Economy Current Affairs Quiz/Questions-Answers January 2013, January 28-February 3

Get an insight about the economic events of the world by solving these quizzes. These quizzes have been developed taking into consideration the latest economic events to help in keeping up the pace with the competitive world.

1. Name the two PSUs, which were granted the Maharatna status by the Union Government of India in February 2013?
a) ONGC and Gail
b) NTPC and BHEL
c) BHEL and GAIL
d) ONGC and NTPC
Answer: (c) BHEL and GAIL

2. Match the following PSUs with the status granted to them?
i. Coal India Limited                     a. Navratna
ii. Hindustan Aeronautics Limited    b. Miniratna Category I
iii. Bharat Sanchar Nigam Limited   c. Miniratna Category I
iv. RITES Limited                          d. Maharatana
a) i&d, ii&a, iii&b and iv&c
b) i&c, ii&a, iii&b and iv&d
c) i&d, ii&b, iii&a and iv&c
d) i&a, ii&d, iii&c and iv&c
Answer: (a) i&d, ii&a, iii&b and iv&c

3. Rajasthan Royals was penalized with a fine amount of around 100 crore Rupees for violating the Forex laws in February 2013. Name the body that slapped the fine on the IPL team?
a) BCCI
b) Competition Commission of India
c) Enforcement Directorate
d) None of these
Answer: (c) Enforcement Directorate

4. Which of the following statements mentioned below are true?
i. The Union Government of India gave the Maharatna status to three PSUs- BHEL, AAI and GAIL on 1 February 2013. Granting Maharatna status to BHEL, AAI and GAIL will provide them with better functional and financial freedom and will also guarantee them with better valuation of the shares.
ii. Enforcement Directorate issued a penalty notice to IPL team Rajasthan Royals for violation of Forex Laws. The penalty notice was issued after investigating the matter for 2 years under the Foreign Exchange Management Act (FEMA).
iii. Maharatna firm has a capacity to take investment decision of around 10000 crore Rupees without taking assistance from the government. On the other hand, forms with Navratna status have this capability of 5000 crore Rupees.
iv. The Cabinet Committee on Economic Affairs (CCEA) in February 2013 gave its principle approval for the price pooling mechanism of coal. The mechanism includes cost blending of the domestic coal with the imported one to counterbalance price hike.
a) Statements ii, iii and iv are true
b) Statements ii and iv are true
c) Statements i and iii are true
d) Statement ii is only true
Answer: (b) Statements ii and iv are true

5. The Reserve Bank of India on 29 January 2013 slashed its key interest rates by 0.25 per cent and released 18000 crore rupees additional liquidity into the system to perk up growth through reduced cost of borrowing. Which of the following statements in context of the same is true?
i. RBI in its third quarter monetary policy review surprised the market by cutting short-term lending rate called repo, by 0.25 per cent to 7.75 per cent
ii. The Cash Reserve Ratio was slashed to 4 percent
iii.The repo rate cut will increase the cost of borrowing for individuals and corporate, whereas the reduction in CRR, which is the portion of deposits that banks have to park with RBI, would improve the availability of funds.
iv. the stance of monetary policy in this review is intended to provide an appropriate interest rate environment to support growth as inflation risks moderate
a) All the four statements are true
b) Statements i, ii and iv are true
c) Statements ii and iii are true’
d) Only statement iii is true
Answer: (b) Statements i, ii and iv are true