General Knowledge MCQs
Topic Notes: General Knowledge
MCQs and preparation resources for competitive exams, covering important concepts, past papers, and detailed explanations.
Plato
- Biography: Ancient Greek philosopher (427–347 BCE), student of Socrates and teacher of Aristotle, founder of the Academy in Athens.
- Important Ideas:
- Theory of Forms
- Philosopher-King
- Ideal State
21
The 'Great Resignation' following the COVID-19 pandemic referred to:
Answer:
A higher-than-usual number of employees voluntarily leaving their jobs
The Great Resignation was an economic trend beginning in 2021 in which employees voluntarily resigned from their jobs en masse, citing low pay, lack of opportunities, and a desire for better work-life balance.
22
Which demographic trend is currently posing a major economic challenge to developed nations like Japan and Italy?
Answer:
Aging population and shrinking workforce
Many developed nations face the economic challenge of an aging population, which leads to a shrinking workforce, higher pension costs, and increased demand for healthcare, potentially slowing economic growth.
23
What is 'Reshoring'?
Answer:
Returning the production and manufacturing of goods back to the company's original country
Reshoring (or onshoring) is the process of returning the production and manufacturing of goods back to the company's original country, reversing previous offshoring.
24
In the context of the 2023 US banking turmoil, which specific risk related to rising interest rates caused the collapse of Silicon Valley Bank?
Answer:
Interest Rate Risk / Duration Risk on bond portfolios
Silicon Valley Bank collapsed because the value of its long-term Treasury bonds fell significantly as the Federal Reserve raised interest rates. When depositors demanded their money, the bank had to sell these bonds at a huge loss.
25
Which currency crisis in 1992 forced the UK to withdraw from the European Exchange Rate Mechanism (ERM)?
Answer:
Black Wednesday
Black Wednesday (September 16, 1992) occurred when speculators (most notably George Soros) broke the Bank of England's ability to defend the pound, forcing the UK out of the ERM.
26
The 'South Sea Bubble' occurred in which country?
Answer:
Great Britain
The South Sea Bubble was a financial collapse in Great Britain in 1720 centered on the South Sea Company, which held a monopoly on trade with South America.
27
What is 'Shrinkflation'?
Answer:
Reducing the size or quantity of a product while maintaining its sticker price
Shrinkflation is the practice of reducing the size or quantity of a product while the price of the product remains the same or slightly increases, effectively acting as a hidden form of inflation.
28
Which 2022 event caused a major global energy shock and spiked inflation rates worldwide?
Answer:
The Russian invasion of Ukraine
The invasion of Ukraine by Russia in February 2022 led to severe sanctions and disruptions in oil and gas supplies, causing global energy prices to skyrocket and fueling inflation.
29
What is 'Quantitative Easing' (QE)?
Answer:
A monetary policy where a central bank buys government securities to increase money supply
Quantitative Easing (QE) is a form of unconventional monetary policy in which a central bank purchases longer-term securities from the open market in order to increase the money supply and encourage lending and investment.
30
The 'Tulip Mania' of the 17th century in the Netherlands is a classic example of:
Answer:
An economic asset bubble
Tulip Mania is considered one of the first recorded speculative bubbles, where contract prices for some bulbs of the recently introduced and fashionable tulip reached extraordinarily high levels and then dramatically collapsed.