Q1. Which of the following statements is/are correct?

  1. Cash management bill is the most flexible instrument for a Central Bank because it can be issued when needed, allowing the Central Bank to have lower cash balances and issue fewer long-term notes. 
  2. These bills in India are non-standard, discounted instruments issued for maturities less than 91 days.

 Select the correct answer using the codes given below:

 (a) 1 only           

(b) 2 only

 (c) Both 1 and 2               

(d) Neither 1 nor 2

Option C is correct.

Both statements are correct. Cash management bill is the most flexible instrument for a Central Bank because it can be issued when needed, allowing the Central Bank to have lower cash balances and issue fewer long-term notes. These bills in India are non-standard, discounted instruments issued for maturities less than 91 days.

http://www.stcipd.com/cmb.aspx

Q2. Consider the following statements:

  1. A Consumer Price Index (CPI) is designed to measure the changes over time in general level of retail prices of all the goods and services that households purchase for the purpose of consumption.
  2. While the all-items Consumer Price Index (CPI)measures the price changes for all consumer goods and services, including food, the Consumer Food Price Index (CFPI) measures the changes in the retail prices of food items only.                  

Which of the Statements given above is/are correct?

(a) 1 only            

(b) 2 only

 (c) Both 1 and 2               

(d) Neither 1 nor 2

Option B is correct.

Statement 1 is incorrect. A Consumer Price Index (CPI) is designed to measure the changes over time in general level of retail prices of selected goods and services that households purchase for the purpose of consumption.

Statement 2 is correct. While the all-items Consumer Price Index (CPI) measures the price changes for all consumer goods and services, including food, the Consumer Food Price Index (CFPI) measures the changes in the retail prices of food items only.     

https://www.numberbasket.com/india/economy/cpi/consumer-food-price-index#:~:text=Consumer%20Food%20Price%20Index%20(CFPI)%20is%20a%20component%20of%20all,prices%20of%20food%20items%20only.

Q3. Which one of the following best describes the term “Photoperiodism”, often seen in news?

(a) It is an organisms’ ability to adjust their physiology and behavior to seasonal changes in the environment according to the length of day.           

(b) It is the process by which green plants and certain other organisms transform light energy into chemical energy.       

(c) It is the type of respiration through which cells can break down sugars to generate energy in the absence of oxygen.               

(d) None of the above.

Option A is correct. Photoperiodism is an organisms’ ability to adjust their physiology and behavior to seasonal changes in the environment according to the length of day (photoperiod), because photoperiod is the most reliable information to detect the time of year.               

Https://www.sciencedirect.com/topics/agricultural-and-biological-sciences/photoperiodism

Q4. With reference to Seaweeds, consider the following statements:

  1. Seaweeds, the marine non-flowering marine algae without root, stem and leaves, play a major role in marine ecosystems.
  2. Seaweed has a significant role in mitigating climate change. 

Which of the Statements given above is/are correct?

(a) 1 only            

(b) 2 only                        

 (c) Both 1 and 2               

(d) Neither 1 nor 2

Option C is correct.

Both statements are correct. Seaweeds, the primitive, marine non-flowering marine algae without root, stem and leaves, play a major role in marine ecosystems. Seaweed has a significant role in mitigating climate change.        

https://www.downtoearth.org.in/blog/environment/why-seaweeds-need-to-be-conserved-urgently-75070

Q5. Consider the following statements:

  1. The Organization of the Petroleum Exporting Countries was founded in Tehran, with the signing of an agreement, by five founder members of the Organization.
  2. According to the World Oil Outlook report of OPEC, despite the large drop in 2020, global primary energy demand is forecast to grow by a significant 50% by 2045.

Which of the Statements given above is/are correct?

(a) 1 only            

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Option D is correct.

Both statements are incorrect. The Organization of the Petroleum Exporting Countries (OPEC) was founded in Baghdad, with the signing of an agreement, by five countries namely Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. They were to become the Founder Members of the Organization. According to the World Oil Outlook report of OPEC, despite the large drop in 2020, global primary energy demand is forecast to grow by a significant 25% by 2045.                    

https://www.opec.org/opec_web/en/about_us/25.htm            

https://safety4sea.com/opec-world-oil-outlook-2020-global-primary-energy-demand-to-grow-by-25-until-2045/

Q6. With reference to the Black and Brown carbons, present in the atmosphere, consider the following statements:

  1. Black Carbon is emitted mainly by high-temperature combustion processes and Brown Carbon is emitted mainly by biomass combustion.
  2. Only black carbon is included as pollutant in the Air Quality Index (AQI).

Which of the Statements given above is/are correct?

(a) 1 only            

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Option A is correct.

Statement 1 is correct. Black Carbon is emitted mainly by high-temperature combustion processes and Brown Carbon is emitted mainly by biomass combustion.

Statement 2 is incorrect. None of these are included in AQI.

https://aerosols.univie.ac.at/research/black-and-brown-carbon-in-atmospheric-aerosols/

Q7. An escalating conflict in Tigray region has killed hundreds of people recently, bringing it on the brink of civil war. This region is located in

(a) Siberian Peninsula   

 (b) Horn of Africa

 (c) Andes range

 (d) Caribbean islands

Option B is correct. An escalating conflict in Tigray region has killed hundreds of people recently, bringing it on the brink of civil war. This region is located in Northern Ethiopia, in the Horn of Africa.           

https://www.aljazeera.com/news/2020/11/9/ethiopia-downplays-war-fears-while-attacking-tigray-region

Q8. With reference to the data localization norms in India, consider the following statements:

  1. The payment data of the Indian customers should only be stored in friendly neighbor countries, apart from India, as per the RBI guidelines.
  2. The data can only be shared with the foreign regulators after the approval of the Central bank.

Which of the Statements given above is/are correct?

(a) 1 only            

(b) 2 only

 (c) Both 1 and 2       

(d) Neither 1 nor 2

Option B is correct.

Statement 1 is incorrect. Reiterating its stand on data localisation norms, the Reserve Bank of India (RBI) recently said that payment data of the Indian customers should only be stored in India. 

Statement 2 is correct. The central bank also clarified that the data can only be shared with the foreign regulators after its approval.            

https://www.financialexpress.com/economy/rbi-reiterates-its-stand-on-data-localisation-says-payment-data-of-indian-customers-to-remain-in-india/1619933/

Ques  Ans:

1-(c)

2-(b)

3-(a)

4-(c)

5-(d)

6-(a)

7-(b)

8-(b)