Daily Quiz: UPSC Prelims Marathon – January 30, 2018

Statement 1 is incorrect

India’s proposal for an Agreement on Trade Facilitation in Services (TFS) is to initiate discussions at the WTO on how to comprehensively address the numerous border and behind-the-border barriers, across all modes of supply, which are impediments to the realization of the full potential of services trade. It is neither been signed or ratified.

Statement 2 is incorrect

Trade Facilitation in Services (TFS)—is mainly aimed at ensuring:

•easier norms for movement of foreign skilled workers/professionals across borders for short-term work;

•  portability of social security contributions;

•  reasonable fees for immigration;

•  cross-border insurance coverage;

•  boosting medical tourism; and publication

availability of relevant information for cross-border supply of services.

Both the statements are correct

In recent times there has been a debate over India’s optimum level of the forex reserves. The RBI is aware of the downside risks to the exchange rate as it reflected by its action of buying the Us dollars. RBI targets neither a particular exchange rate not foreign forex and maintains such intervention by it to just reduce volatility in forex market.

But in the process of supporting weekining rupee RBI needs to buy dollar, ultimately leading to higher form buid-ups

Statement 2 :

When RBI purchases dollars in the spot, it leads to infusion of money into the system which leaves inflationary effect on the economy. But this is not linked to voltality of rupee against the dollar

All the statements are correct

A private placement is a capital raising event that involves the sale of securities to a relatively small number of select investors. Investors involved in private placements can include large banks, mutual funds, insurance companies and pension funds.

A private placement is different from a public issue in which securities are made available for sale on the open market to any type of investor.

Badla basically means something you get in return. In the complete absence of a derivatives market in India, badla trading was evolved to take leverage positions in the share market.

If a trader or an investor didn’t have sufficient money to buy a large quantity of shares in a particular company, he had the option to borrow and buy shares. The lenders in this case used to get an interest payout.

A market maker is a broker-dealer firm that assumes the risk of holding a certain number of shares of a particular security in order to facilitate the trading of that security.

Rolling settlement is the process of settling security traded on successive dates so that trades executed today will have a settlement date one business day later than trades executed yesterday. This contrasts with account settlement, in which all trades are settled once in a set period of days, regardless of when the trade took place.

Demutualisation is a process that changes a mutual or co-operative association into a public company by converting the interests of the members into shareholdings. These holdings can then be traded like the shares of a company.

All the statements are correct

Deposits mobilised by the banks are utilised for loans and advances, investment in government and other approved securities in fulfilment of liquidity stipulation, and investment in commercial papers, shares, debentures up to stipulated ceilings.

After the nationalisation of major commercial banks in the country, there has been marked expansion in their business, both with regard to the bank deposits as well as the bank credit.

The accretion of deposits was primarily on account of time deposits which increased substantially despite the downward movement of the interest rates

Statement 1 is correct

the growth in the insurance sector is internationally measured based on the standards on insurance penetration and insurance density.

Insurance penetration is defined as the ratio of premium underwritten in a given year to the GDP.

Insurance Penetration in India is 3.3 % of GDP ( Global average is 6.1 %)

Statement 2 is correct

Insurance density is defined as the ration of premium underwritten in a given year to the total population.

Insurance density in India is US $ 55 ( Global average is US $ 662 ).

Statement 3 and 4 is incorrect

Reinsurance companies and per capita income are generally not taken to measure the growth of insurance sector.

Reinsurance is occurs when multiple insurance companies share risk by purchasing insurance policies from other insurers to limit the total loss the original insurer would experience in case of disaster.

By spreading risk, an individual insurance company can take on clients whose coverage would be too great of a burden for the single insurance company to handle alone.

“LEADS-Logistics Ease Across Different States” which is a first ever  sub-national logistics performance index.

Reoprt by WB:

Global environment facility

GLOBAL ECONOMIC PROSPECTS REPORT

MIGRATION AND DEVELOPMENT BRIEF

UNIVERSAL HEALTH COVERAGE INDEX

LOGISTICS PERFORMANCE INDEX

WORLD DEVELOPMENT REPORT

Report by WEF

GLOBAL ENERGY ARCHITECTURE PERFORMANCE INDEX

NETWORK READINESS INDEX

GLOBAL GENDER GAP REPORT

GLOBAL RISK REPORT

INCLUSIVE GROWTH AND DEVELOPMENT REPORT(inclusive development index)

ENABLING TRADE INDEX

TRAVEL AND TOURISM COMPETITIVNESS INDEX

INTL. ENERGY AGENCY

WORLD ENERGY OUTLOOK

Report by FAO

STATE OFTHE WORLD’s FOREST

SUSTAINABLE DEVELOPMENT SOLUTIONs N/W

(A GLOBAL INITIATIVE FOR UN)

THE WORLD HAPPINESS REPORT

Report by UNEP

GLOBAL ENVIRONMENT OUTLOOK

UNCTAD

WORLD INVESTMENT REPORT

IMF

GLOBAL FINANCIAL STABILITY REPORT

WORLD ECONOMIC OUTLOOK

FISCAL MONITOR REPORT

UNESCO

(EDUCATION FOR ALL) GLOBAL MONITORING REPORT(GLOBAL EDUCATION MONITORING REPORT)

OECD

EDUCATION AT A GLANCE

INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE

GLOBAL HUNGER INDEX

ILO

GLOBAL WAGE REPORT;

WORLD EMPLOYMENT AND SOCIAL OUTLOOK

INSEAD

GLOBAL TALENT COMPETIVENESS

TRANSPARENCY INTERNATIONAL

CORRUPTION PERCEPTION INDEX; GLOBAL CORRUPTION REPORT; GLOBAL CORRUPTION BAROMETER; BRIBE PAYERS INDEX;

GLOBAL INTELLECTUAL PROPERTY CENTRE

(US CHAMBER OF COMMERCE)

INTL. IP INDEX

AMNESTY

STATE OF THE WORLD HUMAN RIGHTS REPORT

ADB

CREATIVITY PRODUCTIVITY INDEX

WETLAND INTERNATIONAL

INTERNATIONAL WATER BIRD CENSUS

UN ESCAP

ASIUA PACIFIC TRADE AND INVESTMENT REPORT

UN

UN WOMEN & INTER-PARALIMANTARY UNION – WOMEN IN POLITICS MAP REPORT

WIPO

GLOBAL INNOVATION INDEX

THE HERITAGE FOUNDATION (US THINK TANK)

ECONOMIC FREEDOM INDEX

WHO

GLOBAL BURDEN ON DISEASES REPORT