Daily Quiz: UPSC Prelims Marathon – March 20, 2018

Durable goods are a category of consumer products that do not need to be purchased frequently because they are made to last for a long time (usually lasting for three years or more). They are also called consumer durables or durables. Examples of durable goods include automobiles, appliances, furniture, jewelry, consumer electronics and sporting goods. TV, cars etc.

When a washing machine is a durable good, the detergent used in the washing machine on the other hand is a non-durable good. Other examples are Petrol, Compressed Natural Gas etc.

In India, Spot Exchanges refer to electronic trading platforms which facilitate purchase and sale of specified commodities, including agricultural commodities, metals and bullion by providing spot delivery contracts in these commodities.

Stagflation a condition of slow economic growth and relatively high unemployment – economic stagnation – accompanied by rising prices, or inflation, or inflation and a decline in Gross Domestic Product (GDP).

Statement 1 is incorrect. A debenture is a debt instrument which is not backed by any specific security; instead the credit of the company issuing the same is the underlying security.

Statement 2 is correct. Corporate treasury use this as a tool to raise medium- to long-term funds. The funds raised become part of the capital structure but not share capital of the company.

Both the statements are incorrect. FTAs are arrangements between two or more countries or trading blocs that primarily agree to reduce or eliminate customs tariff and non-tariff barriers on substantial trade between them. FTAs, normally cover trade in goods (such as agricultural or industrial products) or trade in services (such as banking, construction, trading etc.). FTAs can also cover other areas such as intellectual property rights (IPRs), investment, government procurement and competition policy, etc.

All are examples of Non-tariff measures.

India and MERCOSUR have Preferential Trade Agreement. MERCOSUR is a trading bloc in Latin America comprising Brazil, Argentina, Uruguay and Paraguay. MERCOSUR was formed in 1991 with the objective of facilitating the free movement of goods, services, capital and people among the four member countries.

As a follow up to the Framework Agreement, a Preferential Trade Agreement (PTA) was signed in New Delhi on January 25, 2004.

A PTA is a limited free trade agreement where partner countries reduce import duties on a few identified products for the other. While the PTA between India and Mercosur is presently limited to just 450 products, the two sides have raised their ambitions manifold and are now aiming at providing preferential access to about 3,000 items.