1. RBI has recently raised concerns about ‘Algorithmic trading or High frequency trading’ in stock markets disturbing their stability. What is algorithmic trading?
a) using a computer program to trade in the stock market based on a certain set of instructions
b) using random electronic equity purchases in the stock market to make them more volatile
c) done by a big cartel of the stock market that buy or sell stocks based on previously agreed set of instructions
d) purchasing and selling stocks at a very high frequency
2. The Supreme Court has recently given a ruling against using Mediation in rape cases. Consider the following about mediation – an alternative dispute resolution mechanism.
1. Consent of all parties is required to start mediation.
2. Decision arrived after mediation can be enforced in a court of law. 3. Only a court of law can appoint the mediator.
Choose the correct answer using the codes below.
a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) All of the above
3. The BCIM corridor is one of the major joint economic initiatives of India and China. The BCIM corridor will pass through
1. Kunming
2. Mandalay
3. Xinjiang
4. Dhaka
5. Kolkata
Choose the correct answer using the codes below.
a) 1, 2, 4 and 5 only
b) 4 and 5 only
c) 1, 2, 3 and 5 only
d) 1, 2, 3 and 4 only
4. The issue of IIM autonomy has been in news lately. Consider the following about the governance of IIMs presently.
1. It has been established by executive order.
2. The MHRD has no say in the appointments of Directors of the IIMs.
3. No changes in the educational curriculum of IIMs can be made without approval from the government. Choose the correct answer using the codes below.
a) 1 and 2 only
b) 2 and 3 only
c) 1 only
d) 1 and 3 only
5. Which of the following benefits are being given to Pradhan Mantri Awas Yojana.
1. Grant for each house constructed under the scheme
2. Subsidy on the interest rates for housing loans
3. Scheme is applicable to lower income groups only
4. Transgender and widows will be given preference in the allocation of benefits. Choose the correct answer using the codes below.
a) 1, 2 and 3 only
b) 1 and 3 only
c) 2 and 4 only
d) All of the above
ANSWERS
Solution: a) http://www.thehindu.com/business/bad-loans-may-persist-for-a-while/article7354634.ece An algorithm is a specific set of clearly defined instructions aimed to carry out a task or process. Algorithmic trading (automated trading, black-box trading, or simply algo-trading) is the process of using computers programmed to follow a defined set of instructions for placing a trade in order to generate profits at a speed and frequency that is impossible for a human trader. The defined sets of rules are based on timing, price, quantity or any mathematical model. Apart from profit opportunities for the trader, algo-trading makes markets more liquid and makes trading more systematic by ruling out emotional human impacts on trading activities.
2. Solution: a) http://www.thehindu.com/todays-paper/tp-national/sc-has-ruled-out-mediation-in-rapecases/article7351655.ece The term “mediation” broadly refers to any instance in which a third party helps others reach agreement. More specifically, mediation has a structure, timetable and dynamics that “ordinary” negotiation lacks. The process is private and confidential, possibly enforced by law. Participation is process. These are some of the rules laid down by Delhi HC; Appointment of mediator/conciliator mediating between them. typically voluntary. The mediator acts as a neutral third party and facilitates rather than directs the (a) Parties to a suit or other proceeding may agree on the name of the sole mediator/conciliator for (b) Where, there are two or more sets of parties and are unable to agree on a sole mediator/conciliator, the Court may ask each party to nominate the mediator/conciliator or may nominate/appoint the mediator/conciliator, as it deems fit.
3. Solution: a) Xinjiang province is near the Northern border of India with China. BCIM corridor passes from theOne of the strategic factors driving the corridor is reduction of reliance on the Straits of Malacca, militarily dominated by the U.S. Mizoram would be connected with Myanmar’s port of Sittwe, through the Kaladan River, and the passage will provide all the landlocked north-eastern States access to the sea. Compared with the land route, Sittwe provides these States access to Kolkata project/article7355496.ece
4. Solution: c) http://www.thehindu.com/news/national/china-india-fasttrack-bcim-economic-corridorAs of now, IIMs function as autonomous societies and run as per their Memorandum of Association (MoA) that is different in case of each institute. The government does not have absolute say in the appointment of the directors, but normally the approval of the MHRD is required before appointing director in some of the IIMs. IIMs are free to change the educational curriculum as per the MOUs. However, if the change is strategic and very significant, the government may intervene. There is no clear cut role of the government in the MOUs. http://www.dnaindia.com/academy/report-bid-to-undermine-faculty-s-role-in-governance-of-iims
5. Solution: d) According to the terms of the Pradhan Mantri Awas Yojana, the government of India will undertake to construct about two crore houses by the year 2022. Each house provided under the scheme will involve a central grant of about INR 1 lakh which may go up to INR 2.3 lakhs. This will come as part of a 6.5 percent interest rate subsidy scheme (previous schemes had an interest rate subsidy of about 1 percent). This means that the applicants from lower income groups who avail of the housing scheme may apply for a housing loan with interest subsidy of 6.5 percent. The tenure or term for these housing loans may go up to 15 years and the total benefit received by such loan subsidy will add up to INR 1 to 2.3 lakh each. Currently housing loan interest rates are estimated at about 10.5 percent. The subsidy should, therefore be a major relief to applicants. The ‘Housing for All’ scheme will replace all previous government housing schemes such as the Rajiv Awas Yojana.