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Daily Current Affairs
7 February, 2025
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1. What is the primary goal of India’s ethanol blending program?
A) Reduce vehicle emissions
B) Increase sugar production
C) Reduce crude oil imports
D) Improve groundwater quality
E) Promote electric vehicles
Answer: C) Reduce crude oil imports
Explanation: The ethanol blending program aims to reduce India’s dependence on crude oil imports by mixing ethanol with petrol. The government targets 25% blending (E25) by 2026-27, leading to foreign exchange savings and a decrease in crude oil consumption.
2. Which Indian government body developed the Pinaka Multiple Rocket Launch System (MRLS)?
A) Bharat Electronics Limited
B) Hindustan Aeronautics Limited
C) Defence Research and Development Organisation (DRDO)
D) Indian Ordnance Factories
E) Larsen & Toubro
Answer: C) Defence Research and Development Organisation (DRDO)
Explanation: The Pinaka MRLS was developed by DRDO and is a key artillery system of the Indian Armed Forces. It has a range of 45 km and was effectively used during the Kargil War.
3. What is the significance of Chabahar Port for India?
A) It is a major naval base for India’s maritime security
B) It provides India a direct trade route to Afghanistan and Central Asia
C) It serves as an oil supply hub for India
D) It is India’s first deep-sea port
E) It is a joint military base between India and Iran
Answer: B) It provides India a direct trade route to Afghanistan and Central Asia
Explanation: Chabahar Port in Iran helps India bypass Pakistan and access Afghanistan and Central Asia. It also counters China’s influence in the region and reduces cargo transportation costs.
4. What is the fiscal deficit target for India in FY 2025-26?
A) 3.5%
B) 4.0%
C) 4.4%
D) 5.2%
E) 6.0%
Answer: C) 4.4%
Explanation: The Indian government has set a fiscal deficit target of 4.4% for FY 2025-26, improving from the previous estimate of 4.5%. This aims to control government borrowing and maintain financial stability.
5. Which financial measure is used by banks to determine the minimum interest rate they can charge on loans?
A) Base Rate
B) Reverse Repo Rate
C) Repo Rate
D) Marginal Cost of Funds-based Lending Rate (MCLR)
E) Statutory Liquidity Ratio (SLR)
Answer: D) Marginal Cost of Funds-based Lending Rate (MCLR)
Explanation: MCLR is the minimum lending rate set by banks, factoring in their cost of funds and statutory requirements. Banks adjust MCLR-linked loans to manage profitability amid changing interest rates.
6. Why is India considering shifting away from green bonds?
A) High default risks
B) Declining foreign investments
C) Modest returns compared to traditional financing
D) Government policy shift towards fossil fuels
E) Lack of regulatory support
Answer: C) Modest returns compared to traditional financing
Explanation: Although green bonds help finance eco-friendly projects, their returns are often lower than traditional financial instruments, prompting India to reconsider its issuance strategy.
7. What is the primary benefit of appointing ad-hoc judges in Indian High Courts?
A) To replace permanent judges
B) To reduce case backlog
C) To introduce international legal expertise
D) To limit judicial interference in executive matters
E) To reduce government expenditure
Answer: B) To reduce case backlog
Explanation: The Supreme Court allowed the appointment of retired judges as ad-hoc judges under Article 224(A) to address the backlog of over 62 lakh pending cases in High Courts.
8. What is the primary reason behind the U.S. foreign aid freeze under Trump’s administration?
A) Budget constraints
B) Inefficiencies and ideological opposition in US-AID
C) Increased military spending
D) Focus on domestic social programs
E) Poor economic performance of recipient countries
Answer: B) Inefficiencies and ideological opposition in US-AID
Explanation: Trump’s administration cited inefficiencies and ideological issues in US-AID as reasons for halting foreign aid. This move disrupted global health, education, and humanitarian projects.
9. What is the impact of the RBI’s repo rate cut from 6.5% to 6.25%?
A) Higher borrowing costs
B) Slower economic growth
C) Increase in inflation risks
D) Decline in banking profitability
E) Strengthening of the Indian Rupee
Answer: C) Increase in inflation risks
Explanation: A lower repo rate reduces borrowing costs, boosting economic activity. However, it may also lead to inflationary pressures if excess liquidity drives up demand.
10. Under what conditions is rural agricultural land exempt from capital gains tax in India?
A) If the land is within 10 km of a city
B) If it is owned for at least 10 years
C) If it is outside municipal limits and meets population criteria
D) If it is transferred to a cooperative society
E) If it is used for commercial farming
Answer: C) If it is outside municipal limits and meets population criteria
Explanation: Rural agricultural land is tax-exempt if it is beyond a certain distance from municipal limits and located in an area with a low population density. Urban agricultural land, however, is subject to capital gains tax.
