data for better predictions
D) Replacing central banks with AI-based decision-making
E) Eliminating inflation completely
Answer: C) Analyzing real-time data for better predictions
Explanation: AI-driven models, including Large Language Models (LLMs), improve inflation forecasting by analyzing real-time data, leading to more accurate predictions and policy decisions.
8. Why has India’s arms imports declined by 9.3% between 2020 and 2024?
A) Increased domestic defense production
B) India has reduced defense spending
C) The U.S. has imposed arms sanctions on India
D) India has shifted to importing only from Russia
E) Global arms trade has declined due to peace agreements
Answer: A) Increased domestic defense production
Explanation: India has focused on strengthening its domestic defense manufacturing, reducing dependence on foreign arms imports, which led to a 9.3% decline in arms imports.
9. How does the rupee’s depreciation to 87.34 per USD impact India?
A) It makes imports cheaper
B) It boosts foreign exchange reserves
C) It reduces RBI’s need for intervention
D) It increases import costs, leading to inflation
E) It strengthens the Indian economy
Answer: D) It increases import costs, leading to inflation
Explanation: A weaker rupee makes imports (such as crude oil) more expensive, contributing to inflation. The RBI may intervene to stabilize volatility, but foreign investor outflows limit appreciation.
10. What is the proposed “health tax” mentioned in the Economic Survey 2025?
A) A tax on sugary beverages
B) A tax on high-fat dairy products
C) A tax on ultra-processed foods (UPFs)
D) A tax on pharmaceutical products
E) A tax on gym memberships
Answer: C) A tax on ultra-processed foods (UPFs)
Explanation: The Economic Survey 2025 suggests imposing a health tax on ultra-processed foods (UPFs) to tackle rising obesity and diabetes in India, inspired by models like Chile’s “high-in” warning labels.
