Explore topic-wise InterviewSolutions in Current Affairs.

Correct option is B) degree

Correct option is E) didn’t/had

Correct option is D) distracted

Correct option is D) signature

A set of two goods that a consumer can buy with given income in his hand and prices of two goods.

Correct option is C) make up

Correct option is D) this work done

Correct option is E) mind

Correct option is C) reported

Correct option is B) take out

Correct option is D) on

Correct option is A) take

Correct option is D) take on

Given:

7 added to a number and initial number is multiplied by 2

Ratio of quantities = 3 ∶ 4

Calculation:

Let the initial number be x

7 is added to the number = (x + 7)

2 is multiplied to the number = 2x

Now, the ratio is 3 ∶ 4

∴ (x + 7)/2x = 3/4

⇒ 2x = 28

⇒ x = 14

Correct option is A) take off

a) Quantity demanded of a commodity by a buyer at a given price during a given period is called individual demand. Quantity demanded of a commodity by all the buyers is called market demand.  

(b) Change in demand due to change in own price of the given good is called change in quantity demanded. Change in demand of a good due to any factor other than the own price of the good is called ‘change in demand’

Given:

30% of water from bucket a is added to bucket b

Hence the water in the bucket b increases by 40%

Final ratio of water in the buckets a and c = 8 : 7 

Formula Used:

If the volume of a quantity increase by x%, 

New Quantity = [(100 + x)/100] × Initial Quantity

Calculation:

We are adding 30% of the quantity from the bucket a into bucket b and the quantity in bucket b increases by 40%,

⇒ [(30/100) × a] + b = [(100 + 40)/100] × b

⇒ 0.3a + b = 1.4 b

⇒ 0.3a = 0.4 b

Hence, a : b = 4 : 3

Now, a : b = 4 : 3 and a : c = 8 : 7

Also, to equate the two ratios, we can multiply the two parts of the ratio of a and b by 2 as:

a : b = (4 × 2) ∶ (3 × 2) = 8 ∶ 6

∴ a : b : c = 8 : 6 : 7

Correct option is B) somehow or other

Given:

The ratio of the price of two bicycles was 7 : 8.

The price of the first has risen by 30%. 

The price of the second increases by Rs.1,500.

The final ratio of their prices is 15 : 16.

Concept Used:

The increased value = (100 + percentage)/100 × Initial value

Calculation:

Let the price of first cycle be 7x.

Let the price of second cycle be 8x. 

After 2 years, the price of first cycle = (100 + 30)/100 × 7x = 9.1x

After 2 years, the price of second cycle = 8x + 1500 

According to the question;

The final ratio of their prices is 15 : 16.

⇒ 9.1x/(8x + 1500) = 15/16

⇒ 145.6x = 120x + 22500

⇒ 25.6x = 22500

⇒ x = 22500/25.6 = 5625/6.4

The price of second cycle = 8x = 8 × 5625/6.4 = Rs.7031.25

∴ The price of second cycle is Rs.7031.25.  

Corruption 

Yesterday we had a debate about corruption. Of course, everybody was against it, particularly in Third World countries where it undermines economic progress and social and political institutions. But when it comes to business some people weren’t so sure. Corruption is often hidden in the form of fees or taxes or commissions. If these are needed to help get the business instead of your competitor, then a little flexibility is needed.

Fortunately, I was faced with this very early in my business career. I told their Lordships a little cautionary tale. My company developed some new technology in the textile industry and the way it could be used in many countries was through licensing. On one occasion, I had to convince an official to give us a permit. In his bookcase were copies of Dickens, Shakespeare, the Oxford English Dictionary and so I complimented him on his interest in English literature. He looked at me and handed me a copy of Dombey and Son. I opened it up and inside was a cutout which exactly fitted American dollar bills.

As I said in the debate, I am not sure whether it was my distaste for corruption, my uncertainty about the law, my concern for our reputation or my love of books, but this deal never did go through.

However, we did sell that technology in 23 other countries and later several people told me that they bought our license instead of others exactly because we did not pay bribes. This gave them more confidence that our technology would work.

It was the cash flow from these licenses that helped the early business grow. It also convinced me that a strong ethical culture is good for a business.

This is why we should stop watering down the Bribery Act and bring it into force now.

(a) Her parents are a hard-working and extremely self-contained couple. Even though her family is poor, barely managing the essentials her father teaches her how to live and maintain dignity and self respect.

(b) According to author, to live and maintain dignity and selfrespect is the most treasured family value till today.

(c) They were large-hearted, inviting village folk passing by to have tea at their home, and gave grain to the sadhus and pandits who came to the house.

(d) She was the third child in the family – girl, boy, girl, girl and boy in that order – and quite a rebel. She developed a tendency to ask questions and was not satised with the customary way of life for a girl-child.

(e) When she found her elder brother, Bachchan, encouraging her youngest brother, Raju, to make up mountaineering she thought, why not her? she found that my brothers were always getting preferential treatment and all opportunities and options were open to them.

(f) They considered themselves to be born mountaineers as they had to go up and down mountain slopes for their daily livelihood and even for routine work.

(g) She would look curiously at foreign backpackers passing by my village and wonder where they were going. She would even invite them to her house and talk to them to learn more about their travels.

Correct option is B) in

At the stroke of the hour on midnight of 9th November 2016, India lost 86% of its monetary base. The print, electronic and social media has been praising Prime Minister’s masterstroke by which he has reportedly destroyed the base of corruption in India. In this single move, the Government has attempted to tackle all the three issues affecting the economy, a parallel economy, counterfeit currency in circulation and terror financing. There is no doubt that Prime Minister has pulled out a major coop and substantially enhanced his reputation as a strong leader.

Views and Counterviews: 

The idea of demonetization is good but it has to be taken into consideration that most of the black money is kept in the form of.land, buildings or gold or kept abroad. What is in cash constitutes only 4% of the total amount of black money on which taxes are not being paid.

Out of this, a lot of money is in circulation in an everyday transaction like if someone is building a house; the bill is not paid through banks for sand, bricks, etc. This money goes into the other systems though it has been drawn from bank. These things will come under control with this step.

Small farmers, sellers, merchants, daily wage labourers and traders are suffering because of lack of proper planning, intelligence and foresight such as recaliberation of ATM machines. There was need to pile up enough 100 Rupee notes and other smaller denomination notes in the market before taking this step. It is being said by critics that this step was taken only to bolster the image of the Prime Minister as he has been unable to deliver on GDP growth, inflation and bringing the black money from abroad.

Demonetization is an established practice in monetary policy to tackle black money. The Prime Minister has explained why this is a financial surgical strike. It was meant to be suddenly implemented. In the past, demonetization has taken place twice but it fails because the idea is to tackle the black money existing in circulation. This is not to tackle corruption per se or the Government is not saying that 100% corruption will be tackled. If announcement and time would have been given, this step might not have been successful in controlling black money and counterfeit currency in circulation coming from Pakistan, Nepal or other countries.

People are facing problems because the limit of withdrawal has not been kept at a higher level. If this would have been kept at a higher level, there were chances that the recycling of black money might begin. The ideal money in circulation has to come to the banking channels.

It is also being said that what is being attempted is replacement of currency and not demonetization itself which was unnecessary. This is a terrible setback for the international standing of the Indian economy. At this time, the economy is struggling with slowdown. There is demand sluggishness in the economy leading to practically no private sector investment and stagnant industrial growth. If we look at the farm sector, this is the harvest time. Farmers generally deal in cash and India is also largely a cash economy. The cash transactions in this economy are far more than the total number of electronic transactions done on a daily basis. In the tribal heartland of the country, the poor people through middlemen are getting their currencies exchanged for Rs 300 or Rs 400 because of lack of proper information which is hitting them.

The stock of the black economy that constitutes a major part of the GDP is significant. Even if 50% of this amount is withdrawn, the kind of relief that RBI will get on its liabilities and the sort of deposits commercial banks will get will lead to a rise in the deposit and later on there will be decrease in lending rates plus fiscal deficit. The black money in circulation is like a steroid in the economy which keeps the demand going and gives a feeling that everything is working well. The problem is that investment is not taking place in the economy and the rate of growth of capital formation is down. The only way to bring this up is to divert more funds into investments which will happen when the cost of capital comes down.

Conclusion: 

So far, it can be said that this is a historical step and should be supported by all. One should look at the bigger picture which will definitely fetch results in the long term. This is what the people have been asking for a long time which has finally happened.

a) Both the statements are true.

1. The vacation in Kodaikanal will be enjoyed by Mala.

2. This quarrel must have been triggered by our friends.

3. The truth of his testimony has been verified by the police.

a) Cash Reserve Ratio

Mala : Hi Mary. How are you? (Greeting)

Mary : I’m fine. What about you? 

Mala : Fine. I learnt that you have got a special scholarship. Congratulations! (Congratulating) 

Mary : Yes, Mala, thank you. It’s given taking into consideration my contribution to theatrical activities. 

Mala : Don’t you feel that theatre has lost its relevance? 

Mary : No, not at all. I think it is still guite relevant. (Disagreeing)

Mala : Anyway, your achievement Is unmatched.

Mary : Thank you. I have to leave now. See you soon. (Leave taking)

Mohan : Hi Ramesh. Good morning. 

Ramesh : Good morning Mohan. (Responding to greeting)

Mohan : Can T borrow your cell phone for a moment? (Requesting) 

Ramesh : Sure, no problem. You can use it. (Offering)

Mohan : It will only be a minute or two.

Ramesh : Take your time. No rush. 

Mohan : Thank you. (Expressing gratitude)

Rama : Hey, can you help me with the homework? (Requesting) 

Susan : I’d be glad to help out. Which part doyou find difficult? (Enquiring about difficulty)

Rama : I don’t understand this equation. Would you mind explaining it to me? 

Susan : I will definitely help you. Don’t worry. (Assuring help)

Rama : Thanks a lot! (Expressing gratitude)

Functions of Reserve Bank of India 

(1) Issue of Notes : The Reserve Bank has the monopoly of note issue in the country. It has the sole right to issue currency notes of various denominations except one rupee note. The Reserve Bank acts as the only source of legal tender money because the one rupee note issued by Ministry of Finance are also circulated Through it. The Reserve bank has adopted the Minimum Reserve system for the note issue since 1957, it maintains gold and foreign exchange reserves of Rs. 200 crore, of which at least Rs. 115 crore be in gold. 

(2) Banker to the Government : The second important function of the Reserve Bank is to act as the banker, Agent and Adviser to the Government. It performs all the banking functions of the state and central Government on matters related to economic and monetary policy. It also manages the public debt for the government.

(3) Banker’s Bank : The Reserve Bank Performs the same function for the other banks as the other banks ordinarily perform for their customers. It is not only a banker to the commercial banks, but it is the lender of the last resort. 

(4) Controller of credit : The Reserve Bank undertake the responsibility of controlling credit created by the commercial banks. To achieve this objective it makes extensive use of quantitative and qualitative techniques to control and regulate the credit effectively in the country. 

(5) Custodian of Foreign Reserves : For the purpose of keeping the foreign exchange rates stable the Reserve Bank buys and sells the foreign currencies and also protects the country’s foreign exchange funds. 

(6) Other Functions : The bank performs a number of other development works. These works include the function of clearing house arranging credit for agriculture, ( which has been transferred to NABARD) collecting and Publishing the economic data, buying and selling of Government securities and trade bills, giving loans to the Government buying and selling of valuable commodities etc. it also acts as the representative of Government in I.M.F. and represents the membership of India.

Education, according to Babar’s father, is man’s true religion. 

c) Managed Floating Exchange Rate

Demand of goods changes due to change in price of the goods but changes in demand are not uniform in all cases. Law of Demand is only a ‘ Qualitative statement ‘ as it does not explain the quantity of change in demand due to change in price. It only explains the direction of the change. ‘ Elasticity of Demand ‘ is an effort by economist to present law of demand in form of ‘ Quantitative statement ‘. We can say that, other things being equal, elasticity of demand expresses change in quantity of demand relative to change in price of goods. Points of difference between Law of Demand and Elasticity of Demand are :

(a) Law of demand is a ‘ qualitative statement ‘ which expresses the change in direction of demand due to change in price of the goods while elasticity of demand is a ‘ Quantitative statement’ which measures the quantitative change in demand of goods due to price change.

(b) Law of Demand in general conditions, indicates inverse relation between price of goods and demand for it while elasticity of demand can be Positive or negative.

(c) Law of Demand expresses only price demand relationship, while elasticity of demand can also measure change in income, related goods, etc.

d) To issue coins and one rupee note

c) Statement 1 is true and Statement 2 is false

Answer is b) i and iii

Distinction between Micro and Macro Economics :

Main characteristics of ‘ Balance of Payments ‘ are :

(1) Systematic Record - It is a record of payments and receipts of a country related to its import and export with other country.

(2) Fixed Period of Time – It is an account of a fixed period of time generally a year.

(3) Comprehensiveness – It includes all types of visible items, invisible items and capital transfers.

(4) Double Entry system – Payments and receipts are accounted on the basis of double entry system.

(5) Self – balanced – Double entry system itself keeps balance of payments as balanced.

(6) Adjustment of differences – Whenever difference arises between total receipts and payments, This disequilibrium needs to be adjusted.

Bread, shelter and fire. By this D.H. Lawrence means the basic necessities of life without which man cannot survive.

For economic development government should put a control on revenue deficit. A high revenue deficit warns the government either to cut its expenditure or increases its tax and non-tax receipts. But in a country like India, where people are poor, it is difficult to force them to pay more taxes. In such a situation, revenue deficit can be made up either through borrowing or disposal of assets, i.e., disinvestment. While borrowing creates liability for the government, disinvestment reduces her assets. A government should try to strike a proper balance between its assets and liabilities otherwise the financial system of the economy will be destabilised.

Bread, shelter and fire. By this D.H. Lawrence means the basic necessities of life without which man cannot survive.

Gross national product is not only related to the value of final products produced by the residents of the country within the country ‘s territory but also ads net factor income from abroad. Thus, Gross National Product at market price (GNP_MP) is the market value of the final goods and services produced within the domestic territory of a country by the normal residents during an accounting year along with net factor income earned from abroad.

GNPMP = GDP + Net Factor Income from Abroad

(b) trees are not treated as objects of defilement

Education, according to Babar’s father, is man’s true religion. 

Answer: in a tree.

(b) trees are not treated as objects of defilement

A fifty paise coin.

(a) get water to his village

The visitor approached Mara for some water from the tank as his village was the farthest from the king’s domain and crops parched up and cattle were dying of drought.

The Goddess instructed Mara to build a tank for Veda so that Veda found a home.

Her Children