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Question 2221Question →

Consider the following statements regarding the revenue and capital classifications in the Union Budget of India:

1. Recovery of loans advanced by the Central Government to State Governments is categorized as a Capital Receipt.
2. Dividends and profits earned by the Central Government from Public Sector Undertakings (PSUs) are categorized as Capital Receipts.
3. Interest payments on public debt incurred by the Central Government are categorized as Revenue Expenditures.

Which of the statements given above are correct?

Show answer & explanation

Answer: 1 and 3 only

Answer

Statements 1 and 3 are correct.
Recovery of loans reduces government assets and is therefore a non-debt capital receipt. Interest payments are recurring operational charges that do not reduce debt principal or build assets, qualifying as revenue expenditure. Hence, the statement combination comprising '1 and 3 only' is correct.

Step-by-Step Solution

1
Analyze Statement 1: Recovery of loans.
Recovery of loans decreases total financial claims/assets of the Central Government.
Any transaction that creates a financial liability or reduces financial assets is classified as a Capital Receipt.
2
Analyze Statement 2: Dividends and profits from PSUs.
Dividends represent routine income from government investments without liquidating assets or incurring liabilities.
Income earned on government property and enterprises is classified as non-tax Revenue Receipts.
3
Analyze Statement 3: Interest payments on public debt.
Interest payments are regular operational expenses that do not reduce the principal debt liability.
Expenditures incurred for operational services and debt maintenance without asset creation belong to Revenue Expenditure.

Key Concept

Distinction between Revenue and Capital heads in Government Budgeting
Estimated Time:1m 15s
Question 2222Question →

Match List-I (Everyday Physical Phenomenon) with List-II (Underlying Physics Principle) and select the correct match:

Click a left item, then click its matching right item

Items

Formation of mirage in hot deserts
Spherical shape of small falling raindrops
Blue appearance of the clear daytime sky
Operation of hydraulic brakes in automobiles

Matches

Show answer & explanation

Answer

Formation of mirage matches with Total Internal Reflection; Spherical shape of raindrops matches with Surface Tension; Blue sky appearance matches with Rayleigh Scattering; Hydraulic brakes operation matches with Pascal's Law.
Each everyday phenomenon directly corresponds to its core physical law: mirages result from total internal reflection in stratified air temperatures, raindrops assume a minimal surface area sphere due to surface tension, the blue sky is produced by Rayleigh scattering of shorter light wavelengths, and hydraulic brakes transmit force via Pascal's law of fluid pressure.

Step-by-Step Solution

1
Identify the cause of desert mirages
Total Internal Reflection
Superheated air near the ground creates a steep refractive index gradient, causing light to undergo total internal reflection.
2
Identify why raindrops are spherical
Surface Tension
Surface tension forces liquid surfaces to contract into the minimal surface area configuration, which is a sphere.
3
Identify the mechanism behind the sky's blue color
Rayleigh Scattering
Rayleigh scattering intensity is inversely proportional to the fourth power of wavelength, causing shorter blue wavelengths to scatter widely.
4
Identify the principle governing hydraulic brakes
Pascal's Law
Pascal's law governs fluid pressure transmission in confined systems, allowing force amplification in hydraulic brakes.

Key Concept

Everyday Applications of Optics, Surface Phenomena, and Fluid Mechanics
Question 2223Question →

Regarding the constitutional reforms enacted during British colonial rule in India, which of the following provisions was specifically introduced by the Government of India Act of 1935?

Show answer & explanation

Answer: Abolition of dyarchy in the provinces and the introduction of provincial autonomy

Answer

Abolition of dyarchy in the provinces and the introduction of provincial autonomy
The Government of India Act of 1935 abolished the system of dyarchy in the provinces introduced by the Montagu-Chelmsford Reforms (1919) and replaced it with provincial autonomy, granting provinces an independent legal status and responsible executive government.

Step-by-Step Solution

1
Analyze the core provisions of the Government of India Act of 1935 regarding provincial governance.
The 1935 Act marked a significant shift by granting autonomy to the provinces, ending the dual system of governance (dyarchy) introduced earlier in the provinces.
Provincial autonomy allowed Indian ministers responsible to elected provincial legislatures to manage provincial administration.
2
Distinguish 1935 provisions from earlier acts like the 1919 Montagu-Chelmsford Reforms.
Dyarchy in provinces was introduced in 1919 and abolished in 1935. The 1935 Act proposed dyarchy at the Centre instead.
Confusing the introduction versus abolition of dyarchy across the 1919 and 1935 Acts is a common misattribution in constitutional history.

Key Concept

Provisions of the Government of India Act 1935
Estimated Time:1m 0s
Question 2224Question →

Consider the following transactions occurring within the external sector of an economy:

1. External Commercial Borrowings (ECBs) raised by domestic private corporations from international markets.
2. Private remittances received from non-resident workers residing overseas.
3. Foreign Portfolio Investment (FPI) equity inflows into domestic listed companies.
4. Investment income payouts made to foreign investors in the form of dividends.

Which of the statements given above correctly identify transactions categorized under the Capital Account of the Balance of Payments?

Show answer & explanation

Answer: 1 and 3 only

Answer

1 and 3 only
The correct answer identifies External Commercial Borrowings (ECBs) and Foreign Portfolio Investment (FPI) as the only Capital Account entries among the choices. In Balance of Payments accounting, the Capital Account records foreign borrowings, foreign investments, and loan transactions that result in changes to a country's external financial assets and liabilities.

Step-by-Step Solution

1
Define the fundamental distinction between Balance of Payments (BoP) Current Account and Capital Account items.
Current Account records transactions of goods, services, primary income (dividends, interest), and secondary income (transfers/remittances). Capital Account records foreign financial asset and liability transactions (FDI, FPI, loans/ECBs, banking capital).
Classification relies on whether the transaction alters foreign asset or liability positions.
2
Evaluate statements 1 and 3.
Statement 1 (ECBs) and Statement 3 (FPI) both involve foreign debt and equity capital flows, altering net debt and equity obligations to non-residents.
Borrowings and portfolio investments directly affect national capital liabilities/assets.
3
Evaluate statements 2 and 4.
Statement 2 (private worker remittances) is classified as secondary income (unilateral current transfers). Statement 4 (dividend payments) is classified as primary income on foreign investment. Both are Current Account transactions.
Income servicing and unrequited transfers do not constitute capital transactions.
4
Select the option containing only Capital Account transactions.
Only statements 1 and 3 are Capital Account transactions.
Statements 2 and 4 belong to the Current Account.

Key Concept

Classification of Balance of Payments (BoP) transactions into Current Account vs. Capital Account components
Estimated Time:1m 30s
Question 2225Question →

Arrange the following key structural policy milestones in India's exchange rate and external trade sector reforms in chronological order from earliest to latest:

Drag items to arrange them in the correct order

Show answer & explanation

Answer

The correct chronological order is: Two-stage devaluation of the Indian Rupee (July 1991) → Introduction of the Liberalized Exchange Rate Management System (LERMS) (March 1992) → Full convertibility of the Indian Rupee on the Current Account (August 1994) → Submission of the first Tarapore Committee Report on Capital Account Convertibility (May 1997) → Passage of the Foreign Exchange Management Act (FEMA) by Parliament (December 1999).
The sequence correctly reflects the economic progression of India's external sector reforms: emergency devaluation in July 1991, dual exchange rate under LERMS in March 1992, IMF Article VIII current account convertibility in August 1994, Tarapore Committee report on capital account convertibility in May 1997, and FEMA passage in December 1999.

Step-by-Step Solution

1
Determine the date of emergency exchange rate adjustments during the crisis.
The two-stage devaluation of the Rupee occurred on July 1 and July 3, 1991.
This was an immediate stabilization measure undertaken to halt foreign exchange reserve depletion.
2
Trace the transition from fixed/managed rates to current account convertibility.
LERMS was introduced in March 1992 (creating a 40:60 dual exchange rate structure), followed by official full current account convertibility under IMF Article VIII in August 1994.
LERMS served as a transitional step toward exchange rate unification (March 1993) and eventual current account convertibility.
3
Establish the chronology for capital account reforms and regulatory replacement.
The S.S. Tarapore Committee on Capital Account Convertibility submitted its first report in May 1997, and Parliament passed FEMA in December 1999.
The exploration of capital account openness preceded the legislative replacement of FERA with FEMA.

Key Concept

Chronological evolution of India's exchange rate policy, convertibility framework, and external sector legislation.
Question 2226Question →

Consider the following statements regarding Public Interest Litigation (PIL) in the Indian judicial system:

1. The traditional rule of *locus standi*, which mandates that only an aggrieved person whose legal right is infringed can move the court, is relaxed in PIL cases.
2. PIL can be filed against a purely private entity for private contractual disputes without any state involvement or public duty element.
3. The Supreme Court of India can entertain informal letters or postcards sent by public-spirited citizens as writ petitions under its epistolary jurisdiction.

Which of the statements given above is/are correct?

Show answer & explanation

Answer: 1 and 3 only

Answer

1 and 3 only
Statements 1 and 3 are correct. The core innovation of Public Interest Litigation (PIL) in India lies in relaxing the traditional rule of *locus standi*, enabling third parties to represent disadvantaged sections of society. Additionally, under the Supreme Court's epistolary jurisdiction (developed by Justice P.N. Bhagwati and Justice V.R. Krishna Iyer), informal letters written to the court can be treated as writ petitions. Statement 2 is incorrect because PILs are directed against public bodies or entities discharging public duties and cannot be filed for private personal disputes.

Step-by-Step Solution

1
Analyze Statement 1 regarding locus standi.
Statement 1 is correct.
In traditional litigation, only the person whose rights are directly violated can approach the court. PIL departs from this by allowing any public-spirited citizen or organisation to file a petition on behalf of marginalized individuals who cannot access justice.
2
Analyze Statement 2 regarding maintainability against private entities.
Statement 2 is incorrect.
PIL is designed to enforce fundamental rights, statutory obligations, and public duties against the State (Article 12) or agencies performing public functions. It cannot be invoked for private legal grievances or private contractual enforcement.
3
Analyze Statement 3 regarding epistolary jurisdiction.
Statement 3 is correct.
Through epistolary jurisdiction, the Supreme Court converts simple letters, postcards, or telegrams highlighting social injustices into formal writ petitions under Article 32.

Key Concept

Public Interest Litigation (PIL), Epistolary Jurisdiction, and Locus Standi
Estimated Time:1m 0s
Question 2227Question →

With reference to the architectural traditions and features of temples constructed during the Vijayanagara Empire, consider the following statements:

1. The addition of elaborate 'Kalyana Mandapas' (marriage halls) containing intricately carved monolithic pillars became a prominent structural feature of temple complexes.
2. The rearing horse (Yali motif) was a characteristic sculptural element depicted on the pillar bases of mandapas.
3. Vijayanagara builders completely abandoned the Dravidian tradition of erecting towering entrance gateways (Raya Gopurams).

Which of the statements given above are correct?

Show answer & explanation

Answer: 1 and 2 only

Answer

The correct combination is '1 and 2 only' because Vijayanagara temple architecture built upon Dravida styles by incorporating elaborate Kalyana Mandapas and rearing Yali pillars, while further grandly developing towering Raya Gopurams rather than discarding them.
The correct choice highlights statements 1 and 2 as accurate. Vijayanagara temple design is celebrated for its highly ornate multi-pillared halls (Kalyana Mandapa) and signature equestrian/Yali pillar sculptures. It extended rather than discontinued the Dravidian gopuram tradition.

Step-by-Step Solution

1
Evaluate Statement 1 regarding Kalyana Mandapas
Statement 1 is correct. Vijayanagara architecture introduced large open/enclosed pillared halls, notably the Kalyana Mandapa (divine marriage hall) and Amman shrines within temple enclosures.
Expanding ceremonial ritual spaces was a core architectural innovation of the Vijayanagara period.
2
Evaluate Statement 2 regarding pillar motifs
Statement 2 is correct. Pillars in Vijayanagara temples are famous for monolithic carvings of rearing horses with riders and mythological Yali creatures.
The motif reflected the military prominence and cavalry importance of the Vijayanagara state.
3
Evaluate Statement 3 regarding entrance gateways
Statement 3 is incorrect. Vijayanagara rulers constructed grand, towering entrance gateways known as 'Raya Gopurams' (e.g., at Hampi, Chidambaram, and Tirupati).
Raya Gopurams were enhanced continuations of Tamil Dravidian gateway traditions, serving as visual symbols of royal authority.

Key Concept

Vijayanagara Architectural Style and Features
Question 2228Question →

Which of the following statements regarding the constitutional provisions and operational safeguards of Constitutional Bodies in India are correct?

Select all that apply

Show answer & explanation

Answer: The administrative expenses of the Union Public Service Commission, including all salaries, allowances, and pensions of its members and staff, are charged upon the Consolidated Fund of India.; The Finance Commission is a quasi-judicial constitutional body constituted by the President of India at the expiration of every fifth year or earlier.

Answer

The statements confirming that the administrative expenses of the Union Public Service Commission are charged upon the Consolidated Fund of India and that the Finance Commission is constituted every fifth year by the President under Article 280 are correct.
The statement regarding the Union Public Service Commission is accurate because Article 322 charges its administrative expenses directly to the Consolidated Fund of India, rendering them non-votable. The statement regarding the Finance Commission is also accurate because Article 280 mandates its constitution by the President every five years or earlier to govern financial devolution.

Step-by-Step Solution

1
Analyze the financial independence provisions of the Union Public Service Commission.
Article 322 specifies that expenses of the Union Public Service Commission are charged on the Consolidated Fund of India.
Charging expenses on the Consolidated Fund ensures immunity from annual parliamentary vote and secures functional autonomy.
2
Evaluate the removal mechanism for the Comptroller and Auditor General of India.
Removal requires a special majority in both Houses of Parliament, identical to a Supreme Court judge.
A simple majority resolution is insufficient to remove the Comptroller and Auditor General.
3
Verify the constitutional mandate and periodic constitution of the Finance Commission.
Article 280 empowers the President to establish the Finance Commission every five years or earlier.
This requirement maintains a regular mechanism for fiscal federalism and tax devolution.
4
Examine the age limit prescribed for Election Commissioners.
The age limit for Election Commissioners is sixty-five years, not sixty-two years.
The sixty-two-year threshold applies to State Public Service Commission members.

Key Concept

Constitutional Safeguards and Mandates of Independent Bodies in India
Question 2229Question →

In human geography and population studies, land-resource pressure is analyzed using various density indicators. Which of the following metrics specifically measures the ratio of the agricultural population to the net cultivated area?

Show answer & explanation

Answer: Agricultural density

Answer

Agricultural density is the metric that calculates the ratio of the total agricultural population to the net cultivated land area.
Agricultural density measures rural agrarian pressure by assessing how many agricultural workers (cultivators and laborers) rely on each unit of net cultivated land.

Step-by-Step Solution

1
Identify the numerator and denominator specified in the prompt
Numerator is the agricultural population; denominator is the net cultivated area.
Different population density measures vary by which population subset and land types are compared.
2
Differentiate between population density measures
Agricultural density strictly compares agricultural workers to arable/net cultivated land.
Physiological density uses total population over net cultivated area, whereas arithmetic density uses total population over total surface area.

Key Concept

Demographic Density Measures in Human Geography
Question 2230Question →

In external sector accounting, a Non-Resident Indian (NRI) deposits funds into a Non-Resident External (NRE) bank account maintained with a commercial bank in India. Under India's Balance of Payments (BoP) framework, how is this financial inflow classified?

Show answer & explanation

Answer: As a credit entry under Banking Capital within the Capital Account

Answer

NRI deposits into NRE account schemes are recorded as credit entries under Banking Capital within the Capital Account of India's Balance of Payments.
The correct answer highlights that NRE bank deposits represent repayable debt liabilities managed by the commercial banking system. In Balance of Payments accounting, all cross-border financial flows that change foreign asset or liability positions are recorded under the Capital Account, specifically under the 'Banking Capital' sub-component.

Step-by-Step Solution

1
Identify the economic nature of Non-Resident External (NRE) deposit accounts
NRE accounts represent foreign currency debt liabilities owed by Indian commercial banks to non-residents.
Because funds in deposit accounts are repayable to the account holder upon request, they create financial claims and liabilities across international borders.
2
Distinguish between Current Account and Capital Account transactions in Balance of Payments
Current Account records trade in goods, services, primary income, and secondary transfers. Capital Account records transactions altering external financial assets and liabilities.
Deposit balances represent cross-border debt liabilities rather than unrequited transfers or trade in services.
3
Classify the transaction under the specific BoP capital head
Cross-border banking liabilities are categorized under Banking Capital inside the Capital Account.
Commercial banking channels handling foreign deposit schemes fall under Banking Capital, distinct from FDI, FPI, or External Commercial Borrowings (ECB).

Key Concept

Classification of Banking Capital and NRI Deposits in Balance of Payments Accounting
Question 2231Question →

Match List-I (Early INC Session and Venue) with List-II (Key Historical Significance / Milestone) associated with the early phase of the Indian National Congress.

Click a left item, then click its matching right item

Items

1887 Session (Madras)
1888 Session (Allahabad)
1896 Session (Calcutta)
1899 Session (Lucknow)

Matches

Show answer & explanation

Answer

1887 Session (Madras) matches with Badruddin Tyabji being the first Muslim President; 1888 Session (Allahabad) matches with George Yule being the first European President; 1896 Session (Calcutta) matches with the first recitation of 'Vande Mataram'; and 1899 Session (Lucknow) matches with R. C. Dutt's demand for permanent land revenue fixation.
Each early INC session marked pivotal milestones: 1887 (Madras) introduced the first Muslim President Badruddin Tyabji; 1888 (Allahabad) elected George Yule as the first European President; 1896 (Calcutta) featured the first singing of 'Vande Mataram'; and 1899 (Lucknow) focused on agrarian reforms under Romesh Chunder Dutt.

Step-by-Step Solution

1
Identify the leadership and significance of the 1887 Madras and 1888 Allahabad sessions.
The 1887 Madras session was presided over by Badruddin Tyabji (first Muslim president), and the 1888 Allahabad session was presided over by George Yule (first British/European president).
These early sessions established the inclusive, non-sectarian national character of the Indian National Congress across different communities and backgrounds.
2
Identify the key highlight of the 1896 Calcutta session.
The 1896 Calcutta session, chaired by Rahimtullah M. Sayani, was historic for the first singing of 'Vande Mataram'.
Rabindranath Tagore sang Bankim Chandra Chattopadhyay's hymn 'Vande Mataram' for the first time at an official Congress session.
3
Identify the key highlight of the 1899 Lucknow session.
The 1899 Lucknow session was chaired by Romesh Chunder Dutt, where the Congress focused heavily on the economic critique of land revenue systems.
R. C. Dutt advocated strongly for fixed land taxation to prevent peasant impoverishment and recurrent famines.

Key Concept

Early INC Sessions, Presidents, and Key Historical Resolutions (1885–1905)
Question 2232Question →

Consider the following statements regarding the physiographic characteristics of the Indian coastal plains:

1. The Western Coastal Plain is narrower than the Eastern Coastal Plain and features submerged coastal conditions favorable for the development of natural ports.
2. Backwaters, locally known as 'Kayals', are distinct physiographic features found along the Malabar Coast of the Western Coastal Plain.
3. The Eastern Coastal Plain is predominantly a submerged coast that lacks significant deltaic landforms.

Which of the statements given above are correct?

Show answer & explanation

Answer: 1 and 2 only

Answer

Statements 1 and 2 are correct. The Western Coastal Plain is a narrow, submerged plain providing natural harbor conditions and features backwaters ('Kayals') in Kerala, whereas the Eastern Coastal Plain is wider, emergent, and marked by large prograding river deltas.
The Western Coastal Plain is a narrow, submerged coastline created by faulting, which makes it ideal for natural ports and harbors. The Malabar section of this plain in Kerala is famous for its unique backwaters known locally as 'Kayals'. In contrast, the Eastern Coastal Plain is an emergent, broader coastal plain where major rivers (Mahanadi, Godavari, Krishna, Kaveri) form extensive deltas before draining into the Bay of Bengal.

Step-by-Step Solution

1
Evaluate Statement 1 regarding Western Coastal Plain structure.
Statement 1 is true. The Western Coastal Plain is a submerged coast (except for the Malabar section in parts), making it narrow and providing deep natural indentation for ports like Mumbai and Marmagao.
Geological faulting and subsidence led to the submergence of the western margin.
2
Evaluate Statement 2 regarding Malabar Coast features.
Statement 2 is true. The backwaters or lagoonal lakes in Kerala along the Malabar Coast are called 'Kayals' (e.g., Vembanad Lake).
Kayals are key physiographic features used for inland navigation, fishing, and tourism in the Malabar region.
3
Evaluate Statement 3 regarding Eastern Coastal Plain structure.
Statement 3 is false. The Eastern Coastal Plain is an emergent coast (isostatic uplift/sedimentation) characterized by broad continental shelves and extensive deltas formed by the Mahanadi, Godavari, Krishna, and Kaveri rivers.
Emergent coastal dynamics combined with east-flowing rivers foster wide deltaic deposition rather than lack of deltas.

Key Concept

Physiographic and structural differences between the Western and Eastern Coastal Plains of India
Question 2233Question →

Match the types of inflation listed in List-I with their corresponding macroeconomic descriptions in List-II.

Click a left item, then click its matching right item

Items

Headline Inflation
Core Inflation
Stagflation
Bottleneck Inflation

Matches

Show answer & explanation

Answer

Headline Inflation matches the total inflation figure including food and fuel; Core Inflation matches the measure excluding volatile food and fuel prices; Stagflation matches stagnant economic growth combined with high inflation and unemployment; Bottleneck Inflation matches price rises caused by supply-side disruptions.
Each inflation type is correctly aligned with its economic definition: Headline Inflation captures the total price level including food and energy; Core Inflation excludes volatile food and energy components; Stagflation merges economic stagnation with rising prices; and Bottleneck Inflation stems directly from supply disruptions.

Step-by-Step Solution

1
Differentiate between Headline and Core Inflation
Headline Inflation measures price changes in the entire consumer basket including food/fuel, whereas Core Inflation removes volatile food and energy prices.
Recognizing the basket composition distinction is essential for macroeconomic measurement.
2
Analyze Stagflation and Bottleneck Inflation concepts
Stagflation combines economic stagnation with inflation, while Bottleneck Inflation arises specifically from supply chain bottlenecks.
Identifying structural inflation drivers versus macroeconomic stagnation scenarios ensures accurate matching.

Key Concept

Types of inflation and their underlying economic mechanisms
Question 2234Question →

With reference to inflation dynamics and price indices in India, consider the following statements:

1. The Wholesale Price Index (WPI), released by the Office of Economic Adviser under the Ministry of Commerce and Industry, completely excludes services and assigns the highest weightage to Manufactured Products.
2. In the Consumer Price Index (CPI-Combined) compiled by the National Statistical Office (NSO), the 'Food and Beverages' group accounts for a weightage exceeding 45%, which is substantially higher than the food weightage in WPI.
3. Core Inflation measures underlying long-term price trends by excluding volatile components such as food and fuel items from Headline Inflation.
4. An increase in the Cash Reserve Ratio (CRR) by the Reserve Bank of India increases commercial bank liquidity, thereby accelerating demand-pull inflation in the short run.

Which of the statements given above are correct?

Show answer & explanation

Answer: 1, 2 and 3 only

Answer

The correct combination of statements is 1, 2 and 3 only.
The combination listing statements 1, 2 and 3 only is correct because WPI is compiled by the Office of Economic Adviser without service sector inclusion, CPI-Combined assigns 45.86% weight to Food and Beverages, and Core Inflation measures price changes excluding food and energy. Statement 4 is false because raising the Cash Reserve Ratio sucks liquidity out of the banking sector, mitigating rather than accelerating inflation.

Step-by-Step Solution

1
Evaluate Statement 1 regarding Wholesale Price Index (WPI) characteristics.
Statement 1 is correct. WPI is published by the Office of Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry. It tracks bulk transactions at the wholesale level, completely excludes services, and assigns the largest weight (~64.2%) to Manufactured Products.
Understanding publishing agencies and index basket compositions is essential for evaluating macro price indicators.
2
Evaluate Statement 2 regarding Consumer Price Index (CPI) weightages.
Statement 2 is correct. CPI-Combined (base year 2012=100) is published by NSO (MoSPI). 'Food and Beverages' carries a weight of 45.86% in CPI-Combined, whereas food items carry a significantly lower weight in the WPI basket (~24.4% combined).
CPI measures retail price changes directly impacting households, hence food carries a higher weight than in wholesale indices.
3
Evaluate Statement 3 regarding Core Inflation definition.
Statement 3 is correct. Core Inflation strips out food and fuel/energy groups because of their seasonal and temporary price shocks, capturing the steady macroeconomic inflation baseline.
Distinguishing headline inflation from core inflation helps central banks assess non-transitory price pressures.
4
Evaluate Statement 4 regarding Quantitative Monetary Policy tools.
Statement 4 is incorrect. Increasing the Cash Reserve Ratio (CRR) mandates commercial banks to deposit a larger fraction of their NDTL with the RBI without interest. This reduces available lendable liquidity in the banking system, curbing money supply and checking demand-pull inflation.
An increase in CRR acts as a contractionary monetary tool, dampening liquidity rather than expanding it.

Key Concept

Structural differences between CPI and WPI indices, Core Inflation definition, and central bank monetary policy tools.
Estimated Time:2m 0s
Question 2235Question →

Match the following flagship social welfare schemes of the Government of India with their respective primary target beneficiary groups:

Click a left item, then click its matching right item

Items

Pradhan Mantri Matru Vandana Yojana (PMMVY)
PM-KISAN (Pradhan Mantri Kisan Samman Nidhi)
Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM)
PM POSHAN (formerly Mid-Day Meal Scheme)

Matches

Show answer & explanation

Answer

Pradhan Mantri Matru Vandana Yojana matches with Pregnant women and lactating mothers; PM-KISAN matches with Landholding farmer families; Pradhan Mantri Shram Yogi Maan-dhan matches with Unorganized sector workers aged 18 to 40 years; PM POSHAN matches with Schoolchildren in government and government-aided primary classes.
Each scheme correctly matches its defined target group: PMMVY supports pregnant women and lactating mothers, PM-KISAN supports landholding farmer families, PM-SYM provides social security pensions for unorganized sector workers, and PM POSHAN ensures nutritional meal support for school children.

Step-by-Step Solution

1
Identify the target beneficiary for Pradhan Mantri Matru Vandana Yojana (PMMVY).
PMMVY provides cash incentives to pregnant women and lactating mothers for improved health and nutrition.
This establishes the correct pairing for PMMVY.
2
Identify the target beneficiary for PM-KISAN.
PM-KISAN targets landholding farmer families to supplement their financial needs for agricultural inputs and domestic requirements.
This establishes the correct pairing for PM-KISAN.
3
Identify the target beneficiary for Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM).
PM-SYM targets unorganized workers (such as street vendors, rickshaw pullers, construction workers) in the entry age bracket of 18 to 40 years.
This establishes the correct pairing for PM-SYM.
4
Identify the target beneficiary for PM POSHAN.
PM POSHAN covers eligible school-going children in primary and upper primary classes to improve enrollment and nutritional status.
This establishes the correct pairing for PM POSHAN.

Key Concept

Primary Beneficiary Target Groups of Key Indian Social Welfare Schemes
Question 2236Question →

Match the Expert Committees on Poverty Estimation in India (List-I) with their primary methodological features or recommendations (List-II):

Click a left item, then click its matching right item

Items

Y.K. Alagh Task Force (1979)
D.T. Lakdawala Expert Group (1993)
Suresh Tendulkar Committee (2009)
C. Rangarajan Expert Group (2014)

Matches

Show answer & explanation

Answer

The correct matches are: Y.K. Alagh Task Force (1979) matches with per capita daily calorie norms (2400 kcal rural / 2100 kcal urban); D.T. Lakdawala Expert Group (1993) matches with state-specific poverty lines using CPI-AL and CPI-IW; Suresh Tendulkar Committee (2009) matches with uniform Poverty Line Basket and Mixed Reference Period (MRP); and C. Rangarajan Expert Group (2014) matches with normative nutritional/non-food requirements using Modified Mixed Reference Period (MMRP).
Each expert committee corresponds to its historical methodological milestone in Indian poverty estimation: Y.K. Alagh (1979) established daily calorie thresholds (2400/2100 kcal); D.T. Lakdawala (1993) introduced state-specific price indexation via CPI-AL and CPI-IW; Suresh Tendulkar (2009) instituted a uniform Poverty Line Basket and Mixed Reference Period (MRP); and C. Rangarajan (2014) introduced a multi-nutrient normative framework using Modified Mixed Reference Period (MMRP).

Step-by-Step Solution

1
Identify the foundational methodology of the Y.K. Alagh Task Force (1979).
The Alagh Task Force anchored poverty directly to minimum daily calorie requirements (2400 kcal2400\text{ kcal} rural and 2100 kcal2100\text{ kcal} urban).
This established the calorie consumption paradigm for official Indian poverty line estimations.
2
Determine the inflation adjustment mechanism introduced by the D.T. Lakdawala Committee (1993).
The Lakdawala Committee adopted state-specific cost of living indices: CPI-AL for rural poverty and CPI-IW for urban poverty.
State-level variations in price indices were necessary to reflect real regional purchasing power.
3
Analyze the methodology shift under the Suresh Tendulkar Committee (2009).
Tendulkar discontinued calorie-only anchoring, adopted a uniform urban Poverty Line Basket (PLB), and shifted to Mixed Reference Period (MRP) recall data.
MRP accounted for 365-day recall on 5 infrequently purchased non-food item categories.
4
Evaluate the refinements made by the C. Rangarajan Expert Group (2014).
Rangarajan introduced comprehensive nutritional norms (calories, protein, fat) plus non-food normative requirements, utilizing Modified Mixed Reference Period (MMRP).
MMRP collects 7-day recall data for perishables, 30-day for general items, and 365-day for low-frequency expenses.

Key Concept

Evolution of Poverty Estimation Methodology in India
Estimated Time:1m 30s
Question 2237Question →

When the Reserve Bank of India (RBI) conducts an Open Market Operation (OMO) sale of Government Securities while simultaneously raising the Marginal Standing Facility (MSF) rate, which of the following best describes the resulting combined impact on system liquidity, bond yields, and short-term interest rates?

Show answer & explanation

Answer: System liquidity contracts, bond yields rise (bond prices fall), and short-term money market interest rates increase.

Answer

System liquidity contracts, bond yields rise (bond prices fall), and short-term money market interest rates increase.
An OMO sale by the RBI absorbs excess liquidity from commercial banks as banks pay cash to buy government securities. The influx of securities into the market lowers bond prices and pushes bond yields up. Concurrently, raising the MSF rate elevates the upper bound of the Liquidity Adjustment Facility (LAF) corridor, making short-term money market borrowing more expensive.

Step-by-Step Solution

1
Analyze the impact of an OMO sale of Government Securities by the RBI.
When the RBI sells G-Secs to commercial banks, funds flow from banks to the RBI, absorbing primary liquidity from the banking system and reducing excess reserves.
Open Market Operation sales directly withdraw durable rupee liquidity from commercial bank balance sheets.
2
Evaluate the effect of G-Sec sales on bond prices and bond yields.
An increased supply of G-Secs in the secondary market depresses bond prices, which causes market bond yields to rise (Yield=CouponPriceYield = \frac{Coupon}{Price}).
Bond prices and yields move in opposite directions; higher market supply lowers prices and increases yields.
3
Analyze the impact of raising the Marginal Standing Facility (MSF) rate.
Raising the MSF rate shifts the upper ceiling of the LAF corridor upward, making emergency overnight borrowing costlier for commercial banks and driving up short-term money market rates (e.g., Weighted Average Call Rate).
The MSF rate acts as the upper ceiling for short-term interbank liquidity costs.

Key Concept

Impact of Quantitative Monetary Tools on Liquidity, Bond Yields, and Interest Rate Corridors
Estimated Time:1m 30s
Question 2238Question →

The apparent twinkling of stars when observed from the surface of the Earth during nighttime is primarily caused by which of the following optical phenomena?

Show answer & explanation

Answer: Atmospheric refraction of starlight due to varying refractive indices of air layers

Answer

Atmospheric refraction of starlight due to varying refractive indices of air layers
As starlight passes through the Earth's atmosphere, it encounters continuously changing air temperatures and densities, causing the light rays to continuously refract (bend). Because stars act as point sources of light from immense distances, these rapid fluctuations in light paths cause the apparent position and brightness of the star to fluctuate, creating the twinkling effect.

Step-by-Step Solution

1
Identify the cause of density variations in the Earth's atmosphere
Air temperature and density fluctuate continuously across different atmospheric layers, leading to fluctuating refractive indices.
Light travels at slightly different speeds through air of varying density and temperature.
2
Analyze how starlight behaves as it enters and travels through these fluctuating layers
The path of starlight undergoes continuous refractive bending as it travels toward the observer.
Continuous change in refractive index causes atmospheric refraction.
3
Relate the refractive bending to the visual observation from Earth
The apparent position and brightness of the point-source star fluctuate rapidly, producing the twinkling effect.
Because stars are distant point sources, small variations in light path noticeably shift light intensity reaching the eye.

Key Concept

Atmospheric Refraction
Question 2239Question →

Which of the following statements regarding the structural provisions and eligibility criteria of the Pradhan Mantri Matru Vandana Yojana (PMMVY) are correct?

Select all that apply

Show answer & explanation

Answer: It is a Direct Benefit Transfer (DBT) maternity scheme implemented by the Ministry of Women and Child Development under the Samarthya sub-scheme of Mission Shakti.; The scheme provides a conditional financial assistance incentive of ₹6,000 for the birth of a second child, provided the child born is female.

Answer

The correct statements are that PMMVY is implemented under the Samarthya sub-scheme of Mission Shakti by the Ministry of Women and Child Development, and that it provides an incentive of ₹6,000 for a second child if that child is a girl.
The statements confirming that PMMVY is implemented under the Samarthya sub-scheme of Mission Shakti and that a specific incentive of ₹6,000 is given for a second female child are accurate. PMMVY seeks to compensate for wage loss during pregnancy and lactation while promoting positive social behavior towards girl children.

Step-by-Step Solution

1
Analyze the administrative nodal ministry and umbrella scheme framework for PMMVY.
PMMVY is indeed a Direct Benefit Transfer scheme administered by the Ministry of Women and Child Development under Mission Shakti (Samarthya sub-scheme).
Verifies the institutional architecture of the maternity benefit initiative.
2
Evaluate the exclusion criteria for formal and government sector employees.
Women in regular public employment or receiving statutory benefits under the ESI Act or Maternity Benefit Act are excluded.
Prevents double-dipping and targets social assistance toward vulnerable and unorganized sector mothers.
3
Examine the differential benefit payout structure for the first and second child.
The scheme offers ₹5,000 for the first child in two installments, and an additional ₹6,000 for the second child strictly if the child is a girl.
Aligns financial incentives with demographic goals to improve the child sex ratio at birth.

Key Concept

Pradhan Mantri Matru Vandana Yojana (PMMVY) scheme architecture, targeted conditional assistance, and exclusion parameters
Question 2240Question →

Regarding the constitutional provisions governing the distribution of revenues and taxation powers between the Union and the States in India, which of the following statements are correct?

Select all that apply

Show answer & explanation

Answer: Stamp duties on bills of exchange and promissory notes are levied by the Union government but collected and appropriated by the States.; Surcharges levied by Parliament for Union purposes under Article 271 do not form part of the divisible pool of taxes shared with States.

Answer

The correct statements are that stamp duties on negotiable instruments are levied by the Union but collected and appropriated by the States, and that surcharges levied under Article 271 for Union purposes do not form part of the divisible tax pool shared with States.
The statements confirming that stamp duties on negotiable instruments are levied by the Union but collected/appropriated by States (Article 268) and that Union surcharges under Article 271 are excluded from the divisible pool are accurate under Indian constitutional fiscal federalism.

Step-by-Step Solution

1
Examine the constitutional framework for duties levied by the Union but collected by States under Article 268.
Confirm that stamp duties on bills of exchange, cheques, and promissory notes are levied by the Union government but collected and appropriated by the States.
Article 268 explicitly outlines duties levied by the Union but collected and assigned to the States.
2
Analyze the levying authority and mechanism for Goods and Services Tax on inter-State supply under Article 269A.
Identify that IGST is levied and collected by the Government of India (Union) and then apportioned between the Union and States, contradicting the claim that States levy and retain it directly.
Article 269A establishes central administration for inter-State GST to ensure single-window compliance and structured revenue distribution.
3
Verify the composition of the divisible pool of taxes under Articles 270 and 271.
Confirm that surcharges under Article 271 are earmarked for Union purposes and excluded from devolution, while Corporation tax is included in the divisible pool under Article 270.
Since the 80th Amendment Act, all central taxes (including Corporation tax) except cesses and surcharges form part of the divisible pool.

Key Concept

Constitutional provisions for distribution of tax revenues between the Union and States (Articles 268, 269A, 270, and 271)
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