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Daily Current Affairs
16 January, 2025
1. What was the primary goal of RBI introducing Variable Rate Repo (VRR) auctions?
A) To increase inflation
B) To reduce repo rates permanently
C) To manage liquidity tightness
D) To stabilize currency exchange rates
E) To promote foreign investments
Answer: C) To manage liquidity tightness
Explanation: The VRR auctions are conducted by the RBI to address liquidity tightness in the banking system and ensure smooth financial system operations.
2. Why did India shift to a pegged exchange rate system against the U.S. dollar in 2022?
A) To boost exports
B) To stabilize the rupee and control inflation
C) To increase currency competitiveness
D) To attract foreign direct investment
E) To enhance global trade relations
Answer: B) To stabilize the rupee and control inflation
Explanation: The pegged exchange rate system was adopted to stabilize the rupee amidst rising inflation and ensure economic stability, though it had trade-offs like reduced export competitiveness.
3. What is the main challenge associated with merchandise trade deficits?
A) Increased foreign currency reserves
B) Decreased domestic production
C) Vulnerability to global economic shocks
D) Decreased foreign direct investments
E) Increased exports
Answer: C) Vulnerability to global economic shocks
Explanation: A trade deficit indicates that imports exceed exports, making the economy reliant on foreign goods and susceptible to global economic changes.
4. What is a key benefit of Permaculture Farming?
A) Increased reliance on chemical fertilizers
B) Improved soil health and environmental conservation
C) Dependence on monoculture farming
D) Maximized short-term yields
E) Reduced biodiversity
Answer: B) Improved soil health and environmental conservation
Explanation: Permaculture farming uses sustainable practices like organic fertilizers and mulching, which enhance soil health and protect the environment.
5. Which script is being demanded for Kokborok textbooks in Tripura?
A) Devanagari
B) Bengali
C) Roman
D) Tamil
E) Cyrillic
Answer: C) Roman
Explanation: Tribals in Tripura are advocating for the Roman script for Kokborok textbooks due to its digital compatibility and ease of use.
6. What led to the Assam coal mining tragedy?
A) Industrial dispute
B) Government inaction
C) Illegal rat-hole mining practices
D) Flooding in open-pit mines
E) Lack of mining technology
Answer: C) Illegal rat-hole mining practices
Explanation: The tragedy was caused by flooding in illegal rat-hole mines, which are hazardous and environmentally damaging.
7. What was a key feature of the INSIMP program?
A) Promotion of wheat production
B) Focus on rice over millet
C) Development of post-harvest technologies for millets
D) Import subsidies for millet
E) Prohibition of traditional farming methods
Answer: C) Development of post-harvest technologies for millets
Explanation: INSIMP aimed to enhance millet production, create awareness, and develop better post-harvest technologies.
8. How does a flexible exchange rate benefit the economy?
A) Fixes the value of the currency
B) Reduces currency risks entirely
C) Aligns currency value with market forces
D) Ensures a stable international trade environment
E) Minimizes inflation volatility
Answer: C) Aligns currency value with market forces
Explanation: A flexible exchange rate allows the currency to adjust based on demand and supply, helping in inflation control and balancing reserves.
9. What was the aim of the Calcutta Illumination Project?
A) Boost the city’s industrial output
B) Illuminate heritage buildings with LED lights
C) Replace old structures with modern buildings
D) Promote tourism with holographic shows
E) Construct new urban centers in Kolkata
Answer: B) Illuminate heritage buildings with LED lights
Explanation: This project sought to beautify Kolkata by lighting 125 heritage buildings, preserving its history and fostering civic pride.
10. What is a potential drawback of pegged exchange rates?
A) Increased currency volatility
B) Decreased export competitiveness
C) Enhanced inflation rates
D) Reduced domestic production
E) Higher dependency on foreign aid
Answer: B) Decreased export competitiveness
Explanation: Pegged exchange rates stabilize the currency but can reduce competitiveness by making exports more expensive compared to other countries.
