UPSC Necessities | Each day subject-wise quiz : Financial system MCQs on Buying Managers’ Index, dollar-rupee buy-sell swap association and extra (Week 99) | UPSC Present Affairs Information

QUESTION 1

Think about the next statements:

Assertion 1: India known as the Carbon Border Adjustment Mechanism (CBAM) or carbon tax an “unfair” measure and a violation of the “widespread however differentiated obligations” (CBDR) provision of multilateral local weather negotiations.

Assertion 2: All nations share accountability for mitigating local weather change however “not equally,” as financial growth ranges differ throughout nations.

Which one of many following is right in respect of the above statements?

(a) Each Assertion 1 and Assertion 2 are right and Assertion 2 is the right rationalization for Assertion 1.

(b) Each Assertion 1 and Assertion 2 are right and Assertion 2 is just not the right rationalization for Assertion 1.

(c) Assertion 1 is right however Assertion 2 is wrong.

(d) Assertion 1 is wrong however Assertion 2 is right.

Rationalization

— Through the two-day go to of the President of the European Fee, Ursula von der Leyen, and 21 EU Commissioners, India is anticipated to specific issues in regards to the European Union’s contentious carbon tax, which seeks to impose tariffs of as much as 30% on imports of carbon-intensive merchandise similar to metal and aluminium starting subsequent 12 months.

— Finance Minister Nirmala Sitharaman and Commerce and Business Minister Piyush Goyal have repeatedly described the Carbon Border Adjustment Mechanism (CBAM), also called the carbon tax, as a “unfair” measure that violates the “widespread however differentiated obligations” (CBDR) provision of multilateral local weather negotiations. Therefore, assertion 1 is right.

— This states that every one nations bear obligations for addressing local weather change, however “not equally,” as a result of financial growth ranges fluctuate between nations. Therefore, assertion 2 is right.

— Negotiations with the EU are typically carried out by way of the Commerce and Know-how Council (TTC). There’s a second observe the place we have now agreed to discover the issues offered by CBAM. One among India’s major issues is that CBAM breaches the CBDR idea, as we imagine that environmental points shouldn’t be tied to commerce. Second, Indian exporters have expressed privateness issues, because the EU requires greater than 1,000 information factors as a part of CBAM compliance.

— Whereas quite a few nations, together with China, Russia, Brazil, and South Africa, have introduced the EU to the WTO, India has but to submit a proper grievance as a result of either side are at the moment negotiating a free commerce settlement (FTA), funding pact, and geographical indication (GI) accord.

Each Assertion 1 and Assertion 2 are right and Assertion 2 is the right rationalization for Assertion 1.

Due to this fact, choice (a) is the right reply.

QUESTION 2

Think about the next statements:

1. India is the most important producer of cotton, accounting for twenty-four% of worldwide manufacturing.

2. Cotton cultivation engages farmers principally throughout Punjab, Haryana and Rajasthan.

3. India lags behind solely China in textile exports.

Which of the statements given above is/are right?

(a) 1 solely

(b) 2 and three solely

(c) 1 and three solely

(d) None

Rationalization

— India’s textile business is likely one of the world’s largest, with a various worth chain starting from cotton agriculture to high-end garment manufacturing. Regardless of its measurement, India trails nations similar to China, Vietnam, and Bangladesh in textile exports, which profit from vertically built-in provide chains, decrease manufacturing prices, and fewer rules. Therefore, assertion 3 is just not right.

— Regardless of being the world chief in cotton and artificial fibre manufacturing, India’s textile and garment business has skilled gradual progress in recent times. Prices are anticipated to climb even additional, notably for smaller enterprises, as sustainability and compliance necessities enhance.

— After China, India is the world’s second largest cotton producer, accounting for twenty-four% of worldwide manufacturing. Cotton cultivation employs over 60 lakh farmers, predominantly in Gujarat, Maharashtra, and Telangana. Therefore, statements 1 and a pair of are usually not right.

— Whereas cotton is essentially the most typically consumed fibre in India, the textile sector additionally makes use of wool and jute. India can also be the world’s second largest producer of artificial fibres (MMF).

Due to this fact, choice (d) is the right reply.

QUESTION 3

Just about the Buying Managers’ Index (PMI), take into account the next statements:

1. It’s a measure of the prevailing course of financial traits in manufacturing.

2. It’s based mostly on a yearly survey of provide chain managers throughout industries.

Which of the statements given above is/are right?

(a) 1 solely

(b) 2 solely

(c) Each 1 and a pair of

(d) Neither 1 nor 2

Rationalization

— In accordance with an HSBC analysis, after declining for 3 quarters in a row, the Composite flash Buying Managers’ Index (PMI) climbed faster in February, indicating a rise in personal sector progress within the present quarter.

— The composite flash PMI rose to a wholesome 60.6, up from 57.7 final month, pushed by a considerable acceleration in companies sector exercise.

— The February flash India PMIs give an early indicator of the ultimate manufacturing, companies, and composite PMI statistics for the present month and are launched round every week earlier than the ultimate PMI indices, in response to HSBC. The flash PMI is usually based mostly on 80-90% of complete PMI survey responses obtained every month, with all of them being thought of within the closing publication, in response to the report.

— The Buying Managers’ Index (PMI) measures the present course of financial traits in manufacturing. Therefore, assertion 1 is right.

— The PMI relies on a month-to-month survey of provide chain managers from varied industries, together with each upstream and downstream actions. Therefore, assertion 2 is just not right.

— The PMI’s worth and modifications can present essential information to firm determination makers, market analysts, and traders.

Due to this fact, choice (a) is the right reply.

(Different Supply: http://www.investopedia.com)

QUESTION 4

Just about the Nationwide Agricultural Cooperative Advertising Federation (NAFED), take into account the next statements:

1. It was established on October 2, 1958.

2. The members of the NAFED don’t embrace the agricultural farmers.

3. It’s registered underneath the Multi State Co-operative Societies Act.

Which of the statements given above are right?

(a) 1 and a pair of solely

(b) 1 and three solely

(c) 2 and three solely

(d) 1, 2 and three

Rationalization

— The central authorities has to this point bought 20 lakh tonnes (lt) of soyabean, though this has had little influence on wholesale pricing throughout marketplaces. The vast majority of the crop, planted over 129.35 lakh hectares, is but to be marketed.

— Soybeans are an essential kharif crop harvested in September. The oilseed advertising 12 months lasts from September to October.

— The Nationwide Cooperative Agricultural Advertising Federation (NAFED) and the Nationwide Cooperative Customers Federation (NCCF) had set a objective of buying 30 litres throughout the nation. Nevertheless, NAFED has solely purchased 14.71 lt, and actions in six of the seven states (besides Chhattisgarh) had terminated as of February 24.

About NAFED

— The Nationwide Agricultural Cooperative Advertising Federation of India Ltd. (NAFED) was based on the auspicious event of Gandhi Jayanti on October 2, 1958. Therefore, assertion 1 is right.

— Nafed is registered underneath the Multi-State Cooperative Societies Act. Therefore, assertion 3 is right.

— Nafed was based with the objective of selling cooperative sale of agricultural commodities to profit farmers.

— Agricultural farmers are the first members of Nafed, and so they have the capability to affect Nafed’s operations by way of members of the Common Physique. Therefore, assertion 2 is just not right.

Due to this fact, choice (b) is the right reply.

(Different Supply: http://www.nafed-india.com)

QUESTION 5

Just about the dollar-rupee buy-sell swap association, take into account the next statements:

1. This initiative is designed to offer a sturdy resolution to the system’s liquidity necessities whereas stabilising the rupee’s worth.

2. It could bolster market confidence and stop extreme volatility within the alternate price.

3. It should strengthen the RBI’s greenback reserves at a time when it’s intervening within the foreign exchange market to forestall a slide within the rupee.

How lots of the statements given above are right?

(a) Just one

(b) Solely two

(c) All three

(d) None

Rationalization

— Following a $5 billion dollar-rupee swap lower than a month in the past, the Reserve Financial institution of India (RBI) selected to inject rupee liquidity for an extended interval by way of one other $10 billion dollar-rupee buy-sell swap association.

— The central financial institution’s initiative goals to offer a long-term reply to the system’s liquidity wants whereas additionally stabilising the rupee’s worth and strengthening the nation’s international alternate reserves. Therefore, assertion 1 is right.

— In accordance with Dilip Parmar, Analysis Analyst at HDFC Securities, the swap mechanism might help stabilise the forex by offering fast liquidity help, decreasing strain on the rupee in periods of international cash outflows.

— This momentary reprieve can increase market confidence and hold the forex price from changing into too risky. Therefore, assertion 2 is right.

— It should additionally enhance the RBI’s greenback reserves at a time when it’s intervening within the foreign exchange market to forestall the rupee from falling additional. Therefore, assertion 3 is right.

Due to this fact, choice (c) is the right reply.

Earlier Each day Topic-Sensible-Quiz

Each day Topic-wise quiz — Historical past, Tradition, and Social Points (Week 99)

Each day subject-wise quiz — Polity and Governance (Week 99)

Each day subject-wise quiz —  Science and Know-how (Week 99)

Each day subject-wise quiz — Financial system (Week 96, 97 and 98)

Each day subject-wise quiz — Surroundings and Geography (Week 96, 97 and 98)

Each day subject-wise quiz – Worldwide Relations (Week 96, 97 and 98)

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