RBI Grade B General Awareness and Current Affairs Flashcards

24 sample cards from the General Awareness and Current Affairs deck

Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.

1. What does CRAR's counterpart NPA stand for, and what is a 'twin balance sheet problem'?

   NPA = Non-Performing Asset. The twin balance sheet problem refers to over-leveraged corporate balance sheets coupled with stressed (bad-loan-laden) bank balance sheets, constraining investment and credit growth.

2. What is the difference between fiscal deficit and revenue deficit?

   Fiscal deficit = total expenditure minus total receipts (excluding borrowings); it shows total borrowing needs. Revenue deficit = revenue expenditure minus revenue receipts; it shows that current expenses exceed current income.

3. What is the FRBM Act and its significance?

   The Fiscal Responsibility and Budget Management Act, 2003, aims to ensure fiscal discipline by setting targets to reduce fiscal and revenue deficits, limit government borrowing, and improve macroeconomic management.

4. What is the Union Budget's classification into Revenue and Capital accounts?

   Revenue account covers recurring items (tax/non-tax receipts and revenue expenditure). Capital account covers one-time items affecting assets/liabilities (borrowings, loan recoveries, capital expenditure on asset creation).

5. Which constitutional article requires the presentation of the Annual Financial Statement (Union Budget)?

   Article 112 of the Constitution requires the President to lay the Annual Financial Statement (the Union Budget) before Parliament for each financial year.

6. What is the Economic Survey and who prepares it?

   An annual document reviewing the state of the economy, presented in Parliament a day before the Union Budget. It is prepared by the Department of Economic Affairs under the guidance of the Chief Economic Adviser (CEA).

7. What is GDP and how does it differ from GNP?

   GDP (Gross Domestic Product) is the value of all final goods and services produced within a country's borders. GNP (Gross National Product) is GDP plus net factor income from abroad (income earned by residents abroad minus income earned by foreigners domestically).

8. What is the difference between nominal GDP and real GDP?

   Nominal GDP is measured at current market prices including inflation. Real GDP is measured at constant (base-year) prices, removing the effect of inflation, giving a true measure of economic growth.

9. What is the GDP deflator?

   A measure of the price level of all domestically produced goods and services. GDP deflator = (Nominal GDP / Real GDP) x 100. It is a broad measure of inflation across the whole economy.

10. What is the difference between CPI and WPI?

    CPI (Consumer Price Index) measures retail-level price changes faced by consumers and is the RBI's headline inflation measure. WPI (Wholesale Price Index) measures price changes at the wholesale/producer level and excludes services.

11. What is the Gini Coefficient?

    A statistical measure of income or wealth inequality ranging from 0 (perfect equality) to 1 (perfect inequality). It is derived from the Lorenz curve.

12. What is the Human Development Index (HDI) and who publishes it?

    A composite index of life expectancy, education (mean and expected years of schooling), and per capita income (GNI per capita). It is published annually by the UNDP in the Human Development Report.

13. What does the World Bank's Ease of Doing Business measure, and what replaced it?

    It ranked economies on the regulatory environment for businesses. The World Bank discontinued it in 2021 and is replacing it with the Business Ready (B-READY) report.

14. What is the Financial Stability Report (FSR) published by the RBI?

    A biannual report (June and December) reflecting the collective assessment of the Financial Stability and Development Council (FSDC) sub-committee on risks to financial stability and the resilience of the financial system.

15. What is the Financial Stability and Development Council (FSDC)?

    An apex body for financial sector regulation and development, chaired by the Union Finance Minister, set up in 2010 to strengthen inter-regulatory coordination and promote financial stability.

16. What is the Narasimham Committee known for?

    The Narasimham Committee (I in 1991, II in 1998) recommended major banking sector reforms including reduction of CRR/SLR, prudential norms, NPA classification, capital adequacy norms, and the concept of asset reconstruction companies.

17. What was the role of the Bimal Jalan Committee (2019)?

    It reviewed the RBI's Economic Capital Framework and recommended the size of reserves the RBI should hold and the transfer of surplus/excess reserves to the government.

18. What is the IMF, and what is the SDR?

    The International Monetary Fund promotes global monetary cooperation and provides loans to member countries facing balance-of-payments problems. The Special Drawing Right (SDR) is its international reserve asset, valued on a basket of currencies (USD, EUR, CNY, JPY, GBP).

19. What is the BRICS grouping and what is its New Development Bank?

    BRICS originally comprised Brazil, Russia, India, China, and South Africa (since expanded). It established the New Development Bank (NDB), headquartered in Shanghai, to fund infrastructure and sustainable development projects.

20. What is the G20 and what is its significance for India?

    The Group of Twenty is the premier forum for international economic cooperation comprising 19 countries, the EU, and the African Union. India held the G20 Presidency in 2022-23, hosting the summit in New Delhi.

21. What is the difference between the Rajya Sabha and Lok Sabha in terms of money bills?

    A Money Bill (Article 110) can only be introduced in the Lok Sabha. The Rajya Sabha can only make recommendations within 14 days, which the Lok Sabha may accept or reject; it cannot amend or reject a Money Bill.

22. What are Fundamental Rights and where are they enshrined in the Indian Constitution?

    Justiciable rights guaranteed to citizens, enshrined in Part III (Articles 12-35). They include the Right to Equality, Right to Freedom, Right against Exploitation, Right to Freedom of Religion, Cultural and Educational Rights, and the Right to Constitutional Remedies.

23. What is the Coriolis effect and its relevance to geography?

    The deflection of moving objects (winds, ocean currents) due to the Earth's rotation - to the right in the Northern Hemisphere and to the left in the Southern Hemisphere. It influences wind patterns, cyclone rotation, and ocean currents.

24. What is carbon credit and the carbon market mechanism?

    A carbon credit is a tradable permit representing the right to emit one tonne of CO2 (or equivalent). Under cap-and-trade systems, entities that reduce emissions below their cap can sell surplus credits, creating a market incentive to cut greenhouse gas emissions.

What this deck covers

General Awareness and Current Affairs flashcards FAQ