Daily Current Affairs (MCQ) | Date 23.05.22

Daily Current Affairs (MCQ) | Date 23.05.22

Daily Current Affairs (MCQ) | Date 23.05.22

Q1. What is Economic Capital Framework (ECF) recently seen in news?

  1. Transparent method to determine commercial bank’s capital infusion requirements
  2. Fiscal Responsibility and   Budget Management framework provided for state fiscal management
  3. Methodology for determining the appropriate level of risk provisions for the Reserve Bank of India
  4. Framework for the Non-Banking Financial Company (NBFCs) risk management

 

Answer (c)

Explanation:

The Reserve Bank of India (RBI) has developed an Economic Capital Framework (ECF) to provide an objective, rule-based, transparent methodology for determining the appropriate level of risk provisions to be made under Section 47 of the Reserve Bank of India Act, 1934.

 

Q2. Consider the following statements abot the GST Compensation Cess

  1. The entire cess collected during the year is required to be credited to a non-lapsable GST Compensation Cess Fund
  2. The Fund is part of the Public Account of India and can be used for any purpose

Which of the above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

 

Answer (a)

Explanation:

The GST Compensation Cess Act, 2017 provides for a levy of cess for the purpose of providing compensation to the states for loss of revenue arising due to implementation of GST for a period specified in the Act.

As per the Act and the accounting procedure, the entire cess collected during the year is required to be credited to a non- lapsable Fund (the GST Compensation Cess Fund) which shall form part of the Public Account and shall be used for the purpose mentioned i.e., for providing compensation to states for loss of revenue. States are compensated bi-monthly from the accumulated funds in this account.

 

Q3. Which of the following was the largest source of FDI for India in 2021-22?

  1. Singapore
  2. US
  3. UAE
  4. Mauritius

Answer (a)

Explanation:

India received a record $83.57 billion foreign direct investment (FDI) in 2021-22 with about 2% year-on-year growth on the back of a rapidly growing information technology sector.

 

 

Top states

destination

Top Sources

Sector receiving FDI

Karnataka

Singapore

Computer hardware

software

and

Maharashtra

US

 

 

 

Q4. Which of the following sector received highest FDI in 2021- 2022?

  1. Banking and Finance
  2. Chemicals
  3. Medicine development
  4. Computer software and hardware

Answer (d)

Explanation:

India received a record $83.57 billion foreign direct investment (FDI) in 2021-22 with about 2% year-on-year growth on the back of a rapidly growing information technology sector.

 

 

Top states

destination

Top Sources

Sector receiving FDI

Karnataka

Singapore

Computer hardware

software

and

Maharashtra

US

 

Increasing consistently:

  1. India’s total FDI inflow has been on the rise consistently despite several geopolitical disruptions in recent It was $81.97 billion in 2020-21, $74.39 billion in 2019-20, and $62 billion in 2018-19, official data showed.
  2. India’s FDI inflows have increased 20-fold since FY 2003-04 when the inflows were $4.3 billion.
  3. The country is emerging as a preferred destination for foreign investments in the manufacturing sector. FDI equity inflow in the manufacturing sector jumped 76% in 2021-22 ($21.34 billion) compared to $12.09 billion in 2020-21.
  4. Computer software and hardware emerged as the top recipient sector of FDI equity inflows during 2021-22 with nearly 25% share.

Q5.   Consider the following statements about the Indo-Pacific Economic Framework (IPEF)

  1. The IPEF is a trade agreement
  2. IPEF is widely seen as an American initiative to compete with China’s economic and trade footprint in the region

Which of the above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

 

Answer (b)

Explanation:

  1. Ahead of the official launch of the Indo-Pacific Economic Framework (IPEF), the US said that a “wide-ranging and comprehensive” set of countries are set to join the initiative and it will represent a significant milestone in US engagement in the region.
  2. US acknowledged that the IPEF is not a trade agreement, but suggested that this was a “good thing”.
  3. IPEF is widely seen as an American initiative to compete with China’s economic and trade footprint in the region and compensate for Washington’s absence from the key trading arrangements in the region.
  4. The framework has four pillars — fair and resilient trade (digital, labour, environmental and other standards); supply chain resilience; infrastructure, decarbonisation and clean energy; and tax and anti-corruption.

Q6. Consider the following statements

  1. FDI has consistently increased in last 10 years
  2. These inflows have increased 20-fold since 2003-04
  3. FDI equity inflow in manufacturing sectors has increased by 76 per cent between 2021-22 2020-21

Which of the above statements is/are correct?

  1. 1 and 2 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3

 

Answer (d)

Explanation:

"India has recorded the highest ever annual FDI inflow of $83.57 billion in 2021-22," the ministry noted in a statement. It said that the foreign inflows are increasing despite challenges like a military operation in Ukraine and COVID-19 pandemic. These inflows have increased 20-fold since 2003-04 when the inflows were $4.3 billion only, it added. The ministry also informed that FDI equity inflow in manufacturing sectors has increased by 76 per cent in 2021-22 ($21.34 billion) compared to 2020-21 ($12.09 billion). FDI equity inflows stood at $58.77 billion in 2021-22 against $59.64 billion in 2020-21.