Current Affairs Quiz 2 and 3 August

Current Affairs MCQs [ 2nd and 3rd August 2017 ] PIB TheHindu IndianExpress & Other leading newspapers

Sumant Kumar, B.Tech NIT Allahabad sumant.magadh@gmail.com

Lok Sabha passes NABARD (Amendment) Bill, 2017 Consider the following statements regarding National Bank for Agriculture and Rural Development (Amendment) Bill, 2017 1. The Bill seeks to amend the NABARD Act, 1981. 2. The Bill allows Union Government to decrease the capital of NABARD 3. The Bill provides that the Union Government alone must hold at least 51% capital share

of NABARD. Select the correct answer using the code given below. (a) 1 only

(b) 1 and 3 only (c) 1 and 2 only (d) 1, 2 and 3 Ans (b) 1 and 3 only The Bill allows Union Government to increase capital of NABARD to Rs 30,000 crore from Rs. 5000 crore. Consider the following statements regarding NABARD 1. It is an apex development bank in India. 2. Private players holds the majority stake in

it. 3. It is Headquartered in

Mumbai(Maharashtra) 4. It was established in 1982 on the

recommendations of Shivaraman Committee to implement the National Bank for Agriculture and Rural Development Act, 1981.

Select the correct answer using the code given below. (a) 1 and 2 only (b) 2 and 4 only (c) 1, 2 and 4 only (d) 1, 3 and 4 only Ans (d) 1, 3 and 4 only

The RBI holds the majority stake in it. Mandate: 1. Facilitate credit flow

for promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts.

2. Support all other allied economic activities in rural areas, promote integrated and sustainable rural development and secure prosperity of rural areas.

Consider the following statements regarding National Bank for Agriculture and Rural Development (Amendment) Bill, 2017 : 1. The Bill transfers share capital held by

the RBI valued at Rs 20 crore to the Union Government.

2. It allows NABARD to provide financial assistance to banks if they provide loans to the MSMEs.

Which of the statements given above is/are correct? (a) 1 only

Currently RBI holds 0.4% of the paid-up capital of NABARD and the remaining 99.6% is held by the Union government and this causes conflict in the RBI’s role as banking regulator and shareholder in NABARD.

(b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Ans C

Lok Sabha passes Banking Regulation (Amendment) Bill, 2017 Consider the following statements regarding The Banking Regulation (Amendment) Bill, 2017 1. It will replace the Banking Regulation

(Amendment) Ordinance, 2017. 2. The bill seeks to amend the Banking

Regulation Act, 1949 to insert provisions for handling cases related to stressed assets or non-performing assets (NPAs) of banks.

Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Ans C

Stressed assets (NPAs) are loans defaulted by borrower in repayment or the loan which has been restructured by changing the repayment schedule. Power to Issue Ordinance ?? To whom Under which Articles of the ©

Consider the following statements regarding The Banking Regulation (Amendment) Bill, 2017 1. It will enable the Central government to

authorize the RBI to direct banking companies to resolve specific stressed assets by initiating insolvency resolution process.

2. These proceedings will be under the Insolvency and Bankruptcy Code, 2016.

3. It empowers RBI to issue directions to banks for resolution of stressed assets from time to time.

Select the correct answer using the code given below. (a) 1 only (b) 2 and 3 only (c) 1 and 2 only (d) 1, 2 and 3 Ans (d) 1, 2 and 3

Need for Amendment • Non-performing assets (NPAs) or

bad loans of banks have risen to over Rs. 9 lakh crore resulting in choking the banking system.

• So it had become necessary for the RBI to intervene in order to take urgent measures for their speedy resolution.

Israel launches first environmental research satellite Venus • नाम है Venus (Vegetation and Environment Monitoring New Micro-Satellite).

• It is a joint venture between the Israel Space Agency (ISA) and its French counterpart CNES.

Consider the following statements regarding Venus(the satellite) 1. The Venus satellite is an earth-observation micro-satellite. 2. Venus satellite will be used to survey and monitor large areas to study soil, vegetation,

forests, agriculture, water and air quality and other aspects of the environment. 3. It will help to obtain high-resolution photographs of specific sites to track environmental

issues such as erosion, desertification, pollution, natural disasters, and other phenomena linked to climate change.

Select the correct answer using the code given below. (a) 1 only (b) 2 and 3 only (c) 1 and 2 only (d) 1, 2 and 3 Ans (d) 1, 2 and 3 BRICS nations vow to fight protectionism Which of the following is/are not the member of BRICS 1. India 2. Pakistan 3. Brazil, 4. Russia, 5. China 6. South Africa

Options : A) 2 and 3 B) 2 only C) 1 2 3 4 D) 2 and 6 Consider the following statements regarding BRICS 1. It was established in 2009 as BRIC. 2. The BRICS countries are home to

42% of the world’s population.

Consider the following statements regarding BRICS 1. In 2011, South Africa joined

this informal group and BRIC became BRICS.

3. They all developing or newly industrialised countries and all five are G-20 members.

Select the correct answer using the code given below. (a) 1 only (b) 2 and 3 only (c) 1 and 2 only (d) 1, 2 and 3 Ans (d) 1, 2 and 3

2. The first formal BRICS summit was held in Yekaterinburg, Russia in 2009.

Which of the statements given above is/are incorrect? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Ans D

Union Cabinet clears proxy voting for NRIs The Union Cabinet has cleared a proposal to extend proxy voting to Non-Resident Indians (NRIs) and overseas Indians. Consider the following statements regarding Proxy Voting in India 1. Currently, service personnel and OCI cardholders are

permitted to vote through proxy. 2. This decision will enable nearly 16 million NRIs to cast

vote their in Indian elections (assembly and Lok Sabha elections) by appointing proxies residing in their constituencies.

Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Ans (b) 2 only Currently, only service personnel are permitted to vote through proxy.

• Overseas electors will have to appoint a nominee afresh for each election — one person can act as proxy for only one overseas voter.

• Government (Election Commission) will frame suitable rules and guidelines to make this move effective soon.

Expert committee Recommendation An expert committee in the Election Commission of India (ECI) working on the issue in 2015 had forwarded the legal framework to the Union Law ministry to amend electoral laws to allow overseas Indians use proxy voting. Why grant facility of Proxy Voting to NRIs 1. By granting them proxy voting rights, NRIs will be able to exercise franchise

during elections and also need not to spend foreign currency to come to India during elections.

2. This decision will also enable NRIS and overseas Indian to considerably sway in election results, especially in states such as Punjab, Kerala and Gujarat where a number of expats hail from.

3. Both 4. None of the Above

Ans C SEBI constitutes TK Viswanathan committee on fair market conduct Consider the following statements regarding T K Viswanathan Committee 1. It has been setup by Market regulator

Securities and Exchange Board of India (SEBI) 2. It is a committee on ‘fair market

conduct’. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Ans C The committee will suggest measures for improving surveillance of the markets and strengthen rules for algorithm trades, among other norms.

Terms and Reference of Committee The committee will suggest measures for improvement in • PFTUP (Prohibition of Fraudulent and

Unfair Trade Practices) regulations,

• PIT (Prohibition of Insider Trading) norms and

• norms mainly related to ‘trading plans’ and handling of ‘unpublished price sensitive information’ during takeovers.

Consider the following statements regarding Securities and Exchange Board of India (SEBI) 1. SEBI is the statutory regulator for the

securities market in India 2. It was established in 1988. 3. It was given statutory powers through the

SEBI Act, 1992. Select the correct answer using the code given below. (a) 1 only (b) 2 and 3 only (c) 1 and 2 only (d) 1, 2 and 3 Ans (d) 1, 2 and 3

Its mandate is to • protect the interests of

investors in securities,

• promote the development of securities market and

• regulate the securities market.

Money Market??

SEBI is responsive to needs of three groups : 1. the market, 2. issuers of securities, 3. investors and

market intermediaries.

It has three functions 1. quasi-legislative (drafts regulations in its

legislative capacity), 2. quasi-judicial (passes rulings and orders in its

judicial capacity) and 3. quasi-executive (conducts investigation and

enforcement action in its executive function). Cabinet approves MoU to set up BRICS Agriculture Research Platform ‘BRICS-ARP’ will a) Help achieve gender equality b) Promote sustainable use of marine resources c) Ensure access to affordable, sustainable and modern energy for all d) Address the issue of inequality between farmers’ and non-farmers’ income Solution: d. Consider the following statements regarding The BRICS Agriculture Research Platform (BRICS-ARP). 1. The BRICS-ARP will promote sustainable agricultural

development and poverty alleviation through strategic cooperation in agriculture to provide food security in the BRICS member countries.

2. BRICS-ARP will serve as a global platform for science-led agriculture-based sustainable development for addressing the issues of world hunger, under-nutrition, poverty and inequality (between farmers’ and non-farmers’ income) and enhancing agricultural trade, climate resilient agriculture and bio-security.

Which of the statements given above is/are incorrect? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2Ans D

The establishment of BRICS-ARP was proposed by Prime Minister Narendra Modi during the 7th BRICS Summit held in July 2015 at Ufa, Russia. MoU on establishment of this platform was signed by the foreign Ministers of BRICS countries in the 8th BRICS Summit held in October, 2016 at Goa, India. • It will further intensify

cooperation among BRICS countries in

o agricultural research policy, o science and technology,

o innovation and capacity building, including technologies for small-holder farming in the BRICS countries

Indian Army develops Humraaz app for soldiers to track promotions, postings Consider the following statements regarding Humraaz mobile application 1. It has been developed by The Indian Army

2. Serving soldiers can track details like postings and promotions. 3. The app will also enable soldiers to view their monthly salary slips, Form 16

and also download them. Select the correct answer using the code given below. (a) 1 only (b) 2 and 3 only (c) 1 and 2 only (d) 1, 2 and 3 Ans (d) 1, 2 and 3 The Monetary Policy Committee (MPC) of the RBI has reduced short-term lending rate, or repo rate, by 25 basis points to 6%. Consider the following statements regarding Repo rate 1. It is the rate at which RBI lends to its clients

generally against government securities. 2. It was reduced by 25 basis points to 6%. 3. The rate cut comes after a slump in food

prices in consumer inflation to a record low of 1.54%.

Select the correct answer using the code given below. (a) 1 only (b) 2 and 3 only (c) 1 and 2 only (d) 1, 2 and 3 Ans (d) 1, 2 and 3

Consider the following statements regarding Reverse Repo Rate 1. It is the rate at which

banks lend funds to the RBI. 2. It was reduced by 25

bps to 5.75%. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Ans C

Consider the following statements regarding Marginal Standing Facility (MSF) Rate

Consider the following statements regarding Bank Rate

1. It is rate at which the scheduled banks can borrow funds overnight from RBI against government securities.

2. It is a very short term borrowing scheme for scheduled banks.

3. It adjusted to 6.25%. Select the correct answer using the code given below. (a) 1 only (b) 2 and 3 only (c) 1 and 2 only (d) 1, 2 and 3 Ans (d) 1, 2 and 3

1. It is rate charged by the central bank for lending funds to commercial banks.

2. It was set to 6.25%. 3. Higher bank rate will

translate to higher lending rates by the banks.

Select the incorrect statements using the code given below. (a) 1 only (b) 2 and 3 only (c) 1 and 2 only (d) 1, 2 and 3 (e) None of the above Ans (E)

Consider the following statements regarding Cash Reserve Ratio (CRR) 1. It is the amount of funds that

the banks have to keep with the RBI. 2. It was unchanged at 4%. 3. The RBI uses the CRR to drain

out excessive money from the system. Select the correct answer using the code given below. (a) 1 only (b) 2 and 3 only (c) 1 and 2 only (d) 1, 2 and 3 Ans (d) 1, 2 and 3

Consider the following statements regarding Statutory Liquidity Ratio (SLR) 1. It was unchanged 20% 2. It is amount that banks have to

maintain a stipulated proportion of their net demand and time liabilities (NDTL) in the form of liquid assets like cash, gold and unencumbered securities, treasury bills, dated securities etc.

Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Ans C

Consider the following statements regarding Monetary Policy Committee (MPC) 1. MPC is a committee of the central bank — Reserve Bank of India 2. It is headed by the Finance Minister. 3. It was set up by amending the RBI Act to provide for a statutory and

institutionalised framework for MPC. Select the correct answer using the code given below. (a) 1 only (b) 1 and 3 only (c) 1 and 2 only (d) 1, 2 and 3 Ans (B) It is headed by RBI Governor. Consider the following statements regarding Monetary Policy Committee (MPC) 1. It is a 6 member body 2. MPC is entrusted with the task of fixing the

benchmark policy interest rate (repo rate) to contain inflation within the target level.

3. The majority voice of the committee will be final in deciding the interest rates.

4. Each member has one vote and governor has casting vote in case of tie.

Select the correct answer using the code given below. (a) 1 and 4 only (b) 2 and 3 only (c) 1, 3 and 4 only (d) 1, 2, 3 and 4 Ans D

Composition of MPC includes 1. Governor of RBI (ex

officio Chairperson), 2. Deputy Governor of

RBI, in charge of Monetary Policy (Member),

3. one officer of RBI (Member) and

4. three members appointed by Central Government as members.

World Bank has allowed India to construct Kishanganga, Ratle hydroelectric power facilities on tributaries of the Jhelum and Chenab rivers with certain restrictions under the 1960 Indus Waters Treaty (IWT). • Pakistan had opposed the construction of the Kishanganga (Jhelum River) and Ratle (Chenab

River) hydroelectric power plants built by India in Jammu and Kashmir.

Consider the following statements regarding Indus Waters Treaty (IWT) 1. IWT is a water-distribution treaty between

India and Pakistan 2. It was brokered by the UN

It was signed by then Prime Minister Jawaharlal Nehru and President of Pakistan Ayub Khan in Karachi on September 19, 1960. It is most successful water treaty in world.

3. It deals with sharing of water of Indus water system having six rivers — Beas, Ravi, Sutlej, Indus, Chenab and Jhelum between the two countries.

Select the correct answer using the code given below. (a) 1 only (b) 1 and 3 only (c) 1 and 2 only (d) 1, 2 and 3 Ans B It was brokered by the World Bank (then the International Bank for Reconstruction and Development).

• Even, it has survived India-Pakistan wars of 1965, 1971 and the 1999 Kargil standoff besides Kashmir insurgency since 1990.

As per treaty, • control over three eastern rivers Ravi, Beas and Sutlej was given to India

• control over three western rivers Indus, Jhelum and Chenab was given to Pakistan.

• It allows India to use only 20% of the water of Indus river, which flows through it first, for irrigation, power generation and transport.

• Permanent Indus Commission (PIC) was set up as a bilateral commission to implement and manage the Treaty.

Government constitutes Committee to study issues related to data protection Consider the following statements regarding an expert Committee headed by Supreme Court Judge (retired) Justice B N Srikrishna 1. It has been constituted by The Union Ministry of Electronics & Information

Technology (MEITY) 2. It will study and identify key data protection issues and recommend methods for

addressing them. 3. It is a ten-member committee

4. It will also suggest a draft Data Protection Bill. Select the correct answer using the code given below. (a) 1 and 4 only (b) 2 and 3 only (c) 1, 3 and 4 only (d) 1, 2, 3 and 4 Ans D Government launches e-RaKAM portal Consider the following statements regarding e-Rashtriya Kisan Agri Mandi (e-RaKAM) portal 1. It will provide a platform for farmers

to sell agricultural produce. 2. e-RaKAM is a first of its kind initiative

that leverages technology to connect farmers from the smallest villages to the biggest markets of the world through internet.

Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Ans C

• Under this initiative, e-RaKAM centres are being developed throughout the country in a phased manner to facilitate farmers for online sale of their produce.

• The farmers will be paid through e-Payment directly into their bank accounts under the e-RaKAM initiative.

Consider the following statements regarding e-RaKAM 1. It aims to bring together the farmers, PSUs, civil supplies and buyers on a

single platform 2. It will ease the selling and buying process of agricultural products. 3. It has been developed by state-run-auctioneer MSTC Limited and CRWC

(Central Railside Warehouse Company) Limited. Select the correct answer using the code given below. (a) 1 only (b) 2 and 3 only (c) 1 and 2 only (d) 1, 2 and 3 Ans (d) 1, 2 and