SOLUTIONS
INSIGHTS REVISION TEST for Preliminary Exam 2018: Test – 1
1) Consider the following statements
- Any common wealth citizen staying on work permit in United Kingdom, can vote for parliamentary election.
- The Labor Party headed by Theresa may emerged as the single largest party in U.K General Election of 2017.
Which of the following statement/s is/are correct?
a) 1 Only
b) 2 Only
c) Both 1 and 2
d) None of the above.
Solution a)
- Citizens of U K, Ireland and common wealth nations are eligible for voting.
- The conservative party headed by Theresa may emerged a single party
2)Which of the following are CORRECT about World Environment Day
- The theme of 2017 was- “Connecting People to Nature”.
- Host nation for 2017 was Canada and it will be hosted by India in 2018.
Which of the following statement/s is/are correct?
a)1 Only
b)2Only
c)Both 1 and 2
d)None of the above.
Solution c)
- “Connecting People to Nature”, the theme for World Environment Day 2017, implored us to get outdoors and into nature, to appreciate its beauty and its importance, and to take forward the call to protect the Earth that we share.
- 2017 was hosted by Canada
- India is the global host of 2018 World Environment Day which will take place on June 5, 2018.
- “Beat Plastic Pollution”, the theme for World Environment 2018, urges governments, industry, communities and individuals to come together and explore sustainable alternatives and urgently reduce the production and excessive use of single-use plastic polluting our oceans, damaging marine life and threatening human health.
3)Consider the following statements
1.India, Pakistan and Afghanistan were admitted as full members of SCO in Ufa Summit-2015.
2.With full membership, India is likely to get greater access to major gas and oil exploration projects in Central Asia
3.2017-Summit was held in Astana with theme” One-Belt and one-road (OBOR)-A roadmap to economic Integration”
Which of the following statement/s is/are correct?
a)Both 2 & 3
b)Both 1 & 3
c)2 only
d)Both 1 & 2
Solution: c)
- India and Pakistan were admitted as full members of SCO.
- SCO is a Eurasian Political, economic and military organization will help the economic integration and the security issue among the member countries.
- 2017 SCO theme is “Future Energy”
4)Consider the following statements regarding AFSPA-Armed Forces (Special Powers) Act.
- As per provisions, implementation of the act is not subject to judicial review.
- Tripura was the first state to revoke AFSPA.
Which of the following statement/s is/are correct?
a) 1Only
b) 2 Only
c)Both 1 and 2
d)None of the above.
Solution: a)
- AFSPA as per the act provisions, is not subjected to Judicial review. But the actions committed as part of AFSPA came under the scanner of supreme court in multiple instances
- Punjab was the first state to revoke implementation of AFSPA
5)Consider the following statements regarding GSLV-MKIII.
- 2nd stage is powered by Vikas engines with Unsymmetrical dimethyl hydrazine (UDMH) and nitrogen Tetroxide (N2O4 ) as fuel.
- The cryogenic Upper stage is powered by CE-2O engine which was indigenously developed ISRO.
Which of the following statement/s is/are correct?
a)1Only
b)2 Only
c)Both 1 and 2
d)None of the above
Solution: c)
- 2nd stage uses vikas engine which is based on licensed version of Viking engine
- CE 20 is indigenous cryogenic engine developed by LPSE(Liquid propulsion system center)
6)Which of the following seeds is developed by state agricultural universities:
a) Nuclear Seeds
b) Breeder seeds
c) Foundation Seeds
d) Certified Seeds
Solution: A
Nuclear seed : This is the hundred percent genetically pure seed with physical purity and produced by the original breeder/Institute /State Agriculture University (SAU) from basic nucleus seed stock. A pedigree certificate is issued by the producing breeder.
Breeder seed : The progeny of nucleus seed multiplied in large area as per indent of Department of Agriculture and Cooperation (DOAC), Ministry of Agriculture, Government of India, under supervision of plant breeder / institute / SAUs and monitored by a committee consisting of the representatives of state seed certification agency, national / state seed corporations, ICAR nominee and concerned breeder. This is also hundred percent physical and genetic pure seed for production of foundation seed. A golden yellow colour certificate is issued for this category of seed by the producing breeder.
Foundation seed : The progeny of breeder seed produced by recognized seed producing agencies in public and private sector, under supervision of seed certification agencies in such a way that its quality is maintained according to prescribed field ad seed standards. A white colour certificate is issued for foundation seed by seed certification agencies.
Registered seed : Registered seed shall be the progeny of foundation seed that is so handled as to maintain its genetic identity and purity according to standard specified for the particular crop being certified. A purple colour certificate is issued for this category of seed.
Certified seed : The progeny of foundation seed produced by registered seed growers under supervision of seed certification agencies to maintain the seed quality as per minimum seed certification standards. A blue colour certificate is issued by seed certification agency for this category of seed.
The foundation and certified seeds can be multiplied at stage 1 and II, but the reproduction can not exceed three generations after breeder seed.
7) In light of various revolutions in India, which of the following are correctly matched:
1.Black Revolution : Petroleum
2.Pink Revolution: Pharmaceuticals
3.Yellow Revolution: Oil seeds
Select the correct answer using the codes below.
a)Only 3
b)1 and 2
c)2 and 3
d)1, 2 and 3
Solution: D
8) Consider the following statements:
Assertion (A): Amartya Sen gave the concept of entitlements
Reason (R): He referred to poor having lack of choices and dignity
In the context of the above, which of these is correct?
a) A is correct, and R is an appropriate explanation of A
b)A is Correct, but R is not an appropriate explanation of A
c)A is correct, but R is incorrect
d)Both A and R are incorrect.
Solution: B
Amartya Sen talked about entitlements in the context of poor having no access to food during famines. He defines human development as people having choice and dignity.
9) The 90-90-90 strategy recently unveiled by a UN agency is a campaign to:
a) Combat terrorists groups and terrorism from the world
b) Help end the AIDS epidemic
c) Help in reducing malnutrition cases in developing countries
d) Help end the gender discrimination and promote gender equality.
Solution: B
By 2020, 90% of all people living with HIV will know their HIV status. By 2020, 90% of all people with diagnosed HIV infection will receive sustained antiretroviral therapy. By 2020, 90% of all people receiving antiretroviral therapy will have viral suppression. It was unveiled by UNAIDS
10) With reference to Global Initiative for Academic Networks (GIAN), consider the following sentences:
1.It is aimed to address the issue of teacher shortage in centrally recognized Indian institutions.
2.This program will exclusively focus on science technology and engineering studies
3.Both international and national teachers will be part of this initiative
Which of the statements mentioned above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Solution : C
The Global Initiative of Academic Networks (GIAN) is a new and catalytic programme of the Ministry of Human Resource Development, one with potentially far reaching impact. It is intended to enlarge and deepen the interface of India’s institutions of higher learning and globally recognised institutions of academic eminence. Over the next year or so, faculty from highly rated institutions abroad will visit India, interact and partner with their counterparts and with students, and deliver specialised courses.
11) Match List – I and List – II and select the correct answer from the code given below :
List – I List – II
(Author) (Book)
(A) Gunnar Myrdal (1) The rise and fall of nations
(B) Ruchir Sharma (2) In Defence of Globalisation
(C) Jagdish Bhagwati (3) Capitalism, Socialism and Democracy
(D) Joseph Schumpeter (4) Asian Drama
Code :
(A) (B) (C) (D)
(a) 2 1 3 4
(b) 4 1 2 3
(c) 4 2 1 3
(d) 1 3 2 4
Solution: B
12) MNCs can help the developing countries to:
(1) Obtain foreign technology and innovative methods of increasing productivity
(2) Employ rural unemployed labour
(3) Finance a savings gap or balance of payments deficit
(4) Generate appropriate technology by adapting existing processes
Select the correct answer using the codes below:
a) 1 and 3 only
b) 2 and 3 only
c) 1, 3 and 4 only
d) 1, 2, 3 and 4
Solution: D
MNCs or Multi-National corporations bring in new technology, employ workers, bring in foreign capital to bridge savings gap, and also adapt technology to adjust to local conditions.
13) The decoupling of Indian economy from the growth process was a result of
a) Demonetization and GST
b) Rise in interest rates
c) Appreciation of exchange rates and oil prices
d) All of the above
Solution: D
Until early 2016, India’s growth had been accelerating when growth in other countries was decelerating. But then the converse happened. The world economy embarked on a synchronous recovery, but India’s GDP growth—and indeed a number of other indicators such as industrial production, credit, and investment—decelerated. There are five reasons for this:
First, India’s monetary conditions decoupled from the rest of the world. Until the middle of 2016, real policy interest rates were following the global trend downwards. Since then, the downward drift has continued in most other countries, with rates falling. But in India, for the same period, average real interest rates increased. This tightening of monetary conditions contributed to the divergence in economic activity in two ways. First, it depressed consumption and investment compared to that in other countries. Second, it attracted capital inflows especially into debt instruments, which caused the increase in demand for rupee and consequently rupee appreciates which causes dampening of exports.
The second and third factors were one-off policy actions: Demonetization and GST. Demonetization temporarily reduced demand and hampered production, especially in the informal sector, which transacts mainly in cash. On the other hand, GST was introduced, affecting supply chains.
The fourth factor exerting a drag on the Indian economy was the TBS challenge. This has been a drag for some time and its effects have cumulated as the non-performing assets have increased, the financial situation of stressed firms and banks have steadily worsened. This has reduced investment and consequently economic activity and, hence growth.
The final factor was oil prices increase since 2017. It is estimated that a $10 per barrel increase in the price of oil reduces growth by 0.2-0.3 percentage points, increases WPI inflation by about 1.7 percentage points and worsens the CAD by about $9-10 billion dollars.
14) The economic survey points to the following anomaly
a) Elevated stock prices and bond prices
b) Formalization of work force
c) Expansion of tax base
d) Both A and B
Solution: D
The markets cannot sustain much longer high interest rates and formal workforce while taking into account GST filing and new registrations under EPFO and ESIC show greater non-farm employment than earlier estimated.
15) Arrange the following in order of their occurrence
a) Recognition, recapitalization, resolution, reforms
b) Recognition, resolution, recapitalization, Reforms
c) Resolution, recapitalization, reforms, recognition
d) Resolution, reforms, recapitalization, recognition
Solution: B
The twin balance sheet challenge is the major impediment to private investment and a full-fledged economic recovery. To address the challenges, Economic Survey recommends these four R’s.
16) The economic survey argues about shift from crony socialism to stigmatized capitalism in what context:
a) Exit problem or the Chakravyuha challenge
b) Willful defaulters
c) Growing Non-performing assets
d) Laggard PSUs
Solution: C
Coined by Arvind Subramanium in his speech and Survey. He was referring to the twin balance sheet problem and problem faced due to heightened risk to public sector banks because of stressed assets. He also stressed that this gives important insights into performance of India after LPG and a possible solution for public sector banks might just be more capitalism instead of a pro socialist approach.
17) The states which are open to trade fare better in terms of GDP. This holds true for both international trade and trade with other states. In light of this statement what do you mean by openness?
a) The ranking of states with respect to trade performance compared to rest of the states
b) Easier norms for doing business and GST
c) Ratio of imports and exports to GDP
d) Development of SEZs
Solution: C
Openness is defined as exports + imports as a percentage of GDP. That is the more the state is connected to the outside world or with neighbours the higher is the state GDP.
18) The performance of Indian Industry is more egalitarian in world trade has a direct corollary that:
a) MSMEs contribute a significant more towards trade as compared to other countries.
b) Top 1% of the firms have a comparatively less share in total exports from India as compared to other countries
c) Large firms don’t control the flow and direction of trade in India
d) All of the Above
Solution: D
That is exports are more egalitarian in India compared to similar placed countries. This says that largest firms in India do not dominate India’s exports and MSMEs also contribute more towards exports compared to other countries in similar income circumstances.
19) Which of the following is not true with respect to operation swarn:
a)It will have effect on punctuality of trains
b)It will lead to faster speeds of trains
c)It will redefine coach interiors
d)It will enhance security and ride quality
Solution: B
Higher speeds are under mission Raftaar. Operation swarn is for overall improvement in passenger comfort and services. Major trains such as shatabdis and rajdhanis will be covered under the first phase.
20) Consider the following statement:
Assertion (A): The Companies act 2013 provides for an agency for financial reporting
Reason (R): All charted accountants will be empanelled in NFRA and action can be taken against them
In the context of the above, which of these is correct?
a) A is correct, and R is an appropriate explanation of A
b)A is Correct, but R is not an appropriate explanation of A
c)A is correct, but R is incorrect
d)Both A and R are incorrect
Solution: A
These are in context of NFRA – National financial Reporting Agency
This was proposed as a result of various scams highlighting role of charted accountants and failure of audit trail to correctly warn of these risks.
21) Which of the following is incorrect:
- National infrastructure and Investment Fund is India’s first sovereign wealth fund
- Finance minister headed council acts like governing body of the fund
- It has been registered in SEBI as an alternative investment fund
- It has invested in Assets in Education and healthcare as well
Select your answer using the codes below:
a)3 and 4 only
b)Only 3
c)Only 4
d)None of the above
Solution: c
It is only for augmentation of infrastructure. There are separate schemes such as RISE for education and PMSS for healthcare. NIIF only covers problems of infrastructure finance where there is shortfall. That is need is estimated at around $4.5 trillion whereas estimated resource is only pegged at $3.9 trillion.
22)Which of the following statements about Sovereign Gold Bonds is correct?
a) These are exempt from capital gains tax if held till maturity
b) They carry a coupon rate of 2.5%
c) There is no fund management fee
d) All of the above
Solution: d
All the above are benefits even after introduction of long term capital gains in the Budget, SGB remains out of the purview of capital gains.
23) Consider the following statements:
- Taking forward the National Intellectual Property Rights (IPR) Policy 2016, a ‘Scheme for IPR Awareness – Creative India; Innovative India’ has been launched by Cell for IPR Promotion and Management (CIPAM) under the aegis of the Department of Industrial Policy and Promotion.
- The Scheme aims at raising IPR awareness amongst students, youth, authors, artists, budding inventors and professionals to inspire them to create, innovate and protect their creations and inventions across India including Tier 1, Tier 2, Tier 3 cities as well as rural areas in the next 3 years
- The Scheme will conduct over 4000 IPR awareness workshops/seminars in academic institutions and the industry, including MSMEs and Startups, as also IP training and sensitization programmes for enforcement agencies and the judiciary.
Which of the above are correct:
a)Only 1
b)1 and 2 only
c)2 and 3 only
d)1, 2 and 3
Solution: D
Source: Economy Module IPR are under the administrative control of DIPP under ministry of commerce and recently government tried to augment capacity of patent approvals by fast tracking hiring of patent examiners.
24) Under the essential commodities act which of the following is not true:
a) It is a central law but under implementation control of the state
b) The center can only provide for a monitoring mechanism
c) It deals with stocking limits and mandatory levy quota for sugar
d) It has no power to regulate prices of commodities in open market but only to regulate supply
Solution: D
It has power to regulate production, distribution, supply and price of the commodity. Essential commodities act 1955 aims to make available commodities in adequate number and regulate their availability during shortages. It also give action points to prevent hoarding and black marketing through instruments such as stock limits.
25) Gaon Ki Ore is a campaign aimed at:
a) Encouraging young civil servants to serve in rural areas of the country
b) Encouraging agricultural transformation
c) It is aimed at encouraging steel consumption in rural areas
d) It is for development of villages by IITs and IIMs
Solution: C
it has been launched by SAIL to boost consumption of steel in rural India. This will result in better durability of assets created and also make them more prone to handle severe events through housing of better quality. It is aimed at encouraging steel consumption in rural areas
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