Got Questions? We’ve Got Answers!
đź“š Whether it’s about exams, career advice, or daily doubts, don’t hesitate—ask away!
đź’ˇ Daily Current Affairs Quiz | Daily Quiz for UPSC
đź’ˇ Your Learning Partner Is Just a Click Away!
👉 Click here to Ask Your Question Now and get clear, reliable answers from experts.
Daily Current Affairs
8 February, 2025
🚨 AIC Crash Course 2025 Launched Today! 🚨
Designed to fast-track your preparation and help you achieve success! 🎯
👉 Limited Time Offer at 599/- – Use Coupon Code AICCLARITY99 Don’t Miss Out!
Enroll NOW and take the first step towards acing the exam! 🚀
1. By how much did the RBI cut the repo rate, and what were the reasons behind the decision?
A) 0.25% – To boost investment and credit flow
B) 0.50% – To control inflation
C) 0.75% – To reduce fiscal deficit
D) 1.00% – To support export growth
E) No change in repo rate
Answer: A) 0.25% – To boost investment and credit flow
Explanation: The RBI reduced the repo rate by 0.25% to enhance liquidity in the banking system, encourage lending, and support economic growth. Lower repo rates make loans cheaper for businesses and individuals, thus boosting investment.
2. What is the main objective of the RBI’s new Liquidity Coverage Ratio (LCR) regulation?
A) To improve bank profitability
B) To ensure banks maintain adequate liquid assets during financial stress
C) To increase interbank lending rates
D) To promote digital banking services
E) To discourage short-term borrowing
Answer: B) To ensure banks maintain adequate liquid assets during financial stress
Explanation: The LCR rule requires banks to maintain a buffer of highly liquid assets to survive short-term financial stress situations. It ensures that banks can handle sudden cash outflows without affecting stability.
3. What impact does a reduction in the repo rate have on the economy?
A) It increases the cost of borrowing
B) It decreases credit availability
C) It encourages borrowing and investment
D) It reduces inflation immediately
E) It leads to higher fiscal deficits
Answer: C) It encourages borrowing and investment
Explanation: A lower repo rate reduces the cost of borrowing for businesses and individuals, leading to increased credit flow, higher investments, and economic growth.
4. Which formula is used to calculate the Liquidity Coverage Ratio (LCR)?
A) (Total Loans / Total Deposits) Ă— 100
B) (High-Quality Liquid Assets / Total Net Cash Outflows) Ă— 100
C) (Total Liabilities / Total Assets) Ă— 100
D) (Net Profit / Total Revenue) Ă— 100
E) (Cash Reserves / Total Borrowings) Ă— 100
Answer: B) (High-Quality Liquid Assets / Total Net Cash Outflows) Ă— 100
Explanation: The LCR ensures banks have sufficient high-quality liquid assets to meet their short-term financial obligations. It is calculated by dividing liquid assets by net cash outflows over 30 days.
5. What are the components of Expected Credit Loss (ECL)?
A) Current Loan Balance, Reserves, Capital Adequacy Ratio
B) Probability of Default, Loss Given Default, Exposure at Default
C) Interest Rate, Repo Rate, Inflation Rate
D) Revenue, Expenses, Net Profit
E) Loan Growth, Asset Turnover, Return on Equity
Answer: B) Probability of Default, Loss Given Default, Exposure at Default
Explanation: The Expected Credit Loss (ECL) is calculated based on three factors: Probability of Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD). It helps banks estimate potential losses on loans.
6. What changes has the RBI made regarding the NDS-OM platform?
A) Restricted it only to institutional investors
B) Allowed retail investors to participate in government securities
C) Increased transaction fees for trading
D) Removed bond trading options
E) Introduced a new digital-only format for transactions
Answer: B) Allowed retail investors to participate in government securities
Explanation: The RBI has opened the NDS-OM platform to retail investors, allowing them to directly trade government securities, making bond investments more accessible to individuals.
7. What are the key objectives of the new Income Tax Bill?
A) Increase tax rates for all income groups
B) Simplify tax laws and reduce litigation
C) Introduce a new wealth tax
D) Eliminate all indirect taxes
E) Reduce government spending on subsidies
Answer: B) Simplify tax laws and reduce litigation
Explanation: The new Income Tax Bill aims to make tax compliance easier, reduce ambiguities, and minimize disputes by simplifying tax laws.
8. What is the focus of biomanufacturing under the BioE3 policy?
A) Expansion of traditional agriculture
B) Production of biotech-based sustainable products
C) Increasing the use of chemical fertilizers
D) Restricting biotech research to pharmaceuticals
E) Reducing food exports to maintain domestic supply
Answer: B) Production of biotech-based sustainable products
Explanation: The BioE3 policy promotes biomanufacturing in various sectors such as healthcare, agriculture, and industrial products to enhance sustainability and innovation.
9. How can states benefit from early adoption of biomanufacturing policies under the BioE3 initiative?
A) By receiving more foreign direct investment
B) By getting priority access to central government funds
C) By increasing agricultural subsidies
D) By restricting biotech imports
E) By reducing the dependency on traditional energy sources
Answer: B) By getting priority access to central government funds
Explanation: States that adopt biomanufacturing early under the BioE3 initiative can benefit from central government incentives, funding, and support for infrastructure development.
10. What recommendation did the DRPSC make regarding the PM-Kisan scheme?
A) To increase the annual financial support to farmers
B) To reduce the number of beneficiaries
C) To replace direct cash transfers with subsidies
D) To increase the eligibility criteria for farmers
E) To eliminate the scheme and replace it with another
Answer: A) To increase the annual financial support to farmers
Explanation: The Department-Related Parliamentary Standing Committee (DRPSC) recommended increasing the financial assistance under PM-Kisan to provide better support to farmers.
