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
41
Which investment bank's collapse in September 2008 is often cited as the climax of the subprime mortgage crisis?
Answer:
Lehman Brothers
The bankruptcy filing of Lehman Brothers on September 15, 2008, was the largest in U.S. history and intensified the 2008 global financial crisis.
42
What is 'Greenflation'?
Answer:
Rising prices for raw materials and energy due to the transition to renewable energy
Greenflation refers to the rise in prices of materials (like copper, lithium) and energy associated with the transition from fossil fuels to green technologies.
43
Which 1997 crisis started in Thailand with the collapse of the Thai baht and spread to other East Asian economies?
Answer:
The Asian Financial Crisis
The Asian Financial Crisis was a period of financial crisis that gripped much of East Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion.
44
The 'Dot-com Bubble' of the late 1990s was primarily driven by speculation in which sector?
Answer:
Internet and Technology
The Dot-com Bubble was a rapid rise in U.S. technology stock equity valuations fueled by investments in Internet-based companies during the late 1990s.
45
Which term describes the post-2008 trend where the pace of global integration has slowed down significantly compared to previous decades?
Answer:
Slowbalization
Slowbalization refers to the slowing down of globalization, characterized by sluggish growth in trade and cross-border investment relative to global GDP.
46
What concept refers to the rapid, uncontrolled price increases that render a currency effectively worthless, as seen in Zimbabwe (2008) and Venezuela (2016)?
Answer:
Hyperinflation
Hyperinflation occurs when a country experiences very high and accelerating inflation, usually more than 50% per month, which erodes the real value of the local currency.
47
In the context of the 2008 Financial Crisis, what does 'MBS' stand for?
Answer:
Mortgage-Backed Securities
Mortgage-Backed Securities (MBS) are investment products similar to bonds. The collapse in the value of MBS, particularly those backed by subprime loans, was a primary cause of the 2008 financial crisis.
48
Which historical event is considered the most severe economic downturn in the industrialized world, beginning with the stock market crash of 1929?
Answer:
The Great Depression
The Great Depression was a severe worldwide economic depression that took place mostly during the 1930s, originating in the United States after a major fall in stock prices.
49
What term describes the trend observed in the mid-2020s where companies move supply chains to politically allied countries to reduce geopolitical risk?
Answer:
Friend-shoring
Friend-shoring (or ally-shoring) is the practice of relocating supply chains to countries that are considered political and economic allies to prevent disruptions from geopolitical tensions.
50
Which economic phenomenon, characterized by a combination of high inflation, high unemployment, and stagnant economic growth, notably afflicted the global economy in the 1970s?
Answer:
Stagflation
Stagflation is a rare economic situation where slow economic growth (stagnation) and rising unemployment coincide with rising prices (inflation). The 1970s stagflation was largely triggered by oil price shocks.