22 June : Daily Current Affairs Quiz

Answer:  Option D - Kachin 

Explanation:

• The Kachin ethnic group resides in northern Myanmar, primarily in Kachin State, and has been engaged in armed conflict with the central government for greater autonomy and rights.
• This conflict has been ongoing for decades and has resulted in significant humanitarian concerns and displacement of Kachin communities.

Answer:  Option A -  Sittwe.

Explanation:

• The Kaladan Multimodal Project connects Kolkata port in India to Sittwe port in Myanmar.
• From Sittwe, the project involves river transport to Paletwa, then road transport to the India-Myanmar border, and finally further road connectivity to Lawngtlai in Mizoram.
• This project aims to enhance connectivity and trade between India's northeastern states and Southeast Asia, promoting economic development in the region.

Answer:  Option D - Structural reforms aimed at enhancing productivity 

Explanation:

• Structural reforms aimed at enhancing productivity is the most sustainable approach. These reforms address underlying issues in the economy that can hinder long-term growth.

Here is why other options are less relevant:

• A) Tight monetary policy with high interest rates: While this can help control inflation in the short term, it can also dampen economic growth over time. High interest rates discourage borrowing and investment, hindering long-term economic potential.
• B) Expansionary fiscal policy with increased government spending: This approach can stimulate economic activity in the short run. However, excessive government spending can lead to deficits and debt problems in the long run, jeopardizing stability.
• C) Currency devaluation to boost exports: Devaluation can make a country's exports cheaper in the global market, but it has temporary effects. It can also lead to inflation as imported goods become more expensive.

Answer:  Option A - Open market operations

Explanation:

• Open market operations involve buying or selling government securities in the open market to influence the money supply and interest rates.
• By adjusting the amount of money in circulation, central banks aim to stabilize inflation expectations.
• This tool is effective because it directly impacts liquidity conditions in the economy, influencing borrowing costs and overall economic activity, thereby managing inflationary pressures.

Here is why other options are less relevant:

• Reserve requirements are the minimum amount of reserves banks must hold against deposits. While they can affect monetary aggregates, they have a less direct impact on expectations.
• Discount rate is the interest rate that central banks charge banks for borrowing reserves. It can influence short-term lending rates, but its impact on expectations is less pronounced.
• Quantitative easing (QE) is a specific type of OMO where the central bank significantly increases the money supply by buying a large quantity of government bonds. While it can impact expectations, OMOs are a broader tool encompassing various buying and selling strategies for managing inflation.

Answer:  Option D - All of the above 

Explanation:

• Spain, Ireland, Norway, and Armenia have all formally recognised Palestine as a state.
• Recognition typically involves a country acknowledging Palestine's sovereignty and right to self-determination, contributing to diplomatic efforts aimed at achieving a two-state solution with Israel in the Israeli-Palestinian conflict.