DAY – 45 Insta 75 Days Revision Plan-2024: Topic – ECONOMY, Subject-wise Test 32, and June 2023 CA

INSTA 75 Days REVISION PLAN 2024

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• Question 1 of 30 1. Question 1 points Which of the following statements best describes the concept of “store of value” in the context of money? a) Money is a durable and non-perishable asset that usually maintains its value over time. b) Money is universally accepted for all transactions, reducing the need for barter exchanges. c) Money acts as a medium of exchange, facilitating transactions between individuals. d) Money has intrinsic value, which makes it a reliable form of wealth storage. Correct Answer: a Explanation: The “store of value” function of money refers to its ability to retain its purchasing power over time. This function allows individuals and businesses to store money for future use without a significant loss in its value. A reliable store of value is one that doesn’t depreciate rapidly and remains relatively stable, allowing people to use it as a means of saving or wealth accumulation. Hence, option (a) is correct. Incorrect Answer: a Explanation: The “store of value” function of money refers to its ability to retain its purchasing power over time. This function allows individuals and businesses to store money for future use without a significant loss in its value. A reliable store of value is one that doesn’t depreciate rapidly and remains relatively stable, allowing people to use it as a means of saving or wealth accumulation. Hence, option (a) is correct.

#### 1. Question

Which of the following statements best describes the concept of “store of value” in the context of money?

• a) Money is a durable and non-perishable asset that usually maintains its value over time.

• b) Money is universally accepted for all transactions, reducing the need for barter exchanges.

• c) Money acts as a medium of exchange, facilitating transactions between individuals.

• d) Money has intrinsic value, which makes it a reliable form of wealth storage.

Explanation:

• The “store of value” function of money refers to its ability to retain its purchasing power over time. This function allows individuals and businesses to store money for future use without a significant loss in its value.

• A reliable store of value is one that doesn’t depreciate rapidly and remains relatively stable, allowing people to use it as a means of saving or wealth accumulation.

Hence, option (a) is correct.

Explanation:

• A reliable store of value is one that doesn’t depreciate rapidly and remains relatively stable, allowing people to use it as a means of saving or wealth accumulation.

Hence, option (a) is correct.

• Question 2 of 30 2. Question 1 points Which of the following statements about the Cash Reserve Ratio (CRR) and the money multiplier is correct? a) A higher CRR results in a higher money multiplier leading to more credit creation. b) The CRR and the money multiplier has inverse relationship. c) The CRR does not impact the money multiplier, which is solely determined by the central bank. d) The CRR has no effect on the money multiplier but impacts the interest rate on loans. Correct Answer: b Explanation: The Cash Reserve Ratio (CRR) is the percentage of total bank deposits that a bank must keep as cash reserves with the central bank. This ratio plays a crucial role in determining the capacity of banks to lend and thereby affects the money multiplier. The money multiplier is a measure of the maximum amount of money that can be created from deposits in the banking system through the lending process. It is inversely related to the CRR. To understand how the CRR impacts the money multiplier, consider the following: A higher CRR means banks are required to keep a larger proportion of deposits as reserves, which reduces the amount available for lending. This results in a lower money multiplier, limiting the capacity for credit creation. A lower CRR allows banks to lend a greater proportion of their deposits, leading to a higher money multiplier, which can increase the total money supply. Hence, option (b) is correct. Incorrect Answer: b Explanation: The Cash Reserve Ratio (CRR) is the percentage of total bank deposits that a bank must keep as cash reserves with the central bank. This ratio plays a crucial role in determining the capacity of banks to lend and thereby affects the money multiplier. The money multiplier is a measure of the maximum amount of money that can be created from deposits in the banking system through the lending process. It is inversely related to the CRR. To understand how the CRR impacts the money multiplier, consider the following: A higher CRR means banks are required to keep a larger proportion of deposits as reserves, which reduces the amount available for lending. This results in a lower money multiplier, limiting the capacity for credit creation. A lower CRR allows banks to lend a greater proportion of their deposits, leading to a higher money multiplier, which can increase the total money supply. Hence, option (b) is correct.

#### 2. Question

Which of the following statements about the Cash Reserve Ratio (CRR) and the money multiplier is correct?

• a) A higher CRR results in a higher money multiplier leading to more credit creation.

• b) The CRR and the money multiplier has inverse relationship.

• c) The CRR does not impact the money multiplier, which is solely determined by the central bank.

• d) The CRR has no effect on the money multiplier but impacts the interest rate on loans.

Explanation:

• The Cash Reserve Ratio (CRR) is the percentage of total bank deposits that a bank must keep as cash reserves with the central bank. This ratio plays a crucial role in determining the capacity of banks to lend and thereby affects the money multiplier.

• The money multiplier is a measure of the maximum amount of money that can be created from deposits in the banking system through the lending process. It is inversely related to the CRR.

• To understand how the CRR impacts the money multiplier, consider the following:

• A higher CRR means banks are required to keep a larger proportion of deposits as reserves, which reduces the amount available for lending. This results in a lower money multiplier, limiting the capacity for credit creation.

• A lower CRR allows banks to lend a greater proportion of their deposits, leading to a higher money multiplier, which can increase the total money supply.

• Hence, option (b) is correct.

Explanation:

• The money multiplier is a measure of the maximum amount of money that can be created from deposits in the banking system through the lending process. It is inversely related to the CRR.

• To understand how the CRR impacts the money multiplier, consider the following:

• A lower CRR allows banks to lend a greater proportion of their deposits, leading to a higher money multiplier, which can increase the total money supply.

• Hence, option (b) is correct.

• Question 3 of 30 3. Question 1 points Which of the following is true about the withdrawal of Rs 2,000 note by the Reserve Bank of India (RBI)? a) The Rs 2,000 note will cease to be legal tender after the deposit deadline. b) The Rs 2,000 note will remain legal tender even after the deposit deadline. c) The Rs 2,000 note will no longer be accepted in banks after the deposit deadline. d) The Rs 2,000 note will be no longer in circulation. Correct Answer: b Explanation: The Reserve Bank of India’s decision to withdraw the Rs 2,000 note from circulation differs from the 2016 demonetisation in a key aspect: the Rs 2,000 note will still be considered legal tender even after the deposit deadline of September 30. This means that even though the RBI has stopped printing these notes and is encouraging their return to the banking system, they can still be used for transactions, payments, and other financial operations without legal restrictions. This step is primarily aimed at phasing out high-denomination notes that are not commonly used in day-to-day transactions. Unlike demonetisation, no Aadhar card or identity proof is required for exchanges, which points to a less invasive and more consumer-friendly approach. Despite the deadline, the Rs 2,000 notes will remain legal tender, implying that even after September 30, the RBI will honor and exchange these notes. This alleviates fears of becoming illegal post-deadline. Reduced Note Circulation: The withdrawal aligns with RBI’s “Clean Note Policy” and reflects an intent to reduce high-value currency in circulation, not to eliminate it abruptly. In contrast, when the Indian government announced demonetisation on November 8, 2016, it declared that the then-existing Rs 500 and Rs 1,000 notes would cease to be legal tender, effectively rendering them unusable for transactions. This caused widespread disruptions as people had to rush to banks to deposit or exchange the demonetised notes within a strict deadline. Demonetisation can be done by the government and not RBI. The Rs 2,000 note withdrawal allows people to continue using or holding these notes even after the deposit deadline, providing more flexibility and minimizing the kind of chaos and confusion that demonetisation caused. However, the RBI has set a limit on how much can be exchanged or deposited at a time to encourage a gradual return of these high-denomination notes into the banking system. Despite the withdrawal, the Rs 2,000 note will continue to be a valid form of currency for the foreseeable future, distinguishing this move from the abrupt and final removal of legal tender status during demonetisation. Hence, option (b) is correct. Incorrect Answer: b Explanation: The Reserve Bank of India’s decision to withdraw the Rs 2,000 note from circulation differs from the 2016 demonetisation in a key aspect: the Rs 2,000 note will still be considered legal tender even after the deposit deadline of September 30. This means that even though the RBI has stopped printing these notes and is encouraging their return to the banking system, they can still be used for transactions, payments, and other financial operations without legal restrictions. This step is primarily aimed at phasing out high-denomination notes that are not commonly used in day-to-day transactions. Unlike demonetisation, no Aadhar card or identity proof is required for exchanges, which points to a less invasive and more consumer-friendly approach. Despite the deadline, the Rs 2,000 notes will remain legal tender, implying that even after September 30, the RBI will honor and exchange these notes. This alleviates fears of becoming illegal post-deadline. Reduced Note Circulation: The withdrawal aligns with RBI’s “Clean Note Policy” and reflects an intent to reduce high-value currency in circulation, not to eliminate it abruptly. In contrast, when the Indian government announced demonetisation on November 8, 2016, it declared that the then-existing Rs 500 and Rs 1,000 notes would cease to be legal tender, effectively rendering them unusable for transactions. This caused widespread disruptions as people had to rush to banks to deposit or exchange the demonetised notes within a strict deadline. Demonetisation can be done by the government and not RBI. The Rs 2,000 note withdrawal allows people to continue using or holding these notes even after the deposit deadline, providing more flexibility and minimizing the kind of chaos and confusion that demonetisation caused. However, the RBI has set a limit on how much can be exchanged or deposited at a time to encourage a gradual return of these high-denomination notes into the banking system. Despite the withdrawal, the Rs 2,000 note will continue to be a valid form of currency for the foreseeable future, distinguishing this move from the abrupt and final removal of legal tender status during demonetisation. Hence, option (b) is correct.

#### 3. Question

Which of the following is true about the withdrawal of Rs 2,000 note by the Reserve Bank of India (RBI)?

• a) The Rs 2,000 note will cease to be legal tender after the deposit deadline.

• b) The Rs 2,000 note will remain legal tender even after the deposit deadline.

• c) The Rs 2,000 note will no longer be accepted in banks after the deposit deadline.

• d) The Rs 2,000 note will be no longer in circulation.

Explanation:

• The Reserve Bank of India’s decision to withdraw the Rs 2,000 note from circulation differs from the 2016 demonetisation in a key aspect: the Rs 2,000 note will still be considered legal tender even after the deposit deadline of September 30. This means that even though the RBI has stopped printing these notes and is encouraging their return to the banking system, they can still be used for transactions, payments, and other financial operations without legal restrictions.

• This step is primarily aimed at phasing out high-denomination notes that are not commonly used in day-to-day transactions. Unlike demonetisation, no Aadhar card or identity proof is required for exchanges, which points to a less invasive and more consumer-friendly approach.

• Despite the deadline, the Rs 2,000 notes will remain legal tender, implying that even after September 30, the RBI will honor and exchange these notes. This alleviates fears of becoming illegal post-deadline.

• Reduced Note Circulation: The withdrawal aligns with RBI’s “Clean Note Policy” and reflects an intent to reduce high-value currency in circulation, not to eliminate it abruptly.

• In contrast, when the Indian government announced demonetisation on November 8, 2016, it declared that the then-existing Rs 500 and Rs 1,000 notes would cease to be legal tender, effectively rendering them unusable for transactions. This caused widespread disruptions as people had to rush to banks to deposit or exchange the demonetised notes within a strict deadline. Demonetisation can be done by the government and not RBI.

• The Rs 2,000 note withdrawal allows people to continue using or holding these notes even after the deposit deadline, providing more flexibility and minimizing the kind of chaos and confusion that demonetisation caused. However, the RBI has set a limit on how much can be exchanged or deposited at a time to encourage a gradual return of these high-denomination notes into the banking system. Despite the withdrawal, the Rs 2,000 note will continue to be a valid form of currency for the foreseeable future, distinguishing this move from the abrupt and final removal of legal tender status during demonetisation.

• Hence, option (b) is correct.

Explanation:

• Reduced Note Circulation: The withdrawal aligns with RBI’s “Clean Note Policy” and reflects an intent to reduce high-value currency in circulation, not to eliminate it abruptly.

• Hence, option (b) is correct.

• Question 4 of 30 4. Question 1 points Which measure of money supply is most commonly used and known as aggregate monetary resources? a) M1 b) M2 c) M3 d) M4 Correct Answer: c Explanation: In economics, money supply refers to the total amount of money available in an economy at a specific point in time. It is a key indicator for understanding monetary policy, inflation, and economic health. The Reserve Bank of India (RBI) publishes four measures of money supply: M1, M2, M3, and M4, each with different components. M1 (Narrow Money): This is the most liquid measure of money supply, used for immediate transactions. It consists of currency (notes and coins) held by the public, and demand deposits with commercial banks. M2: This includes M1 along with savings deposits in Post Office savings banks. It’s slightly broader than M1 but still maintains a high degree of liquidity. M3 (Broad Money): Known as aggregate monetary resources, M3 is the most commonly used measure for monetary policy analysis. It includes M1 along with net time deposits of commercial banks. This broader measure reflects a more comprehensive view of money in the economy. M4: The broadest measure, M4 includes M3 along with total deposits in Post Office savings organizations (excluding National Savings Certificates). It represents the least liquid form of money. M3 is the most commonly used measure because it encompasses the liquidity of M1 and the broader view provided by net time deposits of commercial banks, giving a balanced understanding of the economy’s monetary resources. This measure is frequently used by economists, policymakers, and financial analysts to gauge monetary policy, inflation trends, and overall economic stability. Hence, option (c) is correct. Incorrect Answer: c Explanation: In economics, money supply refers to the total amount of money available in an economy at a specific point in time. It is a key indicator for understanding monetary policy, inflation, and economic health. The Reserve Bank of India (RBI) publishes four measures of money supply: M1, M2, M3, and M4, each with different components. M1 (Narrow Money): This is the most liquid measure of money supply, used for immediate transactions. It consists of currency (notes and coins) held by the public, and demand deposits with commercial banks. M2: This includes M1 along with savings deposits in Post Office savings banks. It’s slightly broader than M1 but still maintains a high degree of liquidity. M3 (Broad Money): Known as aggregate monetary resources, M3 is the most commonly used measure for monetary policy analysis. It includes M1 along with net time deposits of commercial banks. This broader measure reflects a more comprehensive view of money in the economy. M4: The broadest measure, M4 includes M3 along with total deposits in Post Office savings organizations (excluding National Savings Certificates). It represents the least liquid form of money. M3 is the most commonly used measure because it encompasses the liquidity of M1 and the broader view provided by net time deposits of commercial banks, giving a balanced understanding of the economy’s monetary resources. This measure is frequently used by economists, policymakers, and financial analysts to gauge monetary policy, inflation trends, and overall economic stability. Hence, option (c) is correct.

#### 4. Question

Which measure of money supply is most commonly used and known as aggregate monetary resources?

Explanation:

• In economics, money supply refers to the total amount of money available in an economy at a specific point in time. It is a key indicator for understanding monetary policy, inflation, and economic health. The Reserve Bank of India (RBI) publishes four measures of money supply: M1, M2, M3, and M4, each with different components.

• M1 (Narrow Money): This is the most liquid measure of money supply, used for immediate transactions. It consists of currency (notes and coins) held by the public, and demand deposits with commercial banks.

• M2: This includes M1 along with savings deposits in Post Office savings banks. It’s slightly broader than M1 but still maintains a high degree of liquidity.

• M3 (Broad Money): Known as aggregate monetary resources, M3 is the most commonly used measure for monetary policy analysis. It includes M1 along with net time deposits of commercial banks. This broader measure reflects a more comprehensive view of money in the economy.

• M4: The broadest measure, M4 includes M3 along with total deposits in Post Office savings organizations (excluding National Savings Certificates). It represents the least liquid form of money.

• M3 is the most commonly used measure because it encompasses the liquidity of M1 and the broader view provided by net time deposits of commercial banks, giving a balanced understanding of the economy’s monetary resources. This measure is frequently used by economists, policymakers, and financial analysts to gauge monetary policy, inflation trends, and overall economic stability.

Hence, option (c) is correct.

Explanation:

• M2: This includes M1 along with savings deposits in Post Office savings banks. It’s slightly broader than M1 but still maintains a high degree of liquidity.

• M4: The broadest measure, M4 includes M3 along with total deposits in Post Office savings organizations (excluding National Savings Certificates). It represents the least liquid form of money.

Hence, option (c) is correct.

• Question 5 of 30 5. Question 1 points Consider the following statements regarding the concept of “liquidity preference”: Liquidity preference refers to the demand for money due to its universality and ease of exchange for other commodities. Liquidity preference is the opportunity cost of holding cash instead of investing it in bonds or other assets. Liquidity preference considers the trade-off between the advantage of liquidity and the disadvantage of foregone interest. How many of the above are correct? a) Only one b) Only two c) All three d) None Correct Answer: c Explanation: Liquidity preference is about the demand for money due to its universality and ease of exchange. People prefer holding money because it is the most liquid asset and can be readily used for transactions. Hence, statement 1 is correct. Liquidity preference represents the opportunity cost of holding cash rather than investing it in other assets like bonds. When people choose to hold money, they forgo potential interest or returns from other investments. Hence, statement 2 is correct. Liquidity preference involves the trade-off between the benefits of liquidity and the costs of lost potential interest from not investing in other assets. Hence, statement 3 is correct. Hence, option(c) is correct. Incorrect Answer: c Explanation: Liquidity preference is about the demand for money due to its universality and ease of exchange. People prefer holding money because it is the most liquid asset and can be readily used for transactions. Hence, statement 1 is correct. Liquidity preference represents the opportunity cost of holding cash rather than investing it in other assets like bonds. When people choose to hold money, they forgo potential interest or returns from other investments. Hence, statement 2 is correct. Liquidity preference involves the trade-off between the benefits of liquidity and the costs of lost potential interest from not investing in other assets. Hence, statement 3 is correct. Hence, option(c) is correct.

#### 5. Question

Consider the following statements regarding the concept of “liquidity preference”:

• Liquidity preference refers to the demand for money due to its universality and ease of exchange for other commodities.

• Liquidity preference is the opportunity cost of holding cash instead of investing it in bonds or other assets.

• Liquidity preference considers the trade-off between the advantage of liquidity and the disadvantage of foregone interest.

How many of the above are correct?

• a) Only one

• b) Only two

• c) All three

Explanation:

• Liquidity preference is about the demand for money due to its universality and ease of exchange. People prefer holding money because it is the most liquid asset and can be readily used for transactions. Hence, statement 1 is correct.

• Liquidity preference represents the opportunity cost of holding cash rather than investing it in other assets like bonds. When people choose to hold money, they forgo potential interest or returns from other investments. Hence, statement 2 is correct.

• Liquidity preference involves the trade-off between the benefits of liquidity and the costs of lost potential interest from not investing in other assets. Hence, statement 3 is correct.

• Hence, option(c) is correct.

Explanation:

• Liquidity preference involves the trade-off between the benefits of liquidity and the costs of lost potential interest from not investing in other assets. Hence, statement 3 is correct.

• Hence, option(c) is correct.

• Question 6 of 30 6. Question 1 points With reference to the concept of autonomous consumption, consider the following statements: Autonomous consumption refers to the part of consumption that is independent of income. Autonomous consumption remains constant regardless of changes in income. Autonomous consumption can be influenced by external factors other than income. How many of the above are NOT correct? a) Only one b) Only two c) All three d) None Correct Answer: d Explanation: Autonomous consumption refers to the part of consumption that is independent of income. This is a core characteristic of autonomous consumption. It represents the baseline level of consumption that occurs even if income is zero. It typically includes expenses for basic necessities that people will try to cover regardless of their income. Hence, statement 1 is correct. Autonomous consumption remains constant regardless of changes in income. Autonomous consumption is designed to represent the part of consumption that doesn’t vary with income. However, it could be influenced by non-income factors, which could lead to changes in autonomous consumption levels. Hence, statement 2 is correct. Autonomous consumption can be influenced by external factors other than income. Autonomous consumption can indeed be impacted by factors such as government policy, interest rates, wealth, credit availability, or other socio-economic conditions. These factors are not directly tied to income but can affect the base level of consumption. Hence, statement 3 is correct. All the given statements are correct. Hence, option (d) is correct. Incorrect Answer: d Explanation: Autonomous consumption refers to the part of consumption that is independent of income. This is a core characteristic of autonomous consumption. It represents the baseline level of consumption that occurs even if income is zero. It typically includes expenses for basic necessities that people will try to cover regardless of their income. Hence, statement 1 is correct. Autonomous consumption remains constant regardless of changes in income. Autonomous consumption is designed to represent the part of consumption that doesn’t vary with income. However, it could be influenced by non-income factors, which could lead to changes in autonomous consumption levels. Hence, statement 2 is correct. Autonomous consumption can be influenced by external factors other than income. Autonomous consumption can indeed be impacted by factors such as government policy, interest rates, wealth, credit availability, or other socio-economic conditions. These factors are not directly tied to income but can affect the base level of consumption. Hence, statement 3 is correct. All the given statements are correct. Hence, option (d) is correct. **

#### 6. Question

With reference to the concept of autonomous consumption, consider the following statements:

• Autonomous consumption refers to the part of consumption that is independent of income.

• Autonomous consumption remains constant regardless of changes in income.

• Autonomous consumption can be influenced by external factors other than income.

How many of the above are NOT** correct?

• a) Only one

• b) Only two

• c) All three

Explanation:

• Autonomous consumption refers to the part of consumption that is independent of income. This is a core characteristic of autonomous consumption. It represents the baseline level of consumption that occurs even if income is zero. It typically includes expenses for basic necessities that people will try to cover regardless of their income. Hence, statement 1 is correct.

• Autonomous consumption remains constant regardless of changes in income. Autonomous consumption is designed to represent the part of consumption that doesn’t vary with income. However, it could be influenced by non-income factors, which could lead to changes in autonomous consumption levels. Hence, statement 2 is correct.

• Autonomous consumption can be influenced by external factors other than income. Autonomous consumption can indeed be impacted by factors such as government policy, interest rates, wealth, credit availability, or other socio-economic conditions. These factors are not directly tied to income but can affect the base level of consumption. Hence, statement 3 is correct.

• All the given statements are correct.

• Hence, option (d) is correct.

Explanation:

• All the given statements are correct.

• Hence, option (d) is correct.

• Question 7 of 30 7. Question 1 points Consider the following: Changes in consumption patterns. Availability of credit and interest rates. Variations in the price level. Changes in the marginal propensity to consume. How many of the above factors can cause changes in investment in a macroeconomic context? a) Only one b) Only two c) Only three d) All four Correct Answer: d Explanation: In a macroeconomic context, investment decisions are influenced by a range of factors. Here’s a detailed explanation of how each of the listed factors can affect investment: Changes in consumption patterns: When consumption patterns change, businesses may need to adapt their production or service offerings to meet new consumer demands. For example, a shift towards eco-friendly products could lead to investments in sustainable manufacturing processes. Similarly, a trend towards remote work could drive investments in technology infrastructure. Therefore, significant changes in consumption patterns can prompt businesses to adjust their investment strategies. Availability of credit and interest rates: Credit availability and interest rates directly affect a business’s ability to fund investments. When credit is easily accessible and interest rates are low, borrowing costs are reduced, encouraging businesses to invest in expansion, new projects, or equipment. Conversely, tight credit conditions and high interest rates can discourage investment due to the increased cost of borrowing. Variations in the price level: Price level fluctuations can impact the cost of goods, wages, and overall economic stability. If prices are rising (inflation), businesses might need to invest more in inventory to hedge against future price increases. Conversely, if prices are falling (deflation), businesses may postpone investments due to uncertainty about future returns. The price level also affects consumer purchasing power, which can impact investment indirectly through changes in demand. Changes in the marginal propensity to consume (MPC): MPC reflects the proportion of additional income that households spend on consumption. If MPC increases, it suggests that consumers are spending more, potentially driving higher demand for goods and services. This can lead businesses to invest in increased production capacity or new projects to meet this higher demand. A decrease in MPC might indicate reduced consumer spending, leading businesses to scale back investment plans. Hence, option (d) is correct. Incorrect Answer: d Explanation: In a macroeconomic context, investment decisions are influenced by a range of factors. Here’s a detailed explanation of how each of the listed factors can affect investment: Changes in consumption patterns: When consumption patterns change, businesses may need to adapt their production or service offerings to meet new consumer demands. For example, a shift towards eco-friendly products could lead to investments in sustainable manufacturing processes. Similarly, a trend towards remote work could drive investments in technology infrastructure. Therefore, significant changes in consumption patterns can prompt businesses to adjust their investment strategies. Availability of credit and interest rates: Credit availability and interest rates directly affect a business’s ability to fund investments. When credit is easily accessible and interest rates are low, borrowing costs are reduced, encouraging businesses to invest in expansion, new projects, or equipment. Conversely, tight credit conditions and high interest rates can discourage investment due to the increased cost of borrowing. Variations in the price level: Price level fluctuations can impact the cost of goods, wages, and overall economic stability. If prices are rising (inflation), businesses might need to invest more in inventory to hedge against future price increases. Conversely, if prices are falling (deflation), businesses may postpone investments due to uncertainty about future returns. The price level also affects consumer purchasing power, which can impact investment indirectly through changes in demand. Changes in the marginal propensity to consume (MPC): MPC reflects the proportion of additional income that households spend on consumption. If MPC increases, it suggests that consumers are spending more, potentially driving higher demand for goods and services. This can lead businesses to invest in increased production capacity or new projects to meet this higher demand. A decrease in MPC might indicate reduced consumer spending, leading businesses to scale back investment plans. Hence, option (d) is correct.

#### 7. Question

Consider the following:

• Changes in consumption patterns.

• Availability of credit and interest rates.

• Variations in the price level.

• Changes in the marginal propensity to consume.

How many of the above factors can cause changes in investment in a macroeconomic context?

• a) Only one

• b) Only two

• c) Only three

• d) All four

Explanation:

• In a macroeconomic context, investment decisions are influenced by a range of factors. Here’s a detailed explanation of how each of the listed factors can affect investment:

• Changes in consumption patterns: When consumption patterns change, businesses may need to adapt their production or service offerings to meet new consumer demands. For example, a shift towards eco-friendly products could lead to investments in sustainable manufacturing processes. Similarly, a trend towards remote work could drive investments in technology infrastructure. Therefore, significant changes in consumption patterns can prompt businesses to adjust their investment strategies.

• Availability of credit and interest rates: Credit availability and interest rates directly affect a business’s ability to fund investments. When credit is easily accessible and interest rates are low, borrowing costs are reduced, encouraging businesses to invest in expansion, new projects, or equipment. Conversely, tight credit conditions and high interest rates can discourage investment due to the increased cost of borrowing.

• Variations in the price level: Price level fluctuations can impact the cost of goods, wages, and overall economic stability. If prices are rising (inflation), businesses might need to invest more in inventory to hedge against future price increases. Conversely, if prices are falling (deflation), businesses may postpone investments due to uncertainty about future returns. The price level also affects consumer purchasing power, which can impact investment indirectly through changes in demand.

• Changes in the marginal propensity to consume (MPC): MPC reflects the proportion of additional income that households spend on consumption. If MPC increases, it suggests that consumers are spending more, potentially driving higher demand for goods and services. This can lead businesses to invest in increased production capacity or new projects to meet this higher demand. A decrease in MPC might indicate reduced consumer spending, leading businesses to scale back investment plans.

• Hence, option (d) is correct.

Explanation:

• In a macroeconomic context, investment decisions are influenced by a range of factors. Here’s a detailed explanation of how each of the listed factors can affect investment:

• Hence, option (d) is correct.

• Question 8 of 30 8. Question 1 points What is the maximum credit a bank can avail through the Marginal Standing Facility (MSF)? a) 2% of its total deposits b) 3% of its total deposits c) 5% of its total deposits d) 10% of its total deposits Correct Answer: b Explanation: Under the Marginal Standing Facility (MSF), a bank can borrow overnight funds from the Reserve Bank of India (RBI) in exchange for authorized government securities. The MSF was introduced to provide banks with a facility to borrow funds in emergency situations, such as when inter-bank liquidity dries up completely, causing volatility in the overnight inter-bank rates. However, the RBI imposes a limit on the maximum credit a bank can avail through the MSF. This limit is set at 3% of the bank’s total deposits (Net Demand and Time Liabilities or NDTL). This restriction helps maintain a level of financial discipline and prevents excessive borrowing, while still allowing banks some flexibility during emergencies. Hence, option (b) is correct. Incorrect Answer: b Explanation: Under the Marginal Standing Facility (MSF), a bank can borrow overnight funds from the Reserve Bank of India (RBI) in exchange for authorized government securities. The MSF was introduced to provide banks with a facility to borrow funds in emergency situations, such as when inter-bank liquidity dries up completely, causing volatility in the overnight inter-bank rates. However, the RBI imposes a limit on the maximum credit a bank can avail through the MSF. This limit is set at 3% of the bank’s total deposits (Net Demand and Time Liabilities or NDTL). This restriction helps maintain a level of financial discipline and prevents excessive borrowing, while still allowing banks some flexibility during emergencies. Hence, option (b) is correct.

#### 8. Question

What is the maximum credit a bank can avail through the Marginal Standing Facility (MSF)?

• a) 2% of its total deposits

• b) 3% of its total deposits

• c) 5% of its total deposits

• d) 10% of its total deposits

Explanation:

• Under the Marginal Standing Facility (MSF), a bank can borrow overnight funds from the Reserve Bank of India (RBI) in exchange for authorized government securities. The MSF was introduced to provide banks with a facility to borrow funds in emergency situations, such as when inter-bank liquidity dries up completely, causing volatility in the overnight inter-bank rates.

• However, the RBI imposes a limit on the maximum credit a bank can avail through the MSF. This limit is set at 3% of the bank’s total deposits (Net Demand and Time Liabilities or NDTL). This restriction helps maintain a level of financial discipline and prevents excessive borrowing, while still allowing banks some flexibility during emergencies.

Hence, option (b) is correct.

Explanation:

Hence, option (b) is correct.

• Question 9 of 30 9. Question 1 points Which of the following statements accurately describe the purpose of money market instruments? Money market instruments provide private and public institutions with the capital they need to fund their working capital requirements. Money market instruments maintain liquidity in the economy Money market instruments offer banks and financial institutions a way to utilize their surplus funds efficiently for longer periods. Money market instruments may help to avoid inflationary pressures. How many of the above are correct? a) Only one b) Only two c) Only three d) All four Correct Answer: c Explanation: Money market instruments provide funds to private and public institutions for working capital needs and other needs. Hence, statement 1 is correct. Money market instruments help maintain liquidity in the economy, often used by central banks as part of monetary policy. Hence, statement 2 is correct. Money market instruments are typically for short-term financing, not longer periods. They are generally used for short-term funds, often less than one year. Hence, statement 3 is incorrect. Money market instruments like treasury bills can be used by governments to obtain short-term funding, avoiding direct borrowing from the central bank, which could lead to inflationary pressures. Hence, statement 4 is correct. Hence, option (c) is correct. Incorrect Answer: c Explanation: Money market instruments provide funds to private and public institutions for working capital needs and other needs. Hence, statement 1 is correct. Money market instruments help maintain liquidity in the economy, often used by central banks as part of monetary policy. Hence, statement 2 is correct. Money market instruments are typically for short-term financing, not longer periods. They are generally used for short-term funds, often less than one year. Hence, statement 3 is incorrect. Money market instruments like treasury bills can be used by governments to obtain short-term funding, avoiding direct borrowing from the central bank, which could lead to inflationary pressures. Hence, statement 4 is correct. Hence, option (c) is correct.

#### 9. Question

Which of the following statements accurately describe the purpose of money market instruments?

• Money market instruments provide private and public institutions with the capital they need to fund their working capital requirements.

• Money market instruments maintain liquidity in the economy

• Money market instruments offer banks and financial institutions a way to utilize their surplus funds efficiently for longer periods.

• Money market instruments may help to avoid inflationary pressures.

How many of the above are correct?

• a) Only one

• b) Only two

• c) Only three

• d) All four

Explanation:

• Money market instruments provide funds to private and public institutions for working capital needs and other needs. Hence, statement 1 is correct.

• Money market instruments help maintain liquidity in the economy, often used by central banks as part of monetary policy. Hence, statement 2 is correct.

• Money market instruments are typically for short-term financing, not longer periods. They are generally used for short-term funds, often less than one year. Hence, statement 3 is incorrect.

• Money market instruments like treasury bills can be used by governments to obtain short-term funding, avoiding direct borrowing from the central bank, which could lead to inflationary pressures. Hence, statement 4 is correct.

• Hence, option (c) is correct.

Explanation:

• Money market instruments provide funds to private and public institutions for working capital needs and other needs. Hence, statement 1 is correct.

• Money market instruments help maintain liquidity in the economy, often used by central banks as part of monetary policy. Hence, statement 2 is correct.

• Hence, option (c) is correct.

• Question 10 of 30 10. Question 1 points What is a characteristic of preference shares that makes them different from equity shares? a) Preference shareholders have voting rights. b) Preference shares do not pay a fixed dividend. c) All Preference shares can be converted into equity shares. d) Preference shareholders receive dividends before equity shareholders. Correct Answer: d Explanation: Preference shares have certain privileges that set them apart from equity shares. Preference shareholders usually do not have voting rights, which is a characteristic unique to equity shareholders. Preference shares always pay a fixed dividend: Preference shares often have a fixed dividend. Preference shares can be converted into equity shares: This is true for convertible preference shares, but not for all preference shares, making it not a defining characteristic of preference shares in general. A key characteristic is that preference shareholders are entitled to receive dividends before equity shareholders, ensuring that they are paid dividends even when the company might not be able to distribute dividends to equity shareholders. Hence, option (d) is correct. Incorrect Answer: d Explanation: Preference shares have certain privileges that set them apart from equity shares. Preference shareholders usually do not have voting rights, which is a characteristic unique to equity shareholders. Preference shares always pay a fixed dividend: Preference shares often have a fixed dividend. Preference shares can be converted into equity shares: This is true for convertible preference shares, but not for all preference shares, making it not a defining characteristic of preference shares in general. A key characteristic is that preference shareholders are entitled to receive dividends before equity shareholders, ensuring that they are paid dividends even when the company might not be able to distribute dividends to equity shareholders. Hence, option (d) is correct.

#### 10. Question

What is a characteristic of preference shares that makes them different from equity shares?

• a) Preference shareholders have voting rights.

• b) Preference shares do not pay a fixed dividend.

• c) All Preference shares can be converted into equity shares.

• d) Preference shareholders receive dividends before equity shareholders.

Explanation:

• Preference shares have certain privileges that set them apart from equity shares. Preference shareholders usually do not have voting rights, which is a characteristic unique to equity shareholders.

• Preference shares always pay a fixed dividend: Preference shares often have a fixed dividend.

• Preference shares can be converted into equity shares: This is true for convertible preference shares, but not for all preference shares, making it not a defining characteristic of preference shares in general.

• A key characteristic is that preference shareholders are entitled to receive dividends before equity shareholders, ensuring that they are paid dividends even when the company might not be able to distribute dividends to equity shareholders.

• Hence, option (d) is correct.

Explanation:

• Preference shares always pay a fixed dividend: Preference shares often have a fixed dividend.

• Hence, option (d) is correct.

• Question 11 of 30 11. Question 1 points How many of the following materials are used to slow down neutrons in nuclear reactors, enhancing the fission process? Beryllium Light water Graphite Heavy water Select the correct answer using the codes given below: (a) Only one (b) Only two (c) Only three (d) All four Correct Solution: D Beryllium is an effective neutron moderator and is used in some nuclear reactors due to its ability to reflect neutrons as well as slow them down. Light water (ordinary water) is the most common moderator in nuclear reactors. It slows down neutrons effectively, making it suitable for use in light water reactors, such as the PWR (Pressurized Water Reactor) and BWR (Boiling Water Reactor). Graphite is used as a moderator in reactors slows neutrons without capturing them, facilitating a sustained chain reaction. Heavy water (deuterium oxide) is an excellent moderator, allowing these reactors to run on natural uranium without the need for enriched fuel. Incorrect Solution: D Beryllium is an effective neutron moderator and is used in some nuclear reactors due to its ability to reflect neutrons as well as slow them down. Light water (ordinary water) is the most common moderator in nuclear reactors. It slows down neutrons effectively, making it suitable for use in light water reactors, such as the PWR (Pressurized Water Reactor) and BWR (Boiling Water Reactor). Graphite is used as a moderator in reactors slows neutrons without capturing them, facilitating a sustained chain reaction. Heavy water (deuterium oxide) is an excellent moderator, allowing these reactors to run on natural uranium without the need for enriched fuel.

#### 11. Question

How many of the following materials are used to slow down neutrons in nuclear reactors, enhancing the fission process?

• Light water

• Heavy water

Select the correct answer using the codes given below:

• (a) Only one

• (b) Only two

• (c) Only three

• (d) All four

Solution: D

• Beryllium is an effective neutron moderator and is used in some nuclear reactors due to its ability to reflect neutrons as well as slow them down.

• Light water (ordinary water) is the most common moderator in nuclear reactors. It slows down neutrons effectively, making it suitable for use in light water reactors, such as the PWR (Pressurized Water Reactor) and BWR (Boiling Water Reactor).

• Graphite is used as a moderator in reactors slows neutrons without capturing them, facilitating a sustained chain reaction.

• Heavy water (deuterium oxide) is an excellent moderator, allowing these reactors to run on natural uranium without the need for enriched fuel.

Solution: D

• Beryllium is an effective neutron moderator and is used in some nuclear reactors due to its ability to reflect neutrons as well as slow them down.

• Graphite is used as a moderator in reactors slows neutrons without capturing them, facilitating a sustained chain reaction.

• Heavy water (deuterium oxide) is an excellent moderator, allowing these reactors to run on natural uranium without the need for enriched fuel.

• Question 12 of 30 12. Question 1 points How many of the following actions would be considered a breach of international intellectual property rights agreements? A company in country A produces and sells counterfeit products that infringe on the trademarks of a company in country B. A government in country C fails to enforce patents rights against local companies producing generic versions of patented medicines without a license. A university in country D publicly shares proprietary research data from a collaborative international study without consent. Select the correct answer using the codes given below: (a) Only one (b) Only two (c) All three (d) None Correct Solution: C Producing Counterfeit Products: This directly violates the TRIPS Agreement (Trade-Related Aspects of Intellectual Property Rights), which mandates protection and enforcement of trademark rights. Failure to Enforce Patent Rights: Not enforcing patent rights, especially in the pharmaceutical sector, can breach international IP agreements that protect patent holders. Unauthorized Data Sharing: Sharing proprietary information without consent breaches confidentiality agreements and can violate intellectual property rights protected under various international agreements. Incorrect Solution: C Producing Counterfeit Products: This directly violates the TRIPS Agreement (Trade-Related Aspects of Intellectual Property Rights), which mandates protection and enforcement of trademark rights. Failure to Enforce Patent Rights: Not enforcing patent rights, especially in the pharmaceutical sector, can breach international IP agreements that protect patent holders. Unauthorized Data Sharing: Sharing proprietary information without consent breaches confidentiality agreements and can violate intellectual property rights protected under various international agreements.

#### 12. Question

How many of the following actions would be considered a breach of international intellectual property rights agreements?

• A company in country A produces and sells counterfeit products that infringe on the trademarks of a company in country B.

• A government in country C fails to enforce patents rights against local companies producing generic versions of patented medicines without a license.

• A university in country D publicly shares proprietary research data from a collaborative international study without consent.

Select the correct answer using the codes given below:

• (a) Only one

• (b) Only two

• (c) All three

Solution: C

• Producing Counterfeit Products: This directly violates the TRIPS Agreement (Trade-Related Aspects of Intellectual Property Rights), which mandates protection and enforcement of trademark rights.

• Failure to Enforce Patent Rights: Not enforcing patent rights, especially in the pharmaceutical sector, can breach international IP agreements that protect patent holders.

• Unauthorized Data Sharing: Sharing proprietary information without consent breaches confidentiality agreements and can violate intellectual property rights protected under various international agreements.

Solution: C

• Failure to Enforce Patent Rights: Not enforcing patent rights, especially in the pharmaceutical sector, can breach international IP agreements that protect patent holders.

• Question 13 of 30 13. Question 1 points Consider the following statements regarding Mixed Reality. Mixed reality involves the blending of real and virtual worlds. It combines aspects of both virtual reality (VR) and augmented reality (AR). Physical and virtual objects cannot co-exist in mixed reality environments. How many of the above statements are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: B. Mixed reality or MR specifically, involves the blending of real and virtual worlds. Put simply, the MR experience viewed in the head-mounted display combines aspects of both virtual reality (VR) and augmented reality (AR). The idea is to connect real environments to completely virtual ones. Physical and virtual objects may co-exist in mixed reality environments and interact in real time. Hence, statement 3 is incorrect. Mixed reality has been used in applications across fields including design, education, entertainment, military training, healthcare, product content management, and human-in-the-loop operation of robots. Incorrect Solution: B. Mixed reality or MR specifically, involves the blending of real and virtual worlds. Put simply, the MR experience viewed in the head-mounted display combines aspects of both virtual reality (VR) and augmented reality (AR). The idea is to connect real environments to completely virtual ones. Physical and virtual objects may co-exist in mixed reality environments and interact in real time. Hence, statement 3 is incorrect. Mixed reality has been used in applications across fields including design, education, entertainment, military training, healthcare, product content management, and human-in-the-loop operation of robots.

#### 13. Question

Consider the following statements regarding Mixed Reality.

• Mixed reality involves the blending of real and virtual worlds.

• It combines aspects of both virtual reality (VR) and augmented reality (AR).

• Physical and virtual objects cannot co-exist in mixed reality environments.

How many of the above statements are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: B.

Mixed reality or MR specifically, involves the blending of real and virtual worlds. Put simply, the MR experience viewed in the head-mounted display combines aspects of both virtual reality (VR) and augmented reality (AR). The idea is to connect real environments to completely virtual ones.

Physical and virtual objects may co-exist in mixed reality environments and interact in real time.

Hence, statement 3 is incorrect.

Mixed reality has been used in applications across fields including design, education, entertainment, military training, healthcare, product content management, and human-in-the-loop operation of robots.

Solution: B.

Physical and virtual objects may co-exist in mixed reality environments and interact in real time.

Hence, statement 3 is incorrect.

• Question 14 of 30 14. Question 1 points The Basel Convention, frequently mentioned in environmental discussions, is related to: (a) The conservation of biological diversity (b) The control of transboundary movements of hazardous wastes and their disposal (c) The regulation of international trade in endangered species (d) The prevention of marine pollution Correct Solution: B The Basel Convention is a major international treaty that was designed to reduce the movements of hazardous waste between nations, and specifically to prevent transfer of hazardous waste from developed to less developed countries (LDCs). It also aims to regulate and ensure environmentally sound management of hazardous wastes. This treaty plays a critical role in addressing the problems and challenges posed by hazardous waste management to minimize its harmful effects on human health and the environment. Incorrect Solution: B The Basel Convention is a major international treaty that was designed to reduce the movements of hazardous waste between nations, and specifically to prevent transfer of hazardous waste from developed to less developed countries (LDCs). It also aims to regulate and ensure environmentally sound management of hazardous wastes. This treaty plays a critical role in addressing the problems and challenges posed by hazardous waste management to minimize its harmful effects on human health and the environment.

#### 14. Question

The Basel Convention, frequently mentioned in environmental discussions, is related to:

• (a) The conservation of biological diversity

• (b) The control of transboundary movements of hazardous wastes and their disposal

• (c) The regulation of international trade in endangered species

• (d) The prevention of marine pollution

Solution: B

The Basel Convention is a major international treaty that was designed to reduce the movements of hazardous waste between nations, and specifically to prevent transfer of hazardous waste from developed to less developed countries (LDCs). It also aims to regulate and ensure environmentally sound management of hazardous wastes. This treaty plays a critical role in addressing the problems and challenges posed by hazardous waste management to minimize its harmful effects on human health and the environment.

Solution: B

• Question 15 of 30 15. Question 1 points Citrus Canker is a (a) fungal disease (b) bacterial disease (c) viral disease (d) insect infestation Correct Solution: B Citrus Canker is a bacterial disease that affects citrus trees and is caused by the bacterium *Xanthomonas citri*. It is prevalent in citrus-growing regions in India and is characterized by raised lesions or cankers on the leaves, stems, and fruit of citrus trees. The disease leads to premature leaf and fruit drop, severely impacting fruit quality and yield. Citrus Canker is highly contagious and can spread rapidly in favorable conditions, making management and control critically important in affected regions. Incorrect Solution: B Citrus Canker is a bacterial disease that affects citrus trees and is caused by the bacterium *Xanthomonas citri*. It is prevalent in citrus-growing regions in India and is characterized by raised lesions or cankers on the leaves, stems, and fruit of citrus trees. The disease leads to premature leaf and fruit drop, severely impacting fruit quality and yield. Citrus Canker is highly contagious and can spread rapidly in favorable conditions, making management and control critically important in affected regions.

#### 15. Question

Citrus Canker is a

• (a) fungal disease

• (b) bacterial disease

• (c) viral disease

• (d) insect infestation

Solution: B

Citrus Canker is a bacterial disease that affects citrus trees and is caused by the bacterium *Xanthomonas citri*. It is prevalent in citrus-growing regions in India and is characterized by raised lesions or cankers on the leaves, stems, and fruit of citrus trees. The disease leads to premature leaf and fruit drop, severely impacting fruit quality and yield. Citrus Canker is highly contagious and can spread rapidly in favorable conditions, making management and control critically important in affected regions.

Solution: B

• Question 16 of 30 16. Question 1 points Consider the following statements regarding the Attorney General of India: He is the first law officer and has the right of audience in all courts of India. He has the right to take part in any joint sitting of the Houses of Parliament. He receives the remuneration determined by the Parliament from time to time. How many of the statements given above is/are correct? (a) Only one (b) Only two (c) All three (d) None Correct Answer: B Explanation: Statement 1 is correct: The Constitution of India places the post of the A-G on a special footing. The A-G is the Government of India’s first law officer, and has the right of audience in all courts of the country. Under Article 76(1), the A-G is appointed by the President from among persons who are “qualified to be appointed a Judge of the Supreme Court”. Statement 2 is correct: Attorney-General of India shall have the right to speak in, and otherwise to take part in the proceedings of, either House, any joint sitting of the Houses, and any committee of Parliament of which he may be named a member”. Statement 3 is not correct: Article 76(4) says “the Attorney-General shall hold office during the pleasure of the President, and shall receive such remuneration as the President may determine.” Incorrect Answer: B Explanation: Statement 1 is correct: The Constitution of India places the post of the A-G on a special footing. The A-G is the Government of India’s first law officer, and has the right of audience in all courts of the country. Under Article 76(1), the A-G is appointed by the President from among persons who are “qualified to be appointed a Judge of the Supreme Court”. Statement 2 is correct: Attorney-General of India shall have the right to speak in, and otherwise to take part in the proceedings of, either House, any joint sitting of the Houses, and any committee of Parliament of which he may be named a member”. Statement 3 is not correct: Article 76(4) says “the Attorney-General shall hold office during the pleasure of the President, and shall receive such remuneration as the President may determine.”

#### 16. Question

Consider the following statements regarding the Attorney General of India:

• He is the first law officer and has the right of audience in all courts of India.

• He has the right to take part in any joint sitting of the Houses of Parliament.

• He receives the remuneration determined by the Parliament from time to time.

How many of the statements given above is/are correct?

• (a) Only one

• (b) Only two

• (c) All three

Answer: B

Explanation:

Statement 1 is correct: The Constitution of India places the post of the A-G on a special footing. The A-G is the Government of India’s first law officer, and has the right of audience in all courts of the country.

Under Article 76(1), the A-G is appointed by the President from among persons who are “qualified to be appointed a Judge of the Supreme Court”.

Statement 2 is correct: Attorney-General of India shall have the right to speak in, and otherwise to take part in the proceedings of, either House, any joint sitting of the Houses, and any committee of Parliament of which he may be named a member”.

Statement 3 is not correct: Article 76(4) says “the Attorney-General shall hold office during the pleasure of the President, and shall receive such remuneration as the President may determine.”

Answer: B

Explanation:

Under Article 76(1), the A-G is appointed by the President from among persons who are “qualified to be appointed a Judge of the Supreme Court”.

• Question 17 of 30 17. Question 1 points Consider the following statements regarding the International Seabed Authority: It regulates the exploration of marine non-living resources in international waters. India actively contributes to the work of the International Seabed Authority. India has not been elected as a member of the Council of the Authority. How many of the statements given above is/are correct? (a) Only one (b) Only two (c) All three (d) None Correct Answer: B Explanation: Statement 1 is correct: International Seabed Authority (ISA) is a UN body set up to regulate the exploration and exploitation of marine non-living resources of oceans in international waters. Statement 2 is correct: India actively contributes to the work of International Seabed Authority. Statement 3 is not correct: Last year, India was re-elected as a member of Council of ISA. India’s nominees on Legal and Technical Commission and Finance Committee of the ISA were also elected last year. India’s exclusive rights to explore polymetallic nodules from seabed in Central Indian Ocean Basin (CIOB) have been extended by five years. These rights are over 75000 sq. km of area in international waters allocated by International Seabed Authority for developmental activities for polymetallic nodules. Incorrect Answer: B Explanation: Statement 1 is correct: International Seabed Authority (ISA) is a UN body set up to regulate the exploration and exploitation of marine non-living resources of oceans in international waters. Statement 2 is correct: India actively contributes to the work of International Seabed Authority. Statement 3 is not correct: Last year, India was re-elected as a member of Council of ISA. India’s nominees on Legal and Technical Commission and Finance Committee of the ISA were also elected last year. India’s exclusive rights to explore polymetallic nodules from seabed in Central Indian Ocean Basin (CIOB) have been extended by five years. These rights are over 75000 sq. km of area in international waters allocated by International Seabed Authority for developmental activities for polymetallic nodules.

#### 17. Question

Consider the following statements regarding the International Seabed Authority:

• It regulates the exploration of marine non-living resources in international waters.

• India actively contributes to the work of the International Seabed Authority.

• India has not been elected as a member of the Council of the Authority.

How many of the statements given above is/are correct?

• (a) Only one

• (b) Only two

• (c) All three

Answer: B

Explanation:

Statement 1 is correct: International Seabed Authority (ISA) is a UN body set up to regulate the exploration and exploitation of marine non-living resources of oceans in international waters.

Statement 2 is correct: India actively contributes to the work of International Seabed Authority.

Statement 3 is not correct: Last year, India was re-elected as a member of Council of ISA.

India’s nominees on Legal and Technical Commission and Finance Committee of the ISA were also elected last year.

India’s exclusive rights to explore polymetallic nodules from seabed in Central Indian Ocean Basin (CIOB) have been extended by five years.

These rights are over 75000 sq. km of area in international waters allocated by International Seabed Authority for developmental activities for polymetallic nodules.

Answer: B

Explanation:

Statement 1 is correct: International Seabed Authority (ISA) is a UN body set up to regulate the exploration and exploitation of marine non-living resources of oceans in international waters.

Statement 2 is correct: India actively contributes to the work of International Seabed Authority.

Statement 3 is not correct: Last year, India was re-elected as a member of Council of ISA.

India’s nominees on Legal and Technical Commission and Finance Committee of the ISA were also elected last year.

India’s exclusive rights to explore polymetallic nodules from seabed in Central Indian Ocean Basin (CIOB) have been extended by five years.

These rights are over 75000 sq. km of area in international waters allocated by International Seabed Authority for developmental activities for polymetallic nodules.

• Question 18 of 30 18. Question 1 points Consider the following statements regarding the SWAMIH Investment Fund: It is a social impact fund specifically formed for completing the stressed residential projects. It considers the first-time developers but excludes the established developers with troubled projects. It is sponsored by the Reserve Bank of India and assisted by the United Nations Development Programme. How many of the statements given above is/are correct? (a) Only one (b) Only two (c) All three (d) None Correct Answer: A Explanation: Statement 1 is correct: The Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund I is a social impact fund specifically formed for completing stressed and stalled residential projects. Statement 2 is not correct: Since the Fund considers first-time developers, established developers with troubled projects, developers with a poor track record of stalled projects, customer complaints and NPA accounts, and even projects where there are litigation issues, it is considered as the lender of last resort for distressed projects. Statement 3 is not correct: The Fund is sponsored by the Ministry of Finance, Government of India, and is managed by SBICAP Ventures Ltd., a State Bank Group company. Incorrect Answer: A Explanation: Statement 1 is correct: The Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund I is a social impact fund specifically formed for completing stressed and stalled residential projects. Statement 2 is not correct: Since the Fund considers first-time developers, established developers with troubled projects, developers with a poor track record of stalled projects, customer complaints and NPA accounts, and even projects where there are litigation issues, it is considered as the lender of last resort for distressed projects. Statement 3 is not correct: The Fund is sponsored by the Ministry of Finance, Government of India, and is managed by SBICAP Ventures Ltd., a State Bank Group company.

#### 18. Question

Consider the following statements regarding the SWAMIH Investment Fund:

• It is a social impact fund specifically formed for completing the stressed residential projects.

• It considers the first-time developers but excludes the established developers with troubled projects.

• It is sponsored by the Reserve Bank of India and assisted by the United Nations Development Programme.

How many of the statements given above is/are correct?

• (a) Only one

• (b) Only two

• (c) All three

Answer: A

Explanation:

Statement 1 is correct: The Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund I is a social impact fund specifically formed for completing stressed and stalled residential projects.

Statement 2 is not correct: Since the Fund considers first-time developers, established developers with troubled projects, developers with a poor track record of stalled projects, customer complaints and NPA accounts, and even projects where there are litigation issues, it is considered as the lender of last resort for distressed projects.

Statement 3 is not correct: The Fund is sponsored by the Ministry of Finance, Government of India, and is managed by SBICAP Ventures Ltd., a State Bank Group company.

Answer: A

Explanation:

Statement 3 is not correct: The Fund is sponsored by the Ministry of Finance, Government of India, and is managed by SBICAP Ventures Ltd., a State Bank Group company.

• Question 19 of 30 19. Question 1 points Consider the following statements regarding Anamalai Tiger Reserve: It lies South of the Palakkad gap in the Southern Western Ghats. It supports moist deciduous dry thorn and shola forests. It has a common boundary with Wayanad Wildlife Sanctuary in Kerala. How many of the statements given above is/are correct? (a) Only one (b) Only two (c) All three (d) None Correct Answer: B Explanation: Statement 1 is correct: Anamalai Tiger Reserve is carved out of the Tamil Nadu portion of the Anamalais. The Tamil Nadu part of the reserve is called as Anamalai Tiger Reserve (ATR). It lies South of the Palakkad gap in the Southern Western Ghats. Geographically it is located between the longitudes 76o and 77o E and latitudes 10o and 10o N. Statement 2 is correct: The Tiger Reserve supports diverse habitat types viz. Wet evergreen forests, semi evergreen forests, moist deciduous, dry deciduous, dry thorn and shola forests. Mudumalai Tiger Reserve is located in the Nilgiris District of Tamil Nadu state at the tri-junction of three states, viz, Karnataka, Kerala and Tamil Nadu and it plays an unique role by forming part of the Nilgiris Biosphere Reserve, the first Biosphere Reserve in India, declared during 1986. Statement 3 is not correct: Mudumalai Tiger Reserve has a common boundary with Wayanad Wildlife Sanctuary (Kerala) on the West, Bandipur Tiger Reserve (Karnataka) on the North, and the Nilgiris Division on the South and East and Gudalur Forest Division on the South West. Incorrect Answer: B Explanation: Statement 1 is correct: Anamalai Tiger Reserve is carved out of the Tamil Nadu portion of the Anamalais. The Tamil Nadu part of the reserve is called as Anamalai Tiger Reserve (ATR). It lies South of the Palakkad gap in the Southern Western Ghats. Geographically it is located between the longitudes 76o and 77o E and latitudes 10o and 10o N. Statement 2 is correct: The Tiger Reserve supports diverse habitat types viz. Wet evergreen forests, semi evergreen forests, moist deciduous, dry deciduous, dry thorn and shola forests. Mudumalai Tiger Reserve is located in the Nilgiris District of Tamil Nadu state at the tri-junction of three states, viz, Karnataka, Kerala and Tamil Nadu and it plays an unique role by forming part of the Nilgiris Biosphere Reserve, the first Biosphere Reserve in India, declared during 1986. Statement 3 is not correct: Mudumalai Tiger Reserve has a common boundary with Wayanad Wildlife Sanctuary (Kerala) on the West, Bandipur Tiger Reserve (Karnataka) on the North, and the Nilgiris Division on the South and East and Gudalur Forest Division on the South West.

#### 19. Question

Consider the following statements regarding Anamalai Tiger Reserve:

• It lies South of the Palakkad gap in the Southern Western Ghats.

• It supports moist deciduous dry thorn and shola forests.

• It has a common boundary with Wayanad Wildlife Sanctuary in Kerala.

How many of the statements given above is/are correct?

• (a) Only one

• (b) Only two

• (c) All three

Answer: B

Explanation:

Statement 1 is correct: Anamalai Tiger Reserve is carved out of the Tamil Nadu portion of the Anamalais. The Tamil Nadu part of the reserve is called as Anamalai Tiger Reserve (ATR). It lies South of the Palakkad gap in the Southern Western Ghats.

Geographically it is located between the longitudes 76o and 77o E and latitudes 10o and 10o N.

Statement 2 is correct: The Tiger Reserve supports diverse habitat types viz. Wet evergreen forests, semi evergreen forests, moist deciduous, dry deciduous, dry thorn and shola forests.

Mudumalai Tiger Reserve is located in the Nilgiris District of Tamil Nadu state at the tri-junction of three states, viz, Karnataka, Kerala and Tamil Nadu and it plays an unique role by forming part of the Nilgiris Biosphere Reserve, the first Biosphere Reserve in India, declared during 1986.

Statement 3 is not correct: Mudumalai Tiger Reserve has a common boundary with Wayanad Wildlife Sanctuary (Kerala) on the West, Bandipur Tiger Reserve (Karnataka) on the North, and the Nilgiris Division on the South and East and Gudalur Forest Division on the South West.

Answer: B

Explanation:

Geographically it is located between the longitudes 76o and 77o E and latitudes 10o and 10o N.

Statement 2 is correct: The Tiger Reserve supports diverse habitat types viz. Wet evergreen forests, semi evergreen forests, moist deciduous, dry deciduous, dry thorn and shola forests.

• Question 20 of 30 20. Question 1 points Which one of the following organisations has recently launched the Project Wave? (a) The Indian Bank (b) The Bharat Broadband Network (c) The United Nations Environment Programme (d) The Telecom Regulatory Authority of India Correct Answer: A Explanation: Option (a) is correct: Public sector lender Indian Bank has unveiled new services under its digital transformation initiative Project WAVE. This move will also reduce the turn-around time of the bank guarantee issuance and delivery to the beneficiary from an industry average of 3-4 working days to a few minutes. Indian Bank has launched a facility to avail pre-approved business loans, an end-to-end digital journey, for eligible individuals and proprietor firms to cater to their respective businesses. Incorrect Answer: A Explanation: Option (a) is correct: Public sector lender Indian Bank has unveiled new services under its digital transformation initiative Project WAVE. This move will also reduce the turn-around time of the bank guarantee issuance and delivery to the beneficiary from an industry average of 3-4 working days to a few minutes. Indian Bank has launched a facility to avail pre-approved business loans, an end-to-end digital journey, for eligible individuals and proprietor firms to cater to their respective businesses.

#### 20. Question

Which one of the following organisations has recently launched the Project Wave?

• (a) The Indian Bank

• (b) The Bharat Broadband Network

• (c) The United Nations Environment Programme

• (d) The Telecom Regulatory Authority of India

Answer: A

Explanation:

Option (a) is correct: Public sector lender Indian Bank has unveiled new services under its digital transformation initiative Project WAVE.

This move will also reduce the turn-around time of the bank guarantee issuance and delivery to the beneficiary from an industry average of 3-4 working days to a few minutes.

Indian Bank has launched a facility to avail pre-approved business loans, an end-to-end digital journey, for eligible individuals and proprietor firms to cater to their respective businesses.

Answer: A

Explanation:

Option (a) is correct: Public sector lender Indian Bank has unveiled new services under its digital transformation initiative Project WAVE.

This move will also reduce the turn-around time of the bank guarantee issuance and delivery to the beneficiary from an industry average of 3-4 working days to a few minutes.

Indian Bank has launched a facility to avail pre-approved business loans, an end-to-end digital journey, for eligible individuals and proprietor firms to cater to their respective businesses.

• Question 21 of 30 21. Question 1 points The Blue Dot Network (BDN) is a certification framework for: a) fishery products b) infrastructure projects c) protected areas d) industrial carbon footprint Correct Solution: b) Justification: The Blue Dot Network (BDN) is a certification framework for quality infrastructure projects. The initiative is a joint project of the governments of Australia, Canada, Czech Republic, Japan, Spain, Switzerland, Turkey, United Kingdom, and the United States that supports investment in high-quality infrastructure projects around the world, especially by the private sector.[1][2][3] It was founded in 2019 with $60 billion in initial funding. In 2021, the success of the program influenced the adoption of the Build Back Better World (B3W) initiative by the Group of Seven (G7) nations. The Blue Dot Network certification is developed with support of the OECD and leading private sector developers and financiers of infrastructure, represented in the Executive Consultation Group. Q Source: https://www.insightsonindia.com/2022/07/29/mission-2023-insights-daily-current-affairs-pib-summary-29-july-2022/ Incorrect Solution: b) Justification: The Blue Dot Network (BDN) is a certification framework for quality infrastructure projects. The initiative is a joint project of the governments of Australia, Canada, Czech Republic, Japan, Spain, Switzerland, Turkey, United Kingdom, and the United States that supports investment in high-quality infrastructure projects around the world, especially by the private sector.[1][2][3] It was founded in 2019 with $60 billion in initial funding. In 2021, the success of the program influenced the adoption of the Build Back Better World (B3W) initiative by the Group of Seven (G7) nations. The Blue Dot Network certification is developed with support of the OECD and leading private sector developers and financiers of infrastructure, represented in the Executive Consultation Group. Q Source: https://www.insightsonindia.com/2022/07/29/mission-2023-insights-daily-current-affairs-pib-summary-29-july-2022/

#### 21. Question

The Blue Dot Network (BDN) is a certification framework for:

• a) fishery products

• b) infrastructure projects

• c) protected areas

• d) industrial carbon footprint

Solution: b)

Justification: The Blue Dot Network (BDN) is a certification framework for quality infrastructure projects. The initiative is a joint project of the governments of Australia, Canada, Czech Republic, Japan, Spain, Switzerland, Turkey, United Kingdom, and the United States that supports investment in high-quality infrastructure projects around the world, especially by the private sector.[1][2][3]

It was founded in 2019 with $60 billion in initial funding. In 2021, the success of the program influenced the adoption of the Build Back Better World (B3W) initiative by the Group of Seven (G7) nations.

The Blue Dot Network certification is developed with support of the OECD and leading private sector developers and financiers of infrastructure, represented in the Executive Consultation Group.

Q Source: https://www.insightsonindia.com/2022/07/29/mission-2023-insights-daily-current-affairs-pib-summary-29-july-2022/

Solution: b)

The Blue Dot Network certification is developed with support of the OECD and leading private sector developers and financiers of infrastructure, represented in the Executive Consultation Group.

Q Source: https://www.insightsonindia.com/2022/07/29/mission-2023-insights-daily-current-affairs-pib-summary-29-july-2022/

• Question 22 of 30 22. Question 1 points Consider the following statements. India is home to only about 30% of the tigers in the world. As per Tiger estimation reports, organized tiger poaching by traditional gangs in Central Indian landscapes has increased substantially since 2013. India has built the world’s largest animal underpass to funnel tigers safely beneath a highway. How many of the above is/are correct? a) Only one b) Only two c) All three d) None of the above Correct Solution: a) Justification: According to the tiger census of India, India has 2967 tigers, of which 526 are in Madhya Pradesh (highest). India is home to 80 percent of tigers in the world. Nodal Agency: National Tiger Conservation Authority (NTCA) (As per NTCA, 1059 tiger deaths were in last 10 years, most were in Madhya Pradesh. Organized poaching rackets have been all but crushed. As per Tiger estimation reports, there has been no organized poaching by traditional gangs in Central Indian landscapes since 2013. Improved Conditions for breeding: Tigers are fast breeders when conditions are conducive and increased protection has encouraged the tiger to breed. Rehabilitation of villages: Villages were shifted outside core areas in many parts of the country which led to the availability of more inviolate space for tigers. Accurate estimation exercise: Better estimation over the years made it possible that many tigers that eluded enumerators in earlier exercises were counted this time. India has built the world’s largest animal underpass to funnel tigers safely beneath a highway. Finished in 2018, the NH44 has 9 specially built underpasses, ranging in length from 50 to 750 meters, designed to allow animals to pass beneath the roads. Q Source: https://www.insightsonindia.com/2022/07/29/mission-2023-insights-daily-current-affairs-pib-summary-29-july-2022/ Incorrect Solution: a) Justification: According to the tiger census of India, India has 2967 tigers, of which 526 are in Madhya Pradesh (highest). India is home to 80 percent of tigers in the world. Nodal Agency: National Tiger Conservation Authority (NTCA) (As per NTCA, 1059 tiger deaths were in last 10 years, most were in Madhya Pradesh. Organized poaching rackets have been all but crushed. As per Tiger estimation reports, there has been no organized poaching by traditional gangs in Central Indian landscapes since 2013. Improved Conditions for breeding: Tigers are fast breeders when conditions are conducive and increased protection has encouraged the tiger to breed. Rehabilitation of villages: Villages were shifted outside core areas in many parts of the country which led to the availability of more inviolate space for tigers. Accurate estimation exercise: Better estimation over the years made it possible that many tigers that eluded enumerators in earlier exercises were counted this time. India has built the world’s largest animal underpass to funnel tigers safely beneath a highway. Finished in 2018, the NH44 has 9 specially built underpasses, ranging in length from 50 to 750 meters, designed to allow animals to pass beneath the roads. Q Source: https://www.insightsonindia.com/2022/07/29/mission-2023-insights-daily-current-affairs-pib-summary-29-july-2022/

#### 22. Question

Consider the following statements.

• India is home to only about 30% of the tigers in the world.

• As per Tiger estimation reports, organized tiger poaching by traditional gangs in Central Indian landscapes has increased substantially since 2013.

• India has built the world’s largest animal underpass to funnel tigers safely beneath a highway.

How many of the above is/are correct?

• a) Only one

• b) Only two

• c) All three

• d) None of the above

Solution: a)

Justification: According to the tiger census of India, India has 2967 tigers, of which 526 are in Madhya Pradesh (highest). India is home to 80 percent of tigers in the world.

Nodal Agency: National Tiger Conservation Authority (NTCA) (As per NTCA, 1059 tiger deaths were in last 10 years, most were in Madhya Pradesh.

Organized poaching rackets have been all but crushed. As per Tiger estimation reports, there has been no organized poaching by traditional gangs in Central Indian landscapes since 2013.

Improved Conditions for breeding: Tigers are fast breeders when conditions are conducive and increased protection has encouraged the tiger to breed.

Rehabilitation of villages: Villages were shifted outside core areas in many parts of the country which led to the availability of more inviolate space for tigers.

Accurate estimation exercise: Better estimation over the years made it possible that many tigers that eluded enumerators in earlier exercises were counted this time.

India has built the world’s largest animal underpass to funnel tigers safely beneath a highway.

Finished in 2018, the NH44 has 9 specially built underpasses, ranging in length from 50 to 750 meters, designed to allow animals to pass beneath the roads.