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Question 2141Question →

In the context of Indian Public Finance and Union Budgeting framework, which of the following statements regarding government receipts, expenditure classifications, and deficit metrics are correct?

Select all that apply

Show answer & explanation

Answer: Disinvestment proceeds derived from the sale of government equity in Public Sector Undertakings (PSUs) are accounted as non-debt capital receipts.; Primary deficit is calculated by deducting interest payments on past borrowings from the fiscal deficit of the financial year.

Answer

Disinvestment proceeds are non-debt capital receipts, and primary deficit equals fiscal deficit minus interest payments.
Disinvestment proceeds lower public asset holdings without creating debt, categorizing them as non-debt capital receipts. Furthermore, primary deficit reflects current government fiscal balance excluding interest payments on past debt obligations. Both statements accurately reflect Indian public finance accounting principles.

Step-by-Step Solution

1
Analyze government receipt classifications
Disinvestment proceeds reduce government equity (an asset) without creating liability, placing them in non-debt capital receipts. Conversely, market borrowings create debt liabilities, placing them under capital receipts rather than revenue receipts.
Capital receipts either create a liability or yield a reduction in financial/physical assets.
2
Evaluate deficit metric formulas
Primary Deficit measures net borrowing requirement for current fiscal operations, formulated as Primary Deficit=Fiscal Deficit−Interest Payments\text{Primary Deficit} = \text{Fiscal Deficit} - \text{Interest Payments}.
Deducting interest liabilities isolates the present fiscal year's policy impact from past accumulated debt burdens.
3
Examine accounting rules for grants-in-aid to States
Even when intended for asset creation, grants disbursed to lower tiers of government do not result in Union-owned assets, requiring accounting under Revenue Expenditure (forming part of Effective Revenue Deficit).
Union expenditure accounting strictly requires asset ownership to register under Union Capital Expenditure.

Key Concept

Classification of Capital vs Revenue Receipts/Expenditures and Deficit Accounting in Indian Public Finance
Question 2142Question →

Consider the following statements regarding the pedological characteristics and agricultural potential of Arid (Desert) Soils in India:

1. They are generally sandy in texture, saline in nature, and severely deficient in nitrogen and organic content.
2. The lower horizons of these soils accumulate 'Kankar' layers due to increasing calcium content downwards, which restricts downward infiltration of water.
3. Due to extreme salinity and lack of organic matter, these soils are completely infertile and cannot support crop cultivation even with artificial irrigation.

Which of the statements given above is/are correct?

Show answer & explanation

Answer: 1 and 2 only

Answer

1 and 2 only
The statement combination indicating 1 and 2 only is correct. Arid soils in India (predominantly found in western Rajasthan, parts of Gujarat and southern Punjab) feature a sandy texture, low nitrogen/humus content, and high salinity. Their lower horizons are characterized by calcic nodule ('Kankar') accumulation which restricts infiltration. However, they are not completely infertile; with irrigation, crops like barley, rape, cotton, and millets thrive in these soils.

Step-by-Step Solution

1
Analyze statement 1 regarding physical and chemical properties of Arid soils
Arid soils range from red to brown in color, are sandy to gravelly in texture, soluble-salt rich (saline), and deficient in nitrogen and humus.
Evaporation exceeds precipitation in arid climates, leading to low organic content and high salt accumulation.
2
Analyze statement 2 regarding horizon development and Kankar layers
Calcium content increases downwards in Arid soil profiles, leading to the formation of hard calcareous nodules (Kankar) in the sub-surface layers.
The Kankar layer impedes water infiltration, allowing retained moisture to be available when water is supplied artificially.
3
Evaluate statement 3 regarding fertility under irrigation
Arid soils contain adequate phosphate content and are responsive to irrigation. Areas under the Indira Gandhi Canal command in western Rajasthan successfully grow drought-resistant and staple crops.
Lack of water, not complete mineral sterility, is the limiting factor for crop growth in desert soils.

Key Concept

Pedological properties, horizon structure, and agricultural potential of Arid Soils in India
Question 2143Question →

Match the flagship Indian social security schemes listed in List-I with their corresponding beneficiary eligibility criteria and primary benefit structures in List-II:

Click a left item, then click its matching right item

Items

Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM)
Pradhan Mantri Kisan Maan-dhan Yojana (PM-KMY)
Atal Pension Yojana (APY)
Pradhan Mantri Matru Vandana Yojana (PMMVY)

Matches

Show answer & explanation

Answer

Pradhan Mantri Shram Yogi Maan-dhan matches with unorganized workers earning ≤ ₹15,000/month (18–40 age group) receiving ₹3,000/month pension; Pradhan Mantri Kisan Maan-dhan Yojana matches with small and marginal farmers with ≤ 2 hectares land receiving ₹3,000/month pension; Atal Pension Yojana matches with unorganized citizens (18–40 age group) receiving chosen fixed pension slabs of ₹1,000–₹5,000/month; Pradhan Mantri Matru Vandana Yojana matches with conditional maternity cash benefits for pregnant women and lactating mothers.
Each scheme is mapped correctly to its specific statutory criteria and target population. Pradhan Mantri Shram Yogi Maan-dhan focuses on unorganized workers with a wage ceiling of ₹15,000/month. Pradhan Mantri Kisan Maan-dhan Yojana restricts participation to small and marginal farmers owning up to 2 hectares of land. Atal Pension Yojana provides flexible pension options (₹1,000 to ₹5,000/month) for unorganized citizens, while Pradhan Mantri Matru Vandana Yojana focuses on maternity financial compensation.

Step-by-Step Solution

1
Analyze PM-SYM eligibility parameters
Identify that PM-SYM is meant for unorganized workers with monthly income not exceeding ₹15,000 and entry age of 18–40 years, matching the corresponding profile in List-II.
PM-SYM focuses on low-income unorganized workers across informal sectors.
2
Analyze PM-KMY landholding constraint
Identify that PM-KMY incorporates an explicit land-size restriction (small and marginal farmers holding cultivable land up to 2 hectares).
PM-KMY aligns pension security directly with land ownership metrics established under PM-KISAN.
3
Differentiate APY pension structure from PM-SYM and PM-KMY
Recognize that APY offers variable pension slabs (₹1,000 to ₹5,000 per month) chosen by the subscriber, whereas PM-SYM and PM-KMY provide a fixed ₹3,000 monthly pension.
APY allows pension choice depending on the contribution amount selected during joining.
4
Identify PMMVY scheme domain
Associate PMMVY with maternity cash incentives rather than old-age voluntary pension mechanisms.
PMMVY under the Ministry of Women and Child Development operates as a welfare cash transfer for maternal health rather than a post-60 pension architecture.

Key Concept

Eligibility thresholds, target demographic definitions, and financial benefit structures of Indian social security architecture.
Estimated Time:2m 0s
Question 2144Question →

Consider the following statements regarding metrics used to evaluate poverty and economic inequality:

1. Relative poverty is primarily measured using distribution tools such as the Lorenz Curve and the Gini Coefficient.
2. The Head Count Ratio (HCR) indicates the intensity and depth of poverty by calculating the average shortfall of poor households from the poverty line.
3. The Poverty Gap Index reflects how far below the poverty line poor households fall on average relative to the poverty line.

Which of the statements given above is/are correct?

Show answer & explanation

Answer: 1 and 3 only

Answer

Statements 1 and 3 are correct, while Statement 2 is incorrect.
The option selecting statements 1 and 3 only is correct because relative poverty is captured by inequality indicators like the Lorenz Curve and Gini Coefficient, while the Poverty Gap Index calculates the average shortfall of the poor from the poverty line. Statement 2 is false because the Head Count Ratio measures only the incidence (proportion) of poor individuals, not the depth or intensity of poverty.

Step-by-Step Solution

1
Analyze Statement 1 regarding relative poverty metrics.
Statement 1 is correct.
Relative poverty refers to inequality in income or consumption distribution across population quantiles, evaluated via the Lorenz Curve and the Gini Coefficient.
2
Analyze Statement 2 regarding the definition and scope of the Head Count Ratio (HCR).
Statement 2 is incorrect.
The Head Count Ratio measures absolute poverty incidence (HCR=NpNHCR = \frac{N_p}{N} where NpN_p is the number of poor individuals and NN is total population). It measures how many people are poor, but does not capture the depth, intensity, or inequality of poverty among the poor.
3
Analyze Statement 3 regarding the Poverty Gap Index.
Statement 3 is correct.
The Poverty Gap Index (PGIPGI) measures the average distance (poverty gap) by which poor individuals fall below the poverty line as a proportion of that line.

Key Concept

Distinction between Poverty Incidence (Head Count Ratio), Poverty Depth (Poverty Gap Index), and Relative Inequality Metrics (Gini Coefficient & Lorenz Curve).
Estimated Time:1m 15s
Question 2145Question →

Consider the following statements regarding the methodology recommended by the Expert Group under Dr. C. Rangarajan (2014) for poverty estimation in India:

1. It recommended adopting the Modified Mixed Reference Period (MMRP) consumption expenditure data for poverty line calculation.
2. It derived separate poverty line baskets for rural and urban areas based on independent normative levels of nutrition (calories, protein, and fat) alongside essential non-food components.
3. Its methodology resulted in a significantly lower overall estimate of the number of poor in India for 2011–12 compared to the Suresh Tendulkar Committee's estimates for the same reference year.

Which of the statements given above are correct?

Show answer & explanation

Answer: 1 and 2 only

Answer

1 and 2 only
The option stating '1 and 2 only' is correct because the Rangarajan Expert Group (2014) specifically introduced the Modified Mixed Reference Period (MMRP) to improve consumer expenditure capture and defined separate normative nutritional and non-food requirements for rural and urban sectors independently. Statement 3 is incorrect because the Rangarajan methodology resulted in a higher poverty count (363 million / 29.5%) than the Suresh Tendulkar methodology (269.8 million / 21.9%) for 2011–12.

Step-by-Step Solution

1
Analyze Statement 1 regarding reference period choice
Statement 1 is correct. The Rangarajan Committee (2014) recommended using the Modified Mixed Reference Period (MMRP), which captures recall for fast-moving items like food over 7 days, 30 days for frequent items, and 365 days for low-frequency items.
MMRP accounts for recalled consumption more accurately than standard 30-day Uniform Reference Period (URP) or older Mixed Reference Period (MRP).
2
Analyze Statement 2 regarding rural and urban poverty line basket derivation
Statement 2 is correct. Unlike the Tendulkar Committee, which anchored the urban basket and applied it to rural areas via price indices, Rangarajan set independent normative standards for rural (2155 kcal, 48g protein, 28g fat) and urban (2090 kcal, 50g protein, 26g fat) populations plus non-food essentials.
This restored separate normative nutritional targets for rural and urban sectors.
3
Analyze Statement 3 regarding poverty headcount estimates comparison
Statement 3 is incorrect. Rangarajan's methodology estimated higher poverty levels for 2011–12 (29.5% of population or 363 million poor) compared to Tendulkar's estimate of 21.9% (269.8 million poor).
Higher daily per capita expenditure cut-offs (₹32 rural / ₹47 urban for Rangarajan vs ₹27 rural / ₹33 urban for Tendulkar) increased the estimated poor population.

Key Concept

Rangarajan Committee Poverty Estimation Methodology
Question 2146Question →

Regarding the Union Executive of India, which of the following statements correctly describes the constitutional procedure for the removal of the Vice-President from office?

Show answer & explanation

Answer: A resolution for removal can be initiated only in the Rajya Sabha and must be passed by an effective majority of the Rajya Sabha and agreed to by a simple majority of the Lok Sabha.

Answer

A resolution for removal can be initiated only in the Rajya Sabha and must be passed by an effective majority of the Rajya Sabha and agreed to by a simple majority of the Lok Sabha.
According to Article 67(b) of the Constitution of India, the Vice-President may be removed from office by a resolution of the Council of States (Rajya Sabha) passed by a majority of all the then members of the Council (effective majority) and agreed to by the House of the People (Lok Sabha) by a simple majority. A 14 days' notice is required before moving such a resolution.

Step-by-Step Solution

1
Identify the relevant Constitutional article governing the removal of the Vice-President of India.
Article 67(b) of the Constitution of India specifies the term and procedure for the removal of the Vice-President.
The Vice-President acts as the ex-officio Chairman of the Council of States (Rajya Sabha), so special procedural rules apply.
2
Examine the House of initiation and the required majority.
The resolution can ONLY originate in the Rajya Sabha. It requires a 14 days' advance notice, an effective majority (majority of all the then members) in the Rajya Sabha, and simple agreement by the Lok Sabha.
Unlike the President, whose impeachment can originate in either House under Article 61, the Vice-President's removal is tied primarily to the Rajya Sabha.
3
Evaluate constitutional grounds for removal.
No specific grounds for removal of the Vice-President are mentioned in the Constitution.
Grounds such as 'violation of the Constitution' apply exclusively to the President of India.

Key Concept

Removal Procedure of the Vice-President of India under Article 67(b)
Question 2147Question →

With reference to the Nagara style of temple architecture in ancient and medieval Northern India, consider the following statements:

1. The entire temple structure is traditionally built on a raised stone platform known as a Jagati.
2. Unlike South Indian Dravida temples, Nagara temples generally do not feature elaborate enclosure walls or prominent gateway towers (Gopurams).
3. The ribbed stone disc placed at the apex of the tower (Shikhara) is called the Kalasa, while the decorative vessel placed above it is known as the Amalaka.

Which of the statements given above is/are correct?

Show answer & explanation

Answer: 1 and 2 only

Answer

1 and 2 only
Statements 1 and 2 are factual and accurate. Nagara architecture features a raised stone plinth called the Jagati and typically does not enclose the temple compound with elaborate boundary walls or Gopurams. Statement 3 is false because the ribbed stone disc atop the Shikhara is the Amalaka, while the decorative vessel resting above the Amalaka is the Kalasa.

Step-by-Step Solution

1
Evaluate Statement 1 regarding temple foundation layout
Nagara style temples are built on high plinths or platforms referred to as Jagati, accessible by steps.
This is a fundamental feature of Nagara temple architecture.
2
Evaluate Statement 2 regarding boundaries and gateways
Nagara temples usually lack massive perimeter walls and grand entry towers (Gopurams), which are quintessential features of Dravida architecture.
Boundary walls and Gopurams are characteristic of South Indian temple complexes.
3
Evaluate Statement 3 regarding summit superstructure terms
The ribbed, circular stone disc sitting at the top of the Shikhara is the Amalaka. The pitcher or vase-shaped structure positioned atop the Amalaka is the Kalasa.
Statement 3 swaps the definitions of Amalaka and Kalasa.

Key Concept

Key features of Nagara Temple Architecture (Jagati, lack of Gopurams, Amalaka, Kalasa)
Question 2148Question →

Consider the following statements regarding the powers and procedural position of the Presiding Officers of the Houses of Parliament in India:

1. The Speaker of the Lok Sabha derives authority from three sources: the Constitution of India, the Rules of Procedure and Conduct of Business of Lok Sabha, and Parliamentary Conventions.
2. The determination of whether a bill is a Money Bill made by the Speaker of the Lok Sabha can be overridden by a resolution passed by a two-thirds majority in the Rajya Sabha.
3. The Chairman of the Rajya Sabha cannot preside over a joint sitting of both Houses of Parliament under any circumstances, even if both the Speaker and the Deputy Speaker of the Lok Sabha are absent.

Which of the statements given above are correct?

Show answer & explanation

Answer: 1 and 3 only

Answer

1 and 3 only
The correct option identifies that statements 1 and 3 are correct. The Speaker of Lok Sabha derives powers from the Constitution, House rules, and conventions. In addition, the Chairman of Rajya Sabha (being the Vice-President of India and not an MP) can never preside over a joint sitting; if the Speaker and Deputy Speaker of Lok Sabha are absent, the Deputy Chairman of Rajya Sabha presides. Statement 2 is incorrect because the Speaker's endorsement of a Money Bill under Article 110(3) is final and cannot be overridden by Rajya Sabha.

Step-by-Step Solution

1
Analyze Statement 1 regarding the sources of authority for the Speaker of Lok Sabha.
Statement 1 is correct. The Speaker derives constitutional and procedural authority from the Constitution of India, the Rules of Procedure and Conduct of Business of Lok Sabha, and established Parliamentary Conventions.
Understanding the constitutional framework governing presiding officers in the Indian legislative system.
2
Analyze Statement 2 regarding the finality of the Speaker's endorsement of a Money Bill under Article 110(3).
Statement 2 is incorrect. Under Article 110(3) of the Constitution, if any question arises whether a Bill is a Money Bill or not, the decision of the Speaker of the Lok Sabha is final. The Rajya Sabha has no constitutional power to reject, amend, or override this certification.
Evaluating financial powers and Rajya Sabha limitations under Article 109 and Article 110.
3
Analyze Statement 3 regarding joint sitting presiding protocol under Article 118(4).
Statement 3 is correct. Under Article 118(4) and the Joint Sitting Rules, a joint sitting is presided over by the Speaker of Lok Sabha, or in their absence, the Deputy Speaker of Lok Sabha, or in their absence, the Deputy Chairman of Rajya Sabha. The Chairman of Rajya Sabha (Vice-President of India) is not a member of either House of Parliament and is constitutionally barred from presiding over a joint sitting.
Applying the statutory order of precedence for presiding over joint sittings of Parliament.

Key Concept

Powers and position of Presiding Officers of Parliament (Speaker of Lok Sabha & Chairman of Rajya Sabha)
Question 2149Question →

Arrange the following landmark Industrial Policy declarations of India in chronological order of their announcement, from the earliest to the latest:

Drag items to arrange them in the correct order

Show answer & explanation

Answer

The correct chronological order from earliest to latest is: Industrial Policy Resolution of 1948, followed by the Industrial Policy Resolution of 1956, then the Statement on Industrial Policy of 1977, and finally the New Industrial Policy of 1991.
The correct chronological sequence begins with the Industrial Policy Resolution of 1948 (India's first industrial framework), followed by the Industrial Policy Resolution of 1956 (which laid the groundwork for state-led heavy industrialization), followed by the Statement on Industrial Policy of 1977 (focused on small-scale and cottage sectors), and concludes with the New Industrial Policy of 1991 (which introduced structural reforms including foreign investment deregulation and delicensing).

Step-by-Step Solution

1
Identify the year of the Industrial Policy Resolution of 1948.
The policy was declared in 1948 as India's first post-independence economic blueprint.
Establishing the initial baseline year (1948).
2
Identify the year of the Industrial Policy Resolution of 1956.
The policy was adopted in 1956 to expand the role of public sector enterprises.
Establishing the second event year (1956).
3
Identify the year of the Statement on Industrial Policy of 1977.
The policy was presented in 1977 focusing on small-scale and decentralized industries.
Establishing the third event year (1977).
4
Identify the year of the New Industrial Policy of 1991.
The policy was declared in 1991 to dismantle industrial licensing and open the economy to global trade.
Establishing the fourth event year (1991).
5
Sequence the events chronologically.
1948 → 1956 → 1977 → 1991.
Arranging the years in ascending order gives the correct chronological sequence.

Key Concept

Evolution and timeline of India's major Industrial Policy Resolutions post-independence.
Question 2150Question →

Regarding the constitutional provisions and operational safeguards of key constitutional bodies in India, which of the following statements are correct?

Select all that apply

Show answer & explanation

Answer: The Comptroller and Auditor General of India (CAG) is ineligible for any further office under the Government of India or the Government of any State after ceasing to hold office.; The recommendations made by the Finance Commission regarding the distribution of net tax proceeds between the Union and the States are advisory in nature.

Answer

The correct statements are that the Comptroller and Auditor General of India is ineligible for further government office post-retirement, and that the recommendations of the Finance Commission are advisory in nature.
The post-retirement bar on the Comptroller and Auditor General of India (Article 148) and the advisory character of Finance Commission recommendations (Article 280) accurately state Indian constitutional provisions.

Step-by-Step Solution

1
Evaluate the post-retirement eligibility of the CAG under Article 148.
Article 148(4) guarantees independence by prohibiting the CAG from taking up any further government office after demitting office.
Ensures no executive inducement influences the CAG during tenure.
2
Evaluate the constitutional weight of Finance Commission recommendations under Article 280.
The recommendations are constitutionally advisory to the President/Government of India.
There is no constitutional obligation mandating statutory enforcement of tax distribution advice.
3
Verify the removal authority for SPSC members under Article 317.
Although appointed by the Governor, SPSC members can only be removed by the President.
This dual mechanism provides independence from local political executive influence.
4
Examine the reporting chain of CAG state audit reports under Article 151(2).
The CAG submits reports to the Governor, not directly to the Speaker.
The constitutional channel requires executive submission to the head of state prior to legislative tabling.

Key Concept

Independence guarantees and administrative procedures of Constitutional Bodies (CAG, Finance Commission, SPSC)
Question 2151Question →

Which of the following economic transactions is directly recorded under the Capital Account of India's Balance of Payments?

Show answer & explanation

Answer: Acquisition of domestic equity shares by foreign institutional investors

Answer

The acquisition of domestic equity shares by foreign institutional investors is classified under the Capital Account of the Balance of Payments.
The Capital Account records transactions that lead to a change in the stock of foreign financial assets and liabilities of a nation. Purchases of domestic stock market shares by foreign institutional investors represent equity inflows that alter ownership claims, categorizing them under the Capital Account.

Step-by-Step Solution

1
Identify the nature of each transaction in the Balance of Payments framework.
Determine whether the transaction alters foreign financial assets/liabilities (Capital Account) or reflects flows of goods, services, and current income (Current Account).
Balance of Payments accounting strictly separates operational trade/income flows from financial capital transfers.
2
Evaluate foreign equity investments against current account receipts.
Cross-border purchases of equity shares create external liabilities and transfer financial asset ownership, belonging to the Capital Account.
Dividends, service exports, and travel spending are operational income and service flows categorized under the Current Account.

Key Concept

Classification of Balance of Payments components: Current Account versus Capital Account
Question 2152Question →

Regarding the emergence of left-wing currents and working-class movements in colonial India, which of the following statements correctly describes the Kanpur Bolshevik Conspiracy Case of 1924?

Show answer & explanation

Answer: It was a colonial judicial trial launched against early communist figures including S.A. Dange, Muzaffar Ahmed, and Shaukat Usmani on charges of conspiring to overthrow British sovereignty.

Answer

The Kanpur Bolshevik Conspiracy Case of 1924 was a colonial judicial trial launched against early communist figures including S.A. Dange, Muzaffar Ahmed, Nalini Gupta, and Shaukat Usmani for attempting to deprive the King-Emperor of his sovereignty.
The correct answer accurately identifies the Kanpur Bolshevik Conspiracy Case of 1924 as a trial instituted by the British colonial government against early communist leaders like S.A. Dange, Muzaffar Ahmed, Shaukat Usmani, and Nalini Gupta. They were tried under Section 121A of the Indian Penal Code for allegedly conspiring to establish a communist organization to overthrow British rule.

Step-by-Step Solution

1
Identify the historical context of the Kanpur Bolshevik Conspiracy Case (1924).
During the early 1920s, socialist and communist ideas gained traction in India, prompting the colonial administration to track revolutionary left-wing organizers.
The rise of working-class consciousness led the British government to intervene legally.
2
Examine the accused individuals and legal provisions involved in the trial.
Pioneer communists such as M.N. Roy (in absentia), S.A. Dange, Muzaffar Ahmed, Shaukat Usmani, and Nalini Gupta were charged under Section 121A of the IPC.
The colonial state aimed to penalize conspiracy to overthrow British rule in India.
3
Distinguish this trial from contemporary revolutionary nationalism trials.
Unlike the Kakori case (HRA revolutionaries) or the Ghadar movement trials, the Kanpur case explicitly targeted early Marxist/Communist organizers.
Differentiating organizational ideologies prevents misattribution of political trials.

Key Concept

Kanpur Bolshevik Conspiracy Case (1924) and early Communist movement in India
Estimated Time:1m 15s
Question 2153Question →

Consider the following statements regarding the Karewa formations in the physiography of Northern India:

1. Karewas are lacustrine deposits composed of glacial clay, silt, and sand embedded with moraines.
2. These formations are predominantly found along the foot slopes of the Pir Panjal range in the Kashmir Valley.
3. They are economically significant for the specialized cultivation of Zafran (saffron), almond, and walnut.

Which of the statements given above are correct?

Show answer & explanation

Answer: 1, 2 and 3

Answer

Statements 1, 2, and 3 are all correct.
All three statements are factually accurate. Karewas are lacustrine fluvio-glacial deposits of the Pleistocene epoch found extensively on the slopes of the Pir Panjal range in Kashmir, and they are famous for high-value Zafran (saffron) cultivation.

Step-by-Step Solution

1
Analyze the geological origin described in statement 1.
Karewas are flat-topped mounds forming terraces composed of lacustrine (lake deposits) clay, silt, sand, and moraine debris deposited during the Pleistocene period when the Valley of Kashmir was a lake.
Verifies the structural definition of Karewas.
2
Evaluate the geographical spatial distribution in statement 2.
Karewa formations cover a large area of the Kashmir Valley, mainly lying along the flanks of the Pir Panjal Range.
Confirms the regional relief context within the NW Himalayas.
3
Assess the economic and agricultural usage in statement 3.
The highly fertile Karewa soil beds provide ideal conditions for growing Zafran (local variety of saffron), as well as apple, almond, and walnut orchards.
Confirms economic utility.

Key Concept

Karewa Formations of Kashmir Himalayas
Question 2154Question →

Which of the following statements regarding the Indian Association of Calcutta (established in 1876) are correct?

Select all that apply

Show answer & explanation

Answer: It was established by Surendranath Banerjea and Ananda Mohan Bose to unify the Indian public on a common political platform.; It spearheaded a nationwide agitation against Lord Lytton's decision to lower the maximum age limit for the Indian Civil Service examination.

Answer

The correct statements are that the Indian Association was established by Surendranath Banerjea and Ananda Mohan Bose to unify the Indian public on a common political platform, and that it spearheaded a nationwide agitation against lowering the age limit for the Indian Civil Service examination.
The Indian Association of Calcutta, founded in 1876 by Surendranath Banerjea and Ananda Mohan Bose, was a major pre-Congress political organization. It aimed to create a unified public opinion across India and spearheaded the historic Civil Service Agitation when the upper age limit for civil services was reduced from 21 to 19 years.

Step-by-Step Solution

1
Analyze the establishment and leadership of the Indian Association
Confirm that Surendranath Banerjea and Ananda Mohan Bose established the association in Calcutta in 1876.
Verifying the founders and core objective validates the statement regarding its establishment.
2
Evaluate major campaigns conducted by the association
Identify that the association led an all-India protest against reducing the Civil Service entry age from 21 to 19 years.
This confirms its central role in organizing early nationalist civil service agitations.
3
Assess statements regarding colonial acts and organizational mergers
Recognize that the association actively opposed the Vernacular Press Act of 1878 and merged with the Indian National Congress in 1886.
This disproves statements asserting support for the Vernacular Press Act and merger with the East India Association.

Key Concept

Pre-Congress political associations and early nationalist agitations of the Indian Association (1876).
Question 2155Question →

Consider the following statements regarding the borrowing powers of State Governments and the regulation of public debt under the Indian Constitutional framework and fiscal policy rules:

1. A State Government possesses the constitutional executive power to raise external loans directly from international financial institutions, provided the borrowing is authorized by a resolution of the State Legislature.
2. Under Article 293(3) of the Constitution of India, a State cannot raise any market loan without the consent of the Union Government if there is still outstanding any part of a loan extended to the State by the Union or guaranteed by the Union.
3. Under the updated Fiscal Responsibility and Budget Management (FRBM) framework, off-budget borrowings undertaken by State-owned entities, where principal and interest debt servicing is funded from the State budget, are included within the State's Net Borrowing Ceiling.

Which of the statements given above are correct?

Show answer & explanation

Answer: 2 and 3 only

Answer

Statements 2 and 3 only are correct.
The correct response identifies that Statements 2 and 3 are true while Statement 1 is false. Under Article 293(1), a State Government's executive power to borrow is restricted strictly to within the territory of India upon the security of the Consolidated Fund of the State. Foreign borrowings fall under Entry 37 of the Union List. Statement 2 correctly expresses Article 293(3), which mandates Union consent for any new loan if a State has outstanding Union loans or guarantees. Statement 3 accurately captures recent fiscal governance norms where off-budget borrowings of State SPVs serviced via budget allocations are brought under the Net Borrowing Ceiling.

Step-by-Step Solution

1
Analyze Statement 1 regarding constitutional borrowing powers of State Governments.
Statement 1 is incorrect.
Under Article 293(1) of the Constitution of India, the executive power of a State extends only to borrowing within the territory of India. Foreign loans and foreign exchange borrowings fall strictly under Union List (Entry 37 of List I) and cannot be undertaken directly by States.
2
Analyze Statement 2 regarding Union consent under Article 293(3).
Statement 2 is correct.
Article 293(3) explicitly mandates that a State may not, without the consent of the Government of India, raise any loan if there is still outstanding any part of a loan made to the State by the Government of India or in respect of which a guarantee has been given by the Union.
3
Analyze Statement 3 regarding off-budget borrowings (OBBs) under the FRBM framework.
Statement 3 is correct.
To ensure fiscal transparency and prevent evasion of fiscal deficit targets, the Ministry of Finance updated FRBM guidelines to count Off-Budget Borrowings (OBBs)—borrowings by State PSUs/SPVs serviced from the State budget—as part of the State's Net Borrowing Ceiling (NBC).

Key Concept

Constitutional provisions governing public debt (Article 293) and Net Borrowing Ceiling under FRBM framework.
Estimated Time:2m 0s
Question 2156Question →

Consider the following statements regarding the accounting classification of transactions in India's Balance of Payments (BoP):

1. Interest payments servicing foreign commercial borrowings are recorded under the Capital Account.
2. Foreign Portfolio Investment (FPI) inflows into domestic equity markets are recorded under the Capital Account.
3. Remittances of profits by foreign enterprises operating in India are recorded under the Current Account.

Which of the statements given above are correct?

Show answer & explanation

Answer: 2 and 3 only

Answer

Statements 2 and 3 are correct. Foreign Portfolio Investment (FPI) is a capital account transaction, while profit remittances and interest servicing on loans are factor income transactions classified under the current account (invisibles).
The statement regarding Foreign Portfolio Investment is correct because portfolio flows involve ownership changes of financial assets, placing them in the Capital Account. The statement regarding profit remittances is also correct because earnings from foreign assets represent factor income (invisibles), which forms part of the Current Account. The statement regarding interest servicing is incorrect because interest paid on foreign loans is categorized under primary investment income in the Current Account, whereas only the loan principal itself belongs to the Capital Account.

Step-by-Step Solution

1
Analyze Statement 1 regarding interest payments on loans.
Statement 1 is incorrect.
Although borrowing principal amounts (External Commercial Borrowings) fall under the Capital Account, the servicing of debt (interest payments) represents investment income paid abroad, which is recorded under the Invisibles section of the Current Account.
2
Analyze Statement 2 regarding Foreign Portfolio Investment (FPI).
Statement 2 is correct.
Capital flows like FDI and FPI involve cross-border movement of financial assets and debt/equity instruments, which directly alter the country's external asset/liability profile and belong in the Capital Account.
3
Analyze Statement 3 regarding remittances of profits.
Statement 3 is correct.
Profit remittances by foreign firms constitute primary income transfers (investment income outgo) and are classified under the Current Account.

Key Concept

Classification of Balance of Payments (BoP) Transactions between Current Account and Capital Account
Estimated Time:1m 15s
Question 2157Question →

Which of the following statements regarding economic inequality metrics and poverty measurement concepts are correct?

Select all that apply

Show answer & explanation

Answer: The Gini coefficient value of zero indicates perfect income equality, whereas a value of one indicates maximum income inequality.; The Poverty Gap Index captures the depth of poverty by measuring the average distance of poor individuals below the poverty line expressed as a proportion of that line.

Answer

The correct statements are that the Gini coefficient ranges from zero (perfect equality) to one (perfect inequality) and that the Poverty Gap Index measures the average distance of poor individuals below the poverty line expressed as a proportion of that threshold.
The Gini coefficient accurately quantifies income inequality on a scale from 0 (perfect equality) to 1 (perfect inequality). Furthermore, the Poverty Gap Index correctly measures the depth of poverty by taking the average shortfall of poor households relative to the poverty line.

Step-by-Step Solution

1
Evaluate the definition and mathematical bounds of the Gini coefficient.
The statement regarding the Gini coefficient ranging from 0 (perfect equality) to 1 (perfect inequality) is correct.
It measures the statistical dispersion of income distribution derived from the area between the Lorenz curve and the line of perfect equality.
2
Analyze the formula and economic meaning of the Poverty Gap Index.
The statement defining the Poverty Gap Index as the average shortfall from the poverty line is correct.
It quantifies the depth of poverty by assessing how much income or consumption would be required to bring all poor households up to the poverty line.
3
Distinguish between absolute poverty and relative poverty concepts.
The statement claiming that meeting basic minimum consumption eliminates relative poverty is incorrect.
Meeting basic minimum needs eliminates absolute poverty; relative poverty measures relative income disparities across social strata.
4
Examine the geometric properties of the Lorenz curve.
The statement claiming the Lorenz curve lies above the 45-degree line is incorrect.
The cumulative bottom percentages of population cannot receive more than their proportional share of total income, so the curve sags below the equality line.

Key Concept

Poverty Gap Index, Gini Coefficient, Absolute vs Relative Poverty, and Lorenz Curve Properties
Question 2158Question →

With reference to the National Social Assistance Programme (NSAP) for social security in India, consider the following statements:

1. NSAP is administered as a Centrally Sponsored Scheme by the Ministry of Rural Development.
2. Under the Indira Gandhi National Disability Pension Scheme (IGNDPS), individuals aged 18 to 79 years belonging to Below Poverty Line (BPL) households with a certified benchmark disability of 40%40\% or more are eligible for central pension assistance.
3. Under the National Family Benefit Scheme (NFBS), a one-time lump-sum assistance of ₹20,000₹20,000 is provided to a BPL household upon the natural or accidental death of a primary breadwinner aged between 18 and 59 years.

Which of the statements given above are correct?

Show answer & explanation

Answer: 1 and 3 only

Answer

1 and 3 only
The correct answer identifies that the National Social Assistance Programme is indeed a Centrally Sponsored Scheme under the Ministry of Rural Development, and that the National Family Benefit Scheme provides ₹20,000₹20,000 to BPL families losing a primary breadwinner aged 18–59 years. The second statement is false because the Indira Gandhi National Disability Pension Scheme requires a minimum disability level of 80%80\%, rather than 40%40\%.

Step-by-Step Solution

1
Evaluate Statement 1 regarding the administrative nature and nodal ministry of NSAP.
Statement 1 is correct. NSAP was launched in 1995 and is implemented as a Centrally Sponsored Scheme by the Ministry of Rural Development.
NSAP fulfills Article 41 of the Directive Principles of State Policy by providing social assistance to destitute citizens.
2
Evaluate Statement 2 regarding the eligibility criteria for IGNDPS.
Statement 2 is incorrect. Under IGNDPS guidelines, central assistance is extended to BPL persons aged 18–79 years who suffer from severe or multiple disabilities with a minimum disability level of 80%80\%, not 40%40\%.
While the Rights of Persons with Disabilities Act, 2016 defines benchmark disability at 40%40\%, the social pension under IGNDPS specifically targets severe disability of 80%80\% and above.
3
Evaluate Statement 3 regarding the provisions of NFBS.
Statement 3 is correct. NFBS provides a one-time lump-sum central assistance of ₹20,000₹20,000 to a BPL household on the death of the primary breadwinner (defined as the member whose earnings contribute the largest proportion to household income), provided the deceased was between 18 and 59 years of age.
The age window (18–59 years) and quantum of assistance (₹20,000₹20,000) match the operational guidelines of the scheme.

Key Concept

National Social Assistance Programme (NSAP) Sub-Schemes and Specific Eligibility Criteria
Question 2159Question →

Consider the following statements regarding Montane Forests in India:

1. In the southern hill ranges of the Nilgiris, Anaimalai, and Palani, the temperate forests are locally referred to as 'Sholas'.
2. Deodar, a highly valuable endemic timber species, is predominantly distributed in the moist temperate forests of the Eastern Himalayas.
3. At higher altitudes exceeding 3,500 m3,500\text{ m}, alpine meadows transition into tundra-type vegetation consisting of mosses and lichens near the snowline.

Which of the statements given above are correct?

Show answer & explanation

Answer: 1 and 3 only

Answer

1 and 3 only
The combination stating that only statements 1 and 3 are correct is accurate. Temperate patch forests in the South Indian hills are termed Sholas, and alpine pastures transition into tundra-like mosses and lichens at altitudes above 3,500 m3,500\text{ m} near the snowline. Statement 2 is incorrect because Deodar is predominantly located in the Western Himalayas.

Step-by-Step Solution

1
Evaluate Statement 1 regarding Peninsular temperate forests
Statement 1 is correct. Temperate forests found in the higher hill ranges of South India (Nilgiris, Anaimalai, Palani hills) above 1,500 m1,500\text{ m} elevation are known as 'Sholas'.
Topography and elevation in these peninsular ranges create temperate climate pockets distinct from surrounding tropical vegetation.
2
Evaluate Statement 2 regarding Deodar forest distribution
Statement 2 is incorrect. Deodar (*Cedrus deodara*) is an endemic, durable timber tree characteristic of the Western Himalayas (ranging from Jammu & Kashmir, Himachal Pradesh to Uttarakhand) at altitudes of 1,500 m1,500\text{ m} to 2,500 m2,500\text{ m}. Eastern Himalayas have higher rainfall and are dominated by broadleaf evergreen trees like oaks, laurels, and rhododendrons.
Western Himalayas experience lower rainfall and cooler, drier conditions favorable for Deodar coniferous growth compared to the wetter Eastern Himalayas.
3
Evaluate Statement 3 regarding high-altitude alpine zonation
Statement 3 is correct. As elevation increases past 3,500 m3,500\text{ m} to 4,000 m4,000\text{ m}, alpine forests give way to alpine pastures, which further degrade into mosses and lichens near the permanent snowline.
Extreme cold temperatures and reduced soil depth near the snowline restrict plant growth to low-lying tundra vegetation like lichens and mosses.

Key Concept

Altitudinal Zonation and Regional Distribution of Montane Forests in India
Estimated Time:1m 0s
Question 2160Question →

Consider the following statements regarding the concept of 'Effective Revenue Deficit' in Indian Public Finance:

1. It is defined as the quantitative difference between Revenue Deficit and Grants given for Creation of Capital Assets.
2. Grants-in-aid provided by the Union Government to State Governments for the creation of capital assets are recorded under Capital Expenditure in the Union Budget.

Which of the statements given above is/are correct?

Show answer & explanation

Answer: 1 only

Answer

The statement stating '1 only' is correct.
The correct response recognizes that statement 1 alone is accurate. Effective Revenue Deficit measures the actual consumption deficit of the central government by subtracting grants meant for capital asset creation from the total revenue deficit. Statement 2 is false because all grants to states are classified under Revenue Expenditure in the Union Budget, even when intended for capital asset formation.

Step-by-Step Solution

1
Evaluate Statement 1 regarding the formal definition of Effective Revenue Deficit.
Statement 1 is correct. Effective Revenue Deficit = Revenue Deficit - Grants for Creation of Capital Assets.
This metric isolates consumption-oriented revenue expenditure by excluding central grants that lead to physical asset creation at the state level.
2
Evaluate Statement 2 regarding the Union budgetary accounting classification of intergovernmental grants.
Statement 2 is incorrect. Under Indian public accounting standards, all grants-in-aid transferred from the Centre to States or UTs are accounted for as Revenue Expenditure of the Union Government.
Because the resulting capital assets belong to the State Government and not the Union Government, the Central Government cannot classify these grant transfers under its own Capital Expenditure.

Key Concept

Effective Revenue Deficit and the Accounting Classification of Intergovernmental Grants in India
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