Daily UPSC Prelims Current Affairs – June 22, 2022 [Mock Test]
June 22, 2022 June 22, 2022
1. Terms, ‘Greenmail defense’, ‘Poison pill defense’, ‘Crown jewel defense’, ‘Pac-man defense’ pertain to which of the following?
[A] Ukrainian war strategy
[B] Strategy to tackle Covid-19
[C] Strategy against hostile takeover
[D] Strategy to remove space debris
Show Answer
Correct Answer: C [Strategy against hostile takeover ]
Notes:- Greenmail defense is the practice of buying enough shares in a company to threaten a hostile takeover so that the target company will instead repurchase its shares at a premium.
- Poison pill defense strategy is used by a target firm to prevent or discourage a potential hostile takeover by an acquiring company. Potential targets use this tactic in order to make them look less attractive to the potential acquirer.
- Crown Jewel defense mechanism involves the target company spinning off its crown jewel unit, or its most valued asset, in order to make the acquisition less desirable for the acquirer. The asset could be the unit that is the most profitable unit in the company or is important for future profitability or produces the flagship product of the company.
- The Pac-Man defense is a defensive mechanism used against the hostile takeover, wherein the target firm turns around the table and acquires the firm that has made the hostile bid or has initiated the takeover.
2. Consider the following statements:
- An oil bond is a promissory note issued by the government to the Oil Marketing Companies.
- Brent crude oil has high sulphur content.
- West Texas Intermediate is lighter due to its higher API gravity and sweeter due to lower sulphur.
Which of the statements given above are correct?
[A] Only 1 & 2
[B] Only 2 & 3
[C] Only 1 & 3
[D] 1, 2 & 3
Show Answer
Correct Answer: A [Only 1 & 2]
Notes:- An oil bond is an IOU (I Owe You),or a promissory note issued by the government to the OMCs (Oil Marketing Companies), in lieu of cash that the government would have given them so that these companies don’t charge the public the full price of fuel.
- Brent crude oil originates from oil fields in the North Sea between the Shetland Islands and Norway. Crude oil of this region contains a high percentage of sulphur which is good to extract diesel of good quality. Brent crude price is the international benchmark price used by the OPEC, since India imports primarily from OPEC countries, Brent is the benchmark for oil prices in India.
- West Texas Intermediate (WTI) is sourced from US oil fields, primarily in Texas, Louisiana, and North Dakota. It is used to make low-sulphur gasoline and low-sulphur diesel. It is lighter due to its lower API gravity and sweeter due to lower sulphur. American Petroleum Institute (API) gravity is an indicator of the density of crude oil or refined products.
3. Military equipment, ‘Saratov’, ‘Kunikov’, ‘Orsk’, ‘Moskva’ belong to which of the following countries?
[A] Ukraine
[B] Russia
[C] USA
[D] UK
Show Answer
Correct Answer: B [Russia]
Notes:- Saratov is Russia’s Alligator class landing ship. Saratov was launched in July 1964, commissioned in 1966 as Voronezhsky Komsomolets.
- Caesar Kunikov is a Project 775 large landing ship of the Russian Navy.
- Orsk was launched and commissioned in 1968 as Nikolay Obekov.
- Moskva, formerly Slava, was a guided missile cruiser of the Russian Navy. The ship was the lead ship of the Project 1164 Atlant class, named after the city of Moscow. It was considered the most powerful warship in the Black Sea region.
