exam title : 2) economy email : drpavanyamali@gmail… · email: [email protected] page 0...

Exam Title : 2) ECONOMY

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QUESTION 1.

World Energy Outlook Report is given by

a) Organization for Economic Cooperation and Development (OECD)

b) UNFCCC

c) International Energy Agency

d) World Bank

Correct Answer: C

Your Answer: C

Explanation

Solution (c)

The IEA is an autonomous organisation which works to ensure reliable, affordable and clean energy for its

29 member countries and beyond. The IEA has four main areas of focus: energy security, economic

development, environmental awareness and engagement worldwide.

WEO presents detailed projections of energy demand, production, trade and investment, fuel by fuel and

region by region.

According to International Energy Agency’s World Energy Outlook 2015, 67 per cent of the population in

India depends on traditional biomass for cooking, which, in absolute numbers, works out to 841 million

people in the population.

Source:

http://www.livemint.com/Politics/jYAQRMAxg1DZ7GJfQC3fbM/After-solar-energy-focus-is-now-on-hydro-wind-says-Piyush.html

QUESTION 2.

The endeavour of ‘ Janani Suraksha Yojana ’ Programme is

1. to promote institutional deliveries

2. to provide for wage loss due to pregnancy and confinement

3. to provide monetary assistance to the mother to meet the cost of delivery

4. to reduce maternal and neo-natal mortality rate

Which of the statements given above is/are correct?

a) 1 and 4 Only

b) 1, 3 and 4

c) 2 and 3 Only

d) 1, 2, 3 and 4

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Correct Answer: B

Your Answer: B

Explanation

Solution (b)

Janani Suraksha Yojana (JSY) is a safe motherhood intervention under the National Rural Health Mission

(NRHM)(Ministry of Health & Family Welfare) being implemented with the objective of reducing maternal

and neo-natal mortality by promoting institutional delivery (, i.e. by providing a cash incentive to mothers

who deliver their babies in a health facility) among the poor pregnant women. The Yojana was launched in

20015. JSY is a 100 % centrally sponsored scheme and it integrates cash assistance with delivery and

post-delivery care.

There is also provision for cost reimbursement for transport and incentives to Accredited Social Health

Activists (ASHA) for encouraging mothers to go for institutional delivery. The wage loss scheme is Indira

Gandhi Matritva Sahyog Yojana (IGMSY) is a maternity benefit program run by the government of India.

It was introduced in 2010 and is implemented by the Ministry of Women and Child Development. It is a

conditional cash transfer scheme for pregnant and lactating women of 19 years of age or above for first two

live births. It provides a partial wage compensation to women for wage-loss during childbirth and childcare

and to provide conditions for safe delivery and good nutrition and feeding practices. In 2013, the scheme

was brought under the National Food Security Act, 2013 to implement the provision of cash maternity

benefit

The Yojana has identified ASHA, the accredited social health activist (trained community health worker)

as an effective link between the Government and the poor pregnant women in 10 low performing states,

namely the 8 EAG states and Assam and J&K and the remaining NE States.

Source:

http://www.thehindu.com/data/janani-suraksha-yojana-pays-dividends-study/article9204743.ece

QUESTION 3.

Recently, India’s satellite GSAT-18 was successfully launched. With reference to GSAT-18, consider the

following statements

1. It is a communication-based satellite

2. It is India’s heaviest satellite

3. It was launched by India’s heavy duty launch vehicle GSLV

4. It was built by ISRO






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Choose the appropriate code

a) 1, 2 and 4

b) 1, and 2 Only

c) 1, 2 and 3

d) 1, 2, 3 and 4

Correct Answer: A

Your Answer: A

Explanation

Solution (a)

Launched by: European launcher Ariane-5 (space vehicle)

Weighing 3,404 kg at lift-off, GSAT-18 carries 48 communication transponders to provide services in

Normal C-band, Upper Extended C-band and Ku-bands of the frequency spectrum. Television,

telecommunication, VSAT and digital satellite news gathering were a few of the services that GSAT 18 will

support.

Source:

http://www.thehindu.com/sci-tech/science/communication-satellite-gsat18-successfully-launched/article9190037.ece

QUESTION 4.

Gaza strip is frequently in news. It is

a) a landlocked region in Middle East

b) part of Egypt

c) a landlocked region in North Africa

d) None

Correct Answer: D

Your Answer: D

Explanation

Solution (d)

Gaza, together with the West Bank, comprise the Palestinian territories claimed by the Palestinians as the

State of Palestine. The territories of Gaza and the West Bank are separated from each other by Israeli

territory. It is not a landlocked region - eastern coast of the Mediterranean Sea, that borders Egypt and

Israel.

QUESTION 5.







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Consider the following statements

1. It has got Geographical Indication status

2. Traditionally the toys were made up of sandal wood

3. The origin of these wooden toys can be traced to reign of Raja Wadiyar II

With regard to Channapatna toys, which of the statements given above is/are correct?

a) 1 Only

b) 1 and 2 Only

c) 2 and 3 Only

d) 1, 2 and 3

Correct Answer: A

Your Answer: D

Explanation

Solution (a)

The origin of these toys can be traced to the reign of Tipu Sultan who invited artisans from Persia to train

the local artisans in the making of wooden toys. Bavas Miyan is the father of Channapatna Toy

For nearly two centuries, ivory-wood was the main wood used in the making of these toys, though

rosewood and sandalwood were also occasionally used. Other woods used including rubber, sycamore,

cedar, pine and teak.

Source:

http://www.thehindu.com/news/national/karnataka/channapatnas-dolls-continue-to-charm-buyers/article9198430.ece

QUESTION 6.

World Bank (WB) Group consists of

1. International Bank for Reconstruction and Development

2. International Development Agency

3. International Finance Corporation

4. Department of International Development







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5. World Intellectual Property Organisation

Choose the correct option:

a) 1, 2 and 3

b) 1, 2 and 4

c) 1, 2, 3 and 4

d) 1, 2, 3 and 5

Correct Answer: A

Your Answer: C

Explanation

Solution (a)

World Bank (WB) Group consists of

1. International Bank for Reconstruction and Development

2. International Development Agency

3. International Finance Corporation

4. International Centre for Settlement of Investment Disputes

5. Multilateral Investment Guarantee Agency

The Department for International Development (DFID) leads the UK’s work to end extreme poverty,

building a safer, healthier, more prosperous world for all of us which is firmly in the UK’s national interest.

World Intellectual Property Organisation (WIPO) is the global forum for intellectual property services, policy,

information and cooperation. It is a UN organisation.

Source: About the World Bank

QUESTION 7.

Consider the following statements in regard to Capital Market:

1. Capital market is a medium and a platform for long term funds. It helps to generate bulk fund for

government and industries.

2. The institutions in the capital market are called Non-Banking Financial Companies.

Which of the above given statement(s) is/are correct?


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a) 1 only

b) 2 only

c) Both

d) None

Correct Answer: C

Your Answer: A

Explanation

Solution (c)

Capital Market and NBFCs

· Capital market is a medium and a platform for long term funds. It helps to generate bulk fund for

government and industries.

· The institutions in the capital market are called Non- Banking Financial Companies.

RBI classifies -- “Housing Finance Companies, Merchant Banking Companies, Stock Exchanges,

Companies engaged in the business of stock-broking/sub-broking, Venture Capital Fund Companies, Nidhi

Companies, Insurance companies and Chit Fund Companies -- as NBFCs”.

· All the institutions listed in the above observation are capital market institutions.

· But it is not necessary that all NBFCs are capital market institutions.

QUESTION 8.

Below given are the statements in regard to India and WTO. Select the correct statement/s from the code

given below:

1. India is a founder-member of both GATT and WTO.

2. India’s Trade Policy Review by the WTO is carried out every year.

3. Highest decision-making body of the WTO is the Ministerial Conference.

Choose the appropriate answer:

a) 1 only

b) 1 and 2 only

c) 1 and 3 only

d) 2 and 3 only

Correct Answer: C




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Your Answer: C

Explanation

Solution (c)

WTO and India

· India is a founder-member of both GATT and WTO. The WTO provides a rule based, transparent and

predictable multilateral trading system.

· India’s TPR is carried out every four years (not every year).

· Last such review was in June 2015 which was Sixth Trade Policy Review (TPR) of India.

QUESTION 9.

Consider the following about World Intellectual Property Organisation (WIPO).

1. World Intellectual Property Organisation is a member of the World Bank group.

2. WIPO was created in 1967 “to encourage creative activity, to promote the protection of intellectual

property throughout the world”.

3. The predecessor to WIPO was the BIRPI ( Bureaux Internationaux Réunis pour la Protection de la

Propriété Intellectuelle , French acronym for United International Bureaux for the Protection of Intellectual

Property )

4. WIPO's member states and stakeholders share a common goal: an efficient and accessible intellectual

property system that provides benefits to all.

Select the correct answer:

a) 1 and 2 only

b) 1, 2 and 4only

c) 2, 3 and 4 only

d) All of the above

Correct Answer: C

Your Answer: Unanswered

Explanation

Solution (c)




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The World Intellectual Property Organization ( WIPO ) is one of the 17 specialized agencies of the United

Nations. WIPO was created in 1967 "to encourage creative activity, to promote the protection of intellectual

property throughout the world. It is not a World Bank group member”.

Source: WIPO - World Intellectual Property Organization

QUESTION 10.

India is regarded as a country with “Demographic Dividend”. This is due to:

a) Its high population in the age group below 15 years

b) Its high population in the age group of 15-64 years

c) Its high population in the age group above 65 years

d) Its high total population

Correct Answer: B

Your Answer: B

Explanation

Solution (b)

The working-age population is said to be persons in age group 20-64 years, as per UN classification.

In India, it is 15-64 years. Usually India is regarded as a country with “Demographic Dividend” because of

its young working age population.

Source: Ramesh Singh, India and Global Economy Chapter -- CHANGING DYNAMICS OF GLOBAL

ECONOMY

QUESTION 11.

Which of the following statement[s] is/are correct regarding the Government’s flagship program Jan Dhan

Yojana

1. It is a Zero-balance account

2. It covers both rural and urban areas

3. Any resident of India, who is of the age 10 years or above is eligible to open an account

4. The scheme provides for accidental insurance


a) 1, 2 and 3 Only

b) 1 and 4 Only

c) 1, 2 and 4 Only

d) 1, 2, 3 and 4


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Correct Answer: C

Your Answer: A

Explanation

Solution (c)

Objective of " Pradhan Mantri Jan- Dhan Yojana (PMJDY)" is ensuring access to various financial services

like availability of basic savings bank account, access to need based credit, remittances facility, insurance

and pension to the excluded sections i.e. weaker sections & low income groups. This deep penetration at

affordable cost is possible only with effective use of technology.

The plan envisages universal access to banking facilities with at least one basic banking account for every

household, financial literacy , access to credit, insurance and pension facility. In addition, the

beneficiaries would get RuPay Debit card having inbuilt accident insurance cover of 1 lakh . The plan

also envisages channeling all Government benefits (from Centre / State / Local Body) to the

beneficiaries accounts and pushing the Direct Benefits Transfer (DBT) scheme of the Union Government.

Swabhimaan – villages only; anyone but an Indian citizen >10 yrs eligible

Source:

http://www.thehindu.com/business/Economy/80-per-cent-jan-dhan-accounts-have-balance-now-says-jaitley/article9198691.ece

QUESTION 12.

With reference to BRICS, consider the following statements

1. All 5 members of BRICS are members of G20

2. Asian Infrastructure Investment Bank was established by BRICS

3. The 8 th BRICS Summit will be the first summit India will be hosting since its inception


a) 1 Only

b) 2 and 3 Only

c) 1, 2 and 3

d) None

Correct Answer: A

Your Answer: A

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Solution (a)

Delhi, 2012 (4 th Summit) - The BRICS Cable announced an optical fibre submarine communications cable

system that carries telecommunications between the BRICS countries.

Source: http://brics2016.gov.in/content/innerpage/about-usphp.php

QUESTION 13.

Hollock Gibbon is a precious jewel of the Indian forest. Consider the following statements regarding this

ape

1. It is India’s only ape species

2. They are critically endangered species

3. Both species of Hollock Gibbon’s (Eastern and Western)are found in India

4. It is found only in North East India


a) 1, 2 and 3 Only

b) 2 and 4 Only

c) 2 and 3 Only

d) 1, 3 and 4

Correct Answer: D


Explanation

Solution (d)

They are found in Assam and the low-end forests of eastern Brahmaputra. They are also found in

Nagaland. Its range extends into seven states covering Arunachal Pradesh, Assam, Manipur, Meghalaya,

Mizoram, Nagaland, and Tripura (The seven northeastern states of India)

Source:

http://www.thehindu.com/news/national/other-states/special-programme-on-conservation-of-gibbons/article7732017.ece

QUESTION 14.

With reference to National Pension System (NPS), consider the following statements


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1. The contribution to the scheme is on voluntary-basis

2. Any Indian citizen between the age of 18 to 60 years old is eligible for the scheme

3. NRI’s are eligible under the scheme

4. RBI regulates NPS scheme


a) 1, 2 and 3

b) 1 Only

c) 1 and 2 Only

d) 1, 3 and 4

Correct Answer: A

Your Answer: B

Explanation

Solution (a)

The NPS was launched on the 1st of January 2004 and was aimed at individuals newly employed with the

central government, but not including ones in the armed forces. From the year 2009 however, the NPS was

made open to every Indian citizen between the age of 18 and 60.

A voluntary, defined contribution retirement savings scheme designed to enable individuals to save

systematically during their earning life, was envisaged in 1999.

NPS seeks to inculcate the habit of saving for retirement and provide for regular income during the retired

years. And as life expectancy is on the way up, you may need to stack up more wealth than estimated

earlier. In fact, recent Union Ministry of Health and Family Welfare statistics show that life expectancy in

India has gone up by five years, from 62.3 years for males and 63.9 years for females between 2001 and

2005 to 67.3 years and 69.6 years respectively between 2011 and 2015.

Source:

http://www.thehindu.com/business/Economy/who-will-regulate-pension-products/article9208436.ece

QUESTION 15.

Drug prices are monitored and controlled by a ‘X’ authority/body which comes under

a) Ministry of Chemicals and Fertilizers

b) Ministry of Health and Family Welfare

c) Ministry of Finance

d) Prime Minister







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Correct Answer: A

Your Answer: B

Explanation

Solution (a)

Drug prices are monitored and controlled by the National Pharmaceutical Pricing Authority (NPPA). All the

powers of Government of pricing according to Essential Commodities Act have been delegated to it. Under

DPCO, 2013 the powers to review are vested with the Government. Hence, the Department of

Pharmaceuticals is the reviewing authority whenever pharmaceutical companies file review petitions

against any price fixation done by NPPA.

It is pertinent to note that the Drugs & Cosmetics Act, 1940 and Rules made thereunder administered by

the Ministry of Health and Family Welfare do not contain any provisions for pricing of drugs. Instead, pricing

of drugs is administered under the provisions of the Drug Price Control Order (DPCO) and National

Pharmaceutical Pricing Policy by the National Pharmaceutical Pricing Authority (NPPA) under Department

of Pharmaceuticals, Ministry of Chemicals and Fertilisers.

Source:

http://indianexpress.com/article/business/business-others/govt-asks-nppa-to-re-fix-ceiling-prices-of-three-essential-drugs-3079574/

QUESTION 16.

Which among the following is not SEBI regulated NBFC?

a) Venture Capital Fund

b) Merchant Banking companies

c) Stock Broking companies

d) Housing Loan companies

Correct Answer: D


Explanation

Solution (d)

SEBI regulated NBFCs includes –

1. Venture Capital Fund

2. Merchant Banking companies







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3. Stock Broking companies

Housing loan companies are regulated by National Housing Bank. Housing loan companies finance

construction and purchase of house.

QUESTION 17.

Below given are the name of the banks and associated headquarters. Select the incorrect pair –

a) New Development Bank : : Shanghai

b) Asian Infrastructure Investment Bank : : Beijing

c) Asian Development Bank : : Manila

d) None of the above

Correct Answer: D

Your Answer: D

Explanation

Solution (d)

All the given pairs are matched correctly. Hence, (d) is the correct answer.

QUESTION 18.

In India, mergers and acquisition of firms are regulated by

a) National Manufacturing Competitiveness Council

b) Competition Commission of India

c) Security and Exchange Board of India

d) Department or Industrial Policy and Promotion

Correct Answer: B

Your Answer: B

Explanation

Solution (b)

In India, mergers and acquisition of firms are regulated by Competition Commission of India

QUESTION 19.

Given below are some major symptoms of an economy:

1. Lower inflation with low aggregate demand

2. Unemployment rate increasing steadily




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3. Voluntary labour cuts by industries

Select the correct phase of ‘economic cycle’ in which the economy seems to be under-going through:

a) Recession

b) Depression

c) Stagnation

d) Slowdown

Correct Answer: A

Your Answer: A

Explanation

Solution (a)

Recession is one of the economic/business cycle of the economies, which has the common symptoms of: a

general fall in aggregate demand of goods and services; lower levels of inflation; falling rate of

employment/rising rate of unemployment; production houses applying various tools of labour cuts (but they

are 'voluntary’ and not ‘forced’). With every symptom being the same, if the production houses start going

for ‘forced labour cuts’, this is the phase of ‘Depression’ which visited the market economies of Europe and

America in 1929 (the Great Depression).

QUESTION 20.

Below given are the reports/index and publishing agency/institution. Select the incorrect one:

a) World Economic Outlook : : IMF

b) Global Competitive Index : : WTO

c) Ease of Doing Business : : IBRD (World Ban

d) Human Development Index : : UNDP

Correct Answer: B

Your Answer: B

Explanation

Solution (b)

Global Competitive Index is published by World Economic Forum

QUESTION 21.

With regard to Index of Industrial Production (IIP), consider the following statements

1. The base year is 2011-12




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2. It is published monthly by Central Statistical Organisation

3. Highest weightage is given to mining sector


a) 2 Only

b) 1 and 2 Only

c) 1, 2 and 3

d) 1 and 3

Correct Answer: A

Your Answer: C

Explanation

Solution (a)

Base year – 2004-05

The Index of Industrial Production (IIP) is an index for India which details out the growth of various

sectors in an economy such as mining, electricity and manufacturing .

Related – 8 core sectors ( Electricity , steel, refinery products, crude oil, coal, cement, natural gas and

fertilisers.)

Composition of IIP Currently, the Index of Industrial Production comprises 682 individual items.

Maximum weightage is of manufacturing items (755.27), followed by Mining (141.57) and Electricity

(103.16)

Source:

http://www.thehindu.com/opinion/op-ed/how-is-the-indian-economy-really-doing/article9208453.ece

QUESTION 22.

Consider the following statements regarding ‘Goods and Service tax’.

1. GST is a tax only on the value addition at each stage

2. Alcohol and tobacco products are kept out of proposed GST regime

Which of the above statement[s] is/are correct?

a) 1 Only

b) 2 Only

c) Both 1 and 2

d) Neither 1 nor 2






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Correct Answer: A

Your Answer: B

Explanation

Solution (a)

Alcoholic liquor for human consumption is exempt from GST.

Initially, GST will not apply to: (a) petroleum crude, (b) high speed diesel, (c) motor spirit (petrol), (d) natural

gas, and (e) aviation turbine fuel. The GST Council will decide when GST will be levied on them. Tobacco

and tobacco products will be subject to GST. The centre may also impose excise duty on tobacco.

QUESTION 23.

Recently, the Constitution (122nd Amendment) Bill 2014 (GST) got President’s assent. Which of the

following is NOT the provision under the Bill?

a) A law made by Parliament in relation to GST will not override a state law on GST

b) Exclusive powers are given to centre over inter-state trade and commerce

c) All decisions of the GST Council will be made by two-third majority of the votes cast

d) Both a and b

Correct Answer: C

Your Answer: D

Explanation

Solution (c)

Goods and Services Tax (GST) Bill – Explained:

http://indianexpress.com/article/explained/gst-bill-parliament-what-is-goods-services-tax-economy-explained-2950335/

QUESTION 24.

To which of the following category, Noble prizes are NOT given?

a) Physiology

b) Literature

c) Chemistry

d) None

Correct Answer: D

Your Answer: D

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Solution (d)

The Nobel Peace Prize is one of the five Nobel Prizes created by the Swedish industrialist, inventor, and

armaments manufacturer Alfred Nobel, along with the prizes in Chemistry, Physics, Physiology or

Medicine, and Literature.

The Nobel Prize is a set of annual international awards bestowed in a number of categories by Swedish

and Norwegian institutions in recognition of academic, cultural, and/or scientific advances.

QUESTION 25.

The management of Haj Pilgrimage comes under

a) Ministry of Minority Affairs

b) Ministry of Culture

c) Ministry of External Affairs

d) Ministry of Home Affairs

Correct Answer: A

Your Answer: C

Explanation

Solution (a)

The work related to management of Haj pilgrimage has been transferred from Ministry of External Affairs to

Ministry of Minority

Source:

http://www.thehindu.com/news/national/haj-pilgrimage-comes-under-control-of-minority-affairs-ministry/article9193652.ece

QUESTION 26.

Which of the below given statements is correct?

a) The UN Monetary and Financial Conference held post Second World War established the international

trading regime called General Agreement on Trade and Tariffs.

b) WTO is part of whole set up of UNO and thus is guided by the actions its member bodies.

c) IMF follow voting by consensus pattern by which each member gets to ensure their idea is considered.

d) WTO doesn’t have weighted voting as the World Bank or the IMF and goes by the system of one

member one vote.

Correct Answer: D


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Solution (d)

The conference referred to in statement (a) is Bretton Wodds Conference and it lead to World Bank and

IMF coming to place.

WTO is not part of UN set up and is independent. However both share an agreement between each other.

IMF follow weighted voting and the members with higher quota get a higher voice.

QUESTION 27.

Consider the following about industrial policy 1991:

1. One of the major objectives was to liberalise the industry from regulatory devices such as licenses and

controls.

2. Ensuring PSUs are not exposed to competition and protected from private sector push.

Select the correct answer:

a) 1 only

b) 2 only

c) Both 1 and 2


Correct Answer: A

Your Answer: A

Explanation

Solution (a)

Introducing competition and ensuring PSUs are run on business lines with no undue protection was the

major objective of the industrial policy 1991.

QUESTION 28.

Which one among the following sectors has attracted the highest foreign direct investment inflows into India

in the last 25 years?

a) Automobile industries

b) Services sector

c) Food processing

d) Special Economic Zones

Correct Answer: A

Your Answer: B

Explanation




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Solution (a)

Overall the telecommunication sector has been the highest FDI attracting sector of the Indian Economy.

But among the given options, Automobile industry had attracted highest FDI inflows.

QUESTION 29.

Consider the following international economic organizations:

1. International Bank for Reconstruction and Development (IBRD)

2. International Finance Corporation (IFC)

3. International Fund for Agricultural Development (IFAD)

4. International Monetary Fund (IMF)

Which of the above given agencies is/are not sponsored by the United Nations?

a) 1 and 2

b) 1 only

c) 2 and 3


Correct Answer: D


Explanation

Solution (d)

All are sponsored by United Nations Organisation.

QUESTION 30.

Consider the following statements related to the RBI:

1. Reserve Bank of India was privately owned before its nationalisalion .

2. After nationalisation the RBI seized to function as a bank.

Which of the above is/are not correct?

a) 1 only

b) 2 only

c) Both

d) None

Correct Answer: D




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Your Answer: C

Explanation

Solution (d)

After independence, the government passed Reserve Bank (Transfer to Public Ownership) Act, 1948 and

took over RBI from private shareholders after paying appropriate compensation. Thus, nationalisation of

RBI took place in 1949 and from January 1, 1949, RBI started working as a government owned central

bank of India.

Source: https://www.rbi.org.in/scripts/aboutusdisplay.aspx

QUESTION 31.

Consider the following statements about ethanol blending

1. It is the practice of blending petrol with ethanol

2. It reduces vehicular emissions & import burden on account of crude petroleum

3. Ethanol blending first found mention in the National Policy on Bio-fuels, 2009

Which of the following statements is/are correct?

a) Only 1

b) 1 and 2

c) 2 and 3

d) All of the above

Correct Answer: B

Your Answer: D

Explanation

Solution (b)

It is the practice of blending petrol with ethanol. Many countries, including India, have adopted ethanol

blending in petrol in order to reduce vehicle exhaust emissions and also to reduce the import burden on

account of crude petroleum from which petrol is produced. It is estimated that a 5% blending (105 crore

litres) can result in replacement of around 1.8 million Barrels of crude oil. The renewable ethanol content,

which is a by-product of the sugar industry, is expected to result in a net reduction in the emission of

carbon dioxide, carbon monoxide (CO) and hydrocarbons (HC). Ethanol itself burns cleaner and burns

more completely than petrol it is blended into. In India, ethanol is mainly derived by sugarcane molasses,

which is a by-product in the conversion of sugar cane juice to sugar.


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Ethanol blending first found mention in the Auto fuel policy of 2003. It suggested developing technologies

for producing ethanol/ bio fuels from renewable energy sources and introducing vehicles to utilise these bio

fuels. Later, as per National Policy on Bio-fuels, announced in December 2009, oil companies were

required to sell petrol blended with at least 5% of ethanol. It proposed that the blending level be increased

to 20% by 2017.

Source:

http://indianexpress.com/article/business/commodities/cabinet-nod-to-revision-of-ethanol-price-for-petrol-blending-3080428/

QUESTION 32.

15.2% of Indians are undernourished according to Global Hunger Index (GHI). GHI is published by

a) World Health Organisation

b) Médecins Sans Frontières (MSF)

c) International Food Policy Research Institute (IFPRI)


Correct Answer: C

Your Answer: C

Explanation

Solution (c)

Source:

http://www.livemint.com/Politics/ZIPsHik4xPnCQMJlrWYTuM/Indias-hunger-crisis-is-worse-than-other-South-Asian-nation.html

QUESTION 33.

Consider the following statements about Polymerase chain reaction (PCR)

1. It is a technique used in molecular biology to amplify a single copy or a few copies of a piece of DNA

across several orders of magnitude, generating thousands to millions of copies of a particular DNA

sequence

2. It is a recombinant DNA method

3. It is used for Chick Sexing


a) Only 1

b) 1 and 2

c) 1 and 3

d) All of the above










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Correct Answer: C

Your Answer: D

Explanation

Solution (c)

PCR is a technique used in molecular biology to amplify a single copy or a few copies of a piece of DNA

across several orders of magnitude, generating thousands to millions of copies of a particular DNA

sequence.

PCR is not generally considered to be a recombinant DNA method, as it does not involve cutting and

pasting DNA, only amplification of existing sequences.

Source:

http://www.thehindu.com/news/cities/chennai/gender-identification-with-feathers-of-birds-by-madras-vet-college/article9202355.ece

QUESTION 34.

NASA Invents ‘Electric Gauze’ That Can Speed Up Wound Healing. Consider the following statements

1. The fibres of the guaze are made of Polyvinylidene Flouride (PVDF)

2. Only one time external power source is required

3. Wounds tend to heal much more quickly if small amounts of electricity are applied to the surrounding

tissue


a) Only 1

b) 1 and 3

c) 2 and 3

d) All of the above

Correct Answer: B


Explanation

Solution (b)

US space agency NASA has developed a high-tech electroactive bandage that creates an electric charge

to help promote the healing process of wounds. The bandage is made of an electroactive material that is







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stimulated by pressure of cell growth and body heat.

An electroactive device is applied to an external wound site, which utilises low level electrical stimulation to

promote wound healing. Electroactive material is so sensitive that a push or even blow on it can create an

electric charge.

The fibres of the guaze are made of electroactive material Polyvinylidene Flouride (PVDF) which are

stimulated by the heat of the body and the pressure of cell growth, thus no external power source is

required.

The bandage also minimises infection and related complications such as illness or amputation. It speeds

the wound’s healing process. The electroactive material is made using a polyvinylidene fluoride (PVDF).

Source:

http://timesofindia.indiatimes.com/home/science/Nasas-electric-bandage-to-speed-up-wound-healing/articleshow/54781697.cms

QUESTION 35.

Which of the following regulates pension products

1. PFRDA

2. IRDA

3. SEBI

Select the correct code:

a) Only 1

b) 1 and 2

c) 1 and 3

d) All of the above

Correct Answer: D

Your Answer: A

Explanation

Solution (d)

Pension products floated by insurance companies come under the purview of the Insurance Regulatory

and Development Authority (IRDA) while those sold by mutual funds are overseen by the SEBI.







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Source:


QUESTION 36.

Consider the following statements with regard to India and IMF:

1) India is the founder member of the IMF and also among the top 10 members of IMF

2) India was among the first five nations having the highest quota with IMF and due to this status India was

allotted a permanent place in Executive Board of Directors.


a) 1 only

b) 2 only

c) Both

d) None

Correct Answer: C

Your Answer: D

Explanation

Solution (c)

IMF works on quota system, Countries contribute funds to a pool through a quota system from which

countries experiencing balance of payments difficulties can borrow money. IMF is controlled and managed

by a Board of Governors. Currently there are 24 Directors and each representing a single country or a

group of countries. The transactions of IMF are expressed in Special Drawing Right (SDR) which is also

known as Paper Gold. The IMF's financial year is form May 1 to April 30.

India is the founder member of the IMF and also among the top 10 members of IMF, along with the U.S,

Japan, France, Germany, Italy, the United Kingdom, China and Russia. IMF has played an important role in

Indian economy. IMF has provided economic assistance from time to time to India and has also provided

appropriate consultancy in determination of various policies in the country. India was among the first five

nations having the highest quota with IMF and due to this status India was allotted a permanent place in

Executive Board of Directors.

QUESTION 37.

Bank Rate implies the rate of interest

a) paid by the Reserve Bank of India on the Deposits of Commercial Banks

b) charged by Banks on loans and advances

c) payable on Bonds

d) at which the Reserve Bank of India discounts the Bills of Exchange







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Correct Answer: D

Your Answer: D

Explanation

Solution (d)

Bank rate is the rate charged by the central bank for lending funds to commercial banks.

Bank rates influence lending rates of commercial banks. Higher bank rate will translate to higher lending

rates by the banks. In order to curb liquidity, the central bank can resort to raising the bank rate and vice

versa.

QUESTION 38.

Which among the following are a part of core industries?

1) Fertilizers

2) Refinery Products

3) Natural Gas

4) Iron

5) Cement

6) Electricity

Choose the correct code:

a) 1,2,4,5 and 6

b) 1,2,3,4 and 6

c) 1,2,3,5 and 6

d) 1,2,3,4,5 and 6

Correct Answer: C

Your Answer: D

Explanation

Solution (c)

There are eight core sector industries - Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel

(Note: No Iron or Iron ore), Cement and Electricity.

QUESTION 39.




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Which of the following grants/ grant direct credit assistance to rural households?

1) Regional Rural Banks

2) National Bank for Agriculture and Rural Development

3) Land Development Banks

Select the correct answer using the codes given below:

a) 1 and 2 only

b) 2 only

c) 1 and 3 only

d) 1, 2 and 3

Correct Answer: C

Your Answer: D

Explanation

Solution (c)

NABARD doesn’t give “direct” credit assistance. It provides credit via intermediaries such as Microfinance

companies, cooperative society, RRB.

QUESTION 40.

Priority Sector Lending by banks in India constitutes the lending to

a) agriculture

b) micro and small enterprises

c) weaker sections

d) All of the above

Correct Answer: D

Your Answer: D

Explanation

Solution (d)

For more, refer

· Page 15.12 of Indian Economy by Ramesh Singh

· Page 374 of India 2013 Yearbook third paragraph

QUESTION 41.




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Which of the following statements is true about 'P-Notes' in India?

1. These are issued by SEBI in India

2. They cannot be used within the country

3. Investors in P-Notes are not required to register with SEBI

4. Due to the issue of money laundering, P-Notes are banned in India

Select the correct answer using the code given below.

a) 1, 2 and 3 only

b) 2 and 3 only

c) 1 and 4 only

d) 1, 2, 3 and 4

Correct Answer: B


Explanation

Solution (b)

Participatory Notes commonly known as P-Notes or PNs are instruments issued by registered foreign

institutional investors (FII) to overseas investors, who wish to invest in the Indian stock markets without

registering themselves with the market regulator, the Securities and Exchange Board of India - SEBI.

SEBI permitted foreign institutional investors to register and participate in the Indian stock market in 1992.

PNs have decreased but not completely banned.

A Participatory Note (PN or P-Note) in the Indian context, in essence, is a derivative instrument issued in

foreign jurisdictions, by SEBI and a registered Foreign Institutional Investor (FII) or its sub-accounts or one

of its associates, against underlying Indian securities. PNs are also known as Overseas Derivative

Instruments, Equity Linked Notes, Capped Return Notes, and Participating Return Notes etc.

Read More -

http://www.business-standard.com/article/markets/5-things-to-know-about-p-notes-115072800122_1.html

Source:

http://www.business-standard.com/article/markets/sit-set-to-comb-p-note-data-for-black-money-116101200812_1.html

QUESTION 42.










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Margarita Island is located in

a) Colombia

b) Venezuela

c) Peru

d) Nicaragua

Correct Answer: B

Your Answer: B

Explanation

Solution (b)

Source:

http://indianexpress.com/article/lifestyle/destination-of-the-week/venezuela-porlamar-margarita-island-economic-crisis-history-3060530/

QUESTION 43.

Which of the following states is known as Amur Falcon capital of the world?

a) Manipur

b) Mizoram

c) Nagaland

d) Sikkim

Correct Answer: C

Your Answer: C

Explanation

Solution (c)

Source:

http://www.thehindu.com/sci-tech/energy-and-environment/nagaland-manipur-cheer-as-amur-falcons-arrive/article9208070.ece

QUESTION 44.

Consider the following about ' Himansh ', which was in news recently:

1. It is a glaciological research facility of India located in Antarctica

2. It is established by the National Centre for Antarctic and Ocean Research (NCAOR)

3. The station houses many instruments to quantify the glacier melting and its relation to changing climate.










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Which of the above given statements are correct?

a) 1 and 2 only

b) 1 and 3 only

c) 2 and 3 only

d) 1, 2 and 3

Correct Answer: C

Your Answer: D

Explanation

Solution (c)

Himansh is a glaciological research facility of India located at an altitude of nearly 13,500 feet in Spiti

Valley, Himachal Pradesh.

Himansh is considered to be the highest point from where an Indian glacier research facility is functioning.

The research lab, established by the National Centre for Antarctic and Ocean Research (NCAOR), has

automatic weather stations, ground penetrating radars, geodetic GPS systems and other sophisticated

facilities to study glaciers and their discharge.

The facility will serve as the base for Terrestrial Laser Scanners and Unmanned Aerial Vehicles to digitise

glacier movements and snow cover variations.

The NACOR ventured to set up the station as part of initiatives to understand and quantify glaciers in the

upper Indus basin in Himachal Pradesh and their contribution to river discharge.The glacier studies in the

high altitudes of Himalayas can succeed only with highend research infrastructure that would help in

unhindered collection of scientific data and protection of scientists from harsh weather. Himansh is

expected to provide research support to scientists to quantify the changes happening in Himalayan glaciers

and its hydrological contribution.

Source:

http://www.thehindu.com/sci-tech/science/highaltitude-glacial-lab-opens-in-the-himalayas/article9205004.ece

QUESTION 45.

A plenary session of the International Monetary and Finance Committee (IMFC) on “IMF Institutional

Issues” was recently held in Washington. Consider the following statements about IMFC

1. The IMFC has 24 members who are central bank governors, ministers, or others of comparable rank and

who are usually drawn from the governors of the Fund’s 189 member countries







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2. It has no formal decision-making powers

Select the incorrect statements

a) Only 1

b) Only 2

c) Both 1 and 2

d) Neither 1 nor 2

Correct Answer: D

Your Answer: D

Explanation

Solution (d)

The IMFC advises and reports to the IMF Board of Governors on the supervision and management of the

international monetary and financial system, including on responses to unfolding events that may disrupt

the system. It also considers proposals by the Executive Board to amend the Articles of Agreement and

advises on any other matters that may be referred to it by the Board of Governors. Although the IMFC has

no formal decision-making powers, in practice, it has become a key instrument for providing strategic

direction to the work and policies of the Fund.

The IMFC usually meets twice a year, at the Bank-Fund Annual and Spring Meetings. For each meeting,

the Managing Director prepares a draft agenda that is discussed by the Executive Board, approved by the

IMFC Chair, and formally adopted by the IMFC at the meeting. At the end of the meetings, the Committee

issues a communiqué summarizing its views. These communiqués provide guidance for the IMF’s work

program during the half year leading up to the next Spring or Annual Meetings.

The size and the composition of the IMFC mirrors that of the Executive Board. The IMFC has 24 members

who are central bank governors, ministers, or others of comparable rank and who are usually drawn from

the governors of the Fund’s 189 member countries. Each member country that appoints an Executive

Director and each group of member countries that elects an Executive Director appoints a member of the

IMFC. The group is currently chaired by Agustín Carstens , Governor of Banco de México, who was

selected to head the Committee in March 2015. The IMFC operates by consensus, including on the

selection of its chairman. While there are no formal rules on term limits, since 2007 IMFC chairmen have

been appointed for a term of three years. A number of international institutions, including the World Bank,

participate as observers in the IMFC’s meetings.

IMFC Membership

Nationalities of current members:

Mexico (Chair)

Algeria

Argentina

Australia

Brazil

Burkina Faso

Canada

China

Denmark

France

Germany

India

Italy

Japan

Malaysia

Netherlands

Russia

Saudi Arabia

South Africa

Spain

Switzerland

Turkey

United Arab Emirates

United Kingdom

United States




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Source: http://pib.nic.in/newsite/PrintRelease.aspx?relid=151557

QUESTION 46.

Consider the following statements:

1) Inflation benefits the debtors.

2) Inflation benefits the bond-holders.


a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Correct Answer: A

Your Answer: D

Explanation

Solution (a)

Inflation redistributes wealth from creditors to debtors i.e. lenders suffer and borrowers benefit out of

inflation.

Refer page 7.8 in Indian Economy by Ramesh Singh, topic title “Effects of Inflation”

QUESTION 47.

A rise in general level of prices may be caused by

1) an increase in the money supply

2) a decrease in the aggregate level of output

3) an increase in the effective demand

Select the correct answer using the codes given below.

a) 1 only

b) 1 and 2 only

c) 2 and 3 only

d) 1, 2 and 3

Correct Answer: D


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Your Answer: D

Explanation

Solution (d)

All three lead to inflation.

QUESTION 48.

Which one of the following groups of items is included in India's Foreign Exchange Reserves?

a) Foreign-currency assets, Special Drawing Rights (SDR and loans from foreign countries

b) Foreign-currency assets, gold holdings of the RBI and SDRs

c) Foreign currency assets, loans from the World Bank and SDRs

d) Foreign currency assets, gold holdings of the RBI and loans from the World Bank

Correct Answer: B

Your Answer: A

Explanation

Solution (b)

It contains

• SDRs

• Gold

• Foreign Currency Assets

• Reserve Tranche Position in IMF

QUESTION 49.

Which one of the following is likely to be the most inflationary in its effect?

a) Repayment of public debt

b) Borrowing from the public to finance a budget deficit

c) Borrowing from banks to finance a budget deficit

d) Creating new money to finance a budget deficit

Correct Answer: A

Your Answer: D

Explanation

Solution (a)

The three option statements except (a) in the question are revolving around the refinancing the budget

deficit.




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Government borrows from Public

· If the government borrows from the public, funds are diverted from the private sector to government and

there is a crowding out means shortage of funds.

Government Borrows from Banks

· If the Government borrows from the banks, the same effect will be seen as funds will be diverted from the

banking system and banks will have less money to lend.

Creating new money (this means borrows from RBI)

· At the same time, if the government borrows from the central bank (RBI) by selling bonds, it receives new

money from the central bank in exchange for the bonds.

· When this new money is spent, aggregate expenditure increases. Since, in this case, funds are not

diverted from the private sector, there is no crowding out (i.e., there is no shortage of funds for investment

in the private sector). Thus, the expansionary effect is greater than when the deficit is financed by

borrowing from the public. This new money increases effective demand which, if there exist unemployed

labour and idle production capacity in the economy may raise employment and output.

· Deficit financing undertaken for the purpose of building up useful capital during a short period of time, is

likely to improve productivity and ultimately, increase the supply of consumption goods. And the increase in

productivity can act as an anti-inflationary measure.

Repayment of Public Debt

· If the government pays back the money which is held in its bonds, it will increase the available liquidity in

the system, it can cause inflation.

· There are several ways of repayment of public debt and government chooses carefully, whether it has to

actually redeem the bonds or to choose other ways.

QUESTION 50.

An increase in the Bank Rate generally indicates that the

a) Market rate of interest is likely to fall

b) Central Bank is no longer making loans to commercial banks

c) Central Bank is following an easy money policy

d) Central Bank is following a tight money policy

Correct Answer: D

Your Answer: C




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Explanation

Q.50) Solution (d)

Bank Rate: RBI lends money to its clients for long term loans at this interest rate.

Tight monetary policy: when RBI raises the rates to decrease liquidity.


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