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Daily-mcqs 07 Aug 2026

Current Affairs MCQs for UPSC & State PSC Exams 07 Aug 2026

Current Affairs MCQs for UPSC & State PSC Exams

Q1:

Consider the following statements regarding the Liquidity Adjustment Facility (LAF):

It was introduced based on the recommendations of the Narasimham Committee II.

The Standing Deposit Facility (SDF) is a collateral-free tool that acts as the lower bound of the LAF corridor.

The Reverse Repo Rate injects short-term liquidity into the banking system against government securities.

Which of the statements given above is/are correct?

A: 1 and 2 only

B: 2 only

C: 2 and 3 only

D: 1, 2, and 3

Show

Answer: A

Explanation:

Statement 1 is correct: The LAF was introduced by the RBI in June 2000 following the recommendations of the Narasimham Committee II on banking sector reforms.

Statement 2 is correct: The Standing Deposit Facility (SDF) is a collateral-free liquidity absorption tool that serves as the floor (lower bound) of the LAF corridor.

Statement 3 is incorrect: The Reverse Repo Rate is used by the RBI to absorb excess liquidity from commercial banks, not inject it. The Repo Rate is used to inject liquidity.

Q2:

With reference to the Monetary Policy Committee (MPC) of India, consider the following statements:

It is a statutory body established under the Reserve Bank of India Act, 1934.

The committee consists of eight members, with the Union Finance Minister acting as the Chairperson.

In the event of a tie during voting, the RBI Governor holds a casting vote.

Which of the statements given above is/are correct?

A: 1 and 2 only

B: 1 and 3 only

C: 2 and 3 only

D: 1, 2, and 3

Show

Answer: B

Explanation:

Statement 1 is correct: The MPC is a statutory body constituted under Section 45ZB of the RBI Act, 1934.

Statement 2 is incorrect: The MPC is a six-member body (not eight), and the RBI Governor serves as the Chairperson, not the Union Finance Minister.

Statement 3 is correct: Decisions are made by a majority vote, and the RBI Governor has a casting vote in the case of an equal split.

Q3:

With reference to the Reserve Bank of India's decision to restart licensing of Urban Cooperative Banks (UCBs), consider the following statements:

1.   Urban Cooperative Banks operate on the principle of "one member, one vote", irrespective of shareholding.

2.   UCBs operating across multiple states are registered under the Multi-State Cooperative Societies Act, 2002.

3.   After the 2020 amendments to the Banking Regulation Act, the RBI was empowered to implement the Prompt Corrective Action (PCA) framework for UCBs and strengthen governance oversight.

Which of the statements given above is/are correct?

A: 1 and 2 only

B: 1 and 3 only

C: 2 and 3 only

D: 1, 2, and 3

Show

Answer: D

Explanation:

All three statements are correct.

Statement 1: Correct. Urban Cooperative Banks function on the cooperative principle of "one member, one vote", regardless of the number of shares held. This distinguishes them from companies where voting rights are generally proportional to shareholding.

Statement 2: Correct. UCBs operating within a single state are registered under the State Cooperative Societies Act, whereas those operating across multiple states are registered under the Multi-State Cooperative Societies Act, 2002.

Statement 3: Correct. The Banking Regulation (Amendment) Act, 2020 significantly strengthened the RBI's regulatory powers over cooperative banks by enabling governance reforms, board supersession, and implementation of the Prompt Corrective Action (PCA) framework.

Q4:

Consider the following statements about the Clouded Leopard (Neofelis nebulosa):

It is the State animal of Meghalaya.

It has the shortest upper canine teeth relative to skull size among living cats.

It is listed as Vulnerable on the IUCN Red List.

Which of the statements given above is/are correct?

A: 1 and 2 only

B: 1 and 3 only

C: 2 and 3 only

D: 1, 2, and 3

Show

Answer: B

Explanation:

Statement 1 is correct: The clouded leopard is designated as the State animal of Meghalaya.

Statement 2 is incorrect: The clouded leopard actually possesses the longest upper canine teeth relative to skull size among all living cats, earning it the nickname "modern sabre-tooth."

Statement 3 is correct: The species is classified as Vulnerable on the IUCN Red List, listed under CITES Appendix I, and given highest legal protection under Schedule I of the Wildlife (Protection) Act, 1972.

Q5:

With reference to Mission Clouded Leopard, consider the following statements:

The mission is implemented under the Meghalaya Clouded Leopard Action Plan.

It relies exclusively on captive breeding programs rather than community-led conservation.

The species acts as an indicator species for tropical forest ecosystems.

Which of the statements given above is/are correct?

A: 1 and 2 only

B: 2 only

C: 1 and 3 only

D: 1, 2, and 3

Show

Answer: C

Explanation:

Statement 1 is correct: The mission is implemented under the Meghalaya Clouded Leopard Action Plan prepared by the State Forest and Environment Department.

Statement 2 is incorrect: The mission actively promotes community-led conservation in the biodiversity-rich forests of Northeast India, alongside habitat restoration and scientific monitoring, rather than relying exclusively on captive breeding.

Statement 3 is correct: The clouded leopard is considered an important indicator species that reflects the overall ecological health of tropical forest ecosystems.

Q6:

Consider the following statements regarding the Care Economy and the recent [NITI Aayog] report:

The care economy includes only paid professional services like nursing and eldercare provided in institutional settings.

The report proposes establishing a National Policy on Caregiving and a National Caregiver Council to standardize training and certification.

A major structural challenge in India's care economy is the heavy burden of unpaid care work disproportionately borne by women.

Which of the statements given above is/are correct?

A: 1 and 2 only

B: 1 and 3 only

C: 2 and 3 only

D: 1, 2, and 3

Show

Answer: C

Explanation:

Statement 1 is incorrect: The care economy comprises both paid and unpaid activities related to caring for children, the elderly, persons with disabilities, and the sick. It is not restricted to paid or institutional settings alone; it includes informal and unpaid domestic support as well.

Statement 2 is correct: To professionalize the sector, the report explicitly proposes a National Policy on Caregiving and a National Caregiver Council aimed at standardizing training, certification, and service delivery across the board.

Statement 3 is correct: A primary bottleneck identified in the report is the heavy burden of unpaid care work placed on women, which restricts their broader participation in the active labor force.