Daily Current Affairs MCQs for UPSC IAS Prelims - 2 Mar 2023

Welcome to the RAYACADEMY Daily Current Affairs MCQs! Our focus is to provide you with engaging and informative questions that primarily revolve around current affairs, derived from reliable sources such as 'The Hindu', 'Indian Express', and 'PIB'. Our MCQs test your understanding of factual and conceptual knowledge, which is essential for cracking the UPSC IAS and State PCS prelim exams.

Below are some of Today's Current Affairs MCQs. We hope you make the most of this initiative and wish you all the best in your preparation.

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Q1. Which of the following statements is/are correct about the Follow-on Public Offering (FPO)?

1)An FPO is a process wherein a company already publicly listed in the stock market issues additional shares to investors.

2)An FPO is similar to an initial public offering (IPO), except that an IPO refers to the issuance or sale of shares by a company to investors when it taps into the public market for the very first time.

3)An FPO can only be used by a company to raise equity capital for the first time.

4)An FPO allows existing shareholders to sell their shares and exit the company.

a) 1 and 2 only

b) 1, 2, and 4 only

c) 2 and 3 only

d) 1, 2, and 3 only

Answer: (b) 1, 2, and 4 only

Explanation:

An FPO is a process wherein a company already publicly listed in the stock market issues additional shares to investors. During an FPO, a company could issue fresh shares to investors, or existing shareholders in the company could decide to sell their shares to other investors. Hence statement 1 is correct.

An FPO is similar to an initial public offering (IPO), except that an IPO refers to the issuance or sale of shares by a company to investors when it taps into the public market for the very first time. An IPO is the first time a company goes public, while an FPO is a subsequent offering of shares to the public. Hence statement 2 is correct.

An FPO can be used by a company to raise equity capital for various reasons, such as to pay off debt or to improve their capital structure. It is not limited to the first-time equity capital raising. Hence statement 3 is incorrect.

FPOs can also allow existing shareholders to sell their shares and exit the company. This allows them to liquidate their investments in the company, and exit the company for various reasons like moving on to other business ventures, retirement, or portfolio management. Hence statement 4 is correct.

Therefore, the correct answer is (b) 1, 2, and 4 only.

Q2. Which of the following is true regarding the World Economic Forum (WEF)?

A. It is a government-led organization founded by Klaus Schwab.

B. The WEF annual summit takes place in Geneva, Switzerland.

C. The WEF is primarily funded by partnering corporations with an annual turnover of over $5 billion.

D. Major reports published by WEF include Global Education Report and Global Health Report.

Answer: C. The WEF is primarily funded by partnering corporations with an annual turnover of over $5 billion.

Explanation: The World Economic Forum (WEF) is a non-governmental lobbying organization founded by economist Klaus Schwab. The Forum's main event is its annual summit in Davos, Switzerland, where political and business leaders meet to discuss global issues. The WEF is primarily funded by its partnering corporations, which are generally global enterprises with an annual turnover greater than $5 billion. The WEF also partners with public subsidies. Major reports published by WEF include Global Competitiveness Report, Global IT Report, Global Gender Gap Report, Global Energy Transition Index, Global Risk Report, and Global Travel and Tourism Report.

Q3. What are AT1 bonds?

A) Bonds with a short maturity date issued by banks

B) Unsecured bonds with no maturity date issued by banks

C) Bonds secured by collateral issued by banks

D) Bonds that can only be repurchased by investors, not banks

Answer: B) Unsecured bonds with no maturity date issued by banks.

Explanation: AT1 bonds are unsecured bonds issued by banks that have no maturity date. They have a call option which allows banks to repurchase the bonds from investors. These bonds are used by banks to bolster their core or tier-1 capital. They are subordinate to all other debt and only senior to common equity. Mutual funds are among the largest investors in these perpetual debt instruments. However, if a bank is about to collapse and needs rescue, the Central bank can ask the bank to cancel its outstanding AT-1 bonds without consulting the investors. People invest in AT-1 bonds despite the risk because they provide higher rates.

Q4.Which of the following statements about the Mahabali Frog is incorrect?

1) It is also known as the Purple Frog

2) It remains underground most of the year except for 2-3 weeks during the monsoon when it comes out to mate

3) It has long hind legs that allow it to leap from one spot to another

4) Its short and muscular forelimbs with hard palms help it to burrow underground

A) Option 1 & 2 only

B) Option 3 only

C) Option 2 & 3 only

D) Option 1,2,3,4

Answer: B) It has long hind legs that allow it to leap from one spot to another

Explanation: The Mahabali Frog, also known as the Purple Frog, remains underground most of the year except for 2-3 weeks during the monsoon when it comes out to mate. It has very short hind legs, which do not allow it to leap from one spot to another. Its short and muscular forelimbs with hard palms help it to burrow underground. The species is endemic to the Western Ghats in India and prefers loose,damp, and well-aerated soil close to ponds, ditches, or streams. The major threat to it is habitat loss due to human encroachment. The Mahabali Frog is currently listed as Near Threatened on the IUCN Red List.

Q5. Which of the following statements about Savitribai Phule is/are correct?

1)She was India's first women teacher.

2)She belonged to the Dalit community.

3)She was married off at a young age of 10.

4)She established the first girls' school in Bhidewada, Pune, in 1848.

A) Option 1 & 2 only

B) Option 3 only

C) Option 2 & 3 only

D) Option 1,2,3,4

Answer: D

Explanation:

Savitribai Phule was India's first women teacher, a Dalit woman from the Mali community, born on January 3, 1831, in Maharashtra's Naigaon village. She was married off at the tender age of 10, and her husband, Jyotirao Phule, educated her at home and later admitted her to a teachers' training institution in Pune. Along with Jyotirao Phule, Savitribai established the first girls' school in Bhidewada, Pune, in 1848, which became the country's first girls' school.

Savitribai played an essential role as a social reformer, advocating inter-caste marriages, widow remarriage, eradication of child marriage, and sati and dowry systems, among other social issues. The Phules also adopted Yashwantrao, the child of a widow, whom they educated to become a doctor. In 1873, they set up the Satyashodhak Samaj, a platform open to all, irrespective of their caste, religion or class hierarchies, with the sole aim of bringing social equity.

Savitribai was also involved in relief work during the 1896 famine in Maharashtra and the 1897 Bubonic plague. She contracted the disease while taking a sick child to the hospital and breathed her last on March 10, 1897.

Savitribai Phule was also a prolific writer and published her first collection of poems, Kavya Phule (‘Poetry’s Blossoms’), at 23 in 1854. She published Bavan Kashi Subodh Ratnakar (‘The Ocean of Pure Gems’) in 1892. Her poems also pointed out the necessity of learning English.