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Current Affairs January 2024

Direction.

DIRECTIONS (Qs. 106-110) : Read the following passage carefully and answer the questions given below it.
The alarm bells should start ringing any time now. An important component of the economy has been sinking and needs to be rescued urgently. This critical piece is savings and, within this overall head, household savings is the one critical subcomponent that needs close watching and nurturing.
While it is true that one of the primary reasons behind the current economic slowdown is the tardy rate of capital expansion - or, investment in infrastructure as well as plant and machinery - all attempts to stimulate investment activity are likely to come to naught if savings do not grow. Without any growth in the savings rate, it is futile to think of any spurt in investment and, consequently, in the overall economic growth. If we source all the investment funding from overseas, it might be plausible to contemplate investment growth without any corresponding rise in savings rate. But that is unlikely to happen.
Within the overall savings universe, the subcomponent household savings is most critical. It provides the bulk of savings in the economy, with private corporate savings and government saving contributing the balance. The worrying factor is the nearstagnation in household savings over the last eight years or so. Whats even more disconcerting is the fact that household savings remained almost flat during the go-go years of 2004-08.
This seems to be counter-factual. There are many studies that show that there is a direct relationship between overall economic growth and household savings. So, at a time when Indias GDP was growing by over 9% every year, the household savings rate stayed almost constant at close to 23% of GDP. There was, of course, an increase in absolute terms, but it remained somewhat fixed as a proportion of GDP.
What is responsible for this contradictory movement? The sub-group on household savings, formed by the working group on savings for the 12th Plan set up by the Planning Commission and chaired by RBI deputy governor SubirGokarn, has this to say, ...a recent study had attributed the decline in the household saving ratio in the UK during 1995-2007 to a host of factors such as declining real interest rates, looser credit conditions, increase in asset prices and greater macroeconomic stability.
While recognising that one of the key differences in the evolving household saving scenario between the UK and India is the impact of demographics (dependency ratio), anecdotal evidence on increasing consumerism and the entrenchment of (urban) lifestyles in India, apart from the easier availability of credit and improvement in overall macroeconomic conditions, is perhaps indicative of some drag on household saving over the last few years as well as going forward. India has another facet: a penchant for physical assets (such as bullion or land). After the monsoon failure of 2009, and the attendant rise in price levels that has now become somewhat deeply entrenched, Indians have been stocking up on gold. Consequently, savings in financial instruments dropped while those in physical assets shot up. This is also disquieting for policy planners because savings in physical assets stay locked in and are unavailable to the economy for investment activity. There is a counter view that higher economic growth does not necessarily lead to higher savings. According to a paper published by Ramesh Jangili (Reserve Bank of India Occasional Papers, Summer 2011), while economic growth doesnt inevitably lead to higher savings, the reciprocal causality does hold true. It is empirically evident that the direction of causality is from saving and investment to economic growth collectively as well as individually and there is no causality from economic growth to saving and (or) investment.
Whichever camp you belong to, it is beyond doubt that savings growth is a necessary precondition for promoting economic growth. The Planning Commission estimates that an investment of $1 trillion, or over 50 lakh crore, will be required for the infrastructure sector alone. And, a large part of this critical investment will have to be made from domestic savings.

What is the correct answer?

4

How is household savings related to overall economic growth? Give your answer in the context of the passage?
(A) Overall economic growth is directly related to household savings.
(B) Overall economic growth is inversely proportional to household savings.
(C) There is no specific relationship between overall economic growth and household savings.

A. Only (C)

B. Only (B)

C. Only (A)

D. Either (A) or (B)

Correct Answer :

A. Only (C)


In the second paragraph it is said that, 'Without any growth in the savings rate, it is futile to think of any spurt in investment and, consequently, in the overall economic growth.' Therefore, option (a) overall economic growth is directly related to household savings is correct.

Related Questions

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4

Find the average of total no of staff in all the dept ?

A. 103.8

B. 108.3

C. 108.2

D. 108

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4

The difference between compound interest compounded every 6 months and simple interest after 2 years is 248.10. The rate of interest is 10 percent. Find the sum

A. 12000

B. 14000

C. 16000

D. 18000

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4

However, it is possible that the non -resident entity may have a business connection with the resident Indian entity. In such a case, the resident Indian entity could be treated as Permanent Establishment of the nonresident entity. ……………During the last decade or so, India has seen a steady growth of outsourcing of business processes by non residents or foreign companies to IT -enabled entities in India. Such entities are either branches or associated enterprises of the foreign enterprise or an independent India enterprise. The nonresident entity or foreign company will be liable to tax in India only if the IT -enabled BPO unit in India constitutes its Permanent Establishment.

A. The tax treatment of the Permanent Establishment in such a case is under consideration

B. How would the profit would be shared is not decided yet?

C. A lengthy and cumber some process requiring a lot of application of mind and revenue principles is ahead for the tax department of India

D. A new trend is seen in last decade.

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4

The angle corresponding to the female population in the states AP and M ?

A. 56.9 degree

B. 76.5 degree

C. 48.6 degree

D. 68.4 degree

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4

Please select the most appropriate option

A. The judges finally distributed the awards among the most active children talking at length among themselves.

B. The judges finally distributed the awards talking at length among themselves.

C. The judges, talking at length among themselves finally distributed the awards among the most active children.

D. The judges distributed finally talking at length among themselves the awards among the most active children.

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4

Which of the following is not a primary function of a bank?

A. Facilitating import of goods

B. Remittance facility

C. Safe custody of articles

D. Foreign Exchange

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4

A company reduces his employee in the ratio 14 : 12 and increases their wages in the ratio 16:18. Determine whether the bill of wages increases or not and in what ratio.

A. Decreases, 28: 27

B. Increases, 27:28

C. Decreases, 29:28

D. Increases, 28:29

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4

Statements: All seats are covers. No cover is bun. Some buns are roofs. Some sites are covers.
Conclusions:
I. All sites being buns is a possibility
II. All sites being roof is a possibility
III. Some sites are not buns.
IV. No seat is bun

A. Only II, III and either I or IV follow.

B. Only III follows

C. All follows.

D. Only II, III and IV follow

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4

Which of the following laptops does E own?

A. TOSHIBA

B. Lenovo

C. DELL

D. Samsung

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4

Please select the most appropriate option

A. Although I already knew the answer and he invited me to visit him often, since I just have seen her in the square, I was never determined to yield this point.

B. Although I have already known the answer and he invited me to visit him often but since I just have seen her in the square, I was not determined to yield this point.

C. Although I knew the answer already, and he has often invited me to visit him, since I just have seen her in the square, I am never determined to yield this point.

D. None is true.

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4

What is the main objective of the government to create the Union Budget?

A. It should meet the requirements of the society.

B. It should be under some fiscal constraints.

C. It should be growth oriented.

D. It should meet the requirements of a developed country.

What is the correct answer?

4

Who among the following India's Paralympic athletes has won the title of Gold Javelin F46 in Rio 2016 Paralympic Games?

A. Varun Singh Bhati

B. Deepa Malik

C. Amit Kumar Saroha

D. Devendra Jhajaria

What is the correct answer?

4

What is the ratio of total number of staff in ECE,EEE to the total no of students in CSE and IT ?

A. 14:1

B. 1:14

C. 1:12

D. 1:17

What is the correct answer?

4

Which among the following is an important circuitry in a computer system that directs the operation of the processor?

A. Memory

B. Address Bus

C. Accumulator

D. Control Unit

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4

The code for the word ' Table'

A. 26×A

B. 17%O

C. 14$A

D. 22$ E

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4

The Mumbai Stock Exchange was set up in ____________.

A. 1880

B. 1930

C. 1847

D. 1875

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4

Many of the people invited for a marriage at ABC Hotel fell ill due to food poisoning and were admitted to the hospitals.
I. The government should keep on hold marriages till further notice.
II. The hospitals should be advised to give good services to the effected people.

A. If only course of action I follows

B. If only course of action II follows

C. If either course of action I or II follows.

D. If neither course of action I nor II follows.

What is the correct answer?

4

A five digit number is formed with the digits 0,1,2,3 and 4 without repetition. Find the chance that the number is divisible by 5.

A. 3/5

B. 1/5

C. 2/5

D. 4/5

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4

Please select the most appropriate option

A. If you try to understand the concept in the class you will not only remember it but also will not be able to put to use while solving even the difficult exercises.

B. If you tried to understand the concept of the whole class, you will not only remember it, but also can put to use while solving even the difficult exercises.

C. If you tried to understand the concept in the class, you would not only remember it but also can put it to use while solving even the difficult exercises.

D. If you tried to understand the concept in the class, you would not only remember it but also could put it to use while solving even the difficult exercises.

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4

From the given options, choose the option that does not fit into the theme of the passage.

A. A look at the historical data on forecasts made by the IMF in its World Economic Outlook (WEO) reports seems to suggest that optimism bias may be the bigger culprit.

B. The large negative forecast errors in the recession years skewed the historical averages.

C. Over the past few years, the growth forecasts made by the International Monetary Fund (IMF) have displayed one consistent pattern

D. Has predicting the fate of the global economy become more difficult in a volatile post-crisis world, or does the IMF suffer from an inherent optimism bias?

What is the correct answer?

4

Who among the following works at the Apple ?

A. D and F

B. H and F

C. G and C

D. C and H

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4

Which e-commerce website has partnered with National Highways Authority of India (NHAI) to enable cashless payments at all national and city toll plazas?

A. Paytm

B. Mobikwik

C. Freecharge

D. Oxigen

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4

What is the difference between the no of players participating in Football in the year 2012 and the no of players participating in Cricket in the year 2015 ?

A. 1000

B. 2000

C. 2200

D. 1700

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4

Jayashree was habitually so docile and erratic that her friends could not understand her sudden hostile her employers.

A. accommodating, outburst against

B. erratic, envy of

C. truculent, virulence toward

D. hasty, annoyance toward

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4

Who is the mother of R?

A. Q

B. Z

C. Y

D. X

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4

I. 56×2 + 37x + 6 = 0
II. 66y2 13y 4 = 0

A. if x >= y

B. if x > y

C. if x < y

D. if x <= y

What is the correct answer?

4

The Nobel Peace Prize 2016 has been awarded to ______ .

A. Juan Manuel Santos

B. Oliver Hart

C. Bengt Holmstrom

D. Svetlana Alexievich

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4

AT&T designed its first commercial modem, specifically for converting digital computer data to analog signals for transmission across its long distance network. What is the name of the modem?

A. Telex

B. Memex

C. CompuServe

D. Dataphone

What is the correct answer?

4

(1444)12+56.0071.225 of 123

A. 5600

B. 6550

C. 6552

D. 5662

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4

5x + 2y = 31
3x + 7y = 36

A. x > y

B. x < y

C. x >= y

D. x <= y