insights solutions mock test 12

INSIGHTS SOLUTIONS MOCK TEST 12

http://insightsonindia.com INSIGHTS

1. Solution: c)

http://rural.nic.in/sites/downloads/our-schemes-

glance/SalientFeaturesMGNREGA.pdf

2. Solution: d) The electoral college of the President consists of : a) Elected members of both the houses of the parliament b) Elected members of Legislative assemblies of the states and c) Elected members of assemblies of Delhi and Pudducherry

3. Solution: b)

The Janata Party government rejected the Fifth Five-Year Plan and introduced a new

Sixth Five-Year Plan (1978-1983). This plan was again rejected by the Indian National

Congress government in 1980 and a new Sixth Plan was made. The earlier one was

subsequently referred to as a rolling plan.

4. Solution: d)

http://timesofindia.indiatimes.com/india/Life-expectancy-in-India-goes-up-by-5-

years-in-a-decade/articleshow/29513964.cms

http://en.wikipedia.org/wiki/List_of_countries_by_life_expectancy#List_by_the_

World_Health_Organization_.282013.29

5. Solution: b)

At this time Indira Gandhi was the Prime Minister. The Indira Gandhi

government nationalised 14 major Indian banks and the Green Revolution in

India advanced agriculture. In addition, the situation in East

Pakistan (now Bangladesh) was becoming dire as the Indo-Pakistan War of

1971 and Bangladesh Liberation War took funds earmarked for industrial

development. India also performed the Smiling Buddha underground nuclear test in

1974, partially in response to the United States deployment of the Seventh Fleet in

the Bay of Bengal. The fleet had been deployed to warn India against attacking West

Pakistan and extending the war.

The target growth rate was 5.6%, but the actual growth rate was 3.3%



6. Solution: d)

The trade winds in two belts on the equatorial sides of the Horse Latitudes heat up

as they move toward the Equator. These dry winds dissipate cloud cover, allowing

more sunlight to heat the land. Most of the major deserts of the world lie in areas

crossed by the trade winds. The world's largest desert, the Sahara of North Africa,

which has experienced temperatures as high as 57° C, is a trade wind desert.

Most deserts are located on the Western Margins.

It‘s not war, but Cold currents which have dessicating effect so that moisture is not

easily condensed into precipitation.

http://pubs.usgs.gov/gip/deserts/types/

7. Solution: b) The practice of insurers transferring portions of risk portfolios to other parties by some form of agreement in order to reduce the likelihood of having to pay a large obligation resulting from an insurance claim is called reinsurance. The intent of reinsurance is for an insurance company to reduce the risks associated with underwritten policies by spreading risks across alternative institutions.

8. Solution: b)

http://www.financialexpress.com/news/poor-economic-growth-in-india-in-2013-

derails-planning-commissions-target-in-12th-plan/1211895

http://www.hindustantimes.com/business-news/plan-panel-for-lowering-growth-

target-in-12th-plan-to-8/article1-981049.aspx

9. Solution: b)

Page 48, Goh Cheng Leong

The Malaspina glacier in Alaska is the largest piedmont glacier in the world.

http://nsidc.org/cryosphere/glaciers/gallery/piedmont.html



10. Solution: d)

The second phase of the struggle in South Africa, which began in 1906, was

characterized by the use of the method of passive resistance or civil disobedience,

which Gandhiji named Satyagraha. It was first used when the Government enacted

legislation making it compulsory for Indians to take out certificates of registration

which held their finger prints. It was essential to carry these on person at all times.

Gandhiji protested against this. He started a campaign against this.

In August 1908, a number of prominent Indians from Natal crossed the frontier into

Transvaal to defy the new immigration laws and were arrested. Other Indians from

Transvaal opposed the laws by hawking without a license; traders who had Licenses

refused to produce them. All of them were jailed. Gandhiji himself landed in jail in

October 1908 and, along with the other Indians, was sentenced to a prison term

involving hard physical labour and miserable conditions. But imprisonment failed to

crush the spirit of the resisters, and the Government resorted to deportation to India,

especially of the poorer Indians

Regarding his sustenance, the funds for supporting the families of the Satyagrahis

and for running Indian Opinion were fast running out. Gandhiji‘s own legal practice

had virtually ceased since 1906, the year he had started devoting all his attention to

the struggle. At this point, Gandhiji set up Tolstoy Farm, made possible through the

generosity of his German architect friend, Kallenbach, to house the families of the

Satyagrahis and give them a way to sustain themselves. Tolstoy Farm was the

precursor of the later Gandhian ashrams that were to play so important a role in the

Indian national movement. Funds also came from India — Sir Ratan Tata sent Rs.

25,000 and the Congress and the Muslim League, as well as the Nizam of

Hyderabad, made their contributions



11. Solution: d) Refer to https://www.nabard.org/English/rrbs.aspx and the section on RRBs in Ramesh Singh.

12. Solution: b)

All the MPs whether elected or nominated take part in the election of the President. Impeachment proceedings can be started by either house of the Parliament. The concerned house investigates the charges, not the Supreme Court of India.

13. Solution: d)

http://pib.nic.in/archieve/flagship/bkg_mdm1.pdf

14. Solution: a)

Deciding on a bill comes under the legislative powers of the President of India. Appointing the judges and pardoning/remitting/commuting/granting reprieve in sentences comes under the judicial powers.

15. Solution: d)

Refer to the concerned section in Ramesh Singh – Insurance in India.

16. Solution: d)

LIC was setup in 1956 as a completely state owned company. Today it has become one of the most successful government companies. In some of the disinvestment auctions lately, LIC bought nearly 90% of the offerings in equities.

17. Solution: d)

Glaciers move fast in the middle as there is little obstruction. In the sides, its

movement is held back by valley spurs and valley floors.



In Antarctica the motion is too slow as there is no heat to melt the ice. It‘s melting

caused by the heat which makes glacier move.

Page 47 and 48, Goh Cheng Leong

18. Solution: c)

There are only three grounds to issue an ordinance: - The parliament should not be in session, whether one or both the houses - The subject must be very urgent that any delay in passing such a bill may be

against public interest, like in the recent case of Criminal law (amendment) ordinance, 2013.

- The council of ministers must advice the President to do so.

19. Solution: a)

The resignation of the PM leads to the dissolution of the Lok Sabha only in case another government can not be formed. But his resignation may bring the collapse of the council of ministers only if an alternative PM from the same party is not present.

20. Solution: c)

Page no. 62, Goh Cheng Leong

Limestone is a sedimentary rock. Because of its well jointed structure and porous

nature, Karst regions don‘t have surface drainage system.

21. Solution: d)

The programme of non-cooperation included within its ambit the surrender of titles

and honours, boycott of government affiliated schools and colleges, law courts,

foreign cloth, and could be extended to include resignation from government service

and mass civil disobedience including the non-payment of taxes. National schools

and colleges were to be set up, panchayats were to be established for settling

disputes, hand-spinning and weaving was to be encouraged and people were asked

to maintain Hindu- Muslim unity, give up untouchability and observe strict non-

violence. Gandhiji promised that if the programme was fully implemented, Swaraj

would be ushered in within a year. The Nagpur session, thus, committed the



Congress to a programme of extra-constitutional mass action. Many groups of

revolutionary terrorists, especially in Bengal, also pledged support to the movement.

22. Solution: a)

The Lok Sabha does not represent all the UTs, but the Rajya Sabha does. So the Parliament as a whole represents all UTs. Even while we follow a system where states are allocated seats based on its population, all constituencies do not have same population. Also, some states are less populated and therefore they are represented more than their population makes them eligible to, e.g. Nagaland.

23. Solution: d)

The SARFAESI Act was necessary to counter the menace of the NPAs. It also stopped forceful acquisition of the borrowing. Under this act legal measures to recover the NPAs effectively are mentioned. All the options except the third one come under legal means.

24. Solution: b)

Holding an office of profit is not a disqualification. In a recent case, when president Pranab Mukherjee‘s election was challenged on the ground that he holds an office of profit in Indian Statistical Institute (ISI), he was still a MP at that time. Many MPs hold office of profits. This term has been defined under the law.

25. Solution: c)

Banking deposits and the money held by the public form a part of the money supply. Whether a bank issues a cheque or if a customer deposits money, it will not change the money supply. But any issue by RBI or reduction in the CRR would inject liquidity in the system thus increasing the money supply.

26. Solution: a)

Refer to the position with respect to lapse of bills in Laxmikanth- Indian Polity.

27. Solution: b)



Tombolo is a deposition landform in which an island is attached to the mainland by

a narrow piece of land such as a spit or bar.

28. Solution: d)

Refer to the section on motions in Laxmikanth – Indian Polity.

29. Solution: c)

SLR can be kept in any form prescribed by the government. Government generally prescribes government bonds for basically two reasons – a) The government can raise money from the banks easily and b) The banks will be able to get a decent rate of interest on such a large investment of as much as 23% of their deposits.

30. Solution: a)

The Indian indenture system was an ongoing system of indenture, a form of debt bondage, by which perhaps two million Indians were transported to various colonies ofEuropean powers to provide labour for the (mainly sugar) plantations. It started from the end of slavery in 1833 and continued until 1920. http://www.britannica.com/EBchecked/topic/284999/indentured-labour

31. Solution: d)



A public bill reflects the policies of the ruling party and hence can be introduced only by a minister. A private bill on the other hand deals with general matters, and is thus introduced by a private MP. Rajya Sabha can not delay the passing of a money bill as central budget or any spending should be decided by house of people and not house of the states. In case the delay is more than six months for an ordinary bill, a joint sitting is called by the President.

32. Solution: d)

The assent of the majority of the judges in the 4 judge collegiums ( including CJI) is necessary for appointment of the judges of the court. Sole opinion of the CJI does not stand much ground. A learned jurist or a legal luminary can also be appointed as a judge. This is in view of adding academic expertise to the judgements of the SC.

33. Solution: c)

Reverse repo rate is basically the rate that banks get for parking their funds with the RBI. Reducing this rate makes the bank park their money somewhere else and not with RBI. For it is less attractive to them. Money parked outside RBI circulated by the banks would become a part of the money supply.

34. Solution: d)

In general, DTH service is the one in which a large number of channels are digitally

compressed, encrypted, uplinked and beamed down over a territory from a very

high power satellite. The DTH signals can be received directly at homes with the

help of a small sized dish receive unit containing a Dish Antenna of diameter 60 to

90 cm installed at the building‘s roof-top or on the Wall facing clear south and one

indoor Set top box unit facilitating viewing of de-multiplexed signals from DTH

channel bouquet on TV set. The DTH signals can be received any where across the

country irrespective of the terrain conditions provided the area comes under the

footprint of the Satellite.

DTH transmission eliminates the intervening role of a local cable operator since a

user is directly connected to the DTH service. DTH Transmission is most preferred

in Ku- Band so as to avoid the need of larger Dish sizes for suitably receiving the

DTH signals. As the DTH telecast is in the Digital mode, user is able to reap all the

benefits of Digital transmission. Programs in the DTH bouquet are having higher

resolution picture and better audio quality than traditional analog signals.



35. Solution: a)

RBI regulates banks as well as NBFIs. There are extra safeguards included in regulating banks given their sensitive handling of large amounts of public money. Money can both be deposited and withdrawn in banks.

36. Solution: c)

The Office of the Registrar of Newspapers for India, more popularly known as RNI came into being on 1st July, 1956, on the recommendation of the First Press Commission in 1953 and by amending the Press and Registration of Books Act 1867.

The Press and Registration of Books Act contains the duties and functions of the RNI. On account of some more responsibilities entrusted upon RNI during all these years, the office is performing both statutory as well as some non-statutory functions.

Under Statutory Functions, the following jobs are covered:

Compilation and maintenance of a Register of Newspapers containing particulars about all the newspapers published.

Issue of Certificate of Registration to the newspapers published under valid declaration;

Scrutiny and analysis of annual statements sent by the publishers of newspapers every year under Section 19-D of the Press and Registration of Books Act containing information on circulation, ownership etc;

Informing the District Magistrates about availability of titles, to intending publishers for filing declaration;

Ensuring that newspapers are published in accordance with the provisions of the Press and Registration of Books Act 1867 and the Rules made there under.

Verification under Section 19-F of the PRB Act, of circulation claims furnished by the publishers in their Annual Statements; and

Preparation and submission to the Government on or before 31st December each year, a report containing all available information and statistics about the press in India with particular



reference to the emerging trends in circulation and in the direction of common ownership units etc.

The following items fall under the non-statutory functions:

Formulation of Newsprint Allocation Policy - Guidelines and issue of Eligibility Certificate to the newspapers to enable them to import newsprint and to procure indigenous newsprint.

Assessing and certifying the essential need and requirement of newspaper establishments to import printing and composing machinery and allied materials.

37. Solution: b) The solution is self-explanatory.

38. Solution: b)

Press Trust of India (PTI) is the largest news agency in India.[1] It is headquartered

in New Delhi and is a nonprofit cooperativeamong more than 450

Indian newspapers and has 984 full-time employees, as on January 8, 2014.[2][3] It

employs over 400 journalists and 500 part-time correspondents located in most of the

district headquarters in the country.[4] A few correspondents are based in major

capitals and important business centres around the world. It took over the

operations of the Associated Press fromReuters soon after India's independence on

August 15, 1947. It provides news coverage and information of the region in

both Englishand Hindi. Its corporate office is located at Sansad Marg, New Delhi

and registered office in D N Road, Mumbai.

39. Solution: b)

Under RRY it is proposed to provide interest subsidy of 5% on loans upto Rs. 5.00

lakh for Economically Weaker Sections (EWS) and Low Income Groups (LIG)

beneficiaries

It‘s 100 percent central scheme.

40. Solution: b)



The young barrister who landed at Durban in 1893 on a one-year contract to sort out

the legal problems of Dada Abdullah, a Gujarati merchant, was to all appearances an

ordinary young man trying to make a living. But he was the first Indian barrister, the

first highly-educated Indian, to have come to South Africa.

41. Solution: b)

The Eighth Plan could not take off in 1990 due to the fast changing political situation

at the centre and the years 1990-91 and 1991-92 were treated as Annual Plans. The

Eighth Plan was finally launched in 1992 after the initiation of structural adjustment

policies.

1989–91 was a period of economic instability in India and hence no five-year plan

was implemented. Between 1990 and 1992, there were only Annual Plans. In 1991,

India faced a crisis in foreign exchange (forex) reserves, left with reserves of only

about US$1 billion.

42. Solution: d)

The President of India is generally bound by the aid and advice of the Council of Ministers under Article 74 of the constitution of India. In some situations he has to act without their aid and advice. All the listed options count under these situations. Moreover, he can also exercise discretion in proroguing and convening sessions of the parliament. A special case is when a government has been challenged under the no-confidence motion: here, the President has the responsibility to summon a session of the Parliament. In the recent case, the present incumbent Pranab Mukherjee delayed the passing of the RPI (Amendment) Act which allowed convicts to fights elections.

43. Solution: a) By the end of the first quarter of 1920, all the excuses in favour of the British Government were fast running out. The Khilafat leaders were told quite clearly that they should not expect anything more and the Treaty of Sevres signed with Turkey in May 1920 made it amply clear that the dismemberment of the Turkish Empire was complete. Gandhiji, who had been in close touch with the Khilafat leaders for quite some time, and was a special invitee to the Khilafat Conference in November 1919, had all along been very sympathetic to their cause, especially because he felt the British had committed a breach of faith by making promises that they had no intention of keeping.



44. Solution: d)

Indian economy grew at 7.7% during the Tenth period, whereas it grew at 8% during

the Eleventh plan.

http://articles.economictimes.indiatimes.com/2014-02-

20/news/47527212_1_growth-rate-gdp-growth-negative-growth

45. Solution: d)

Refer to Ramesh Singh. For better clarity go to http://articles.economictimes.indiatimes.com/2002-01-21/news/27334241_1_demutualisation-trading-rights-brokers

46. Solution: b)

The Estimates Committee examines the effectiveness and economy of the expenditure over the year and based on its own exercises. Members are drawn from both the houses in the PAC.

47. Solution: b)

Jalmani programme was launched in 2008-09 to provide safe and clean drinking

water in rural schools by installing Standalone Water Purification systems.

48. Solution: a)

As per the 24th constitutional amendment bill, it became compulsory for the President to give assent to a constitutional amendment bill. A money bill is introduced after the assent of the President, and hence it can not be returned back for re-consideration. It can either be approved or be withhold.

49. Solution: c)

The vice-president is the chairman of the Rajya Sabha. He has to first impeached by the Rajya Sabha by an absolute majority and then by the Lok Sabha. The constitution unlike in the case of the President, does not mention any ground for his removal.

50. Solution: b)

http://articles.economictimes.indiatimes.com/2014-02-20/news/47527212_1_growth-rate-gdp-growth-negative-growth

http://articles.economictimes.indiatimes.com/2014-02-20/news/47527212_1_growth-rate-gdp-growth-negative-growth

http://articles.economictimes.indiatimes.com/2002-01-21/news/27334241_1_demutualisation-trading-rights-brokers

http://articles.economictimes.indiatimes.com/2002-01-21/news/27334241_1_demutualisation-trading-rights-brokers



India's three-stage nuclear power programme was formulated by Dr. Homi

Bhabha in the 1950s to secure the country‘s long term energy independence, through

the use of uranium and thorium reserves found in the monazite sands of coastal

regions of South India. The ultimate focus of the programme is on enabling the

thorium reserves of India to be utilised in meeting the country's energy

requirements.[1][2] Thorium is particularly attractive for India, as it has only around

1–2% of the global uranium reserves, but one of the largest shares of global thorium

reserves at about 25% of the world's known thorium reserves.[3][4][5][6]

The country published about twice the number of papers on thorium as its nearest

competitors, during each of the years from 2002 to 2006.[7] The Indian nuclear

establishment estimates that the country could produce 500 GWe for at least four

centuries using just the country‘s economically extractable thorium reserves.[8]

As of 2012, the first stage consisting of the pressurised heavy water reactors (PHWR)

is near completion of its planned goals, the second stage consisting of fast breeder

reactors (FBR) is poised to go into operation within one year, and the third stage

consisting of advanced heavy water reactors (AHWR), as one among several

technology options, is slated to begin construction so that its commissioning can be

done by 2020. The recent Indo-US Nuclear Deal and the NSG waiver, which ended

more than three decades of international isolation of the Indian civil nuclear

programme, have created many hitherto unexplored alternatives for the success of

the three-stage nuclear power programme

http://indiatoday.intoday.in/story/advanced-heavy-water-reactor-ahwr-thorium-

reactor-bhabha-atomic-research-centre-mumbai-india/1/345888.html

51. Solution: b)

Gandhiji‘s experience in South Africa was unique in one respect. By virtue of being a

British-educated barrister, he demanded many things as a matter of right, such as

first-class train tickets and rooms in hotels, which other Indians before him had

never probably even had the courage to ask for. Perhaps, they believed that they

were discriminated against because they were not ‗civilized,‘ that is, ‗westernized.‘

Gandhiji‘s experience, the first of a westernized Indian in South Africa,

demonstrated clearly, to him and to them, that the real cause lay elsewhere, in the

assumption of racial superiority by the White rulers.

52. Solution: c)

http://dae.nic.in/?q=node/239

http://indiatoday.intoday.in/story/advanced-heavy-water-reactor-ahwr-thorium-reactor-bhabha-atomic-research-centre-mumbai-india/1/345888.html

http://indiatoday.intoday.in/story/advanced-heavy-water-reactor-ahwr-thorium-reactor-bhabha-atomic-research-centre-mumbai-india/1/345888.html

http://dae.nic.in/?q=node/239



53. Solution: c)

The word cabinet was inserted in the constitution in Article 352 in 1978 by the 44th CA Act. It only defines the cabinet, not its powers and functions.

54. Solution: a)

As per a Supreme Court judgement, the council of ministers can stay even after the dissolution of the Lok Sabha until the next government is formed. For all the actions of the Union of India are taken in the name of the President of India, and he can not exercise his powers without the aid and advice of the council of ministers. If he does so without their advice, it will be unconstitutional.

55. Solution: a)

The climatic snow line is the point above which snow and ice cover the ground

throughout the year. The actual snow line may seasonally be significantly lower.

The interplay of altitude and latitude affects the precise placement of the snow line

at a particular location. At or near the equator, it is typically situated at

approximately 4,500 meters (or about 15,000 feet) above sea level. As one moves

towards the Tropic of Cancer andTropic of Capricorn, the parameter at first

increases: in the Himalayas the permanent snow line can be as high as 5,700 metres

(18,700 feet), whilst on the Tropic of Capricorn no permanent snow exists at all in

the Andes because of the extreme aridity. Beyond the Tropics the snow line becomes

progressively lower as the latitude increases, to just below 3,000 metres in

the Alps and falling all the way to sea level itself at the ice caps near the poles.

56. Solution: c)

Due to miserable failure of the Third Plan the government was forced to declare

"plan holidays" (from 1966–67, 1967–68, and 1968–69). Three annual plans were

drawn during this intervening period. During 1966-67 there was again the problem

of drought. Equal priority was given to agriculture, its allied activities, and

industrial sector. The main reasons for plan holidays were the war, lack of resources,

and increase in inflation.



57. Solution: a)

Prasar Bharati is a statutory autonomous body established under the Prasar Bharati

Act and came into existence on 23.11.1997. It is the Public Service Broadcaster of the

country. The objectives of public service broadcasting are achieved in terms of Prasar

Bharati Act through All India Radio and Doordarshan, which earlier were working

as media units under the Ministry of I&B and since the above said date became

constituents of Prasar Bharati.

58. Solution: a)

End moraines, or terminal moraines, are ridges of unconsolidated debris deposited

at the snout or end of the glacier. They usually reflect the shape of the glacier's

terminus. Glaciers act much like a conveyor belt, carrying debris from the top of the

glacier to the bottom where it deposits it in end moraines.

A medial moraine is a ridge of moraine that runs down the center of a valley floor. It

forms when two glaciers meet and the debris on the edges of the adjacent valley

sides join and are carried on top of the enlarged glacier.


59. Solution: d)


60. Solution: c)

Page No. 56, Goh Cheng Leong

Reg – It is a stony desert composed of extensive sheets of angular pebbles and

gravels

Erg – It is a sandy desert having vast deposits of dunes

61. Solution: b)

Mahila Kisan Sashaktikaran Pariyojana is being designed as a sub–component of the

proposed National Rural Livelihood Mission (NRLM) .The objective is to achieve



socio-economic and technical empowerment of the rural women farmers,

predominantly small and marginal farmers.

62. Solution: b)


Seif: a long, narrow sand dune or chain of dunes, generally oriented in a direction

parallel to the prevailing wind or in a direction resulting from two or more winds

blowing at acute angles to each other. The dune crest consists of a series of peaks and

gaps, and the steep, or slip, face may change sides of the dune according to changes

in wind direction. Most seif dunes occur in the open desert and rest on a coarse sand

sheet. Seifs, common in Libya and southern Iran, may range up to 90 m (300 feet) in

height, with a width of six times their height and a length of up to 100 km (60 miles).

They grow in height and width by the action of crosswinds and in length by the

action of winds parallel to their axis.

63. Solution: d) The Presiding officers of the Parliament include: Speaker and chairman of both the houses; deputy speaker and chairman of both the houses; and the panel of chairpersons and vice-chairpersons of both Lok sabha and Rajya Sabha. The speaker is indirectly elected based on FPTP. The vice-president is indirectly elected based on PR system. The chairpersons are nominated. Hence it is a combination of all.

64. Solution: c)

Anasuya Behn, was one of the main lieutenants of Gandhiji in Ahmadabad mill

workers strike. She was sister of Ambalal Sarabhai, both the adversary and friend of

Gandhiji during the struggle.

65. Solution: a)

Page No. 66 Goh Cheng Leong

Lakes are temporary features as they will be eliminated eventually by silting and

draining.

Fresh lakes form bulk of world‘s lakes.



66. Solution: d)

Page No. 76 and 77, Goh Cheng Leong

Fiord is a long, narrow deep inlet of the sea bordered by steep cliffs. Fjords

commonly extend far inland and are extremely deep in their upper and middle

reaches.Norway's Hardangerfjord drops to 2,624 feet (800 m) below sea level, while

the depth of Sogn Fjord (also Norway) measures 4,290 feet (1,308 m) deep, and Canal

Messier in Chileis 4,167 feet (1,270 m). The great depth of these submerged valleys is

due to their glacial origins.

A ria is a coastal inlet formed by the partial submergence of an unglaciated river

valley. It is a drowned river valley that remains open to the sea. Typically, rias have

a dendritic, treelike outline although they can be straight and without significant

branches. This pattern is inherited from the dendritic drainage pattern of the flooded

river valley. The drowning of river valleys along a stretch of coast and formation of

rias results in an extremely irregular and indented coastline.

67. Solution: d) Refer to the functions of the RBI in the Chapter – Banking in India, Indian economy by Ramesh Singh.

68. Solution: d) CRR is the amount that the banks have to keep with the RBI. The banks do nto earn any interest rate on this CRR, which the banks also called dead asset. CRR has been reduced from as high as 23% to 4% earlier this year.

69. Solution: d)

When CRR is reduced, banks have more cash to lend to customers. This increases the liquidity in the market. Primary liquidity is the amount that is injected in the market without any credit creation by banks. When banks lend the same money (obtained after relaxing CRR) repeatedly, extra credit is created. This extra credit is called secondary liquidity. See the section on banking in 12th NCERT Macroeconomics for gaining more clarity on how banks create credit. Sucking liquidity by increasing CRR leads to lower demand and hence lower inflation in the short-term.



70. Solution: b)

It is used for short-term borrowing purposes (not lending – RBI is the lender). It is the rate at which the RBI gives the banks a loan in the short-term after the banks deposit an equal amount of government security. Hence it has a direct impact on the bank‘s lending rates.

71. Solution: d)

Central Electronics Limited (CEL) holds a unique position among the family of Public Sector Enterprises in Electronics, with its emphasis on indigenous technology inducted both from its in-house developments and from the National Laboratories, for its production programme in diverse high-technology areas of national importance. The activities of CEL are sharply focused in three thrust areas:

Solar photovoltaic cells, modules and systems for a variety of applications. Selected Electronic Systems-Equipment for Railway Signaling and Safety,

Cathodic Protedtion Equipment for Oil Pipelines, Switching Systems and Very Small Aperture Terminals (VSATs).

Selected Electronic components-professional (Soft) Ferrites, Electronic Ceramics, Piezo Electric Elements and Microwave Components.

CEL has been the pioneer in the country in the areas of solar photovoltaics, ferrites and piezo ceramics. Today, it enjoys the international status of being among the top producers of single crystalline silicon solar cells in the world.

72. Solution: a) It targets the poorest of the poor who get loan at 4% of interest rate. It is mandatory for all the banks to lend 1% of their total lending under this scheme.

73. Solution: a) Refer to the section on PSL in Ramesh Singh for more details. Basically the government is trying to push the growth in these sectors/areas for public interest. Software industries are a booming area in our country. Similarliy Agro=Processing industries are also growing. These sectors need a facelift for which PSL provides them the much-needed fiscal support. This is to ensure equitable growth.

74. Solution: a)

The ―Nirmal Gram Puraskar‖ ―Clean Village Award‖ was started in 2005 under

Total Sanitation Campaign (TSC) to honor, felicitate and encourage those Panchayati



Raj Institutions (PRIs) which have achieved full sanitation coverage in their area of

operation and become Open Defecation Free and clean villages, for making TSC into

a mass movement.

75. Solution: a)

Gandhiji then turned his attention to the workers of Ahmedabad. A dispute was brewing between them and the mill owners over the question of a ‗plague bonus‘ the employers wanted to withdraw once the epidemic had passed but the workers insisted it stay, since the enhancement hardly compensated for the rise in the cost of living during the War. The British Collector, who feared a showdown, asked Gandhiji to bring pressure on the mill owners and work out a compromise. Ambalal Sarabhai, one of the leading mill owners of the town, was a friend of Gandhiji, and had just saved the Sabarmati Ashram from extinction by a generous donation. Gandhiji persuaded the mill owners and the workers to agree to arbitration by a tribunal, but the mill owners, taking advantage of a stray strike, withdrew from the agreement. They offered a twenty per cent bonus and threatened to dismiss those who did not accept it. The breach of agreement was treated by Gandhiji as a very serious affair, and he advised the workers to go on strike. He further suggested, on the basis of a thorough study of the production costs and profits of the industry as well as the cost of living, that they would be justified in demanding a thirty-five per cent increase, in wages.

76. Solution: b)


Exfoliation is separation of successive thin shells, or spalls, from massive rock such

as granite or basalt; it is common in regions that have moderate rainfall. The

thickness of individual sheet or plate may be from a few millimetres to a few metres.

Some geologists believe that exfoliation results when rocks formed at depth are

exposed at the ground surface; the previous compressional forces would decrease

and thus allow the rock to expand by fracturing parallel to the surface. Quite often,

however, the fractures are not parallel to the ground surface, and this circumstance

is taken as an indication of some other method of formation. Large daily variations

in temperature, especially pronounced in deserts, were also credited with producing

exfoliation—expansion from heating during the day followed by contraction from

rapid cooling at night was thought to cause the separation of thin slabs from large

blocks of rock at the surface. This view has been discredited by careful experiments

using an electric heating and cooling device; thousands of alternations between

temperatures considerably higher and lower than those measured in deserts have



failed to produce in samples of rock any fractures detectable even under high

magnification.

77. Solution: a)

MSF and LAF are facilities made for the banks to borrow money in the short term from the RBI even below their levels of SLR would permit. Suppose MSF is 1%, then the banks can borrow money till their SLR holdings reach 22% of their total deposits (if 23% is the SLR). If MSF is not there, the banks can only borrow up to the limit of 23% of SLR. Liquidity adjustment facilities are used to aid banks in resolving any short-term cash shortages during periods of economic instability or from any other form of stress caused by forces beyond their control. Various banks will use eligible securities as collateral through a repo agreement and will use the funds to alleviate their short-term requirements, thus remaining stable.

78. Solution: c)

They do not consist only of ministers, but can also contain ordinary citizens. Some of the powerful committees like the appointments committee take decisions on behalf of the cabinet.

79. Solution: d)

Basel Accords are of paramount importance to the banking world and are presently implemented by more than 100 nations across the world. They were the culmination of a long-drawn initiative to strive for greater international uniformity in prudential capital standards for banks. Their objective is to make banking safer and standard across nations in an increasingly globalized world.

80. Solution: d)

Refer to http://www.business-standard.com/article/finance/cibil-makes-credit-scores-available-to-individuals-111042100067_1.html and Ramesh Singh for detailed information about the system of credit rating. Nations are rated as sovereigns and company ratings are also prepared by agencies such as Moody‘s etc.



81. Solution: a)


http://seethesouthwest.com/903/the-difference-between-a-butte-mesa-and-

plateau/

82. Solution: d) Refer to the concerned section in Ramesh Singh. Some of the popular indices published in India are SENSEX, NIFTY etc.

83. Solution: d) Sensex, National Index and Indo Next are published by BSE and Indo Next exchange. Crisil Inclusex while launched by P. Chidambaram is published by CRISIL, a S&P global company. Here are some more details on CRISIL Inclusex. It is an indicator of financial inclusion in the country. http://www.dnaindia.com/money/report-p-chidambaram-launches-crisil-inclusix-1852970

84. Solution: a)

It was initially a non-statutory body setup by a government order. It was afterwards given powers under the SEBI Act, 1992. It is the principal agency in India which regulates the security market and promotes investor education.

85. Solution: a)

A foreign investment would be termed as FII if it is less than 10% in a company‘s shares. More than that is FDI. FII covers only large institutions and not retail or individual investors.

86. Solution: b)



Towards the end of the nineteenth century, German synthetic dyes forced indigo out of the market and the European planters of Champaran, keen to release the cultivators from the obligation of cultivating indigo, tried to turn their necessity to their advantage by securing enhancements in rent and other illegal dues as a price for the release. Resistance had surfaced in 1908 as well, but the exactions of the planters continued till Raj Kumar Shukla, a local man, decided to follow Gandhiji all over the country to persuade him to come to Champaran to investigate the problem. Raj Kumar Shukla‘s decision to get Gandhiji to Champaran is indicative of the image he had acquired as one who fought for the rights of the exploited and the poor

87. Solution: c)


88. Solution: b) This sector is still tightly regulated by IRDA and SEBI. In a recent move the government increased the FDI cap in this sector from 26% to 49%.

89. Solution: a) Refer to the oath of both the President and the MPs in Laxmikanth Polity.

90. Solution: d) Refer to http://www.policyholder.gov.in/Economically_Vulnerable.aspx

91. Solution: a)

Bharatendu Harishchandra Awards are given by the Ministry of Information and

Broadcasting since the year 1983 to promote original writings in Hindi on Journalism

and Mass Communications and other subjects.

92. Solution: d)


93. Solution: d)

http://www.policyholder.gov.in/Economically_Vulnerable.aspx



The total values of the votes of all the MLAs is equal to that of all the elected MPs only which excludes the nominated ones. All doubts and disputes regarding the election of the President is enquired into by the Supreme Court of India considering the high prestige of the office of President of India.

94. Solution: d) Refer to the concerned section in Laxmikanth – Indian Polity.

95. Solution: c) Parliamentary approval is required in case of Public Account of India post-withdrawal. And every single penny withdrawn from the CFI needs Parliamentary approval.

96. Solution: d)

National Missions

National Solar Mission: The NAPCC aims to promote the development and use of

solar energy for power generation and other uses with the ultimate objective of

making solar competitive with fossil-based energy options. The plan includes:

Specific goals for increasing use of solar thermal technologies in urban areas,

industry, and commercial establishments;

A goal of increasing production of photovoltaics to 1000 MW/year; and

A goal of deploying at least 1000 MW of solar thermal power generation.

Other objectives include the establishment of a solar research center,

increased international collaboration on technology development,

strengthening of domestic manufacturing capacity, and increased government

funding and international support.

National Mission for Enhanced Energy Efficiency: Current initiatives are expected to

yield savings of 10,000 MW by 2012. Building on the Energy Conservation Act 2001,

the plan recommends:

Mandating specific energy consumption decreases in large energy-consuming

industries, with a system for companies to trade energy-savings certificates;



Energy incentives, including reduced taxes on energy-efficient appliances;

and

Financing for public-private partnerships to reduce energy consumption

through demand-side management programs in the municipal, buildings and

agricultural sectors.

National Mission on Sustainable Habitat: To promote energy efficiency as a core

component of urban planning, the plan calls for:

Extending the existing Energy Conservation Building Code;

A greater emphasis on urban waste management and recycling, including

power production from waste;

Strengthening the enforcement of automotive fuel economy standards and

using pricing measures to encourage the purchase of efficient vehicles; and

Incentives for the use of public transportation.

National Water Mission: With water scarcity projected to worsen as a result of

climate change, the plan sets a goal of a 20% improvement in water use efficiency

through pricing and other measures.

National Mission for Sustaining the Himalayan Ecosystem: The plan aims to

conserve biodiversity, forest cover, and other ecological values in the Himalayan

region, where glaciers that are a major source of India‘s water supply are projected

to recede as a result of global warming.

National Mission for a ―Green India‖: Goals include the afforestation of 6 million

hectares of degraded forest lands and expanding forest cover from 23% to 33% of

India‘s territory.

National Mission for Sustainable Agriculture: The plan aims to support climate

adaptation in agriculture through the development of climate-resilient crops,

expansion of weather insurance mechanisms, and agricultural practices.

National Mission on Strategic Knowledge for Climate Change: To gain a better

understanding of climate science, impacts and challenges, the plan envisions a new

Climate Science Research Fund, improved climate modeling, and increased

international collaboration. It also encourage private sector initiatives to develop

adaptation and mitigation technologies through venture capital funds.



97. Solution: c)

Gandhiji returned to India, in January 1915, and was warmly welcomed. His work in South Africa was well-known, not only to educated Indians, but, as he discovered on his visit to the Kumbh Mela at Hardwar, even to the masses who flocked to him for his ‗darshan.‘ Gokhale had already hailed him as being ‗without doubt made of the stuff of which heroes and martyrs are made.‘ The veteran Indian leader noticed in Gandhiji an even more important quality: ‗He has in him the marvelous spiritual power to turn ordinary men around him into heroes and martyrs.‘ On Gokhale‘s advice, and in keeping with his own style of never intervening in a situation without first studying it withgreat care, Gandhiji decided that for the first year he would not take a public stand on any political issue. He spent the year travelling around the country, seeing things for himself, and in organizing his ashram in Ahmedabad where he, and his devoted band of followers who had come with him from South Africa, would lead a community life. The next year as well, he continued to maintain his distance from political affairs, including the Home Rule Movement that was gathering momentum at this time. His own political understanding did not coincide with any of the political currents that were active in India then. His faith in ‗Moderate‘ methods was long eroded, nor did he agree with the Home Rulers that the best time to agitate for Home Rule was when the British were in difficulty because of the First World War.

98. Solution: c)


bergschrund, (German: ―mountain crevice‖), a crevasse or series of crevasses often

found near the head of a mountain glacier. The erosion of the rock beneath a

bergschrund contributes to the formation of a cirque, or natural amphitheatre.



99. Solution: c)

In the USA, while the President does have power over legislations passed by the congress and the senate, he is not a part of the Parliament. In India and UK, the President and the monarch respectively are a part of the Parliament.

100. Solution: a)

http://www.barc.gov.in/pubaware/nw_n5.html

insights solutions mock test 12

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