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UPSC Essentials brings to you its initiative of subject-wise quizzes. These quizzes are designed to help you revise some of the most important topics from the static part of the syllabus. Each day, we will cover one new subject. Attempt today’s subject quiz on Economy to check your progress. Come back tomorrow to solve the MCQs on International Relations. Don’t miss checking the answers and explanations at the end of the quiz.
With reference to the exchange traded fund, consider the following statements:
1. It is a marketable security that tracks an index or a basket of assets like an index fund.
2. The traded price of an ETF changes only once per day.
3. The trading value of an ETF is based on the net asset value of the underlying stocks that an ETF represents.
4. ETFs have higher daily liquidity.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) Only three
(d) All four
With reference to the Bharat-NCAP, consider the following statements:
1. It is India’s independent safety performance evaluation protocol for automobiles.
2. It is designed to advance road safety and vehicle safety standards.
3. Maruti Suzuki became the first recipient of the safety rating for adult and child occupant protection as per Bharat-NCAP.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
With reference to the Indo-Pacific Economic Framework for Prosperity (IPEF), consider the following statements:
1. It aims to contribute to cooperation, stability, and prosperity in the region.
2. The Ministry of External Affairs is the nodal agency for the IPEF engagements.
3. India and United States are not the member countries of IPEF.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
Consider the following statements:
1. India is the world’s largest consumer of crude oil and depends on imports to meet less than 50 per cent of its requirement.
2. OPEC+ account for roughly 40 per cent of the world’s crude oil and 80 per cent of the globe’s oil reserves.
3. Russia is not a part of OPEC+.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
Consider the following:
1. Gold reserves
2. Special Drawing Rights (SDRs)
3. India’s Reserve Position in the International Monetary Fund
4. Foreign currency assets held by RBI
How many of the above are included in India’s foreign exchange reserves?
(a) Only one
(b) Only two
(c) Only three
(d) All four
FYI:
— Markets regulator Securities and Exchange Board of India (SEBI) has directed mutual fund houses to stop accepting any more inflows in schemes that invest in overseas exchange-traded funds (ETFs), starting April 1, 2024.
— The capital market regulator has asked asset management companies (AMCs) not to accept funds in mutual fund plans that invest in overseas exchange-traded funds (ETFs) as the upper limit of $1 billion for these investments is close to being breached.
— An ETF, or exchange traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Hence, statement 1 is correct.
— An ETF trades like a common stock on a stock exchange. The traded price of an ETF changes throughout the day like any other stock. Hence, statement 2 is not correct.
— The trading value of an ETF is based on the net asset value of the underlying stocks that an ETF represents. Hence, statement 3 is correct.
— ETFs typically have higher daily liquidity and lower fees than mutual fund schemes, making them an attractive alternative for individual investors. ETFs are considered to be more tax efficient compared to other mutual fund schemes. Hence, statement 4 is correct.
Therefore, option (c) is the correct answer.
FYI:
— Maruti Suzuki has applied for Bharat New Car Assessment Programme (Bharat-NCAP) safety ratings for some of its vehicles.
— Last year, Tata Motors’ SUVs Safari and Harrier became the first recipients of the safety rating for adult and child occupant protection as per Bharat-NCAP. Hence, statement 3 is not correct.
— Bharat-NCAP is India’s own independent safety performance evaluation protocol for automobiles. Hence, statement 1 is correct.
— Bharat-NCAP is benchmarked to the best-in-class global standards and the system is designed to advance road safety and vehicle safety standards beyond mandatory regulations. Hence, statement 2 is correct.
Therefore, option (b) is the correct answer.
FYI:
— The 14-member IPEF bloc, including India and the US, will organise an investor forum meet in Singapore on June 5-6, wherein domestic climate tech entrepreneurs and companies can win a chance to showcase and pitch their products to global investors. Hence, statement 3 is not correct.
— The Indo-Pacific Economic Framework for Prosperity (IPEF) was launched in May 2022 and includes 14 countries namely Australia, Brunei, Fiji, India, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the US and Vietnam.
— It provides a platform for these countries to collaborate on advancing resilient, sustainable, and inclusive economic growth.
— It aims to contribute to cooperation, stability and prosperity in the region. Hence, statement 1 is correct.
— The Department of Commerce is the nodal agency for the IPEF engagements, and the investor forum is managed by Invest India, the country’s investment promotion agency. Hence, statement 2 is not correct.
— The IPEF comprises four pillars of cooperation –
(i) Trade,
(ii) Supply Chain,
(iii) Clean Economy and
(iv) Fair Economy.
Therefore, option (a) is the correct answer.
FYI:
— India is the world’s third-largest consumer of crude oil and depends on imports to meet over 85 per cent of its requirement. Hence, statement 1 is not correct.
— India’s economy is sensitive to oil price volatility. Apart from inflationary pressures, high oil prices could have implications for India’s trade balance, foreign exchange reserves, the rupee, and the overall health of the economy.
— OPEC+ was established in 1960 by founding members Iran, Iraq, Kuwait, Saudi Arabia and Venezuela, OPEC has since expanded and now has 13 member states. With the addition of another 11 allied major oil-producing countries that include Russia, the grouping is known as OPEC+. Hence, statement 3 is not correct.
— The objective of the organisation is to “coordinate and unify the petroleum policies of its Member Countries and ensure the stabilisation of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry.”
— OPEC + accounts for roughly 40 per cent of the world’s crude oil and 80 per cent of the globe’s oil reserves. Hence, statement 2 is correct.
Therefore, option (a) is the correct answer.
FYI:
— India’s foreign exchange reserves rose for a fifth straight week to hit a record high of $642.63 billion as of March 22.
— India’s gross foreign exchange reserves comprise foreign currency assets of the Reserve Bank, gold held by RBI and Special Drawing Rights (SDRs) of the Government of India.
— India’s Reserve Position in the International Monetary Fund is not included as part of foreign exchange reserves as they may not be available on immediate demand.
— The RBI has the primary responsibility of collection, compilation and dissemination of data relating to foreign exchange reserves.
Therefore, option (c) is the correct answer.
Daily subject-wise quiz — Polity and Governance (Week 53)
Daily Subject-wise quiz — History, Culture, and Social Issues (Week 53)
Daily subject-wise quiz — Environment, Geography, Science and Technology (Week 53)
Daily subject-wise quiz — Economy (Week 52)
Daily subject-wise quiz – International Relations (Week 52)
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