Daily Quiz – 16th Jan 2024 By adminJanuary 19, 2024Quiz Daily Quiz - 16th Jan 2024 Daily Quiz - 16th Jan 2024 1 / 5 Consider the following pairs:Area of conflict mentioned in news Country where it is locatedDonbas SyriaKachin EthiopiaTigray North YemenHow many of the above pairs are correctly matched? 1 only 2 only 1, 2 and 3 None Explanation:Donbas:The Donbas area, also known as the Donets Basin, is a region located in eastern Ukraine.It consists primarily of the two provinces, Donetsk and Luhansk, and is bordered by Russia to the east. The Donbas region is named after the Donets River, which flows through the area.Historically, the Donbas region has been a major industrial and coal mining hub. It has abundant reserves of coal, which has contributed to the development of heavy industries such as steel, machinery, and chemicals.Kachin:The Kachin area, also known as Kachin State, is a region located in northern Myanmar (Burma).It is one of the 14 administrative divisions of Myanmar and shares borders with China and India. The area is primarily inhabited by the Kachin people, an ethnic group indigenous to the region.The Kachin area has been characterised by ethnic tensions and armed conflicts between the Kachin Independence Army (KIA) and the Myanmar government forces. The KIA, which represents the interests of the Kachin people, has been fighting for greater autonomy and self-determination.Tigray:The Tigray region is a northernmost regional state in Ethiopia, located in the Horn of Africa.Tigray is bordered by Eritrea to the north, Sudan to the west, the Amhara region to the south, and the Afar region to the east.The Tigray region has faced significant challenges and conflict. In November 2020, a military conflict erupted between the Ethiopian federal government and the Tigray regional forces, resulting in widespread violence, displacement of people, and a humanitarian crisis. Explanation:Donbas:The Donbas area, also known as the Donets Basin, is a region located in eastern Ukraine.It consists primarily of the two provinces, Donetsk and Luhansk, and is bordered by Russia to the east. The Donbas region is named after the Donets River, which flows through the area.Historically, the Donbas region has been a major industrial and coal mining hub. It has abundant reserves of coal, which has contributed to the development of heavy industries such as steel, machinery, and chemicals.Kachin:The Kachin area, also known as Kachin State, is a region located in northern Myanmar (Burma).It is one of the 14 administrative divisions of Myanmar and shares borders with China and India. The area is primarily inhabited by the Kachin people, an ethnic group indigenous to the region.The Kachin area has been characterised by ethnic tensions and armed conflicts between the Kachin Independence Army (KIA) and the Myanmar government forces. The KIA, which represents the interests of the Kachin people, has been fighting for greater autonomy and self-determination.Tigray:The Tigray region is a northernmost regional state in Ethiopia, located in the Horn of Africa.Tigray is bordered by Eritrea to the north, Sudan to the west, the Amhara region to the south, and the Afar region to the east.The Tigray region has faced significant challenges and conflict. In November 2020, a military conflict erupted between the Ethiopian federal government and the Tigray regional forces, resulting in widespread violence, displacement of people, and a humanitarian crisis. 2 / 5 Which one of the following best describes the term "Merchant Discount Rate" sometimes seen in news? The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank. The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services. The charge to a merchant by a bank for accepting payments from his customers through the bank's debit cards. The incentive given by the Government to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards. Explanation:The merchant discount rate is a fee that merchants must consider when managing the overall costs of their business.Local merchants and e-commerce merchants will typically have varying fees and service level agreements.To accept debit and credit cards, merchants must set up this service and agree to the rate.Most merchants can expect to pay a 1% to 3% fee for payment processing of each transaction.Payment processors have well-established infrastructures and fee schedule arrangements in place to support all types of merchant payments. Explanation:The merchant discount rate is a fee that merchants must consider when managing the overall costs of their business.Local merchants and e-commerce merchants will typically have varying fees and service level agreements.To accept debit and credit cards, merchants must set up this service and agree to the rate.Most merchants can expect to pay a 1% to 3% fee for payment processing of each transaction.Payment processors have well-established infrastructures and fee schedule arrangements in place to support all types of merchant payments. 3 / 5 With reference to inflation in India, which of the following statements is correct? Controlling the inflation in India is the responsibility of the Government of India only The Reserve Bank of India has no role in controlling the inflation Decreased money circulation helps in controlling the inflation Increased money circulation helps in controlling the inflation Explanation:Inflation refers to the general increase in the prices of goods and services in an economy over a period of time.If the money supply increases than the economy's ability to produce goods and services, then inflation will also increase.During the high inflation period, the government can reduce the spending to decrease the money circulation in the country.Therefore decreased money circulation helps in controlling inflation.Sterilisation is the process under which the RBI absorbs excess liquidity in the economy. Explanation:Inflation refers to the general increase in the prices of goods and services in an economy over a period of time.If the money supply increases than the economy's ability to produce goods and services, then inflation will also increase.During the high inflation period, the government can reduce the spending to decrease the money circulation in the country.Therefore decreased money circulation helps in controlling inflation.Sterilisation is the process under which the RBI absorbs excess liquidity in the economy. 4 / 5 Consider the following statements:The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).The WPI does not capture changes in the prices of services, which CPI does.The Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.Which of the statements given above is/are correct? 1 and 2 only 2 only 3 only 1, 2 and 3 Explanation:The weightage of items in WPI is as follows-Primary article - 22.62 %Fuel and Power - 13.51 %Manufactured goods - 64.23 %While weightage of items in CPI is as follows-Food and Beverages – 45.86Housing – 10.07Fuel and Light – 6.84Clothing and Footwear – 6.53Pan, tobacco and intoxicants – 2.38Miscellaneous – 28.32WPICPIWeights of items are based on production values.Weight is based on average household expenditure taken from consumer expenditure data.Weightage of food group - 24.4%Weightage of food group is 39.06%It does not include servicesIt includes servicesIt reflects a change in averages prices for bulk sale of commodities at the wholesale levelIt reflects the average change in prices at retail level paid by consumerThe Reserve Bank of India (RBI) Governor, Raghuram Raja in 2014 announced that the central bank had adopted the new Consumer Price Index (CPI) (combined) as the key measure of inflation. Explanation:The weightage of items in WPI is as follows-Primary article - 22.62 %Fuel and Power - 13.51 %Manufactured goods - 64.23 %While weightage of items in CPI is as follows-Food and Beverages – 45.86Housing – 10.07Fuel and Light – 6.84Clothing and Footwear – 6.53Pan, tobacco and intoxicants – 2.38Miscellaneous – 28.32WPICPIWeights of items are based on production values.Weight is based on average household expenditure taken from consumer expenditure data.Weightage of food group - 24.4%Weightage of food group is 39.06%It does not include servicesIt includes servicesIt reflects a change in averages prices for bulk sale of commodities at the wholesale levelIt reflects the average change in prices at retail level paid by consumerThe Reserve Bank of India (RBI) Governor, Raghuram Raja in 2014 announced that the central bank had adopted the new Consumer Price Index (CPI) (combined) as the key measure of inflation. 5 / 5 With reference to the Indian economy, demand-pull inflation can be caused/ increased by which of the following?Expansionary policiesFiscal stimulusInflation-indexing wagesHigher purchasing powerRising interest ratesSelect the correct answer using the code given below. 1, 2 and 4 only 3, 4 and 5 only 1, 2, 3 and 5 only 1, 2, 3, 4 and 5 Explanation:Inflation is the rate of increase in prices over a given period of time.Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country.Inflation measures how much more expensive a set of goods and services has become over a certain period, usually a year.There are mainly two types of inflation: -Demand-pull inflation - This occurs due to an increase in aggregate demand in the economy.Cost-push inflation - This occurs when there is a rise in the price of raw materials, higher taxes, e.t.cDemand-pull inflation is mainly caused due to: -Depreciation of rupee.Low unemployment rate.Increased borrowing.Due to fiscal stimulus - It includes increased government consumption or lowering of taxes.When the government spends more freely, prices go up. Expansionary policies lead to more economic activity via low-interest rates, more money with the public etc. Asset inflation or Increase in Forex reserves– A sudden rise in exports forces a depreciation of the currencies involved.Higher purchasing Power - When consumers feel confident, they spend more and take on more debt. This leads to a steady increase in demand, which means higher prices.The rising interest rate - It decreases the money supply in the economy. This may result in a credit crunch in the economy. It is costly to borrow money in the economy and it leads to a decreased money supply. So, it can not cause demand-pull inflation in the economy Inflation-indexing wages - Inflation indexing wages, wages in the economy is linked to inflation which means wage moves as inflation changes in the economy. Such indexing is provided to reduce the effect of inflation on wages. For example - a worker is getting 100 rs as a wage and inflation in the economy increases to 5%, so the wage of the worker increases by 5% i.e. 105. So effective change in wages is zero and it does not increase/decrease purchasing power. So, it can not lead to a demand to pull inflation in the economy. Explanation:Inflation is the rate of increase in prices over a given period of time.Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country.Inflation measures how much more expensive a set of goods and services has become over a certain period, usually a year.There are mainly two types of inflation: -Demand-pull inflation - This occurs due to an increase in aggregate demand in the economy.Cost-push inflation - This occurs when there is a rise in the price of raw materials, higher taxes, e.t.cDemand-pull inflation is mainly caused due to: -Depreciation of rupee.Low unemployment rate.Increased borrowing.Due to fiscal stimulus - It includes increased government consumption or lowering of taxes.When the government spends more freely, prices go up. Expansionary policies lead to more economic activity via low-interest rates, more money with the public etc. Asset inflation or Increase in Forex reserves– A sudden rise in exports forces a depreciation of the currencies involved.Higher purchasing Power - When consumers feel confident, they spend more and take on more debt. This leads to a steady increase in demand, which means higher prices.The rising interest rate - It decreases the money supply in the economy. This may result in a credit crunch in the economy. It is costly to borrow money in the economy and it leads to a decreased money supply. So, it can not cause demand-pull inflation in the economy Inflation-indexing wages - Inflation indexing wages, wages in the economy is linked to inflation which means wage moves as inflation changes in the economy. Such indexing is provided to reduce the effect of inflation on wages. For example - a worker is getting 100 rs as a wage and inflation in the economy increases to 5%, so the wage of the worker increases by 5% i.e. 105. So effective change in wages is zero and it does not increase/decrease purchasing power. So, it can not lead to a demand to pull inflation in the economy. Your score isThe average score is 0% 0% Restart quiz