Daily UPSC Prelims Current Affairs – September 09, 2022
September 10, 2022 September 10, 2022
1. With respect to economics, consider the following statements:
- Twin deficit is the phenomenon when country faces both fiscal deficit and current account deficit simultaneously.
- Twin deficit may lead to currency depreciation and outflow of foreign investment.
- Taper tantrum leads to currency appreciation and inflow of foreign investment.
Which of the statements given above is/are correct?
[A] Only 1
[B] Only 2 & 3
[C] Only 1 & 2
[D] 1, 2 & 3
Show Answer
Correct Answer: C [Only 1 & 2]
Notes:- Correct. Twin deficit refers to the simultaneous occurrence of fiscal deficit (government spending exceeding revenue) and current account deficit (imports exceeding exports) in a country’s balance of payments.
- Generally correct. Twin deficits can potentially lead to currency depreciation if foreign investors lose confidence in the country’s economic prospects and reduce capital inflows. However, the impact on foreign investment is debatable – some argue deficits crowd out private investment while others suggest deficits may boost growth and investment.
- Incorrect. Taper tantrum refers to the sudden outflow of capital from emerging markets in 2013 when the US Federal Reserve announced plans to taper (reduce) its quantitative easing program. This led to currency depreciation and capital outflow in affected countries, not currency appreciation and inflow as stated.
2. With respect to the recently released Plastic Waste Management (Amendment) Rules, 2022, consider the following statements:
- Plastics have been classified into four categories.
- Provision of sale and purchase of surplus extended producer responsibility certificates.
- Establishment of a centralised online portal by Central Pollution Control Board (CPCB).
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: D [1, 2 & 3]
Notes:- Recently, the Ministry of Environment, Forest, and Climate Changeannounced the Plastic Waste Management (Amendment) Rules, 2022, which notified the instructions on Extended Producer Responsibility (EPR) for plastic packaging.
- According to the new rules, plastics have been classified into four categories — category one will include rigid plastic packaging; category two will include flexible plastic packaging of single layer or multilayer (more than one layer with different types of plastic), plastic sheets and covers made of plastic sheet, carry bags, plastic sachet or pouches.
- Category three will include multi-layered plastic packaging (at least one layer of plastic and at least one layer of material other than plastic) while plastic sheet or like used for packaging as well as carry bags made of compostable plastics will fall under category four.
- The guidelines allow for sale and purchase of surplus extended producer responsibility certificates.
- The government has called for establishing a centralised online portal by Central Pollution Control Board (CPCB) for the registration as well as filing of annual returns by producers, importers and brand-owners, plastic waste processors of plastic packaging waste.
3. Consider the following statements:
- Yu Shan is the highest mountain on or adjacent to the Tropic of Cancer.
- Milankovitch cycles describe the collective effects of changes in the Earth’s movements on its climate over thousands of years.
- Mahi River is the only river in India which crosses the Tropic of Cancer twice.
- Null Island is located in the Gulf of Guinea.
Which of the statements given above are correct?
[A] Only 1 & 3
[B] Only 1, 2 & 4
[C] Only 2, 3 & 4
[D] 1, 2, 3 & 4
Show Answer
Correct Answer: D [1, 2, 3 & 4]
Notes:- Equinox is a moment in time when the Sun crosses the Earth’s equator, which is to say, appears directly above the equator.
- The Tropic of Cancer is the most northerly circle of latitude on Earth at which the Sun can be directly overhead. Yu Shan is the highest mountain on or adjacent to the Tropic of Cancer.
- Milankovitch cycles describe the collective effects of changes in the Earth’s movements on its climate over thousands of years. The term was coined and named after a Serbian geophysicist and astronomer.
- Mahi River is the only river in India which crosses the Tropic of Cancer twice. Madhya Pradesh and Gujarat are the two States where the river crosses the line
- Null Island is the point on the Earth’s surface at zero degrees latitude and zero degrees longitude (0°N 0°E), i.e., where the prime meridian and the equator intersect. It is located in the Gulf of Guinea.
