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Question 2201Question →

With reference to the core provisions of the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), which of the following statements are correct?

Select all that apply

Show answer & explanation

Answer: It offers a life insurance cover of ₹2 Lakh in the case of death due to any cause.; It is available to individuals in the age group of 18 to 50 years having a savings bank account.

Answer

The correct statements are that PMJJBY offers a life insurance cover of ₹2 Lakh in case of death due to any cause, and that it is available to individuals in the age group of 18 to 50 years having a savings bank account.
The statement regarding the ₹2 Lakh death cover for death due to any cause and the statement specifying entry age between 18 and 50 years for savings account holders are both factual features of PMJJBY.

Step-by-Step Solution

1
Analyze the sum assured and coverage terms of PMJJBY.
PMJJBY provides a basic term insurance cover of ₹2 Lakh upon death due to any reason.
This establishes the financial payout and scope of coverage provided under the scheme.
2
Evaluate the target entry age and eligibility parameters.
Individuals between 18 and 50 years with an active savings account are eligible to enroll.
The entry age bracket is restricted to 18-50 years, though life cover continues up to 55 years subject to regular premium payment.
3
Assess the voluntary nature and exit age rules of the scheme.
The scheme is completely voluntary (not mandatory) and risk coverage terminates at age 55, not 70.
Confusing PMJJBY exit age (55 years) with PMSBY exit age (70 years) or assuming compulsory enrollment are common misconceptions.

Key Concept

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Eligibility and Benefits
Question 2202Question →

Consider the following statements regarding the monetary policy mechanisms and liquidity tools of the Reserve Bank of India (RBI):

1. The Standing Deposit Facility (SDF) functions as an uncollateralized liquidity absorption mechanism forming the floor of the Liquidity Adjustment Facility (LAF) corridor.
2. Commercial banks are permitted to dip into their mandatory Statutory Liquidity Ratio (SLR) portfolio within specified limits to borrow emergency overnight funds under the Marginal Standing Facility (MSF).
3. An increase in the Cash Reserve Ratio (CRR) leads to an expansion of the money multiplier and expands credit creation capacity in the banking system.

Which of the statements given above are correct?

Show answer & explanation

Answer: 1 and 2 only

Answer

The combination '1 and 2 only' is correct because Statement 1 and Statement 2 correctly describe the operational features of SDF and MSF, while Statement 3 incorrectly states the effect of CRR on the money multiplier.
The option selecting statements 1 and 2 only is correct. Statement 1 is true because the SDF allows the RBI to drain surplus systemic liquidity without pledging government securities. Statement 2 is true because MSF provides penal rate borrowing where banks can utilize a portion of their Statutory Liquidity Ratio (SLR) securities. Statement 3 is false because increasing the CRR locks away a higher proportion of bank deposits, leading to credit contraction and a smaller money multiplier.

Step-by-Step Solution

1
Analyze Statement 1 regarding the Standing Deposit Facility (SDF).
Statement 1 is correct.
The SDF was introduced by the RBI as an uncollateralized liquidity absorption tool operating at the base floor of the Liquidity Adjustment Facility corridor.
2
Analyze Statement 2 regarding the Marginal Standing Facility (MSF).
Statement 2 is correct.
Under MSF, scheduled commercial banks can borrow emergency overnight funds by dipping into their SLR securities up to a designated percentage of Net Demand and Time Liabilities (NDTL).
3
Analyze Statement 3 regarding Cash Reserve Ratio (CRR) and money multiplier.
Statement 3 is incorrect.
Money multiplier is inversely related to reserve requirements (m≈1CRRm \approx \frac{1}{CRR}). Increasing the CRR forces banks to hold more liquid cash reserves with RBI, reducing total loanable funds and contracting the money multiplier.

Key Concept

Standing Deposit Facility, Marginal Standing Facility, and Money Multiplier dynamics under RBI Monetary Framework
Question 2203Question →

Match the soil types of India listed in List-I with their corresponding pedological characteristics described in List-II.

Click a left item, then click its matching right item

Items

Laterite Soil
Black (Regur) Soil
Saline Soil
Peaty Soil

Matches

Show answer & explanation

Answer

Laterite Soil corresponds to intense leaching of silica and lime; Black Soil corresponds to high moisture retention and self-ploughing capacity; Saline Soil corresponds to high concentration of soluble salts due to capillary action; Peaty Soil corresponds to accumulation of large amounts of organic matter producing heavy and highly acidic soils.
Each soil type is correctly paired with its primary pedological feature: Laterite Soil with intense tropical leaching of silica and lime, Black Soil with moisture retention and self-ploughing swell-shrink dynamics, Saline Soil with surface salt crusting via capillary action, and Peaty Soil with heavy organic matter accumulation resulting in high acidity.

Step-by-Step Solution

1
Identify the pedogenic process of Laterite Soil
Heavy monsoon rainfall washes away soluble nutrients like lime and silica, leaving behind oxides of iron and aluminum.
This intense tropical leaching process is known as laterization.
2
Analyze the physical mechanics of Black (Regur) Soil
High clay content absorbs water and swells, while drying produces wide cracks that allow surface soil to fall inward.
This natural churning process provides aeration and moisture retention without requiring manual tillage.
3
Determine the chemical enrichment mechanism of Saline Soil
High evaporation rates draw subsoil water containing dissolved salts to the upper horizon through capillary action.
Excessive salts remain on the surface as a white crust, inhibiting crop root growth.
4
Examine the composition of Peaty Soil
Humid climatic conditions with waterlogging lead to anaerobic decay of vegetation and massive humus accumulation.
Organic content can reach up to 40-50%, producing a dense, highly acidic soil profile.

Key Concept

Pedological characteristics and pedogenic processes of major Indian soil groups
Question 2204Question →

Match List-I (Constitutional Articles of the Union Executive) with List-II (Their Respective Provisions) and select the correct matching code:

Click a left item, then click its matching right item

Items

Article 60
Article 66
Article 72
Article 76

Matches

Show answer & explanation

Answer

Article 60 pairs with Oath or affirmation by the President; Article 66 pairs with Election of the Vice-President of India; Article 72 pairs with Power of the President to grant pardons and suspend sentences; Article 76 pairs with Appointment and duties of the Attorney-General for India.
The matching correctly aligns each constitutional article with its specific provision under Part V of the Constitution of India: Article 60 covers the Oath or affirmation by the President, Article 66 governs the Vice-President's election, Article 72 provides the President's pardoning power, and Article 76 provides for the Attorney-General for India.

Step-by-Step Solution

1
Identify the constitutional scope of Article 60 and Article 66.
Article 60 covers the oath/affirmation administered to the President (usually by the CJI), while Article 66 details the election of the Vice-President by members of both Houses of Parliament.
Establishing the constitutional articles related to the office and oath of Executive dignitaries.
2
Match Article 72 and Article 76 to their executive functions.
Article 72 outlines the judicial powers of the President regarding pardons, reprieves, respites, or remissions of punishment. Article 76 outlines the appointment and role of the Attorney-General for India as part of the Union Executive.
Distinguishing executive clemency provisions from statutory/constitutional law officer roles.

Key Concept

Constitutional Articles governing the Union Executive officers and powers
Question 2205Question →

Which of the following assets is NOT included as a component of India's official Foreign Exchange Reserves held by the Reserve Bank of India (RBI)?

Show answer & explanation

Answer: Foreign Direct Investment (FDI) equity inflows held in corporate bank accounts

Answer

Foreign Direct Investment equity inflows held in corporate bank accounts are not part of India's official Foreign Exchange Reserves.
The official Foreign Exchange Reserves of India managed by the Reserve Bank of India consist strictly of four official reserve assets: Foreign Currency Assets (FCA), Gold, Special Drawing Rights (SDRs), and the Reserve Tranche Position (RTP) in the IMF. Foreign Direct Investment (FDI) equity investments are private capital transactions and do not constitute central bank reserve holdings.

Step-by-Step Solution

1
Identify the four standard components of India's Foreign Exchange Reserves maintained by the RBI.
The components are: (1) Foreign Currency Assets (FCA), (2) Gold reserves, (3) Special Drawing Rights (SDRs), and (4) Reserve Tranche Position (RTP) in the IMF.
Official foreign exchange reserves are central bank monetary assets maintained to handle balance of payments imbalances and exchange rate management.
2
Analyze the role of Foreign Direct Investment (FDI) equity inflows.
FDI flows into domestic companies and commercial banking channels as private capital investment recorded in the Balance of Payments capital account.
Private capital holdings are owned by enterprises and individuals, not held directly as central bank foreign exchange reserve holdings.

Key Concept

Components of India's Foreign Exchange Reserves
Question 2206Question →

Consider the following key institutional and policy initiatives related to infrastructure and trade development in India:
1. Launch of the PM Gati Shakti - National Master Plan for Multi-modal Connectivity
2. Enactment of the Special Economic Zones (SEZ) Act
3. Announcement of the National Highways Development Project (NHDP)
4. Enactment of the National Highways Authority of India (NHAI) Act

Which sequence represents the correct chronological order of these initiatives 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: Enactment of the National Highways Authority of India (NHAI) Act (1988), followed by the Announcement of the National Highways Development Project (NHDP) (1998), then the Enactment of the Special Economic Zones (SEZ) Act (2005), and finally the Launch of the PM Gati Shakti - National Master Plan (2021).
The correct chronological sequence of these landmark economic and infrastructure initiatives is:
1. Enactment of the NHAI Act (1988)
2. Announcement of the NHDP / Golden Quadrilateral (1998)
3. Enactment of the Special Economic Zones Act (2005)
4. Launch of PM Gati Shakti - National Master Plan (2021)

Step-by-Step Solution

1
Identify the enactment year of the National Highways Authority of India (NHAI) Act.
The NHAI Act was passed by Parliament in 1988.
This laid the statutory groundwork for national highway management in India.
2
Determine the launch year of the National Highways Development Project (NHDP).
The NHDP was announced in 1998.
It initiated flagship infrastructure projects like the Golden Quadrilateral.
3
Determine the enactment year of the Special Economic Zones (SEZ) Act.
The SEZ Act was enacted in May 2005.
It institutionalized comprehensive incentives for export-oriented industrial manufacturing.
4
Identify the launch year of the PM Gati Shakti - National Master Plan.
PM Gati Shakti was launched in October 2021.
It introduced a digital master plan for synchronized multi-modal infrastructure execution.
5
Sequence the initiatives chronologically.
1988 -> 1998 -> 2005 -> 2021.
Arranging the years in ascending order gives the correct historical sequence.

Key Concept

Historical progression of major infrastructure governance, industrial development, and trade facilitation initiatives in post-independence India.
Estimated Time:2m 0s
Question 2207Question →

Consider the following statements regarding the State Public Service Commission (SPSC):

1. Although appointed by the Governor of the State, the Chairman and members of an SPSC can be removed from office only by the President of India.
2. The procedure and grounds for the removal of an SPSC member are identical to those prescribed for a Judge of a High Court.
3. Upon ceasing to hold office, the Chairman of an SPSC is eligible for appointment as the Chairman or a member of the Union Public Service Commission (UPSC).

Which of the statements given above is/are correct?

Show answer & explanation

Answer: 1 and 3 only

Answer

Statements 1 and 3 are correct.
Under Article 316 of the Constitution of India, the Chairman and members of a State Public Service Commission are appointed by the Governor of the state. However, under Article 317, they can be removed from office only by an order of the President of India on the ground of misbehaviour after the Supreme Court, on a reference made by the President, conducts an inquiry and recommends removal. This makes Statement 1 correct and Statement 2 incorrect (since High Court Judges are removed through a parliamentary address under Article 124(4)). Under Article 319, on ceasing to hold office, the Chairman of an SPSC is eligible for appointment as the Chairman or a member of the Union Public Service Commission (UPSC) or as the Chairman of any other SPSC, making Statement 3 correct.

Step-by-Step Solution

1
Evaluate Statement 1 regarding appointment and removal authority of SPSC members.
Statement 1 is correct. Under Article 316, SPSC members are appointed by the Governor, but under Article 317, they can only be removed by the President of India.
Constitutional provisions grant independence to SPSC members by restricting the power of removal strictly to the President.
2
Evaluate Statement 2 regarding the removal mechanism for SPSC members vs High Court Judges.
Statement 2 is incorrect. Removal of SPSC members on grounds of misbehaviour requires the President to refer the matter to the Supreme Court for an inquiry. High Court Judges, by contrast, are removed by Parliament passing an address supported by a special majority.
The removal procedures for SPSC members (Article 317) and High Court Judges (Article 217/124) follow distinct constitutional mechanisms.
3
Evaluate Statement 3 regarding post-retirement eligibility of the SPSC Chairman.
Statement 3 is correct. Article 319 explicitly allows the Chairman of an SPSC to be appointed as the Chairman or member of the UPSC, or as the Chairman of another SPSC.
Article 319 prevents government influence while permitting lateral or upward movement to higher constitutional bodies like the UPSC.

Key Concept

Appointment, removal safeguards, and post-retirement eligibility of State Public Service Commission members under Articles 316, 317, and 319 of the Constitution of India.
Question 2208Question →

Arrange the following key constitutional proposals and initiatives during the British colonial period in India in chronological order from earliest to latest:

Drag items to arrange them in the correct order

Show answer & explanation

Answer

The correct chronological sequence from earliest to latest is: August Offer (August 1940) → Cripps Mission (March 1942) → Simla Conference / Wavell Plan (June 1945) → Cabinet Mission Plan (May 1946).
The correct timeline begins with the August Offer in August 1940, followed by the arrival of the Cripps Mission in March 1942. Subsequent to the WWII negotiations came the Wavell Plan discussed at the Simla Conference in June 1945, culminating with the Cabinet Mission Plan announced in May 1946.

Step-by-Step Solution

1
Identify the historical date of the August Offer
August Offer was announced by Viceroy Lord Linlithgow in August 1940.
It marks the earliest constitutional initiative among the given items, proposed during World War II.
2
Identify the historical date of the Cripps Mission
The Cripps Mission arrived in India in March 1942.
It followed the failure of the August Offer and sought Indian cooperation in wartime defense.
3
Identify the historical date of the Wavell Plan and Simla Conference
The Wavell Plan was discussed at the Simla Conference in June–July 1945.
It was introduced towards the end of WWII in Europe to resolve political deadlock.
4
Identify the historical date of the Cabinet Mission Plan
The Cabinet Mission Plan was published in May 1946.
It came after WWII as the final major attempt to maintain a united India before independence.

Key Concept

Chronological development of constitutional reform proposals and transfer-of-power negotiations in India between 1940 and 1946.
Estimated Time:1m 15s
Question 2209Question →

Arrange the following prominent historical monuments of Indian art and architecture in correct chronological order of their construction/creation, starting from the earliest to the latest:

1. Sun Temple, Konark
2. Badami Cave Temple No. 3
3. Kandariya Mahadeva Temple, Khajuraho
4. Shore Temple, Mamallapuram

Which of the following represents the correct chronological sequence?

Drag items to arrange them in the correct order

Show answer & explanation

Answer

The correct chronological sequence from earliest to latest is Badami Cave Temple No. 3 (6th Century CE), followed by Shore Temple at Mamallapuram (8th Century CE), Kandariya Mahadeva Temple at Khajuraho (11th Century CE), and Sun Temple at Konark (13th Century CE).
The correct sequence begins with Badami Cave Temple No. 3, which contains an inscription from 578 CE during the Early Chalukya era. Next is the Shore Temple at Mamallapuram, built under Pallava King Narasimhavarman II in the early 8th century CE. This is followed by the Kandariya Mahadeva Temple at Khajuraho, constructed by Chandela ruler Vidyadhara in the 11th century CE. Finally, the Sun Temple at Konark was built under Eastern Ganga ruler Narasimhadeva I in the mid-13th century CE.

Step-by-Step Solution

1
Determine the approximate century and dynasty for each architectural monument.
Badami Cave Temple No. 3 (~578 CE, Badami Chalukya), Shore Temple (~700–728 CE, Pallava), Kandariya Mahadeva Temple (~1025–1050 CE, Chandela), Sun Temple Konark (~1250 CE, Eastern Ganga).
Identifying the century and ruling dynasty allows placing each structure in historical sequence.
2
Order the monuments from earliest to latest date of creation.
Order: Badami Cave Temple No. 3 (6th C) → Shore Temple, Mamallapuram (8th C) → Kandariya Mahadeva Temple, Khajuraho (11th C) → Sun Temple, Konark (13th C).
Matching the centuries chronologically yields the correct order.

Key Concept

Chronological evolution of Indian rock-cut and temple architecture across major historical dynasties
Question 2210Question →

Match List-I (Early Nationalist Leader) with List-II (Associated Journal/Newspaper) associated with the early phase of Indian nationalism:

List-I (Leader)List-II (Journal/Newspaper)
P. Dadabhai Naoroji1. Amrita Bazar Patrika
Q. Sisir Kumar Ghosh2. Voice of India
R. G. Subramania Iyer3. Sudharak
S. Gopal Krishna Gokhale4. The Hindu

Which of the following options represents the correct matching code?

Show answer & explanation

Answer: P-2, Q-1, R-4, S-3

Answer

The correct match is P-2, Q-1, R-4, S-3.
The correct combination accurately pairs early Moderate and nationalist leaders with their prominent press vehicles: Dadabhai Naoroji (Voice of India), Sisir Kumar Ghosh (Amrita Bazar Patrika), G. Subramania Iyer (The Hindu), and Gopal Krishna Gokhale (Sudharak).

Step-by-Step Solution

1
Identify the journal started/edited by Dadabhai Naoroji
Dadabhai Naoroji started and edited 'Voice of India' in Bombay (1883) to represent Indian public opinion. Thus, P matches with 2.
Matching leader P with its corresponding publication.
2
Identify the journal founded by Sisir Kumar Ghosh
Sisir Kumar Ghosh and his brothers founded 'Amrita Bazar Patrika' in 1868 in Bengal. Thus, Q matches with 1.
Matching leader Q with its corresponding publication.
3
Identify the newspaper founded by G. Subramania Iyer
G. Subramania Iyer was a co-founder and editor of 'The Hindu' (1878) in Madras. Thus, R matches with 4.
Matching leader R with its corresponding publication.
4
Identify the journal edited by Gopal Krishna Gokhale
Gopal Krishna Gokhale edited the English newspaper 'Sudharak' (started by Gopal Ganesh Agarkar). Thus, S matches with 3.
Matching leader S with its corresponding publication.

Key Concept

Early Nationalist Press and Literature during the Rise of Indian Nationalism
Question 2211Question →

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

1. Reinvested earnings of foreign direct investment (FDI) enterprises operating in India are recorded under the Primary Income of the Current Account as an income outflow and simultaneously under the Capital/Financial Account as an FDI inflow.
2. Interest payments made by Indian corporates on overseas External Commercial Borrowings (ECBs) are classified under the Capital Account because ECBs themselves represent capital account transactions.
3. Personal remittances sent by Non-Resident Indians (NRIs) to their families in India are recorded under Secondary Income in the Current Account.
4. Foreign currency inflows deposited into Non-Resident External (NRE) bank accounts in India are recorded under Current Account invisibles as private transfers.

Which of the statements given above are correct?

Show answer & explanation

Answer: 1 and 3 only

Answer

Statements 1 and 3 are correct.
Statements 1 and 3 are correct. Reinvested earnings of FDI companies are accounted as primary income debit in the current account and an equal FDI equity credit in the capital account. Personal remittances are unrequited current transfers categorized under secondary income. In contrast, interest on foreign debt is a current account primary income item, and NRI deposit accounts represent capital account liabilities.

Step-by-Step Solution

1
Analyze Statement 1 regarding reinvested earnings of FDI enterprises.
In accordance with RBI and IMF BPM6 standards, direct investors' share of retained earnings is debited under Current Account (Primary Income / Investment Income) as if distributed, and credited under Capital Account as reinvested equity FDI inflow.
It reflects both the earning accruing to foreign owners and its immediate reinvestment in the domestic enterprise.
2
Analyze Statement 2 regarding interest payments on External Commercial Borrowings (ECBs).
Interest payment is debt servicing and is classified under Primary Income (Investment Income payout) in the Current Account.
Only principal drawdown and repayment are recorded in the Capital Account under ECBs.
3
Analyze Statement 3 regarding NRI personal remittances.
Unilateral cross-border transfers without any quid pro quo are recorded under Secondary Income (Current Account invisibles).
Remittances do not create any future financial claim or liability.
4
Analyze Statement 4 regarding NRI bank deposit inflows (NRE/FCNR).
NRE bank deposits represent repayable financial liabilities of the banking system and are recorded under Banking Capital in the Capital Account.
They are debt liabilities, unlike unilateral personal remittances.

Key Concept

Classification of Current Account (Goods, Services, Primary Income, Secondary Income) versus Capital Account (FDI, FPI, ECBs, Banking Capital/NRI Deposits) in India's Balance of Payments.
Question 2212Question →

Rural settlements in India display distinct morphological structures and spatial distributions influenced by physical terrain, agricultural potential, and socio-cultural factors. Which of the following statements regarding rural settlement types in India are correct?

Select all that apply

Show answer & explanation

Answer: Clustered or nucleated settlements are predominantly concentrated in the fertile alluvial plains of Northern India and in security-sensitive northeastern states like Nagaland.; Hamleted settlements consist of multiple physically separated hamlets bearing a common overarching village name, locally known as Panna, Para, Nagla, or Dhani.; Semi-clustered or fragmented settlements frequently result from forced spatial segregation where laboring communities live on the outer periphery of a compact village.

Answer

The statements describing clustered settlements in Northern plains and Nagaland, hamleted settlements with local designations like Para and Nagla, and semi-clustered settlements resulting from spatial segregation are correct.
The correct statements accurately identify that clustered settlements dominate fertile plains and security-focused areas; hamleted villages consist of physically separated units with local terms like Para, Nagla, and Dhani; and semi-clustered villages stem from social segregation and peripheral settlement of laboring castes.

Step-by-Step Solution

1
Analyze the physical terrain and socio-cultural determinants of clustered rural settlements.
Clustered settlements thrive in fertile alluvial plains (Ganga plain) and defense-driven tribal belts (Nagaland).
Compact housing provides defense advantages and maximizes agricultural productivity on rich plains.
2
Evaluate the spatial distribution of dispersed settlements versus deltaic and coastal plains.
Dispersed settlements occur in remote, hilly, or arid terrains, not in fertile deltaic lowlands.
Low-lying deltas support high population density requiring nucleated or semi-nucleated structures rather than scattered homesteads.
3
Examine the social factors shaping hamleted and semi-clustered settlements.
Social stratification and physical expansion create hamleted units (Para, Nagla) and peripheral semi-clustered layouts.
Caste hierarchy and spatial division historically dictated settlement boundaries in Indian rural geography.

Key Concept

Classification and Geographical Distribution of Indian Rural Settlement Types
Estimated Time:1m 0s
Question 2213Question →

Regarding the structural classification of economic transactions in India's Balance of Payments (BoP), which of the following statements are correct?

Select all that apply

Show answer & explanation

Answer: Foreign Direct Investment (FDI) inflows and Foreign Portfolio Investment (FPI) investments are recorded as entries under the Capital Account.; External Commercial Borrowings (ECBs) raised by Indian corporate entities from non-resident lenders are categorized under the Capital Account.; Interest payments made by domestic firms on foreign commercial loans are categorized under the Invisibles (Primary Income) section of the Current Account.

Answer

The correct statements are those indicating that FDI/FPI flows belong to the Capital Account, External Commercial Borrowings belong to the Capital Account, and interest payments on foreign loans are categorized under the Current Account as part of investment income.
Foreign Direct Investment, Foreign Portfolio Investment, and External Commercial Borrowings directly modify the foreign financial asset and liability balances of an economy, so they are recorded under the Capital Account. Interest payments represent factor income outgo for using foreign funds and are correctly recorded under Primary Income in the Current Account.

Step-by-Step Solution

1
Differentiate between Current Account and Capital Account items in BoP accounting.
Current Account records trade in goods, services (invisibles), primary income (interest, dividend, profit remittances), and secondary income (unilateral transfers/remittances). Capital Account records debt liabilities, asset creation, FDI, FPI, and loans.
Establishing clear accounting boundaries ensures correct classification of transactions.
2
Evaluate statements regarding FDI/FPI, ECBs, family remittances, and interest payments.
FDI, FPI, and ECBs alter financial liabilities/assets and belong to the Capital Account. Interest payments reflect income flows from investment and belong to the Current Account. Unilateral family remittances do not create future claims/liabilities, placing them in the Current Account.
Accurate placement depends on whether the transaction affects the foreign asset/liability position or represents income/transfers.

Key Concept

Balance of Payments Current Account vs Capital Account Classification
Question 2214Question →

Arrange the following prominent Himalayan mountain passes of India in sequence from West to East.

Drag items to arrange them in the correct order

Show answer & explanation

Answer

The correct longitudinal sequence of the mountain passes from West to East is Banihal Pass (Jammu & Kashmir), Bara Lacha La (Himachal Pradesh), Lipulekh Pass (Uttarakhand), and Jelep La (Sikkim).
The correct order from West to East aligns with the state-wise physical geography of the Himalayas: Banihal Pass (Jammu & Kashmir) is the furthest west, followed by Bara Lacha La (Himachal Pradesh), Lipulekh Pass (Uttarakhand), and Jelep La (Sikkim) furthest east.

Step-by-Step Solution

1
Identify the geographical location and approximate longitude of each pass
Banihal Pass is situated in Jammu & Kashmir (~75.2° E), Bara Lacha La in Himachal Pradesh (~77.4° E), Lipulekh Pass in Uttarakhand (~81.0° E), and Jelep La in Sikkim (~88.9° E).
Determining longitudinal placement is essential for West-to-East spatial ordering.
2
Arrange the passes progressively from the lowest longitude (westernmost) to the highest longitude (easternmost)
Order: Banihal Pass → Bara Lacha La → Lipulekh Pass → Jelep La.
Longitudes increase systematically from West to East across the Indian Himalayan arc.

Key Concept

Spatial distribution and longitudinal orientation of Himalayan mountain passes in India
Question 2215Question →

Arrange the following sequential stages of monetary policy transmission in India, from the initial Reserve Bank of India (RBI) policy rate action during an inflationary period to the ultimate macroeconomic impact, in the correct chronological order:

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Answer

The correct sequence begins with the RBI raising the Policy Repo Rate and CRR, followed by an immediate upward movement in the interbank Weighted Average Call Rate (WACR). Next, commercial banks transmit this policy signal by adjusting their lending rates (EBLR and MCLR). The resulting increase in overall borrowing costs leads to a moderation in private consumption and investment expenditure. Finally, reduced aggregate demand results in the deceleration of headline CPI inflation.
Monetary policy transmission follows a structured economic chain: Central Bank Policy Action → Financial Money Market Rates (WACR) → Commercial Bank Retail Rates (EBLR/MCLR) → Aggregate Demand Response (Consumption & Investment) → Macroeconomic Price Inflation.

Step-by-Step Solution

1
Identify the initial policy trigger
RBI's Monetary Policy Committee announces an increase in the Policy Repo Rate and Cash Reserve Ratio.
Monetary transmission originates at the central bank level through direct policy interest rate signals and liquidity reserve requirements.
2
Determine the money market operating rate response
The Weighted Average Call Rate (WACR) rises immediately within the LAF corridor.
WACR serves as the operating target of RBI monetary policy and responds directly to interbank liquidity conditions and policy rate changes.
3
Trace the commercial banking channel transmission
Banks reprice their lending benchmark rates (EBLR and MCLR).
Cost-of-funds changes pass through from money markets to commercial bank balance sheets, directly altering retail and corporate borrowing rates.
4
Analyze real economic demand response
Private consumption expenditure and capital investment slow down.
Higher real interest rates elevate the hurdle rate for corporate investment projects and increase debt-servicing burdens for household consumption.
5
Identify the final macroeconomic equilibrium outcome
Headline CPI inflation moderates.
The reduction in aggregate demand reduces demand-side pressure on prices, achieving the ultimate objective of monetary tightening.

Key Concept

Monetary Policy Transmission Mechanism
Question 2216Question →

With reference to the price indices published in India, consider the following statements:
1. The Wholesale Price Index (WPI) is compiled and published by the National Statistical Office (NSO).
2. The Consumer Price Index (CPI) for rural, urban, and combined sectors is released by the Office of the Economic Adviser, Ministry of Commerce and Industry.

Which of the statements given above is/are correct?

Show answer & explanation

Answer: Neither 1 nor 2

Answer

Neither 1 nor 2 is correct.
Both statements are incorrect. In India, the Wholesale Price Index (WPI) is published by the Office of the Economic Adviser (Ministry of Commerce and Industry), while the Consumer Price Index (CPI Combined) is compiled and published by the National Statistical Office (NSO, Ministry of Statistics and Programme Implementation). Therefore, the option stating 'Neither 1 nor 2' is correct.

Step-by-Step Solution

1
Evaluate Statement 1 regarding the Wholesale Price Index (WPI).
Statement 1 is incorrect.
The Wholesale Price Index (WPI) is compiled and released by the Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.
2
Evaluate Statement 2 regarding the Consumer Price Index (CPI).
Statement 2 is incorrect.
The Consumer Price Index (CPI) for Rural, Urban, and Combined sectors is compiled and released by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI).
3
Determine the correct answer based on evaluations.
Since both statements swap the responsible publishing bodies, neither statement is correct.
Both statement 1 and statement 2 present inverted facts regarding the compiling agencies.

Key Concept

Releasing agencies of Indian price indices (CPI vs WPI)
Estimated Time:45s
Question 2217Question →

In the structural evolution of official poverty estimation in India, evaluate the following statements concerning the methodology shift introduced by the Suresh Tendulkar Committee (2009):

1. The committee shifted away from anchoring poverty lines strictly to minimum calorie consumption requirements.
2. It recommended using a uniform Poverty Line Basket (PLB) derived from urban consumption patterns across both rural and urban areas.
3. It introduced the Modified Mixed Reference Period (MMRP) recall system for NSS household consumption expenditure surveys.

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. The Suresh Tendulkar Committee moved away from fixed calorie-intake norms and adopted a uniform urban consumption basket across rural and urban India. However, it utilized the Mixed Reference Period (MRP), not the Modified Mixed Reference Period (MMRP), which was instituted by the Rangarajan Committee.

Step-by-Step Solution

1
Analyze Statement 1 regarding calorie-based poverty estimation
Statement 1 is correct
Prior to Tendulkar (e.g., Task Force 1979, Lakdawala 1993), poverty lines were anchored to 2400 kcal (rural) and 2100 kcal (urban). Tendulkar decoupled the line from strict calorie norms, incorporating explicit monthly expenditure on health and education.
2
Analyze Statement 2 regarding the Poverty Line Basket (PLB)
Statement 2 is correct
The Tendulkar Committee adopted the urban consumption pattern of the 2004–05 NSS survey as the uniform reference basket (PLB) to evaluate poverty in both rural and urban areas after adjusting for spatial price variations.
3
Analyze Statement 3 regarding the recall period methodology
Statement 3 is incorrect
The Tendulkar Committee shifted from Uniform Reference Period (URP) to Mixed Reference Period (MRP - 365-day recall for 5 non-food items, 30-day for others). The Modified Mixed Reference Period (MMRP - 7-day recall for perishables) was recommended later by the C. Rangarajan Committee (2014).

Key Concept

Methodological differences between Suresh Tendulkar and C. Rangarajan Committees on poverty estimation in India
Question 2218Question →

In the operational framework of monetary policy conducted by the Reserve Bank of India (RBI), various liquidity management instruments operate at different interest rate benchmarks forming the Liquidity Adjustment Facility (LAF) corridor. Arrange the following monetary policy rates in descending order of their prevailing interest rate levels (from highest rate to lowest rate).

Drag items to arrange them in the correct order

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Answer

The correct sequence from highest to lowest interest rate is: Marginal Standing Facility (MSF) Rate, followed by Policy Repo Rate, Standing Deposit Facility (SDF) Rate, and lastly Fixed Reverse Repo Rate.
The Reserve Bank of India operates the Liquidity Adjustment Facility (LAF) corridor with the Marginal Standing Facility (MSF) Rate at the top (ceiling at Repo +25 bps+ 25\text{ bps}), the Policy Repo Rate at the middle as the primary policy rate, the Standing Deposit Facility (SDF) Rate as the operative floor (Repo −25 bps- 25\text{ bps}), and the Fixed Reverse Repo Rate at the lowest level (3.35%3.35\%). Thus, arranging them from highest to lowest yields MSF Rate →\rightarrow Policy Repo Rate →\rightarrow SDF Rate →\rightarrow Fixed Reverse Repo Rate.

Step-by-Step Solution

1
Identify the ceiling rate of the RBI's LAF corridor
Marginal Standing Facility (MSF) Rate is the penal rate at which commercial banks borrow overnight funds against SLR securities, making it the highest rate in the corridor (Repo +0.25%+ 0.25\%).
Establishing the ceiling rate anchors the upper boundary of overnight interbank borrowing costs.
2
Identify the central anchor rate of the monetary policy framework
Policy Repo Rate is the central benchmark rate at which RBI lends liquidity to banks against eligible government securities.
The repo rate serves as the benchmark around which both ceiling and floor rates are symmetrically positioned.
3
Identify the floor rate of the active LAF corridor
Standing Deposit Facility (SDF) Rate is the uncollateralized liquidity absorption rate set 25 bps25\text{ bps} below the Repo Rate (Repo −0.25%- 0.25\%).
SDF replaced the fixed reverse repo as the operative floor of the policy corridor.
4
Identify the passive/lowest liquidity rate in the framework
Fixed Reverse Repo Rate stands at 3.35%3.35\%, lower than the SDF rate.
While retained in RBI's toolkit, the fixed reverse repo rate operates below the SDF floor.

Key Concept

RBI Liquidity Adjustment Facility (LAF) Corridor Architecture
Question 2219Question →

Consider the following statements regarding a major natural vegetation type in India:

1. It represents the most widespread forest category in India, occurring in regions receiving annual rainfall between 70 cm and 100 cm.
2. The trees shed their leaves entirely during the dry spring and early summer seasons to conserve moisture.
3. Teak, Sal, Peepal, and Neem are among the dominant tree species characteristic of this forest ecosystem.

Which of the following natural vegetation types is described by the statements above?

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Answer: Tropical Dry Deciduous Forest

Answer

Tropical Dry Deciduous Forest
The statements precisely delineate Tropical Dry Deciduous Forests. This vegetation type occupies the highest area percentage among all Indian forest types, covering the rainier parts of the Peninsular plateau and the plains of Uttar Pradesh and Bihar where annual rainfall ranges between 70 cm and 100 cm. Common species include Teak, Sal, Laurel, Tenduglass, Peepal, and Neem.

Step-by-Step Solution

1
Analyze the rainfall parameter
The specified annual precipitation range of 70 cm to 100 cm marks the transition between moist deciduous forests (100–200 cm) and semi-arid thorn scrub (< 70 cm).
Rainfall threshold is the single primary determinant for classifying Indian lowland natural vegetation belts.
2
Evaluate phenological characteristics and representative flora
Leaf shedding during dry spring/early summer paired with dominant timber species such as Teak, Sal, Peepal, and Neem aligns with the dry deciduous forest zone.
Trees in dry deciduous forests adapt to seasonal moisture stress by shedding leaves during the dry period prior to the arrival of the south-west monsoon.

Key Concept

Classification and Isohyetal Boundaries of Natural Vegetation Belts in India
Estimated Time:1m 0s
Question 2220Question →

With reference to labor market indicators and skill development institutional architecture in India, consider the following statements:

1. Disguised unemployment occurs when more people are engaged in a job than required, resulting in a marginal productivity of labor that approaches zero.
2. The Worker Population Ratio (WPR) measures the percentage of employed persons relative to the total labor force rather than the total population.
3. The Scheme for Higher Education Youth in Apprenticeship and Skills (SHREYES) is aimed at providing industry apprenticeship opportunities to non-technical general degree graduates.

Which of the statements given above are correct?

Show answer & explanation

Answer: 1 and 3 only

Answer

Statements 1 and 3 are correct. Disguised unemployment features near-zero marginal labor productivity, and SHREYES targets general degree graduates for apprenticeship. Statement 2 is false as Worker Population Ratio (WPR) calculates employed persons as a percentage of the total population.
The option selecting statements 1 and 3 only is correct because disguised unemployment is defined by zero marginal productivity of labor, and SHREYES provides apprenticeship pathways for non-technical general stream graduates. Statement 2 is false because Worker Population Ratio uses total population as its denominator, not the labor force.

Step-by-Step Solution

1
Analyze Statement 1 regarding disguised unemployment
Disguised unemployment is a scenario where extra labor adds no incremental output (marginal productivity of labor ≈0\approx 0). Thus, Statement 1 is correct.
This matches the economic definition commonly observed in agrarian economies.
2
Evaluate Statement 2 regarding Worker Population Ratio (WPR)
WPR is calculated as (Employed PersonsTotal Population)×100\left(\frac{\text{Employed Persons}}{\text{Total Population}}\right) \times 100. Statement 2 incorrectly substitutes 'total labor force' into the denominator.
The ratio relative to the labor force represents the employment rate within the labor force, not WPR.
3
Evaluate Statement 3 regarding SHREYES scheme target group
SHREYES (Scheme for Higher Education Youth in Apprenticeship and Skills) specifically targets non-technical degree courses (like BA, BSc, BCom) to enhance employability via apprenticeship stipend support. Thus, Statement 3 is correct.
This aligns with the Ministry of Education initiative for non-technical graduates.

Key Concept

Worker Population Ratio (WPR), Disguised Unemployment, and SHREYES Apprenticeship Scheme
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