[Solutions] – The 10 PM Daily Quiz – 29 July, 2016


Q.1 Compensatory Afforestation fund will receive money for which of the following sources:

a) Net Present Value of the forest

b) Economic values of trees that are being cut

c) Economic value of fauna that is being displaced

d) None of these

Ans: a) There is nothing like economic value of the trees or fauna which is being provided for in the bill. Net present value of forests is being provided for.


Q.2 Consider the following statements:

1. States have to compulsorily adopt the Central Pay Commission (CPC) recommendations

2. Adoption the recommendations of CPC tends to put fiscal strain on most of the states

Which of the statements given is/are true?

a) 1 only

b) 2 only

c) Both 1 and 2

d) None of these

Ans: b) It is not mandatory for the states to adopt recommendations of CPC but as a norm, most of the State governments, under pressure from the unions, adopt the Central Pay Commission recommendation.

States have limited financial resources and these recommendations put financial strain on them.


Q.3 Which of the following are prominent issues in Indo-US trade?

1. WTO disputes pertaining to poultry imports, solar panels

2. Fee hike in major visa categories

3. India’s model BIT excludes most favoured nation clause

Identify the correct statement:

a) 1 only

b) 1 and 2 only

c) 2 and 3 only

d) 1, 2 and 3

Ans: d) All the 3 are prominent issues in Indo-US trade.


Q.4 Which of the following is correct regarding Green Bonds:

a) These are debt instruments will be used for development of projects related to renewable energy

b) Green Bond market has become mature and well developed across the world and in India

c) One of the reason why green bonds have not picked up is because of alternate government polices like Reverse Purchase Obligations (RPO).

d) None of these

Ans : a) Green bond market is still in its nascent stage as it is very now, hence, it is not yet mature and well developed especially in India.

Alternative policies like RPOs which puts obligation on discoms to have a part of renewable energy in total energy mix, favour Green Bonds and are not anti green bonds.


Q.5 Which of the following factors can cause an increase in inflation?

a) RBI following a tighter money policy

b) Below normal rainfall

c) Low Public Expenditure

d) Both (a) and (b)


Ans: b) Tighter monetary policy, reduces the level of currency circulating in the market and is used to address inflation, not increase it.

Low public expenditure by the govt. means less money in the hands of people = Less inflation.

Below norma rainfall results in less agriculture productivity which cause an increase in prices of food commodity. Food products have the highest weightage in CPI , hence it increases inflation.

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