1. Why did the RBI hold an Open Market Operation (OMO) auction while liquidity was tight?
Answer: D. With the banking system short of liquidity for nine straight weeks, the RBI bought bonds through OMOs to supply longer-lasting funds.
2. In special circumstances, up to what amount can depositors of the troubled New India Co-op Bank withdraw under RBI's permission?
Answer: B. Customers may take out as much as ₹5 lakh for medical or personal emergencies, a figure that matches the deposit insurance cover.
3. SEBI has suggested fast-track Follow-on Public Offers (FPOs) for REITs and InvITs. What is the main purpose?
Answer: E. The proposal gives already-listed REITs and InvITs easier and faster access to capital markets, which should help liquidity and investor participation.
4. In what way does a Follow-on Public Offer (FPO) differ from an Initial Public Offering (IPO)?
Answer: A. A listed company uses an FPO to issue more shares and raise capital, whereas an IPO is when a company first sells its shares to the public.
5. How do the growth drivers of India and China compare?
Answer: C. Consumption makes up roughly 60.3% of India's GDP growth, while China has long given priority to investment of about 41.3% of GDP, which helped its per capita income rise faster.
6. Which of these is not a tool the RBI generally uses to manage liquidity in banks?
Answer: B. Fiscal policy belongs to the government rather than the RBI, which manages liquidity through OMOs, CRR changes, VRR auctions and forex swaps.
7. Why did Microsoft introduce its Majorana 1 chip?
Answer: D. The chip is aimed at improving quantum computing by lowering computational errors, which could affect AI, cryptography and medical research.
8. What is the chief aim of Phase-2 of the Prime Minister Internship Scheme (PMIS)?
Answer: C. Phase-2 widens the scheme to 115,000 internships spanning 25 sectors, working with firms such as ONGC, HDFC and Reliance to build skills among young people.
9. What was the Supreme Court's reasoning for staying the Lokpal order that brought High Court judges within its ambit?
Answer: E. The Court held that the Lokpal Act concerns public servants, whereas accountability of judges is handled by the judiciary's own internal oversight.
10. Which main hurdle stands in the way of India's $200 billion electronics export goal?
Answer: A. India's average electronics tariff is 9% against only 1% in the US, which makes it hard for Indian manufacturers to be competitive abroad.