Answer Sheet of 30-01-25

WHAT IF?

1) What if countries stops using monetary policies to control inflation and interest rates in a bridge?

         If countries stop using monetary policies to manage inflation and interest rates, the economy would face major instability. Here’s what could happen:

1. Inflation Becomes Uncontrollable

No interest rate adjustments → Inflation could rise unchecked as borrowing becomes too easy.

Hyperinflation risk → Prices could surge rapidly, making goods unaffordable (as seen in Zimbabwe and Venezuela).

Deflation risk → If the economy slows down, there’s no way to stimulate spending, leading to job losses and economic downturns.

2. Interest Rates Become Unstable

Market-driven interest rates → Banks and lenders would set their own rates, leading to unpredictable borrowing costs.

Higher borrowing costs → Without central bank intervention, loans could become unaffordable for businesses and individuals.

3. Weaker Economic Growth

Recessions become deeper → No rate cuts mean businesses can't access cheap credit during downturns.

Booms and busts intensify → Without regulation, economic cycles could become extreme.

4. Currency Instability

Exchange rates fluctuate wildly → Investors lose confidence, leading to capital flight and weaker currencies.

Imported goods become expensive → A weaker currency makes imports costly, further fueling inflation.

5. Stock Market Volatility

Investor uncertainty increases → Without monetary guidance, stock markets could experience extreme highs and crashes.

Speculation-driven markets → Without regulation, bubbles could form and burst more frequently.

6. Governments Rely Only on Fiscal Policy

Slower response to crises → Fiscal policies (taxes, spending) take longer to implement than monetary policies.

Higher government debt → More public spending would be needed to stimulate the economy, increasing national debt.

7. Banking and Financial System Risks

Unregulated lending → Banks might set arbitrary interest rates, leading to high default rates.

Financial instability → Without central banks acting as lenders of last resort, banking crises could worsen

Conclusion

Without monetary policy, economic management would be chaotic. Inflation, interest rates, and exchange rates would fluctuate unpredictably, leading to financial crises and economic hardship. Countries need both monetary and fiscal policies to maintain stability.

SUPERLATIVE

WHICH IS THE HIGHEST BRIDGE IN INDIA AND ALSO WORLD'S HIGHEST RAILWAY BRIDGE 

Chenab Rail Bridge

Key Facts about the Chenab Rail Bridge:

Location: Jammu and Kashmir, India

Height: 359 meters (1,178 feet) above the Chenab River

Length: 1,315 meters (4,314 feet)

Completion Year: 2022

Importance: It is taller than the Eiffel Tower and is part of the Udhampur-Srinagar-Baramulla Rail Link (USBRL) project to connect Kashmir with the rest of India by rail.

CAPITALS

Phillipines- Manila

Egypt- Cairo

Meghalaya- Shillong

INVENTIONS 

Steam Engine - James Watt

GK EXPRESS

Financial Coach

1) What does CRR stands for in banking?

In banking, CRR stands for Cash Reserve Ratio. It is the percentage of a bank's total deposits that must be maintained as reserves with the central bank. This requirement ensures that banks have sufficient liquidity to meet withdrawal demands and helps the central bank control the money supply in the economy. 

2) Which is the largest market capitalisation company in India?

As of January 31, 2025, Reliance Industries Limited holds the position of the largest company in India by market capitalization. This multinational conglomerate operates across various sectors, including energy, petrochemicals, natural gas, retail, telecommunications, mass media, and textiles. 

3) Who is known as Father of Indian Banking reforms?

Maidavolu Narasimhan (also served as Governor of RBI)

4) NEFT- National Electronic Funds Transfer

   RTGS- Real Time Gross Settlement

Sports Coach

1) who won the first individual gold medal in Olympics? 

Abhinav Bindhra 

Key Details

Sport: Shooting (10m Air Rifle)

Event Date: August 11, 2008

Score: 700.5 points (Final score)

Significance:

First Indian to win an individual Olympic gold medal.

Ended India's long wait for an individual gold after years of near misses.

2) who is known as god of cricket? 

Sachin Tendulkar

3) who won the world's first FIFA cup? 

Uruguay National Football Team

Political Coach

1) Expand JPC- Joint Parliamentary Committee

2) Article 108- Joint sitting of both houses of parliament in case of any deadlock between two houses on a certain bill 

3) Which body conducts elections to Panchayats?

State Election Commission 

4) Which political leader is best known for his speech "I have a dream"

Dr. Martin Luther King Jr.

Geo Coach

1) which country has the longest coastline in the world? 

Canada- 202080 km

2) Which Natural disaster is measured by the Richter scale?

The Richter scale measures the magnitude of earthquakes.