Daily UPSC Prelims Current Affairs – August 23, 2022 [Mock Test]
August 24, 2022 August 24, 2022
1. Identify the concept from the statements given below:
- It is sanctioned against government securities.
- It is around 100 basis points higher than the repo rate.
- RBI revises it to strengthen the value of rupee, when required.
Choose the correct answer using the codes given below:
[A] Reverse Repo Rate
[B] Statutory Liquidity Ratio
[C] Cash Reserve Ratio
[D] Marginal Standing Facility
Show Answer
Correct Answer: D [Marginal Standing Facility ]
Notes:- Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation.
- Statutory liquidity ratio (SLR) refers to the minimum percentage of deposits that needs to be maintained by commercial banks in the form of liquid assets, cash, gold, government securities, etc. SLR is essentially a portion of the bank’s Net Demand and Time Liabilities (NDTL) or total demand deposits and time-based deposits. SLR is used to regulate inflation and maintain cash flow in the economy.
- Cash reserve ratio (CRR) is a portion of a commercial bank’s total deposits that needs to be maintained at the central bank of the country. When CRR is increased, the cash reserves of commercial banks are depleted which limits their lending capacity. This reduces borrowings and helps in controlling inflation.
- Marginal Standing Facility (MSF) is a system of the Reserve Bank of India that allows scheduled commercial banks to avail funds overnight. RBI has introduced this provision to help scheduled banks when inter-bank liquidity completely dries up and they are in urgent need of money. MSF is sanctioned against government securities and the MSF rate is around 100 basis points or one percent higher than the repo rate. These loans fall under RBI’s liquidity adjustment facility or LAF. The maximum amount that can be availed under MSF is a percentage of the bank’s NDTL or net demand and time liabilities. Banks can use their SLR or statutory liquidity ratio to take loans under MSF. RBI also revises the MSF rate to strengthen the value of rupee, when required. Monetary standing facility was introduced by the RBI as a provision for banks to avail overnight funds during a revision of the country’s monetary policy in 2011-12.
2. Which of the following newly designated Ramsar sites in India are located in Odisha?
- Ansupa lake
- Hygam Wetland Conservation Reserve
- Tampara Lake
- Kanjirankulam Bird Sanctuary
Choose the correct answer using the codes given below:
[A] Only 1 & 2
[B] Only 2 & 3
[C] Only 1 & 3
[D] Only 2 & 4
Show Answer
Correct Answer: C [Only 1 & 3]
Notes:- Tampara Lake, Hirakud Reservoir and Ansupa Lake in Odisha;
- Yashwant Sagar in Madhya Pradesh;
- Chitrangudi Bird Sanctuary, Suchindram Theroor Wetland Complex, Vaduvur Bird Sanctuary and Kanjirankulam Bird Sanctuary in Tamil Nadu;
- Thane Creek in Maharashtra;
- Hygam Wetland Conservation Reserve and Shallbugh Wetland Conservation Reserve in Jammu and Kashmir.
3. Consider the following statements:
- Drugs under schedule K are exempted from requiring a doctor’s prescription.
- Paracetamol, benzoyl peroxide, clotrimazole are schedule K drugs.
Which of the statements given above is/are correct?
[A] Only 1
[B] Only 2
[C] Both 1 & 2
[D] Neither 1 nor 2
Show Answer
Correct Answer: A [Only 1]
Notes:- The Union Health Ministry has suggested amendments to the Drugs Rules, 1945, to bring 16 medicines under Schedule K for providing exemptions from requiring a doctor’s prescription so that they can be sold over-the-counter by retail sellers under a valid license.
- Those 16 medicines include Povidone Iodine, an antiseptic and disinfectant agent; Chlorohexidine mouthwash for gingivitis, Clotrimazole an antifungal cream; Dextromethorphan Hydrobromide lozenges for cough; analgesic ointment Diclofenac; Benzoyl peroxide which is an antibacterial for acne; Diphenhydramine capsules, an antihistaminic and antiallergic drug; Paracetamol; some nasal decongestants and laxatives.
