Current Affairs MCQs for UPSC & State PSC Exams (14 January 2023)

Current Affairs MCQs Quiz for UPSC, IAS, UPPSC/UPPCS, MPPSC. BPSC, RPSC & All State PSC Exams

Date: 14 January 2023

Q1. Which of the following statements is incorrect about Marginal Standing Facility (MSF)?

A. It is always fixed above the repo rate.
B. It was introduced by RBI with the main aim of reducing volatility in the overnight lending rates in the interbank market.
C. The MSF is the last resort for banks to borrow money from the RBI.
D. MSF has a lower rate of interest in comparison with the LAF.

Answer: (D)

Explanation:

  • Marginal Standing Facility (MSF) was announced by the Reserve Bank of India (RBI) in its Monetary Policy (2011-12) and refers to the penal rate at which banks can borrow money from the central bank over and above what is available to them through the LAF window.
  • The objective of MSF is to reduce volatility in the overnight lending rates in the interbank market and to enable smooth monetary transmission in the financial system.
  • The MSF is the last resort for banks once they exhaust all borrowing options including the liquidity adjustment facility by pledging through government securities, which have a lower rate (i.e. repo rate) of interest in comparison with the MSF. Thus, statement 4 is incorrect.

Q2. Consider the following statements regarding the various certification marks in India

1. The FPO mark is a certification mark mandatory on all food products sold in India.
2. AGMARK is a certification mark used for agricultural products in India.
3.Only Silver and Gold are mandated under the purview of BIS Hallmarking.
4. The ISI mark is a standards-compliance mark only for Electrical appliances.

Choose the CORRECT answer using the codes given below:

a) 1 and 2 only
b) 2 and 3 only
c) 2, 3 and 4 only
d) 1, 3 and 4 only

Answer: (B)

Explanation:

  • The government of India issued a notification in June 2018 and notified only two categories of metals under the purview of hallmarking.
  • Gold jewellery and gold artifacts.
  • Silver jewellery and silver artifacts. (Statement-3 is correct)
  • The FPO mark is a certification mark mandatory on all processed fruit products sold in India such as packaged fruit beverages, fruit-jams, pickles, dehydrated fruit products etc.
  • It is mandatory under the Food Safety and Standards Act of 2006. (Statement-1 is incorrect)
  • AGMARK (Agriculture Mark) is a certification mark used for agricultural products in India. (Statement-2 is correct)
  • The ISI (Indian Standard Institution) mark is a standards-compliance mark for industrial products in India since 1950.
  • Mandatory ISI certification products consist of electrical appliances like switches, electric motors, wiring cables, heaters, kitchen appliances, etc., and other products like Portland cement, LPG valves, LPG cylinders, automotive tyres, etc. (Statement-4 is incorrect, as the ISI mark is mandatory for many industrial items.)

Q3. With reference to United Nations Climate Change Framework Convention (UNFCCC), consider the following statements:

1. The Conference of Parties (COP) is the apex decision-making body of the UNFCCC.
2. It was formed in 1994 to stabilize greenhouse gas emissions and protect the earth from the threat of climate change.
3. COP 27 was held in Sharm el-Sheikh, Egypt.

Which of the above statements is/are correct?

a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2 and 3 only

Answer: (D)

Explanation:

  • The Conference of Parties (COP) is the apex decision-making body of the United Nations Climate Change Framework Convention (UNFCCC). So, statement 1 is correct.
  • The UNFCCC was formed in 1994 to stabilize greenhouse gas emissions and to protect the earth from the threat of climate change. So, statement 2 is correct.
  • COP 27 was held in Sharm el-Sheikh, Egypt. So, statement 3 is correct.

Q4. Consider the following statement about “Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY).

1. It is new integrated food security scheme for providing food grains at subsidised rate to Antodaya Ann Yojna (AAY) & Primary Household (PHH) beneficiaries.
2. It will subsume the two subsidy schemes of Department of Food & Public Distribution (a) Food Subsidy to FCI (b) Food Subsidy for decentralized procurement states dealing with procurement, allocation and delivery of free food grains.

Which of the statement/s given above is/are correct?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Answer: (B)

Explanation:

Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY):

  • The Cabinet led by Hon’ble Prime Minister had approved new integrated food security scheme for providing free foodgrains to Antyodaya Ann Yojna (AAY) & Primary Household (PHH) beneficiaries. New scheme has been named as Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY). Implementation of the new scheme has started from 1st January 2023, benefitting more than 80 crore poor and poorest of poor people. (Hence option 1 is incorrect)
  • Keeping in view welfare of the beneficiaries and in order to maintain uniformity across the States, free foodgrains will be provided under PMGKAY for the year 2023 to all PHH and AAY beneficiaries, as per entitlement under NFSA. The integrated scheme will strengthen the provisions of NFSA, 2013 in terms of accessibility, affordability and availability of foodgrains for the poor.
  • For effective and uniform implementation of NFSA 2013, PMGKAY will subsume the two subsidy schemes of Department of Food & Public Distribution (a) Food Subsidy to FCI (b) Food Subsidy for decentralized procurement states dealing with procurement, allocation and delivery of free foodgrains to the states under NFSA. (Hence option 2 is correct)

As only 2nd statements is correct so correct option is (b).

Q5. Consider the following statements regarding the Laffer curve.

1. The Laffer curve illustrates a theoretical relationship between rates of taxation and the resulting levels of the government's tax revenue.
2. This suggests there is an optimum tax rate which maximizes total tax revenue.
3. An increase in tax rates always results in increasing the government’s tax revenue.

Which of the statements given above is/are correct?

A. 1 and 2 only
B. 1 and 3 only
C. 3 only
D. 1, 2 and 3

Answer: (A)

Explanation:

  • The Laffer curve illustrates a theoretical relationship between rates of taxation and the resulting levels of the government's tax revenue. Thus statement 1 is correct.
  • This theory suggests there is an optimum tax rate which maximizes total tax revenue. Therefore, statement 2 is also correct.
  • Laffer curve explains that with an increase in tax rates will increase the government’s tax revenue but that, at some point, when the rates become high enough, further increases in tax rates will decrease revenue. Thus statement 3 is NOT correct.