Daily Current Affairs Prelims Quiz 20-09-2025 (Online Prelims Test)
1) Consider the following
Foreign Direct Investment (FDI) is short-term investment, where Foreign Portfolio Investment (FPI) is long-term.
FDI is more stable than FPI.
Singapore is top destination for India’s outward FPI, while the largest share of inward FDI to India is coming from USA.
Select the correct statements using the code given below:
a.
b.
c.
d.
Answer : a
Explanation
Statement 1 is incorrect – FDI is a long-term investment where an investor gains control and influence over a foreign company, often through physical assets like factories or infrastructure.
In contrast, FPI (Foreign Portfolio Investment) is a short-term, indirect investment in financial assets like stocks and bonds to earn returns without exercising control or involvement in the foreign company's operations.
Statement 2 is correct – FDI typically contributes to host country development through job creation and technology transfer, while FPI offers market liquidity and diversification benefits but carries higher volatility and risk.
Statement 3 is incorrect – Singapore is top destination for India’s outward FPI and also the largest share of inward FDI to India is coming from Singapore.
Top three destinations for India’s outward FDI are Singapore (22.6%), Mauritius (10.9%), UAE (9.1%).
2) What are the discretionary powers available to the governor while assenting to Bills under Article 200 of the Constitution?
Assent to the bill.
Withhold his assent to the bill.
May return the bill (if it is not a money bill) for reconsideration of the state legislature.
Reserve the bill for the consideration of the President.
Choose the correct code given below:
a.
b.
c.
d.
Answer : d
Explanation
All the given options are correct – Recently SC fixed timeline for Governors/President on Bills.
Article 200 deals with Governor's limited discretionary powers while assenting bill.
When a bill, passed by a state legislature, is presented to the governor for his assent, he has 4 alternatives.
Assent to the bill, or
Withhold his assent to the bill, or
May return the bill (if it is not a money bill) for reconsideration of the state legislature, or
Reserve the bill for the consideration of the President.
Timelines for bills –
Withhold or reserve Bill (on Ministerial advice) – 1 month
Return Bill for reconsideration (contrary to advice) – 3 month
Reserve Bill for President (against ministerial advice) – 3 month
Assent to reconsidered Bill – 1 month
3) Consider the following statements about Domestic Institutional Investors (DIIs)
DII’s are local entities like Indian mutual funds, pension funds, banks, that invest in their own country's stock market.
DIIs typically adopt a long-term investment horizon, which helps to balance short-term fluctuations often caused by Foreign Institutional Investors (FIIs).
Select the correct statements using the code given below:
a.
b.
c.
d.
Answer : c
Explanation
Despite significant DII investments, Indian stock market returns remained flat.
Statement 1 is correct – DIIs are local entities like Indian mutual funds, pension funds, banks, and insurance companies that invest in their own country's stock market and other financial instruments.
They focus on investments in Domestic securities, such as the equities of Indian companies, and contribute to the liquidity and stability of the market.
Statement 2 is correct – DIIs typically adopt a long-term investment horizon, balancing short-term fluctuations often caused by Foreign Institutional Investors (FIIs).
5) Sirarakhong Hathei Chilli Festival associated with which of the following state?
a.
b.
c.
d.
Answer : c
Explanation
Recently, 14th Sirarakhong Hathei Chilli Festival was inaugurated at Sirarakhong village, Ukhrul district, Manipur.
Theme for 2025 - ‘A Heritage of Blessing’.
It is a festival organized to promote Sirarakhong Hathei chilli and agricultural heritage, environmental sustainability, and national development initiatives.
