We posted 7 questions in 10 PM Daily Quiz on 19th May, 2016. Thanks for the amazing response. These questions will help you polish concepts based on current affairs. In case you have not attempted them, please attempt them by clicking below.
Q.1)Consider the following statements regarding countercyclical fiscal policy
- It refers to reducing spending and raising taxes during a boom period.
- It refers to increasing spending and cutting taxes during a recession.
Select the correct answer using the codes given below:
a) 1 only
b) 2 only
c) Both are true
d) Neither is true
Answer-c
Explanation:-
What is a counter-cyclical policy?
- Procyclical and countercyclical are terms used to describe how an economic quantity is related to economic fluctuations.
- The terms are often used loosely to describe a government’s approach to spending and taxation. A ‘procyclical fiscal policy’ can be summarised simply as governments choosing to increase public spending and reduce taxes during an economic boom, but reduce spending and increase taxes during a recession.
- A ‘countercyclical’ fiscal policy refers to the opposite approach: reducing spending and raising taxes during a boom period, and increasing spending/cutting taxes during a recession.
Q.2) Consider the following statements regarding Quantitative Easing
- Quantitative easing increases the money supply by flooding financial institutions with capital in an effort to promote increased lending and liquidity.
- It involve the printing of new banknotes.
Select the correct answer using the codes given below:
a) 1 only
b) 2 only
c) Both are true
d) Neither is true
Answer-a
Explanation:-
Quantitative Easing and Fed Tapering
What is ‘Quantitative Easing’?
- Quantitative easing is an unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply.
- Quantitative easing increases the money supply by flooding financial institutions with capital in an effort to promote increased lending and liquidity.
- Quantitative easing is considered when short-term interest rates are at or approaching zero, and does not involve the printing of new banknotes.
Fed tapering
- Fed tapering is the gradual reduction in the bond buying program of the US Federal Reserves.
- Tapering is the gradual winding down of central bank activities used to improve the conditions for economic growth.
- Tapering activities is primarily aimed at interest rates and investor expectations of what those rates will be in the future.
- These can include conventional central bank activities, such as adjusting the discount rate or reserve requirements, or more unconventional ones, such as quantitative easing (QE).
In layman terms, it can be said that in ‘Quantitative Easing , there is increase in dollar supply and in Fed tapering, there is decrease in dollar supply.
Q.3) International Transport Forum(ITF), a think tank affiliated to which of the following?
a) Organisation for Economic Cooperation and Development (OECD)
b) World Bank
c) World Trade Organization
d) International Monetary Fund
Answer-a
Explanation:-
- International Transport Forum(ITF), a think tank affiliated to the Organisation for Economic Cooperation and Development (OECD) with 57 member countries, including India, wants app-based taxis to trade data for light regulation.
Q.4) Consider the following statements regarding “helicopter drops”
- It was first introduced by the Nobel Prize-winning economist Milton Friedman.
- It entails the distribution of freshly printed money directly to the public, with a commitment from the central bank never to withdraw it.
Select the correct answer using the codes given below:
a) 1 only
b) 2 only
c) Both are true
d) Neither is true
Answer-c
Explanation:-
- The idea, introduced by the Nobel Prize-winning economist Milton Friedman in 1969, entails the distribution of freshly printed money directly to the public, with a commitment from the central bank never to withdraw it.
Q.5) Consider the following difference between GDP and SPI:
- SPI focuses on outcomes rather than inputs that are used in GDP.
- SPI also reframes the fundamentals about development by taking into consideration not just GDP but also inclusive, sustainable growth that will lead to a significant improvement in people’s lives.
Select the correct difference using the codes given below:
a) 1 only
b) 2 only
c) Both are correct
d) Neither is correct
Answer c
Explanation:
What is the difference between GDP and SPI?
- SPI focuses on outcomes rather than inputs that are used in GDP.
- For example, the quality of life and longevity are measured instead of spending on health care, and people’s experience of discrimination is looked at instead of focussing on whether there is a law against discrimination.
- SPI also reframes the fundamentals about development by taking into consideration not just GDP but also inclusive, sustainable growth that will lead to a significant improvement in people’s lives.
- SPI can best be described as a complementary index to GDP and can be used along with GDP to achieve social progress.
Q.6) The Place where Buddha’s relics are kept is known as?
a) Stupa
b) Chaitya
c) Vihara
d) Pagoda
Answer: a
Q.7) Consider the statement regarding Gandhara school of art:
- Gandhara School of Art is regarded as the early creator of Buddha in human form carved in stone, stucco, terracotta and bronze.
- Its works were mostly enshrined in monasteries and “stupas” throughout the Gandhara region.
- Gandhara is a triangular piece of land about 100 km (east to west) and 70 km (north to south), on the west of the Indus river, surrounded by mountains in the present-day Pakistan.
Select the correct statement using the codes given below:
a) 1 only
b) 2 only
c) 1 and 2 only
d) All of the above
Answer d
Explanation: Click here
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