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Daily Current Affairs
04 & 05 March, 2026
1. Which of the following best describes the strategic importance of the Strait of Hormuz?
A. It connects the Mediterranean Sea with the Atlantic Ocean
B. It connects the Red Sea with the Gulf of Aden
C. It serves as a major maritime route for global oil and LNG shipments from the Persian Gulf
D. It links the Arctic Ocean with the Pacific Ocean
E. It connects the Caspian Sea with the Black Sea
Answer: C. It serves as a major maritime route for global oil and LNG shipments from the Persian Gulf
Explanation: The Strait of Hormuz is one of the world’s most critical energy chokepoints. A large share of global oil and LNG exports from the Persian Gulf pass through this narrow maritime passage before reaching international markets.
2. The Strait of Hormuz lies between which two countries?
A. Iran and Saudi Arabia
B. Iran and Oman
C. Iraq and Kuwait
D. Qatar and Bahrain
E. Oman and Yemen
Answer: B. Iran and Oman
Explanation: The Strait of Hormuz is located between Iran to the north and Oman to the south. It connects the Persian Gulf with the Gulf of Oman and ultimately the Arabian Sea, making it strategically vital for global trade and energy transport.
3. Under the recommendations of the 16th Finance Commission (2026–31), what percentage of the divisible tax pool has been allocated to states?
A. 35%
B. 38%
C. 41%
D. 45%
E. 50%
Answer: C. 41%
Explanation: The 16th Finance Commission retained the states’ share in the divisible pool of central taxes at 41%, continuing the arrangement recommended earlier by the 15th Finance Commission.
4. Which of the following criteria was newly introduced in the horizontal devolution formula by the 16th Finance Commission?
A. Fiscal Discipline
B. Demographic Performance
C. Contribution to GDP
D. Tax Effort
E. Population Growth Rate
Answer: C. Contribution to GDP
Explanation: The 16th Finance Commission introduced “Contribution to GDP” with a weight of 10% as a new parameter in the horizontal devolution formula, replacing earlier parameters such as tax effort or fiscal discipline.
5. The National Mobile Monitoring System (NMMS) application is primarily used in the implementation of which government scheme?
A. Pradhan Mantri Awas Yojana
B. Mahatma Gandhi National Rural Employment Guarantee Scheme
C. National Rural Livelihood Mission
D. Jal Jeevan Mission
E. PM Kisan Samman Nidhi
Answer: B. Mahatma Gandhi National Rural Employment Guarantee Scheme
Explanation: The National Mobile Monitoring System (NMMS) app is used under MGNREGS to record worker attendance, upload geotagged photos of worksites, and improve transparency in wage payments.
6. The Dusky Eagle-Owl belongs to which bird family?
A. Accipitridae
B. Falconidae
C. Strigidae
D. Anatidae
E. Columbidae
Answer: C. Strigidae
Explanation: The Dusky Eagle-Owl (Ketupa coromanda) is a large bird of prey belonging to the owl family Strigidae and is found across South and Southeast Asia.
7. The Insurance Regulatory and Development Authority of India (IRDAI) has proposed shifting insurers from IGAAP to which accounting framework?
A. US GAAP
B. IFRS directly
C. Ind AS
D. Basel III Accounting Framework
E. GAAP-Lite
Answer: C. Ind AS
Explanation: IRDAI has proposed that insurers transition from Indian Generally Accepted Accounting Principles (IGAAP) to Indian Accounting Standards (Ind AS), which are aligned with International Financial Reporting Standards (IFRS).
8. Under SEBI’s revised mutual fund categorisation norms, the portfolio overlap between thematic or sectoral funds and other equity schemes is capped at:
A. 25%
B. 40%
C. 50%
D. 60%
E. 75%
Answer: C. 50%
Explanation: SEBI has capped portfolio overlap at 50% to ensure meaningful differentiation between mutual fund schemes and prevent asset management companies from launching multiple funds with similar portfolios.
9. A Certificate of Deposit (CD) is best described as:
A. A long-term capital market instrument issued by governments
B. A short-term money market instrument issued by banks
C. A government bond issued for infrastructure financing
D. A derivative instrument traded on stock exchanges
E. A savings certificate issued to retail investors
Answer: B. A short-term money market instrument issued by banks
Explanation: Certificates of Deposit (CDs) are short-term money market instruments issued by banks to raise funds from institutional investors. Their maturity period typically ranges from 7 days to 1 year.
10. The Reserve Bank of India requires banks to maintain a minimum Liquidity Coverage Ratio (LCR) of:
A. 75%
B. 90%
C. 100%
D. 110%
E. 120%
Answer: C. 100%
Explanation: The Liquidity Coverage Ratio (LCR) ensures that banks hold enough high-quality liquid assets to meet their short-term obligations during a 30-day stress scenario. RBI mandates a minimum LCR of 100%.
