131: Why is the offering of "teaser loans" by commercial banks a cause Of economic concern ?
1. The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.
2. In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units.
Which of the statements given above is/ are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Explanation:
An adjustable-rate mortgage loan in which the borrower pays a very low initial interest rate, which increases after a few years. Teaser loans try to entice borrowers by offering an artificially low rate and small down payments, claiming that borrowers should be able to refinance before the increases occur.
Teaser loans are considered an aspect of subprime lending, as they are usually offered to low-income home buyers. Unfortunately, when these borrowers try to refinance the loan before the rate increases, most will not qualify for standard mortgages. This leaves borrowers with increased monthly payments, which many cannot afford. This method of loaning is considered risky, as default rates are high. Hence only statement 1 is correct.
132: Match List I (Ores) with List II (States where they are mined) and select the correct answer by using the codes given below the lists :
List I List II
I. Manganese (A) Madhya Pradesh
II. Nickel (B) Orissa
III. Lead-zinc (C) Rajasthan
IV. Asbestos (D) Andhra Pradesh
Codes:
(a) I - A, II - C, III - B, IV - D
(b) I - D, II - C, III - B, IV - A
(c) I - A, II - B, III - C, IV - D
(d) I - D, II - B, III - C, IV - A
133: An artificial satellite orbiting around the Earth does not fall down. This is so because the attraction of Earth
(a) Does not exist at such distance.
(b) Is neutralized by the attraction of the moon.
(c) Provides the necessary speed for its steady motion.
(d) Provides the necessary acceleration for its motion.
Explanation:
Artificial satellites are human-built objects orbiting the Earth and other planets in the Solar System.
An artificial satellite orbiting the earth does not fell down because the earth's attraction produces the necessary acceleration for its motion in a curved path.
134: Match List I with List II and select the correct answer using the codes given below the lists :
List I-------------------List II
(Agricultural products)--(Foremost producer)
I. Cotton---------------(A) Madhya Pradesh
II. Gram-----------------(B) Gujarat
III. Black pepper---------(C) West Bengal
IV. Pineapple-------------(D) Kerala
Codes:
(a) I-B, II-A, III-D, IV-C
(b) I-B, II-A, III-C, IV-D
(c) I-A, II-B, III-D, IV-C
(d) I-A, II-B, III-C, IV-D
135: The problem of international liquidity is related to the non-availability of
(a) goods and services
(b) gold and silver
(c) dollars and other hard currencies
(d) exportable surplus
Explanation:
International liquidity refers to the generally accepted official means of settling imbalances in international payments which is basically dollars and hard currencies.
Hence Option C is correct