10 PM Current Affairs Quiz: May 14, 2020

Statement 1 is correct. Sovereign Credit Guarantee refers to guarantee given by government to lender with regard to a liability of a third person. In case the debtor defaults, government guarantees to pay the liability of debtor to creditor.

Statement 2 is correct. Article 292 of the constitution states “the executive power of the Union extends to borrowing upon the security of the Consolidated Fund of India within such limits, if any, as may from time to time be fixed by Parliament by law and to the giving of guarantees within such limits, if any, as may be so fixed”.

Both statements are incorrect.

The new definition is based on investment as well as turnover.

All are part of Care Economy.

Care economy can be defined as part of human activity, both material and social, that is concerned with the process of caring for the present and future labour force and the human population.Care work can be direct or indirect, paid or unpaid, short-term (maternity needs) or long-term (care for the disabled and elderly).

The government has announced a reduction in PF contribution of both employer and employee to 10% each from the existing 12% each for all establishments covered by EPFO for the next 3 months. It will provide more take home salary to employees and some relief to employers in payment of Provident Fund (PF) dues.

Statement 1 is incorrect.Increase in take home wages have potential in increase the overall demand in economy.

Statement 2 is correct.Liquidity is expected to increase with lesser funds attached to PF and more cash-in-hand salary.

Statement 1 is correct. Say’s law of market states that the ability to purchase something depends on the ability to produce and thereby generate income, i.e.production of a product creates demand for another product by providing something of value which can be exchanged for that other product. Thus, the source of demand is production, not money itself.

Statement 2 is incorrect. Say’s Law proposes that production is the key to economic growth and the government policy should encourage production rather than promoting consumption.

Statement 1 is correct. Corporation Tax or Corporate Tax is a direct tax levied on the net income or profit that corporate enterprises (company) make from their business activities. A reduction in corporate tax reduces the cost of doing business, provides extra liquidity and extra capital with companies to make more investments.

Statement 2 is correct. Relaxation in labour laws and looser business regulations can eliminate processing times and reporting requirements for companies.

Both of these measures can provide increased incentives for expansion, higher levels of production, and increased production capacity.

All of the above are direct source of revenue for state governments.

Taxes on consumption or sale of electricity and alcoholic liquors for human consumption are part of state list and have been kept out of purview of GST.

The taxation of petroleum products is also not covered under GST and its sale is taxed by respective state governments.

Statement 1 is incorrect. It is part of reforms being initiated in Indian Army. IBGs are brigade-sized, agile, self-sufficient combat formations, which can swiftly launch strikes against adversary in case of hostilities. It is being tested by units and commands under Indian Army.

Statement 2 is incorrect. Each IBG will be headed by a Major General.

As per the government notification the Chief of Defense Staff will not exercise any military command.

Statement 1 is incorrect. No such declaration has been made.

Statement 2 iscorrect. Those MSMEs whose turnover is 100 crore and have 25 crore outstanding loan exposure can avail the collateral free, sovereign credit guarantee loans. This facility is of a total amount of Rs 3 lakh crores and available till 31st October 2020.

Statement 3 is correct. Global tenders will be disallowed in govt procurement for tenders under Rs 200 crore to provide opportunity and lesser global competition to Indian firms.

Caveat: The scheme is yet to be completely announced and is being announced in tranches. [14-05-2020]

Statement 1 is correct. TeliaRumal is a unique tie and dye technique that uses oil for the treatment of the yarn that helps it retain softness and has a distinct smell of gingelly oil.The Rumal can only be created using the traditional handloom process and not by any other mechanical means to keep the quality intact.

Statement 2 is correct. Puttapaka TeliaRumal (Telangana)has been registered as a geographical indication.