TEST-3 – INSIGHTS IAS REVISION PLAN FOR PRELIMS 2019 – DAILY REVISION TESTS: 17 March 2019

Solution: A

An anti–dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. Dumping is a process where a company exports a product at a price lower than the price it normally charges in its own home market.

Solution: C

Under the World Trade Organisation (WTO) agreements, countries cannot normally discriminate between their trading partners. If any country grants one country a special favour such as a lower customs duty rate for one of their products the same would need to be extended to all other WTO members. This principle is known as most-favoured-nation (MFN) treatment.

MFN is so important a principle that it is the first article of the General Agreement on Tariffs and Trade (GATT), which governs trade in goods. MFN is also a priority in the General Agreement on Trade in Services (GATS) (Article 2) and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) (Article 4). Together, those three agreements cover all three main areas of trade handled by the WTO.

http://www.arthapedia.in/index.php?title=Most-favoured-nation_(MFN)

Solution: D

The World Investment Report has been published annually since 1991 by United Nations Conference on Trade and Development.

Each year´s Report covers the latest trends in foreign direct investment around the World and analyses in depth one selected topic related to foreign direct investment and development.

Solution: B

External Commercial borrowing is a part of Capital account.

Solution: A

Participatory Notes, also called P-Notes or just PNs are instruments that are issued by registered FIIs to overseas investors who want to invest in the stock markets in India, without registering themselves with the market regulatory authority SEBI. PNs are not used within India but by investors abroad. Hence, they are also known as offshore derivative instruments. They are used by clients of FIIs who do not wish to directly participate in the stock market in India, but do it through the FIIs using PNs

The PN holder also does not enjoy any voting rights in relation to security/shares referenced by the PN.

Solution: D

Forex reserve in India is around 400 billion dollar and not even touched 500 billion dollar.

Reserve Bank of India manages foreign exchange reserve in India.

Solution: D

It is a a tool that will allow developing countries to raise tariffs temporarily to deal with import surges or price falls.

https://www.wto.org/english/thewto_e/glossary_e/ssm_e.htm

Solution: B

India has free trade agreements with ASEAN, Sri Lanka.

India doesn’t have FTA with European Union.

Solution: C

Hard currency refers to money that is issued by a nation that is seen as politically and economically stable. Hard currencies are widely accepted around the world as a form of payment for goods and services and may be preferred over the domestic currency.

Solution: D

The Qualified Foreign Investor (QFI) is sub-category of Foreign Portfolio Investor and refers to any foreign individuals, groups or associations, or resident, however, restricted to those from a country that is a member of Financial Action Task Force (FATF) or a country that is a member of a group which is a member of FATF and a country that is a signatory to International Organization of Securities Commission’s (IOSCO) Multilateral Memorandum of Understanding (MMOU).

QFIs are allowed to make investments in the following instruments by opening a demat account in any of the SEBI approved Qualified Depository Participant (QDP):

• Equity and Debt schemes of Indian mutual funds,
• Equity shares listed on recognized stock exchanges,
• Equity shares offered through public offers
• Corporate bonds listed/to be listed on recognized stock exchanges
• G-Securities, T-Bills and Commercial Papers

Solution: D

The right to keep and bear arms in the United States is a fundamental right protected by the Second Amendment to the United States Constitution, part of the Bill of Rights, and by the constitutions of most U.S. states.

India already had some of the strictest gun laws in the world, a vestige of British colonial rule, which aimed to disarm its subjects. Indian law allows citizens to own and carry guns, but it is not a right enshrined in the constitution. Getting a gun license in India is a difficult task that can take years.

India’s arms laws are largely influenced by British arms act which made it impossible for most Indians to own weapons.

Solution: A

Source: Indian Economy by Sanjiv Verma

Solution: D

The Members of Parliament Local Area Development Division is entrusted with the responsibility of implementation of Members of Parliament Local Area Development Scheme (MPLADS). Under the scheme, each MP has the choice to suggest to the District Collector for works to the tune of Rs.5 Crores per annum to be taken up in his/her constituency.

It is implemented by Ministry of Statistics and Programme Implementation.

The Rajya Sabha Members of Parliament can recommend works in one or more districts in the State from where he/she has been elected.

The Nominated Members of the Lok Sabha and Rajya Sabha may select any one or more Districts from any one State in the Country for implementation of their choice of work under the scheme. The Ministry has issued the guidelines on MPLADS Scheme including implementation and monitoring of the scheme. The Department has initiated all necessary steps to ensure that the scheme is successfully implemented in the field.

https://www.mplads.gov.in/mplads/Default.aspx

Solution: C

Triffin Dilemma refers to theory that states it is impossible for any central bank to manage exchange rate, open current accounts and independent monetary policy all at the same time.

Source: Indian Economy by Sanjiv Verma.

Solution:  D

It can also be granted for developing and emerging economies. Japan already has market economy status.

http://www.tradeenforcement.org/market-economy-status

Solution: B

India’s share in world exports is around 1.6%.

Solution: C

GLONASS is an acronym, which stands for Globalnaya Navigazionnaya Sputnikovaya Sistema, or Global
Navigation Satellite System. GLONASS is Russia’s version of GPS (Global Positioning System).

List of Global Navigation Satellite Systems:
· GPS of the United States of America.
· Galileo of the European Union.
· IRNSS or NAVIC of India.
· Quasi-Zenith Satellite System (QZSS) of Japan

Solution: D

The Ministry of Health and Family Welfare has restricted the manufacture of Oxytocin formulations for domestic use to public sector only. Coupled with this, it has also banned the import of Oxytocin and its formulations. The order comes into effect from July 1.

Only Karnataka Antibiotics & Pharmaceuticals Ltd. (KAPL), a public sector company, will manufacture this drug for domestic use. It will supply the drug to registered hospitals and clinics in public and private sector directly.

The drug is widely misused in the dairy industry. Oxytocin is also used to increase the size of vegetables such as pumpkins, watermelons, eggplants, gourds, and cucumbers.

Learning: Oxytocin has also been dubbed the hug hormone, cuddle chemical, moral molecule, and the bliss hormone due to its effects on behaviour, including its role in love and in female

reproductive biological functions in reproduction

Solution: D

The National Water Mission under the National Action Plan for Climate Change envisages the following five goals :

Goal 1: Comprehensive water data base in public domain and assessment of the impact of climate change on water resource,
Goal 2: Promotion of citizen and state actions for water conservation, augmentation and preservation
Goal 3: Focused attention to vulnerable areas including over-exploited areas
Goal 4: Increasing water use efficiency by 20%
Goal 5: Promotion of basin level integrated water resources management

Bureau of Energy Efficiency (BEE) was established in March 2002, as a statutory body by the Government of India under the Energy Conservation Act 2001.

• It is responsible for spearheading the improvement of energy efficiency of the economy through various regulatory and promotional instruments. The primary goal of BEE is to reduce the energy intensity in the Indian economy.
  · It coordinates with State level agencies and energy consumers to perform functions and exercise powers that may be necessary for efficient use of energy and its conservation in India.

National Council for River Ganga (Rejuvenation, Protection and Management), as an Authority under the Chairperson of Hon’ble Prime Minister, in place of the existing NGRBA for overall responsibility for superintendence of pollution prevention and rejuvenation of river Ganga Basin.

Solution: A

The General Data Protection Regulation 2016/679 is a regulation in EU law on data protection and privacy for all individuals within the European Union and the European Economic Area. It also addresses the export of personal data outside the EU and EEA areas.

Solution: B

International North-South Transport Corridor (INSTC), is a multi modal transportation
established in 2000 by Iran, Russia and India (Founding Members) for the purpose of promoting transportation
cooperation among the Member States. This corridor connects India Ocean and Persian Gulf to the Caspian Sea via Islamic republic of Iran, then is connected to St. Petersburg and North
European via Russian Federation.

The INSTC has been expanded to include eleven new members, namely: Republic of Azerbaijan,
Republic of Armenia, Republic of Kazakhstan, Kyrgyz Republic, Republic of Tajikistan, Republic
of Turkey, Republic of Ukraine, Republic of Belarus, Oman, Syria, Bulgaria (Observer).

Solution: C

Operation Meghadoot (1984)

In the late 1970s and early 1980s, Pakistan began organising tourist expeditions to the Siachen Glacier,

disputed territory with India. Irked by this development, in April 1984 India initiated the successful Operation Meghdoot during which it gained control over all of the 70 kilometer (41 mile)-Iong Siachen Glacier and all of its tributary glaciers, as well as the three main passes of the Saltoro Ridge immediately west of the glacier—Sia La, Bilafond La, and Gyong La. It has been claimed that, India gained more than 1000 square miles (3,000 km2) of territory as a result of its military operations in Siachen.

Operation Pawan (1987-1990)

The Indian Peace Keeping Force (IPKF) carried out a mission in northern and eastern Sri Lankan

1987—1990 to disarm the Tamil Tigers under the terms of the Indo-Sri Lanka Accord. It was a difficult battle for the Indian Army, which was not trained for an unconventional war. After losing approximately 1,200 personnel and several T-72 tanks, India ultimately abandoned the mission in consultation with the Sri Lankan government. In what was labelled as Operation Pawan, the Indian Air Force flew about 70,000 sorties to and within Sri Lanka.

Operation Cactus (1998)

In 1988 a group of Maldivians led by Abdullah Luthufi tried to overthrow then Maldivian Government. The attempt was a failure due to the intervention of the Indian Armed Forces. The operation was code named as Operation Cactus INS Godavari and Betwa were used by the Indian Navy in the operation.

Solution: B

The Indian Ocean Rim Association (IORA), formerly known as the Indian Ocean Rim Initiative and Indian Ocean Rim Association for Regional Cooperation (IORARC), is an international organization consisting of coastal states bordering the Indian Ocean.

The IORA is a regional forum, tripartite in nature, bringing together representatives of Government, Business and Academia, for promoting co-operation and closer interaction among them.

It is based on the principles of Open Regionalism for strengthening Economic Cooperation particularly on Trade Facilitation and Investment, Promotion as well as Social Development of the region. The Indian Ocean Rim Association (IORA) is an international organization with 21 Member countries.

Maldives has now become the latest member of Indian Ocean Rim Association (IORA).

2017 Indian-Ocean Rim Association (IORA) Summit was the first IORA Summit.

Solution: A

Ghouta city is located in Syria.

Solution: B

The Missile Technology Control Regime (MTCR) is a multilateral export control regime.

It is an informal and voluntary partnership among 35 countries to prevent the proliferation of missile and unmanned aerial vehicle technology capable of carrying above 500 kg payload for more than 300 km.

It aims to limit the proliferation of missile and other unmanned delivery systems that could be used for chemical or nuclear attacks.

India recently became the member of MTCR.