Test: Current Affairs November 2020 - BPSC (Bihar) MCQ

Sectors which attracted maximum foreign inflows during 2019-20 include services ($7.85 billion), computer software and hardware ($7.67 billion), telecommunications ($4.44 billion), trading ($4.57 billion), automobile ($2.82 billion), construction ($2 billion), and chemicals ($one billion), the Department for Promotion of Industry and Internal Trade (DPIIT) data showed.

Foreign direct investment into India rose 13% to $49.97 billion in FY20 from $44.36 billion a year earlier.

Singapore remained the top source of FDI, accounting for $14.67 billion, followed by Mauritius at $8.24 billion.

Maharashtra garnered the highest share of FDI at 30% with investments clocking $7.26 billion. Karnataka and Delhi followed with 18% and 17% share, respectively.

In India, Brownfield investment is more dominant than in the world. If investments tend to be in the form of mergers and acquisitions, it is known as brownfield investment.

The Survey cited the case of Temasek Holdings Company in Singapore, a model that it said can be adopted to maximise government stake in CPSEs successfully.

In the model, the government can transfer its stake in the listed CPSEs to a separate corporate entity that would be managed by an independent board and would be mandated to divest the government stake in these CPSEs over time. "This will lend professionalism and autonomy to the disinvestment programme which, in turn, would improve the economic performance of the CPSEs," the Survey said.

The leverage ratio stands reduced to 4 per cent for Domestic Systemically Important Banks (DSIBs) and 3.5 per cent for other banks effective from the quarter commencing October 1, 2019.

"Both the capital measure and the exposure measure, along with Leverage Ratio, are to be disclosed on a quarter-end basis. However, banks must meet the minimum Leverage Ratio requirement at all times," RBI said.

The leverage ratio is defined as the capital measure divided by the exposure measure, expressed as a percentage. The capital measure is tier 1 capital, and the exposure measure includes both on-balance sheet exposure and off-balance sheet items.

The leverage ratio measures a bank's core capital to its total assets. The ratio uses tier 1 capital to judge how leveraged a bank is in relation to its consolidated assets. Tier 1 assets are ones that can be easily liquidated if a bank needs capital in the event of a financial crisis. So, it is basically a ratio to measure a bank's financial health. The higher the tier 1 leverage ratio, the higher the bank's likelihood withstanding negative shocks to its balance sheet.

The leverage ratio is used as a tool by central monetary authorities to ensure banks' capital adequacy and place constraints on the degree to which a financial company can leverage its capital base.

The reverse charge clause is the most powerful check inserted into the regulations by the architects of GST.

RCM intended to check tax evasion and expand the tax base. The first few months of GST rollout witnessed a sharp expansion in the indirect taxpayer base due to the reverse charge feature's presence.

The other impact of RCM was that smaller vendor who wished to supply to larger clients, voluntarily registered on the GST NETWORK. They were afraid that if unregistered, larger clients might spurn them.

OPEC meets 78% of India's crude oil demand, 59% of its LPG needs, and nearly 38% of LNG consumption.

Traditionally, OPEC nations offer bigger discounts on crude oil sold to western economies than eastbound cargoes.

P-note investments in Indian markets - equity, debt, hybrid securities and derivatives.

Major Export Destinations (2019-20): Iran, Saudi Arab, Iraq, UAE, Kuwait.

Basmati Rice production areas in India are in the states of J & K, Himachal Pradesh, Punjab, Haryana, Delhi, Uttarakhand and western Uttar Pradesh.

On February 15, 2016, the Agricultural & Processed Food Products Export Development Authority (APEDA), an autonomous organisation under the Department of Commerce in India, registered Basmati Rice as a product with Geographical Indication (GI).

As per RBI guidelines, the RRBs have to provide 75 per cent of their total credit under priority sector lending.

RRBs primarily cater to the credit and banking requirements of the agriculture sector and rural areas, focusing on small and marginal farmers, micro and small enterprises, rural artisans and weaker sections of the society. 

SDR allocations can play a role in providing liquidity and supplementing member countries' official reserves.

IMF member countries can borrow SDRs from its reserves at favourable interest rates, mostly to adjust their balance of payments to favourable positions.

Border hostilities potentially give India room to invoke the national security clause in the WTO rules. This would allow it to impose tariffs on imports from China while exempting other trading partners.