07 March 2023

Q1. Consider the following statements:

1. The eastward flow of the equatorial counter-current is due to the convergence of the north and south equatorial currents.

2. The equatorial counter-current of the Indian Ocean flows only south of the equator.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

ANS-C

Explanation:

• Equatorial counter-current, current phenomenon noted near the equator,an eastward flow of oceanic water in opposition to and flanked by the westward equatorial currents of the Atlantic, Pacific, and Indian oceans.
• Lying primarily betweenlatitude 3° and 10° N, the counter-currents shift south during the northern winter andnorth during the summer.
• To either side the trade winds blow constantly and push greatvolumes of water westward in the equatorial currents, raising the sea level in the west.
• Within the doldrums, where strong constant winds are absent, the higher western sealevels flow downslope to the east.
• The Pacific Equatorial Countercurrent is very strongand is definable year-round.
• The Atlantic Equatorial Countercurrent is strongest off thecoast of Ghana (Africa), where it is known as the Guinea Current.
• The countercurrent ofthe Indian Ocean flows only during the northern winter and only south of the equator.

Q2. If you want to see the ‘Edible Nest Swiftlet’ in its natural habitat in India, which one of the following is the best place to visit?

(a) Limestone caves of Andaman Islands

(b) Terai belt of the Ganges

(c) Tropical wet evergreen forests of North East

(d) Hot sand desert of Thar

ANS-A

 Explanation:

• This tiny brownish bird lives in the limestone caves of Andaman.
• Nestingdeep within caves and poorly lit areas, the Swiftlets use echolocation for navigation with
• sound waves as they bounce off the surface.
• The Swiftlets tend to choose their nestinglocation primarily to escape their natural predators.
• The nest, which is built out of thebird’s saliva solidifies into a 6cm long 1.5cm deep dish-like structure which eventuallyholds two eggs.
• Each pair of Swiftlets spit about 10gm of saliva to build the nest.
• Thesalivary glands enlarge during the nest-building process.
• When exposed to sunlight, thewhite nest gets a golden hue. It is listed in Species Recovery Programme.

Q3. NABARD is implementing the ‘Dairy entrepreneurship development scheme’ (DEDS).What is/are the overall objective of the scheme?

1. To bring a second white revolution in the country by 2022
2. To bring structural changes in the organised sector so that initial processing of milk can be taken up at the village level itself
3. To generate self-employment and provide infrastructure mainly for unorganised sector

Select the correct answer using the codes given below:

(a) 2and 3 only

(b) 1and 2 only

(c) 3 only

(d) 1, 2 and 3

ANS-A

 Explanation:

Objective of the Dairy entrepreneurship development scheme’ (DEDS):

• To promote setting up of modern dairy farms for production of clean milk
• To encourage heifer calf rearing, thereby conserving good breeding stock
• To bring structural changes in the unorganised sector so that initial processing of milk can be taken up at the village level itself
• To upgrade the quality and traditional technology to handle milk on a commercial scale
• To generate self-employment and provide infrastructure mainly for unorganised sector.
• Hence statement 1 is incorrect.
• Statements 2 and 3 are correct.

Q4. Which one of the following is not correct regarding Ayushman Bharat Pradhan Mantri Jan Arogya Mission?

(a) The scheme is non-portable in nature and beneficiaries can access to empanelled healthcare provider only in state/UT of residence

(b) The Scheme does not place any cap on age and size of a family

(c) Households under the scheme are included on the basis of deprivation criteria from the Socio-Economic Caste Census 2011 for rural areas

(d) Households under the scheme are included on the basis of occupational criteria from the Socio-Economic Caste Census 2011 for urban areas

ANS-A

Explanation:

• Scheme provides for healthcare of up to INR 5 lakh per family per year ona family floater basis, whichmeans that it can be used by one or all members of thefamily.
• It provides for secondary and tertiary hospitalization through a network of public and empanelledprivate healthcare providers.

• It also provides for three days of pre-hospitalization and 15 days of posthospitalization expenses,places no cap on age and gender, orsize provides forsecondary and tertiary hospitalization through a network of public andempanelledprivate of a family and is portable acrossthe country.
• Hence option A isincorrect while option B is correct.
• Beneficiaries includes approximately50 crore individuals across 10.74 crores poor andvulnerable families,which form the bottom 40% of the Indian population.
• The households included are based onthe deprivation and occupationalcriteria from the Socio-EconomicCaste Census 2011 (SECC 2011) forrural and urban areas respectively. Hence options C and D are correct.
• AB-PM-JAY also aims to set up150,000 health and wellness centres to providecomprehensive primaryhealth care service to the entire population.

Q5. With reference to the central government debt, consider the following statements:

1. Public debt comprises the majority of central government debt.
2. Debt-GDP ratio declined steadily after the enactment of Fiscal Responsibility and Budget Management Act, 2003.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

ANS-C

 Explanation:

Central Government Debt as per Economic Survey data:

• Total liabilities of theCentral Government at endMarch 2020 stood at 97.05lakh crore.
• Out of these, 88.67 percent was public debt andthe remaining 10 percentcatered to Public
• Accountliabilities, which includeNational Small SavingsFund, State
• Provident Funds, Reserve Funds and Deposits and other Accounts.
• Debt-GDP Ratio, declined steadily immediately after the enactment of the FRBM Act,2003, and hassustained at a level during the last decade.

Q6. The term ‘Key Starting Materials’ is used in the context of

(a)Electronics manufacturing

(b) Pharmaceutical Industry

(c)Agro-processing industry

(d)Automobiles sector

ANS B

 Explanation:

• Economic survey mentions that Excessive dependence of Indianpharmaceutical industry on China for sourcing Active PharmaceuticalIngredients (APIs) and Key Starting Materials (KSMs). Hence the term relates to thePharmaceutical industry.

Q7. Which of the following statements is true with respect to the India’s policy of management of exchange rate of rupee?

1. Exchange rate is left to be determined by market forces, with interventions only to contain excessive volatility.

2. Like the inflation target band of monetary policy committee, there exists a pre- determined target band for Exchange rupee Management.

Select the correct answer using the codes given below:

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

ANS-A

 Explanation:

• Indian Rupee Exchange Rate:
• RBI’s policy on the exchange rate of the rupee has been to allow it to be determinedby market forces, with interventions only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.
• Hence statement 2 is incorrect while Statement 1 iscorrect.
• In the months following the outbreak of the pandemic, India experiencedunprecedented FPI outflows and later large stimulus by central banks in advancedeconomies has resulted in heightened capital flows into emerging markets such as India.
• In both the cases, RBI has been largely successful in controlling the volatility in theRupee

 Q8. Which of the following actions increase the liquidity in the market?

1. Sale of government securities
2. Decrease in CRR of banks
3. Increase in Reverse Repo rate

Select the correct answer using the codes given below:

(a) 2 only

(b) 1 and 3 only

(c) 2 and 3 only

(d) 1, 2 and 3 only

ANS-A

Explanation:

• Sale of government securities – It will lead to decrease in money supply.
• Hence it will affect the liquidity in the market.
• Decrease in CRR of banks –It will lead to increase in quantum of money supply to the
• public by banks.
• Hence money supply will increase.
• Increase in Reverse Repo rate-Reverse Repo Rate is when the RBI borrows moneyfrom banks when there is excess liquidity in the market.
• Reverse Repo Rate is amechanism to absorb the liquidity in the market, thus restricting the borrowing powerof investors.
• Hence increase in Reverse Repo rate will decrease the liquidity in themarket.
• Hence 2 alone is the correct answer.

Q9. With respect to Urban Cooperative Banks, which of the following changes were brought under the Banking Regulation (Amendment) Act, 2020?

1. Co-operative banks can raise debt capital from the public, subject to prior approval from SEBI.
2. RBI may supersede the board of directors of a co-operative bank
3. The Reserve Bank of India has been given powers over the management of the USBs.

Select the correct answer using the codes given below:

(a) 1 and 2 only

(b) 1 and 3 only

(c) 2 and 3 only

(d) 1, 2 and 3 only

 ANS-C

 Explanation:

• Amendments to the Banking Regulation Act, 1949: Banking Regulation(Amendment) Act, 2020 to bring changes in the regulatory regime of UCBs.

Majorprovisions under it include:

• The Reserve Bank has been given powers over the management of the UCBs,
• Enable UCBs to raise capital by issue of equity/ preference/special shares anddebentures/bonds/like securities subject to such conditions as the Reserve Bankmay specify in this behalf.
• Hence statement 1 is incorrect.
• The Reserve Bank has been empowered to supersede the Board of Directors of aUCB;
• Hence statements 2 and 3 are correct.

Q10.Which of the following helps in decreasing the food inflation rates?

1. Incentivising exports of food items
2. Imposition of stock limits
3. Increasing custom duty on imports

Select the correct answer using the codes given below:

(a) 2 only

(b) 3 only

(c) 1 and 3 only

(d) 2 and 3 only

ANS-A

Explanation:

• Government has taken several steps to improve the availability of thesecommodities and make them available to consumers at affordable prices.
• Steps were taken to stabilise prices of food items like banning of export of onions,imposition of stock limit on onions, easing of restriction on imports of pulses etc.
• Henceoptions 1 and 3 are wrong while option 2 is correct.
• Price Stabilization Fund (PSF) Scheme has succeeded in achieving its objective ofstabilizing prices of pulses and offered significant benefits to all stakeholders.
• Creation of buffer stock of pulses has helped in moderating pulses prices.
• Also, Pulsesfrom the buffer were utilised for PDS distribution, in Mid-day Meal Scheme and in ICDSScheme.
• Government has decided that procurement at MSP would be under Price SupportScheme (PSS) and requirement towards building suitable buffer would be met from thePSS stock in case procurement is not required to be undertaken under PSF.