Daily Current Affairs MCQs: 3rd February 2025 - Bank Exams MCQ

Small Modular Reactors (SMRs) are defined to have a maximum output of 300 Megawatts electric (MWe). This capacity is significantly smaller than that of conventional nuclear power plants, which often exceed 1,000 MWe. The smaller size of SMRs allows for easier transportation and installation, making them suitable for various applications, including remote locations. Additionally, SMRs can provide a substantial amount of low-carbon electricity, contributing to energy diversification and sustainability efforts.

President Trump has implemented a tariff rate of 10% on energy imports from Canada, including oil and natural gas. This decision reflects his administration's focus on protecting American interests in the face of perceived economic threats. Tariffs are often used as tools of trade policy to influence domestic markets and protect local industries from foreign competition. Interestingly, while tariffs can provide temporary protection for certain sectors, they can also lead to increased prices for consumers and retaliatory measures from affected countries.

Canada has responded to the U.S. tariffs by imposing 25% tariffs on $155 billion worth of U.S. imports. This retaliatory action highlights the interconnectedness of trade relationships and the potential for escalating trade disputes. Retaliatory tariffs are often implemented as a countermeasure to protect domestic industries from foreign tariffs and to signal discontent with trade policies. This situation underscores the complexities of international trade, where actions taken by one country can significantly impact economic relations with others.

The Pradhan Mantri Shram Yogi Maandhan Yojana (PM-SYM) is specifically designed to provide old-age protection and social security for unorganized workers. This scheme aims to ensure that individuals in this demographic can receive a minimum pension upon reaching the age of 60, thereby helping to secure their financial future as they age. An interesting fact about PM-SYM is that it operates on a 50:50 contribution model where the government matches the contributions made by the subscribers, which significantly enhances the pension benefits they receive.

The PM-SYM scheme is primarily aimed at ensuring financial security for unorganized workers in India, offering them a safety net as they transition into old age. This initiative acknowledges the vulnerabilities faced by this segment of the workforce and seeks to provide them with a reliable source of income during their retirement years. An interesting fact is that unorganized workers make up a significant portion of India's labor force, and many of them lack access to social security benefits, making such schemes crucial for their welfare.

The reduction in personal income tax is aimed at providing significant tax relief to the middle class, which leads to an increase in disposable income. This additional income allows individuals to spend more, potentially boosting consumer demand in various sectors such as retail, real estate, and automobiles. Higher consumer spending is crucial for driving economic growth, especially in a recovering economy. Additionally, this approach reflects a broader strategy to support economic activity and enhance the quality of life for citizens. An interesting fact is that tax cuts can often lead to a multiplier effect in the economy, where increased spending leads to higher business revenues, which can then result in further investments and job creation.

The total budget allocation for agriculture and allied activities in the Union Budget for 2025-26 is ₹1.71 lakh crore, which marks an increase from the previous year's allocation of ₹1.51 lakh crore. This increase reflects the government's commitment to enhancing the agricultural sector, which is crucial for India's economy as it supports a significant portion of the population and contributes to food security. An interesting fact is that agricultural development not only affects farmers but also has broader implications for rural development and the overall economic stability of the country.

The budget aims to enhance farmer profitability by focusing on improvements in post-harvest management. Effective post-harvest practices can significantly reduce waste and increase the value of agricultural products, ultimately leading to better income for farmers. Additionally, investing in sustainable agriculture practices and climate-resilient seeds is crucial for long-term health and productivity in the agricultural sector. An interesting fact is that over one-third of food produced globally is wasted due to inadequate post-harvest management, highlighting the importance of this focus in agricultural budgets.

The fiscal deficit target set for FY26 is 4.4% of GDP. This target reflects a commitment to managing public debt and indicates the government's strategy for fiscal consolidation. Fiscal deficit is an important economic indicator as it shows the total borrowing requirements of the government, and achieving a lower percentage can lead to greater financial stability and investor confidence. A key fact to note is that maintaining a fiscal deficit within manageable limits is crucial for sustaining economic growth and ensuring that public services can be funded without over-reliance on borrowing.

The budget aims to reduce the fiscal deficit from 4.9% to 4.4% of GDP, reflecting an effort to stabilize the economy while relying on optimistic revenue projections. This type of fiscal consolidation is important as it can lead to improved investor confidence and potential economic growth. A notable fact is that maintaining a lower fiscal deficit can help a country manage its debt levels more effectively, which is crucial for long-term economic sustainability.