DAY – 46 : Insta 75 Days Revision Plan-2025 : Economy

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• Question 1 of 30 1. Question 1 points Consider the following statements regarding India’s Foreign Exchange Reserves: Foreign Currency Assets (FCAs), held primarily in US Dollars, constitute the largest component of India’s forex reserves. The level of forex reserves is solely determined by the balance on the Current Account of the BoP. The RBI actively intervenes in the forex market, selling dollars when the Rupee depreciates sharply and buying dollars when it appreciates, which directly impacts the level of reserves. Which of the statements given above are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Correct Solution: A Statement 1 is correct. India’s foreign exchange reserves comprise Foreign Currency Assets (FCAs), Gold, Special Drawing Rights (SDRs), and Reserve Tranche Position (RTP) with the IMF. FCAs, which are assets held in foreign currencies (predominantly US Dollar, but also Euro, Pound Sterling, Yen, etc.), consistently form the largest component. Data as of March 14, 2025, showed FCAs at US$ 557.186 billion out of total reserves of US$ 654.271 billion. Data for March 28, 2025, showed FCAs at US$ 565.014 billion out of total reserves of US$ 665.396 billion. Statement 2 is incorrect. The level of forex reserves is influenced by the overall Balance of Payments (BoP), which includes both the Current Account and the Capital Account (including Financial Account). Reserves accumulate when there is an overall BoP surplus (inflows exceed outflows) and deplete during an overall deficit. Capital flows (like FDI, FPI, ECBs, NRI deposits) and RBI interventions play a major role, alongside the current account balance. Valuation changes due to fluctuations in the value of the US dollar against other reserve currencies also affect the reported level of reserves. Statement 4 is correct. The RBI frequently intervenes in the foreign exchange market to manage volatility and maintain orderly conditions. It buys foreign currency (usually US dollars) when there are excessive inflows (which strengthens the Rupee) to prevent sharp appreciation and build reserves. Conversely, it sells dollars during periods of excessive outflows (which weakens the Rupee) to curb sharp depreciation, leading to a drawdown in reserves. These interventions are a key factor influencing the level of forex reserves. Incorrect Solution: A Statement 1 is correct. India’s foreign exchange reserves comprise Foreign Currency Assets (FCAs), Gold, Special Drawing Rights (SDRs), and Reserve Tranche Position (RTP) with the IMF. FCAs, which are assets held in foreign currencies (predominantly US Dollar, but also Euro, Pound Sterling, Yen, etc.), consistently form the largest component. Data as of March 14, 2025, showed FCAs at US$ 557.186 billion out of total reserves of US$ 654.271 billion. Data for March 28, 2025, showed FCAs at US$ 565.014 billion out of total reserves of US$ 665.396 billion. Statement 2 is incorrect. The level of forex reserves is influenced by the overall Balance of Payments (BoP), which includes both the Current Account and the Capital Account (including Financial Account). Reserves accumulate when there is an overall BoP surplus (inflows exceed outflows) and deplete during an overall deficit. Capital flows (like FDI, FPI, ECBs, NRI deposits) and RBI interventions play a major role, alongside the current account balance. Valuation changes due to fluctuations in the value of the US dollar against other reserve currencies also affect the reported level of reserves. Statement 4 is correct. The RBI frequently intervenes in the foreign exchange market to manage volatility and maintain orderly conditions. It buys foreign currency (usually US dollars) when there are excessive inflows (which strengthens the Rupee) to prevent sharp appreciation and build reserves. Conversely, it sells dollars during periods of excessive outflows (which weakens the Rupee) to curb sharp depreciation, leading to a drawdown in reserves. These interventions are a key factor influencing the level of forex reserves.

#### 1. Question

Consider the following statements regarding India’s Foreign Exchange Reserves:

• Foreign Currency Assets (FCAs), held primarily in US Dollars, constitute the largest component of India’s forex reserves.

• The level of forex reserves is solely determined by the balance on the Current Account of the BoP.

• The RBI actively intervenes in the forex market, selling dollars when the Rupee depreciates sharply and buying dollars when it appreciates, which directly impacts the level of reserves.

Which of the statements given above are correct?

• (a) 1 and 2 only

• (b) 2 and 3 only

• (c) 1 and 3 only

• (d) 1, 2 and 3

Solution: A

• Statement 1 is correct. India’s foreign exchange reserves comprise Foreign Currency Assets (FCAs), Gold, Special Drawing Rights (SDRs), and Reserve Tranche Position (RTP) with the IMF. FCAs, which are assets held in foreign currencies (predominantly US Dollar, but also Euro, Pound Sterling, Yen, etc.), consistently form the largest component. Data as of March 14, 2025, showed FCAs at US$ 557.186 billion out of total reserves of US$ 654.271 billion. Data for March 28, 2025, showed FCAs at US$ 565.014 billion out of total reserves of US$ 665.396 billion.

• Statement 2 is incorrect. The level of forex reserves is influenced by the overall Balance of Payments (BoP), which includes both the Current Account and the Capital Account (including Financial Account). Reserves accumulate when there is an overall BoP surplus (inflows exceed outflows) and deplete during an overall deficit. Capital flows (like FDI, FPI, ECBs, NRI deposits) and RBI interventions play a major role, alongside the current account balance. Valuation changes due to fluctuations in the value of the US dollar against other reserve currencies also affect the reported level of reserves.

• Statement 4 is correct. The RBI frequently intervenes in the foreign exchange market to manage volatility and maintain orderly conditions. It buys foreign currency (usually US dollars) when there are excessive inflows (which strengthens the Rupee) to prevent sharp appreciation and build reserves. Conversely, it sells dollars during periods of excessive outflows (which weakens the Rupee) to curb sharp depreciation, leading to a drawdown in reserves. These interventions are a key factor influencing the level of forex reserves.

Solution: A

• Question 2 of 30 2. Question 1 points Consider the following statements regarding the National Food Security Act (NFSA), 2013: The Act legally entitles up to 75% of the rural population and up to 50% of the urban population to receive subsidized foodgrains under the Targeted Public Distribution System (TPDS). Under the Act, households covered under Antyodaya Anna Yojana (AAY) are entitled to 35 kg of foodgrains per household per month, while Priority Households (PHH) are entitled to 5 kg per person per month. The Shanta Kumar Committee (2015) recommended increasing the coverage under NFSA to 80% of the population to ensure wider food security. The central issue prices for rice, wheat, and coarse grains under NFSA have been revised upwards multiple times since the Act’s implementation to reflect rising economic costs. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 1, 2 and 4 only (c) 3 only (d) 1, 2, 3 and 4 Correct Solution: A Statement 1 is correct. The National Food Security Act, 2013 aims to provide subsidized food grains to a significant portion of the population. Its coverage extends to up to 75% of the rural population and up to 50% of the urban population. This translates to roughly two-thirds of the total population based on Census 2011 figures. Statement 2 is correct. The Act specifies different entitlements for different categories of beneficiaries. Antyodaya Anna Yojana (AAY) households, identified as the poorest of the poor, are entitled to 35 kg of foodgrains per household per month. Priority Households (PHH) are entitled to receive 5 kg of foodgrains per person per month. Statement 3 is incorrect. The High-Level Committee on Restructuring of FCI, chaired by Shanta Kumar (2015), recommended reducing, not increasing, the coverage under NFSA. It suggested bringing down the coverage from 67% (based on the 75%/50% rural/urban split) to around 40% of the population, arguing that this would comfortably cover Below Poverty Line (BPL) families and some above them, making the subsidy more targeted and fiscally sustainable. NITI Aayog (2021) also suggested reducing coverage gradually. Statement 4 is incorrect. The central issue prices (CIPs) under NFSA were fixed at Rs. 3/kg for rice, Rs. 2/kg for wheat, and Rs. 1/kg for coarse grains at the time of the Act’s implementation. A key point of discussion and recommendation (e.g., Economic Survey 2020-21 ) has been the need to revise these prices upwards, as they have remained unchanged for years despite significant increases in the economic cost (MSP + procurement incidentals + distribution costs) incurred by the government. Furthermore, under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) integrated with NFSA from January 1, 2023, foodgrains are being provided free of cost to beneficiaries for a period (initially one year, later extended), effectively making the issue price zero for the duration. Incorrect Solution: A Statement 1 is correct. The National Food Security Act, 2013 aims to provide subsidized food grains to a significant portion of the population. Its coverage extends to up to 75% of the rural population and up to 50% of the urban population. This translates to roughly two-thirds of the total population based on Census 2011 figures. Statement 2 is correct. The Act specifies different entitlements for different categories of beneficiaries. Antyodaya Anna Yojana (AAY) households, identified as the poorest of the poor, are entitled to 35 kg of foodgrains per household per month. Priority Households (PHH) are entitled to receive 5 kg of foodgrains per person per month. Statement 3 is incorrect. The High-Level Committee on Restructuring of FCI, chaired by Shanta Kumar (2015), recommended reducing, not increasing, the coverage under NFSA. It suggested bringing down the coverage from 67% (based on the 75%/50% rural/urban split) to around 40% of the population, arguing that this would comfortably cover Below Poverty Line (BPL) families and some above them, making the subsidy more targeted and fiscally sustainable. NITI Aayog (2021) also suggested reducing coverage gradually. Statement 4 is incorrect. The central issue prices (CIPs) under NFSA were fixed at Rs. 3/kg for rice, Rs. 2/kg for wheat, and Rs. 1/kg for coarse grains at the time of the Act’s implementation. A key point of discussion and recommendation (e.g., Economic Survey 2020-21 ) has been the need to revise these prices upwards, as they have remained unchanged for years despite significant increases in the economic cost (MSP + procurement incidentals + distribution costs) incurred by the government. Furthermore, under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) integrated with NFSA from January 1, 2023, foodgrains are being provided free of cost to beneficiaries for a period (initially one year, later extended), effectively making the issue price zero for the duration.

#### 2. Question

Consider the following statements regarding the National Food Security Act (NFSA), 2013:

• The Act legally entitles up to 75% of the rural population and up to 50% of the urban population to receive subsidized foodgrains under the Targeted Public Distribution System (TPDS).

• Under the Act, households covered under Antyodaya Anna Yojana (AAY) are entitled to 35 kg of foodgrains per household per month, while Priority Households (PHH) are entitled to 5 kg per person per month.

• The Shanta Kumar Committee (2015) recommended increasing the coverage under NFSA to 80% of the population to ensure wider food security.

• The central issue prices for rice, wheat, and coarse grains under NFSA have been revised upwards multiple times since the Act’s implementation to reflect rising economic costs.

Which of the statements given above is/are correct?

• (a) 1 and 2 only

• (b) 1, 2 and 4 only

• (c) 3 only

• (d) 1, 2, 3 and 4

Solution: A

• Statement 1 is correct. The National Food Security Act, 2013 aims to provide subsidized food grains to a significant portion of the population. Its coverage extends to up to 75% of the rural population and up to 50% of the urban population. This translates to roughly two-thirds of the total population based on Census 2011 figures.

• Statement 2 is correct. The Act specifies different entitlements for different categories of beneficiaries. Antyodaya Anna Yojana (AAY) households, identified as the poorest of the poor, are entitled to 35 kg of foodgrains per household per month. Priority Households (PHH) are entitled to receive 5 kg of foodgrains per person per month.

• Statement 3 is incorrect. The High-Level Committee on Restructuring of FCI, chaired by Shanta Kumar (2015), recommended reducing, not increasing, the coverage under NFSA. It suggested bringing down the coverage from 67% (based on the 75%/50% rural/urban split) to around 40% of the population, arguing that this would comfortably cover Below Poverty Line (BPL) families and some above them, making the subsidy more targeted and fiscally sustainable. NITI Aayog (2021) also suggested reducing coverage gradually.

Statement 4 is incorrect. The central issue prices (CIPs) under NFSA were fixed at Rs. 3/kg for rice, Rs. 2/kg for wheat, and Rs. 1/kg for coarse grains at the time of the Act’s implementation. A key point of discussion and recommendation (e.g., Economic Survey 2020-21 ) has been the need to revise these prices upwards, as they have remained unchanged for years despite significant increases in the economic cost (MSP + procurement incidentals + distribution costs) incurred by the government. Furthermore, under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) integrated with NFSA from January 1, 2023, foodgrains are being provided free of cost to beneficiaries for a period (initially one year, later extended), effectively making the issue price zero for the duration.

Solution: A

• Question 3 of 30 3. Question 1 points Consider the following statements regarding reforms in India’s Public Distribution System (PDS): The ‘End-to-End Computerisation of TPDS Operations’ scheme focused primarily on digitizing beneficiary databases and automating Fair Price Shops (FPS) with electronic Point of Sale (ePoS) devices. The ‘One Nation One Ration Card’ (ONORC) initiative, implemented under the Integrated Management of Public Distribution System (IM-PDS) scheme, allows NFSA beneficiaries to access their entitled foodgrains from any FPS across the country using Aadhaar authentication. The recently launched ‘Scheme for Modernization and Reforms through Technology in Public Distribution System’ (SMART-PDS) aims primarily to phase out technology use and revert to manual PDS operations to reduce costs. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3 Correct Solution: A Statement 1 is correct. The ‘End-to-End Computerisation of TPDS Operations’ scheme, implemented during the 12th Plan Period (extended to March 2020), laid the foundation for technology-driven PDS reforms. Its key components included the digitization of ration card/beneficiary data, computerization of the supply chain management, setting up transparency portals, and the automation of Fair Price Shops (FPS) by installing electronic Point of Sale (ePoS) devices for beneficiary authentication and transaction recording. Statement 2 is correct. The ‘One Nation One Ration Card’ (ONORC) plan is a major reform enabling nationwide portability of foodgrain entitlements for NFSA beneficiaries, especially benefiting migrants. It allows beneficiaries to lift their entitled foodgrains (full or part) from any ePoS-enabled FPS anywhere in the country using their existing ration card and biometric/Aadhaar authentication. This initiative was implemented under the Central Sector Scheme ‘Integrated Management of Public Distribution System’ (IM-PDS), which aimed to create a central repository for beneficiary data and facilitate inter-state/intra-state portability. Statement 3 is incorrect. The ‘Scheme for Modernization and Reforms through Technology in Public Distribution System’ (SMART-PDS), approved for implementation from April 2023 to March 2026, aims to sustain and enhance technology-led reforms, not phase them out. Its objectives include maintaining the improvements from previous schemes, updating technology, standardizing PDS operations through technology, integrating PDS systems with other related entities (FCI, CWC, UIDAI, etc.), and leveraging data analytics for better decision-making. It explicitly focuses on strengthening technology components and overcoming state-level technological limitations. Incorrect Solution: A Statement 1 is correct. The ‘End-to-End Computerisation of TPDS Operations’ scheme, implemented during the 12th Plan Period (extended to March 2020), laid the foundation for technology-driven PDS reforms. Its key components included the digitization of ration card/beneficiary data, computerization of the supply chain management, setting up transparency portals, and the automation of Fair Price Shops (FPS) by installing electronic Point of Sale (ePoS) devices for beneficiary authentication and transaction recording. Statement 2 is correct. The ‘One Nation One Ration Card’ (ONORC) plan is a major reform enabling nationwide portability of foodgrain entitlements for NFSA beneficiaries, especially benefiting migrants. It allows beneficiaries to lift their entitled foodgrains (full or part) from any ePoS-enabled FPS anywhere in the country using their existing ration card and biometric/Aadhaar authentication. This initiative was implemented under the Central Sector Scheme ‘Integrated Management of Public Distribution System’ (IM-PDS), which aimed to create a central repository for beneficiary data and facilitate inter-state/intra-state portability. Statement 3 is incorrect. The ‘Scheme for Modernization and Reforms through Technology in Public Distribution System’ (SMART-PDS), approved for implementation from April 2023 to March 2026, aims to sustain and enhance technology-led reforms, not phase them out. Its objectives include maintaining the improvements from previous schemes, updating technology, standardizing PDS operations through technology, integrating PDS systems with other related entities (FCI, CWC, UIDAI, etc.), and leveraging data analytics for better decision-making. It explicitly focuses on strengthening technology components and overcoming state-level technological limitations.

#### 3. Question

Consider the following statements regarding reforms in India’s Public Distribution System (PDS):

• The ‘End-to-End Computerisation of TPDS Operations’ scheme focused primarily on digitizing beneficiary databases and automating Fair Price Shops (FPS) with electronic Point of Sale (ePoS) devices.

• The ‘One Nation One Ration Card’ (ONORC) initiative, implemented under the Integrated Management of Public Distribution System (IM-PDS) scheme, allows NFSA beneficiaries to access their entitled foodgrains from any FPS across the country using Aadhaar authentication.

• The recently launched ‘Scheme for Modernization and Reforms through Technology in Public Distribution System’ (SMART-PDS) aims primarily to phase out technology use and revert to manual PDS operations to reduce costs.

Which of the statements given above is/are correct?

• (a) 1 and 2 only

• (b) 2 only

• (c) 1 and 3 only

• (d) 1, 2 and 3

Solution: A

• Statement 1 is correct. The ‘End-to-End Computerisation of TPDS Operations’ scheme, implemented during the 12th Plan Period (extended to March 2020), laid the foundation for technology-driven PDS reforms. Its key components included the digitization of ration card/beneficiary data, computerization of the supply chain management, setting up transparency portals, and the automation of Fair Price Shops (FPS) by installing electronic Point of Sale (ePoS) devices for beneficiary authentication and transaction recording.

• Statement 2 is correct. The ‘One Nation One Ration Card’ (ONORC) plan is a major reform enabling nationwide portability of foodgrain entitlements for NFSA beneficiaries, especially benefiting migrants. It allows beneficiaries to lift their entitled foodgrains (full or part) from any ePoS-enabled FPS anywhere in the country using their existing ration card and biometric/Aadhaar authentication. This initiative was implemented under the Central Sector Scheme ‘Integrated Management of Public Distribution System’ (IM-PDS), which aimed to create a central repository for beneficiary data and facilitate inter-state/intra-state portability.

• Statement 3 is incorrect. The ‘Scheme for Modernization and Reforms through Technology in Public Distribution System’ (SMART-PDS), approved for implementation from April 2023 to March 2026, aims to sustain and enhance technology-led reforms, not phase them out. Its objectives include maintaining the improvements from previous schemes, updating technology, standardizing PDS operations through technology, integrating PDS systems with other related entities (FCI, CWC, UIDAI, etc.), and leveraging data analytics for better decision-making. It explicitly focuses on strengthening technology components and overcoming state-level technological limitations.

Solution: A

• Question 4 of 30 4. Question 1 points Consider the following statements regarding crop diversification in Indian agriculture: Crop diversification is primarily encouraged to maximize the production of water-intensive crops like rice and wheat, leveraging existing procurement infrastructure. The skewed MSP and procurement system, heavily favouring wheat and paddy, has historically acted as a major disincentive for crop diversification. The Pradhan Mantri Dhan-Dhaanya Krishi Yojana, launched recently, explicitly focuses on promoting crop diversification alongside enhancing productivity in low-productivity districts. Emerging technologies like precision agriculture and climate-resilient seeds offer limited scope for facilitating crop diversification in India. Which of the statements given above is/are correct? (a) 2 only (b) 2 and 3 only (c) 1 and 4 only (d) 1, 2 and 3 only Correct Solution: B Statement 1 is incorrect. Crop diversification is encouraged for precisely the opposite reason: to move away from the monoculture of water-intensive crops like rice and wheat, especially in ecologically stressed regions like Punjab and Haryana. The rationale includes promoting agricultural sustainability (conserving water, improving soil health), enhancing farmers’ resilience to climate change and market risks, improving nutrition (by growing pulses, millets, oilseeds, fruits, vegetables), and boosting farmer incomes. Statement 2 is correct. The existing Minimum Support Price (MSP) regime and associated government procurement operations have historically been heavily skewed towards paddy and wheat. This assured market and price support for these two crops has made farmers reluctant to diversify into other crops (like pulses, oilseeds, coarse cereals) where procurement is less assured and price realization is more uncertain, even if MSPs are announced for them. This acts as a significant disincentive for diversification. Statement 3 is correct. The recently announced Pradhan Mantri Dhan-Dhaanya Krishi Yojana specifically targets 100 low-productivity districts. Its stated focus areas include enhancing agricultural productivity, crop diversification, promoting sustainable practices, improving irrigation, and developing post-harvest storage infrastructure. This indicates a clear policy push towards diversification as part of improving agricultural outcomes. Statement 4 is incorrect. Emerging technologies play a crucial role in enabling crop diversification. Precision agriculture techniques allow for optimized use of inputs for different crops, making diversification more viable. Development and promotion of high-yielding, pest-resistant, and climate-resilient seeds (as aimed under the National Mission on High Yielding Seeds ) for diverse crops make them more attractive alternatives to traditional staples. Climate-resilient technologies developed under programs like NICRA explicitly include crop diversification strategies. Therefore, technology provides significant opportunities, not limitations, for diversification. Incorrect Solution: B Statement 1 is incorrect. Crop diversification is encouraged for precisely the opposite reason: to move away from the monoculture of water-intensive crops like rice and wheat, especially in ecologically stressed regions like Punjab and Haryana. The rationale includes promoting agricultural sustainability (conserving water, improving soil health), enhancing farmers’ resilience to climate change and market risks, improving nutrition (by growing pulses, millets, oilseeds, fruits, vegetables), and boosting farmer incomes. Statement 2 is correct. The existing Minimum Support Price (MSP) regime and associated government procurement operations have historically been heavily skewed towards paddy and wheat. This assured market and price support for these two crops has made farmers reluctant to diversify into other crops (like pulses, oilseeds, coarse cereals) where procurement is less assured and price realization is more uncertain, even if MSPs are announced for them. This acts as a significant disincentive for diversification. Statement 3 is correct. The recently announced Pradhan Mantri Dhan-Dhaanya Krishi Yojana specifically targets 100 low-productivity districts. Its stated focus areas include enhancing agricultural productivity, crop diversification, promoting sustainable practices, improving irrigation, and developing post-harvest storage infrastructure. This indicates a clear policy push towards diversification as part of improving agricultural outcomes. Statement 4 is incorrect. Emerging technologies play a crucial role in enabling crop diversification. Precision agriculture techniques allow for optimized use of inputs for different crops, making diversification more viable. Development and promotion of high-yielding, pest-resistant, and climate-resilient seeds (as aimed under the National Mission on High Yielding Seeds ) for diverse crops make them more attractive alternatives to traditional staples. Climate-resilient technologies developed under programs like NICRA explicitly include crop diversification strategies. Therefore, technology provides significant opportunities, not limitations, for diversification.

#### 4. Question

Consider the following statements regarding crop diversification in Indian agriculture:

• Crop diversification is primarily encouraged to maximize the production of water-intensive crops like rice and wheat, leveraging existing procurement infrastructure.

• The skewed MSP and procurement system, heavily favouring wheat and paddy, has historically acted as a major disincentive for crop diversification.

• The Pradhan Mantri Dhan-Dhaanya Krishi Yojana, launched recently, explicitly focuses on promoting crop diversification alongside enhancing productivity in low-productivity districts.

• Emerging technologies like precision agriculture and climate-resilient seeds offer limited scope for facilitating crop diversification in India.

Which of the statements given above is/are correct?

• (a) 2 only

• (b) 2 and 3 only

• (c) 1 and 4 only

• (d) 1, 2 and 3 only

Solution: B

• Statement 1 is incorrect. Crop diversification is encouraged for precisely the opposite reason: to move away from the monoculture of water-intensive crops like rice and wheat, especially in ecologically stressed regions like Punjab and Haryana. The rationale includes promoting agricultural sustainability (conserving water, improving soil health), enhancing farmers’ resilience to climate change and market risks, improving nutrition (by growing pulses, millets, oilseeds, fruits, vegetables), and boosting farmer incomes.

• Statement 2 is correct. The existing Minimum Support Price (MSP) regime and associated government procurement operations have historically been heavily skewed towards paddy and wheat. This assured market and price support for these two crops has made farmers reluctant to diversify into other crops (like pulses, oilseeds, coarse cereals) where procurement is less assured and price realization is more uncertain, even if MSPs are announced for them. This acts as a significant disincentive for diversification.

• Statement 3 is correct. The recently announced Pradhan Mantri Dhan-Dhaanya Krishi Yojana specifically targets 100 low-productivity districts. Its stated focus areas include enhancing agricultural productivity, crop diversification, promoting sustainable practices, improving irrigation, and developing post-harvest storage infrastructure. This indicates a clear policy push towards diversification as part of improving agricultural outcomes.

• Statement 4 is incorrect. Emerging technologies play a crucial role in enabling crop diversification. Precision agriculture techniques allow for optimized use of inputs for different crops, making diversification more viable. Development and promotion of high-yielding, pest-resistant, and climate-resilient seeds (as aimed under the National Mission on High Yielding Seeds ) for diverse crops make them more attractive alternatives to traditional staples. Climate-resilient technologies developed under programs like NICRA explicitly include crop diversification strategies. Therefore, technology provides significant opportunities, not limitations, for diversification.

Solution: B

• Question 5 of 30 5. Question 1 points Consider the following statements regarding the National Mission on Natural Farming (NMNF): NMNF promotes a chemical-free farming system that strictly excludes the use of all externally purchased inputs, including certified organic or biological inputs. The mission aims to cover 7.5 lakh hectares under natural farming by establishing 15,000 clusters across willing Gram Panchayats during the 15th Finance Commission period. Under NMNF, financial assistance is provided to farmers primarily for purchasing desi cow breeds essential for preparing on-farm inputs like Jeevamrut. The institutional structure for NMNF involves only central government agencies, with limited roles defined for state governments or Krishi Vigyan Kendras (KVKs). Which of the statements given above are correct? (a) 1 and 2 only (b) 3 and 4 only (c) 1, 2 and 4 only (d) 1, 2, 3 and 4 Correct Solution: A Statement 1 is correct. Natural Farming, as promoted under NMNF and based on the Bhartiya Prakratik Krishi Paddhati (BPKP), is defined as a chemical-free system that emphasizes the use of on-farm inputs derived from desi cows (dung/urine formulations like Beejamrut, Jeevamrut), biomass mulching, multi-cropping, and indigenous practices. A key distinction from organic farming is its explicit exclusion of all purchased inputs, whether chemical, organic, or biological. Organic farming, while chemical-free, allows the use of certified off-farm organic/biological inputs. Statement 2 is correct. The NMNF, approved as a Centrally Sponsored Scheme with an outlay of ₹2481 crore until the end of the 15th Finance Commission period (FY 2025-26), aims to encourage 1 crore farmers to adopt Natural Farming. The implementation strategy involves creating 15,000 clusters in willing Gram Panchayats to initiate natural farming practices in 7.5 lakh hectares and train farmers. Statement 3 is incorrect. While NMNF emphasizes livestock integration, particularly desi cows, for input preparation , the direct financial assistance provided to farmers under the scheme is primarily for creating on-farm manure production infrastructure (₹15,000 per ha over 3 years via DBT), not specifically for purchasing cows. The scheme focuses on leveraging existing resources and promoting integrated models. Statement 4 is incorrect. NMNF involves a multi-tiered institutional structure with significant roles for both central and state entities. At the national level, there’s a National Steering Committee (NSC) and National Executive Committee (NEC). At the state level, implementation is overseen by a State Level Sanctioning Committee and State Level Executive Committee, with states designating implementing agencies. District-level committees chaired by the District Collector supervise implementation. Importantly, the mission explicitly aims to strengthen the capacities of ICAR institutions, Krishi Vigyan Kendras (KVKs), and State Agricultural Universities (SAUs) for research and extension related to natural farming. Incorrect Solution: A Statement 1 is correct. Natural Farming, as promoted under NMNF and based on the Bhartiya Prakratik Krishi Paddhati (BPKP), is defined as a chemical-free system that emphasizes the use of on-farm inputs derived from desi cows (dung/urine formulations like Beejamrut, Jeevamrut), biomass mulching, multi-cropping, and indigenous practices. A key distinction from organic farming is its explicit exclusion of all purchased inputs, whether chemical, organic, or biological. Organic farming, while chemical-free, allows the use of certified off-farm organic/biological inputs. Statement 2 is correct. The NMNF, approved as a Centrally Sponsored Scheme with an outlay of ₹2481 crore until the end of the 15th Finance Commission period (FY 2025-26), aims to encourage 1 crore farmers to adopt Natural Farming. The implementation strategy involves creating 15,000 clusters in willing Gram Panchayats to initiate natural farming practices in 7.5 lakh hectares and train farmers. Statement 3 is incorrect. While NMNF emphasizes livestock integration, particularly desi cows, for input preparation , the direct financial assistance provided to farmers under the scheme is primarily for creating on-farm manure production infrastructure (₹15,000 per ha over 3 years via DBT), not specifically for purchasing cows. The scheme focuses on leveraging existing resources and promoting integrated models. Statement 4 is incorrect. NMNF involves a multi-tiered institutional structure with significant roles for both central and state entities. At the national level, there’s a National Steering Committee (NSC) and National Executive Committee (NEC). At the state level, implementation is overseen by a State Level Sanctioning Committee and State Level Executive Committee, with states designating implementing agencies. District-level committees chaired by the District Collector supervise implementation. Importantly, the mission explicitly aims to strengthen the capacities of ICAR institutions, Krishi Vigyan Kendras (KVKs), and State Agricultural Universities (SAUs) for research and extension related to natural farming.

#### 5. Question

Consider the following statements regarding the National Mission on Natural Farming (NMNF):

• NMNF promotes a chemical-free farming system that strictly excludes the use of all externally purchased inputs, including certified organic or biological inputs.

• The mission aims to cover 7.5 lakh hectares under natural farming by establishing 15,000 clusters across willing Gram Panchayats during the 15th Finance Commission period.

• Under NMNF, financial assistance is provided to farmers primarily for purchasing desi cow breeds essential for preparing on-farm inputs like Jeevamrut.

• The institutional structure for NMNF involves only central government agencies, with limited roles defined for state governments or Krishi Vigyan Kendras (KVKs).

Which of the statements given above are correct?

• (a) 1 and 2 only

• (b) 3 and 4 only

• (c) 1, 2 and 4 only

• (d) 1, 2, 3 and 4

Solution: A

• Statement 1 is correct. Natural Farming, as promoted under NMNF and based on the Bhartiya Prakratik Krishi Paddhati (BPKP), is defined as a chemical-free system that emphasizes the use of on-farm inputs derived from desi cows (dung/urine formulations like Beejamrut, Jeevamrut), biomass mulching, multi-cropping, and indigenous practices. A key distinction from organic farming is its explicit exclusion of all purchased inputs, whether chemical, organic, or biological. Organic farming, while chemical-free, allows the use of certified off-farm organic/biological inputs.

• Statement 2 is correct. The NMNF, approved as a Centrally Sponsored Scheme with an outlay of ₹2481 crore until the end of the 15th Finance Commission period (FY 2025-26), aims to encourage 1 crore farmers to adopt Natural Farming. The implementation strategy involves creating 15,000 clusters in willing Gram Panchayats to initiate natural farming practices in 7.5 lakh hectares and train farmers.

• Statement 3 is incorrect. While NMNF emphasizes livestock integration, particularly desi cows, for input preparation , the direct financial assistance provided to farmers under the scheme is primarily for creating on-farm manure production infrastructure (₹15,000 per ha over 3 years via DBT), not specifically for purchasing cows. The scheme focuses on leveraging existing resources and promoting integrated models.

• Statement 4 is incorrect. NMNF involves a multi-tiered institutional structure with significant roles for both central and state entities. At the national level, there’s a National Steering Committee (NSC) and National Executive Committee (NEC). At the state level, implementation is overseen by a State Level Sanctioning Committee and State Level Executive Committee, with states designating implementing agencies. District-level committees chaired by the District Collector supervise implementation. Importantly, the mission explicitly aims to strengthen the capacities of ICAR institutions, Krishi Vigyan Kendras (KVKs), and State Agricultural Universities (SAUs) for research and extension related to natural farming.

Solution: A

• Question 6 of 30 6. Question 1 points Consider the following statements regarding agricultural subsidies in India: Fertilizer subsidy provided by the government on Urea is classified as an indirect farm subsidy, while the subsidy on Phosphatic (P) and Potassic (K) fertilizers under the Nutrient Based Subsidy (NBS) scheme is a direct cash transfer to farmers. The government recently approved significantly increased subsidy rates for P and K fertilizers for the Kharif season 2025 compared to the Rabi season 2024-25, citing rising international prices of inputs. The objective of providing fertilizer subsidies is solely to reduce the fiscal burden on the government. Which of the statements given above is/are correct? (a) 2 only (b) 1 and 2 only (c) 3 only (d) 1, 2 and 3 Correct Solution: A Statement 1 is incorrect. Both the subsidy on Urea (where the Maximum Retail Price (MRP) is fixed low by the government, and the difference with cost is paid to manufacturers/importers) and the subsidy under the Nutrient Based Subsidy (NBS) scheme for P&K fertilizers are generally classified as indirect subsidies. Under NBS, the government fixes a per-kilogram subsidy for various nutrients (N, P, K, S), and manufacturers are allowed to fix the retail price, theoretically reflecting market conditions to some extent, but the subsidy amount is paid to the companies, not directly as cash to farmers. Direct subsidies would typically involve cash transfers like PM-KISAN or DBT for specific inputs. Statement 2 is correct. For the Kharif season 2025 (April-September), the Indian government approved a total budget of Rs 372.16 billion for P&K fertilizer subsidies, significantly higher than the allocation for Rabi 2024-25 and Kharif 2024. Specifically, the per kg subsidy for Phosphate (P2O5) was increased by 42% from Rs 30.80/kg (Rabi 2024-25) to Rs 43.60/kg (Kharif 2025). The subsidy for Potash (MOP) remained unchanged at Rs 2.38/kg, and Nitrogen (N) also remained unchanged at Rs 43.02/kg. This hike was attributed to recent trends in international fertilizer and input prices. The subsidy for DAP (a key phosphatic fertilizer) consequently increased significantly. The Rabi 2024-25 subsidies had involved an increase for P and decreases for N and S compared to the previous season. Statement 3 is incorrect. The primary objective of providing fertilizer subsidies is not to reduce the fiscal burden; in fact, subsidies represent a significant fiscal cost to the government. The main objectives are to make essential fertilizers available to farmers at affordable prices, thereby encouraging their use to boost agricultural productivity and ensure food security, and to support farmers’ incomes by reducing their input costs. While managing the fiscal burden is a concern, it is a constraint or consequence, not the primary objective of the subsidy itself. Incorrect Solution: A Statement 1 is incorrect. Both the subsidy on Urea (where the Maximum Retail Price (MRP) is fixed low by the government, and the difference with cost is paid to manufacturers/importers) and the subsidy under the Nutrient Based Subsidy (NBS) scheme for P&K fertilizers are generally classified as indirect subsidies. Under NBS, the government fixes a per-kilogram subsidy for various nutrients (N, P, K, S), and manufacturers are allowed to fix the retail price, theoretically reflecting market conditions to some extent, but the subsidy amount is paid to the companies, not directly as cash to farmers. Direct subsidies would typically involve cash transfers like PM-KISAN or DBT for specific inputs. Statement 2 is correct. For the Kharif season 2025 (April-September), the Indian government approved a total budget of Rs 372.16 billion for P&K fertilizer subsidies, significantly higher than the allocation for Rabi 2024-25 and Kharif 2024. Specifically, the per kg subsidy for Phosphate (P2O5) was increased by 42% from Rs 30.80/kg (Rabi 2024-25) to Rs 43.60/kg (Kharif 2025). The subsidy for Potash (MOP) remained unchanged at Rs 2.38/kg, and Nitrogen (N) also remained unchanged at Rs 43.02/kg. This hike was attributed to recent trends in international fertilizer and input prices. The subsidy for DAP (a key phosphatic fertilizer) consequently increased significantly. The Rabi 2024-25 subsidies had involved an increase for P and decreases for N and S compared to the previous season. Statement 3 is incorrect. The primary objective of providing fertilizer subsidies is not to reduce the fiscal burden; in fact, subsidies represent a significant fiscal cost to the government. The main objectives are to make essential fertilizers available to farmers at affordable prices, thereby encouraging their use to boost agricultural productivity and ensure food security, and to support farmers’ incomes by reducing their input costs. While managing the fiscal burden is a concern, it is a constraint or consequence, not the primary objective of the subsidy itself.

#### 6. Question

Consider the following statements regarding agricultural subsidies in India:

• Fertilizer subsidy provided by the government on Urea is classified as an indirect farm subsidy, while the subsidy on Phosphatic (P) and Potassic (K) fertilizers under the Nutrient Based Subsidy (NBS) scheme is a direct cash transfer to farmers.

• The government recently approved significantly increased subsidy rates for P and K fertilizers for the Kharif season 2025 compared to the Rabi season 2024-25, citing rising international prices of inputs.

• The objective of providing fertilizer subsidies is solely to reduce the fiscal burden on the government.

Which of the statements given above is/are correct?

• (a) 2 only

• (b) 1 and 2 only

• (c) 3 only

• (d) 1, 2 and 3

Solution: A

• Statement 1 is incorrect. Both the subsidy on Urea (where the Maximum Retail Price (MRP) is fixed low by the government, and the difference with cost is paid to manufacturers/importers) and the subsidy under the Nutrient Based Subsidy (NBS) scheme for P&K fertilizers are generally classified as indirect subsidies. Under NBS, the government fixes a per-kilogram subsidy for various nutrients (N, P, K, S), and manufacturers are allowed to fix the retail price, theoretically reflecting market conditions to some extent, but the subsidy amount is paid to the companies, not directly as cash to farmers. Direct subsidies would typically involve cash transfers like PM-KISAN or DBT for specific inputs.

• Statement 2 is correct. For the Kharif season 2025 (April-September), the Indian government approved a total budget of Rs 372.16 billion for P&K fertilizer subsidies, significantly higher than the allocation for Rabi 2024-25 and Kharif 2024. Specifically, the per kg subsidy for Phosphate (P2O5) was increased by 42% from Rs 30.80/kg (Rabi 2024-25) to Rs 43.60/kg (Kharif 2025). The subsidy for Potash (MOP) remained unchanged at Rs 2.38/kg, and Nitrogen (N) also remained unchanged at Rs 43.02/kg. This hike was attributed to recent trends in international fertilizer and input prices. The subsidy for DAP (a key phosphatic fertilizer) consequently increased significantly. The Rabi 2024-25 subsidies had involved an increase for P and decreases for N and S compared to the previous season.

• Statement 3 is incorrect. The primary objective of providing fertilizer subsidies is not to reduce the fiscal burden; in fact, subsidies represent a significant fiscal cost to the government. The main objectives are to make essential fertilizers available to farmers at affordable prices, thereby encouraging their use to boost agricultural productivity and ensure food security, and to support farmers’ incomes by reducing their input costs. While managing the fiscal burden is a concern, it is a constraint or consequence, not the primary objective of the subsidy itself.

Solution: A

• Question 7 of 30 7. Question 1 points With reference to the e-National Agriculture Market (e-NAM) platform, consider the following statements: e-NAM aims to create a unified national market for agricultural commodities by integrating existing physical APMC mandis online. Inter-state trade on the e-NAM platform has become the dominant mode of transaction, significantly reducing the relevance of local mandi trade. Lack of adequate assaying labs and quality standardization infrastructure in integrated mandis remains a significant challenge for the effective functioning of e-NAM. Recent amendments to the Tamil Nadu APMC Act facilitate inter-state trade on e-NAM by allowing traders with unified licenses from other e-NAM states to trade specific commodities in Tamil Nadu mandis. Which of the statements given above are correct? (a) 1 and 4 only (b) 1, 3 and 4 only (c) 2 and 3 only (d) 1, 2, 3 and 4 Correct Solution: B Statement 1 is correct. The core objective of e-NAM, launched in 2016, is to create a unified national market for agricultural commodities by networking existing Agricultural Produce Market Committee (APMC) mandis across different states through an online trading portal. It aims to promote uniformity, streamline marketing procedures, remove information asymmetry, and facilitate better price discovery. Statement 2 is incorrect. While e-NAM facilitates inter-mandi and inter-state trade, local trade within the mandi remains significant. Reports suggest that inter-state trade on the platform is still minimal. A study analyzing e-NAM progress in Haryana (up to 2020-21) indicated mixed adoption levels and infrastructure gaps, suggesting that local trade dynamics persist. Recent initiatives, like allowing traders to procure potatoes from UP e-NAM mandis without needing a separate state license, aim to promote inter-state trade, implying it is not yet the dominant mode. Financial Express reported that eNAM remains local, with inter-state trade being minimal and halving in FY25. Statement 3 is correct. Effective online trading, especially inter-mandi and inter-state, relies heavily on buyers trusting the quality of the produce listed. Lack of sufficient assaying (quality testing) facilities and standardized quality parameters across mandis is a widely recognized challenge hindering the seamless functioning and expansion of e-NAM. While the Haryana study noted progress in assaying labs, it also highlighted insufficient integration of other key infrastructure. Without reliable quality assessment, buyers are hesitant to bid for produce from distant mandis. Statement 4 is correct. To promote inter-state trade via e-NAM, the Tamil Nadu Department of Agriculture Marketing & Agri-Business amended the TN-APMC Act. This amendment specifically allows traders holding a unified license from other e-NAM participating states/UTs to trade in designated commodities (Copra, Groundnut, Turmeric, Cotton, Maize, Paddy, Bajra, Moth) within Tamil Nadu’s e-NAM mandis. This is a concrete step towards facilitating cross-border transactions on the platform. Incorrect Solution: B Statement 1 is correct. The core objective of e-NAM, launched in 2016, is to create a unified national market for agricultural commodities by networking existing Agricultural Produce Market Committee (APMC) mandis across different states through an online trading portal. It aims to promote uniformity, streamline marketing procedures, remove information asymmetry, and facilitate better price discovery. Statement 2 is incorrect. While e-NAM facilitates inter-mandi and inter-state trade, local trade within the mandi remains significant. Reports suggest that inter-state trade on the platform is still minimal. A study analyzing e-NAM progress in Haryana (up to 2020-21) indicated mixed adoption levels and infrastructure gaps, suggesting that local trade dynamics persist. Recent initiatives, like allowing traders to procure potatoes from UP e-NAM mandis without needing a separate state license, aim to promote inter-state trade, implying it is not yet the dominant mode. Financial Express reported that eNAM remains local, with inter-state trade being minimal and halving in FY25. Statement 3 is correct. Effective online trading, especially inter-mandi and inter-state, relies heavily on buyers trusting the quality of the produce listed. Lack of sufficient assaying (quality testing) facilities and standardized quality parameters across mandis is a widely recognized challenge hindering the seamless functioning and expansion of e-NAM. While the Haryana study noted progress in assaying labs, it also highlighted insufficient integration of other key infrastructure. Without reliable quality assessment, buyers are hesitant to bid for produce from distant mandis. Statement 4 is correct. To promote inter-state trade via e-NAM, the Tamil Nadu Department of Agriculture Marketing & Agri-Business amended the TN-APMC Act. This amendment specifically allows traders holding a unified license from other e-NAM participating states/UTs to trade in designated commodities (Copra, Groundnut, Turmeric, Cotton, Maize, Paddy, Bajra, Moth) within Tamil Nadu’s e-NAM mandis. This is a concrete step towards facilitating cross-border transactions on the platform.

#### 7. Question

With reference to the e-National Agriculture Market (e-NAM) platform, consider the following statements:

• e-NAM aims to create a unified national market for agricultural commodities by integrating existing physical APMC mandis online.

• Inter-state trade on the e-NAM platform has become the dominant mode of transaction, significantly reducing the relevance of local mandi trade.

• Lack of adequate assaying labs and quality standardization infrastructure in integrated mandis remains a significant challenge for the effective functioning of e-NAM.

• Recent amendments to the Tamil Nadu APMC Act facilitate inter-state trade on e-NAM by allowing traders with unified licenses from other e-NAM states to trade specific commodities in Tamil Nadu mandis.

Which of the statements given above are correct?

• (a) 1 and 4 only

• (b) 1, 3 and 4 only

• (c) 2 and 3 only

• (d) 1, 2, 3 and 4

Solution: B

• Statement 1 is correct. The core objective of e-NAM, launched in 2016, is to create a unified national market for agricultural commodities by networking existing Agricultural Produce Market Committee (APMC) mandis across different states through an online trading portal. It aims to promote uniformity, streamline marketing procedures, remove information asymmetry, and facilitate better price discovery.

• Statement 2 is incorrect. While e-NAM facilitates inter-mandi and inter-state trade, local trade within the mandi remains significant. Reports suggest that inter-state trade on the platform is still minimal. A study analyzing e-NAM progress in Haryana (up to 2020-21) indicated mixed adoption levels and infrastructure gaps, suggesting that local trade dynamics persist. Recent initiatives, like allowing traders to procure potatoes from UP e-NAM mandis without needing a separate state license, aim to promote inter-state trade, implying it is not yet the dominant mode. Financial Express reported that eNAM remains local, with inter-state trade being minimal and halving in FY25.

• Statement 3 is correct. Effective online trading, especially inter-mandi and inter-state, relies heavily on buyers trusting the quality of the produce listed. Lack of sufficient assaying (quality testing) facilities and standardized quality parameters across mandis is a widely recognized challenge hindering the seamless functioning and expansion of e-NAM. While the Haryana study noted progress in assaying labs, it also highlighted insufficient integration of other key infrastructure. Without reliable quality assessment, buyers are hesitant to bid for produce from distant mandis.

Statement 4 is correct. To promote inter-state trade via e-NAM, the Tamil Nadu Department of Agriculture Marketing & Agri-Business amended the TN-APMC Act. This amendment specifically allows traders holding a unified license from other e-NAM participating states/UTs to trade in designated commodities (Copra, Groundnut, Turmeric, Cotton, Maize, Paddy, Bajra, Moth) within Tamil Nadu’s e-NAM mandis. This is a concrete step towards facilitating cross-border transactions on the platform.

Solution: B

• Question 8 of 30 8. Question 1 points Consider the following statements regarding Farmer Producer Organizations (FPOs) in India and their promotion: The Central Sector Scheme “Formation and Promotion of 10,000 FPOs” aims primarily to provide direct subsidies to individual farmers for input purchase. Under the scheme, financial support includes matching equity grants to FPOs and a credit guarantee facility for loans taken by FPOs from eligible institutions. The Small Farmers’ Agribusiness Consortium (SFAC) and NABARD are the sole implementing agencies responsible for forming and promoting all 10,000 FPOs under the scheme. Primary Agricultural Credit Societies (PACS) are explicitly excluded from availing the credit guarantee facility provided under the 10,000 FPOs scheme framework. Which of the statements given above is/are correct? (a) 2 only (b) 1 and 3 only (c) 2 and 4 only (d) 1, 2 and 3 only Correct Solution: A Statement 1 is incorrect. The scheme focuses on forming and promoting FPOs as collective entities to leverage economies of scale in production and marketing, thereby enhancing farmers’ income and bargaining power. While FPOs may facilitate better input access for members, the scheme’s financial support is directed towards the FPO entity itself (for management costs, equity grants, credit guarantee) rather than providing direct input subsidies to individual farmers. Statement 2 is correct. The scheme provides significant financial assistance to the promoted FPOs. This includes handholding support for five years, management cost support (up to Rs. 18 lakh per FPO over 3 years), matching equity grants (up to Rs. 2,000 per farmer member, capped at Rs. 15 lakh per FPO), and a Credit Guarantee Facility (covering loans up to Rs. 2 crore per FPO) to improve their access to institutional credit. A dedicated Credit Guarantee Fund (CGF) has been created for this purpose. Statement 3 is incorrect. While SFAC and NABARD are major implementing agencies, they are not the sole ones. The scheme guidelines typically involve multiple implementing agencies (IAs). SFAC was initially mandated to support state governments in FPO formation. The guidelines mention the involvement of various agencies, and recent addendums refer to coordination among different implementing agencies. NCDC (National Cooperative Development Corporation) is often another key IA. The scheme involves convergence across ministries and agencies. Statement 4 is incorrect. Recent addendums to the operational guidelines explicitly state that Primary Agricultural Credit Societies (PACS) availing benefits under the World Bank assisted scheme (likely referring to a related agricultural project) can be permitted to avail the Credit Guarantee facility under the 10,000 FPOs scheme, subject to certain criteria and limits (e.g., up to 20% of available cover). This indicates convergence and inclusion, not exclusion, of eligible PACS. Incorrect Solution: A Statement 1 is incorrect. The scheme focuses on forming and promoting FPOs as collective entities to leverage economies of scale in production and marketing, thereby enhancing farmers’ income and bargaining power. While FPOs may facilitate better input access for members, the scheme’s financial support is directed towards the FPO entity itself (for management costs, equity grants, credit guarantee) rather than providing direct input subsidies to individual farmers. Statement 2 is correct. The scheme provides significant financial assistance to the promoted FPOs. This includes handholding support for five years, management cost support (up to Rs. 18 lakh per FPO over 3 years), matching equity grants (up to Rs. 2,000 per farmer member, capped at Rs. 15 lakh per FPO), and a Credit Guarantee Facility (covering loans up to Rs. 2 crore per FPO) to improve their access to institutional credit. A dedicated Credit Guarantee Fund (CGF) has been created for this purpose. Statement 3 is incorrect. While SFAC and NABARD are major implementing agencies, they are not the sole ones. The scheme guidelines typically involve multiple implementing agencies (IAs). SFAC was initially mandated to support state governments in FPO formation. The guidelines mention the involvement of various agencies, and recent addendums refer to coordination among different implementing agencies. NCDC (National Cooperative Development Corporation) is often another key IA. The scheme involves convergence across ministries and agencies. Statement 4 is incorrect. Recent addendums to the operational guidelines explicitly state that Primary Agricultural Credit Societies (PACS) availing benefits under the World Bank assisted scheme (likely referring to a related agricultural project) can be permitted to avail the Credit Guarantee facility under the 10,000 FPOs scheme, subject to certain criteria and limits (e.g., up to 20% of available cover). This indicates convergence and inclusion, not exclusion, of eligible PACS.

#### 8. Question

Consider the following statements regarding Farmer Producer Organizations (FPOs) in India and their promotion:

• The Central Sector Scheme “Formation and Promotion of 10,000 FPOs” aims primarily to provide direct subsidies to individual farmers for input purchase.

• Under the scheme, financial support includes matching equity grants to FPOs and a credit guarantee facility for loans taken by FPOs from eligible institutions.

• The Small Farmers’ Agribusiness Consortium (SFAC) and NABARD are the sole implementing agencies responsible for forming and promoting all 10,000 FPOs under the scheme.

• Primary Agricultural Credit Societies (PACS) are explicitly excluded from availing the credit guarantee facility provided under the 10,000 FPOs scheme framework.

Which of the statements given above is/are correct?

• (a) 2 only

• (b) 1 and 3 only

• (c) 2 and 4 only

• (d) 1, 2 and 3 only

Solution: A

• Statement 1 is incorrect. The scheme focuses on forming and promoting FPOs as collective entities to leverage economies of scale in production and marketing, thereby enhancing farmers’ income and bargaining power. While FPOs may facilitate better input access for members, the scheme’s financial support is directed towards the FPO entity itself (for management costs, equity grants, credit guarantee) rather than providing direct input subsidies to individual farmers.

• Statement 2 is correct. The scheme provides significant financial assistance to the promoted FPOs. This includes handholding support for five years, management cost support (up to Rs. 18 lakh per FPO over 3 years), matching equity grants (up to Rs. 2,000 per farmer member, capped at Rs. 15 lakh per FPO), and a Credit Guarantee Facility (covering loans up to Rs. 2 crore per FPO) to improve their access to institutional credit. A dedicated Credit Guarantee Fund (CGF) has been created for this purpose.

• Statement 3 is incorrect. While SFAC and NABARD are major implementing agencies, they are not the sole ones. The scheme guidelines typically involve multiple implementing agencies (IAs). SFAC was initially mandated to support state governments in FPO formation. The guidelines mention the involvement of various agencies, and recent addendums refer to coordination among different implementing agencies. NCDC (National Cooperative Development Corporation) is often another key IA. The scheme involves convergence across ministries and agencies.

• Statement 4 is incorrect. Recent addendums to the operational guidelines explicitly state that Primary Agricultural Credit Societies (PACS) availing benefits under the World Bank assisted scheme (likely referring to a related agricultural project) can be permitted to avail the Credit Guarantee facility under the 10,000 FPOs scheme, subject to certain criteria and limits (e.g., up to 20% of available cover). This indicates convergence and inclusion, not exclusion, of eligible PACS.

Solution: A

• Question 9 of 30 9. Question 1 points Consider the following statements regarding the Reserve Bank of India’s (RBI) Scale-Based Regulation (SBR) framework for Non-Banking Financial Companies (NBFCs): The SBR framework classifies all NBFCs into four layers – Base Layer (BL), Middle Layer (ML), Upper Layer (UL), and Top Layer (TL) – based primarily on their deposit-taking status. NBFCs identified for the Upper Layer (NBFC-UL) are subject to enhanced regulatory and supervisory requirements comparable to those for banks, including mandatory listing within a specified timeframe. The Top Layer (NBFC-TL) currently includes the five largest NBFCs by asset size, which are deemed systemically most significant. Once classified as NBFC-UL, an entity remains subject to the enhanced regulatory requirements for a minimum period, even if its size or risk profile subsequently decreases below the threshold. Which of the statements given above are correct? (a) 1 and 3 only (b) 2 and 4 only (c) 1, 2 and 4 only (d) 2, 3 and 4 only Correct Solution: B Statement 1 is incorrect. The SBR framework classifies NBFCs into four layers, but the classification is based on a combination of factors including asset size, type of activity, and perceived systemic significance, not just deposit-taking status. For instance, the Base Layer (NBFC-BL) includes non-deposit taking NBFCs below ₹1000 crore asset size and specific types like P2P lenders and Account Aggregators. The Middle Layer (NBFC-ML) includes all deposit-taking NBFCs (irrespective of size) and non-deposit taking NBFCs with assets ₹1000 crore and above, plus others like Core Investment Companies (CICs), Infrastructure Finance Companies (IFCs), etc.. The Upper Layer (NBFC-UL) is identified based on asset size and a scoring methodology. Statement 2 is correct. NBFCs in the Upper Layer are identified as having significant systemic importance. Consequently, they are subjected to enhanced regulatory requirements, which are designed to be more stringent and closer to bank-level regulations. This includes higher capital requirements, stricter corporate governance and disclosure norms, and specific prudential regulations. A key requirement introduced under SBR is that unlisted NBFC-ULs must mandatorily list on a stock exchange within three years of being classified as UL. Statement 3 is incorrect. The Top Layer (NBFC-TL) is intended to be ideally empty. It is reserved for NBFCs in the Upper Layer whose potential systemic risk is judged by the RBI to have increased substantially, warranting even higher supervision. Placement in the Top Layer is at the RBI’s discretion under exceptional circumstances and is not automatically populated by the largest NBFCs. The Upper Layer itself includes the top ten NBFCs by asset size automatically, plus others identified through scoring. Statement 4 is correct. The SBR framework explicitly states that once an NBFC is classified as NBFC-UL, it remains subject to the enhanced regulatory requirements applicable to that layer for a minimum period of five years, irrespective of whether it continues to meet the parametric criteria (like asset size or score) in subsequent years. This ensures regulatory stability and prevents frequent shifting between layers. Incorrect Solution: B Statement 1 is incorrect. The SBR framework classifies NBFCs into four layers, but the classification is based on a combination of factors including asset size, type of activity, and perceived systemic significance, not just deposit-taking status. For instance, the Base Layer (NBFC-BL) includes non-deposit taking NBFCs below ₹1000 crore asset size and specific types like P2P lenders and Account Aggregators. The Middle Layer (NBFC-ML) includes all deposit-taking NBFCs (irrespective of size) and non-deposit taking NBFCs with assets ₹1000 crore and above, plus others like Core Investment Companies (CICs), Infrastructure Finance Companies (IFCs), etc.. The Upper Layer (NBFC-UL) is identified based on asset size and a scoring methodology. Statement 2 is correct. NBFCs in the Upper Layer are identified as having significant systemic importance. Consequently, they are subjected to enhanced regulatory requirements, which are designed to be more stringent and closer to bank-level regulations. This includes higher capital requirements, stricter corporate governance and disclosure norms, and specific prudential regulations. A key requirement introduced under SBR is that unlisted NBFC-ULs must mandatorily list on a stock exchange within three years of being classified as UL. Statement 3 is incorrect. The Top Layer (NBFC-TL) is intended to be ideally empty. It is reserved for NBFCs in the Upper Layer whose potential systemic risk is judged by the RBI to have increased substantially, warranting even higher supervision. Placement in the Top Layer is at the RBI’s discretion under exceptional circumstances and is not automatically populated by the largest NBFCs. The Upper Layer itself includes the top ten NBFCs by asset size automatically, plus others identified through scoring. Statement 4 is correct. The SBR framework explicitly states that once an NBFC is classified as NBFC-UL, it remains subject to the enhanced regulatory requirements applicable to that layer for a minimum period of five years, irrespective of whether it continues to meet the parametric criteria (like asset size or score) in subsequent years. This ensures regulatory stability and prevents frequent shifting between layers. Statement 1 is incorrect. The applicability of the PCA framework is differentiated. The revised framework effective Jan 2022 applies to Scheduled Commercial Banks (SCBs) excluding Regional Rural Banks (RRBs), Small Finance Banks, and Payment Banks. A separate, distinct PCA framework was introduced for Urban Cooperative Banks (UCBs) (Tiers 2, 3, 4), effective April 2025. RRBs might have separate guidelines from NABARD/RBI. Statement 2 is correct. The revised PCA framework for SCBs (effective Jan 2022) removed Return on Assets (RoA) as one of the trigger parameters. The focus shifted to Capital, Asset Quality, and Leverage. (Note: However, the PCA framework for UCBs does include profitability – losses for two consecutive years – as a trigger). Statement 3 is correct. The revised PCA framework for SCBs explicitly introduced the Tier 1 Leverage Ratio as the third key monitoring area, alongside Capital (CRAR/CET1) and Asset Quality (Net NPA ratio). Specific thresholds for leverage were defined. Statement 4 is incorrect. Exit from the PCA framework (for SCBs) requires a bank to show sustained improvement. The condition is that there should be no breaches in risk thresholds in any of the parameters (Capital, Asset Quality, and Leverage) for four continuous quarterly financial statements, one of which must be an Audited Annual Financial Statement. A similar four-quarter requirement applies for UCBs. RBI also assesses the sustainability of the improvement.

#### 9. Question

Consider the following statements regarding the Reserve Bank of India’s (RBI) Scale-Based Regulation (SBR) framework for Non-Banking Financial Companies (NBFCs):

• The SBR framework classifies all NBFCs into four layers – Base Layer (BL), Middle Layer (ML), Upper Layer (UL), and Top Layer (TL) – based primarily on their deposit-taking status.

• NBFCs identified for the Upper Layer (NBFC-UL) are subject to enhanced regulatory and supervisory requirements comparable to those for banks, including mandatory listing within a specified timeframe.

• The Top Layer (NBFC-TL) currently includes the five largest NBFCs by asset size, which are deemed systemically most significant.

• Once classified as NBFC-UL, an entity remains subject to the enhanced regulatory requirements for a minimum period, even if its size or risk profile subsequently decreases below the threshold.

Which of the statements given above are correct?

• (a) 1 and 3 only

• (b) 2 and 4 only

• (c) 1, 2 and 4 only

• (d) 2, 3 and 4 only

Solution: B

• Statement 1 is incorrect. The SBR framework classifies NBFCs into four layers, but the classification is based on a combination of factors including asset size, type of activity, and perceived systemic significance, not just deposit-taking status. For instance, the Base Layer (NBFC-BL) includes non-deposit taking NBFCs below ₹1000 crore asset size and specific types like P2P lenders and Account Aggregators. The Middle Layer (NBFC-ML) includes all deposit-taking NBFCs (irrespective of size) and non-deposit taking NBFCs with assets ₹1000 crore and above, plus others like Core Investment Companies (CICs), Infrastructure Finance Companies (IFCs), etc.. The Upper Layer (NBFC-UL) is identified based on asset size and a scoring methodology.

• Statement 2 is correct. NBFCs in the Upper Layer are identified as having significant systemic importance. Consequently, they are subjected to enhanced regulatory requirements, which are designed to be more stringent and closer to bank-level regulations. This includes higher capital requirements, stricter corporate governance and disclosure norms, and specific prudential regulations. A key requirement introduced under SBR is that unlisted NBFC-ULs must mandatorily list on a stock exchange within three years of being classified as UL.

• Statement 3 is incorrect. The Top Layer (NBFC-TL) is intended to be ideally empty. It is reserved for NBFCs in the Upper Layer whose potential systemic risk is judged by the RBI to have increased substantially, warranting even higher supervision. Placement in the Top Layer is at the RBI’s discretion under exceptional circumstances and is not automatically populated by the largest NBFCs. The Upper Layer itself includes the top ten NBFCs by asset size automatically, plus others identified through scoring.

• Statement 4 is correct. The SBR framework explicitly states that once an NBFC is classified as NBFC-UL, it remains subject to the enhanced regulatory requirements applicable to that layer for a minimum period of five years, irrespective of whether it continues to meet the parametric criteria (like asset size or score) in subsequent years. This ensures regulatory stability and prevents frequent shifting between layers.

Solution: B

• Statement 1 is incorrect. The applicability of the PCA framework is differentiated. The revised framework effective Jan 2022 applies to Scheduled Commercial Banks (SCBs) excluding Regional Rural Banks (RRBs), Small Finance Banks, and Payment Banks. A separate, distinct PCA framework was introduced for Urban Cooperative Banks (UCBs) (Tiers 2, 3, 4), effective April 2025. RRBs might have separate guidelines from NABARD/RBI.

• Statement 2 is correct. The revised PCA framework for SCBs (effective Jan 2022) removed Return on Assets (RoA) as one of the trigger parameters. The focus shifted to Capital, Asset Quality, and Leverage. (Note: However, the PCA framework for UCBs does include profitability – losses for two consecutive years – as a trigger).

• Statement 3 is correct. The revised PCA framework for SCBs explicitly introduced the Tier 1 Leverage Ratio as the third key monitoring area, alongside Capital (CRAR/CET1) and Asset Quality (Net NPA ratio). Specific thresholds for leverage were defined.

Statement 4 is incorrect. Exit from the PCA framework (for SCBs) requires a bank to show sustained improvement. The condition is that there should be no breaches in risk thresholds in any of the parameters (Capital, Asset Quality, and Leverage) for four continuous quarterly financial statements, one of which must be an Audited Annual Financial Statement. A similar four-quarter requirement applies for UCBs. RBI also assesses the sustainability of the improvement.

• Question 10 of 30 10. Question 1 points Consider the following statements regarding Development Finance Institutions (DFIs) in India, with a focus on the National Bank for Financing Infrastructure and Development (NaBFID): NaBFID was established under the NaBFID Act, 2021, primarily to provide short-term working capital finance to manufacturing industries. NaBFID functions as an All-India Financial Institution (AIFI) and aims to attract private sector and institutional investment into infrastructure projects alongside its direct lending activities. NaBFID’s loan sanctions were primarily concentrated in the social infrastructure sectors like hospitals and education. A key developmental objective of NaBFID is to help develop deep and liquid bond and derivatives markets specifically for infrastructure financing in India. Which of the statements given above are correct? (a) 1 and 3 only (b) 2 and 4 only (c) 1, 2 and 4 only (d) 2, 3 and 4 only Correct Solution: B Statement 1 is incorrect. NaBFID was established by the NaBFID Act, 2021, as a specialized DFI specifically to address the long-term financing needs of the infrastructure sector in India, not short-term working capital for manufacturing. Its focus is on large-scale infrastructure projects requiring patient capital. Statement 2 is correct. NaBFID was granted the status of an All India Financial Institution (AIFI) by the RBI in March 2022. Its objectives are explicitly stated as both financial (directly or indirectly financing infrastructure) and developmental, which includes attracting private and institutional investment into the sector. It aims to crowd-in private investment. Statement 3 is incorrect. While NaBFID’s mandate includes social infrastructure, its loan sanctions as of September 30, 2024 (amounting to ₹1.3 lakh crore) were predominantly directed towards the road and energy sectors, including renewable energy, which accounted for over three-fourths of the approved loans. Social and commercial sectors like hospitals were part of its identified pipeline but not the primary recipients of sanctions initially. Statement 4 is correct. Beyond direct lending, a crucial developmental objective outlined for NaBFID is to actively work towards developing deep and liquid markets for bonds, loans, and derivatives specifically tailored for infrastructure financing. This includes facilitating relevant electronic and negotiated markets to improve the overall ecosystem for infrastructure funding. Incorrect Solution: B Statement 1 is incorrect. NaBFID was established by the NaBFID Act, 2021, as a specialized DFI specifically to address the long-term financing needs of the infrastructure sector in India, not short-term working capital for manufacturing. Its focus is on large-scale infrastructure projects requiring patient capital. Statement 2 is correct. NaBFID was granted the status of an All India Financial Institution (AIFI) by the RBI in March 2022. Its objectives are explicitly stated as both financial (directly or indirectly financing infrastructure) and developmental, which includes attracting private and institutional investment into the sector. It aims to crowd-in private investment. Statement 3 is incorrect. While NaBFID’s mandate includes social infrastructure, its loan sanctions as of September 30, 2024 (amounting to ₹1.3 lakh crore) were predominantly directed towards the road and energy sectors, including renewable energy, which accounted for over three-fourths of the approved loans. Social and commercial sectors like hospitals were part of its identified pipeline but not the primary recipients of sanctions initially. Statement 4 is correct. Beyond direct lending, a crucial developmental objective outlined for NaBFID is to actively work towards developing deep and liquid markets for bonds, loans, and derivatives specifically tailored for infrastructure financing. This includes facilitating relevant electronic and negotiated markets to improve the overall ecosystem for infrastructure funding.

#### 10. Question

Consider the following statements regarding Development Finance Institutions (DFIs) in India, with a focus on the National Bank for Financing Infrastructure and Development (NaBFID):

• NaBFID was established under the NaBFID Act, 2021, primarily to provide short-term working capital finance to manufacturing industries.

• NaBFID functions as an All-India Financial Institution (AIFI) and aims to attract private sector and institutional investment into infrastructure projects alongside its direct lending activities.

• NaBFID’s loan sanctions were primarily concentrated in the social infrastructure sectors like hospitals and education.

• A key developmental objective of NaBFID is to help develop deep and liquid bond and derivatives markets specifically for infrastructure financing in India.

Which of the statements given above are correct?

• (a) 1 and 3 only

• (b) 2 and 4 only

• (c) 1, 2 and 4 only

• (d) 2, 3 and 4 only

Solution: B

• Statement 1 is incorrect. NaBFID was established by the NaBFID Act, 2021, as a specialized DFI specifically to address the long-term financing needs of the infrastructure sector in India, not short-term working capital for manufacturing. Its focus is on large-scale infrastructure projects requiring patient capital.

• Statement 2 is correct. NaBFID was granted the status of an All India Financial Institution (AIFI) by the RBI in March 2022. Its objectives are explicitly stated as both financial (directly or indirectly financing infrastructure) and developmental, which includes attracting private and institutional investment into the sector. It aims to crowd-in private investment.

• Statement 3 is incorrect. While NaBFID’s mandate includes social infrastructure, its loan sanctions as of September 30, 2024 (amounting to ₹1.3 lakh crore) were predominantly directed towards the road and energy sectors, including renewable energy, which accounted for over three-fourths of the approved loans. Social and commercial sectors like hospitals were part of its identified pipeline but not the primary recipients of sanctions initially.

Statement 4 is correct. Beyond direct lending, a crucial developmental objective outlined for NaBFID is to actively work towards developing deep and liquid markets for bonds, loans, and derivatives specifically tailored for infrastructure financing. This includes facilitating relevant electronic and negotiated markets to improve the overall ecosystem for infrastructure funding.

Solution: B

• Question 11 of 30 11. Question 1 points Consider the following statements: Cardamom is a perennial herb belonging to the Ginger family. Cardamom is native to evergreen rainforests of Western Ghats in South India. Due to antimicrobial properties, cardamom-water solution is widely used as a weedicide. Which of the statements given above is/are correct? (a) 2 and 3 only (b) 2 only (c) 1 and 2 only (d) 1, 2 and 3 Correct Solution: C Cardamom is a perennial herb whose dried fruits are known as cardamom. It is a highly aromatic spice belonging to Zingiberaceae or ginger family. It is native to evergreen Rainforests of the Western Ghats in South India; primary cultivated in the states of Kerala, Karnataka and Tamil Nadu It requires temperature of 10°C to 35°C and grows best at an altitude between 600 to 1500 m above the sea level Acidic, liany and humus rich forest soils are good for its cultivation Kerala accounts for about 58% of cardamom production in India. Hence statements 1 and 2 are correct Cardamom has anti microbial property that can be helpful for relieving lung congestion in humans. But cardamom itself is not a weedicide or herbicide and cannot be used in agriculture for this purpose; it does not have weed killing properties. Hence statement 3 is incorrect Incorrect Solution: C Cardamom is a perennial herb whose dried fruits are known as cardamom. It is a highly aromatic spice belonging to Zingiberaceae or ginger family. It is native to evergreen Rainforests of the Western Ghats in South India; primary cultivated in the states of Kerala, Karnataka and Tamil Nadu It requires temperature of 10°C to 35°C and grows best at an altitude between 600 to 1500 m above the sea level Acidic, liany and humus rich forest soils are good for its cultivation Kerala accounts for about 58% of cardamom production in India. Hence statements 1 and 2 are correct Cardamom has anti microbial property that can be helpful for relieving lung congestion in humans. But cardamom itself is not a weedicide or herbicide and cannot be used in agriculture for this purpose; it does not have weed killing properties. Hence statement 3 is incorrect

#### 11. Question

Consider the following statements:

• Cardamom is a perennial herb belonging to the Ginger family.

• Cardamom is native to evergreen rainforests of Western Ghats in South India.

• Due to antimicrobial properties, cardamom-water solution is widely used as a weedicide.

Which of the statements given above is/are correct?

• (a) 2 and 3 only

• (b) 2 only

• (c) 1 and 2 only

• (d) 1, 2 and 3

Solution: C

• Cardamom is a perennial herb whose dried fruits are known as cardamom.

• It is a highly aromatic spice belonging to Zingiberaceae or ginger family.

• It is native to evergreen Rainforests of the Western Ghats in South India; primary cultivated in the states of Kerala, Karnataka and Tamil Nadu

• It requires temperature of 10°C to 35°C and grows best at an altitude between 600 to 1500 m above the sea level

• Acidic, liany and humus rich forest soils are good for its cultivation

• Kerala accounts for about 58% of cardamom production in India.

Hence statements 1 and 2 are correct

• Cardamom has anti microbial property that can be helpful for relieving lung congestion in humans.

• But cardamom itself is not a weedicide or herbicide and cannot be used in agriculture for this purpose; it does not have weed killing properties.

Hence statement 3 is incorrect

Solution: C

• Cardamom is a perennial herb whose dried fruits are known as cardamom.

• It is a highly aromatic spice belonging to Zingiberaceae or ginger family.

• It is native to evergreen Rainforests of the Western Ghats in South India; primary cultivated in the states of Kerala, Karnataka and Tamil Nadu

• It requires temperature of 10°C to 35°C and grows best at an altitude between 600 to 1500 m above the sea level

• Acidic, liany and humus rich forest soils are good for its cultivation

• Kerala accounts for about 58% of cardamom production in India.

Hence statements 1 and 2 are correct

• Cardamom has anti microbial property that can be helpful for relieving lung congestion in humans.

• But cardamom itself is not a weedicide or herbicide and cannot be used in agriculture for this purpose; it does not have weed killing properties.

Hence statement 3 is incorrect

• Question 12 of 30 12. Question 1 points Consider the following statements regarding Market Intervention Scheme (MIS): It is a price support policy under the PM AASHA Scheme. Agricultural commodities that are not covered under Minimum Support Price scheme are included within MIS. It is a central sector scheme operated by the Indian Council of Agricultural Research. How many of the statements given above is/are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: B The Market Intervention scheme is a price support scheme under the Department of Agriculture and Farmers’ Welfare. It is a part of PM AASHA scheme ensuring remunerative prices for farmers It covers perishable crops (horticultural and agricultural commodities) that do not have minimum support price. Hence statements 1 and 2 are correct The Market Intervention scheme is not operated by the Indian Council of Agricultural Research. It is implemented as a Centrally Sponsored scheme with state and Central cost Sharing in the 50:50 ratio It is operationalized by National Agricultural Cooperative Marketing Federation of India and the National Cooperative Consumer’s Federation along with State Agencies. Hence statement 3 is incorrect Incorrect Solution: B The Market Intervention scheme is a price support scheme under the Department of Agriculture and Farmers’ Welfare. It is a part of PM AASHA scheme ensuring remunerative prices for farmers It covers perishable crops (horticultural and agricultural commodities) that do not have minimum support price. Hence statements 1 and 2 are correct The Market Intervention scheme is not operated by the Indian Council of Agricultural Research. It is implemented as a Centrally Sponsored scheme with state and Central cost Sharing in the 50:50 ratio It is operationalized by National Agricultural Cooperative Marketing Federation of India and the National Cooperative Consumer’s Federation along with State Agencies. Hence statement 3 is incorrect

#### 12. Question

Consider the following statements regarding Market Intervention Scheme (MIS):

• It is a price support policy under the PM AASHA Scheme.

• Agricultural commodities that are not covered under Minimum Support Price scheme are included within MIS.

• It is a central sector scheme operated by the Indian Council of Agricultural Research.

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

• (a) Only one

• (b) Only two

• (c) All three

Solution: B

• The Market Intervention scheme is a price support scheme under the Department of Agriculture and Farmers’ Welfare.

• It is a part of PM AASHA scheme ensuring remunerative prices for farmers

• It covers perishable crops (horticultural and agricultural commodities) that do not have minimum support price.

Hence statements 1 and 2 are correct

• The Market Intervention scheme is not operated by the Indian Council of Agricultural Research.

• It is implemented as a Centrally Sponsored scheme with state and Central cost Sharing in the 50:50 ratio

• It is operationalized by National Agricultural Cooperative Marketing Federation of India and the National Cooperative Consumer’s Federation along with State Agencies.

Hence statement 3 is incorrect

Solution: B

• The Market Intervention scheme is a price support scheme under the Department of Agriculture and Farmers’ Welfare.

• It is a part of PM AASHA scheme ensuring remunerative prices for farmers

• It covers perishable crops (horticultural and agricultural commodities) that do not have minimum support price.

Hence statements 1 and 2 are correct

• The Market Intervention scheme is not operated by the Indian Council of Agricultural Research.

• It is implemented as a Centrally Sponsored scheme with state and Central cost Sharing in the 50:50 ratio

• It is operationalized by National Agricultural Cooperative Marketing Federation of India and the National Cooperative Consumer’s Federation along with State Agencies.

Hence statement 3 is incorrect

• Question 13 of 30 13. Question 1 points Consider the following statements: Foreign Portfolio Investment can be converted to FDI if they exceed the 10% limit of total paid up equity capital on a fully diluted bases in a listed Indian company. Re-classification of FPI is not permitted for Chit Fund and Nidhi companies. 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 Correct Solution: C Recently RBI introduced a framework to allow FPI to convert their investments in India to foreign direct investment. The Framework for reclassifying FPI to FDI allows FPIs to convert their holdings to FDI if they exceed that 10% limit of total paid up equity capital on a fully diluted basis in a listed Indian company This reclassification must occur within 5 trading days of the transaction that breached the 10% limit and requires adherence to specific operational guidelines. Hence statement 1 is correct The option to reclassify FPI into FDI is not permitted in sectors that are prohi6 for FDI such as lottery business, chit funds, Nidhi companies and real estate. Hence statement 2 is correct Incorrect Solution: C Recently RBI introduced a framework to allow FPI to convert their investments in India to foreign direct investment. The Framework for reclassifying FPI to FDI allows FPIs to convert their holdings to FDI if they exceed that 10% limit of total paid up equity capital on a fully diluted basis in a listed Indian company This reclassification must occur within 5 trading days of the transaction that breached the 10% limit and requires adherence to specific operational guidelines. Hence statement 1 is correct The option to reclassify FPI into FDI is not permitted in sectors that are prohi6 for FDI such as lottery business, chit funds, Nidhi companies and real estate. Hence statement 2 is correct

#### 13. Question

Consider the following statements:

• Foreign Portfolio Investment can be converted to FDI if they exceed the 10% limit of total paid up equity capital on a fully diluted bases in a listed Indian company.

• Re-classification of FPI is not permitted for Chit Fund and Nidhi companies.

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

Solution: C

• Recently RBI introduced a framework to allow FPI to convert their investments in India to foreign direct investment.

• The Framework for reclassifying FPI to FDI allows FPIs to convert their holdings to FDI if they exceed that 10% limit of total paid up equity capital on a fully diluted basis in a listed Indian company

• This reclassification must occur within 5 trading days of the transaction that breached the 10% limit and requires adherence to specific operational guidelines.

Hence statement 1 is correct

• The option to reclassify FPI into FDI is not permitted in sectors that are prohi6 for FDI such as lottery business, chit funds, Nidhi companies and real estate.

Hence statement 2 is correct

Solution: C

• Recently RBI introduced a framework to allow FPI to convert their investments in India to foreign direct investment.

• This reclassification must occur within 5 trading days of the transaction that breached the 10% limit and requires adherence to specific operational guidelines.

Hence statement 1 is correct

• The option to reclassify FPI into FDI is not permitted in sectors that are prohi6 for FDI such as lottery business, chit funds, Nidhi companies and real estate.

Hence statement 2 is correct

• Question 14 of 30 14. Question 1 points Consider the following statements regarding World Trade Organisation: The Agreement on Agriculture (AoA) aims to reduce trade distortions through the three pillars of market access, domestic support and export subsidies. The Green Box subsidies include government-funded initiatives involving Research and Environmental protection. Minimum Support Prices are included within the Amber box subsidies. How many of the above statements are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: C The Agreement on Agriculture came into effect with the establishment of WTO at the beginning in 1995. It aims to create a fairer and more market oriented Agricultural trading system. It covers three key areas of market access, domestic support and export subsidies with the goal of reducing trade distortion and improving access to markets for farmers globally. Hence statement 1 is correct. The Green box is defined in Annex 2 of the Agriculture agreement of WTO In order to qualify green box, subsidies must not distort or at most cause minimal distortion they have to be government funded and should not involve price support they tend to be programs that are not targeted at particular products and include direct income support for farmers not related to current prices or production levels they also include Environmental Protection, research and regional development programmes. Hence statement 2 is correct. The Amber box subsidies is defined in Article 6 of Agriculture Agreement of WTO. Nearly all domestic support measures considered to distort production and trade with some exceptions fall into this box These include measures to support prices or subsidies directly related to production quantities. These supports are subject to limits; ‘De minimis’ support for both product specific and non product specific supports are allowed, defined as a share of the value of agriculture production this threshold is generally 5% of the value of agriculture production for developed countries and 10% for most developing countries. Hence statement 3 is correct Incorrect Solution: C The Agreement on Agriculture came into effect with the establishment of WTO at the beginning in 1995. It aims to create a fairer and more market oriented Agricultural trading system. It covers three key areas of market access, domestic support and export subsidies with the goal of reducing trade distortion and improving access to markets for farmers globally. Hence statement 1 is correct. The Green box is defined in Annex 2 of the Agriculture agreement of WTO In order to qualify green box, subsidies must not distort or at most cause minimal distortion they have to be government funded and should not involve price support they tend to be programs that are not targeted at particular products and include direct income support for farmers not related to current prices or production levels they also include Environmental Protection, research and regional development programmes. Hence statement 2 is correct. The Amber box subsidies is defined in Article 6 of Agriculture Agreement of WTO. Nearly all domestic support measures considered to distort production and trade with some exceptions fall into this box These include measures to support prices or subsidies directly related to production quantities. These supports are subject to limits; ‘De minimis’ support for both product specific and non product specific supports are allowed, defined as a share of the value of agriculture production this threshold is generally 5% of the value of agriculture production for developed countries and 10% for most developing countries. Hence statement 3 is correct

#### 14. Question

Consider the following statements regarding World Trade Organisation:

• The Agreement on Agriculture (AoA) aims to reduce trade distortions through the three pillars of market access, domestic support and export subsidies.

• The Green Box subsidies include government-funded initiatives involving Research and Environmental protection.

• Minimum Support Prices are included within the Amber box subsidies.

How many of the above statements are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: C

• The Agreement on Agriculture came into effect with the establishment of WTO at the beginning in 1995.

• It aims to create a fairer and more market oriented Agricultural trading system.

• It covers three key areas of market access, domestic support and export subsidies with the goal of reducing trade distortion and improving access to markets for farmers globally.

Hence statement 1 is correct.

• The Green box is defined in Annex 2 of the Agriculture agreement of WTO

• In order to qualify green box, subsidies must not distort or at most cause minimal distortion

• they have to be government funded and should not involve price support

• they tend to be programs that are not targeted at particular products and include direct income support for farmers not related to current prices or production levels

• they also include Environmental Protection, research and regional development programmes.

Hence statement 2 is correct.

• The Amber box subsidies is defined in Article 6 of Agriculture Agreement of WTO.

• Nearly all domestic support measures considered to distort production and trade with some exceptions fall into this box

• These include measures to support prices or subsidies directly related to production quantities.

• These supports are subject to limits; ‘De minimis’ support for both product specific and non product specific supports are allowed, defined as a share of the value of agriculture production

• this threshold is generally 5% of the value of agriculture production for developed countries and 10% for most developing countries.

Hence statement 3 is correct

Solution: C

• The Agreement on Agriculture came into effect with the establishment of WTO at the beginning in 1995.

• It aims to create a fairer and more market oriented Agricultural trading system.

• It covers three key areas of market access, domestic support and export subsidies with the goal of reducing trade distortion and improving access to markets for farmers globally.

Hence statement 1 is correct.

• The Green box is defined in Annex 2 of the Agriculture agreement of WTO

• In order to qualify green box, subsidies must not distort or at most cause minimal distortion

• they have to be government funded and should not involve price support

• they tend to be programs that are not targeted at particular products and include direct income support for farmers not related to current prices or production levels

• they also include Environmental Protection, research and regional development programmes.

Hence statement 2 is correct.

• The Amber box subsidies is defined in Article 6 of Agriculture Agreement of WTO.

• Nearly all domestic support measures considered to distort production and trade with some exceptions fall into this box

• These include measures to support prices or subsidies directly related to production quantities.

• These supports are subject to limits; ‘De minimis’ support for both product specific and non product specific supports are allowed, defined as a share of the value of agriculture production

• this threshold is generally 5% of the value of agriculture production for developed countries and 10% for most developing countries.

Hence statement 3 is correct

• Question 15 of 30 15. Question 1 points Consider the following statements: The level of buffer stock for pulses to be maintained centrally, is recommended by the Food Corporation of India on a quarterly basis. The Commission for Agricultural Cost and Prices is responsible for maintaining the strategic Reserve of wheat only. 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 Correct Solution: D Buffer stock is the reserve of a commodity that is used to offset price fluctuation and unforeseen emergency situations. The Cabinet Committee on Economic Affairs fixes the minimum buffer norms (for pulses too) on a quarterly basis The buffer stock figures are normally reviewed after every 5 years The Food Corporation of India is responsible for procuring pulses for buffer stocks. Hence statement 1 is incorrect The Ministry of Agriculture and Farmers’ Welfare in consultation with the Commission for Agricultural Cost and Prices recommends the amount for strategic Reserve of wheat in the country; CACP is not responsible for maintaining the reserve of wheat. The Cabinet Committee on Economic Affairs subsequently fixes the minimum buffer norms on a quarterly basis. The Food Corporation of India is responsible for maintaining the strategic Reserve of wheat. Hence statement 2 is incorrect Incorrect Solution: D Buffer stock is the reserve of a commodity that is used to offset price fluctuation and unforeseen emergency situations. The Cabinet Committee on Economic Affairs fixes the minimum buffer norms (for pulses too) on a quarterly basis The buffer stock figures are normally reviewed after every 5 years The Food Corporation of India is responsible for procuring pulses for buffer stocks. Hence statement 1 is incorrect The Ministry of Agriculture and Farmers’ Welfare in consultation with the Commission for Agricultural Cost and Prices recommends the amount for strategic Reserve of wheat in the country; CACP is not responsible for maintaining the reserve of wheat. The Cabinet Committee on Economic Affairs subsequently fixes the minimum buffer norms on a quarterly basis. The Food Corporation of India is responsible for maintaining the strategic Reserve of wheat. Hence statement 2 is incorrect

#### 15. Question

Consider the following statements:

• The level of buffer stock for pulses to be maintained centrally, is recommended by the Food Corporation of India on a quarterly basis.

• The Commission for Agricultural Cost and Prices is responsible for maintaining the strategic Reserve of wheat only.

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

Solution: D

• Buffer stock is the reserve of a commodity that is used to offset price fluctuation and unforeseen emergency situations.

• The Cabinet Committee on Economic Affairs fixes the minimum buffer norms (for pulses too) on a quarterly basis

• The buffer stock figures are normally reviewed after every 5 years

• The Food Corporation of India is responsible for procuring pulses for buffer stocks.

Hence statement 1 is incorrect

• The Ministry of Agriculture and Farmers’ Welfare in consultation with the Commission for Agricultural Cost and Prices recommends the amount for strategic Reserve of wheat in the country; CACP is not responsible for maintaining the reserve of wheat.

• The Cabinet Committee on Economic Affairs subsequently fixes the minimum buffer norms on a quarterly basis.

• The Food Corporation of India is responsible for maintaining the strategic Reserve of wheat.

Hence statement 2 is incorrect

Solution: D

• Buffer stock is the reserve of a commodity that is used to offset price fluctuation and unforeseen emergency situations.

• The Cabinet Committee on Economic Affairs fixes the minimum buffer norms (for pulses too) on a quarterly basis

• The buffer stock figures are normally reviewed after every 5 years

• The Food Corporation of India is responsible for procuring pulses for buffer stocks.

Hence statement 1 is incorrect

• The Cabinet Committee on Economic Affairs subsequently fixes the minimum buffer norms on a quarterly basis.

• The Food Corporation of India is responsible for maintaining the strategic Reserve of wheat.

Hence statement 2 is incorrect

• Question 16 of 30 16. Question 1 points Consider the following statements: The Global Investment Trends Monitor for 2024 Report (GITM) has been published by United Nations Development Programme in collaboration with International Monetary Fund. According to GITM 2024, foreign direct investment to developing countries declined by 2% in 2024. GITM 2024 provided that international project Finance in India dropped by 23% in number during 2024. Which of the statements given above is/are correct? (a) 2 and 3 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3 Correct Solution: A The Global Investment Trends Monitor for 2024 has been released by United Nations Conference on Trade and Development. UNCTAD is the leading Institution of the United Nations focused on Trade and Development of developing countries. Hence statement 1 is incorrect According to GITM 2024: FDI into developed economies surged by 43% driven primarily by multinational transactions passing through conduit economies; however, excluding these transactions, FDI into develop economies fell by 15% FDI flows to developing economy declined by 2% in 2024 following a 6% decline in 2023. FDI flows to developing Asia decreased by 7% India experienced growth in Greenfield projects; the international project finance in India dropped by 23% in number and 33% by value. Hence statements 2 and 3 are correct Incorrect Solution: A The Global Investment Trends Monitor for 2024 has been released by United Nations Conference on Trade and Development. UNCTAD is the leading Institution of the United Nations focused on Trade and Development of developing countries. Hence statement 1 is incorrect According to GITM 2024: FDI into developed economies surged by 43% driven primarily by multinational transactions passing through conduit economies; however, excluding these transactions, FDI into develop economies fell by 15% FDI flows to developing economy declined by 2% in 2024 following a 6% decline in 2023. FDI flows to developing Asia decreased by 7% India experienced growth in Greenfield projects; the international project finance in India dropped by 23% in number and 33% by value. Hence statements 2 and 3 are correct

#### 16. Question

Consider the following statements:

• The Global Investment Trends Monitor for 2024 Report (GITM) has been published by United Nations Development Programme in collaboration with International Monetary Fund.

• According to GITM 2024, foreign direct investment to developing countries declined by 2% in 2024.

• GITM 2024 provided that international project Finance in India dropped by 23% in number during 2024.

Which of the statements given above is/are correct?

• (a) 2 and 3 only

• (b) 2 only

• (c) 1 and 3 only

• (d) 1, 2 and 3

Solution: A

• The Global Investment Trends Monitor for 2024 has been released by United Nations Conference on Trade and Development.

• UNCTAD is the leading Institution of the United Nations focused on Trade and Development of developing countries.

Hence statement 1 is incorrect

According to GITM 2024:

• FDI into developed economies surged by 43% driven primarily by multinational transactions passing through conduit economies; however, excluding these transactions, FDI into develop economies fell by 15%

• FDI flows to developing economy declined by 2% in 2024 following a 6% decline in 2023.

• FDI flows to developing Asia decreased by 7%

• India experienced growth in Greenfield projects; the international project finance in India dropped by 23% in number and 33% by value.

Hence statements 2 and 3 are correct

Solution: A

• The Global Investment Trends Monitor for 2024 has been released by United Nations Conference on Trade and Development.

• UNCTAD is the leading Institution of the United Nations focused on Trade and Development of developing countries.

Hence statement 1 is incorrect

According to GITM 2024:

• FDI flows to developing economy declined by 2% in 2024 following a 6% decline in 2023.

• FDI flows to developing Asia decreased by 7%

• India experienced growth in Greenfield projects; the international project finance in India dropped by 23% in number and 33% by value.

Hence statements 2 and 3 are correct

• Question 17 of 30 17. Question 1 points Consider the following statements regarding International Fund for Agricultural Development: It is a specialised agency of the United Nations. It is a multilateral institution specifically mandated to promote food security through financial assistance to rural areas of developing countries. It hosts the International Land Coalition, which bring international organisations and civil society to work together for land governance. Which many of the above statements are correct? (a) 2 only (b) 1 and 3 only (c) 2 and 3 only (d) 1, 2 and 3 Correct Solution: D IFAD is a specialised agency of the United Nations. It is an international financial institution established to mobilise resources for agriculture and rural development in developing countries It is the only International Financial institution with the specific mandate to eradicate poverty and hunger by investing in rural poor through financial and technical assistant to Agriculture and Rural Development projects in developing member states. Hence statement 1 and 2 are correct International Land Coalition is the most diverse and largest coalition working on land rights Founded and hosted by IFAD in 1995, the Coalition brings together civil society and intergovernmental organisations to respond to complex and rapidly changing realities it has more than 300 member organisations covering 84 countries and representing over 70 million land users such as farmers, indigenous people, women and youth -together, who respond to the needs and protect the rights of those who live on and from the land. Hence statement 3 is correct Incorrect Solution: D IFAD is a specialised agency of the United Nations. It is an international financial institution established to mobilise resources for agriculture and rural development in developing countries It is the only International Financial institution with the specific mandate to eradicate poverty and hunger by investing in rural poor through financial and technical assistant to Agriculture and Rural Development projects in developing member states. Hence statement 1 and 2 are correct International Land Coalition is the most diverse and largest coalition working on land rights Founded and hosted by IFAD in 1995, the Coalition brings together civil society and intergovernmental organisations to respond to complex and rapidly changing realities it has more than 300 member organisations covering 84 countries and representing over 70 million land users such as farmers, indigenous people, women and youth -together, who respond to the needs and protect the rights of those who live on and from the land. Hence statement 3 is correct

#### 17. Question

Consider the following statements regarding International Fund for Agricultural Development:

• It is a specialised agency of the United Nations.

• It is a multilateral institution specifically mandated to promote food security through financial assistance to rural areas of developing countries.

• It hosts the International Land Coalition, which bring international organisations and civil society to work together for land governance.

Which many of the above statements are correct?

• (a) 2 only

• (b) 1 and 3 only

• (c) 2 and 3 only

• (d) 1, 2 and 3

Solution: D

• IFAD is a specialised agency of the United Nations.

• It is an international financial institution established to mobilise resources for agriculture and rural development in developing countries

• It is the only International Financial institution with the specific mandate to eradicate poverty and hunger by investing in rural poor through financial and technical assistant to Agriculture and Rural Development projects in developing member states.

Hence statement 1 and 2 are correct

• International Land Coalition is the most diverse and largest coalition working on land rights

• Founded and hosted by IFAD in 1995, the Coalition brings together civil society and intergovernmental organisations to respond to complex and rapidly changing realities

• it has more than 300 member organisations covering 84 countries and representing over 70 million land users such as farmers, indigenous people, women and youth -together, who respond to the needs and protect the rights of those who live on and from the land.

Hence statement 3 is correct

Solution: D

• IFAD is a specialised agency of the United Nations.

• It is an international financial institution established to mobilise resources for agriculture and rural development in developing countries

Hence statement 1 and 2 are correct

• International Land Coalition is the most diverse and largest coalition working on land rights

• Founded and hosted by IFAD in 1995, the Coalition brings together civil society and intergovernmental organisations to respond to complex and rapidly changing realities

Hence statement 3 is correct

• Question 18 of 30 18. Question 1 points Consider the following statements regarding Anna Chakra Initiative: The ‘Anna Chakra’ Initiative has been launched by Union Minister for Consumer Affairs, Food and Public Distribution and New and Renewable Energy in collaboration with World Food Programme. It has been launched for distribution of biofortified food gains to areas with greater nutritional deficiencies among the population. It ensures timely delivery of essential food items while promoting environmental sustainability and reduced carbon footprint. Which of the statements given above is/are correct? (a) 1 and 3 only (b) 2 only (c) 1 and 2 only (d) 1 only Correct Solution: A The Anna Chakra Initiative has been developed by the Union Ministry of Consumer Affairs Food and Public Distribution and New and Renewable Energy to modernise public distribution system. It has been developed in collaboration with the World Food Programme and the Foundation for Innovation and Technology Transfer at IIT Delhi. Hence statement 1 is correct The initiative is a tool for optimising the supply chain of food distribution system in India. Hence statement 2 is incorrect The scheme aims to optimise PDS logistic network to ensure timely delivery of essentials while achieving annual saving of Rs 250 crore through reduced fuel consumption, time and logistics cost It aims to promote environmental sustainability by minimising transport related emissions by reducing transportation distance by 15 to 50% and contributing to a reduce carbon footprint. Hence statement 3 is correct Incorrect Solution: A The Anna Chakra Initiative has been developed by the Union Ministry of Consumer Affairs Food and Public Distribution and New and Renewable Energy to modernise public distribution system. It has been developed in collaboration with the World Food Programme and the Foundation for Innovation and Technology Transfer at IIT Delhi. Hence statement 1 is correct The initiative is a tool for optimising the supply chain of food distribution system in India. Hence statement 2 is incorrect The scheme aims to optimise PDS logistic network to ensure timely delivery of essentials while achieving annual saving of Rs 250 crore through reduced fuel consumption, time and logistics cost It aims to promote environmental sustainability by minimising transport related emissions by reducing transportation distance by 15 to 50% and contributing to a reduce carbon footprint. Hence statement 3 is correct

#### 18. Question

Consider the following statements regarding Anna Chakra Initiative:

• The ‘Anna Chakra’ Initiative has been launched by Union Minister for Consumer Affairs, Food and Public Distribution and New and Renewable Energy in collaboration with World Food Programme.

• It has been launched for distribution of biofortified food gains to areas with greater nutritional deficiencies among the population.

• It ensures timely delivery of essential food items while promoting environmental sustainability and reduced carbon footprint.

Which of the statements given above is/are correct?

• (a) 1 and 3 only

• (b) 2 only

• (c) 1 and 2 only

• (d) 1 only

Solution: A

• The Anna Chakra Initiative has been developed by the Union Ministry of Consumer Affairs Food and Public Distribution and New and Renewable Energy to modernise public distribution system.

• It has been developed in collaboration with the World Food Programme and the Foundation for Innovation and Technology Transfer at IIT Delhi.

Hence statement 1 is correct

• The initiative is a tool for optimising the supply chain of food distribution system in India.

Hence statement 2 is incorrect

• The scheme aims to optimise PDS logistic network to ensure timely delivery of essentials while achieving annual saving of Rs 250 crore through reduced fuel consumption, time and logistics cost

• It aims to promote environmental sustainability by minimising transport related emissions by reducing transportation distance by 15 to 50% and contributing to a reduce carbon footprint.

Hence statement 3 is correct

Solution: A

• The Anna Chakra Initiative has been developed by the Union Ministry of Consumer Affairs Food and Public Distribution and New and Renewable Energy to modernise public distribution system.

• It has been developed in collaboration with the World Food Programme and the Foundation for Innovation and Technology Transfer at IIT Delhi.

Hence statement 1 is correct

• The initiative is a tool for optimising the supply chain of food distribution system in India.

Hence statement 2 is incorrect

• The scheme aims to optimise PDS logistic network to ensure timely delivery of essentials while achieving annual saving of Rs 250 crore through reduced fuel consumption, time and logistics cost

• It aims to promote environmental sustainability by minimising transport related emissions by reducing transportation distance by 15 to 50% and contributing to a reduce carbon footprint.

Hence statement 3 is correct

• Question 19 of 30 19. Question 1 points Consider the following statements regarding the Financial Action Task Force: It was jointly organised by International Monetary Fund and the World Bank. The FATF Secretariat is located at OECD headquarter in Paris. A country enlisted in the FATF ‘Black List’ is not allowed to get loans from the World Bank under any circumstance. How many of the above statements are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: A The Financial Action Task Force was established in 1989 and is based in Paris; it was founded on the initiative of the G7 to develop policy to combat money laundering and maintain certain interest and later it was expanded to include terrorism Financing. (Hence statement 1 is incorrect) It leads Global action to tackle money laundering, terrorist and proliferation financing It sets international standards to ensure National authorities can effectively go after illicit funds linked to drug trafficking, ilicit arms trade, cyber fraud and other serious crime. It researches how money is laundered and terrorism is funded; promotes Global standards to mitigate the risk and assess whether countries are taking effective action. The Organisation for Economic Cooperation and Development is secretariat of FATF; although FATF Secretariat is located at OECD headquarter in Paris but both are independent. Hence statement 2 is correct. The FATF Black List outlines High risk jurisdictions subject to a call for action. While being on the FATF blacklist (“High-Risk Jurisdictions subject to a Call for Action”) carries severe financial repercussions, including strong discouragement of financial transactions and potential economic sanctions, the search results do not indicate an absolute, legally binding prohibition on World Bank loans in all possible scenarios. Hence statement 3 is incorrect. Incorrect Solution: A The Financial Action Task Force was established in 1989 and is based in Paris; it was founded on the initiative of the G7 to develop policy to combat money laundering and maintain certain interest and later it was expanded to include terrorism Financing. (Hence statement 1 is incorrect) It leads Global action to tackle money laundering, terrorist and proliferation financing It sets international standards to ensure National authorities can effectively go after illicit funds linked to drug trafficking, ilicit arms trade, cyber fraud and other serious crime. It researches how money is laundered and terrorism is funded; promotes Global standards to mitigate the risk and assess whether countries are taking effective action. The Organisation for Economic Cooperation and Development is secretariat of FATF; although FATF Secretariat is located at OECD headquarter in Paris but both are independent. Hence statement 2 is correct. The FATF Black List outlines High risk jurisdictions subject to a call for action. While being on the FATF blacklist (“High-Risk Jurisdictions subject to a Call for Action”) carries severe financial repercussions, including strong discouragement of financial transactions and potential economic sanctions, the search results do not indicate an absolute, legally binding prohibition on World Bank loans in all possible scenarios. Hence statement 3 is incorrect.

#### 19. Question

Consider the following statements regarding the Financial Action Task Force:

• It was jointly organised by International Monetary Fund and the World Bank.

• The FATF Secretariat is located at OECD headquarter in Paris.

• A country enlisted in the FATF ‘Black List’ is not allowed to get loans from the World Bank under any circumstance.

How many of the above statements are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: A

• The Financial Action Task Force was established in 1989 and is based in Paris; it was founded on the initiative of the G7 to develop policy to combat money laundering and maintain certain interest and later it was expanded to include terrorism Financing. (Hence statement 1 is incorrect)

• It leads Global action to tackle money laundering, terrorist and proliferation financing

• It sets international standards to ensure National authorities can effectively go after illicit funds linked to drug trafficking, ilicit arms trade, cyber fraud and other serious crime.

• It researches how money is laundered and terrorism is funded; promotes Global standards to mitigate the risk and assess whether countries are taking effective action.

• The Organisation for Economic Cooperation and Development is secretariat of FATF; although FATF Secretariat is located at OECD headquarter in Paris but both are independent.

Hence statement 2 is correct.

• The FATF Black List outlines High risk jurisdictions subject to a call for action.

• While being on the FATF blacklist (“High-Risk Jurisdictions subject to a Call for Action”) carries severe financial repercussions, including strong discouragement of financial transactions and potential economic sanctions, the search results do not indicate an absolute, legally binding prohibition on World Bank loans in all possible scenarios.

Hence statement 3 is incorrect.

Solution: A

• It leads Global action to tackle money laundering, terrorist and proliferation financing

• It sets international standards to ensure National authorities can effectively go after illicit funds linked to drug trafficking, ilicit arms trade, cyber fraud and other serious crime.

• It researches how money is laundered and terrorism is funded; promotes Global standards to mitigate the risk and assess whether countries are taking effective action.

• The Organisation for Economic Cooperation and Development is secretariat of FATF; although FATF Secretariat is located at OECD headquarter in Paris but both are independent.

Hence statement 2 is correct.

• The FATF Black List outlines High risk jurisdictions subject to a call for action.

Hence statement 3 is incorrect.

• Question 20 of 30 20. Question 1 points Consider the following: Garment making Cleaning oil spill Byuoant life vests In how many of the above can can milkweed fibres be used? (a) Only one (b) Only two (c) All three (d) None Correct Solution: C Milkweed fibre can be used to make garments; its fibre, known as milkweed floss, can be processed and used in textile production. Milkweed floss can be used for oil spill cleanup due to its natural oil absorbing properties; these fibres are hollow and hydrophobic that is they repeal water and readily absorb oil. Milkweed fibre can also be used in life jackets; these fibres are water repellent and lightweight making them suitable material for life vests. It Can also be used in paper industry. Milkweed: It is the seed fibre obtained from milkweed plants. It is a stubborn weed and in India, it is found as a wild plant in Rajasthan, Karnataka and Tamil Nadu. The plant contains abundance of milk sap in its leaves, stems and pods. It contains oily material and lignin- a woody substance which makes them too brittle for spinning. Hence options 1, 2 and 3 are correct Incorrect Solution: C Milkweed fibre can be used to make garments; its fibre, known as milkweed floss, can be processed and used in textile production. Milkweed floss can be used for oil spill cleanup due to its natural oil absorbing properties; these fibres are hollow and hydrophobic that is they repeal water and readily absorb oil. Milkweed fibre can also be used in life jackets; these fibres are water repellent and lightweight making them suitable material for life vests. It Can also be used in paper industry. Milkweed: It is the seed fibre obtained from milkweed plants. It is a stubborn weed and in India, it is found as a wild plant in Rajasthan, Karnataka and Tamil Nadu. The plant contains abundance of milk sap in its leaves, stems and pods. It contains oily material and lignin- a woody substance which makes them too brittle for spinning. Hence options 1, 2 and 3 are correct

#### 20. Question

Consider the following:

• Garment making

• Cleaning oil spill

• Byuoant life vests

In how many of the above can can milkweed fibres be used?

• (a) Only one

• (b) Only two

• (c) All three

Solution: C

• Milkweed fibre can be used to make garments; its fibre, known as milkweed floss, can be processed and used in textile production.

• Milkweed floss can be used for oil spill cleanup due to its natural oil absorbing properties; these fibres are hollow and hydrophobic that is they repeal water and readily absorb oil.

• Milkweed fibre can also be used in life jackets; these fibres are water repellent and lightweight making them suitable material for life vests.

• It Can also be used in paper industry.

It is the seed fibre obtained from milkweed plants. It is a stubborn weed and in India, it is found as a wild plant in Rajasthan, Karnataka and Tamil Nadu. The plant contains abundance of milk sap in its leaves, stems and pods. It contains oily material and lignin- a woody substance which makes them too brittle for spinning.

Hence options 1, 2 and 3 are correct

Solution: C

• Milkweed fibre can be used to make garments; its fibre, known as milkweed floss, can be processed and used in textile production.

• Milkweed floss can be used for oil spill cleanup due to its natural oil absorbing properties; these fibres are hollow and hydrophobic that is they repeal water and readily absorb oil.

• Milkweed fibre can also be used in life jackets; these fibres are water repellent and lightweight making them suitable material for life vests.

• It Can also be used in paper industry.

Hence options 1, 2 and 3 are correct

• Question 21 of 30 21. Question 1 points Which of the following statements regarding Starlink Internet Services are correct? It uses ground-based laser transmitters to deliver high-speed internet to users. The Starlink system is particularly useful in regions lacking terrestrial internet infrastructure. Starlink satellites form a dynamic mesh network, relaying signals through space using inter-satellite laser links. Select the correct answer using the code below: (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Correct Solution: B Explanation: Statement 1 is incorrect: Starlink does not use ground-based lasers to deliver internet. Instead, it uses radio signals for communication between user terminals and satellites. Laser links are used between satellites in space for efficient data routing. Statement 2 is correct: Starlink is ideal for remote and underserved areas without wired broadband or mobile networks. Statement 3 is correct: Starlink satellites are interconnected via laser links, forming a mesh network that relays signals through space without always requiring a ground station. Incorrect Solution: B Explanation: Statement 1 is incorrect: Starlink does not use ground-based lasers to deliver internet. Instead, it uses radio signals for communication between user terminals and satellites. Laser links are used between satellites in space for efficient data routing. Statement 2 is correct: Starlink is ideal for remote and underserved areas without wired broadband or mobile networks. Statement 3 is correct: Starlink satellites are interconnected via laser links, forming a mesh network that relays signals through space without always requiring a ground station.

#### 21. Question

Which of the following statements regarding Starlink Internet Services are correct?

• It uses ground-based laser transmitters to deliver high-speed internet to users.

• The Starlink system is particularly useful in regions lacking terrestrial internet infrastructure.

• Starlink satellites form a dynamic mesh network, relaying signals through space using inter-satellite laser links.

Select the correct answer using the code below:

• (a) 1 and 2 only

• (b) 2 and 3 only

• (c) 1 and 3 only

• (d) 1, 2 and 3

Solution: B

Explanation:

• Statement 1 is incorrect: Starlink does not use ground-based lasers to deliver internet. Instead, it uses radio signals for communication between user terminals and satellites. Laser links are used between satellites in space for efficient data routing.

• Statement 2 is correct: Starlink is ideal for remote and underserved areas without wired broadband or mobile networks.

• Statement 3 is correct: Starlink satellites are interconnected via laser links, forming a mesh network that relays signals through space without always requiring a ground station.

Solution: B

Explanation:

• Statement 2 is correct: Starlink is ideal for remote and underserved areas without wired broadband or mobile networks.

• Statement 3 is correct: Starlink satellites are interconnected via laser links, forming a mesh network that relays signals through space without always requiring a ground station.

• Question 22 of 30 22. Question 1 points With reference to quantum satellite communication, consider the following statements: Quantum Key Distribution (QKD) enables secure transmission of data by encoding information in photons. Any attempt at eavesdropping on quantum communication can be detected due to disturbance in the quantum state. 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 Correct Answer: C Explanation: Statement 1 is correct: Quantum Key Distribution (QKD) uses photons to share encryption keys between parties in a highly secure manner. Statement 2 is correct: Quantum measurement principles dictate that any interference or eavesdropping alters the quantum state, thus making detection of intrusion possible. Incorrect Answer: C Explanation: Statement 1 is correct: Quantum Key Distribution (QKD) uses photons to share encryption keys between parties in a highly secure manner. Statement 2 is correct: Quantum measurement principles dictate that any interference or eavesdropping alters the quantum state, thus making detection of intrusion possible.

#### 22. Question

With reference to quantum satellite communication, consider the following statements:

• Quantum Key Distribution (QKD) enables secure transmission of data by encoding information in photons.

• Any attempt at eavesdropping on quantum communication can be detected due to disturbance in the quantum state.

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

Explanation:

• Statement 1 is correct: Quantum Key Distribution (QKD) uses photons to share encryption keys between parties in a highly secure manner.

• Statement 2 is correct: Quantum measurement principles dictate that any interference or eavesdropping alters the quantum state, thus making detection of intrusion possible.

Explanation:

• Statement 1 is correct: Quantum Key Distribution (QKD) uses photons to share encryption keys between parties in a highly secure manner.

• Statement 2 is correct: Quantum measurement principles dictate that any interference or eavesdropping alters the quantum state, thus making detection of intrusion possible.

• Question 23 of 30 23. Question 1 points Consider the following statements: Statement-I: The IRIS2 programme is a communication satellite initiative developed by the European Union. Statement-II: It replaces existing EU satellite programmes like Copernicus and Galileo as part of EU’s new space strategy. Which one of the following is correct in respect of the above statements? a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I c) Statement-I is correct but Statement-II is incorrect d) Statement-I is incorrect but Statement-II is correct Correct Solution: C Explanation: Statement-I is correct: IRIS2 is an ambitious EU space initiative, announced in 2024, aimed at enhancing secure satellite communications. Statement-II is incorrect: IRIS2 complements, but does not replace, Copernicus (Earth observation) and Galileo (GNSS/navigation). These programmes serve different technological purposes under the EU’s space portfolio. Incorrect Solution: C Explanation: Statement-I is correct: IRIS2 is an ambitious EU space initiative, announced in 2024, aimed at enhancing secure satellite communications. Statement-II is incorrect: IRIS2 complements, but does not replace, Copernicus (Earth observation) and Galileo (GNSS/navigation). These programmes serve different technological purposes under the EU’s space portfolio.

#### 23. Question

Consider the following statements:

Statement-I: The IRIS2 programme is a communication satellite initiative developed by the European Union. Statement-II: It replaces existing EU satellite programmes like Copernicus and Galileo as part of EU’s new space strategy.

Which one of the following is correct in respect of the above statements?

• a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

• b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

• c) Statement-I is correct but Statement-II is incorrect

• d) Statement-I is incorrect but Statement-II is correct

Solution: C

Explanation:

• Statement-I is correct: IRIS2 is an ambitious EU space initiative, announced in 2024, aimed at enhancing secure satellite communications.

• Statement-II is incorrect: IRIS2 complements, but does not replace, Copernicus (Earth observation) and Galileo (GNSS/navigation). These programmes serve different technological purposes under the EU’s space portfolio.

Solution: C

Explanation:

• Statement-I is correct: IRIS2 is an ambitious EU space initiative, announced in 2024, aimed at enhancing secure satellite communications.

• Question 24 of 30 24. Question 1 points Consider the following with respect to the functions and operations of the International Big Cat Alliance (IBCA): Provides legal assistance to national governments in amending anti-poaching laws. Aims to promote data sharing and the use of technology for better species management and research. Facilitates collaborative research and knowledge exchange among range and non-range countries. How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) None Correct Solution: B Explanation: The IBCA is headquartered in India. It operates under the National Tiger Conservation Authority (NTCA), MoEFCC. Statement 1 incorrect: Provides legal assistance to national governments in amending anti-poaching laws. The search results do not explicitly state that providing direct legal assistance for amending laws is a core function of the IBCA. While combating illegal wildlife trade is a key objective, the focus seems to be on facilitating policy exchange and strengthening enforcement cooperation. Statement 2 correct: Aims to promote data sharing and the use of technology for better species management and research. The IBCA aims to promote data sharing and the use of technology for better species management and research is supported by the objective of promoting research and monitoring, including data sharing and the use of technology. Statement 3 correct: Facilitates collaborative research and knowledge exchange among range and non-range countries. This is explicitly stated as a key objective and function, to create a global platform for knowledge exchange, technical assistance, and joint conservation efforts among member countries. Incorrect Solution: B Explanation: The IBCA is headquartered in India. It operates under the National Tiger Conservation Authority (NTCA), MoEFCC. Statement 1 incorrect: Provides legal assistance to national governments in amending anti-poaching laws. The search results do not explicitly state that providing direct legal assistance for amending laws is a core function of the IBCA. While combating illegal wildlife trade is a key objective, the focus seems to be on facilitating policy exchange and strengthening enforcement cooperation. Statement 2 correct: Aims to promote data sharing and the use of technology for better species management and research. The IBCA aims to promote data sharing and the use of technology for better species management and research is supported by the objective of promoting research and monitoring, including data sharing and the use of technology. Statement 3 correct: Facilitates collaborative research and knowledge exchange among range and non-range countries. This is explicitly stated as a key objective and function, to create a global platform for knowledge exchange, technical assistance, and joint conservation efforts among member countries.

#### 24. Question

Consider the following with respect to the functions and operations of the International Big Cat Alliance (IBCA):

• Provides legal assistance to national governments in amending anti-poaching laws.

• Aims to promote data sharing and the use of technology for better species management and research.

• Facilitates collaborative research and knowledge exchange among range and non-range countries.

How many of the above statements are correct?

• (a) Only one

• (b) Only two

• (c) Only three

Solution: B

Explanation:

The IBCA is headquartered in India. It operates under the National Tiger Conservation Authority (NTCA), MoEFCC.

Statement 1 incorrect: Provides legal assistance to national governments in amending anti-poaching laws. The search results do not explicitly state that providing direct legal assistance for amending laws is a core function of the IBCA.

• While combating illegal wildlife trade is a key objective, the focus seems to be on facilitating policy exchange and strengthening enforcement cooperation.

Statement 2 correct: Aims to promote data sharing and the use of technology for better species management and research.

• The IBCA aims to promote data sharing and the use of technology for better species management and research is supported by the objective of promoting research and monitoring, including data sharing and the use of technology.

Statement 3 correct: Facilitates collaborative research and knowledge exchange among range and non-range countries.

• This is explicitly stated as a key objective and function, to create a global platform for knowledge exchange, technical assistance, and joint conservation efforts among member countries.

Solution: B

Explanation:

The IBCA is headquartered in India. It operates under the National Tiger Conservation Authority (NTCA), MoEFCC.

• While combating illegal wildlife trade is a key objective, the focus seems to be on facilitating policy exchange and strengthening enforcement cooperation.

Statement 2 correct: Aims to promote data sharing and the use of technology for better species management and research.

Statement 3 correct: Facilitates collaborative research and knowledge exchange among range and non-range countries.

• This is explicitly stated as a key objective and function, to create a global platform for knowledge exchange, technical assistance, and joint conservation efforts among member countries.

• Question 25 of 30 25. Question 1 points Which of the following statements are true with respect to the Proba-3 mission and its technological innovations? Proba-3 uses precise formation flying to maintain a fixed alignment between two spacecraft. The mission will help improve space weather forecasting by studying solar flares and coronal mass ejections. The artificial eclipse created will enable uninterrupted observation of the solar corona for nearly a full Earth Day. Select the correct answer using the code below: (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Correct Solution: A Explanation: Statement 1 is correct: Proba-3 relies on Precise Formation Flying (PFF) to align the Occulter and Coronagraph spacecraft 150 meters apart with millimetre precision. Statement 2 is correct: Extended corona observations will support space weather modeling, improving forecasts of geomagnetic storms. Statement 3 is incorrect: The artificial eclipse lasts about six hours per orbit, not a full day. Incorrect Solution: A Explanation: Statement 1 is correct: Proba-3 relies on Precise Formation Flying (PFF) to align the Occulter and Coronagraph spacecraft 150 meters apart with millimetre precision. Statement 2 is correct: Extended corona observations will support space weather modeling, improving forecasts of geomagnetic storms. Statement 3 is incorrect: The artificial eclipse lasts about six hours per orbit, not a full day.

#### 25. Question

Which of the following statements are true with respect to the Proba-3 mission and its technological innovations?

• Proba-3 uses precise formation flying to maintain a fixed alignment between two spacecraft.

• The mission will help improve space weather forecasting by studying solar flares and coronal mass ejections.

• The artificial eclipse created will enable uninterrupted observation of the solar corona for nearly a full Earth Day.

Select the correct answer using the code below:

• (a) 1 and 2 only

• (b) 2 and 3 only

• (c) 1 and 3 only

• (d) 1, 2 and 3

Solution: A

Explanation:

• Statement 1 is correct: Proba-3 relies on Precise Formation Flying (PFF) to align the Occulter and Coronagraph spacecraft 150 meters apart with millimetre precision.

• Statement 2 is correct: Extended corona observations will support space weather modeling, improving forecasts of geomagnetic storms.

• Statement 3 is incorrect: The artificial eclipse lasts about six hours per orbit, not a full day.

Solution: A

Explanation:

• Statement 1 is correct: Proba-3 relies on Precise Formation Flying (PFF) to align the Occulter and Coronagraph spacecraft 150 meters apart with millimetre precision.

• Statement 2 is correct: Extended corona observations will support space weather modeling, improving forecasts of geomagnetic storms.

• Statement 3 is incorrect: The artificial eclipse lasts about six hours per orbit, not a full day.

• Question 26 of 30 26. Question 1 points India has great diversity consisting of 3000 languages, 4600 castes, and 4000 faiths and beliefs. Unfortunately, the country’s development planning does not capitalize on these assets. 3% to 4% of those who are English educated rule the rest of the 96% to 97% of the population. There is a race towards English education. Nowadays people prefer to put their children in private schools, and several local government schools, in both urban and rural areas, are closing down. This is because the ability to read and speak English represents upward social and economic mobility and we cannot blame the parents who, even when they can ill afford private education, send their children to private schools so that their children have a bright future. However, multiple language education is a social capital and not an indicator of poverty and discrimination. The three languages formula (of English, Hindi and one regional language) does not lead to multiple language education. This formula has no reference to mother tongues, proximate languages, classical languages and foreign languages. But most Indian languages have Brahmi as the script from which they originated, and multiple language learning can happen in an atmosphere of cooperative learning. A child’s mother tongue may be suppressed by the state language which is the medium of instruction. Both languages carry cultural and social roots with them when the child is in school. Use of the mother tongue is totally prohibited in many schools. Similarly, in an English medium school, the use of the state language as the medium of instruction is discouraged. Multilingualism is not only a social capital; it enhances the pace of cognitive linguistic development. There needs to be a bridge between languages. The earlier the child is encouraged to get exposed to multiple languages, the better the child is to be equipped to learn the nuances of each of these languages. Now the focus is on English at the cost of not knowing Indian languages, which should not happen. Most two-year-olds are exposed to and can speak multiple languages in India. This is a stepping stone to a smooth transition to school and the languages the children are expected to read and write. Linguists in India recommend multilingual education. (368 words) Which one of the following is implied by the passage? English education is seen as a means of upward social and economic mobility, leading to a preference for English-medium private schools. The current education system in India tries to promote multilingualism but parents prefer their kids learning English. Multilingualism is a common phenomenon in many countries around the world, including India. Select correct answer using the code given below: a) 1 and 2 only b) 1 and 3 only c) 1 only d) All of the above Correct Correct Option: C Justification: The passage suggests that parents prefer English-medium private schools as English education is seen as a means of upward social and economic mobility. It also implies that the current education system in India does not promote multilingualism effectively through the three languages formula of English, Hindi and one regional language nor does it mention parents preferring their children to learn English over other languages. Therefore 2 is wrong. Also, the passage does not mention multilingualism in other countries, so option C is incorrect. Incorrect Correct Option: C Justification: The passage suggests that parents prefer English-medium private schools as English education is seen as a means of upward social and economic mobility. It also implies that the current education system in India does not promote multilingualism effectively through the three languages formula of English, Hindi and one regional language nor does it mention parents preferring their children to learn English over other languages. Therefore 2 is wrong. Also, the passage does not mention multilingualism in other countries, so option C is incorrect.

#### 26. Question

India has great diversity consisting of 3000 languages, 4600 castes, and 4000 faiths and beliefs. Unfortunately, the country’s development planning does not capitalize on these assets. 3% to 4% of those who are English educated rule the rest of the 96% to 97% of the population. There is a race towards English education. Nowadays people prefer to put their children in private schools, and several local government schools, in both urban and rural areas, are closing down. This is because the ability to read and speak English represents upward social and economic mobility and we cannot blame the parents who, even when they can ill afford private education, send their children to private schools so that their children have a bright future.

However, multiple language education is a social capital and not an indicator of poverty and discrimination. The three languages formula (of English, Hindi and one regional language) does not lead to multiple language education. This formula has no reference to mother tongues, proximate languages, classical languages and foreign languages. But most Indian languages have Brahmi as the script from which they originated, and multiple language learning can happen in an atmosphere of cooperative learning. A child’s mother tongue may be suppressed by the state language which is the medium of instruction. Both languages carry cultural and social roots with them when the child is in school. Use of the mother tongue is totally prohibited in many schools. Similarly, in an English medium school, the use of the state language as the medium of instruction is discouraged.

Multilingualism is not only a social capital; it enhances the pace of cognitive linguistic development. There needs to be a bridge between languages. The earlier the child is encouraged to get exposed to multiple languages, the better the child is to be equipped to learn the nuances of each of these languages. Now the focus is on English at the cost of not knowing Indian languages, which should not happen.

Most two-year-olds are exposed to and can speak multiple languages in India. This is a stepping stone to a smooth transition to school and the languages the children are expected to read and write. Linguists in India recommend multilingual education. (368 words)

Which one of the following is implied by the passage?

• English education is seen as a means of upward social and economic mobility, leading to a preference for English-medium private schools. The current education system in India tries to promote multilingualism but parents prefer their kids learning English. Multilingualism is a common phenomenon in many countries around the world, including India.

• English education is seen as a means of upward social and economic mobility, leading to a preference for English-medium private schools.

• The current education system in India tries to promote multilingualism but parents prefer their kids learning English.

• Multilingualism is a common phenomenon in many countries around the world, including India.

Select correct answer using the code given below:

• a) 1 and 2 only

• b) 1 and 3 only

• d) All of the above

Correct Option: C

Justification:

The passage suggests that parents prefer English-medium private schools as English education is seen as a means of upward social and economic mobility. It also implies that the current education system in India does not promote multilingualism effectively through the three languages formula of English, Hindi and one regional language nor does it mention parents preferring their children to learn English over other languages. Therefore 2 is wrong. Also, the passage does not mention multilingualism in other countries, so option C is incorrect.

Correct Option: C

Justification:

• Question 27 of 30 27. Question 1 points Read the following information and answer the question. A few kids are playing in a park. They make four rules as a part of a game. The rule “D2 H9 A1 D4” states that the person would stand up and “take your shoes out”. Then the rule “B2 A1 C1 A4” states to “take instant right turn”. After this the rule “C3 P1 D2 C1” states that “jump on your turn”. Finally, the rule “B2 D4 K2 C3” states “jump out instant again”. Find the code for ‘your turn’. a) D1 C1 b) D2 C2 c) D2 C1 d) C3 C1 Correct Correct Option: C Justification: From common explanation, we see code would be ‘D2 C1’. Hence, option C is correct. Common Explanation: We right all the codes as follows: “take instant right turn” as “B2 A1 C1 A4” “take your shoes out” as “D2 H9 A1 D4” “jump on your turn” as “C3 P1 D2 C1” “jump out instant again” as “B2 D4 K2 C3” First two codes reveal that ‘take’ = A1 Middle two codes reveal that ‘your’ = D2 Last two codes reveal that ‘jump’ = C3 First and third codes reveal that ‘turn’ = C1 First and fourth code reveal that ‘instant’ = B2 Second and fourth gives ‘out’ = D4 We now write all these codes removing the one we found. “right” as “A4” “shoes” as “H9” “on” as “P1” “again” as “K2” We get words for all the other secret codes. Thus, we have take = A1 instant = B2 right = A4 turn = C1 your = D2 shoes = H9 out = D4 jump = C3 on = P1 again = K2 Incorrect Correct Option: C Justification: From common explanation, we see code would be ‘D2 C1’. Hence, option C is correct. Common Explanation: We right all the codes as follows: “take instant right turn” as “B2 A1 C1 A4” “take your shoes out” as “D2 H9 A1 D4” “jump on your turn” as “C3 P1 D2 C1” “jump out instant again” as “B2 D4 K2 C3” First two codes reveal that ‘take’ = A1 Middle two codes reveal that ‘your’ = D2 Last two codes reveal that ‘jump’ = C3 First and third codes reveal that ‘turn’ = C1 First and fourth code reveal that ‘instant’ = B2 Second and fourth gives ‘out’ = D4 We now write all these codes removing the one we found. “right” as “A4” “shoes” as “H9” “on” as “P1” “again” as “K2” We get words for all the other secret codes. Thus, we have take = A1 instant = B2 right = A4 turn = C1 your = D2 shoes = H9 out = D4 jump = C3 on = P1 again = K2

#### 27. Question

Read the following information and answer the question.

A few kids are playing in a park. They make four rules as a part of a game.

The rule “D2 H9 A1 D4” states that the person would stand up and “take your shoes out”. Then the rule “B2 A1 C1 A4” states to “take instant right turn”.

After this the rule “C3 P1 D2 C1” states that “jump on your turn”.

Finally, the rule “B2 D4 K2 C3” states “jump out instant again”.

Find the code for ‘your turn’.

Correct Option: C

Justification:

From common explanation, we see code would be ‘D2 C1’.

Hence, option C is correct.

Common Explanation:

We right all the codes as follows:

“take instant right turn” as “B2 A1 C1 A4”

“take your shoes out” as “D2 H9 A1 D4”

“jump on your turn” as “C3 P1 D2 C1”

“jump out instant again” as “B2 D4 K2 C3”

First two codes reveal that ‘take’ = A1

Middle two codes reveal that ‘your’ = D2

Last two codes reveal that ‘jump’ = C3

First and third codes reveal that ‘turn’ = C1

First and fourth code reveal that ‘instant’ = B2

Second and fourth gives ‘out’ = D4

We now write all these codes removing the one we found.

“right” as “A4”

“shoes” as “H9”

“on” as “P1”

“again” as “K2”

We get words for all the other secret codes.

Thus, we have

instant = B2

right = A4

shoes = H9

again = K2

Correct Option: C

Justification:

From common explanation, we see code would be ‘D2 C1’.

Hence, option C is correct.

Common Explanation:

We right all the codes as follows:

“take instant right turn” as “B2 A1 C1 A4”

“take your shoes out” as “D2 H9 A1 D4”

“jump on your turn” as “C3 P1 D2 C1”

“jump out instant again” as “B2 D4 K2 C3”

First two codes reveal that ‘take’ = A1

Middle two codes reveal that ‘your’ = D2

Last two codes reveal that ‘jump’ = C3

First and third codes reveal that ‘turn’ = C1

First and fourth code reveal that ‘instant’ = B2

Second and fourth gives ‘out’ = D4

We now write all these codes removing the one we found.

“right” as “A4”

“shoes” as “H9”

“on” as “P1”

“again” as “K2”

We get words for all the other secret codes.

Thus, we have

instant = B2

right = A4

shoes = H9

again = K2

• Question 28 of 30 28. Question 1 points In a certain code ‘CAMPHOR’ is written as ‘6$3#152’ and ‘SAKE’ is written as ‘@$98’. How is ‘MORSE’ written in that code language? a) 352@8 b) #5@28 c) 325@8 d) 523$# Correct Correct Option: A Justification: Comparing both coded words, we get è By decoding CAMPHOR we get, C=6, A=$, M=3, P=#, H=1, O=5, R=2. è By decoding SAKE we get, S=@, A= $, K=9, E=8 Therefore, by replacing MORSE with above codes, we get è MORSE = 352@8 Hence, option (a) is correct. Incorrect Correct Option: A Justification: Comparing both coded words, we get è By decoding CAMPHOR we get, C=6, A=$, M=3, P=#, H=1, O=5, R=2. è By decoding SAKE we get, S=@, A= $, K=9, E=8 Therefore, by replacing MORSE with above codes, we get è MORSE = 352@8 Hence, option (a) is correct.

#### 28. Question

In a certain code ‘CAMPHOR’ is written as ‘6$3#152’ and ‘SAKE’ is written as ‘@$98’. How is ‘MORSE’ written in that code language?

Correct Option: A

Justification:

Comparing both coded words, we get

è By decoding CAMPHOR we get, C=6, A=$, M=3, P=#, H=1, O=5, R=2.

è By decoding SAKE we get, S=@, A= $, K=9, E=8

Therefore, by replacing MORSE with above codes, we get

è MORSE = 352@8

Hence, option (a) is correct.

Correct Option: A

Justification:

Comparing both coded words, we get

è By decoding CAMPHOR we get, C=6, A=$, M=3, P=#, H=1, O=5, R=2.

è By decoding SAKE we get, S=@, A= $, K=9, E=8

Therefore, by replacing MORSE with above codes, we get

è MORSE = 352@8

Hence, option (a) is correct.

• Question 29 of 30 29. Question 1 points Read the following information and answer the questions. If A+ B means A is the father of B. If A× B means A is the sister of B. If A$ B means A is the wife of B. If A% B means A is the mother of B. If A÷B means A is the son of B. What should come in place of question mark (?), to establish that J is the brother of T in the expression: J÷P% H? T % L a) × b) ÷ c) $ d) Either ÷ or × Correct Correct Option: A Justification: As per the given information, we can derive following information: J÷P% H ? T % L can be written as J (male) is son of P (female) who is mother of H. T (female) is mother of C Therefore, J is brother of H. If J has to be brother of T, then T must be sister of H. In symbolic we can write it as H x T. Hence, option (a) is correct. Incorrect Correct Option: A Justification: As per the given information, we can derive following information: J÷P% H ? T % L can be written as J (male) is son of P (female) who is mother of H. T (female) is mother of C Therefore, J is brother of H. If J has to be brother of T, then T must be sister of H. In symbolic we can write it as H x T. Hence, option (a) is correct.

#### 29. Question

Read the following information and answer the questions.

If A+ B means A is the father of B.

If A× B means A is the sister of B.

If A$ B means A is the wife of B.

If A% B means A is the mother of B.

If A÷B means A is the son of B.

What should come in place of question mark (?), to establish that J is the brother of T in the expression: J÷P% H? T % L

• d) Either ÷ or ×

Correct Option: A

Justification:

As per the given information, we can derive following information:

J÷P% H ? T % L can be written as

J (male) is son of P (female) who is mother of H.

T (female) is mother of C

Therefore, J is brother of H.

If J has to be brother of T, then T must be sister of H.

In symbolic we can write it as H x T.

Hence, option (a) is correct.

Correct Option: A

Justification:

As per the given information, we can derive following information:

J÷P% H ? T % L can be written as

J (male) is son of P (female) who is mother of H.

T (female) is mother of C

Therefore, J is brother of H.

If J has to be brother of T, then T must be sister of H.

In symbolic we can write it as H x T.

Hence, option (a) is correct.

• Question 30 of 30 30. Question 1 points Study the following arrangement carefully and answer the questions given below. In a certain code language ‘write in paper’ is coded as ‘la sa ka’, ‘read and write’ is coded as ‘ka na pa’, and ‘pen and paper’ is coded as ‘la na ta’. What phrase will be coded as ‘sa na ta’? a) in read write b) read and in c) pen and in d) pen red write Correct Correct Option: C Justification: Following common explanation, we can infer that the code ‘sa na ta’ will be used for the phrase ‘pen and in’. Hence, Option C is correct. Common Explanation: write in paper ⇒ la sa ka …………. (i) read and write ⇒ ka na pa …………. (ii) pen and paper ⇒ la na ta …………. (iii) From (i) and (ii), write ⇒ ka ………… (iv) From (i) and (iii), paper ⇒la ………… (v) From (i), (iv) and (v), in ⇒ sa …………. (vi) From (ii) and (iii), and ⇒ na …………. (vii) From (iii), (v) and (vii), pen ⇒ ta ………. (ix) Incorrect Correct Option: C Justification: Following common explanation, we can infer that the code ‘sa na ta’ will be used for the phrase ‘pen and in’. Hence, Option C is correct. Common Explanation: write in paper ⇒ la sa ka …………. (i) read and write ⇒ ka na pa …………. (ii) pen and paper ⇒ la na ta …………. (iii) From (i) and (ii), write ⇒ ka ………… (iv) From (i) and (iii), paper ⇒la ………… (v) From (i), (iv) and (v), in ⇒ sa …………. (vi) From (ii) and (iii), and ⇒ na …………. (vii) From (iii), (v) and (vii), pen ⇒ ta ………. (ix)

#### 30. Question

Study the following arrangement carefully and answer the questions given below.

In a certain code language ‘write in paper’ is coded as ‘la sa ka’,

‘read and write’ is coded as ‘ka na pa’,

and ‘pen and paper’ is coded as ‘la na ta’.

What phrase will be coded as ‘sa na ta’?

• a) in read write

• b) read and in

• c) pen and in

• d) pen red write

Correct Option: C

Justification:

Following common explanation, we can infer that the code ‘sa na ta’ will be used for the phrase ‘pen and in’.

Hence, Option C is correct.

Common Explanation:

write in paper ⇒ la sa ka …………. (i)

read and write ⇒ ka na pa …………. (ii)

pen and paper ⇒ la na ta …………. (iii)

From (i) and (ii), write ⇒ ka ………… (iv)

From (i) and (iii), paper ⇒la ………… (v)

From (i), (iv) and (v), in ⇒ sa …………. (vi)

From (ii) and (iii), and ⇒ na …………. (vii)

From (iii), (v) and (vii), pen ⇒ ta ………. (ix)

Correct Option: C

Justification:

Following common explanation, we can infer that the code ‘sa na ta’ will be used for the phrase ‘pen and in’.

Hence, Option C is correct.

Common Explanation:

write in paper ⇒ la sa ka …………. (i)

read and write ⇒ ka na pa …………. (ii)

pen and paper ⇒ la na ta …………. (iii)

From (i) and (ii), write ⇒ ka ………… (iv)

From (i) and (iii), paper ⇒la ………… (v)

From (i), (iv) and (v), in ⇒ sa …………. (vi)

From (ii) and (iii), and ⇒ na …………. (vii)

From (iii), (v) and (vii), pen ⇒ ta ………. (ix)

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