Daily Current Affairs MCQ: 22nd September 2024 - Humanities/Arts MCQ

The decline in private sector investment is largely attributed to the diminished willingness of banks to lend to the private sector. This has resulted in a growing credit gap, where the growth of credit is not keeping pace with deposit growth, leading to liquidity challenges for banks. A strong private sector investment is crucial for economic growth, especially in job creation. Interestingly, even with government spending on infrastructure, the private sector's contribution remains essential for balanced economic development.

In August 2024, India's trade deficit increased to $29.7 billion, approaching a near-record level. This widening trade deficit was primarily driven by a decline in exports, particularly in crucial sectors like petroleum and gems and jewelry, while imports surged. Understanding trade deficits is important as they can indicate economic health, influencing currency values and foreign investments. Interestingly, despite the trade deficit, India’s economy is projected to remain robust due to strong growth rates.

The Liquidity Coverage Ratio (LCR) guidelines are seen as a potential hindrance to credit expansion for Indian banks. These guidelines require banks to maintain a certain amount of high-quality liquid assets that can be quickly converted to cash in times of financial stress. While these regulations are designed to ensure financial stability, they can restrict the banks' ability to lend, thereby affecting overall credit growth. An interesting fact about LCR is that it was introduced as part of the Basel III framework following the financial crisis to enhance banks' liquidity positions.

The sixth Quad Leaders' Summit led to the launch of the Quad Cancer Moonshot initiative, which aims to address cancer in the Indo-Pacific region, initially focusing on cervical cancer. This initiative seeks to leverage investments and scientific knowledge from member countries to reduce the prevalence of cancer, showcasing the Quad's commitment to health and well-being in the region.

The primary goal of the Quad is to maintain a free and open international order governed by law in the Indo-Pacific region. This reflects the collaborative efforts of India, Australia, the US, and Japan to address regional challenges and ensure stability and security in international waters.

Under President Joe Biden, the significant development was the launch of the India-US initiative on Critical and Emerging Technology (iCET). This initiative signifies a commitment to enhancing technological collaboration, particularly in response to global challenges posed by rising powers like China, and reflects a strategic alignment between the two nations.

The Tirupati Balaji Temple is primarily dedicated to Lord Sri Venkateswara, who is considered an incarnation of the Hindu god Vishnu. This temple is one of the most significant pilgrimage sites in India and is renowned for its rituals and the devotion of its followers. Interestingly, it is also known for being one of the richest temples in the world, receiving immense donations from devotees.

The Tirupati Balaji Temple is built in the Dravidian architectural style, a distinctive South Indian style that is characterized by intricate stone carvings, towering gopurams (gateway towers), and expansive courtyards. This style has its roots in ancient traditions and showcases the rich cultural heritage of South India. An interesting fact about Dravidian architecture is that it often features elaborate sculptures that depict various Hindu deities and mythological stories.

A common practice among devotees at the Tirupati Balaji Temple is to donate their hair as an offering to the deity. This act of tonsuring symbolizes humility and devotion, and it is believed to bring blessings to the individual. The donated hair is often auctioned, and the proceeds are used for the temple's charitable activities. This tradition highlights the deep cultural significance of sacrifice and devotion in Hindu practices.

Indian households have increasingly shifted their investment behavior towards capital markets rather than traditional bank deposits. This change has been influenced by favorable market returns following the pandemic, leading to a reallocation of funds. Such behavioral shifts can significantly impact the banking sector and the overall economy, as they alter the dynamics of deposit creation and liquidity. An interesting aspect of this trend is that it reflects a broader global movement where individuals seek higher returns in a low-interest-rate environment, often at the cost of traditional savings methods.