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Daily Current Affairs
21 February, 2025
1. What was the primary reason behind the Reserve Bank of India’s (RBI) Open Market Operation (OMO) auction amidst liquidity shortages?
A) To control inflation
B) To inject durable liquidity into the banking system
C) To increase foreign exchange reserves
D) To restrict excess cash flow in the economy
E) To decrease interest rates
Answer: B) To inject durable liquidity into the banking system
Explanation: RBI conducted OMO auctions due to a prolonged liquidity deficit in the banking system for nine consecutive weeks. The central bank aims to provide long-term liquidity through bond purchases.
2. What is the maximum withdrawal limit set by RBI for New India Co-op Bank depositors under special conditions?
A) â‚ą1 lakh
B) â‚ą2 lakh
C) â‚ą3 lakh
D) â‚ą5 lakh
E) â‚ą10 lakh
Answer: D) â‚ą5 lakh
Explanation: RBI has permitted depositors of the troubled New India Co-op Bank to withdraw up to â‚ą5 lakh for medical or personal emergencies, aligning with the deposit insurance limit.
3. What is the key objective of SEBI’s proposal for fast-track Follow-on Public Offers (FPOs) for REITs and InvITs?
A) To increase the lock-in period for investors
B) To impose additional taxes on REITs and InvITs
C) To simplify and speed up the fundraising process
D) To increase government intervention in real estate investments
E) To prevent REITs and InvITs from raising further funds
Answer: C) To simplify and speed up the fundraising process
Explanation: SEBI’s proposal aims to provide easier and quicker access to capital markets for existing listed REITs and InvITs, improving liquidity and investor participation.
4. How does a Follow-on Public Offer (FPO) differ from an Initial Public Offering (IPO)?
A) FPO is issued by a company already listed on the stock exchange, whereas IPO is for new listings
B) FPO is used only for debt reduction, while IPO is for business expansion
C) IPO is restricted to institutional investors, while FPO is for retail investors only
D) FPO does not involve share dilution, whereas IPO does
E) IPO is a government-mandated process, while FPO is voluntary
Answer: A) FPO is issued by a company already listed on the stock exchange, whereas IPO is for new listings
Explanation: FPO allows an already listed company to issue additional shares to raise capital, while an IPO is the first time a company offers its shares to the public.
5. What is the major driver of economic growth in India compared to China?
A) India relies more on investment, whereas China depends on consumption
B) India relies on consumption, whereas China focuses on investment
C) Both countries depend on export-driven growth
D) India and China have identical economic growth models
E) China’s economy is purely state-controlled, while India follows a capitalist model
Answer: B) India relies on consumption, whereas China focuses on investment
Explanation: India’s GDP growth is primarily consumption-driven (~60.3%), whereas China has historically prioritized high investment (~41.3% of GDP), leading to faster per capita income growth.
6. Which of the following measures is NOT typically used by RBI to manage liquidity in the banking system?
A) Open Market Operations (OMOs)
B) Cash Reserve Ratio (CRR) adjustments
C) Variable Rate Repo (VRR) auctions
D) Fiscal policy changes
E) Foreign exchange buy-sell swaps
Answer: D) Fiscal policy changes
Explanation: Fiscal policy changes are managed by the government, not RBI. RBI primarily uses OMOs, CRR adjustments, VRR auctions, and forex swaps to control liquidity in the banking system.
7. What was a key reason for Microsoft’s launch of the Majorana 1 chip?
A) To compete with Apple’s M1 chip
B) To improve the security of banking transactions
C) To reduce errors in quantum computing
D) To create a high-performance gaming processor
E) To optimize cloud computing performance
Answer: C) To reduce errors in quantum computing
Explanation: Microsoft introduced the Majorana 1 chip to enhance quantum computing by reducing computational errors, potentially impacting AI, cryptography, and medical research.
8. What is the primary goal of the Prime Minister Internship Scheme (PMIS) Phase-2?
A) To provide free college education
B) To create employment for retired government officials
C) To provide internship opportunities for youth across various sectors
D) To train only government employees in digital skills
E) To promote self-employment instead of job-based internships
Answer: C) To provide internship opportunities for youth across various sectors
Explanation: PMIS Phase-2 expands to offer 115,000 internships across 25 sectors, collaborating with companies like ONGC, HDFC, and Reliance to upskill young professionals.
9. Why did the Supreme Court stay the Lokpal’s order on bringing High Court judges under its jurisdiction?
A) Lokpal does not have the authority to investigate judges
B) Judges have separate accountability mechanisms under the judiciary
C) The government opposed the Lokpal’s decision
D) Lokpal was dissolved by the central government
E) The order violated constitutional principles of judicial independence
Answer: B) Judges have separate accountability mechanisms under the judiciary
Explanation: The Supreme Court stayed the order, arguing that the Lokpal Act was meant for public officials, while judicial accountability falls under the judiciary’s internal oversight.
10. What is one of the major challenges India faces in achieving its $200 billion electronics export target?
A) High export tariffs in China
B) Strict environmental regulations in the US
C) Higher tariff barriers compared to competitors
D) Lack of demand for Indian electronics
E) Shortage of skilled labor in India
Answer: C) Higher tariff barriers compared to competitors
Explanation: India’s average tariff on electronics is 9%, whereas the U.S. imposes only 1%, making it difficult for Indian electronics manufacturers to compete globally.
