Daily Current Affairs Prelims Quiz 15-06-2025 (Online Prelims Test)
1) Consider the following statements with respect to the CAPE (Cyclically Adjusted Price-Earnings) Ratio
Unlike the traditional PE ratio, the CAPE ratio averages inflation-adjusted earnings over a ten-year period.
It helps smooth out short-term fluctuations in earnings caused by business cycles, providing a more stable long-term valuation.
Which of the statements given above is/are correct?
a.
b.
c.
d.
Answer : c
CAPE (Cyclically Adjusted Price-Earnings) Ratio
The Cyclically Adjusted Price Earnings (CAPE) ratio, introduced in 1988 by economists Professor Robert Shiller and John Y. Campbell,
CAPE enhances the traditional Price/Earnings (PE) ratio by addressing its short-term volatility.
Unlike the traditional PE ratio, which uses the most recent one year of earnings, the CAPE ratio averages inflation-adjusted earnings over a ten-year period.
This longer horizon smooths out short-term fluctuations caused by business cycles, providing a clearer signal of long-term market valuation.
This makes the CAPE ratio a valuable tool for identifying long-term investment opportunities.
2) Consider the following statements:
India is the world's second-largest producer of crude steel.
India has abundant iron ore, but it lacks coal with the required carbon-content, necessitating expensive imports.
Which of the statements given above is/are correct?
a.
b.
c.
d.
Answer : c
Steel production in India
India is the world's second-largest producer of crude steel next to China.
India has abundant iron ore, but it lacks coal with the required carbon-content, necessitating expensive imports.
Crude steel production in India grew from 109.137 million tonnes in 2019-20 to 144.299 million tonnes in 2023-24, representing a robust 13.4% growth.
Odisha is the largest producer of steel in India.
The growth in the Indian steel sector has been driven by the domestic availability of raw materials such as iron ore and cost-effective labour.
MARPOL Convention is aimed at preventing pollution of the marine environment by ships.
MARPOL Convention was adopted at the International Maritime Organization (IMO) in 1973.
The IMO Net-zero Framework is the?first in the world to combine mandatory emissions limits and GHG pricing across an entire industry sector.
How many of the statements given above are correct?
a.
b.
c.
d.
Answer : c
International Convention for the Prevention of Pollution from Ships (MARPOL)
MARPOL Convention is aimed at preventing pollution of the marine environment by ships.
MARPOL Convention was adopted at the International Maritime Organization (IMO) in 1973.
IMO Net-zero Framework – First in the world to combine mandatory emissions limits and Green House Gas pricing across an entire industry (Marine) sector.
