INSIGHTS IAS REVISION PLAN FOR PRELIMS 2019 – DAILY REVISION TESTS: TEST-1: 15 March 2019

Solution: D

‘Hindu’ rate of growth was coined to refer to the phenomenon of sluggishness in growth rate of Indian economy (3.5 per cent observed persistently during 1950s through 1980s).

The term, which owes to Professor Raj Krishna, Member, Planning Commission, captured popular imagination and was used synonymously to describe inadequacy of India’s growth performance.

Solution: B

Assam shares border with all northeastern states expect Sikkim and countries like Bhutan, Bangladesh only.

Solution: B

Criteria for grant of Maharatna status :-

The CPSEs fulfilling the following criteria are eligible to be considered for grant of Maharatna status.

(i)  Having Navratna status.

(ii) Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations.

(iii) Average annual turnover of more than Rs. 25,000 crore, during the last 3 years.

(iv) Average annual net worth of more than Rs. 15,000 crore, during the last 3 years.

(v)   Average annual net profit after tax of more than Rs. 5,000 crore, during the last 3 years.

(vi) Should have significant global presence/international operations.

Bharat Electronics Limited is a Navaratna company.

http://dpe.gov.in/about-us/management-division/maharatna-navratna-miniratna-cpse

Solution: D

India has 15,106.7 km of land border and a coastline of 7,516.6 km including island territories.

Country         :          Length of the border (in km)

Bangladesh    :                      4,096.7

China              :                        3,488

Pakistan         :                        3,323 (Including PoK)

Nepal              :                       1,751

Myanmar       :                       1,643

Bhutan            :                         699

Afghanistan   :                          106

Total                :                    15,106.7

• Bangladesh and Pakistan borders – BSF;
  · China border – ITBP;
  · Myanmar border – Assam Rifles;
  · Nepal and Bhutan borders – Sashastra Seema Bal;

Besides, Indian army guards land borders along the LOC on Pakistan border and LAC on China border. The Indian Navy and Coast Guard are vested with the responsibility of coastal borders, where the State (Marine) Police act as the second line of defence.

Annual Report, MHA: http://mha.nic.in/annualreports;

Solution: B

GDP growth rate of India at constant prices is not steadily increasing from last decade.

The GDP growth rate declined to 6.72% in 2008-09 largely due to global financial meltdown following the collapse of Lehman brothers (investment bank) of US in September, 2008. GDP growth rate improved to 8.59% in 2009-10 and 8.91% in 2010-11 due to high capital inflows attributed to the massive Quantitative Easing (QE) undertaken by the US to combat economic slowdown of global level.

The GDP growth rate slumped to 6.69% in 2011-12, 4.47% in 2012-13 and 4.74% in 2013-14 (P). This was due largely to domestic policy logjam, tax disputes and shaken investor confidence in Indian economy with attendant lower Gross Domestic Savings Rate (GDSR) and Gross Fixed Capital Formation (GFCF).

Present base year for calculation of GDP is 2011-2012.

Solution: C

An expansionary is a macroeconomic policy that seeks to encourage economic growth or combat inflationary price increases by expanding the money supply, lowering interest rates, increasing government spending or cutting taxes.

Increasing the tax rate is not an example of expansionary fiscal policy.

Solution: C

The ‘Global Register of Introduced and Invasive Species (GRIIS)’ has been developed and is
hosted by IUCN. (GRIIS) compiles annotated and validated country-wise inventories of introduced and invasive species. The development and population of the GRIIS was undertaken by the ISSG within the framework of the CBD Global Invasive Alien Information Partnership.

https://www.iucn.org/theme/species/our-work/invasive-species

While invasive species of flora like eucalyptus, wattle, pine and cypress trees, as well as Lantana camara plants, are proliferating across the Nilgiris upper slopes, Prosopis juliflora, parthenium and eupatorium have spread ón the biosphere’s lower slopes, forest officials said.

Weeds like scotch broom (Cytisus scoparius) and gorse have also begun to spread profusely in habitats like Avalanche, Upper Bhavani and the Mukurthi National Park, home to the endangered Nilgiri tahr, the State animal.

https://www.thehindu.com/news/national/tamil-nadu/alien-invasive-and-thriving/article24905530.ece

Solution: D

The major impact of liberalisation and globalisation of economy, which started in India in July, 1991, was to do away with the Compulsory Licensing. As of now on FOUR industries are reserved for the Public Sector and only SIX industries fall under the compulsory licensing, as detailed below:

LIST OF INDUSTRIES RESERVED FOR THE PUBLIC SECTOR

1. Arms and ammunition and allied items of defence equipment, Defence aircraft and warships.
2. Atomic energy.
3. The substances specified in the scheduled to the notification of the Government of India in the Department of Atomic Energy number S.O.212(E), dated the 15th March, 1995.
4. Railway transport.

LIST OF INDUSTRIES FOR WHICH INDUSTRIAL LICENSING IS COMPULSORY

1. Distillation and brewing of alcoholic drinks.
2. Cigars and Cigarettes of tobacco and manufactured tobacco subsitutes.
3. Electronic Aerospace and Defence equipment: all types.
4. Industrial explosives including detonating fuses, safely fuses, gun powder, nitrocellulose and matches.
5. Hazardous chemicals.
6. Drugs and Pharmaceuticals (according to modified Drug Policy issued in September, 1994).

In case of the small units which employ less than 50 workers with power or less than 100 workers without power are not required to obtain any license under Compulsory Licensing Provisions.

http://www.dcmsme.gov.in/policies/central/licen.htm

Solution: A 

Gini Coefficient is a popular statistical measure to gauge the rich-poor income or wealth divide. It measures inequality of a distribution — be it of income or wealth — within nations or States. Its value varies anywhere from zero to 1; zero indicating perfect equality and one indicating the perfect inequality.

Gini Coefficients can be used to compare income distribution of a country over time as well. An increasing trend indicates that income inequality is rising independent of absolute incomes.

A general rise in Gini Coefficient indicates that government policies are not inclusive and may be benefiting the rich more than the poor.

Solution: D

Applications of Geo-Positioning System are:

1. GPS’s high accuracy makes it suitable for use in mapping soil sample locations, and the farmers can locate the areas that have soils suitable for farming.
2. GPS is used in mapping and measuring various measures on the earth surface and underwater. It is used in determining land boundaries, mapping sea floors, and highlighting the changes in the shape of structures.
3. Financial organizations such as banks use this app to schedule and determine local and international money transfers. They are also using it to provide audit trails of financial transactions.
4. GPS can be used in any weather or environmental condition which is the reason why is preferred for use during disaster management. The emergency vehicles and supplies are tracked using GPS.
5. GPS technology is used in projecting temperature levels both on the ground and that of the atmosphere.

https://grindgis.com/gps/50-uses-or-applications-of-gps

Solution: D

Financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance – delivered in a responsible and sustainable way.

Solution: D

The Global Findex database is the world’s most comprehensive data set on how adults
save, borrow, make payments, and manage risk. World Bank launched this initiative with funding from the Bill & Melinda Gates Foundation, the database has been published every three years since 2011.

Solution: D

Waiving of agricultural loan increases the fiscal deficit of the government since government spends money from its treasury.

Solution: A

The National Institution for Transforming India, also called NITI Aayog, was formed via a resolution of the Union Cabinet on January 1, 2015. NITI Aayog is the premier policy ‘Think Tank’ of the Government of India, providing both directional and policy inputs. While designing strategic and long term policies and programmes for the Government of India, NITI Aayog also provides relevant technical advice to the Centre and States.

NITI Ayog has no power to allocate financial resources to states like planning commission.

Solution: A

T-bills are short term securities issued on behalf of the government by the RBI and are used in managing short term liquidity needs of the government.

• 91-day T-bills are auctioned every week on Wednesday and 182-day and 364-day T-bills are auctioned every alternate week on Wednesdays.
• T-Bills are issued on discount to face value, while theholder gets the face value on maturity. The return on T-Bills is the difference between the issue price and face value.
• Thus, return on T-Bills depends upon auctions. When the liquidity position in the economy is tight, returns are higher and vice versa.
• Individuals, Firms, Trusts, Institutions and banks can purchase T-Bills. The commercial and cooperative banks use T-Bills for fulfilling their SLR requirements.
• Treasury Bills are issued only by the central government in India. The State governments do not issue any treasury bills.
• The secondary market of T-Bills is very active so they have a higher degree of tradability.

Solution: C

Reang or Bru tribes are one of the 21 scheduled tribes of the Indian state of Tripura. The Brucan be found all over the Tripura state in India. However, they may also be found in Mizoram, Assam, Manipur and They speak the Reang dialect of Bru language which is of Tibeto-Burmese origin and is locally referred to as Kau Bru.

Polavaram Project, is an underconstruction multi-purpose irrigation project on the Godavari River in the West Godavari District and East Godavari District in Andhra Pradesh.

India’s maiden inter-state tiger relocation, from Madhya Pradesh in central India to a tiger reserve in the eastern state of Odisha.

The relocation approved by the National Tiger Conservation Authority (NTCA) kicked off early 2018 with two big cats: a male (T1) from Kanha Tiger Reserve, followed by a female (T2) from Bandhavgarh in Madhya Pradesh. Both tigers were brought to the 963 square km Satkosia Tiger Reserve in June, to shore up the existing tiger population of two in the reserve and thereby in the state.

Solution: B

APTA, previously named the Bangkok Agreement, was signed in 1975 as an initiative of ESCAP.

Being the oldest preferential trade agreement among developing countries in Asia-Pacific, APTA
aims to promote economic development through the adoption of mutually beneficial trade
liberalization measures that will contribute to intra-regional trade expansion.

It also provides for economic integration through coverage of merchandise goods, services, investment and trade facilitation.

The six member countries are Bangladesh, China, India, Laos, Korea and Sri Lanka.

https://www.unescap.org/apta/participating-states

Solution: A

UNMOGIP, one of the oldest UN mission, was deployed in January 1949 to supervise the
ceasefire between India and Pakistan in the State of Jammu and Kashmir.

The tasks of UNMOGIP have been to observe, to the extent possible, developments pertaining to the strict observance of the ceasefire of 17 December 1971 and to report thereon to the Secretary General. The group, based in Rawalpindi, is composed of 43 military observers and 23 international civilian
personnel.

Since the Simla Agreement of 1972, India has adopted a non-recognition policy towards third
parties in their bilateral exchanges with Pakistan over the question regarding the state of Jammu
and Kashmir.

The military authorities of Pakistan have continued to lodge alleged ceasefire violations complaints with UNMOGIP.

Solution: C

The Financial Action Task Force (FATF) was established in July 1989 by a Group of Seven (G-7) Summit in Paris, initially to examine and develop measures to combat money laundering. It is an inter-governmental body.

In October 2001, the FATF expanded its mandate to incorporate efforts to combat terrorist financing, in addition to money laundering.

Since its inception, the FATF has operated under a fixed life-span, requiring a specific decision by its Ministers to continue.  The current mandate of the FATF (2012-2020) was adopted at a Ministerial meeting in April 2012.

The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. Starting with its own members, the FATF monitors countries’ progress in implementing the FATF Recommendations; reviews money laundering and terrorist financing techniques and counter-measures; and, promotes the adoption and implementation of the FATF Recommendations globally.

If country is placed in grey list of FATF, it would become harder to tap international loans from different financial institutions.

Solution: B

Fiscal Consolidation refers to the policies undertaken by Governments (national and sub-national levels) to reduce their deficits and accumulation of debt stock.

Fiscal consolidation is a process where government’s fiscal health is getting improved and is indicated by reduced fiscal deficit. Improved tax revenue realization and better aligned expenditure are the components of fiscal consolidation as the fiscal deficit reaches at a manageable level.

Solution: D

Diseases eliminated/eradicated in India are Smallpox, Rinderpest, Polio, Yaws, Maternal and Neonatal Tetanus and Trachoma.

https://fit.thequint.com/fit/disease-and-smallpox-elimination

Solution: A

SFAC is an Autonomous Society promoted by Ministry of Agriculture, Cooperation and Farmers’ Welfare, Government of India.

It is registered under Societies Registration Act 1860. The Society is also registered as Non-Banking Financial Institution by Reserve Bank of India.

The role of State SFACs is to aggressively promote agribusiness project development in their respective States.

National Skill Development Corporation India (NSDC), established in 2009, is a not- for- Profit Company set up by the Ministry of Finance.

NSDC was set up by Ministry of Finance as Public Private Partnership (PPP) model. The Government of India through Ministry of Skill Development & Entrepreneurship (MSDE) holds 49% of the share capital of NSDC, while the private sector has the balance 51% of the share capital.

Solution: C

It was set up in February 2016 as an autonomous body– based on the recommendations of the RBIappointed Nayak Committee to improve governance of Public Sector Banks (PSBs).

It was the part of Indradhanush Plan of government. It had replaced Appointments Board of Government. It is housed in Reserve Bank of India’s (RBI) central office in Mumbai.

Its broad agenda was to improve governance at state-owned lenders. Its mandate also involved advising the government on top-level bank appointments and assisting banks with capital-raising plans as well as strategies to deal with bad loans.

It guides banks on mergers and consolidations and governance issues to address bad loans problem among other issues.

Solution: C

Maximization of profit was not a motive behind state intervention.

Solution: A

According to Article 114 of the Indian constitution, no money can be withdrawn from the Consolidated Fund of India to meet specified expenditure except under an appropriation made by Law. Similarly, State (sub-national) Governments can also draw from their Consolidated Funds only after an appropriation act is passed.

Every year, after budgetary estimates are approved, an Appropriation Bill is passed by the Parliament/state legislature and then it is presented to the President/Governor. After the assent by the President/governor to the bill, it becomes an Act.

However, if during the course of the financial year, the funds so appropriated are found to be insufficient, the Constitution provides for seeking approval from the Parliament or State Legislature for supplementary grants

Borrowing from World Bank is not a part of revenue receipts.

Under Article 112 of the Constitution of India, the Annual Financial Statement has to distinguish expenditure of the Government on revenue account from other expenditures. Government Budget, therefore, comprises of Revenue Budget and Capital Budget.

Revenue Budget consists of the revenue receipts of Government (tax revenues and other revenues like interest and dividend on investments made by Government, fees, and other receipts for services rendered by Government) and the expenditure met from these revenues.