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Daily Current Affairs
26 February, 2025
1. What is a key demand from the European Union (EU) in the India-EU Free Trade Agreement (FTA) negotiations?
A) Lower tariffs on Indian textiles
B) Tariff reductions on cars, wines, and spirits
C) More export subsidies for Indian farmers
D) Exclusive trade rights for European companies
E) Increased restrictions on pharmaceutical imports
Answer: B) Tariff reductions on cars, wines, and spirits
Explanation: The EU seeks tariff reductions from India on high-value exports like cars, wines, and spirits, while India is negotiating better access for its pharmaceutical, IT services, and agricultural products.
2. Why has India recorded the highest number of internet shutdowns globally?
A) Cybersecurity threats from China
B) Government-imposed restrictions during protests and communal violence
C) Overloaded internet infrastructure
D) High internet costs leading to service suspensions
E) Election-related cybercrime prevention
Answer: B) Government-imposed restrictions during protests and communal violence
Explanation: India has frequently used internet shutdowns to control law and order, particularly during protests and communal tensions. However, the Supreme Court has emphasized that such shutdowns must meet necessity and proportionality tests.
3. What is a major environmental concern related to AI growth?
A) Excessive water consumption in AI research labs
B) High energy consumption from data centers
C) Increased plastic waste from AI-powered devices
D) Depletion of rare metals due to AI chip production
E) Rising COâ‚‚ emissions from AI-powered transportation
Answer: B) High energy consumption from data centers
Explanation: AI requires massive computational power, leading to high energy consumption in data centers, contributing to environmental concerns. Sustainable solutions include switching to renewable energy and optimizing hardware efficiency.
4. What is the significance of Ultra Conserved Elements (UCEs) in genetics?
A) They regulate protein production and impact evolutionary stability
B) They are junk DNA with no known function
C) They are responsible for faster aging in humans
D) They cause mutations that increase intelligence
E) They help in the production of white blood cells
Answer: A) They regulate protein production and impact evolutionary stability
Explanation: UCEs are DNA segments that remain unchanged for millions of years. They act as “poison exons,” playing a critical role in regulating protein production and maintaining genetic stability.
5. Why is the Indian government planning to reduce its stake in five public sector banks (PSBs)?
A) To privatize these banks completely
B) To comply with SEBI’s 25% minimum public shareholding (MPS) norm
C) To merge them into a single national bank
D) To reduce the number of banks in India
E) To increase foreign investment in public banks
Answer: B) To comply with SEBI’s 25% minimum public shareholding (MPS) norm
Explanation: The government aims to disinvest up to 20% in certain PSBs to meet SEBI’s requirement that at least 25% of a listed company’s shares be held by the public by August 2026.
6. What was the reason for RBI reversing its decision to increase risk weights on NBFC loans?
A) Strong opposition from private banks
B) Declining credit growth and slower bank lending to NBFCs
C) Increased foreign direct investment in NBFCs
D) High profits in the NBFC sector
E) NBFCs requesting a bailout package from the government
Answer: B) Declining credit growth and slower bank lending to NBFCs
Explanation: RBI initially increased risk weights on NBFC loans to reduce financial risks, but it later reversed the decision as it negatively impacted credit growth and funding to NBFCs.
7. Why are governance issues persisting in Urban Cooperative Banks (UCBs)?
A) Lack of customer base
B) Political interference and weak internal controls
C) Inability to provide loans
D) Excessive government regulations
E) Rapid adoption of new technologies
Answer: B) Political interference and weak internal controls
Explanation: Many UCBs suffer from governance issues, including financial frauds and weak internal controls, despite RBI’s regulatory efforts. Political interference and outdated technology also contribute to these problems.
8. What is the purpose of SEBI tightening rules for equity and index derivatives?
A) To encourage more retail investors in derivatives
B) To increase speculation in the market
C) To reduce volatility and improve risk management
D) To make derivatives trading more complex
E) To eliminate the use of stock market derivatives entirely
Answer: C) To reduce volatility and improve risk management
Explanation: SEBI introduced new restrictions, including position limits and stricter eligibility criteria, to curb excessive speculation and align derivatives trading with stock fundamentals.
9. Why is Tata Capital planning a $1.7 billion IPO?
A) To expand its manufacturing operations
B) To comply with RBI’s listing requirement for NBFCs
C) To enter the international banking market
D) To acquire other financial companies
E) To diversify into the e-commerce sector
Answer: B) To comply with RBI’s listing requirement for NBFCs
Explanation: RBI has mandated large NBFCs to list on the stock exchange to improve transparency and governance. Tata Capital’s IPO will strengthen its capital base and market position.
10. What has caused the recent depreciation of the Indian Rupee?
A) Strong RBI intervention in the forex market
B) Higher foreign investments in India
C) Increased dollar demand from importers and RBI’s offshore settlements
D) Reduction in crude oil prices
E) Government policy to weaken the Rupee for trade benefits
Answer: C) Increased dollar demand from importers and RBI’s offshore settlements
Explanation: The Indian Rupee has depreciated due to increased dollar demand from importers and limited RBI intervention in offshore forward contract settlements.
