P.T. Practice Question 12th Mar

Q. 1 Consider the following statements about Prompt Corrective Actions (PCA) of RBI:

  1. Prompt Corrective Action or PCA is a framework under which banks and NBFCs with weak financial metrics are put under watch by the RBI.
  2. RBI initiated this scheme for the first time in 2017.

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

Ans: D (Neither 1 nor 2)

Explanation

Statement 1 is incorrect as Prompt Corrective Action or PCA is a framework under which banks with weak financial metrics are put under watch by the RBI. The PCA framework deems banks as risky if they slip below certain norms on three parameters — capital ratios, asset quality and profitability.

Statement 2 is incorrect as the Reserve Bank’s PCA framework was introduced in December 2002 as a structured early intervention mechanism. Subsequently, the framework was reviewed by the Reserve Bank keeping in view the international best practices and recommendations of the Working Group of the Financial Stability and Development Council (FSDC) on Resolution Regimes for Financial Institutions in India (January 2014) and the Financial Sector Legislative Reforms Commission (FSLRC, March 2013). The Revised PCA Framework was issued by the Reserve Bank on April 13, 2017 and implemented with respect to the bank financials as on March 31, 2017.

Q. 2 ‘Fugaku’ was recently in the news. It is:

  1. World’s most powerful supercomputer.
  2. Covid vaccine made by Japanese pharmaceuticals.
  3. Island with high probability of volcanic eruptions.
  4. Disputed land between China and Japan.

Ans: A (world’s most powerful supercomputer)

Explanation:

The Japanese scientific research institute called RIKEN and Fujitsu started developing the “Fugaku” six years ago. It is the world’s most powerful supercomputers.

It is a key national technology that has been developed with the goal to achieve research results which ultimately will help in building a long-lived and healthy society, better energy use and disaster mitigation. It also aims to establish the government’s vision of making “ultra-smart Society 5.0”. The supercomputer has topped the top500 list, which is a “Supercomputer benchmark index”, for the second year in line.

Q. 3 Consider the following statements about Dhasan River:

  1. It is the right bank tributary of Yamuna river.
  2. The river originates in Uttar Pradesh and flows through to Madhya Pradesh.

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

Ans: D (Neither 1 nor 2)

Explanation

Statement 1 is incorrect as Dhasan river is a second order tributary of river Yamuna but an important tributary of river Betwa.

Statement 2 is incorrect as it originates in Madhya Pradesh and meets Betwa on the right bank in the district of Hamirpur in Uttar Pradesh. The river has been mentioned as Dashama in the ancient texts. Like most other rivers in India, Dhasan too has a holy status and is worshipped by the nearby villagers. The source of the river is located in Begumganj tehsil in the Raisen district of Madhya Pradesh. Following the topography of the land, the river flows from south to north till it finally meets the Betwa in Hamirpur in Uttar Pradesh. Of the total course of 365km, the river travels a major part that is about 240km within Madhya Pradesh.

Q. 4 Consider the following statements about UNESCO:

1.   UNESCO is responsible for coordinating international cooperation in education, science, culture and communication.

2. Its headquarter is in Paris.

3.     U.S.A and U.K. had earlier withdrawn from UNESCO.

Choose the correct alternative:

a. 1 and 2 Only

b.     2 and 3 Only

c.      1 and 3 Only

d.     All of the above

Ans: d (All of the above)

Explanation:

Statement 1 is correct as UNESCO is responsible for coordinating international cooperation in education, science, culture and communication. It strengthens the ties between nations and societies, and mobilizes the wider public so that each child and citizen:

• has access to quality education; a basic human right and an indispensable prerequisite for sustainable development;

• may grow and live in a cultural environment rich in diversity and dialogue, where heritage serves as a bridge between generations and peoples;

• can fully benefit from scientific advances;

• and can enjoy full freedom of expression; the basis of democracy, development and human dignity.

Statement 2 is correct as its headquarter is in Paris, France.

Statement 3 is correct as Some countries withdrew from the Organization for political reasons at various points in time, but they have today all rejoined UNESCO. South Africa was absent from 1957 to 1994, the United States of America between 1985 to 2003, the United Kingdom of Great Britain and Northern Ireland from 1986 to 1997 and Singapore from 1986 to 2007.