DESIREIAS QUIZ

21th November Daily MCQ (Answers )

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21th November Daily MCQ (Answers )

Q-Consider the Following statements

1-India has received over US$ 200 billion as Foreign Direct Investment in the last four years

2-India has 10 greenfield airports

3-India has started schemes such as the “Know India Programme” to better connect with our people abroad. 

Select the correct answer using the codes below.
A- Only 1,2
B- Only 1,3
C- Only 2,3
D- All of the Above

MCQ Source- 20th November 2018, PIB News Analysis Topic- Address by the Hon’ble President of India Shri Ram Nath Kovind at the Indian Community Reception

Ans-D

  • Our growth and development mirrors a new confidence in the country. India is the fastest growing major economy in the world, with a growth of 8.2 per cent last quarter. 
  • Our path-breaking introduction of the Goods and services Tax has made India into One Nation, One Tax, One Market for the first time in its history.
  • This and other seminal reforms have helped us jump 65 places in the last four years on the World Bank Ease of Doing Business Index. Global Investor confidence in the country is at a new high.
  • We have received over US$ 200 billion as Foreign Direct Investment in the last four years. Our work on building next – generation infrastructure including 100 Smart cities, 7 high speed train corridors, 10 greenfield airports, countrywide digital connectivity and thousands of kilometres of expressways continues apace. And we are working overtime not just for growth, but also to empower women, the differently-abled and those at the bottom of the pyramid.

 

 

Q-Which of the following is/are risk face by bank?
1-Credit Risk

2- Market Risk
3-Income Risk
4-Operational Risk
Select the correct answer using the codes below.

A-Only 2

B-Only 1,3,4

C-Only 1,2,3

D-All of the above

MCQ Source- https://www.thehindu.com/business/Economy/reviving-economy-faces-risks/article24265030.ece

Ans-C

 

 

Q-Which of the following risk is/are covered by BASEL-I?
1- Credit Risk

2- Market Risk
3- Reputation Risk
4- Operational Risk
Select the correct answer from following options:

A-Only 1,2

B-Only 1,2,3

C-Only 1,2,4

D-All are correct

MCQ Source- https://www.thehindubusinessline.com/money-and-banking/rbis-decision-to-ease-capital-norms-credit-negative-for-banks-moodys/article25545360.ece

Ans-A

BASEL-I guidelines initially focused only on credit risk but later introduced market risk also

 

The Basel Banking Accords are the norms brought forward by the Basel Committee on Banking Supervision (BCBS), formed under the patronage of Bank of International Settlements (BIS), situated in Basel, Switzerland.

The Basel Accords, which oversee capital adequacy norms of banking sector, aspire to guarantee financial stability & thus augment risk absorbing capability of banks.

Basel I was issued in the year 1988, with main focus on credit risk.

Basel II was issued in the year 2004 with the purpose of being more inclusive. It aimed at escalating capital adequacy by imposing a barrier for a larger spectrum of risk.

The core of Basel III revolves around conformity regarding liquidity and capital. 

The Basel Banking Accords are the norms brought forward by the Basel Committee on Banking Supervision (BCBS), formed under the patronage of Bank of International Settlements (BIS), situated in Basel, Switzerland.

The committee devises guidelines & makes suggestions on best practices in banking industry. The Basel Accords, which oversee capital adequacy norms of banking sector, aspire to guarantee financial stability & thus augment risk absorbing capability of banks.

The initial set of Basel Accords is called Basel I. Basel I was issued in the year 1988, with main focus on credit risk. It placed the basis of risk weighting of assets & set targets of capital to be sustained. Basel II was issued in the year 2004 with the purpose of being more inclusive. It aimed at escalating capital adequacy by imposing a barrier for a larger spectrum of risk.

Basel I: Capital adequacy against credit risk

Basel I Accord aims to produce a cushion against credit risk. It contains 4 pillars, which are:

  1. Constituents of Capital:It sets down the nature of capital that is entitled to be treated as reserves.
  2. Risk Weighting:Risk Weighting formulated an inclusive system to present weights to dissimilar categories of assets of bank because of relative riskiness.

iii. Target Standard Ratio: This acted as an amalgamating factor between the first 2 pillars. A universal standard of 8 percent coverage of risk weighted assets by Tier I & II capital was set, with no less than 4 percent being covered by Tier I capital alone.

  1. Transitional and implementing arrangements:Phase wise implementation deadlines were set in which a target of 7.25 percent was to be attained by the end of the year 1990 and 8 percent by the end of year 1992.

Basel II: Comprehensive framework with buffer for greater spectrum of risks

Basel II kept hold of the ‘pillar’ framework of Basel I, yet significantly expanded the scope & specifics of Basel

The 4 pillars that were amended were as follows

  1. Minimum Capital Requirements, target adequacy ratio and risks:The main authorization of extending the scope of regulation was attained by mounting the definition of banking institutions to embrace them on a fully consolidate basis. Reserves requirement were explained as follows:
    Reserves = 8% * Risk-Weighted Assets + Market Risk Reserves + Operational Risk Reserves
  2. Regulator Bank Interaction:This sanction to regulators in management & dissolution of banks, giving them liberation to set buffer capital prerequisite above the minimum capital requirement according to pillar I.

iii. Banking Sector Discipline: It intends to stimulate discipline by directing sufficient disclosures about capital & risk profile to the regulators & public.

Basel III: The new set of norms

There were number of limitations of Basel II. It was suggested for G 10 counties, thus leaving out the budding economies. The range of responsibilities for regulators in rising economies may be too much for them to handle.

The core of Basel III revolves around conformity regarding liquidity and capital. While good class of capital will facilitate stable long term sustenance, conformity with liquidity covers will augment ability to endure short term financial and economic stress.

  1. Liquidity Rules
  2. Liquidity Coverage Ratio:This is to look after banks against sustained financial stress for thirty days period.
  3. Net Stable Funding Ratio:The purpose of long-term stability of financial liquidity risk profile is met by upholding a ratio of amount obtainable of stable funding to requisite amount of stable funding at a minimum of 100 percent.
  4. Capital Rules:Augmentation of risk coverage is attained by preface of Countercyclical Buffer and Capital Conservation Buffer.

 

 

 

Q-Sometimes often seen Anupam Verma Committee”in news ,is regarding

A- Pesticides

B- Bharat Norms

C- Fly Ash utilisation policy

D- Air pollution

MCQ Source – Down to Earth Magazine https://www.downtoearth.org.in/news/agriculture/india-bans-18-pesticides-has-many-more-to-go-61405

Ans-A

 

  • The health and family welfare ministry monitors and regulates pesticide levels in food, and sets limits for residues in food commodities. Anupam Verma Committee has recommended a ban on 13 ‘extremely hazardous’ pesticides, phasing out of six ‘moderately hazardous’ ones by 2020, and review of 27 pesticides in 2018.
  • Insecticide Act 1968 was enacted to regulate imports, manufacture, storage, transport, sale, distribution and use of insecticides with a view to prevent risk to human beings and animals.
  • Approval for the use of pesticides and new formulations on crops is given by the Registration Committee of the Central Insecticide Board.

 

 

Q-Which of the following is/are emissions from  coal power plants?

  1. Particulate Matter
  2. Ozone
  3. Mercury
  4. Sulphur Dioxide

Select the correct code:

A- Only 1,3,4 

B- Only 1,3 

C- Only 1,4  

D-All of the Above

MCQ Source -https://www.thehindu.com/news/cities/Delhi/coal-supply-in-power-plants-low-crisis-looms/article24274603.ece

Ans-A

Exp-

Ozone is a secondary pollutant; it is formed due to the reaction of emissions from coal power plants such as nitrogen oxides and volatile organic compounds with atmospheric Oxygen, in the presence of sunlight.

Harmful pollutants emitted from a typical uncontrolled coal plants include: Sulphur Dioxide, Nitrogen Oxides, PM (soot or fly ash), Mercury, VOCs, Lead, Cadmium, toxic heavy metals, Arsenic, Carbon Monoxide and trace amounts of uranium

 

 

Q-Consider the following statements:

  1. The Union Ministry of railways has advanced target for 100% completion of installing human waste discharge free Biotoilets in coaches to December 2018.
  2. Indian railway had developed environment friendly ‘Bio-toilets in association with Defence Research and Development Organisation (DRDO).
  3. Bio-toilets evacuate discharge into a biodigester tank, containing anaerobic bacteria, fitted underneath train coach in small space.
  4. The bacteria convert human faecal matter into water and small amount of gases (including methane) by process of hydrolysis, acetogenesis, acidogenesis and methanogenesis.

Select the correct code:

A- Only 1,2,3 

B- Only 2,3,4 

C- Only 1,3,4  

D-All of the Above 

MCQ Source- https://www.thehindu.com/news/national/trains-to-get-vacuum-bio-toilets/article24187317.ece

Ans-D

 

 

Q-Consider the following statements related to  the sources of air pollution:

  1. Benzene is an air pollutant which is released form Motor vehicle exhausts and petrol evaporation but doesn’t cause cancer.
  2. Cadmium is released form mining and metallurgy, cigarette smoke and incineration of plastics.
  3. PM10 and PM2.5 cause irritation and/or carry with them toxic or carcinogenic substances.

Which of the above statement(s) is/are incorrect?

A-Only 1,2 

B- Only

C- Only 3

D- All of the Above

MCQ Source- https://www.thehindu.com/news/cities/Delhi/from-tomorrow-44-teams-to-check-sources-of-air-pollution/article25374562.ece

Ans-B

  • Major air pollutants and their effects: PM10 (particles less than 10 micrometers in diameter) and PM2.5 (particles less than 2.5 micrometers in diameter).
  • Combustion processes and natural sources such as dust, diesel and smoke. Small particles can penetrate deep into the lungs and cannot be expelled.
  • They may cause irritation and/or carry with them toxic or carcinogenic substances.
  • Cadmium: It is released form mining and metallurgy, cigarette smoke and incineration of plastics. It causes cardiovascular diseases in human-kidney damage and “Itai-itai” or ouch-ouch disease.
  • Benzene: It is released form motor vehicle exhausts and petrol evaporation and is a human carcinogen