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Question 2181Question →

When the Reserve Bank of India (RBI) increases the Repo Rate during an inflationary period, which of the following outcomes is primarily expected in the economy?

Show answer & explanation

Answer: Borrowing becomes more expensive for commercial banks, leading to a reduction in market liquidity and curbing inflation.

Answer

Borrowing becomes more expensive for commercial banks, leading to a reduction in market liquidity and curbing inflation.
The correct answer correctly states that raising the Repo Rate increases borrowing costs for commercial banks, leading to higher lending rates across the banking system. This curbs credit expansion, contracts market liquidity, and helps control inflation.

Step-by-Step Solution

1
Identify the nature of Repo Rate
Repo Rate is the interest rate at which commercial banks borrow short-term funds from the RBI against government securities.
Understanding the definition helps determine how rate changes impact commercial bank costs.
2
Analyze the impact of an increase in Repo Rate
A higher Repo Rate increases the cost of borrowing for commercial banks from the RBI.
Commercial banks pass on these higher costs to their customers by raising lending interest rates.
3
Determine the macroeconomic outcome on liquidity and inflation
Higher loan rates discourage borrowing and spending, which contracts liquidity in the economy and reduces inflationary pressure.
Tightening liquidity suppresses excess aggregate demand, helping stabilize prices.

Key Concept

Repo Rate Impact on Money Supply and Inflation Control
Question 2182Question →

With reference to the historical evolution of poverty estimation committees in India, consider the following statements:

1. The Task Force chaired by Y.K. Alagh (1979) established official poverty lines anchored directly to a minimum daily intake of 2,400 calories in rural areas and 2,100 calories in urban areas.
2. The Task Force chaired by D.T. Lakdawala (1993) recommended updating state-specific poverty lines using the Consumer Price Index for Agricultural Labourers (CPI-AL) for rural areas and the Consumer Price Index for Industrial Workers (CPI-IW) for urban areas.

Which of the statements given above is/are correct?

Show answer & explanation

Answer: Both 1 and 2

Answer

Both statement 1 and statement 2 are correct.
Both statements are factually correct. The Y.K. Alagh Committee (1979) established the 2,400 kcal (rural) and 2,100 kcal (urban) daily minimum thresholds. Subsequently, the Lakdawala Committee (1993) decentralized poverty line construction to the state level and adopted CPI-AL for rural price updates and CPI-IW for urban price updates.

Step-by-Step Solution

1
Evaluate Statement 1 regarding the Y.K. Alagh Task Force (1979).
Statement 1 is correct.
The Y.K. Alagh Task Force constituted by the Planning Commission in 1979 introduced nutritional requirements as the basis for the poverty line, setting per capita daily calorie requirements at 2,400 kcal for rural areas and 2,100 kcal for urban areas.
2
Evaluate Statement 2 regarding the D.T. Lakdawala Committee (1993).
Statement 2 is correct.
The Lakdawala Committee retained the Alagh Committee's calorie norms but recommended constructing state-specific poverty lines updated for inflation using CPI-AL (rural) and CPI-IW (urban).

Key Concept

Methodological differences between official poverty estimation expert groups in India (Y.K. Alagh and Lakdawala Committees).
Estimated Time:1m 0s
Question 2183Question →

Match the money market instruments listed in List I with their corresponding issuer profiles and operational characteristics in List II.

Click a left item, then click its matching right item

Items

Call Money Market
Treasury Bills (T-Bills)
Commercial Paper (CP)
Certificate of Deposit (CD)

Matches

Show answer & explanation

Answer

Call Money Market pairs with uncollateralized overnight interbank lending; Treasury Bills pair with zero-coupon discounted sovereign debt issued by the RBI for the Central Government; Commercial Paper pairs with unsecured corporate promissory notes for working capital; Certificate of Deposit pairs with negotiable bank deposit documents.
The Call Money market facilitates overnight uncollateralized interbank liquidity management. Treasury Bills are zero-coupon sovereign discount instruments issued by RBI for the Union Government. Commercial Papers are unsecured short-term corporate promissory notes. Certificates of Deposit are bank-issued negotiable instruments backed by term deposits.

Step-by-Step Solution

1
Identify the primary participant and collateral structure of Call Money Market.
Call Money operates exclusively between banks (and primary dealers) without collateral for 1-day (overnight) periods.
Banks use it to rectify sudden Cash Reserve Ratio (CRR) or day-to-day liquidity imbalances.
2
Analyze Treasury Bills (T-Bills) features.
T-Bills are government debt issued by RBI at discount to face value in standard tenors (91, 182, 364 days).
State Governments cannot issue T-Bills; only the Central Government issues them as risk-free money market instruments.
3
Differentiate Commercial Paper (CP) from Certificate of Deposit (CD).
Commercial Paper is issued by corporate entities as unsecured promissory notes, whereas Certificates of Deposit are issued by commercial banks against deposited funds.
CP provides short-term working capital for creditworthy companies, while CD mobilizes high-value funds for banks.

Key Concept

Indian Money Market Structure and Financial Instruments
Estimated Time:2m 0s
Question 2184Question →

Which Ministry serves as the nodal administrative agency for implementing the PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme in India?

Show answer & explanation

Answer: Ministry of Housing and Urban Affairs

Answer

The Ministry of Housing and Urban Affairs serves as the nodal administrative agency for the PM SVANidhi scheme.
The PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme was launched by the Ministry of Housing and Urban Affairs (MoHUA) to provide affordable working capital micro-loans to urban street vendors, facilitating their economic rehabilitation.

Step-by-Step Solution

1
Identify the target beneficiary demographic of the PM SVANidhi scheme.
PM SVANidhi was created to provide collateral-free micro-credit loans to street vendors operating in urban areas.
Understanding the targeted population helps locate which central government department holds administrative jurisdiction.
2
Map the target sector to its corresponding central nodal ministry.
Urban livelihoods and street vending regulations fall directly under the Ministry of Housing and Urban Affairs (MoHUA).
Central government welfare schemes designate nodal ministries based on sectoral governance domains.

Key Concept

Nodal Ministries for Social Welfare and Social Security Initiatives
Question 2185Question →

Consider the following statements regarding demographic indicators, types of employment, and national skill development mechanisms in India:

1. The Dependency Ratio measures the working-age population (aged 15–64 years) expressed as a percentage of the total dependent population (aged 0–14 years and 65 years and above).
2. Structural unemployment occurs primarily due to a technological change or shift in economic structure that creates a misalignment between the skills of job seekers and the needs of employers.
3. Under the National Apprenticeship Promotion Scheme (NAPS), financial assistance for stipends is routed directly to apprentices' bank accounts via Direct Benefit Transfer (DBT).

Which of the statements given above are correct?

Show answer & explanation

Answer: 2 and 3 only

Answer

Statements 2 and 3 are correct, while statement 1 is incorrect.
The option selecting statements 2 and 3 is correct. The dependency ratio places the dependent population (aged 0–14 and 65+) in the numerator and the working-age population (aged 15–64) in the denominator, making statement 1 false. Statement 2 is true as structural unemployment stems from structural shifts and skill mismatches in the labor market. Statement 3 is true as NAPS utilizes DBT for direct stipend transfers to apprentices.

Step-by-Step Solution

1
Evaluate Statement 1 regarding the definition of the Dependency Ratio.
Statement 1 is incorrect. The Dependency Ratio is calculated as Population (0–14) + Population (65+)Population (15–64)×100\frac{\text{Population (0–14) + Population (65+)}}{\text{Population (15–64)}} \times 100. Statement 1 inverted the numerator and denominator.
Demographic trends define the dependency ratio as the ratio of dependents to the working-age population.
2
Evaluate Statement 2 regarding Structural Unemployment.
Statement 2 is correct. Structural unemployment is caused by fundamental changes in the economy, such as technological evolution, that create a divergence between available worker skill sets and employer demand.
This matches the standard economic definition of structural employment friction.
3
Evaluate Statement 3 regarding the National Apprenticeship Promotion Scheme (NAPS).
Statement 3 is correct. NAPS provides partial stipend reimbursement directly to apprentices via Direct Benefit Transfer (DBT) to encourage industrial apprenticeship participation.
Skill development reforms under MSDE implemented DBT for stipend payouts to enhance transparency and youth engagement.

Key Concept

Demographic Indicators, Structural Unemployment, and NAPS DBT Mechanism
Estimated Time:1m 50s
Question 2186Question →

Match the following key fiscal deficit indicators used in the Union Budget of India (List I) with their corresponding official technical definitions (List II). Which set of pairings represents the correct matching between the two lists?

Click a left item, then click its matching right item

Items

Fiscal Deficit
Revenue Deficit
Primary Deficit
Effective Revenue Deficit

Matches

Show answer & explanation

Answer

Fiscal Deficit matches with 'Total expenditure minus total receipts excluding non-debt receipts / borrowings'; Revenue Deficit matches with 'Excess of total revenue expenditure over total revenue receipts'; Primary Deficit matches with 'Fiscal deficit minus net interest payments on past borrowings'; and Effective Revenue Deficit matches with 'Revenue deficit minus grants-in-aid given to States for the creation of capital assets'.
The correct pairings accurately map each fiscal imbalance metric to its standard definition under Union Budget accounting. Fiscal Deficit reflects net borrowing obligations. Revenue Deficit measures consumption spending exceeding revenue income. Primary Deficit isolates current spending decisions by subtracting interest obligations. Effective Revenue Deficit corrects conventional revenue deficit for capital-forming grants to states.

Step-by-Step Solution

1
Identify the definition of Fiscal Deficit
Fiscal Deficit represents overall net debt accumulation and equals total budget expenditure minus total non-debt receipts.
It reflects the total borrowing needs of the government.
2
Identify the definition of Revenue Deficit
Revenue Deficit equals revenue expenditure minus revenue receipts.
It measures the deficit arising strictly out of non-capital, routine government operations.
3
Identify Primary Deficit
Primary Deficit equals Fiscal Deficit minus Interest Payments.
It shows the borrowing requirement arising out of current fiscal operations rather than past liabilities.
4
Identify Effective Revenue Deficit
Effective Revenue Deficit equals Revenue Deficit minus grants given for capital asset creation.
It separates productive grant expenditures from pure consumption spending.

Key Concept

Key Fiscal Deficit Metrics in Indian Budgeting
Question 2187Question →

An Indian software enterprise earns export revenue from foreign clients, pays interest on a loan raised from an overseas commercial bank, and receives an official non-repayable developmental grant from an international body. According to the standard Balance of Payments accounting framework, how are these three transactions categorized?

Show answer & explanation

Answer: Software export revenue is recorded under trade in services, interest payments under primary income, and the non-repayable grant under secondary income, all within the Current Account.

Answer

Software export revenue is recorded under trade in services, interest payments under primary income, and the non-repayable grant under secondary income, all within the Current Account.
In IMF and RBI Balance of Payments accounting, the Current Account comprises Goods, Services, Primary Income, and Secondary Income. Software exports fall under Services, interest on foreign loans falls under Primary Income (income on capital), and official non-repayable grants fall under Secondary Income (current transfers). Thus, all three items are correctly classified under the Current Account.

Step-by-Step Solution

1
Analyze the software export revenue transaction
Exporting software services to foreign clients generates invisible export earnings, which belong under the Services component of the Current Account.
Trade in services is a standard component of Current Account invisibles.
2
Analyze the interest payment on the overseas commercial loan
Servicing foreign debt via interest payments represents investment income paid to non-residents, categorized under Primary Income within the Current Account.
Payment for the use of foreign financial capital (interest/dividends) is primary income in the Current Account, whereas the principal loan movement is capital account.
3
Analyze the non-repayable official grant from an international organization
Unilateral current transfers such as grants, remittances, and gifts involving no quid pro quo or debt creation fall under Secondary Income within the Current Account.
Non-repayable grants do not affect net financial liabilities or assets, placing them under secondary income.

Key Concept

Sub-classification of Current Account Components in Balance of Payments (Goods, Services, Primary Income, Secondary Income)
Estimated Time:1m 30s
Question 2188Question →

In India's Balance of Payments (BoP) accounting, which of the following transactions are categorized under the 'Invisibles' component of the Current Account?

Select all that apply

Show answer & explanation

Answer: Earnings from software service exports; Private remittances received from non-resident workers

Answer

Earnings from software service exports and private remittances received from non-resident workers are included under the Invisibles component of the Current Account.
Earnings from software service exports (services) and private remittances received from non-resident workers (unilateral transfer payments) are non-merchandise receipts. They do not alter foreign financial asset or debt liability positions, so they are categorized under the Invisibles section of the Current Account.

Step-by-Step Solution

1
Understand the main components of the Balance of Payments (BoP) Current Account.
The Current Account consists of Visible Trade (merchandise exports and imports) and Invisible Trade (services, income, and transfers).
Categorizing transactions requires separating trade in physical goods from non-physical transactions.
2
Identify the nature of software service exports and worker remittances.
Software services fall under non-factor service exports, and worker remittances fall under transfer payments (invisibles). Neither creates financial assets or liabilities.
Current Account items reflect net flow of income, goods, and services without altering foreign asset ownership positions.
3
Distinguish current account transactions from capital account transactions.
Foreign Direct Investment and External Commercial Borrowings involve ownership changes or debt liabilities, placing them strictly in the Capital Account.
Transactions changing the external financial asset/liability position of a country belong to the Capital Account.

Key Concept

Components of Balance of Payments Current Account (Invisibles)
Estimated Time:45s
Question 2189Question →

Match the Constitutional Bodies in List-I with their corresponding Constitutional Functions and Reporting Frameworks in List-II:

Click a left item, then click its matching right item

Items

Election Commission of India
Comptroller and Auditor General of India
Union Public Service Commission
Finance Commission of India

Matches

Show answer & explanation

Answer

Election Commission of India matches with vesting the superintendence, direction, and control of elections to Parliament and State Legislatures. Comptroller and Auditor General of India matches with auditing expenditure from the Consolidated Fund of India and submitting reports to the President. Union Public Service Commission matches with submitting an annual report on performance to the President. Finance Commission of India matches with recommending principles governing grants-in-aid and tax distribution.
Each body is correctly paired with its respective constitutional role and reporting framework: Election Commission with election control (Article 324), CAG with financial auditing and reports to the President (Articles 148–151), UPSC with annual performance reports to the President (Article 323), and Finance Commission with tax distribution and grants-in-aid recommendations (Article 280).

Step-by-Step Solution

1
Examine the constitutional mandate of the Election Commission of India.
Article 324 establishes that superintendence, direction, and control of elections belong to the Election Commission.
It ensures independent conduct of free and fair elections.
2
Examine the duties of the Comptroller and Auditor General of India.
Article 151 requires the CAG to audit accounts of the Union and submit reports directly to the President.
The CAG serves as the guardian of the public purse.
3
Examine the reporting mechanism of the Union Public Service Commission.
Article 323 states that the UPSC presents an annual report on work done to the President.
This guarantees executive accountability to Parliament regarding civil service recruitment.
4
Examine the fiscal role of the Finance Commission of India.
Article 280 requires the Finance Commission to recommend principles for grants-in-aid and tax sharing between the Centre and States.
It acts as a key constitutional mechanism for fiscal federalism.

Key Concept

Constitutional provisions, mandates, and report submission frameworks of key Indian constitutional bodies.
Question 2190Question →

With reference to the Solanki (Maru-Gurjara) style of temple architecture in Western India, consider the following statements:

1. The temple complex frequently incorporates an elaborate stepped water tank, locally called a 'Kunda', positioned directly in front of the main structure.
2. The assembly hall ('Sabha Mandapa') is often designed as an independent, open structure detached from the main sanctum.
3. This architectural tradition reached its peak under the royal patronage of the Imperial Chola rulers of Tanjore.

Which of the statements given above is/are correct?

Show answer & explanation

Answer: 1 and 2 only

Answer

Statements 1 and 2 are correct.
The statement combination '1 and 2 only' is correct. Solanki temples feature stepped tanks (Kunda) such as the Surya Kunda at Modhera, and distinct, detached Sabha Mandapas with intricately carved pillars and toranas. Statement 3 is false because Solanki architecture developed in Western India under the Solanki Chalukya rulers, whereas the Cholas governed Southern India.

Step-by-Step Solution

1
Analyze Statement 1 regarding water tanks in Solanki temple complexes.
Statement 1 is correct. Solanki temple design, exemplified by the Sun Temple at Modhera, prominently features a grand stepped tank ('Kunda') filled with small shrines along its steps.
The integration of a functional and ornamental stepped water reservoir in front of the temple is a defining feature of the Maru-Gurjara style.
2
Analyze Statement 2 regarding the assembly hall layout.
Statement 2 is correct. In Solanki architecture, the 'Sabha Mandapa' (assembly hall) is often physically separate from the 'Gudhamandapa' (sanctum/shrine) and decorated with ornate carved pillars.
Detached assembly halls allowed for spacious public gatherings and elaborate decorative carvings without compromising the inner sanctum's structural plan.
3
Analyze Statement 3 regarding royal patronage and region.
Statement 3 is incorrect. The Solanki style flourished in Gujarat and Rajasthan under the Solanki (Chalukya) dynasty from the 11th to 13th centuries CE, not under the Cholas of Tanjore.
The Cholas patronized the Dravida style of architecture in Southern India, whereas Solanki is a prominent sub-school of the Nagara architectural tradition in Western India.

Key Concept

Solanki (Maru-Gurjara) Temple Architecture Features and Patronage
Estimated Time:1m 15s
Question 2191Question →

Under Article 54 of the Constitution of India, which of the following categories of members constitutes the Electoral College for the election of the President of India?

Show answer & explanation

Answer: Elected members of both Houses of Parliament and the elected members of the Legislative Assemblies of the States, including the Union Territories of Delhi and Puducherry

Answer

The statement specifying that the Electoral College consists of the elected members of both Houses of Parliament and the elected members of the Legislative Assemblies of the States, including the Union Territories of Delhi and Puducherry.
Article 54 of the Indian Constitution defines the Electoral College for the election of the President of India. It comprises elected members of the Lok Sabha and Rajya Sabha, as well as elected members of the Legislative Assemblies of States (MLAs). The 70th Constitutional Amendment Act, 1992 included the elected members of the Legislative Assemblies of the National Capital Territory of Delhi and the Union Territory of Puducherry in this Electoral College.

Step-by-Step Solution

1
Identify the relevant Constitutional Article governing the composition of the Presidential Electoral College.
Article 54 prescribes the exact composition of the Electoral College for electing the President of India.
Constitutional authority determines who holds voting rights in the presidential election.
2
Analyze the categories of members eligible to participate in the vote.
Only elected members participate: elected MPs (Lok Sabha and Rajya Sabha) and elected MLAs (State Legislative Assemblies + UTs of Delhi and Puducherry).
Nominated members of Parliament, nominated members of assemblies, and all members of State Legislative Councils (Vidhan Parishad) are excluded.
3
Match the legal provision with the correct option.
The option selecting elected members of both Houses of Parliament and elected members of State and UT Legislative Assemblies is correct.
It strictly complies with Article 54 and the 70th Constitutional Amendment Act, 1992.

Key Concept

Composition of the Presidential Electoral College under Article 54
Question 2192Question →

With reference to the twin financial social security insurance initiatives of the Government of India—the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Pradhan Mantri Suraksha Bima Yojana (PMSBY)—which of the following statements are correct?

Select all that apply

Show answer & explanation

Answer: Pradhan Mantri Jeevan Jyoti Bima Yojana offers a renewable one-year term life insurance cover of ₹2 lakh₹2\text{ lakh} for death due to any cause to bank account holders in the age group of 18 to 50 years18\text{ to }50\text{ years}.; Both PMJJBY and PMSBY are administered through participating commercial and regional rural banks in tie-up with Life Insurance Corporation and general insurance companies respectively.

Answer

The correct statements are the one describing PMJJBY providing ₹2 lakh₹2\text{ lakh} term life cover for death due to any cause for individuals aged 18 to 50 years18\text{ to }50\text{ years}, and the one detailing that both schemes are implemented via participating banks in tie-ups with insurance providers.
The correct options accurately identify that PMJJBY offers ₹2 lakh₹2\text{ lakh} life cover for any cause of death to individuals aged 18 to 50 years18\text{ to }50\text{ years}, and that institutional implementation of both schemes relies on commercial/regional rural banks partnering with life and general insurance companies.

Step-by-Step Solution

1
Evaluate the statement regarding PMJJBY parameters (coverage amount, age group, and cause of death).
PMJJBY covers death due to any cause with a sum assured of ₹2 lakh₹2\text{ lakh} for subscribers aged 18 to 50 years18\text{ to }50\text{ years}. Thus, this statement is factually accurate.
Verifying structural parameters of Central life insurance social security programs.
2
Evaluate the statement regarding PMSBY coverage quantum and age limits.
PMSBY covers accidental death and total permanent disability up to ₹2 lakh₹2\text{ lakh} (not ₹5 lakh₹5\text{ lakh}) for account holders aged 18 to 70 years18\text{ to }70\text{ years}. Thus, this statement contains an incorrect payout threshold.
Identifying precise benefit payouts under national accidental insurance policies.
3
Evaluate institutional delivery architecture and premium funding model.
Both schemes rely on bank account auto-debit ties with LIC/general insurers. Premium payments (₹436₹436 for PMJJBY and ₹20₹20 for PMSBY) are subscriber-funded rather than fully government-subsidized.
Differentiating contributory micro-insurance models from fully state-funded welfare grants.

Key Concept

Micro-insurance architecture and eligibility parameters of PMJJBY and PMSBY social security schemes
Estimated Time:2m 0s
Question 2193Question →

With reference to the constitutional architecture of the Goods and Services Tax (GST) Council in Indian Public Finance, examine the following statements:

1. The GST Council is a joint constitutional forum established under Article 279A of the Constitution of India.
2. Decisions of the Council must be taken by a majority of not less than three-fourths (75%75\%) of the weighted votes of the members present and voting.
3. The vote of the Central Government carries a weightage of one-third (13\frac{1}{3}) of the total votes cast, while the combined votes of all State Governments carry a weightage of two-thirds (23\frac{2}{3}).

Which of the statements given above are correct?

Show answer & explanation

Answer: 1, 2 and 3

Answer

All three statements (1, 2, and 3) are correct.
The choice stating '1, 2 and 3' is correct because all three statements accurately reflect the provisions of Article 279A of the Constitution of India. The GST Council is a constitutional body (Article 279A(1)), requires a three-fourths (75%) weighted majority for decisions (Article 279A(9)), and splits vote weightage as one-third for the Centre and two-thirds for all States combined.

Step-by-Step Solution

1
Evaluate Statement 1 regarding the constitutional basis of the GST Council.
Statement 1 is correct. The GST Council was inserted into the Indian Constitution via the 101st Constitutional Amendment Act, 2016 under Article 279A.
Article 279A empowers the President to constitute the Goods and Services Tax Council as a joint forum of the Centre and the States.
2
Evaluate Statement 2 regarding the decision-making voting threshold.
Statement 2 is correct. Article 279A(9) stipulates that every decision of the Council shall be taken at a meeting by a majority of not less than three-fourths (75%75\%) of the weighted votes of the members present and voting.
This high threshold promotes cooperative federalism, ensuring neither the Centre nor a small group of states can unilaterally impose decisions.
3
Evaluate Statement 3 regarding vote weightage allocation.
Statement 3 is correct. Under Article 279A(9), the vote of the Central Government has a weightage of one-third (13\frac{1}{3}) of the total votes cast, and the votes of all State Governments combined have a weightage of two-thirds (23\frac{2}{3}) of the total votes cast.
This distribution ensures that neither the Centre nor the States alone can pass a decision without substantial consensus from both tiers of government.

Key Concept

Constitutional Mechanism and Voting Architecture of the GST Council (Article 279A)
Estimated Time:1m 0s
Question 2194Question →

Match the following government employment and skill development schemes in India (List I) with their respective primary target groups or core operational objectives (List II):

Click a left item, then click its matching right item

Items

Deen Dayal Upadhyaya Grameen Koushalya Yojana (DDU-GKY)
Scheme for Higher Education Youth in Apprenticeship and Skills (SHREYES)
National Apprenticeship Promotion Scheme (NAPS)
PM Vishwakarma Scheme

Matches

Show answer & explanation

Answer

Deen Dayal Upadhyaya Grameen Koushalya Yojana (DDU-GKY) matches with placement-linked training for rural poor youth (15–35 years). SHREYES matches with apprenticeship opportunities for general non-technical higher education students. National Apprenticeship Promotion Scheme (NAPS) matches with 25% stipend financial reimbursement to employer establishments. PM Vishwakarma Scheme matches with end-to-end support for traditional artisans across 18 trades.
Each scheme is correctly paired with its target audience and primary mechanism: DDU-GKY focuses on rural youth placement-linked training; SHREYES targets general non-technical higher education graduates; NAPS offers financial incentive stipends to establishments engaging apprentices; and PM Vishwakarma supports traditional artisans and craftspeople across 18 designated family trades.

Step-by-Step Solution

1
Identify the target demographic and mandate of DDU-GKY
DDU-GKY focuses exclusively on rural poor youth in the 15–35 age group, emphasizing mandatory employment placement (minimum 70% placed).
It operates under the National Rural Livelihoods Mission (NRLM) framework.
2
Analyze SHREYES and its specific education sector focus
SHREYES addresses skill deficits among general degree graduates (non-engineering/non-technical streams) through structured apprenticeship tracks.
General stream graduates often face higher structural unemployment due to lack of practical industry exposure.
3
Examine the supply-side employer incentive mechanism of NAPS
NAPS incentivizes private and public establishments to hire apprentices by reimbursing 25% of the stipend amount directly.
This reduces cost barriers for industries participating in skill ecosystems.
4
Evaluate the target traditional craft sector covered by PM Vishwakarma
PM Vishwakarma targets traditional artisans and craftspeople working with hands and tools across 18 specified family-based trades.
The scheme integrates informal sector traditional workers into formal credit, skill development, and market access.

Key Concept

Classification and operational mandates of Indian national skill development initiatives across rural youth, higher education, industrial apprenticeships, and traditional artisans.
Estimated Time:2m 0s
Question 2195Question →

Under the Constitution of India, the writ jurisdiction of High Courts under Article 226 differs in several aspects from the writ jurisdiction of the Supreme Court under Article 32. Which of the following statements correctly highlights a fundamental constitutional distinction between the two?

Show answer & explanation

Answer: High Courts can issue writs for the enforcement of Fundamental Rights as well as for any other legal rights, whereas the Supreme Court's writ jurisdiction under Article 32 is limited strictly to the enforcement of Fundamental Rights.

Answer

High Courts can issue writs for the enforcement of Fundamental Rights as well as for any other legal rights, whereas the Supreme Court's writ jurisdiction under Article 32 is limited strictly to the enforcement of Fundamental Rights.
The correct answer highlights that High Courts have broader subject-matter writ jurisdiction under Article 226 because they can issue writs for fundamental rights as well as ordinary legal rights ('for any other purpose'). In contrast, Article 32 limits the Supreme Court's writ power strictly to enforcing Fundamental Rights.

Step-by-Step Solution

1
Analyze the subject-matter scope of Article 32 versus Article 226.
Article 32 allows the Supreme Court to issue writs exclusively for the enforcement of Fundamental Rights guaranteed in Part III. Article 226 empowers High Courts to issue writs for the enforcement of Fundamental Rights 'and for any other purpose' (ordinary legal rights).
The expression 'for any other purpose' widens the remedy under Article 226 compared to Article 32.
2
Evaluate the constitutional nature of the remedy under both articles.
Article 32 is itself a Fundamental Right in Part III, making the right to approach the Supreme Court mandatory for fundamental rights violations. Article 226 is in Part VI and provides discretionary writ powers to High Courts.
The Supreme Court cannot refuse to exercise its jurisdiction under Article 32, whereas High Court writ remedies under Article 226 are discretionary.
3
Compare territorial jurisdiction bounds.
The Supreme Court can issue writs against any person or authority throughout India, whereas High Court writs are limited to their regional territory (or where the cause of action arises).
Territorial jurisdiction of the Supreme Court is broader, but subject-matter jurisdiction of the High Court is broader.

Key Concept

Scope and Distinction of Writ Jurisdictions under Article 32 and Article 226
Question 2196Question →

Which of the following relief features of India is correctly matched with its dominant physiographic and geological characteristic?

Show answer & explanation

Answer: Bhabar belt – A narrow porous zone of pebble deposits along the Shiwalik break of slope where streams sink and flow underground.

Answer

The Bhabar belt is correctly matched as a narrow porous zone of pebble deposits along the Shiwalik break of slope where streams sink and flow underground.
The Bhabar belt is a narrow zone (8 to 10 km wide) running parallel to the foothills of the Shiwalik range. It is composed of unsorted pebbles and boulders deposited by streams descending from the mountains. Due to the high porosity of these pebble beds, surface streams sink and flow underground.

Step-by-Step Solution

1
Examine the structural characteristics of the northern plain relief divisions from north to south.
As Himalayan rivers descend from the Shiwaliks, they deposit boulders and coarse pebbles forming the Bhabar belt (8-10 km wide). High porosity causes surface streams to disappear.
Coarse alluvial fans along mountain slopes create high permeability.
2
Analyze the features of Terai and Bhangar zones.
South of Bhabar lies the marshy, wet Terai zone where underground streams re-emerge. Bhangar is the older alluvium forming higher terraces away from river beds, distinct from Khadar.
Differentiating between wet marshland (Terai) vs. older floodplain terraces (Bhangar).
3
Evaluate the rock composition of the Deccan Traps.
Deccan Traps are basaltic lava landforms formed by volcanic activity, not folded Gondwana sedimentary rocks.
Peninsular shield geology distinguishes volcanic basaltic traps from coal-bearing Gondwana basins.

Key Concept

Physiographic relief divisions of the Northern Plains and Peninsular Plateau of India
Estimated Time:1m 0s
Question 2197Question →

An Indian firm receives investment returns from its foreign subsidiary in the form of profit remittances and also raises long-term commercial loans from an overseas institution. How are these two transactions respectively classified in India's Balance of Payments (BoP) statement?

Show answer & explanation

Answer: Profit remittances are recorded under the Current Account as primary income, while long-term foreign commercial loans are recorded under the Capital Account.

Answer

Profit remittances are recorded under the Current Account as primary income, while long-term foreign commercial loans are recorded under the Capital Account.
The Current Account of Balance of Payments records trade in goods, services, primary income (such as profits, dividends, and interest), and secondary income (remittances). Profit remittances from overseas subsidiaries are primary income entries under the Current Account. Conversely, External Commercial Borrowings (ECBs) create future financial obligations and alter the country's foreign liability position, making them Capital Account entries.

Step-by-Step Solution

1
Analyze the nature of profit remittances in Balance of Payments accounting.
Profit remittances represent income earned on cross-border capital investments (primary income/invisibles) without altering foreign debt assets or liabilities.
The Current Account records transactions involving exports, imports, net services, and net factor income from abroad (dividends, interest, profits).
2
Analyze the nature of foreign commercial loans (External Commercial Borrowings).
Foreign commercial loans change the financial assets and debt liabilities of domestic residents relative to non-residents.
The Capital Account records all transactions that alter foreign financial assets and liabilities of a nation.
3
Synthesize the accounting classifications to select the matching option.
Profit remittances belong to the Current Account, while commercial loans belong to the Capital Account.
This preserves the standard distinction between current income/spending flows and financial asset/liability creation.

Key Concept

Classification of Balance of Payments (BoP) transactions into Current Account (invisibles/primary income) and Capital Account (external borrowings/investments).
Estimated Time:1m 0s
Question 2198Question →

Consider the following statements regarding the operating framework of monetary policy and liquidity management by the Reserve Bank of India (RBI):

1. The Standing Deposit Facility (SDF) rate serves as the floor of the Liquidity Adjustment Facility (LAF) corridor and allows the RBI to absorb liquidity without requiring collateral securities.
2. An increase in the Cash Reserve Ratio (CRR) impounds bank liquidity, reducing money creation capacity and leading to a contraction in the monetary base multiplier.
3. When the Weighted Average Call Rate (WACR) consistently trades closer to the Marginal Standing Facility (MSF) rate than the Repo rate, it reflects a state of structural liquidity surplus in the banking system.

Which of the statements given above is/are correct?

Show answer & explanation

Answer: 1 and 2 only

Answer

The statement combination '1 and 2 only' is correct.
The combination '1 and 2 only' is correct. Standing Deposit Facility (SDF) functions without collateral assets as the floor of the LAF corridor, and elevating the Cash Reserve Ratio (CRR) impounds liquidity to shrink the credit expansion potential and money multiplier. Conversely, short-term money market rates trading near the Marginal Standing Facility (MSF) rate indicate severe liquidity deficit rather than surplus.

Step-by-Step Solution

1
Analyze Statement 1
Statement 1 is true.
Introduced in 2022, the Standing Deposit Facility (SDF) acts as the lower bound (floor) of the LAF corridor at 25 bps below the policy repo rate. Unlike Reverse Repo, SDF does not require the RBI to provide Government Securities as collateral.
2
Analyze Statement 2
Statement 2 is true.
The Cash Reserve Ratio (CRR) mandates the share of NDTL commercial banks must keep with RBI as cash. Increasing CRR removes primary liquidity from banks, constrains loan growth, and decreases the money multiplier (m=1+cr+cm = \frac{1 + c}{r + c}).
3
Analyze Statement 3
Statement 3 is false.
The MSF rate is the upper bound (ceiling) of the LAF corridor where banks borrow emergency liquidity against penalty interest rates. If WACR trends upward near the MSF ceiling, money market liquidity is extremely tight (liquidity deficit), whereas WACR trading near SDF signifies liquidity surplus.

Key Concept

Operating Framework of Liquidity Adjustment Facility (LAF) Corridor, SDF, CRR, and Call Money Market Mechanics
Question 2199Question →

Match the Reserve Bank of India (RBI) monetary policy terms in List I with their corresponding functional descriptions in List II.

Click a left item, then click its matching right item

Items

Cash Reserve Ratio (CRR)
Statutory Liquidity Ratio (SLR)
Marginal Standing Facility (MSF)
Standing Deposit Facility (SDF)

Matches

Show answer & explanation

Answer

Cash Reserve Ratio (CRR) matches with the minimum cash percentage kept with RBI; Statutory Liquidity Ratio (SLR) matches with liquid assets held in gold/G-secs; Marginal Standing Facility (MSF) matches with the overnight borrowing window at a higher rate; Standing Deposit Facility (SDF) matches with collateral-free liquidity absorption.
Each monetary policy tool matches its exact operational definition under the RBI framework: CRR specifies cash held with RBI, SLR specifies liquid assets held by banks, MSF provides overnight borrowing under liquidity distress, and SDF absorbs excess liquidity without requiring collateral.

Step-by-Step Solution

1
Identify the reserve requirements governing commercial bank deposits.
Cash Reserve Ratio (CRR) corresponds to mandatory cash balances kept directly with the RBI, whereas Statutory Liquidity Ratio (SLR) corresponds to liquid assets maintained by banks themselves.
CRR and SLR are quantitative reserve requirements designed to ensure liquidity, solvency, and control over money supply.
2
Identify the specific liquidity adjustment facilities operated by the RBI.
Marginal Standing Facility (MSF) is an emergency overnight borrowing window above the Repo rate, while Standing Deposit Facility (SDF) absorbs surplus liquidity without requiring collateral.
MSF provides emergency liquidity injection, whereas SDF serves as the floor rate for liquidity absorption without collateral constraints.

Key Concept

RBI Monetary Policy Reserve Requirements and Liquidity Management Facilities
Estimated Time:1m 0s
Question 2200Question →

In a socio-economic survey of a region, the total national income distribution across ten equal population deciles (from lowest to highest income group) is recorded as follows:

- Deciles 1 to 4 (poorest 40%): 2%2\%, 3%3\%, 4%4\%, and 6%6\% respectively
- Deciles 5 to 9 (middle 50%): 7%7\%, 9%9\%, 11%11\%, 13%13\%, and 15%15\% respectively
- Decile 10 (richest 10%): 30%30\%

Based on this distribution, what is the Palma Ratio for this region?

Show answer & explanation

Answer: 2

Answer

The Palma Ratio for the region is 2.0.
The Palma Ratio measures economic inequality by dividing the share of national income held by the top 10% of the population by the share of national income held by the bottom 40%. Here, the share held by the top 10% (Decile 10) is 30%, while the cumulative share held by the bottom 40% (Deciles 1–4) is 2% + 3% + 4% + 6% = 15%. Dividing 30% by 15% yields a Palma Ratio of 2.0.

Step-by-Step Solution

1
Identify the income share of the top 10% income group (Decile 10).
The top 10% population holds 30%30\% of the total income.
The Palma Ratio specifically compares the richest 10% to the poorest 40%.
2
Sum the income shares for the poorest 40% of the population (Deciles 1 through 4).
Sum = 2%+3%+4%+6%=15%2\% + 3\% + 4\% + 6\% = 15\%.
The bottom 40% share forms the denominator in the Palma Ratio calculation.
3
Divide the top 10% share by the bottom 40% share.
Palma Ratio = 30%15%=2.0\frac{30\%}{15\%} = 2.0.
Applying the mathematical definition of the Palma Ratio.

Key Concept

Palma Ratio as an Inequality Metric
Estimated Time:1m 30s
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