DAY – 5 Insta 75 Days Revision Plan-2024: Topic – ECONOMY, Textbook-wise Test 4 and July 2023 CA
Kartavya Desk Staff
INSTA 75 Days REVISION PLAN 2024
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• Question 1 of 30 1. Question 1 points With reference to Global Environment Facility, consider the following statements: It is a partnership of the United Nations agencies and multilateral development banks. It is a financial mechanism for Minamata Convention and Stockholm Convention. It exclusively brings governments of developed countries to meet every four years during its assembly. How many of the statements given above are correct? (a) Only one (b) Only two (c) All three (d) None Correct Answer: B Explanation: The Global Environment Facility (GEF), established on the eve of the 1992 Rio Earth Summit, is a catalyst for action on the environment. Through its strategic investments, the GEF works with partners to tackle the planet’s biggest environmental issues. Statement 1 is correct: The GEF is a PARTNERSHIP of 18 agencies — including United Nations agencies, multilateral development banks, national entities and international NGOs — working with 183 countries to address the world’s most challenging environmental issues. The GEF has a large network of civil society organizations, works closely with the private sector around the world, and receives continuous inputs from an independent evaluation office and a world-class scientific panel. Statement 2 is correct: It is a FINANCIAL MECHANISM for five major international environmental conventions: the Minamata Convention on Mercury, the Stockholm Convention on Persistent Organic Pollutants (POPs), the United Nations Convention on Biological Diversity (UNCBD), the United Nations Convention to Combat Desertification (UNCCD) and the United Nations Framework Convention on Climate Change (UNFCCC). Statement 3 is not correct: The GEF has 186 member countries. In the Instrument, GEF member countries are referred to as participants. In general terms there are developed and developing participants in the GEF. They are represented on the GEF Council by 32 constituencies (Representative of all member countries meet every four years during the GEF Assembly. Source: Current Affairs Trend: International Bodies Approach: Factual/knowledge based question Incorrect Answer: B Explanation: The Global Environment Facility (GEF), established on the eve of the 1992 Rio Earth Summit, is a catalyst for action on the environment. Through its strategic investments, the GEF works with partners to tackle the planet’s biggest environmental issues. Statement 1 is correct: The GEF is a PARTNERSHIP of 18 agencies — including United Nations agencies, multilateral development banks, national entities and international NGOs — working with 183 countries to address the world’s most challenging environmental issues. The GEF has a large network of civil society organizations, works closely with the private sector around the world, and receives continuous inputs from an independent evaluation office and a world-class scientific panel. Statement 2 is correct: It is a FINANCIAL MECHANISM for five major international environmental conventions: the Minamata Convention on Mercury, the Stockholm Convention on Persistent Organic Pollutants (POPs), the United Nations Convention on Biological Diversity (UNCBD), the United Nations Convention to Combat Desertification (UNCCD) and the United Nations Framework Convention on Climate Change (UNFCCC). Statement 3 is not correct: The GEF has 186 member countries. In the Instrument, GEF member countries are referred to as participants. In general terms there are developed and developing participants in the GEF. They are represented on the GEF Council by 32 constituencies (Representative of all member countries meet every four years during the GEF Assembly. Source: Current Affairs Trend: International Bodies Approach: Factual/knowledge based question
#### 1. Question
With reference to Global Environment Facility, consider the following statements:
• It is a partnership of the United Nations agencies and multilateral development banks.
• It is a financial mechanism for Minamata Convention and Stockholm Convention.
• It exclusively brings governments of developed countries to meet every four years during its assembly.
How many of the statements given above are correct?
• (a) Only one
• (b) Only two
• (c) All three
Answer: B
Explanation:
The Global Environment Facility (GEF), established on the eve of the 1992 Rio Earth Summit, is a catalyst for action on the environment. Through its strategic investments, the GEF works with partners to tackle the planet’s biggest environmental issues.
Statement 1 is correct: The GEF is a PARTNERSHIP of 18 agencies — including United Nations agencies, multilateral development banks, national entities and international NGOs — working with 183 countries to address the world’s most challenging environmental issues.
The GEF has a large network of civil society organizations, works closely with the private sector around the world, and receives continuous inputs from an independent evaluation office and a world-class scientific panel.
Statement 2 is correct: It is a FINANCIAL MECHANISM for five major international environmental conventions: the Minamata Convention on Mercury, the Stockholm Convention on Persistent Organic Pollutants (POPs), the United Nations Convention on Biological Diversity (UNCBD), the United Nations Convention to Combat Desertification (UNCCD) and the United Nations Framework Convention on Climate Change (UNFCCC).
Statement 3 is not correct: The GEF has 186 member countries. In the Instrument, GEF member countries are referred to as participants. In general terms there are developed and developing participants in the GEF. They are represented on the GEF Council by 32 constituencies (Representative of all member countries meet every four years during the GEF Assembly.
Trend: International Bodies
Approach: Factual/knowledge based question
Answer: B
Explanation:
The Global Environment Facility (GEF), established on the eve of the 1992 Rio Earth Summit, is a catalyst for action on the environment. Through its strategic investments, the GEF works with partners to tackle the planet’s biggest environmental issues.
Statement 1 is correct: The GEF is a PARTNERSHIP of 18 agencies — including United Nations agencies, multilateral development banks, national entities and international NGOs — working with 183 countries to address the world’s most challenging environmental issues.
The GEF has a large network of civil society organizations, works closely with the private sector around the world, and receives continuous inputs from an independent evaluation office and a world-class scientific panel.
Statement 2 is correct: It is a FINANCIAL MECHANISM for five major international environmental conventions: the Minamata Convention on Mercury, the Stockholm Convention on Persistent Organic Pollutants (POPs), the United Nations Convention on Biological Diversity (UNCBD), the United Nations Convention to Combat Desertification (UNCCD) and the United Nations Framework Convention on Climate Change (UNFCCC).
Statement 3 is not correct: The GEF has 186 member countries. In the Instrument, GEF member countries are referred to as participants. In general terms there are developed and developing participants in the GEF. They are represented on the GEF Council by 32 constituencies (Representative of all member countries meet every four years during the GEF Assembly.
Trend: International Bodies
Approach: Factual/knowledge based question
• Question 2 of 30 2. Question 1 points Consider the following statements: The Indian Constitution does not provide the Supreme Court the power to initiate contempt cases independent of the motion brought before it by the Attorney General. The consent of the Attorney General is mandatory when a private citizen wants to initiate a case of contempt of court against a person. Which of the statements given above is/are *not correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Answer: A Explanation: Statement 1 is not correct: Article 129 of the Constitution gives the Supreme Court the power to initiate contempt cases on its own, independent of the motion brought before it by the AG or with the consent of the AG. “The Supreme Court shall be a court of record and shall have all the powers of such a court including the power to punish for contempt of itself,” Article 129 states. The Contempt of Courts Act, of 1971 lays down the law on contempt of court. Section 15 of the legislation describes the procedure for how a case for contempt of court can be initiated. In the case of the Supreme Court, the Attorney General or the Solicitor General, and in the case of High Courts, the Advocate General, may bring in a motion before the court for initiating a case of criminal contempt. Statement 2 is correct: The AG’s consent is mandatory when a private citizen wants to initiate a case of contempt of court against a person. Before such a plea can be filed, the Attorney General must sign off on the complaint, determining if it requires the attention of the court at all. Source: Indian Polity Trend: Powers of the Supreme Court Approach: Basic conceptual clarity on Suo-moto powers of Supreme Court Incorrect Answer: A Explanation: Statement 1 is not correct: Article 129 of the Constitution gives the Supreme Court the power to initiate contempt cases on its own, independent of the motion brought before it by the AG or with the consent of the AG. “The Supreme Court shall be a court of record and shall have all the powers of such a court including the power to punish for contempt of itself,” Article 129 states. The Contempt of Courts Act, of 1971 lays down the law on contempt of court. Section 15 of the legislation describes the procedure for how a case for contempt of court can be initiated. In the case of the Supreme Court, the Attorney General or the Solicitor General, and in the case of High Courts, the Advocate General, may bring in a motion before the court for initiating a case of criminal contempt. Statement 2 is correct:* The AG’s consent is mandatory when a private citizen wants to initiate a case of contempt of court against a person. Before such a plea can be filed, the Attorney General must sign off on the complaint, determining if it requires the attention of the court at all. Source: Indian Polity Trend: Powers of the Supreme Court Approach: Basic conceptual clarity on Suo-moto powers of Supreme Court
#### 2. Question
Consider the following statements:
• The Indian Constitution does not provide the Supreme Court the power to initiate contempt cases independent of the motion brought before it by the Attorney General.
• The consent of the Attorney General is mandatory when a private citizen wants to initiate a case of contempt of court against a person.
Which of the statements given above is/are *not* correct?
• (a) 1 only
• (b) 2 only
• (c) Both 1 and 2
• (d) Neither 1 nor 2
Answer: A
Explanation:
Statement 1 is not correct: Article 129 of the Constitution gives the Supreme Court the power to initiate contempt cases on its own, independent of the motion brought before it by the AG or with the consent of the AG.
“The Supreme Court shall be a court of record and shall have all the powers of such a court including the power to punish for contempt of itself,” Article 129 states.
The Contempt of Courts Act, of 1971 lays down the law on contempt of court. Section 15 of the legislation describes the procedure for how a case for contempt of court can be initiated.
In the case of the Supreme Court, the Attorney General or the Solicitor General, and in the case of High Courts, the Advocate General, may bring in a motion before the court for initiating a case of criminal contempt.
Statement 2 is correct: The AG’s consent is mandatory when a private citizen wants to initiate a case of contempt of court against a person.
Before such a plea can be filed, the Attorney General must sign off on the complaint, determining if it requires the attention of the court at all.
Trend: Powers of the Supreme Court
Approach: Basic conceptual clarity on Suo-moto powers of Supreme Court
Answer: A
Explanation:
Statement 1 is not correct: Article 129 of the Constitution gives the Supreme Court the power to initiate contempt cases on its own, independent of the motion brought before it by the AG or with the consent of the AG.
“The Supreme Court shall be a court of record and shall have all the powers of such a court including the power to punish for contempt of itself,” Article 129 states.
The Contempt of Courts Act, of 1971 lays down the law on contempt of court. Section 15 of the legislation describes the procedure for how a case for contempt of court can be initiated.
In the case of the Supreme Court, the Attorney General or the Solicitor General, and in the case of High Courts, the Advocate General, may bring in a motion before the court for initiating a case of criminal contempt.
Statement 2 is correct: The AG’s consent is mandatory when a private citizen wants to initiate a case of contempt of court against a person.
Before such a plea can be filed, the Attorney General must sign off on the complaint, determining if it requires the attention of the court at all.
Trend: Powers of the Supreme Court
Approach: Basic conceptual clarity on Suo-moto powers of Supreme Court
• Question 3 of 30 3. Question 1 points Consider the following pairs: Recent Government Initiatives- Associated Organisations/Ministries Project Wave- The Telecom Regulatory Authority of India Tele-MANAS- The Ministry of Health and Family Welfare e-SARAS Application- The Indian Council of Agricultural Research SWAMIH investment Fund- The Reserve Bank of India How many of the pairs given above are correctly matched? (a) Only one (b) Only two (c) Only three (d) All four Correct Answer: A Explanation: Pair 1 is not correctly matched: The Indian Bank has recently unveiled new services under its digital transformation initiative called Project WAVE, which promises a world of advanced virtual experience. Pair 2 is correctly matched: Tele Mental Health Assistance and Networking Across States (Tele-MANAS) initiative was launched on occasion of World Mental Health Day. It was launched by the Union Ministry of Health & Family Welfare. Pair 3 is not correctly matched: To strengthen marketing support for products made by women of Self-help Groups (SHGs), Deendayal Antyodaya Yojna- National Rural Livelihoods Mission (DAY-NRLM) launched e-SARAS mobile App which will add to e-commerce initiatives for products made by the SHGs. The App was launched by the Ministry of Rural Development, Government of India Pair 4 is not correctly matched: The Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund I is a social impact fund specifically formed for completing stressed and stalled residential projects. The Fund is sponsored by the Ministry of Finance, Government of India, and is managed by SBICAP Ventures Ltd., a State Bank Group company. Source: Current Affairs Trend: schemes/programmes in News Approach: Factual/knowledge based question Incorrect Answer: A Explanation: Pair 1 is not correctly matched: The Indian Bank has recently unveiled new services under its digital transformation initiative called Project WAVE, which promises a world of advanced virtual experience. Pair 2 is correctly matched: Tele Mental Health Assistance and Networking Across States (Tele-MANAS) initiative was launched on occasion of World Mental Health Day. It was launched by the Union Ministry of Health & Family Welfare. Pair 3 is not correctly matched: To strengthen marketing support for products made by women of Self-help Groups (SHGs), Deendayal Antyodaya Yojna- National Rural Livelihoods Mission (DAY-NRLM) launched e-SARAS mobile App which will add to e-commerce initiatives for products made by the SHGs. The App was launched by the Ministry of Rural Development, Government of India Pair 4 is not correctly matched: The Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund I is a social impact fund specifically formed for completing stressed and stalled residential projects. The Fund is sponsored by the Ministry of Finance, Government of India, and is managed by SBICAP Ventures Ltd., a State Bank Group company. Source: Current Affairs Trend: schemes/programmes in News Approach: Factual/knowledge based question
#### 3. Question
Consider the following pairs:
Recent Government Initiatives- Associated Organisations/Ministries
• Project Wave- The Telecom Regulatory Authority of India
• Tele-MANAS- The Ministry of Health and Family Welfare
• e-SARAS Application- The Indian Council of Agricultural Research
• SWAMIH investment Fund- The Reserve Bank of India
How many of the pairs given above are correctly matched?
• (a) Only one
• (b) Only two
• (c) Only three
• (d) All four
Answer: A
Explanation:
Pair 1 is not correctly matched: The Indian Bank has recently unveiled new services under its digital transformation initiative called Project WAVE, which promises a world of advanced virtual experience.
Pair 2 is correctly matched: Tele Mental Health Assistance and Networking Across States (Tele-MANAS) initiative was launched on occasion of World Mental Health Day.
It was launched by the Union Ministry of Health & Family Welfare.
Pair 3 is not correctly matched: To strengthen marketing support for products made by women of Self-help Groups (SHGs), Deendayal Antyodaya Yojna- National Rural Livelihoods Mission (DAY-NRLM) launched e-SARAS mobile App which will add to e-commerce initiatives for products made by the SHGs. The App was launched by the Ministry of Rural Development, Government of India
Pair 4 is not correctly matched: The Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund I is a social impact fund specifically formed for completing stressed and stalled residential projects.
The Fund is sponsored by the Ministry of Finance, Government of India, and is managed by SBICAP Ventures Ltd., a State Bank Group company.
Trend: schemes/programmes in News
Approach: Factual/knowledge based question
Answer: A
Explanation:
Pair 1 is not correctly matched: The Indian Bank has recently unveiled new services under its digital transformation initiative called Project WAVE, which promises a world of advanced virtual experience.
Pair 2 is correctly matched: Tele Mental Health Assistance and Networking Across States (Tele-MANAS) initiative was launched on occasion of World Mental Health Day.
It was launched by the Union Ministry of Health & Family Welfare.
Pair 3 is not correctly matched: To strengthen marketing support for products made by women of Self-help Groups (SHGs), Deendayal Antyodaya Yojna- National Rural Livelihoods Mission (DAY-NRLM) launched e-SARAS mobile App which will add to e-commerce initiatives for products made by the SHGs. The App was launched by the Ministry of Rural Development, Government of India
Pair 4 is not correctly matched: The Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund I is a social impact fund specifically formed for completing stressed and stalled residential projects.
The Fund is sponsored by the Ministry of Finance, Government of India, and is managed by SBICAP Ventures Ltd., a State Bank Group company.
Trend: schemes/programmes in News
Approach: Factual/knowledge based question
• Question 4 of 30 4. Question 1 points Consider the following statements regarding Electoral Bonds: They are the promissory notes that can be purchased from the Central Bank. The name and the details of the donor in these bonds are anonymous. There is a fixed cap on the number of bonds that a company can purchase. How many of the statements given above are correct? (a) Only one (b) Only two (c) All three (d) None Correct Answer: A Explanation: Statement 1 is not correct: Electoral bonds are money instruments like promissory notes that can be bought by companies and individuals in India from the authorised branches of the State Bank of India (SBI)/ (Not RBI). Such bonds are sold in multiples of ₹1,000, ₹10,000, ₹1 lakh, ₹10 lakh, and ₹1 crore and can be bought through a KYC-compliant account and donated to a political party, which can then encash them. Statement 2 is correct: The name and other details of the donor are not entered on the instrument and thus electoral bonds are, in effect, anonymous. Statement 3 is not correct: There is also no cap on the number of electoral bonds that a person or company can purchase. The electoral bonds scheme was framed as an initiative to ‘cleanse the system of political funding in the country’ and make political donations transparent. Source: Current Affairs Trend: Recently, Supreme Court struck down Electoral Bonds, being unconstitutional Approach: Basic features of important schemes in News Incorrect Answer: A Explanation: Statement 1 is not correct: Electoral bonds are money instruments like promissory notes that can be bought by companies and individuals in India from the authorised branches of the State Bank of India (SBI)/ (Not RBI). Such bonds are sold in multiples of ₹1,000, ₹10,000, ₹1 lakh, ₹10 lakh, and ₹1 crore and can be bought through a KYC-compliant account and donated to a political party, which can then encash them. Statement 2 is correct: The name and other details of the donor are not entered on the instrument and thus electoral bonds are, in effect, anonymous. Statement 3 is not correct: There is also no cap on the number of electoral bonds that a person or company can purchase. The electoral bonds scheme was framed as an initiative to ‘cleanse the system of political funding in the country’ and make political donations transparent. Source: Current Affairs Trend: Recently, Supreme Court struck down Electoral Bonds, being unconstitutional Approach: Basic features of important schemes in News
#### 4. Question
Consider the following statements regarding Electoral Bonds:
• They are the promissory notes that can be purchased from the Central Bank.
• The name and the details of the donor in these bonds are anonymous.
• There is a fixed cap on the number of bonds that a company can purchase.
How many of the statements given above are correct?
• (a) Only one
• (b) Only two
• (c) All three
Answer: A
Explanation:
Statement 1 is not correct: Electoral bonds are money instruments like promissory notes that can be bought by companies and individuals in India from the authorised branches of the State Bank of India (SBI)/ (Not RBI).
Such bonds are sold in multiples of ₹1,000, ₹10,000, ₹1 lakh, ₹10 lakh, and ₹1 crore and can be bought through a KYC-compliant account and donated to a political party, which can then encash them.
Statement 2 is correct: The name and other details of the donor are not entered on the instrument and thus electoral bonds are, in effect, anonymous.
Statement 3 is not correct: There is also no cap on the number of electoral bonds that a person or company can purchase.
The electoral bonds scheme was framed as an initiative to ‘cleanse the system of political funding in the country’ and make political donations transparent.
Trend: Recently, Supreme Court struck down Electoral Bonds, being unconstitutional
Approach: Basic features of important schemes in News
Answer: A
Explanation:
Statement 1 is not correct: Electoral bonds are money instruments like promissory notes that can be bought by companies and individuals in India from the authorised branches of the State Bank of India (SBI)/ (Not RBI).
Such bonds are sold in multiples of ₹1,000, ₹10,000, ₹1 lakh, ₹10 lakh, and ₹1 crore and can be bought through a KYC-compliant account and donated to a political party, which can then encash them.
Statement 2 is correct: The name and other details of the donor are not entered on the instrument and thus electoral bonds are, in effect, anonymous.
Statement 3 is not correct: There is also no cap on the number of electoral bonds that a person or company can purchase.
The electoral bonds scheme was framed as an initiative to ‘cleanse the system of political funding in the country’ and make political donations transparent.
Trend: Recently, Supreme Court struck down Electoral Bonds, being unconstitutional
Approach: Basic features of important schemes in News
• Question 5 of 30 5. Question 1 points Consider the following statements regarding Phosphine: It is a colourless and odourless gas in its pure form. It is used in semiconductor industry and in production of flame retardant. It is not soluble in water and hence is used as a pesticide in stored grain. How many of the statements given above are correct? (a) Only one (b) Only two (c) All three (d) None Correct Answer: B Explanation: Phosphine is a highly toxic phosphorus hydride that is formed naturally via the anaerobic decay of phosphorus-containing organic matter or is prepared by an alkali metal hydroxide or white phosphorus hydrolysis reaction. Statement 1 is correct: It is characterized as a colourless gas that is odourless when pure. Exposure occurs by inhalation, ingestion, or contact. Statement 2 is correct: Phosphine is used in semiconductor and plastics industries, production of flame retardants. Statement 3 is not correct: Small amounts occur naturally from the breakdown of organic matter. It is soluble in water. It can be used as a pesticide in stored grain. Source: Science & Technology Trend: Pollutants/adulterants/gases in News Approach: Factual/knowledge based question Incorrect Answer: B Explanation: Phosphine is a highly toxic phosphorus hydride that is formed naturally via the anaerobic decay of phosphorus-containing organic matter or is prepared by an alkali metal hydroxide or white phosphorus hydrolysis reaction. Statement 1 is correct: It is characterized as a colourless gas that is odourless when pure. Exposure occurs by inhalation, ingestion, or contact. Statement 2 is correct: Phosphine is used in semiconductor and plastics industries, production of flame retardants. Statement 3 is not correct: Small amounts occur naturally from the breakdown of organic matter. It is soluble in water. It can be used as a pesticide in stored grain. Source: Science & Technology Trend: Pollutants/adulterants/gases in News Approach: Factual/knowledge based question
#### 5. Question
Consider the following statements regarding Phosphine:
• It is a colourless and odourless gas in its pure form.
• It is used in semiconductor industry and in production of flame retardant.
• It is not soluble in water and hence is used as a pesticide in stored grain.
How many of the statements given above are correct?
• (a) Only one
• (b) Only two
• (c) All three
Answer: B
Explanation:
Phosphine is a highly toxic phosphorus hydride that is formed naturally via the anaerobic decay of phosphorus-containing organic matter or is prepared by an alkali metal hydroxide or white phosphorus hydrolysis reaction.
Statement 1 is correct: It is characterized as a colourless gas that is odourless when pure. Exposure occurs by inhalation, ingestion, or contact.
Statement 2 is correct: Phosphine is used in semiconductor and plastics industries, production of flame retardants.
Statement 3 is not correct: Small amounts occur naturally from the breakdown of organic matter. It is soluble in water. It can be used as a pesticide in stored grain.
Trend: Pollutants/adulterants/gases in News
Approach: Factual/knowledge based question
Answer: B
Explanation:
Phosphine is a highly toxic phosphorus hydride that is formed naturally via the anaerobic decay of phosphorus-containing organic matter or is prepared by an alkali metal hydroxide or white phosphorus hydrolysis reaction.
Statement 1 is correct: It is characterized as a colourless gas that is odourless when pure. Exposure occurs by inhalation, ingestion, or contact.
Statement 2 is correct: Phosphine is used in semiconductor and plastics industries, production of flame retardants.
Statement 3 is not correct: Small amounts occur naturally from the breakdown of organic matter. It is soluble in water. It can be used as a pesticide in stored grain.
Trend: Pollutants/adulterants/gases in News
Approach: Factual/knowledge based question
• Question 6 of 30 6. Question 1 points Consider the following statements: Statement-I: General Anti Avoidance Rules (GAAR) are a set of rules used by authorities against aggressive tax planning for the objective of tax avoidance. Statement-II: GAAR intends to curb Base Erosion and Profit Shifting by companies. 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 Answer: a Explanation: General Anti Avoidance Rules (GAAR) include a set of rules used by the tax authorities of a country against aggressive tax planning for the objective of tax avoidance. In simpler words, it is the anti-tax avoidance law of India. GAAR was first recommended in the Direct Tax Code of 2009 but came into existence only in 2017. A committee chaired by Parthasarathy Shome recommended adoption of GAAR. Hence, statement 1 is correct. Why GAAR? Tax avoidance is legal, large scale revenue loss is occurring due to aggressive tax planning by corporations using avoidance opportunities. GAAR aims to address tax evasion in the guise of tax avoidance. It empowers the revenue authorities to deny tax benefits to transactions or arrangements which do not have any commercial substance or consideration other than achieving the tax benefit. The GAAR provides that certain transactions would be “impermissible avoidance arrangement” (IAA) if the main purpose is to obtain tax benefit it results in misuse or abuse of the provisions of the tax law it lacks commercial substance and It is carried out by means or in a manner which is normally not employed for an authentic (bona fide) purpose. For example; any decision by a company to set up an office in another country or undertake a merger or acquisition merely as part of tax planning could attract GAAR. Base erosion and profit shifting (BEPS) refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations. Hence, GAAR intends to curb Base Erosion and Profit shifting. Hence, option 2 is correct and is the correct explanation of statement 1. Hence, option (a) is correct. Source: Indian Economy Trend: Basic concepts on taxation Approach: Knowledge based question Incorrect Answer: a Explanation: General Anti Avoidance Rules (GAAR) include a set of rules used by the tax authorities of a country against aggressive tax planning for the objective of tax avoidance. In simpler words, it is the anti-tax avoidance law of India. GAAR was first recommended in the Direct Tax Code of 2009 but came into existence only in 2017. A committee chaired by Parthasarathy Shome recommended adoption of GAAR. Hence, statement 1 is correct. Why GAAR? Tax avoidance is legal, large scale revenue loss is occurring due to aggressive tax planning by corporations using avoidance opportunities. GAAR aims to address tax evasion in the guise of tax avoidance. It empowers the revenue authorities to deny tax benefits to transactions or arrangements which do not have any commercial substance or consideration other than achieving the tax benefit. The GAAR provides that certain transactions would be “impermissible avoidance arrangement” (IAA) if the main purpose is to obtain tax benefit it results in misuse or abuse of the provisions of the tax law it lacks commercial substance and It is carried out by means or in a manner which is normally not employed for an authentic (bona fide) purpose. For example; any decision by a company to set up an office in another country or undertake a merger or acquisition merely as part of tax planning could attract GAAR. Base erosion and profit shifting (BEPS) refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations. Hence, GAAR intends to curb Base Erosion and Profit shifting. Hence, option 2 is correct and is the correct explanation of statement 1. Hence, option (a) is correct. Source: Indian Economy Trend: Basic concepts on taxation Approach: Knowledge based question
#### 6. Question
Consider the following statements:
Statement-I:
General Anti Avoidance Rules (GAAR) are a set of rules used by authorities against aggressive tax planning for the objective of tax avoidance.
Statement-II:
GAAR intends to curb Base Erosion and Profit Shifting by companies.
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
Explanation:
• General Anti Avoidance Rules (GAAR) include a set of rules used by the tax authorities of a country against aggressive tax planning for the objective of tax avoidance. In simpler words, it is the anti-tax avoidance law of India. GAAR was first recommended in the Direct Tax Code of 2009 but came into existence only in 2017. A committee chaired by Parthasarathy Shome recommended adoption of GAAR. Hence, statement 1 is correct.
• Why GAAR?
• Tax avoidance is legal, large scale revenue loss is occurring due to aggressive tax planning by corporations using avoidance opportunities.
• GAAR aims to address tax evasion in the guise of tax avoidance. It empowers the revenue authorities to deny tax benefits to transactions or arrangements which do not have any commercial substance or consideration other than achieving the tax benefit.
• The GAAR provides that certain transactions would be “impermissible avoidance arrangement” (IAA) if
• the main purpose is to obtain tax benefit
• it results in misuse or abuse of the provisions of the tax law
• it lacks commercial substance and
• It is carried out by means or in a manner which is normally not employed for an authentic (bona fide) purpose.
• For example; any decision by a company to set up an office in another country or undertake a merger or acquisition merely as part of tax planning could attract GAAR.
• Base erosion and profit shifting (BEPS) refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations. Hence, GAAR intends to curb Base Erosion and Profit shifting. Hence, option 2 is correct and is the correct explanation of statement 1.
• Hence, option (a) is correct.
Trend: Basic concepts on taxation
Approach: Knowledge based question
Explanation:
• General Anti Avoidance Rules (GAAR) include a set of rules used by the tax authorities of a country against aggressive tax planning for the objective of tax avoidance. In simpler words, it is the anti-tax avoidance law of India. GAAR was first recommended in the Direct Tax Code of 2009 but came into existence only in 2017. A committee chaired by Parthasarathy Shome recommended adoption of GAAR. Hence, statement 1 is correct.
• Why GAAR?
• Tax avoidance is legal, large scale revenue loss is occurring due to aggressive tax planning by corporations using avoidance opportunities.
• GAAR aims to address tax evasion in the guise of tax avoidance. It empowers the revenue authorities to deny tax benefits to transactions or arrangements which do not have any commercial substance or consideration other than achieving the tax benefit.
• The GAAR provides that certain transactions would be “impermissible avoidance arrangement” (IAA) if
• the main purpose is to obtain tax benefit
• it results in misuse or abuse of the provisions of the tax law
• it lacks commercial substance and
• It is carried out by means or in a manner which is normally not employed for an authentic (bona fide) purpose.
• For example; any decision by a company to set up an office in another country or undertake a merger or acquisition merely as part of tax planning could attract GAAR.
• Base erosion and profit shifting (BEPS) refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations. Hence, GAAR intends to curb Base Erosion and Profit shifting. Hence, option 2 is correct and is the correct explanation of statement 1.
• Hence, option (a) is correct.
Trend: Basic concepts on taxation
Approach: Knowledge based question
• Question 7 of 30 7. Question 1 points Consider the following statements: Corporate sector over-expand during a period of boom, leaving them with obligations that they can’t repay. Overleveraging in corporate sector often leads to defaulting of debts by the corporate companies, which impairs the profits of Banks. Increase in the import bill of a country leading to higher Current account deficit. Increased expenditure and lower income of the government. How many of the above causes twin balance sheet problem? a) Only one b) Only two c) Only three d) All four Correct Answer: b Explanation: The Twin Balance Sheet problem refers to the situation of overleveraged companies on one hand and bad-loan-encumbered banks on the other. Corporate sector over-expand during a period of boom, leaving them with obligations that they can’t repay during economic slowdown. Hence, statement 1 is correct. This in turn leads to the defaulting of debts by the corporate companies, leaving the lender, the bank’s balance sheets diminished. Hence, statement 2 is correct. The terrible situation devastating for the growth scenario. It is devastating for growth, the corporate are often reluctant to invest and the ones with stable, sound financial health don’t show much interest to invest. Similarly, banks are also in a terrible financial crisis, due to the Non-Performing Assets, limiting and choking their ability to lend in such a scenario. Twin deficit problem is the increase in both fiscal deficit and Current Account Deficit (CAD) of a country. Hence, statement 3 and 4 are incorrect. Hence, option (b) is correct. Source: Indian Economy Trend: issues concerning financial structure Approach: Applied knowledge through the concept of Twin Balance Sheet problem Incorrect Answer: b Explanation: The Twin Balance Sheet problem refers to the situation of overleveraged companies on one hand and bad-loan-encumbered banks on the other. Corporate sector over-expand during a period of boom, leaving them with obligations that they can’t repay during economic slowdown. Hence, statement 1 is correct. This in turn leads to the defaulting of debts by the corporate companies, leaving the lender, the bank’s balance sheets diminished. Hence, statement 2 is correct. The terrible situation devastating for the growth scenario. It is devastating for growth, the corporate are often reluctant to invest and the ones with stable, sound financial health don’t show much interest to invest. Similarly, banks are also in a terrible financial crisis, due to the Non-Performing Assets, limiting and choking their ability to lend in such a scenario. Twin deficit problem is the increase in both fiscal deficit and Current Account Deficit (CAD) of a country. Hence, statement 3 and 4 are incorrect. Hence, option (b) is correct. Source: Indian Economy Trend: issues concerning financial structure Approach: Applied knowledge through the concept of Twin Balance Sheet problem
#### 7. Question
Consider the following statements:
• Corporate sector over-expand during a period of boom, leaving them with obligations that they can’t repay.
• Overleveraging in corporate sector often leads to defaulting of debts by the corporate companies, which impairs the profits of Banks.
• Increase in the import bill of a country leading to higher Current account deficit.
• Increased expenditure and lower income of the government.
How many of the above causes twin balance sheet problem?
• a) Only one
• b) Only two
• c) Only three
• d) All four
Explanation:
• The Twin Balance Sheet problem refers to the situation of overleveraged companies on one hand and bad-loan-encumbered banks on the other.
• Corporate sector over-expand during a period of boom, leaving them with obligations that they can’t repay during economic slowdown. Hence, statement 1 is correct.
• This in turn leads to the defaulting of debts by the corporate companies, leaving the lender, the bank’s balance sheets diminished. Hence, statement 2 is correct.
• The terrible situation devastating for the growth scenario.
• It is devastating for growth, the corporate are often reluctant to invest and the ones with stable, sound financial health don’t show much interest to invest.
• Similarly, banks are also in a terrible financial crisis, due to the Non-Performing Assets, limiting and choking their ability to lend in such a scenario.
• Twin deficit problem is the increase in both fiscal deficit and Current Account Deficit (CAD) of a country. Hence, statement 3 and 4 are incorrect.
• Hence, option (b) is correct.
Trend: issues concerning financial structure
Approach: Applied knowledge through the concept of Twin Balance Sheet problem
Explanation:
• The Twin Balance Sheet problem refers to the situation of overleveraged companies on one hand and bad-loan-encumbered banks on the other.
• Corporate sector over-expand during a period of boom, leaving them with obligations that they can’t repay during economic slowdown. Hence, statement 1 is correct.
• This in turn leads to the defaulting of debts by the corporate companies, leaving the lender, the bank’s balance sheets diminished. Hence, statement 2 is correct.
• The terrible situation devastating for the growth scenario.
• It is devastating for growth, the corporate are often reluctant to invest and the ones with stable, sound financial health don’t show much interest to invest.
• Similarly, banks are also in a terrible financial crisis, due to the Non-Performing Assets, limiting and choking their ability to lend in such a scenario.
• Twin deficit problem is the increase in both fiscal deficit and Current Account Deficit (CAD) of a country. Hence, statement 3 and 4 are incorrect.
• Hence, option (b) is correct.
Trend: issues concerning financial structure
Approach: Applied knowledge through the concept of Twin Balance Sheet problem
• Question 8 of 30 8. Question 1 points In the context of Indian economy, consider the following statements: In the interim budget, 2024 Capital expenditure (CapEx) has been increased by 6.32% constituting 9% of the GDP. In FY 2023-2024, India has experienced fiscal slippage. 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: d Explanation: Major Highlights of the Interim Budget 2024-25: The GDP growth for FY 2023-24 real GDP growth is projected at 7.3%. Total Receipts: Estimated at Rs 30.80 lakh crore, excluding borrowings. Total Expenditure: Projected at Rs 47.66 lakh crore. Tax Receipts: Estimated at Rs 26.02 lakh crore. An 11.1% increase in the capital expenditure outlay for 2024-2025 was announced. The capital expenditure is set at Rs 11, 11,111 crore, constituting 3.4% of the GDP. Hence, statement 1 is incorrect. Tax to GDP ratio for FY25 is 11.46% to ₹31-lakh crore, from ₹34.37 lakh crore in FY24 The direct tax collection target is set at ₹99-lakh crore, while that of indirect tax is at ₹16.22-lakh crore Fiscal slippage: If the actual fiscal deficit is more than what was expected it is called a fiscal slippage. For example in the budget, the estimated fiscal deficit was 4.5% but the actual deficit at the end of the financial year is 7% then it is called fiscal slippage. Deficits 2023-2024 Budget Estimates 2023-2024 Revised Estimates 2024-2025 Budget Estimates Revenue Deficit 2.9 % 2.8% 2.0% Revenue Deficit 5.9% 5.8% 5.1% The actual fiscal deficit (Revised estimates) for the FY 2023-24 was 5.8% which is lesser than the estimated figures 5.9 %( Budget estimates). Fiscal deficit has reduced. Hence, India has not experienced Fiscal slippage. Hence, statement 2 is incorrect. Fiscal deficit for FY 2024-25 is at 5.1% of GDP aligning with the goal of reducing it below 4.5% by 2025-26. Hence, option (d) is correct. Source: Interim Budget Trend: Important provisions of Budget Approach: Factual/Knowledge based question Incorrect Answer: d Explanation: Major Highlights of the Interim Budget 2024-25: The GDP growth for FY 2023-24 real GDP growth is projected at 7.3%. Total Receipts: Estimated at Rs 30.80 lakh crore, excluding borrowings. Total Expenditure: Projected at Rs 47.66 lakh crore. Tax Receipts: Estimated at Rs 26.02 lakh crore. An 11.1% increase in the capital expenditure outlay for 2024-2025 was announced. The capital expenditure is set at Rs 11, 11,111 crore, constituting 3.4% of the GDP. Hence, statement 1 is incorrect. Tax to GDP ratio for FY25 is 11.46% to ₹31-lakh crore, from ₹34.37 lakh crore in FY24 The direct tax collection target is set at ₹99-lakh crore, while that of indirect tax is at ₹16.22-lakh crore Fiscal slippage: If the actual fiscal deficit is more than what was expected it is called a fiscal slippage. For example in the budget, the estimated fiscal deficit was 4.5% but the actual deficit at the end of the financial year is 7% then it is called fiscal slippage. Deficits 2023-2024 Budget Estimates 2023-2024 Revised Estimates 2024-2025 Budget Estimates Revenue Deficit 2.9 % 2.8% 2.0% Revenue Deficit 5.9% 5.8% 5.1% The actual fiscal deficit (Revised estimates) for the FY 2023-24 was 5.8% which is lesser than the estimated figures 5.9 %( Budget estimates). Fiscal deficit has reduced. Hence, India has not experienced Fiscal slippage. Hence, statement 2 is incorrect. Fiscal deficit for FY 2024-25 is at 5.1% of GDP aligning with the goal of reducing it below 4.5% by 2025-26. Hence, option (d) is correct. Source: Interim Budget Trend: Important provisions of Budget Approach: Factual/Knowledge based question
#### 8. Question
In the context of Indian economy, consider the following statements:
• In the interim budget, 2024 Capital expenditure (CapEx) has been increased by 6.32% constituting 9% of the GDP.
• In FY 2023-2024, India has experienced fiscal slippage.
Which of the statements given above is/are correct?
• c) Both 1 and 2
• d) Neither 1 nor 2
Explanation:
• Major Highlights of the Interim Budget 2024-25:
• The GDP growth for FY 2023-24 real GDP growth is projected at 7.3%.
• Total Receipts: Estimated at Rs 30.80 lakh crore, excluding borrowings.
• Total Expenditure: Projected at Rs 47.66 lakh crore.
• Tax Receipts: Estimated at Rs 26.02 lakh crore.
• An 11.1% increase in the capital expenditure outlay for 2024-2025 was announced. The capital expenditure is set at Rs 11, 11,111 crore, constituting 3.4% of the GDP. Hence, statement 1 is incorrect.
• Tax to GDP ratio for FY25 is 11.46% to ₹31-lakh crore, from ₹34.37 lakh crore in FY24
• The direct tax collection target is set at ₹99-lakh crore, while that of indirect tax is at ₹16.22-lakh crore
• Fiscal slippage: If the actual fiscal deficit is more than what was expected it is called a fiscal slippage. For example in the budget, the estimated fiscal deficit was 4.5% but the actual deficit at the end of the financial year is 7% then it is called fiscal slippage.
Deficits | 2023-2024 Budget Estimates | 2023-2024 Revised Estimates | 2024-2025 Budget Estimates
Revenue Deficit | 2.9 % | 2.8% | 2.0%
Revenue Deficit | 5.9% | 5.8% | 5.1%
Budget Estimates
Revised Estimates
Budget Estimates
• The actual fiscal deficit (Revised estimates) for the FY 2023-24 was 5.8% which is lesser than the estimated figures 5.9 %( Budget estimates). Fiscal deficit has reduced. Hence, India has not experienced Fiscal slippage. Hence, statement 2 is incorrect.
• Fiscal deficit for FY 2024-25 is at 5.1% of GDP aligning with the goal of reducing it below 4.5% by 2025-26.
• Hence, option (d) is correct.
Trend: Important provisions of Budget
Approach: Factual/Knowledge based question
Explanation:
• Major Highlights of the Interim Budget 2024-25:
• The GDP growth for FY 2023-24 real GDP growth is projected at 7.3%.
• Total Receipts: Estimated at Rs 30.80 lakh crore, excluding borrowings.
• Total Expenditure: Projected at Rs 47.66 lakh crore.
• Tax Receipts: Estimated at Rs 26.02 lakh crore.
• An 11.1% increase in the capital expenditure outlay for 2024-2025 was announced. The capital expenditure is set at Rs 11, 11,111 crore, constituting 3.4% of the GDP. Hence, statement 1 is incorrect.
• Tax to GDP ratio for FY25 is 11.46% to ₹31-lakh crore, from ₹34.37 lakh crore in FY24
• The direct tax collection target is set at ₹99-lakh crore, while that of indirect tax is at ₹16.22-lakh crore
• Fiscal slippage: If the actual fiscal deficit is more than what was expected it is called a fiscal slippage. For example in the budget, the estimated fiscal deficit was 4.5% but the actual deficit at the end of the financial year is 7% then it is called fiscal slippage.
Deficits | 2023-2024 Budget Estimates | 2023-2024 Revised Estimates | 2024-2025 Budget Estimates
Revenue Deficit | 2.9 % | 2.8% | 2.0%
Revenue Deficit | 5.9% | 5.8% | 5.1%
Budget Estimates
Revised Estimates
Budget Estimates
• The actual fiscal deficit (Revised estimates) for the FY 2023-24 was 5.8% which is lesser than the estimated figures 5.9 %( Budget estimates). Fiscal deficit has reduced. Hence, India has not experienced Fiscal slippage. Hence, statement 2 is incorrect.
• Fiscal deficit for FY 2024-25 is at 5.1% of GDP aligning with the goal of reducing it below 4.5% by 2025-26.
• Hence, option (d) is correct.
Trend: Important provisions of Budget
Approach: Factual/Knowledge based question
• Question 9 of 30 9. Question 1 points Which country has enacted the Foreign Account Tax Compliance Act (FATCA) to combat tax evasion by taxpayers who have offshore accounts? a) India b) USA c) Australia d) Russia Correct Answer: b Explanation: FATCA is a U.S. tax law that was enacted in 2010 to combat tax evasion by U.S. taxpayers who have offshore accounts. It requires foreign financial institutions (FFIs) to report information about their American clients to the Internal Revenue Service (IRS). In 2015, the United States and the Government of India (GOI) entered into an Inter-Governmental Agreement (IGA) of FATCA. The IGA mandates the Indian financial institutions to provide the Central Board of Direct Taxes (CBDT), with the necessary information which will be passed on to IRS of USA. Hence, option (b) is correct. Source: Current Affairs Trend: Important Acts/legislations in News Approach: Factual/Knowledge based question Incorrect Answer: b Explanation: FATCA is a U.S. tax law that was enacted in 2010 to combat tax evasion by U.S. taxpayers who have offshore accounts. It requires foreign financial institutions (FFIs) to report information about their American clients to the Internal Revenue Service (IRS). In 2015, the United States and the Government of India (GOI) entered into an Inter-Governmental Agreement (IGA) of FATCA. The IGA mandates the Indian financial institutions to provide the Central Board of Direct Taxes (CBDT), with the necessary information which will be passed on to IRS of USA. Hence, option (b) is correct. Source: Current Affairs Trend: Important Acts/legislations in News Approach: Factual/Knowledge based question
#### 9. Question
Which country has enacted the Foreign Account Tax Compliance Act (FATCA) to combat tax evasion by taxpayers who have offshore accounts?
• c) Australia
Explanation:
• FATCA is a U.S. tax law that was enacted in 2010 to combat tax evasion by U.S. taxpayers who have offshore accounts. It requires foreign financial institutions (FFIs) to report information about their American clients to the Internal Revenue Service (IRS).
• In 2015, the United States and the Government of India (GOI) entered into an Inter-Governmental Agreement (IGA) of FATCA. The IGA mandates the Indian financial institutions to provide the Central Board of Direct Taxes (CBDT), with the necessary information which will be passed on to IRS of USA.
• Hence, option (b) is correct.
Trend: Important Acts/legislations in News
Approach: Factual/Knowledge based question
Explanation:
• FATCA is a U.S. tax law that was enacted in 2010 to combat tax evasion by U.S. taxpayers who have offshore accounts. It requires foreign financial institutions (FFIs) to report information about their American clients to the Internal Revenue Service (IRS).
• In 2015, the United States and the Government of India (GOI) entered into an Inter-Governmental Agreement (IGA) of FATCA. The IGA mandates the Indian financial institutions to provide the Central Board of Direct Taxes (CBDT), with the necessary information which will be passed on to IRS of USA.
• Hence, option (b) is correct.
Trend: Important Acts/legislations in News
Approach: Factual/Knowledge based question
• Question 10 of 30 10. Question 1 points With reference to the Financial Action Task Force (FATF) consider the following: FATF is dedicated to combating global money laundering, terrorist financing and financing of proliferation of Weapons of Mass Destruction. The grey list of FATF identifies countries that are taking steps to correct deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. The black list of FATF identifies countries or jurisdictions with serious deficiencies to counter money laundering, terrorist financing, and financing of proliferation. How many of the above statements are correct? a) Only one b) Only two c) All three d) None Correct Answer: c Explanation: FATF is the global money laundering and terrorist financing watchdog set up in 1989 out of a G-7 meeting of developed nations in Paris. Initially, its objective was to examine and develop measures to combat money laundering. After the 9/11 attacks on the US, the FATF in 2001 expanded its mandate to incorporate efforts to combat terrorist financing. In April 2012, it added efforts to counter the financing of proliferation of Weapons of Mass Destruction (WMD).Hence, statement 1 is correct. FATF is a 39-member body. Out of 39 members, there are two regional organizations: the European Commission, and the Gulf Cooperation Council. India joined as ‘observer’ member in 2006 and became a full member of FATF in 2010. The FATF Secretariat is located at the OECD headquarters in Paris. The FATF identifies jurisdictions with weak measures to combat money laundering and terrorist financing (AML/CFT) in two FATF public documents (Grey list and black list) that are issued three times a year. The Grey list identifies countries that are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring. Hence, statement 2 is correct. The black list identifies countries or jurisdictions with serious strategic deficiencies to counter money laundering, terrorist financing, and financing of proliferation. For all countries identified as high-risk, the FATF calls on all members and urges all jurisdictions to apply enhanced due diligence, and in the most serious cases, countries are called upon to apply counter-measures to protect the international financial system from the ongoing money laundering, terrorist financing, and proliferation financing risks emanating from the country. Hence, statement 3 is correct. As of 2024, North Korea, Iran and Myanmar are blacklisted. Hence, option (c) is correct. Source: Current Affairs Trend: International Bodies in News Approach: Factual/Knowledge based question Incorrect Answer: c Explanation: FATF is the global money laundering and terrorist financing watchdog set up in 1989 out of a G-7 meeting of developed nations in Paris. Initially, its objective was to examine and develop measures to combat money laundering. After the 9/11 attacks on the US, the FATF in 2001 expanded its mandate to incorporate efforts to combat terrorist financing. In April 2012, it added efforts to counter the financing of proliferation of Weapons of Mass Destruction (WMD).Hence, statement 1 is correct. FATF is a 39-member body. Out of 39 members, there are two regional organizations: the European Commission, and the Gulf Cooperation Council. India joined as ‘observer’ member in 2006 and became a full member of FATF in 2010. The FATF Secretariat is located at the OECD headquarters in Paris. The FATF identifies jurisdictions with weak measures to combat money laundering and terrorist financing (AML/CFT) in two FATF public documents (Grey list and black list) that are issued three times a year. The Grey list identifies countries that are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring. Hence, statement 2 is correct. The black list identifies countries or jurisdictions with serious strategic deficiencies to counter money laundering, terrorist financing, and financing of proliferation. For all countries identified as high-risk, the FATF calls on all members and urges all jurisdictions to apply enhanced due diligence, and in the most serious cases, countries are called upon to apply counter-measures to protect the international financial system from the ongoing money laundering, terrorist financing, and proliferation financing risks emanating from the country. Hence, statement 3 is correct. As of 2024, North Korea, Iran and Myanmar are blacklisted. Hence, option (c) is correct. Source: Current Affairs Trend: International Bodies in News Approach: Factual/Knowledge based question
#### 10. Question
With reference to the Financial Action Task Force (FATF) consider the following:
• FATF is dedicated to combating global money laundering, terrorist financing and financing of proliferation of Weapons of Mass Destruction.
• The grey list of FATF identifies countries that are taking steps to correct deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing.
• The black list of FATF identifies countries or jurisdictions with serious deficiencies to counter money laundering, terrorist financing, and financing of proliferation.
How many of the above statements are correct?
• a) Only one
• b) Only two
• c) All three
Explanation:
• FATF is the global money laundering and terrorist financing watchdog set up in 1989 out of a G-7 meeting of developed nations in Paris.
• Initially, its objective was to examine and develop measures to combat money laundering.
• After the 9/11 attacks on the US, the FATF in 2001 expanded its mandate to incorporate efforts to combat terrorist financing.
• In April 2012, it added efforts to counter the financing of proliferation of Weapons of Mass Destruction (WMD).Hence, statement 1 is correct.
• FATF is a 39-member body. Out of 39 members, there are two regional organizations: the European Commission, and the Gulf Cooperation Council.
• India joined as ‘observer’ member in 2006 and became a full member of FATF in 2010.
• The FATF Secretariat is located at the OECD headquarters in Paris.
• The FATF identifies jurisdictions with weak measures to combat money laundering and terrorist financing (AML/CFT) in two FATF public documents (Grey list and black list) that are issued three times a year.
• The Grey list identifies countries that are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring. Hence, statement 2 is correct.
• The black list identifies countries or jurisdictions with serious strategic deficiencies to counter money laundering, terrorist financing, and financing of proliferation. For all countries identified as high-risk, the FATF calls on all members and urges all jurisdictions to apply enhanced due diligence, and in the most serious cases, countries are called upon to apply counter-measures to protect the international financial system from the ongoing money laundering, terrorist financing, and proliferation financing risks emanating from the country. Hence, statement 3 is correct.
• As of 2024, North Korea, Iran and Myanmar are blacklisted.
• Hence, option (c) is correct.
Trend: International Bodies in News
Approach: Factual/Knowledge based question
Explanation:
• FATF is the global money laundering and terrorist financing watchdog set up in 1989 out of a G-7 meeting of developed nations in Paris.
• Initially, its objective was to examine and develop measures to combat money laundering.
• After the 9/11 attacks on the US, the FATF in 2001 expanded its mandate to incorporate efforts to combat terrorist financing.
• In April 2012, it added efforts to counter the financing of proliferation of Weapons of Mass Destruction (WMD).Hence, statement 1 is correct.
• FATF is a 39-member body. Out of 39 members, there are two regional organizations: the European Commission, and the Gulf Cooperation Council.
• India joined as ‘observer’ member in 2006 and became a full member of FATF in 2010.
• The FATF Secretariat is located at the OECD headquarters in Paris.
• The FATF identifies jurisdictions with weak measures to combat money laundering and terrorist financing (AML/CFT) in two FATF public documents (Grey list and black list) that are issued three times a year.
• The Grey list identifies countries that are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring. Hence, statement 2 is correct.
• The black list identifies countries or jurisdictions with serious strategic deficiencies to counter money laundering, terrorist financing, and financing of proliferation. For all countries identified as high-risk, the FATF calls on all members and urges all jurisdictions to apply enhanced due diligence, and in the most serious cases, countries are called upon to apply counter-measures to protect the international financial system from the ongoing money laundering, terrorist financing, and proliferation financing risks emanating from the country. Hence, statement 3 is correct.
• As of 2024, North Korea, Iran and Myanmar are blacklisted.
• Hence, option (c) is correct.
Trend: International Bodies in News
Approach: Factual/Knowledge based question
• Question 11 of 30 11. Question 1 points With reference to payment banks, consider the following statements: They can improvefinancial inclusion to the unbanked and underbanked areas, migrant labour force, low-income households, small entrepreneurs, etc. by taking demand and time deposits up to Rs.2 lakhs. They can provide mobile payment services, and other banking services like ATM cards but cannot accept deposits from Indians residing abroad. They are not universal banks and have less credit risk. Which of the above given statements is/are correct? a) 1 only b) 1 and 2 only c) 2 and 3 only d) 1,2 and 3 Correct Answer: c Explanation: The Reserve Bank of India (RBI) recently imposed restrictions on Paytm Payments Bank Ltd (PPBL), following a system audit report and subsequent compliance validation report of external auditors. The Nachiket Mor Committee was set up in 2013. This Committee was also known as the Committee on Comprehensive Financial Services for Small Business and Low Income Households. Based on the recommendations of this committee, the differentiated banking approach was introduced by RBI in 2014. Two kinds of banking licenses are granted by the Reserve Bank of India – Universal Bank Licence and Differentiated Bank Licence. Differentiated banks are banking institutions licensed by the RBI to provide specific banking services and products. Differentiated Banks (niche banks) are banks that serve the needs of a certain demographic segment of the population. Main aim for giving license to differentiated banks is to promote financial inclusion and payments. The term differentiated banks indicate that they are different from the usual universal banks. The universal banks like SBI, Canara Bank etc. can give almost all products and services. On the other hand, the differentiated banks can give only selected products like credit, payments, deposit etc., with RBI regulations. The differentiated banks are of two types-payment banks and small finance banks. The first payment bank in India, Airtel Payments Bank, was set up in January 2017. Payments Bank: A payments bank is like any other bank Objective: To advance financial inclusion by offering banking and financial services to the unbanked and underbanked areas, helping the migrant labour force, low-income households, small entrepreneurs, etc. Features: The minimum paid-up equity capital for payments banks shall be Rs. 100 crores. The minimum initial contribution of the promoter to the Payment Bank to the paid-up equity capital shall be at least 40% for the first five years from the commencement of its business. Activities: They can take deposits up to Rs. 2, 00,000. It can accept demand deposits in the form of savings and current accounts. They can only accept deposits. They cannot issue loans and credit cards. They cannot accept time deposits or NRI deposits. Hence, statement 1 is incorrect. It can offer remittance services, mobile payments/transfers/purchases, and other banking services like ATM/debit cards, net banking, and third-party fund transfers. Hence, statement 2 is correct. They are differentiated, and not universal banks. They operate on a smaller scale with minimal credit risk. Because, they don’t give loans. Hence, statement 3 is correct. They cannot set up subsidiaries to undertake non-banking financial activities Reserve Requirements: The money received as deposits can be invested in secure government securities only in the form of Statutory Liquidity Ratio (SLR). This must amount to 75% of the demand deposit balance. The remaining 25% is to be placed as time deposits with other scheduled commercial banks. Hence, option (c) is correct. Source: Indian Economy Trend: Banks and their mandate Approach: Factual/Knowledge based question Incorrect Answer: c Explanation: The Reserve Bank of India (RBI) recently imposed restrictions on Paytm Payments Bank Ltd (PPBL), following a system audit report and subsequent compliance validation report of external auditors. The Nachiket Mor Committee was set up in 2013. This Committee was also known as the Committee on Comprehensive Financial Services for Small Business and Low Income Households. Based on the recommendations of this committee, the differentiated banking approach was introduced by RBI in 2014. Two kinds of banking licenses are granted by the Reserve Bank of India – Universal Bank Licence and Differentiated Bank Licence. Differentiated banks are banking institutions licensed by the RBI to provide specific banking services and products. Differentiated Banks (niche banks) are banks that serve the needs of a certain demographic segment of the population. Main aim for giving license to differentiated banks is to promote financial inclusion and payments. The term differentiated banks indicate that they are different from the usual universal banks. The universal banks like SBI, Canara Bank etc. can give almost all products and services. On the other hand, the differentiated banks can give only selected products like credit, payments, deposit etc., with RBI regulations. The differentiated banks are of two types-payment banks and small finance banks. The first payment bank in India, Airtel Payments Bank, was set up in January 2017. Payments Bank: A payments bank is like any other bank Objective: To advance financial inclusion by offering banking and financial services to the unbanked and underbanked areas, helping the migrant labour force, low-income households, small entrepreneurs, etc. Features: The minimum paid-up equity capital for payments banks shall be Rs. 100 crores. The minimum initial contribution of the promoter to the Payment Bank to the paid-up equity capital shall be at least 40% for the first five years from the commencement of its business. Activities: They can take deposits up to Rs. 2, 00,000. It can accept demand deposits in the form of savings and current accounts. They can only accept deposits. They cannot issue loans and credit cards. They cannot accept time deposits or NRI deposits. Hence, statement 1 is incorrect. It can offer remittance services, mobile payments/transfers/purchases, and other banking services like ATM/debit cards, net banking, and third-party fund transfers. Hence, statement 2 is correct. They are differentiated, and not universal banks. They operate on a smaller scale with minimal credit risk. Because, they don’t give loans. Hence, statement 3 is correct. They cannot set up subsidiaries to undertake non-banking financial activities Reserve Requirements: The money received as deposits can be invested in secure government securities only in the form of Statutory Liquidity Ratio (SLR). This must amount to 75% of the demand deposit balance. The remaining 25% is to be placed as time deposits with other scheduled commercial banks. Hence, option (c) is correct. Source: Indian Economy Trend: Banks and their mandate Approach: Factual/Knowledge based question
#### 11. Question
With reference to payment banks, consider the following statements:
• They can improvefinancial inclusion to the unbanked and underbanked areas, migrant labour force, low-income households, small entrepreneurs, etc. by taking demand and time deposits up to Rs.2 lakhs.
• They can provide mobile payment services, and other banking services like ATM cards but cannot accept deposits from Indians residing abroad.
• They are not universal banks and have less credit risk.
Which of the above given statements is/are correct?
• b) 1 and 2 only
• c) 2 and 3 only
• d) 1,2 and 3
Explanation:
• The Reserve Bank of India (RBI) recently imposed restrictions on Paytm Payments Bank Ltd (PPBL), following a system audit report and subsequent compliance validation report of external auditors.
• The Nachiket Mor Committee was set up in 2013. This Committee was also known as the Committee on Comprehensive Financial Services for Small Business and Low Income Households. Based on the recommendations of this committee, the differentiated banking approach was introduced by RBI in 2014.
• Two kinds of banking licenses are granted by the Reserve Bank of India – Universal Bank Licence and Differentiated Bank Licence.
• Differentiated banks are banking institutions licensed by the RBI to provide specific banking services and products. Differentiated Banks (niche banks) are banks that serve the needs of a certain demographic segment of the population.
• Main aim for giving license to differentiated banks is to promote financial inclusion and payments. The term differentiated banks indicate that they are different from the usual universal banks. The universal banks like SBI, Canara Bank etc. can give almost all products and services. On the other hand, the differentiated banks can give only selected products like credit, payments, deposit etc., with RBI regulations. The differentiated banks are of two types-payment banks and small finance banks.
• The first payment bank in India, Airtel Payments Bank, was set up in January 2017.
Payments Bank:
• A payments bank is like any other bank Objective: To advance financial inclusion by offering banking and financial services to the unbanked and underbanked areas, helping the migrant labour force, low-income households, small entrepreneurs, etc.
Features:
• The minimum paid-up equity capital for payments banks shall be Rs. 100 crores.
• The minimum initial contribution of the promoter to the Payment Bank to the paid-up equity capital shall be at least 40% for the first five years from the commencement of its business.
Activities:
• They can take deposits up to Rs. 2, 00,000. It can accept demand deposits in the form of savings and current accounts. They can only accept deposits. They cannot issue loans and credit cards. They cannot accept time deposits or NRI deposits. Hence, statement 1 is incorrect.
• It can offer remittance services, mobile payments/transfers/purchases, and other banking services like ATM/debit cards, net banking, and third-party fund transfers. Hence, statement 2 is correct.
• They are differentiated, and not universal banks. They operate on a smaller scale with minimal credit risk. Because, they don’t give loans. Hence, statement 3 is correct.
• They cannot set up subsidiaries to undertake non-banking financial activities
Reserve Requirements:
• The money received as deposits can be invested in secure government securities only in the form of Statutory Liquidity Ratio (SLR). This must amount to 75% of the demand deposit balance.
• The remaining 25% is to be placed as time deposits with other scheduled commercial banks.
• Hence, option (c) is correct.
Trend: Banks and their mandate
Approach: Factual/Knowledge based question
Explanation:
• The Reserve Bank of India (RBI) recently imposed restrictions on Paytm Payments Bank Ltd (PPBL), following a system audit report and subsequent compliance validation report of external auditors.
• The Nachiket Mor Committee was set up in 2013. This Committee was also known as the Committee on Comprehensive Financial Services for Small Business and Low Income Households. Based on the recommendations of this committee, the differentiated banking approach was introduced by RBI in 2014.
• Two kinds of banking licenses are granted by the Reserve Bank of India – Universal Bank Licence and Differentiated Bank Licence.
• Differentiated banks are banking institutions licensed by the RBI to provide specific banking services and products. Differentiated Banks (niche banks) are banks that serve the needs of a certain demographic segment of the population.
• Main aim for giving license to differentiated banks is to promote financial inclusion and payments. The term differentiated banks indicate that they are different from the usual universal banks. The universal banks like SBI, Canara Bank etc. can give almost all products and services. On the other hand, the differentiated banks can give only selected products like credit, payments, deposit etc., with RBI regulations. The differentiated banks are of two types-payment banks and small finance banks.
• The first payment bank in India, Airtel Payments Bank, was set up in January 2017.
Payments Bank:
• A payments bank is like any other bank Objective: To advance financial inclusion by offering banking and financial services to the unbanked and underbanked areas, helping the migrant labour force, low-income households, small entrepreneurs, etc.
Features:
• The minimum paid-up equity capital for payments banks shall be Rs. 100 crores.
• The minimum initial contribution of the promoter to the Payment Bank to the paid-up equity capital shall be at least 40% for the first five years from the commencement of its business.
Activities:
• They can take deposits up to Rs. 2, 00,000. It can accept demand deposits in the form of savings and current accounts. They can only accept deposits. They cannot issue loans and credit cards. They cannot accept time deposits or NRI deposits. Hence, statement 1 is incorrect.
• It can offer remittance services, mobile payments/transfers/purchases, and other banking services like ATM/debit cards, net banking, and third-party fund transfers. Hence, statement 2 is correct.
• They are differentiated, and not universal banks. They operate on a smaller scale with minimal credit risk. Because, they don’t give loans. Hence, statement 3 is correct.
• They cannot set up subsidiaries to undertake non-banking financial activities
Reserve Requirements:
• The money received as deposits can be invested in secure government securities only in the form of Statutory Liquidity Ratio (SLR). This must amount to 75% of the demand deposit balance.
• The remaining 25% is to be placed as time deposits with other scheduled commercial banks.
• Hence, option (c) is correct.
Trend: Banks and their mandate
Approach: Factual/Knowledge based question
• Question 12 of 30 12. Question 1 points Consider the following statements with reference to Peer-to- Peer (P2P) lending: Peer-to- Peer (P2P) lending is an online lending platform that eliminates the need for intermediaries like banks for lending and borrowing activities. P2P platforms act as facilitators, managing risk assessments, payments, and loan approvals. It offers faster loans due to involvement of only lender and borrower in the process. P2P provides quick access to unsecured personal loans. How many of the above statements are correct? a) Only one b) Only two c) Only three d) All four Correct Answer: c Explanation: P2P lending, also known as peer-to-peer lending, is a modern online lending platform that connects borrowers with investors directly. This eliminates the need for traditional banks or non-banking financial companies (NBFCs) as intermediaries and provides borrowers access to potentially lower interest rates while offering investors the opportunity to earn higher returns. Hence, statement 1 is correct. P2P platforms act as facilitators, managing risk assessments, payments, and loan approvals. Hence, statement 2 is correct. There are three parties involved in a peer to peer transaction: the borrower, the investor/lender and the P2P platform. The borrower and investor both register with the platform and are then matched based on the investor’s risk appetite and borrower’s funding requirements. The P2P platform acts as an intermediary, facilitating the borrowing and repayment process between borrowers and lenders. Hence, statement 3 is incorrect. One of the main advantages of P2P is that it often provides access to unsecured personal loans, which means that borrowers don’t have to provide collateral to secure the loan. Through the online portal, the investor can track their investment and monitor repayment activity. The borrower has the option of flexible repayment options based on their income level and other capabilities. Hence, statement 4 is correct. When applying for a loan through a P2P lending platform, borrowers submit a list of necessary documents. This includes proof of identity such as a passport or driver’s license, proof of address like a utility bill or bank statement, and proof of income such as pay stubs or tax returns. Hence, option (c) is correct. Source: Indian Economy Trend: Banking sector- lending and borrowing Approach: Factual/Knowledge based question Incorrect Answer: c Explanation: P2P lending, also known as peer-to-peer lending, is a modern online lending platform that connects borrowers with investors directly. This eliminates the need for traditional banks or non-banking financial companies (NBFCs) as intermediaries and provides borrowers access to potentially lower interest rates while offering investors the opportunity to earn higher returns. Hence, statement 1 is correct. P2P platforms act as facilitators, managing risk assessments, payments, and loan approvals. Hence, statement 2 is correct. There are three parties involved in a peer to peer transaction: the borrower, the investor/lender and the P2P platform. The borrower and investor both register with the platform and are then matched based on the investor’s risk appetite and borrower’s funding requirements. The P2P platform acts as an intermediary, facilitating the borrowing and repayment process between borrowers and lenders. Hence, statement 3 is incorrect. One of the main advantages of P2P is that it often provides access to unsecured personal loans, which means that borrowers don’t have to provide collateral to secure the loan. Through the online portal, the investor can track their investment and monitor repayment activity. The borrower has the option of flexible repayment options based on their income level and other capabilities. Hence, statement 4 is correct. When applying for a loan through a P2P lending platform, borrowers submit a list of necessary documents. This includes proof of identity such as a passport or driver’s license, proof of address like a utility bill or bank statement, and proof of income such as pay stubs or tax returns. Hence, option (c) is correct. Source: Indian Economy Trend: Banking sector- lending and borrowing Approach: Factual/Knowledge based question
#### 12. Question
Consider the following statements with reference to Peer-to- Peer (P2P) lending:
• Peer-to- Peer (P2P) lending is an online lending platform that eliminates the need for intermediaries like banks for lending and borrowing activities.
• P2P platforms act as facilitators, managing risk assessments, payments, and loan approvals.
• It offers faster loans due to involvement of only lender and borrower in the process.
• P2P provides quick access to unsecured personal loans.
How many of the above statements are correct?
• a) Only one
• b) Only two
• c) Only three
• d) All four
Explanation:
• P2P lending, also known as peer-to-peer lending, is a modern online lending platform that connects borrowers with investors directly. This eliminates the need for traditional banks or non-banking financial companies (NBFCs) as intermediaries and provides borrowers access to potentially lower interest rates while offering investors the opportunity to earn higher returns. Hence, statement 1 is correct.
• P2P platforms act as facilitators, managing risk assessments, payments, and loan approvals. Hence, statement 2 is correct.
• There are three parties involved in a peer to peer transaction: the borrower, the investor/lender and the P2P platform. The borrower and investor both register with the platform and are then matched based on the investor’s risk appetite and borrower’s funding requirements. The P2P platform acts as an intermediary, facilitating the borrowing and repayment process between borrowers and lenders. Hence, statement 3 is incorrect.
• One of the main advantages of P2P is that it often provides access to unsecured personal loans, which means that borrowers don’t have to provide collateral to secure the loan. Through the online portal, the investor can track their investment and monitor repayment activity. The borrower has the option of flexible repayment options based on their income level and other capabilities. Hence, statement 4 is correct.
• When applying for a loan through a P2P lending platform, borrowers submit a list of necessary documents. This includes proof of identity such as a passport or driver’s license, proof of address like a utility bill or bank statement, and proof of income such as pay stubs or tax returns.
• Hence, option (c) is correct.
Trend: Banking sector- lending and borrowing
Approach: Factual/Knowledge based question
Explanation:
• P2P lending, also known as peer-to-peer lending, is a modern online lending platform that connects borrowers with investors directly. This eliminates the need for traditional banks or non-banking financial companies (NBFCs) as intermediaries and provides borrowers access to potentially lower interest rates while offering investors the opportunity to earn higher returns. Hence, statement 1 is correct.
• P2P platforms act as facilitators, managing risk assessments, payments, and loan approvals. Hence, statement 2 is correct.
• There are three parties involved in a peer to peer transaction: the borrower, the investor/lender and the P2P platform. The borrower and investor both register with the platform and are then matched based on the investor’s risk appetite and borrower’s funding requirements. The P2P platform acts as an intermediary, facilitating the borrowing and repayment process between borrowers and lenders. Hence, statement 3 is incorrect.
• One of the main advantages of P2P is that it often provides access to unsecured personal loans, which means that borrowers don’t have to provide collateral to secure the loan. Through the online portal, the investor can track their investment and monitor repayment activity. The borrower has the option of flexible repayment options based on their income level and other capabilities. Hence, statement 4 is correct.
• When applying for a loan through a P2P lending platform, borrowers submit a list of necessary documents. This includes proof of identity such as a passport or driver’s license, proof of address like a utility bill or bank statement, and proof of income such as pay stubs or tax returns.
• Hence, option (c) is correct.
Trend: Banking sector- lending and borrowing
Approach: Factual/Knowledge based question
• Question 13 of 30 13. Question 1 points The Sahoo committee is related to which of the following? a) FDI in agriculture b) Capital account convertibility c) Reforms in GST d) External commercial borrowings Correct Answer: d Explanation: External Commercial Borrowings (ECB) are debts taken on by an eligible entity in India from external sources for strictly commercial purposes. The ECB come in two configurations: Foreign Currency ECB (FCY ECB) Indian Currency ECB (INR ECB) The Sahoo Committee was set up in 2013, to develop a framework for access to domestic and overseas capital markets. The Committee made an assessment of the currency risk by Indian firms undertaking ECB. The Committee noted that the possibility of market failure can be ameliorated, by requiring firms that borrow in foreign currency to hedge their exchange risk exposure. The present complex array of controls on foreign currency borrowing should be done away with. The Indian domestic rupee debt market is a viable alternative to foreign borrowing for financing Indian firms and does not entail any market failure. The policy should aim at removal of all impediments to the development of the domestic rupee debt market. Hence, option (d) is correct. Source: Current Affairs Trend: Committees in News Approach: Factual/Knowledge based question Incorrect Answer: d Explanation: External Commercial Borrowings (ECB) are debts taken on by an eligible entity in India from external sources for strictly commercial purposes. The ECB come in two configurations: Foreign Currency ECB (FCY ECB) Indian Currency ECB (INR ECB) The Sahoo Committee was set up in 2013, to develop a framework for access to domestic and overseas capital markets. The Committee made an assessment of the currency risk by Indian firms undertaking ECB. The Committee noted that the possibility of market failure can be ameliorated, by requiring firms that borrow in foreign currency to hedge their exchange risk exposure. The present complex array of controls on foreign currency borrowing should be done away with. The Indian domestic rupee debt market is a viable alternative to foreign borrowing for financing Indian firms and does not entail any market failure. The policy should aim at removal of all impediments to the development of the domestic rupee debt market. Hence, option (d) is correct. Source: Current Affairs Trend: Committees in News Approach: Factual/Knowledge based question
#### 13. Question
The Sahoo committee is related to which of the following?
• a) FDI in agriculture
• b) Capital account convertibility
• c) Reforms in GST
• d) External commercial borrowings
Explanation:
• External Commercial Borrowings (ECB) are debts taken on by an eligible entity in India from external sources for strictly commercial purposes.
• The ECB come in two configurations:
• Foreign Currency ECB (FCY ECB)
• Indian Currency ECB (INR ECB)
• The Sahoo Committee was set up in 2013, to develop a framework for access to domestic and overseas capital markets.
• The Committee made an assessment of the currency risk by Indian firms undertaking ECB.
• The Committee noted that the possibility of market failure can be ameliorated, by requiring firms that borrow in foreign currency to hedge their exchange risk exposure.
• The present complex array of controls on foreign currency borrowing should be done away with.
• The Indian domestic rupee debt market is a viable alternative to foreign borrowing for financing Indian firms and does not entail any market failure.
• The policy should aim at removal of all impediments to the development of the domestic rupee debt market.
• Hence, option (d) is correct.
Trend: Committees in News
Approach: Factual/Knowledge based question
Explanation:
• External Commercial Borrowings (ECB) are debts taken on by an eligible entity in India from external sources for strictly commercial purposes.
• The ECB come in two configurations:
• Foreign Currency ECB (FCY ECB)
• Indian Currency ECB (INR ECB)
• The Sahoo Committee was set up in 2013, to develop a framework for access to domestic and overseas capital markets.
• The Committee made an assessment of the currency risk by Indian firms undertaking ECB.
• The Committee noted that the possibility of market failure can be ameliorated, by requiring firms that borrow in foreign currency to hedge their exchange risk exposure.
• The present complex array of controls on foreign currency borrowing should be done away with.
• The Indian domestic rupee debt market is a viable alternative to foreign borrowing for financing Indian firms and does not entail any market failure.
• The policy should aim at removal of all impediments to the development of the domestic rupee debt market.
• Hence, option (d) is correct.
Trend: Committees in News
Approach: Factual/Knowledge based question
• Question 14 of 30 14. Question 1 points In the context of Sovereign gold bonds (SGB), consider the following statements: The SGB scheme will drastically reduce the current account deficit of India. The investors will get an interest semi-annually on the current value of gold. Both interest income and the income occurred after the redemption are tax free. How many of the above statements are correct? a) Only one b) Only two c) All three d) None Correct Answer: d Explanation: The first SGB scheme was launched by the Government in November 2015, under Gold Monetization Scheme with an objective to reduce the demand for physical gold and shift a part of the domestic savings – used for the purchase of gold – into financial savings. Although, SGBs reduce the demand for imported physical gold and thus reduce India’s import bill and Current account deficit, it is improbable to say it will drastically reduce CAD, as CAD is dependent on many other exports and imports. Hence, statement 1 is incorrect. Issuance: Issued by the Reserve Bank of India on behalf of the Government of India. Eligibility: SGBs will be restricted for sale to resident individuals, HUFs (Hindu Undivided Family), Trusts, Universities and Charitable Institutions. Tenure: The tenure of the SGB will be for a period of eight years with an option of premature redemption after 5th year. Minimum permissible investment will be One gram of gold. Maximum limit The maximum limit of subscription shall be 4 Kg for individuals, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal year (April-March) notified by the Government from time to time. SGBs will be sold through Scheduled Commercial banks (except Small Finance Banks, Payment Banks and Regional Rural Banks), Stock Holding Corporation of India Limited, Clearing Corporation of India Limited, designated post offices and National Stock Exchange of India Limited and Bombay Stock Exchange Limited, either directly or through agents. Interest rate: The investors will be compensated at a fixed rate of 2.50% per annum payable semi-annually on the nominal value (face value or stated value) not the current value of the gold. Hence, statement 2 is incorrect. The SGBs can be used as collateral for loans. Tax Benefits: The interest on SGBs shall be taxable as per the provision of the Income Tax Act, 1961. The capital gains arising on redemption of SGB is exempted. Hence, statement 3 is incorrect. SGBs shall be eligible for trading in stock exchanges. Hence, option (d) is correct. Source: Current Affairs Trend: Important schemes in News Approach: Statement 1 can be eliminated as it is not definite that it will reduce CAD. Statement 2 and 3 are improbable as bonds are subject to taxation Incorrect Answer: d Explanation: The first SGB scheme was launched by the Government in November 2015, under Gold Monetization Scheme with an objective to reduce the demand for physical gold and shift a part of the domestic savings – used for the purchase of gold – into financial savings. Although, SGBs reduce the demand for imported physical gold and thus reduce India’s import bill and Current account deficit, it is improbable to say it will drastically reduce CAD, as CAD is dependent on many other exports and imports. Hence, statement 1 is incorrect. Issuance: Issued by the Reserve Bank of India on behalf of the Government of India. Eligibility: SGBs will be restricted for sale to resident individuals, HUFs (Hindu Undivided Family), Trusts, Universities and Charitable Institutions. Tenure: The tenure of the SGB will be for a period of eight years with an option of premature redemption after 5th year. Minimum permissible investment will be One gram of gold. Maximum limit The maximum limit of subscription shall be 4 Kg for individuals, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal year (April-March) notified by the Government from time to time. SGBs will be sold through Scheduled Commercial banks (except Small Finance Banks, Payment Banks and Regional Rural Banks), Stock Holding Corporation of India Limited, Clearing Corporation of India Limited, designated post offices and National Stock Exchange of India Limited and Bombay Stock Exchange Limited, either directly or through agents. Interest rate: The investors will be compensated at a fixed rate of 2.50% per annum payable semi-annually on the nominal value (face value or stated value) not the current value of the gold. Hence, statement 2 is incorrect. The SGBs can be used as collateral for loans. Tax Benefits: The interest on SGBs shall be taxable as per the provision of the Income Tax Act, 1961. The capital gains arising on redemption of SGB is exempted. Hence, statement 3 is incorrect. SGBs shall be eligible for trading in stock exchanges. Hence, option (d) is correct. Source: Current Affairs Trend: Important schemes in News Approach: Statement 1 can be eliminated as it is not definite that it will reduce CAD. Statement 2 and 3 are improbable as bonds are subject to taxation
#### 14. Question
In the context of Sovereign gold bonds (SGB), consider the following statements:
• The SGB scheme will drastically reduce the current account deficit of India.
• The investors will get an interest semi-annually on the current value of gold.
• Both interest income and the income occurred after the redemption are tax free.
How many of the above statements are correct?
• a) Only one
• b) Only two
• c) All three
Explanation:
• The first SGB scheme was launched by the Government in November 2015, under Gold Monetization Scheme with an objective to reduce the demand for physical gold and shift a part of the domestic savings – used for the purchase of gold – into financial savings.
• Although, SGBs reduce the demand for imported physical gold and thus reduce India’s import bill and Current account deficit, it is improbable to say it will drastically reduce CAD, as CAD is dependent on many other exports and imports. Hence, statement 1 is incorrect.
• Issuance: Issued by the Reserve Bank of India on behalf of the Government of India.
• Eligibility: SGBs will be restricted for sale to resident individuals, HUFs (Hindu Undivided Family), Trusts, Universities and Charitable Institutions.
• Tenure: The tenure of the SGB will be for a period of eight years with an option of premature redemption after 5th year.
• Minimum permissible investment will be One gram of gold.
• Maximum limit The maximum limit of subscription shall be 4 Kg for individuals, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal year (April-March) notified by the Government from time to time.
• SGBs will be sold through Scheduled Commercial banks (except Small Finance Banks, Payment Banks and Regional Rural Banks), Stock Holding Corporation of India Limited, Clearing Corporation of India Limited, designated post offices and National Stock Exchange of India Limited and Bombay Stock Exchange Limited, either directly or through agents.
• Interest rate: The investors will be compensated at a fixed rate of 2.50% per annum payable semi-annually on the nominal value (face value or stated value) not the current value of the gold. Hence, statement 2 is incorrect.
• The SGBs can be used as collateral for loans.
• Tax Benefits: The interest on SGBs shall be taxable as per the provision of the Income Tax Act, 1961. The capital gains arising on redemption of SGB is exempted. Hence, statement 3 is incorrect.
• SGBs shall be eligible for trading in stock exchanges.
• Hence, option (d) is correct.
Trend: Important schemes in News
Approach: Statement 1 can be eliminated as it is not definite that it will reduce CAD. Statement 2 and 3 are improbable as bonds are subject to taxation
Explanation:
• The first SGB scheme was launched by the Government in November 2015, under Gold Monetization Scheme with an objective to reduce the demand for physical gold and shift a part of the domestic savings – used for the purchase of gold – into financial savings.
• Although, SGBs reduce the demand for imported physical gold and thus reduce India’s import bill and Current account deficit, it is improbable to say it will drastically reduce CAD, as CAD is dependent on many other exports and imports. Hence, statement 1 is incorrect.
• Issuance: Issued by the Reserve Bank of India on behalf of the Government of India.
• Eligibility: SGBs will be restricted for sale to resident individuals, HUFs (Hindu Undivided Family), Trusts, Universities and Charitable Institutions.
• Tenure: The tenure of the SGB will be for a period of eight years with an option of premature redemption after 5th year.
• Minimum permissible investment will be One gram of gold.
• Maximum limit The maximum limit of subscription shall be 4 Kg for individuals, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal year (April-March) notified by the Government from time to time.
• SGBs will be sold through Scheduled Commercial banks (except Small Finance Banks, Payment Banks and Regional Rural Banks), Stock Holding Corporation of India Limited, Clearing Corporation of India Limited, designated post offices and National Stock Exchange of India Limited and Bombay Stock Exchange Limited, either directly or through agents.
• Interest rate: The investors will be compensated at a fixed rate of 2.50% per annum payable semi-annually on the nominal value (face value or stated value) not the current value of the gold. Hence, statement 2 is incorrect.
• The SGBs can be used as collateral for loans.
• Tax Benefits: The interest on SGBs shall be taxable as per the provision of the Income Tax Act, 1961. The capital gains arising on redemption of SGB is exempted. Hence, statement 3 is incorrect.
• SGBs shall be eligible for trading in stock exchanges.
• Hence, option (d) is correct.
Trend: Important schemes in News
Approach: Statement 1 can be eliminated as it is not definite that it will reduce CAD. Statement 2 and 3 are improbable as bonds are subject to taxation
• Question 15 of 30 15. Question 1 points Which of the following best describes ‘disposable income’? a) It is the income left with an individual after paying all the taxes. b) It is the total income received by the individuals of a country from all sources before payment of direct taxes in one year. c) It is the consumption income and savings left with an individual after paying direct taxes only. d) It is the income obtained by private individuals from any source including transfer payments such as pensions, unemployment allowances, sickness and other social security benefits, gifts and remittances from abroad etc. Correct Answer: c Explanation: Disposable income or personal disposable income means the actual income which can be spent on consumption by individuals and families. The whole of the personal income cannot be spent on consumption, because it is the income that accrues before direct taxes have actually been paid. Therefore, in order to obtain disposable income, direct taxes are deducted from personal income. Thus Disposable Income=Personal Income – Direct Taxes. It is the final income left for consumption purposes and for saving. Hence, option (c) is correct. Source: Indian Economy Trend: Core concepts and their feature Approach: Factual/Knowledge based question Incorrect Answer: c Explanation: Disposable income or personal disposable income means the actual income which can be spent on consumption by individuals and families. The whole of the personal income cannot be spent on consumption, because it is the income that accrues before direct taxes have actually been paid. Therefore, in order to obtain disposable income, direct taxes are deducted from personal income. Thus Disposable Income=Personal Income – Direct Taxes. It is the final income left for consumption purposes and for saving. Hence, option (c) is correct. Source: Indian Economy Trend: Core concepts and their feature Approach: Factual/Knowledge based question
#### 15. Question
Which of the following best describes ‘disposable income’?
• a) It is the income left with an individual after paying all the taxes.
• b) It is the total income received by the individuals of a country from all sources before payment of direct taxes in one year.
• c) It is the consumption income and savings left with an individual after paying direct taxes only.
• d) It is the income obtained by private individuals from any source including transfer payments such as pensions, unemployment allowances, sickness and other social security benefits, gifts and remittances from abroad etc.
Explanation:
• Disposable income or personal disposable income means the actual income which can be spent on consumption by individuals and families.
• The whole of the personal income cannot be spent on consumption, because it is the income that accrues before direct taxes have actually been paid.
• Therefore, in order to obtain disposable income, direct taxes are deducted from personal income. Thus Disposable Income=Personal Income – Direct Taxes.
• It is the final income left for consumption purposes and for saving.
• Hence, option (c) is correct.
Trend: Core concepts and their feature
Approach: Factual/Knowledge based question
Explanation:
• Disposable income or personal disposable income means the actual income which can be spent on consumption by individuals and families.
• The whole of the personal income cannot be spent on consumption, because it is the income that accrues before direct taxes have actually been paid.
• Therefore, in order to obtain disposable income, direct taxes are deducted from personal income. Thus Disposable Income=Personal Income – Direct Taxes.
• It is the final income left for consumption purposes and for saving.
• Hence, option (c) is correct.
Trend: Core concepts and their feature
Approach: Factual/Knowledge based question
• Question 16 of 30 16. Question 1 points In the context of monetary policy stances, consider the following pairs: Hawkish Stance- Aggressive stance to increase the money supply Dovish Stance –Indicates the need to stimulate the economy Accommodative Stance- The money supply is neither increased nor decreased How many of the above pairs are correctly matched? a) Only one b) Only two c) All three d) None Correct Answer: a Explanation: Monetary Policy Committee of the Reserve Bank of India meets every two months to take key decisions on the Monetary Policy of the Country. The monetary policy committee comes up with the monetary policy statement once every two months also known as Bi-Monthly Monetary Policy Statement in which the Committee decides upon the Key Policy Rates such as Bank Rate, Repo Rate, Reverse Repo Rate, Marginal Standing Facility, Cash Reserve Ratio and Statutory Liquidity Ratio. Monetary Policy Stances are namely Dovish, Hawkish, Accommodative & Neutral, so that now for the upcoming RBI’s Monetary Policy Statements, you could well comprehend the meaning of these Monetary Policy Stances. A stance basically means an attitude to a particular issue. Hawkish Monetary Policy Stance In order to keep inflation in check, the Hawkish stance favours high-interest rates. Because of the high-interest rates, borrowing (taking loans from banks) will become less attractive. Due to the dearth of money, consumers would not purchase or purchase less and also would stay away from taking credit (loans) from banks. This would lead to low domestic demand for Goods & Services. As a result of low demand, prices of Goods & Services would tend to stabilise. This would prevent inflation. This is a complete circle. So, whenever RBI says that the Monetary Policy Stance is Hawkish, it means there would be a hike in rate and reduction of money supply. Hence, pair 1 is incorrect. Dovish Monetary Policy Stance This monetary policy stance involves low-interest rates. Low-Interest Rates would entice consumers to take credit (loans) from Banks and other sources. Now that people have money in their hands or let’s say money at their disposal, they would start spending more and thereby demand the products and services would rise. As the demand increases, the prices of Goods & Services would rise, which stimulates the economy. Hence, pair 2 is correct. Accommodative Monetary Policy Stance This happens when a central bank (RBI) attempts to expand the overall money supply to boost the economy when the economic growth is slowing down. Accommodative monetary policy is implemented to allow the money supply to rise. This is also known as “easy monetary policy”. Hence, pair 3 is incorrect. Neutral Monetary Policy Stance The policy rates neither stimulate (speed up) nor restrain (slowdown) economic growth. Economic conditions are just right. The Key Policy Rates are neither increased nor decreased. Hence, option (a) is correct. Source: Indian Economy Trend: Monetary Policy instruments Approach: Applied Knowledge Incorrect Answer: a Explanation: Monetary Policy Committee of the Reserve Bank of India meets every two months to take key decisions on the Monetary Policy of the Country. The monetary policy committee comes up with the monetary policy statement once every two months also known as Bi-Monthly Monetary Policy Statement in which the Committee decides upon the Key Policy Rates such as Bank Rate, Repo Rate, Reverse Repo Rate, Marginal Standing Facility, Cash Reserve Ratio and Statutory Liquidity Ratio. Monetary Policy Stances are namely Dovish, Hawkish, Accommodative & Neutral, so that now for the upcoming RBI’s Monetary Policy Statements, you could well comprehend the meaning of these Monetary Policy Stances. A stance basically means an attitude to a particular issue. Hawkish Monetary Policy Stance In order to keep inflation in check, the Hawkish stance favours high-interest rates. Because of the high-interest rates, borrowing (taking loans from banks) will become less attractive. Due to the dearth of money, consumers would not purchase or purchase less and also would stay away from taking credit (loans) from banks. This would lead to low domestic demand for Goods & Services. As a result of low demand, prices of Goods & Services would tend to stabilise. This would prevent inflation. This is a complete circle. So, whenever RBI says that the Monetary Policy Stance is Hawkish, it means there would be a hike in rate and reduction of money supply. Hence, pair 1 is incorrect. Dovish Monetary Policy Stance This monetary policy stance involves low-interest rates. Low-Interest Rates would entice consumers to take credit (loans) from Banks and other sources. Now that people have money in their hands or let’s say money at their disposal, they would start spending more and thereby demand the products and services would rise. As the demand increases, the prices of Goods & Services would rise, which stimulates the economy. Hence, pair 2 is correct. Accommodative Monetary Policy Stance This happens when a central bank (RBI) attempts to expand the overall money supply to boost the economy when the economic growth is slowing down. Accommodative monetary policy is implemented to allow the money supply to rise. This is also known as “easy monetary policy”. Hence, pair 3 is incorrect. Neutral Monetary Policy Stance The policy rates neither stimulate (speed up) nor restrain (slowdown) economic growth. Economic conditions are just right. The Key Policy Rates are neither increased nor decreased. Hence, option (a) is correct. Source: Indian Economy Trend: Monetary Policy instruments Approach: Applied Knowledge
#### 16. Question
In the context of monetary policy stances, consider the following pairs:
• Hawkish Stance- Aggressive stance to increase the money supply
• Dovish Stance –Indicates the need to stimulate the economy
• Accommodative Stance- The money supply is neither increased nor decreased
How many of the above pairs are correctly matched?
• a) Only one
• b) Only two
• c) All three
Explanation:
• Monetary Policy Committee of the Reserve Bank of India meets every two months to take key decisions on the Monetary Policy of the Country.
• The monetary policy committee comes up with the monetary policy statement once every two months also known as Bi-Monthly Monetary Policy Statement in which the Committee decides upon the Key Policy Rates such as Bank Rate, Repo Rate, Reverse Repo Rate, Marginal Standing Facility, Cash Reserve Ratio and Statutory Liquidity Ratio.
• Monetary Policy Stances are namely Dovish, Hawkish, Accommodative & Neutral, so that now for the upcoming RBI’s Monetary Policy Statements, you could well comprehend the meaning of these Monetary Policy Stances. A stance basically means an attitude to a particular issue.
• Hawkish Monetary Policy Stance
• In order to keep inflation in check, the Hawkish stance favours high-interest rates. Because of the high-interest rates, borrowing (taking loans from banks) will become less attractive.
• Due to the dearth of money, consumers would not purchase or purchase less and also would stay away from taking credit (loans) from banks.
• This would lead to low domestic demand for Goods & Services. As a result of low demand, prices of Goods & Services would tend to stabilise. This would prevent inflation. This is a complete circle.
• So, whenever RBI says that the Monetary Policy Stance is Hawkish, it means there would be a hike in rate and reduction of money supply. Hence, pair 1 is incorrect.
• Dovish Monetary Policy Stance
• This monetary policy stance involves low-interest rates. Low-Interest Rates would entice consumers to take credit (loans) from Banks and other sources.
• Now that people have money in their hands or let’s say money at their disposal, they would start spending more and thereby demand the products and services would rise.
• As the demand increases, the prices of Goods & Services would rise, which stimulates the economy. Hence, pair 2 is correct.
• Accommodative Monetary Policy Stance
• This happens when a central bank (RBI) attempts to expand the overall money supply to boost the economy when the economic growth is slowing down.
• Accommodative monetary policy is implemented to allow the money supply to rise. This is also known as “easy monetary policy”. Hence, pair 3 is incorrect.
• Neutral Monetary Policy Stance
• The policy rates neither stimulate (speed up) nor restrain (slowdown) economic growth. Economic conditions are just right. The Key Policy Rates are neither increased nor decreased.
• Hence, option (a) is correct.
Trend: Monetary Policy instruments
Approach: Applied Knowledge
Explanation:
• Monetary Policy Committee of the Reserve Bank of India meets every two months to take key decisions on the Monetary Policy of the Country.
• The monetary policy committee comes up with the monetary policy statement once every two months also known as Bi-Monthly Monetary Policy Statement in which the Committee decides upon the Key Policy Rates such as Bank Rate, Repo Rate, Reverse Repo Rate, Marginal Standing Facility, Cash Reserve Ratio and Statutory Liquidity Ratio.
• Monetary Policy Stances are namely Dovish, Hawkish, Accommodative & Neutral, so that now for the upcoming RBI’s Monetary Policy Statements, you could well comprehend the meaning of these Monetary Policy Stances. A stance basically means an attitude to a particular issue.
• Hawkish Monetary Policy Stance
• In order to keep inflation in check, the Hawkish stance favours high-interest rates. Because of the high-interest rates, borrowing (taking loans from banks) will become less attractive.
• Due to the dearth of money, consumers would not purchase or purchase less and also would stay away from taking credit (loans) from banks.
• This would lead to low domestic demand for Goods & Services. As a result of low demand, prices of Goods & Services would tend to stabilise. This would prevent inflation. This is a complete circle.
• So, whenever RBI says that the Monetary Policy Stance is Hawkish, it means there would be a hike in rate and reduction of money supply. Hence, pair 1 is incorrect.
• Dovish Monetary Policy Stance
• This monetary policy stance involves low-interest rates. Low-Interest Rates would entice consumers to take credit (loans) from Banks and other sources.
• Now that people have money in their hands or let’s say money at their disposal, they would start spending more and thereby demand the products and services would rise.
• As the demand increases, the prices of Goods & Services would rise, which stimulates the economy. Hence, pair 2 is correct.
• Accommodative Monetary Policy Stance
• This happens when a central bank (RBI) attempts to expand the overall money supply to boost the economy when the economic growth is slowing down.
• Accommodative monetary policy is implemented to allow the money supply to rise. This is also known as “easy monetary policy”. Hence, pair 3 is incorrect.
• Neutral Monetary Policy Stance
• The policy rates neither stimulate (speed up) nor restrain (slowdown) economic growth. Economic conditions are just right. The Key Policy Rates are neither increased nor decreased.
• Hence, option (a) is correct.
Trend: Monetary Policy instruments
Approach: Applied Knowledge
• Question 17 of 30 17. Question 1 points Which of the following is/are used in Precision Farming? Variable-rate technology Grid sampling Global Positioning System Remote sensors Yield monitors Proximate sensors Select the correct answer using the code given below: (a) 1, 2, 4 and 6 only (b) 2, 3, 4 and 6 only (c) 1,2,3,4 and 6 only (d) 1, 2,3,4,5 and 6 Correct Answer: d Explanation: Precision farming is an approach where inputs are utilized in precise amounts to get increased average yields, compared to traditional cultivation techniques. It is the science of improving crop yields using high technology sensor and analysis tools. It is referred to as ‘precision’ because it is focused on performing the right intervention (e.g., providing water to crops), in the right place, at the right time, responding to the specific demands of individual crops and individual areas of land with superior levels of precision. Variable-rate technology: Variable-rate technology (VRT) consists of farm field equipment with the ability to precisely control the rate of application of crop inputs that can be varied in their application including fertilizers, irrigation, tillage, insect control etc. Grid sampling: It is a technique for segmenting fields into small units. Soil samples from those grids are used to calculate the proper application rates for crop inputs. Global Positioning System: GPS is used to identify the location of farm equipment in the field. It provides an accurate positioning system necessary for field implementation of variable rate technology in agricultural input ma engagement. Remote sensors: Remote sensing (in agriculture terms) means viewing crops from overhead (from a satellite or low-flying aircraft/drone) without coming into contact, recording and displaying the image. This technique provides the map to pinpoint the field problems more effectively. Yield monitors: Crop yield measuring tools fitted on harvesting machinery are called yield monitors. Proximate sensors: Proximate sensors can be used to measure soil parameters (Nitrogen content, pH etc.) and crop properties as the tractor passes over the field. Hence, option (d) is correct. Source: Science & Technology Trend: Use of sophisticated technology in Agriculture Approach: Knowledge based question Incorrect Answer: d Explanation: Precision farming is an approach where inputs are utilized in precise amounts to get increased average yields, compared to traditional cultivation techniques. It is the science of improving crop yields using high technology sensor and analysis tools. It is referred to as ‘precision’ because it is focused on performing the right intervention (e.g., providing water to crops), in the right place, at the right time, responding to the specific demands of individual crops and individual areas of land with superior levels of precision. Variable-rate technology: Variable-rate technology (VRT) consists of farm field equipment with the ability to precisely control the rate of application of crop inputs that can be varied in their application including fertilizers, irrigation, tillage, insect control etc. Grid sampling: It is a technique for segmenting fields into small units. Soil samples from those grids are used to calculate the proper application rates for crop inputs. Global Positioning System: GPS is used to identify the location of farm equipment in the field. It provides an accurate positioning system necessary for field implementation of variable rate technology in agricultural input ma engagement. Remote sensors: Remote sensing (in agriculture terms) means viewing crops from overhead (from a satellite or low-flying aircraft/drone) without coming into contact, recording and displaying the image. This technique provides the map to pinpoint the field problems more effectively. Yield monitors: Crop yield measuring tools fitted on harvesting machinery are called yield monitors. Proximate sensors: Proximate sensors can be used to measure soil parameters (Nitrogen content, pH etc.) and crop properties as the tractor passes over the field. Hence, option (d) is correct. Source: Science & Technology Trend: Use of sophisticated technology in Agriculture Approach: Knowledge based question
#### 17. Question
Which of the following is/are used in Precision Farming?
• Variable-rate technology
• Grid sampling
• Global Positioning System
• Remote sensors
• Yield monitors
• Proximate sensors
Select the correct answer using the code given below:
• (a) 1, 2, 4 and 6 only
• (b) 2, 3, 4 and 6 only
• (c) 1,2,3,4 and 6 only
• (d) 1, 2,3,4,5 and 6
Explanation:
• Precision farming is an approach where inputs are utilized in precise amounts to get increased average yields, compared to traditional cultivation techniques. It is the science of improving crop yields using high technology sensor and analysis tools. It is referred to as ‘precision’ because it is focused on performing the right intervention (e.g., providing water to crops), in the right place, at the right time, responding to the specific demands of individual crops and individual areas of land with superior levels of precision.
• Variable-rate technology: Variable-rate technology (VRT) consists of farm field equipment with the ability to precisely control the rate of application of crop inputs that can be varied in their application including fertilizers, irrigation, tillage, insect control etc.
• Grid sampling: It is a technique for segmenting fields into small units. Soil samples from those grids are used to calculate the proper application rates for crop inputs.
• Global Positioning System: GPS is used to identify the location of farm equipment in the field. It provides an accurate positioning system necessary for field implementation of variable rate technology in agricultural input ma engagement.
• Remote sensors: Remote sensing (in agriculture terms) means viewing crops from overhead (from a satellite or low-flying aircraft/drone) without coming into contact, recording and displaying the image. This technique provides the map to pinpoint the field problems more effectively.
• Yield monitors: Crop yield measuring tools fitted on harvesting machinery are called yield monitors.
• Proximate sensors: Proximate sensors can be used to measure soil parameters (Nitrogen content, pH etc.) and crop properties as the tractor passes over the field.
• Hence, option (d) is correct.
Trend: Use of sophisticated technology in Agriculture
Approach: Knowledge based question
Explanation:
• Precision farming is an approach where inputs are utilized in precise amounts to get increased average yields, compared to traditional cultivation techniques. It is the science of improving crop yields using high technology sensor and analysis tools. It is referred to as ‘precision’ because it is focused on performing the right intervention (e.g., providing water to crops), in the right place, at the right time, responding to the specific demands of individual crops and individual areas of land with superior levels of precision.
• Variable-rate technology: Variable-rate technology (VRT) consists of farm field equipment with the ability to precisely control the rate of application of crop inputs that can be varied in their application including fertilizers, irrigation, tillage, insect control etc.
• Grid sampling: It is a technique for segmenting fields into small units. Soil samples from those grids are used to calculate the proper application rates for crop inputs.
• Global Positioning System: GPS is used to identify the location of farm equipment in the field. It provides an accurate positioning system necessary for field implementation of variable rate technology in agricultural input ma engagement.
• Remote sensors: Remote sensing (in agriculture terms) means viewing crops from overhead (from a satellite or low-flying aircraft/drone) without coming into contact, recording and displaying the image. This technique provides the map to pinpoint the field problems more effectively.
• Yield monitors: Crop yield measuring tools fitted on harvesting machinery are called yield monitors.
• Proximate sensors: Proximate sensors can be used to measure soil parameters (Nitrogen content, pH etc.) and crop properties as the tractor passes over the field.
• Hence, option (d) is correct.
Trend: Use of sophisticated technology in Agriculture
Approach: Knowledge based question
• Question 18 of 30 18. Question 1 points In question given below, there are two statements marked as Assertion (A) and Reason (R): Assertion (A): In comparison, tax buoyancy is a better indicator of economic growth than tax elasticity. Reason (R): Tax Elasticity refers to changes in tax revenue in response to changes in tax rate. Select the correct answer using the code given below: a) Both A and R are true and R is the correct explanation of A. b) Both A and R are true but R is not the correct explanation of A. c) A is true but R is false. d) A is false but R is true. Correct Answer: a Tax buoyancy explains the relationship between the changes in government’s tax revenue growth and the changes in GDP. It refers to increase in the tax revenue growth due to growth of GDP. It depends upon: the size of the tax base; the friendliness of the tax administration; the rationality and simplicity of tax rates; Tax Elasticity: It refers to changes in tax revenue in response to changes in tax rate. For example, how tax revenue changes if the government increases corporate income tax from 25 per cent to 30 per cent indicate tax elasticity. When a tax is buoyant, government’s revenue increases without increasing the tax rate. Whereas, in tax elasticity, when tax rates are increased, it puts more burden on tax payers. If tax rates are reduced, it reduces the revenue of the government. Hence, both (A) and (R) are true and (R) is the correct explanation of (A). Hence, option (a) is correct. Source: Indian Economy Trend: Interrelationship between tax structure, revenue and income Approach: Applied Knowledge Incorrect Answer: a Tax buoyancy explains the relationship between the changes in government’s tax revenue growth and the changes in GDP. It refers to increase in the tax revenue growth due to growth of GDP. It depends upon: the size of the tax base; the friendliness of the tax administration; the rationality and simplicity of tax rates; Tax Elasticity: It refers to changes in tax revenue in response to changes in tax rate. For example, how tax revenue changes if the government increases corporate income tax from 25 per cent to 30 per cent indicate tax elasticity. When a tax is buoyant, government’s revenue increases without increasing the tax rate. Whereas, in tax elasticity, when tax rates are increased, it puts more burden on tax payers. If tax rates are reduced, it reduces the revenue of the government. Hence, both (A) and (R) are true and (R) is the correct explanation of (A). Hence, option (a) is correct. Source: Indian Economy Trend: Interrelationship between tax structure, revenue and income Approach: Applied Knowledge
#### 18. Question
In question given below, there are two statements marked as Assertion (A) and Reason (R):
Assertion (A): In comparison, tax buoyancy is a better indicator of economic growth than tax elasticity.
Reason (R): Tax Elasticity refers to changes in tax revenue in response to changes in tax rate.
Select the correct answer using the code given below:
• a) Both A and R are true and R is the correct explanation of A.
• b) Both A and R are true but R is not the correct explanation of A.
• c) A is true but R is false.
• d) A is false but R is true.
• Tax buoyancy explains the relationship between the changes in government’s tax revenue growth and the changes in GDP.
• It refers to increase in the tax revenue growth due to growth of GDP.
• It depends upon: the size of the tax base; the friendliness of the tax administration; the rationality and simplicity of tax rates;
• Tax Elasticity: It refers to changes in tax revenue in response to changes in tax rate.
• For example, how tax revenue changes if the government increases corporate income tax from 25 per cent to 30 per cent indicate tax elasticity.
• When a tax is buoyant, government’s revenue increases without increasing the tax rate. Whereas, in tax elasticity, when tax rates are increased, it puts more burden on tax payers. If tax rates are reduced, it reduces the revenue of the government.
• Hence, both (A) and (R) are true and (R) is the correct explanation of (A).
• Hence, option (a) is correct.
Trend: Interrelationship between tax structure, revenue and income
Approach: Applied Knowledge
• Tax buoyancy explains the relationship between the changes in government’s tax revenue growth and the changes in GDP.
• It refers to increase in the tax revenue growth due to growth of GDP.
• It depends upon: the size of the tax base; the friendliness of the tax administration; the rationality and simplicity of tax rates;
• Tax Elasticity: It refers to changes in tax revenue in response to changes in tax rate.
• For example, how tax revenue changes if the government increases corporate income tax from 25 per cent to 30 per cent indicate tax elasticity.
• When a tax is buoyant, government’s revenue increases without increasing the tax rate. Whereas, in tax elasticity, when tax rates are increased, it puts more burden on tax payers. If tax rates are reduced, it reduces the revenue of the government.
• Hence, both (A) and (R) are true and (R) is the correct explanation of (A).
• Hence, option (a) is correct.
Trend: Interrelationship between tax structure, revenue and income
Approach: Applied Knowledge
• Question 19 of 30 19. Question 1 points Which of the following African nations recently undertook Debt-for-nature Swap? a) Gambia b) Ghana c) Gabon d) Guinea Correct Answer: c Solution: Gabon has announced a $500 million debt-for-nature swap. It is the largest such deal signed by any African country to refinance its debt and conserve marine resources. Debt-for-nature swaps allow heavily indebted developing countries to seek help from financial institutions in the developed world with paying off their debt if they agree to spend on conservation of natural resources. Hence, option (c) is correct. Source: Current Affairs Trend: Financial initiatives in News Approach: Factual/Knowledge based question Incorrect Answer: c Solution: Gabon has announced a $500 million debt-for-nature swap. It is the largest such deal signed by any African country to refinance its debt and conserve marine resources. Debt-for-nature swaps allow heavily indebted developing countries to seek help from financial institutions in the developed world with paying off their debt if they agree to spend on conservation of natural resources. Hence, option (c) is correct. Source: Current Affairs Trend: Financial initiatives in News Approach: Factual/Knowledge based question
#### 19. Question
Which of the following African nations recently undertook Debt-for-nature Swap?
• Gabon has announced a $500 million debt-for-nature swap. It is the largest such deal signed by any African country to refinance its debt and conserve marine resources.
• Debt-for-nature swaps allow heavily indebted developing countries to seek help from financial institutions in the developed world with paying off their debt if they agree to spend on conservation of natural resources.
• Hence, option (c) is correct.
Trend: Financial initiatives in News
Approach: Factual/Knowledge based question
• Gabon has announced a $500 million debt-for-nature swap. It is the largest such deal signed by any African country to refinance its debt and conserve marine resources.
• Debt-for-nature swaps allow heavily indebted developing countries to seek help from financial institutions in the developed world with paying off their debt if they agree to spend on conservation of natural resources.
• Hence, option (c) is correct.
Trend: Financial initiatives in News
Approach: Factual/Knowledge based question
• Question 20 of 30 20. Question 1 points Which of the following comes under ‘tax collected at source’ mechanism? Motor Vehicles below Rs. 10 lakhs Alcohol for human consumption Overseas tour Money sent abroad for educational purposes Select the correct answer using the code given below: a) 1 and 3 only b) 2 and 3 only c) 2,3 and 4 only d) 1,2 and 4 only Correct Answer: c Explanation: Indian Income Tax Act has provisions for tax collection at source or TCS. In these provisions, certain persons are required to collect a specified additional percentage of tax from their buyers on exceptional transactions. Tax collected at source (TCS) is the tax collected by the seller from the buyer on sale so that it can be deposited with the tax authorities. Section 206C of the Income-tax act governs the goods on which the seller has to collect tax from the buyers. Example: If an item has TCS rate of 20 Rs. and the MRP 0f the item is Rs. 80 ,then the buyer has to pay 80+20=100 Rs. to the seller at the point of sale. The funds are then transferred by the seller to a certain approved branch of a bank that has been authorised to accept payments. The seller is only responsible for collecting this tax from the customer and is not liable for paying it himself or herself. The tax is intended to be collected while selling items, conducting transactions or receiving a payment in from the buyer. Items TCS rates Tax collected at source (TCS) for foreign remittances under liberalized remittances scheme (LRS) was raised from 5% to 20% in Budget 2023. Hence, option (c) is correct. Source: Indian Economy Trend: GST and taxation Approach: Factual/Knowledge based question Incorrect Answer: c Explanation: Indian Income Tax Act has provisions for tax collection at source or TCS. In these provisions, certain persons are required to collect a specified additional percentage of tax from their buyers on exceptional transactions. Tax collected at source (TCS) is the tax collected by the seller from the buyer on sale so that it can be deposited with the tax authorities. Section 206C of the Income-tax act governs the goods on which the seller has to collect tax from the buyers. Example: If an item has TCS rate of 20 Rs. and the MRP 0f the item is Rs. 80 ,then the buyer has to pay 80+20=100 Rs. to the seller at the point of sale. The funds are then transferred by the seller to a certain approved branch of a bank that has been authorised to accept payments. The seller is only responsible for collecting this tax from the customer and is not liable for paying it himself or herself. The tax is intended to be collected while selling items, conducting transactions or receiving a payment in from the buyer. Items TCS rates Tax collected at source (TCS) for foreign remittances under liberalized remittances scheme (LRS) was raised from 5% to 20% in Budget 2023. Hence, option (c) is correct. Source: Indian Economy Trend: GST and taxation Approach: Factual/Knowledge based question
#### 20. Question
Which of the following comes under ‘tax collected at source’ mechanism?
• Motor Vehicles below Rs. 10 lakhs
• Alcohol for human consumption
• Overseas tour
• Money sent abroad for educational purposes
Select the correct answer using the code given below:
• a) 1 and 3 only
• b) 2 and 3 only
• c) 2,3 and 4 only
• d) 1,2 and 4 only
Explanation:
• Indian Income Tax Act has provisions for tax collection at source or TCS. In these provisions, certain persons are required to collect a specified additional percentage of tax from their buyers on exceptional transactions.
• Tax collected at source (TCS) is the tax collected by the seller from the buyer on sale so that it can be deposited with the tax authorities.
• Section 206C of the Income-tax act governs the goods on which the seller has to collect tax from the buyers.
• Example: If an item has TCS rate of 20 Rs. and the MRP 0f the item is Rs. 80 ,then the buyer has to pay 80+20=100 Rs. to the seller at the point of sale. The funds are then transferred by the seller to a certain approved branch of a bank that has been authorised to accept payments.
• The seller is only responsible for collecting this tax from the customer and is not liable for paying it himself or herself.
• The tax is intended to be collected while selling items, conducting transactions or receiving a payment in from the buyer.
Items TCS rates
• Tax collected at source (TCS) for foreign remittances under liberalized remittances scheme (LRS) was raised from 5% to 20% in Budget 2023.
• Hence, option (c) is correct.
Trend: GST and taxation
Approach: Factual/Knowledge based question
Explanation:
• Indian Income Tax Act has provisions for tax collection at source or TCS. In these provisions, certain persons are required to collect a specified additional percentage of tax from their buyers on exceptional transactions.
• Tax collected at source (TCS) is the tax collected by the seller from the buyer on sale so that it can be deposited with the tax authorities.
• Section 206C of the Income-tax act governs the goods on which the seller has to collect tax from the buyers.
• Example: If an item has TCS rate of 20 Rs. and the MRP 0f the item is Rs. 80 ,then the buyer has to pay 80+20=100 Rs. to the seller at the point of sale. The funds are then transferred by the seller to a certain approved branch of a bank that has been authorised to accept payments.
• The seller is only responsible for collecting this tax from the customer and is not liable for paying it himself or herself.
• The tax is intended to be collected while selling items, conducting transactions or receiving a payment in from the buyer.
Items TCS rates
• Tax collected at source (TCS) for foreign remittances under liberalized remittances scheme (LRS) was raised from 5% to 20% in Budget 2023.
• Hence, option (c) is correct.
Trend: GST and taxation
Approach: Factual/Knowledge based question
• Question 21 of 30 21. Question 1 points Which of the following may lead to radio blackouts on earth? Ionization of the upper atmosphere Intense solar flares and coronal eruptions Which of the above is/are correct? a) 1 Only b) 2 Only c) Both 1 and 2 d) Neither 1 nor 2 Correct Solution: c) Justification: Recently, a powerful solar flare, classified as an “X-class” flare, hit Earth, causing an eruption of X-ray and ultraviolet radiation. The flare resulted in a radio blackout for about an hour in parts of southeast Asia, Australia, and New Zealand due to the ionization of the upper atmosphere. This event follows a series of strong solar activities, including coronal holes and eruptions, which even led to the appearance of the Northern Lights as far south as Arizona. The Sun has already produced three moderate “M-class” flares in the past day, and there is a forecast for more M-class flares in the coming days, with a slight chance of another X-class flare. Q Source: https://www.insightsonindia.com/wp-content/uploads/2023/08/CA-30-JULY-2023-MONTHLY.pdf Trend: solar storms effect on Earth Approach: Factual/Knowledge based question Incorrect Solution: c) Justification: Recently, a powerful solar flare, classified as an “X-class” flare, hit Earth, causing an eruption of X-ray and ultraviolet radiation. The flare resulted in a radio blackout for about an hour in parts of southeast Asia, Australia, and New Zealand due to the ionization of the upper atmosphere. This event follows a series of strong solar activities, including coronal holes and eruptions, which even led to the appearance of the Northern Lights as far south as Arizona. The Sun has already produced three moderate “M-class” flares in the past day, and there is a forecast for more M-class flares in the coming days, with a slight chance of another X-class flare. Q Source: https://www.insightsonindia.com/wp-content/uploads/2023/08/CA-30-JULY-2023-MONTHLY.pdf Trend: solar storms effect on Earth Approach: Factual/Knowledge based question
#### 21. Question
Which of the following may lead to radio blackouts on earth?
• Ionization of the upper atmosphere
• Intense solar flares and coronal eruptions
Which of the above is/are correct?
• c) Both 1 and 2
• d) Neither 1 nor 2
Solution: c)
Justification: Recently, a powerful solar flare, classified as an “X-class” flare, hit Earth, causing an eruption of X-ray and ultraviolet radiation.
• The flare resulted in a radio blackout for about an hour in parts of southeast Asia, Australia, and New Zealand due to the ionization of the upper atmosphere.
• This event follows a series of strong solar activities, including coronal holes and eruptions, which even led to the appearance of the Northern Lights as far south as Arizona.
• The Sun has already produced three moderate “M-class” flares in the past day, and there is a forecast for more M-class flares in the coming days, with a slight chance of another X-class flare.
Q Source: https://www.insightsonindia.com/wp-content/uploads/2023/08/CA-30-JULY-2023-MONTHLY.pdf
Trend: solar storms effect on Earth
Approach: Factual/Knowledge based question
Solution: c)
Justification: Recently, a powerful solar flare, classified as an “X-class” flare, hit Earth, causing an eruption of X-ray and ultraviolet radiation.
• The flare resulted in a radio blackout for about an hour in parts of southeast Asia, Australia, and New Zealand due to the ionization of the upper atmosphere.
• This event follows a series of strong solar activities, including coronal holes and eruptions, which even led to the appearance of the Northern Lights as far south as Arizona.
• The Sun has already produced three moderate “M-class” flares in the past day, and there is a forecast for more M-class flares in the coming days, with a slight chance of another X-class flare.
Q Source: https://www.insightsonindia.com/wp-content/uploads/2023/08/CA-30-JULY-2023-MONTHLY.pdf
Trend: solar storms effect on Earth
Approach: Factual/Knowledge based question
• Question 22 of 30 22. Question 1 points Consider the following statements: India currently does not conduct a joint military training programme with any European nation a joint navy exercise with another nation that focuses on either wreck location detection or maritime salvage 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) Justification: S1: The Indian Navy and the US Navy recently collaborated for the seventh edition of the IN-USN Salvage and Explosive Ordnance Disposal (EOD) exercise, known as SALVEX. During the ten-day exercise, the teams engaged in knowledge and experience sharing in maritime salvage. They focused on various disciplines, including mine detection and neutralization, wreck location, and salvage. Through joint training, the participants developed lasting bonds and improved their operational capabilities, promoting interoperability and adopting the best practices from each other’s maritime traditions. SALVEX 2023 is regarded as a significant milestone in naval cooperation, highlighting the dedication to excellence in salvage operations and EOD expertise demonstrated by the Indian and US Navies. S2: On 24 Oct 23, the European Union (EU) and India conducted their first joint naval exercise in the Gulf of Guinea. The exercise followed the third meeting of the EU-India Maritime Security Dialogue on 5 Oct 23 in Brussels. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1971391 Q Source: https://www.insightsonindia.com/wp-content/uploads/2023/08/CA-30-JULY-2023-MONTHLY.pdf Trend: Defence engagements in News Approach: Factual/Knowledge based question Incorrect Solution: d) Justification: S1: The Indian Navy and the US Navy recently collaborated for the seventh edition of the IN-USN Salvage and Explosive Ordnance Disposal (EOD) exercise, known as SALVEX. During the ten-day exercise, the teams engaged in knowledge and experience sharing in maritime salvage. They focused on various disciplines, including mine detection and neutralization, wreck location, and salvage. Through joint training, the participants developed lasting bonds and improved their operational capabilities, promoting interoperability and adopting the best practices from each other’s maritime traditions. SALVEX 2023 is regarded as a significant milestone in naval cooperation, highlighting the dedication to excellence in salvage operations and EOD expertise demonstrated by the Indian and US Navies. S2: On 24 Oct 23, the European Union (EU) and India conducted their first joint naval exercise in the Gulf of Guinea. The exercise followed the third meeting of the EU-India Maritime Security Dialogue on 5 Oct 23 in Brussels. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1971391 Q Source: https://www.insightsonindia.com/wp-content/uploads/2023/08/CA-30-JULY-2023-MONTHLY.pdf Trend: Defence engagements in News Approach: Factual/Knowledge based question
#### 22. Question
Consider the following statements:
India currently does not conduct
• a joint military training programme with any European nation
• a joint navy exercise with another nation that focuses on either wreck location detection or maritime salvage
Which of the statements given above is/are correct?
• c) Both 1 and 2
• d) Neither 1 nor 2
Solution: d)
Justification: S1: The Indian Navy and the US Navy recently collaborated for the seventh edition of the IN-USN Salvage and Explosive Ordnance Disposal (EOD) exercise, known as SALVEX.
• During the ten-day exercise, the teams engaged in knowledge and experience sharing in maritime salvage.
They focused on various disciplines, including mine detection and neutralization, wreck location, and salvage. Through joint training, the participants developed lasting bonds and improved their operational capabilities, promoting interoperability and adopting the best practices from each other’s maritime traditions.
• SALVEX 2023 is regarded as a significant milestone in naval cooperation, highlighting the dedication to excellence in salvage operations and EOD expertise demonstrated by the Indian and US Navies.
S2: On 24 Oct 23, the European Union (EU) and India conducted their first joint naval exercise in the Gulf of Guinea. The exercise followed the third meeting of the EU-India Maritime Security Dialogue on 5 Oct 23 in Brussels. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1971391
Q Source: https://www.insightsonindia.com/wp-content/uploads/2023/08/CA-30-JULY-2023-MONTHLY.pdf
Trend: Defence engagements in News
Approach: Factual/Knowledge based question
Solution: d)
Justification: S1: The Indian Navy and the US Navy recently collaborated for the seventh edition of the IN-USN Salvage and Explosive Ordnance Disposal (EOD) exercise, known as SALVEX.
• During the ten-day exercise, the teams engaged in knowledge and experience sharing in maritime salvage.
They focused on various disciplines, including mine detection and neutralization, wreck location, and salvage. Through joint training, the participants developed lasting bonds and improved their operational capabilities, promoting interoperability and adopting the best practices from each other’s maritime traditions.
• SALVEX 2023 is regarded as a significant milestone in naval cooperation, highlighting the dedication to excellence in salvage operations and EOD expertise demonstrated by the Indian and US Navies.
S2: On 24 Oct 23, the European Union (EU) and India conducted their first joint naval exercise in the Gulf of Guinea. The exercise followed the third meeting of the EU-India Maritime Security Dialogue on 5 Oct 23 in Brussels. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1971391
Q Source: https://www.insightsonindia.com/wp-content/uploads/2023/08/CA-30-JULY-2023-MONTHLY.pdf
Trend: Defence engagements in News
Approach: Factual/Knowledge based question
• Question 23 of 30 23. Question 1 points Variable rate reverse repo (VRRR) auctions are used by the Reserve Bank of India to primarily manage the liquidity with: a) insurance agencies b) commercial banks c) post offices d) unlisted companies Correct Solution: b) Learning: Variable rate reverse repo (VRRR) auctions are a tool used by the Reserve Bank of India (RBI) to manage the amount of money in the banking system. The RBI conducts these auctions to absorb excess money from banks when there is too much liquidity. The VRRRs aim to maintain the overnight call money rate close to the target rate of 6.50%. Liquidity is a measure of how quickly an asset can be converted into cash. Q Source: https://www.insightsonindia.com/wp-content/uploads/2023/08/CA-30-JULY-2023-MONTHLY.pdf Trend: RBI and its financial intruments Approach: Factual/Knowledge based question Incorrect Solution: b) Learning: Variable rate reverse repo (VRRR) auctions are a tool used by the Reserve Bank of India (RBI) to manage the amount of money in the banking system. The RBI conducts these auctions to absorb excess money from banks when there is too much liquidity. The VRRRs aim to maintain the overnight call money rate close to the target rate of 6.50%. Liquidity is a measure of how quickly an asset can be converted into cash. Q Source: https://www.insightsonindia.com/wp-content/uploads/2023/08/CA-30-JULY-2023-MONTHLY.pdf Trend: RBI and its financial intruments Approach: Factual/Knowledge based question
#### 23. Question
Variable rate reverse repo (VRRR) auctions are used by the Reserve Bank of India to primarily manage the liquidity with:
• a) insurance agencies
• b) commercial banks
• c) post offices
• d) unlisted companies
Solution: b)
Learning: Variable rate reverse repo (VRRR) auctions are a tool used by the Reserve Bank of India (RBI) to manage the amount of money in the banking system. The RBI conducts these auctions to absorb excess money from banks when there is too much liquidity. The VRRRs aim to maintain the overnight call money rate close to the target rate of 6.50%.
Liquidity is a measure of how quickly an asset can be converted into cash.
Q Source: https://www.insightsonindia.com/wp-content/uploads/2023/08/CA-30-JULY-2023-MONTHLY.pdf
Trend: RBI and its financial intruments
Approach: Factual/Knowledge based question
Solution: b)
Learning: Variable rate reverse repo (VRRR) auctions are a tool used by the Reserve Bank of India (RBI) to manage the amount of money in the banking system. The RBI conducts these auctions to absorb excess money from banks when there is too much liquidity. The VRRRs aim to maintain the overnight call money rate close to the target rate of 6.50%.
Liquidity is a measure of how quickly an asset can be converted into cash.
Q Source: https://www.insightsonindia.com/wp-content/uploads/2023/08/CA-30-JULY-2023-MONTHLY.pdf
Trend: RBI and its financial intruments
Approach: Factual/Knowledge based question
• Question 24 of 30 24. Question 1 points Consider the following statements. Government has included the Goods and Services Network (GSTN) under the Prevention of Money Laundering Act (PMLA) thereby allowing the sharing of information between the GSTN, Enforcement Directorate, and other investigative agencies. The GSTN has introduced geocoding functionality in all states and union territories of India, which allows the conversion of location descriptions into geographic coordinates to ensure accurate address details in GSTN records and simplify verification process for GST. Which of the above is/are correct? a) 1 Only b) 2 Only c) Both 1 and 2 d) Neither 1 nor 2 Correct Solution: c) Justification: The GST Network (GSTN) has introduced geocoding functionality in all states and union territories of India. Geocoding converts location descriptions into geographic coordinates to ensure accurate address details in GSTN records and simplify verification process. GSTN under PMLA- Government has included the GSTN under the Prevention of Money Laundering Act (PMLA). It allows for the sharing of information between the GSTN, Enforcement Directorate, and other investigative agencies. The amendment to the 2006 notification enhances provisions under Section 66 of the PMLA, enabling disclosure of information. This step aims to address rising cases of GST fraud and fake registrations. By bringing GSTN under the purview of money laundering laws, tax authorities gain more power to trace the original beneficiaries in cases of fraud. Q Source: https://www.insightsonindia.com/wp-content/uploads/2023/08/CA-30-JULY-2023-MONTHLY.pdf Trend: Terms in News Approach: Factual/Knowledge based question Incorrect Solution: c) Justification: The GST Network (GSTN) has introduced geocoding functionality in all states and union territories of India. Geocoding converts location descriptions into geographic coordinates to ensure accurate address details in GSTN records and simplify verification process. GSTN under PMLA- Government has included the GSTN under the Prevention of Money Laundering Act (PMLA). It allows for the sharing of information between the GSTN, Enforcement Directorate, and other investigative agencies. The amendment to the 2006 notification enhances provisions under Section 66 of the PMLA, enabling disclosure of information. This step aims to address rising cases of GST fraud and fake registrations. By bringing GSTN under the purview of money laundering laws, tax authorities gain more power to trace the original beneficiaries in cases of fraud. Q Source: https://www.insightsonindia.com/wp-content/uploads/2023/08/CA-30-JULY-2023-MONTHLY.pdf Trend: Terms in News Approach: Factual/Knowledge based question
#### 24. Question
Consider the following statements.
• Government has included the Goods and Services Network (GSTN) under the Prevention of Money Laundering Act (PMLA) thereby allowing the sharing of information between the GSTN, Enforcement Directorate, and other investigative agencies.
• The GSTN has introduced geocoding functionality in all states and union territories of India, which allows the conversion of location descriptions into geographic coordinates to ensure accurate address details in GSTN records and simplify verification process for GST.
Which of the above is/are correct?
• c) Both 1 and 2
• d) Neither 1 nor 2
Solution: c)
Justification: The GST Network (GSTN) has introduced geocoding functionality in all states and union territories of India.
Geocoding converts location descriptions into geographic coordinates to ensure accurate address details in GSTN records and simplify verification process.
GSTN under PMLA- Government has included the GSTN under the Prevention of Money Laundering Act (PMLA).
It allows for the sharing of information between the GSTN, Enforcement Directorate, and other investigative agencies. The amendment to the 2006 notification enhances provisions under Section 66 of the PMLA, enabling disclosure of information.
This step aims to address rising cases of GST fraud and fake registrations. By bringing GSTN under the purview of money laundering laws, tax authorities gain more power to trace the original beneficiaries in cases of fraud.
Q Source: https://www.insightsonindia.com/wp-content/uploads/2023/08/CA-30-JULY-2023-MONTHLY.pdf
Trend: Terms in News
Approach: Factual/Knowledge based question
Solution: c)
Justification: The GST Network (GSTN) has introduced geocoding functionality in all states and union territories of India.
Geocoding converts location descriptions into geographic coordinates to ensure accurate address details in GSTN records and simplify verification process.
GSTN under PMLA- Government has included the GSTN under the Prevention of Money Laundering Act (PMLA).
It allows for the sharing of information between the GSTN, Enforcement Directorate, and other investigative agencies. The amendment to the 2006 notification enhances provisions under Section 66 of the PMLA, enabling disclosure of information.
This step aims to address rising cases of GST fraud and fake registrations. By bringing GSTN under the purview of money laundering laws, tax authorities gain more power to trace the original beneficiaries in cases of fraud.
Q Source: https://www.insightsonindia.com/wp-content/uploads/2023/08/CA-30-JULY-2023-MONTHLY.pdf
Trend: Terms in News
Approach: Factual/Knowledge based question
• Question 25 of 30 25. Question 1 points Nitrogen dioxide (NO2) is a reddish-brown gas associated with formation of smog engine combustion process power plant effluents depletion of ozone layer Which of the above is/are correct? a) 1 and 2 only b) 1, 2, 3 and 4 c) 1, 2 and 3 only d) 3 and 4 only Correct Solution: b) Justification: Nitrogen dioxide (NO2) is a reddish-brown gas with a pun- gent odour. It is a highly reactive air pollutant primarily released from combustion processes, such as vehicle emissions and power plants. NO2 plays a significant role in the formation of smog and contributes to respiratory problems. It also contributes to the formation of acid rain and the depletion of the ozone layer. Q Source: https://www.insightsonindia.com/wp-content/uploads/2023/08/CA-30-JULY-2023-MONTHLY.pdf Trend: Pollutants/Gases Approach: Factual/Knowledge based question Incorrect Solution: b) Justification: Nitrogen dioxide (NO2) is a reddish-brown gas with a pun- gent odour. It is a highly reactive air pollutant primarily released from combustion processes, such as vehicle emissions and power plants. NO2 plays a significant role in the formation of smog and contributes to respiratory problems. It also contributes to the formation of acid rain and the depletion of the ozone layer. Q Source: https://www.insightsonindia.com/wp-content/uploads/2023/08/CA-30-JULY-2023-MONTHLY.pdf Trend: Pollutants/Gases Approach: Factual/Knowledge based question
#### 25. Question
Nitrogen dioxide (NO2) is a reddish-brown gas associated with
• formation of smog
• engine combustion process
• power plant effluents
• depletion of ozone layer
Which of the above is/are correct?
• a) 1 and 2 only
• b) 1, 2, 3 and 4
• c) 1, 2 and 3 only
• d) 3 and 4 only
Solution: b)
Justification: Nitrogen dioxide (NO2) is a reddish-brown gas with a pun- gent odour. It is a highly reactive air pollutant primarily released from combustion processes, such as vehicle emissions and power plants.
NO2 plays a significant role in the formation of smog and contributes to respiratory problems. It also contributes to the formation of acid rain and the depletion of the ozone layer.
Q Source: https://www.insightsonindia.com/wp-content/uploads/2023/08/CA-30-JULY-2023-MONTHLY.pdf
Trend: Pollutants/Gases
Approach: Factual/Knowledge based question
Solution: b)
Justification: Nitrogen dioxide (NO2) is a reddish-brown gas with a pun- gent odour. It is a highly reactive air pollutant primarily released from combustion processes, such as vehicle emissions and power plants.
NO2 plays a significant role in the formation of smog and contributes to respiratory problems. It also contributes to the formation of acid rain and the depletion of the ozone layer.
Q Source: https://www.insightsonindia.com/wp-content/uploads/2023/08/CA-30-JULY-2023-MONTHLY.pdf
Trend: Pollutants/Gases
Approach: Factual/Knowledge based question
• Question 26 of 30 26. Question 1 points PASSAGE 1 Tooth Fillings Tooth decay destroys the surface layer or the enamel of a tooth. This usually occurs in the natural crevices of the occlusal surfaces, or the areas where teeth touch, in the back molars of the teeth. The decay is caused by a build-up of bacterial matter called plaque which breaks down the enamel surface. There are varying degrees of this decay. It may just affect a very superficial part of the enamel layer of the tooth, in which case the affected enamel can be simply ground down to reveal undamaged enamel. If the decay passes through the hard enamel layer and into the softer layer under it called dentine, a cavity filling will need to be done. Should the cavity go as far as reaching the delicate, living pulp of the tooth at the centre of the dentine layer, a more aggressive type of procedure called a root canal filling is required, which involves destroying the pulp and the nerve endings and blood vessels it contains and completely filling the large cavity that is left. Another option is to remove the tooth entirely and replace it with a dental implant, a metal post which is surgically embedded into the jawbone so that a prosthetic replacement tooth can be attached to it. Let’s look at the most common procedure, which is a cavity filling for a tooth where the dentine layer has been compromised. The dentist cleans away the remaining decay in the tooth with a drill after the patient has received a numbing local anesthetic. This removal of decayed enamel and dentine prevents further damage, but the tooth now needs to be repaired with a filling to make it sound again. Cavity filling material was traditionally a silver metal amalgam, but now most dentists have started using composite resin to fill teeth, as it has the advantage of being able to be color-matched to that of the enamel, while amalgam fillings are the colour of metal. In the past, amalgam fillings were the more durable option, but now configurations of composite resin have been developed which are nearly as durable. A composite resin filling is injected into the prepared cavity in a paste form with a pump syringe that allows the dentist to fill the cavity in layers of the resin. Each layer is hardened separately by curing it with ultraviolet light in a process called photo-polymerization. This means the paste can mould exactly to the shape of the cavity. After the final layer, the dentist then shapes the surface to match the natural occlusal surface of the tooth. Amalgam is used to fill the teeth in a similar way. Silver amalgam is a combination of silver, tin and mercury and is mixed in a machine in the surgery before being inserted. Remember, the composite resin arrives already mixed in a pump syringe. With an amalgam filling the dentist needs to remove more of the tooth to create retention grooves. This means carving certain angles and bevels into the teeth so that the filling locks into the structure of the tooth, a bit like a jigsaw. In this way it is less likely to fall out. This is not necessary with composite resin as it uses a chemical bonding process, rather than relying on more mechanical retention. The amalgam is packed tightly into the cavity and then molded and carved to fit the shape of the tooth surface. It takes about 24 hours to harden completely, so the patient needs to avoid chewing in that time. The important thing for both processes is that all the decaying tooth matter is completely removed before the tooth is filled, or the decay may return under the filling and might result in the loss of the tooth. The choice of whether to have composite resin or amalgam fillings can be decided upon the balance of a number of factors. Composite resin fillings are more aesthetically pleasing as they are the same colour as the teeth and their insertion means that less tooth matter needs to be removed, so the teeth are less compromised in terms of strength and durability. Also, composite resin does not contain mercury which is of concern to many patients. Amalgam fillings, however, are less expensive and more durable. (709 words) Which of the following statements is closest to the meaning of the passage? (A) Tooth fillings are required due to lack of dental hygiene. (B) Amalgam tooth fillings are better than composite fillings. (C) People should brush their teeth twice a day. (D) None of the above Correct Answer: D Justification: When looking for an answer closest to the meaning of the passage we are looking for a statement that captures the entirety of the passage’s argument. However the given statements do not provide a complete picture in any of the cases. Hence, D. Incorrect Answer: D Justification: When looking for an answer closest to the meaning of the passage we are looking for a statement that captures the entirety of the passage’s argument. However the given statements do not provide a complete picture in any of the cases. Hence, D.
#### 26. Question
PASSAGE 1
Tooth Fillings
Tooth decay destroys the surface layer or the enamel of a tooth. This usually occurs in the natural crevices of the occlusal surfaces, or the areas where teeth touch, in the back molars of the teeth. The decay is caused by a build-up of bacterial matter called plaque which breaks down the enamel surface. There are varying degrees of this decay. It may just affect a very superficial part of the enamel layer of the tooth, in which case the affected enamel can be simply ground down to reveal undamaged enamel. If the decay passes through the hard enamel layer and into the softer layer under it called dentine, a cavity filling will need to be done. Should the cavity go as far as reaching the delicate, living pulp of the tooth at the centre of the dentine layer, a more aggressive type of procedure called a root canal filling is required, which involves destroying the pulp and the nerve endings and blood vessels it contains and completely filling the large cavity that is left. Another option is to remove the tooth entirely and replace it with a dental implant, a metal post which is surgically embedded into the jawbone so that a prosthetic replacement tooth can be attached to it.
Let’s look at the most common procedure, which is a cavity filling for a tooth where the dentine layer has been compromised. The dentist cleans away the remaining decay in the tooth with a drill after the patient has received a numbing local anesthetic. This removal of decayed enamel and dentine prevents further damage, but the tooth now needs to be repaired with a filling to make it sound again. Cavity filling material was traditionally a silver metal amalgam, but now most dentists have started using composite resin to fill teeth, as it has the advantage of being able to be color-matched to that of the enamel, while amalgam fillings are the colour of metal. In the past, amalgam fillings were the more durable option, but now configurations of composite resin have been developed which are nearly as durable.
A composite resin filling is injected into the prepared cavity in a paste form with a pump syringe that allows the dentist to fill the cavity in layers of the resin. Each layer is hardened separately by curing it with ultraviolet light in a process called photo-polymerization. This means the paste can mould exactly to the shape of the cavity. After the final layer, the dentist then shapes the surface to match the natural occlusal surface of the tooth. Amalgam is used to fill the teeth in a similar way. Silver amalgam is a combination of silver, tin and mercury and is mixed in a machine in the surgery before being inserted. Remember, the composite resin arrives already mixed in a pump syringe. With an amalgam filling the dentist needs to remove more of the tooth to create retention grooves. This means carving certain angles and bevels into the teeth so that the filling locks into the structure of the tooth, a bit like a jigsaw. In this way it is less likely to fall out. This is not necessary with composite resin as it uses a chemical bonding process, rather than relying on more mechanical retention. The amalgam is packed tightly into the cavity and then molded and carved to fit the
shape of the tooth surface. It takes about 24 hours to harden completely, so the patient needs to avoid chewing in that time. The important thing for both processes is that all the decaying tooth matter is completely removed before the tooth is filled, or the decay may return under the filling and might result in the loss of the tooth. The choice of whether to have composite resin or amalgam fillings can be decided upon the balance of a number of factors. Composite resin fillings are more aesthetically pleasing as they are the same colour as the teeth and their insertion means that less tooth matter needs to be removed, so the teeth are less compromised in terms of strength and durability. Also, composite resin does not contain mercury which is of concern to many patients. Amalgam fillings, however, are less expensive and more durable. (709 words)
Which of the following statements is closest to the meaning of the passage?
• (A) Tooth fillings are required due to lack of dental hygiene.
• (B) Amalgam tooth fillings are better than composite fillings.
• (C) People should brush their teeth twice a day.
• (D) None of the above
Answer: D
Justification:
When looking for an answer closest to the meaning of the passage we are looking for a statement that captures the entirety of the passage’s argument. However the given statements do not provide a complete picture in any of the cases. Hence, D.
Answer: D
Justification:
When looking for an answer closest to the meaning of the passage we are looking for a statement that captures the entirety of the passage’s argument. However the given statements do not provide a complete picture in any of the cases. Hence, D.
• Question 27 of 30 27. Question 1 points Tooth decay destroys the surface layer or the enamel of a tooth. This usually occurs in the natural crevices of the occlusal surfaces, or the areas where teeth touch, in the back molars of the teeth. The decay is caused by a build-up of bacterial matter called plaque which breaks down the enamel surface. There are varying degrees of this decay. It may just affect a very superficial part of the enamel layer of the tooth, in which case the affected enamel can be simply ground down to reveal undamaged enamel. If the decay passes through the hard enamel layer and into the softer layer under it called dentine, a cavity filling will need to be done. Should the cavity go as far as reaching the delicate, living pulp of the tooth at the centre of the dentine layer, a more aggressive type of procedure called a root canal filling is required, which involves destroying the pulp and the nerve endings and blood vessels it contains and completely filling the large cavity that is left. Another option is to remove the tooth entirely and replace it with a dental implant, a metal post which is surgically embedded into the jawbone so that a prosthetic replacement tooth can be attached to it. Let’s look at the most common procedure, which is a cavity filling for a tooth where the dentine layer has been compromised. The dentist cleans away the remaining decay in the tooth with a drill after the patient has received a numbing local anesthetic. This removal of decayed enamel and dentine prevents further damage, but the tooth now needs to be repaired with a filling to make it sound again. Cavity filling material was traditionally a silver metal amalgam, but now most dentists have started using composite resin to fill teeth, as it has the advantage of being able to be color-matched to that of the enamel, while amalgam fillings are the colour of metal. In the past, amalgam fillings were the more durable option, but now configurations of composite resin have been developed which are nearly as durable. A composite resin filling is injected into the prepared cavity in a paste form with a pump syringe that allows the dentist to fill the cavity in layers of the resin. Each layer is hardened separately by curing it with ultraviolet light in a process called photo-polymerization. This means the paste can mould exactly to the shape of the cavity. After the final layer, the dentist then shapes the surface to match the natural occlusal surface of the tooth. Amalgam is used to fill the teeth in a similar way. Silver amalgam is a combination of silver, tin and mercury and is mixed in a machine in the surgery before being inserted. Remember, the composite resin arrives already mixed in a pump syringe. With an amalgam filling the dentist needs to remove more of the tooth to create retention grooves. This means carving certain angles and bevels into the teeth so that the filling locks into the structure of the tooth, a bit like a jigsaw. In this way it is less likely to fall out. This is not necessary with composite resin as it uses a chemical bonding process, rather than relying on more mechanical retention. The amalgam is packed tightly into the cavity and then molded and carved to fit the shape of the tooth surface. It takes about 24 hours to harden completely, so the patient needs to avoid chewing in that time. The important thing for both processes is that all the decaying tooth matter is completely removed before the tooth is filled, or the decay may return under the filling and might result in the loss of the tooth. The choice of whether to have composite resin or amalgam fillings can be decided upon the balance of a number of factors. Composite resin fillings are more aesthetically pleasing as they are the same colour as the teeth and their insertion means that less tooth matter needs to be removed, so the teeth are less compromised in terms of strength and durability. Also, composite resin does not contain mercury which is of concern to many patients. Amalgam fillings, however, are less expensive and more durable. (709 words) According to the passage ,why might a patient choose composite resin fillings over amalgam? a) Composite resin is less expensive b) It requires less tooth removal and is aesthetically pleasing c) Amalgam fillings are more durable d) Composite resin contains mercury, which is a concern. Correct Answer : B Justification : The passage mentions : ”Composite resin fillings are more aesthetically pleasing as they are the same colour as the teeth and their insertion means that less tooth matter needs to be removed, so the teeth are less compromised in terms of strength and durability.” Incorrect Answer : B Justification : The passage mentions : ”Composite resin fillings are more aesthetically pleasing as they are the same colour as the teeth and their insertion means that less tooth matter needs to be removed, so the teeth are less compromised in terms of strength and durability.”
#### 27. Question
Tooth decay destroys the surface layer or the enamel of a tooth. This usually occurs in the natural crevices of the occlusal surfaces, or the areas where teeth touch, in the back molars of the teeth. The decay is caused by a build-up of bacterial matter called plaque which breaks down the enamel surface. There are varying degrees of this decay. It may just affect a very superficial part of the enamel layer of the tooth, in which case the affected enamel can be simply ground down to reveal undamaged enamel. If the decay passes through the hard enamel layer and into the softer layer under it called dentine, a cavity filling will need to be done. Should the cavity go as far as reaching the delicate, living pulp of the tooth at the centre of the dentine layer, a more aggressive type of procedure called a root canal filling is required, which involves destroying the pulp and the nerve endings and blood vessels it contains and completely filling the large cavity that is left. Another option is to remove the tooth entirely and replace it with a dental implant, a metal post which is surgically embedded into the jawbone so that a prosthetic replacement tooth can be attached to it.
Let’s look at the most common procedure, which is a cavity filling for a tooth where the dentine layer has been compromised. The dentist cleans away the remaining decay in the tooth with a drill after the patient has received a numbing local anesthetic. This removal of decayed enamel and dentine prevents further damage, but the tooth now needs to be repaired with a filling to make it sound again. Cavity filling material was traditionally a silver metal amalgam, but now most dentists have started using composite resin to fill teeth, as it has the advantage of being able to be color-matched to that of the enamel, while amalgam fillings are the colour of metal. In the past, amalgam fillings were the more durable option, but now configurations of composite resin have been developed which are nearly as durable.
A composite resin filling is injected into the prepared cavity in a paste form with a pump syringe that allows the dentist to fill the cavity in layers of the resin. Each layer is hardened separately by curing it with ultraviolet light in a process called photo-polymerization. This means the paste can mould exactly to the shape of the cavity. After the final layer, the dentist then shapes the surface to match the natural occlusal surface of the tooth. Amalgam is used to fill the teeth in a similar way. Silver amalgam is a combination of silver, tin and mercury and is mixed in a machine in the surgery before being inserted. Remember, the composite resin arrives already mixed in a pump syringe. With an amalgam filling the dentist needs to remove more of the tooth to create retention grooves. This means carving certain angles and bevels into the teeth so that the filling locks into the structure of the tooth, a bit like a jigsaw. In this way it is less likely to fall out. This is not necessary with composite resin as it uses a chemical bonding process, rather than relying on more mechanical retention. The amalgam is packed tightly into the cavity and then molded and carved to fit the
shape of the tooth surface. It takes about 24 hours to harden completely, so the patient needs to avoid chewing in that time. The important thing for both processes is that all the decaying tooth matter is completely removed before the tooth is filled, or the decay may return under the filling and might result in the loss of the tooth. The choice of whether to have composite resin or amalgam fillings can be decided upon the balance of a number of factors. Composite resin fillings are more aesthetically pleasing as they are the same colour as the teeth and their insertion means that less tooth matter needs to be removed, so the teeth are less compromised in terms of strength and durability. Also, composite resin does not contain mercury which is of concern to many patients. Amalgam fillings, however, are less expensive and more durable. (709 words)
According to the passage ,why might a patient choose composite resin fillings over amalgam?
• a) Composite resin is less expensive
• b) It requires less tooth removal and is aesthetically pleasing
• c) Amalgam fillings are more durable
• d) Composite resin contains mercury, which is a concern.
Answer : B
Justification :
The passage mentions : ”Composite resin fillings are more aesthetically pleasing as they are the same colour as the teeth and their insertion means that less tooth matter needs to be removed, so the teeth are less compromised in terms of strength and durability.”
Answer : B
Justification :
The passage mentions : ”Composite resin fillings are more aesthetically pleasing as they are the same colour as the teeth and their insertion means that less tooth matter needs to be removed, so the teeth are less compromised in terms of strength and durability.”
• Question 28 of 30 28. Question 1 points A boat covers 24 km upstream and 36 km downstream in 6 hours while it covers 36 km upstream and 24 km downstream in 6(1/2) hours. The velocity of the current is: A) 1 km/hr B) 1.5 km/hr C) 2 km/hr D) 2.5 km/hr Correct Correct Option: C) 2 km/hr Let the upstream = x kmph and rate downstream = y kmph. Then, 24/x + 36/y = 6 ….(i) and 36/x + 24/y = 13/2 …..(ii) Adding (i) and (ii) we get: = 60(1/x + 1/y) = 25/2 or 1/x + 1/y = 5/24 ….(iii) Subtracting (i) and (ii), we get: = 12(1/x– 1/y) = 1/2 or 1/x– 1/y = 1/24 …(iv) Adding (iii) and (iv), we get 2/x = 6/24 or x = 8. So, 1/8 + 1/y = 5/24⇔ 1/y = (5/24 – 1/8 ) = 1/12 ⇔ y = 12. ∴ Speed upstream = 8 kmph, Speed downstream = 12 kmph. Hence, rate of current 1/2(12 – 8) kmph = 2 kmph. Hence, option C is correct. Incorrect Correct Option: C) 2 km/hr Let the upstream = x kmph and rate downstream = y kmph. Then, 24/x + 36/y = 6 ….(i) and 36/x + 24/y = 13/2 …..(ii) Adding (i) and (ii) we get: = 60(1/x + 1/y) = 25/2 or 1/x + 1/y = 5/24 ….(iii) Subtracting (i) and (ii), we get: = 12(1/x– 1/y) = 1/2 or 1/x– 1/y = 1/24 …(iv) Adding (iii) and (iv), we get 2/x = 6/24 or x = 8. So, 1/8 + 1/y = 5/24⇔ 1/y = (5/24 – 1/8 ) = 1/12 ⇔ y = 12. ∴ Speed upstream = 8 kmph, Speed downstream = 12 kmph. Hence, rate of current 1/2(12 – 8) kmph = 2 kmph. Hence, option C is correct.
#### 28. Question
A boat covers 24 km upstream and 36 km downstream in 6 hours while it covers 36 km upstream and 24 km downstream in 6(1/2) hours. The velocity of the current is:
• A) 1 km/hr
• B) 1.5 km/hr
• C) 2 km/hr
• D) 2.5 km/hr
Correct Option: C) 2 km/hr
Let the upstream = x kmph and rate downstream = y kmph.
Then, 24/x + 36/y = 6 ….(i)
and 36/x + 24/y = 13/2 …..(ii)
Adding (i) and (ii) we get:
= 60(1/x + 1/y) = 25/2 or 1/x + 1/y = 5/24 ….(iii)
Subtracting (i) and (ii), we get:
= 12(1/x– 1/y) = 1/2 or 1/x– 1/y = 1/24 …(iv)
Adding (iii) and (iv), we get 2/x = 6/24 or x = 8.
So, 1/8 + 1/y = 5/24⇔ 1/y = (5/24 – 1/8 ) = 1/12
∴ Speed upstream = 8 kmph, Speed downstream = 12 kmph.
Hence, rate of current 1/2(12 – 8) kmph = 2 kmph.
Hence, option C is correct.
Correct Option: C) 2 km/hr
Let the upstream = x kmph and rate downstream = y kmph.
Then, 24/x + 36/y = 6 ….(i)
and 36/x + 24/y = 13/2 …..(ii)
Adding (i) and (ii) we get:
= 60(1/x + 1/y) = 25/2 or 1/x + 1/y = 5/24 ….(iii)
Subtracting (i) and (ii), we get:
= 12(1/x– 1/y) = 1/2 or 1/x– 1/y = 1/24 …(iv)
Adding (iii) and (iv), we get 2/x = 6/24 or x = 8.
So, 1/8 + 1/y = 5/24⇔ 1/y = (5/24 – 1/8 ) = 1/12
∴ Speed upstream = 8 kmph, Speed downstream = 12 kmph.
Hence, rate of current 1/2(12 – 8) kmph = 2 kmph.
Hence, option C is correct.
• Question 29 of 30 29. Question 1 points Two ships are approaching a port along straight routes at constant speeds. Initially, the two ships and the port formed an equilateral triangle with sides of length 24 km. When the slower ship travelled 8 km, the triangle formed by the new positions of the two ships and the port became right-angled. When the faster ship reaches the port, the distance, in km, between the other ship and the port will be? A. 4 B. 12 C. 8 D. 6 Correct Answer: B) 12 Let S be the slower ship and F be the faster ship. It is given that when S travelled 8 km, the positions of ships with the port is forming a right triangle. Since one of the angles is 60(since one vertex is still part of the equilateral triangle), the other two vertexes will have angles of 30 and 90. The distance between O and S = 24 – 8 = 16 In triangle OFS, Cos 60 = OF/OS Thus, OF = 8. Thus in the time, S covered 8 km, F will cover 24 – 8 = 16 km. Thus, the ratio of their speeds is 2:1, Thus, when F covers 24 km, S will cover 12 km. The correct option is B. Incorrect Answer: B) 12 Let S be the slower ship and F be the faster ship. It is given that when S travelled 8 km, the positions of ships with the port is forming a right triangle. Since one of the angles is 60(since one vertex is still part of the equilateral triangle), the other two vertexes will have angles of 30 and 90. The distance between O and S = 24 – 8 = 16 In triangle OFS, Cos 60 = OF/OS Thus, OF = 8. Thus in the time, S covered 8 km, F will cover 24 – 8 = 16 km. Thus, the ratio of their speeds is 2:1, Thus, when F covers 24 km, S will cover 12 km. The correct option is B.
#### 29. Question
Two ships are approaching a port along straight routes at constant speeds. Initially, the two ships and the port formed an equilateral triangle with sides of length 24 km. When the slower ship travelled 8 km, the triangle formed by the new positions of the two ships and the port became right-angled. When the faster ship reaches the port, the distance, in km, between the other ship and the port will be?
Answer: B) 12
Let S be the slower ship and F be the faster ship.
It is given that when S travelled 8 km, the positions of ships with the port is forming a right triangle.
Since one of the angles is 60(since one vertex is still part of the equilateral triangle),
the other two vertexes will have angles of 30 and 90.
The distance between O and S = 24 – 8 = 16
In triangle OFS, Cos 60 = OF/OS
Thus, OF = 8.
Thus in the time, S covered 8 km, F will cover 24 – 8 = 16 km.
Thus, the ratio of their speeds is 2:1,
Thus, when F covers 24 km, S will cover 12 km.
The correct option is B.
Answer: B) 12
Let S be the slower ship and F be the faster ship.
It is given that when S travelled 8 km, the positions of ships with the port is forming a right triangle.
Since one of the angles is 60(since one vertex is still part of the equilateral triangle),
the other two vertexes will have angles of 30 and 90.
The distance between O and S = 24 – 8 = 16
In triangle OFS, Cos 60 = OF/OS
Thus, OF = 8.
Thus in the time, S covered 8 km, F will cover 24 – 8 = 16 km.
Thus, the ratio of their speeds is 2:1,
Thus, when F covers 24 km, S will cover 12 km.
The correct option is B.
• Question 30 of 30 30. Question 1 points Two stations B and M are 465 km distant. A train starts from B towards M at 10 AM with a speed of 65 km/hr. Another train leaves from M towards B at 11 AM at a speed of 35 km/hr. Find the time when both trains meet. a) 3pm b) 3am c) 4pm d) 4am Correct Solution: A) 3pm The train leaving from B leaves an hour early than the train that leaves from M. => Distance covered by train leaving from B = 65 km / hr x 1 hr = 65 km Distance left = 465 – 65 = 400 km Now, the train from M also gets moving and both are moving towards each other. Applying the formula for relative speed, Relative speed = 65 + 35 = 100 km / hr => Time required by the trains to meet = 400 km / 100 km / hr = 4 hours Thus, the trains meet at 4 hours after 11 AM, i.e., 3 PM. Incorrect Solution: A) 3pm The train leaving from B leaves an hour early than the train that leaves from M. => Distance covered by train leaving from B = 65 km / hr x 1 hr = 65 km Distance left = 465 – 65 = 400 km Now, the train from M also gets moving and both are moving towards each other. Applying the formula for relative speed, Relative speed = 65 + 35 = 100 km / hr => Time required by the trains to meet = 400 km / 100 km / hr = 4 hours Thus, the trains meet at 4 hours after 11 AM, i.e., 3 PM.
#### 30. Question
Two stations B and M are 465 km distant. A train starts from B towards M at 10 AM with a speed of 65 km/hr. Another train leaves from M towards B at 11 AM at a speed of 35 km/hr. Find the time when both trains meet.
Solution: A) 3pm
The train leaving from B leaves an hour early than the train that leaves from M.
=> Distance covered by train leaving from B = 65 km / hr x 1 hr = 65 km
Distance left = 465 – 65 = 400 km
Now, the train from M also gets moving and both are moving towards each other.
Applying the formula for relative speed,
Relative speed = 65 + 35 = 100 km / hr
=> Time required by the trains to meet = 400 km / 100 km / hr = 4 hours
Thus, the trains meet at 4 hours after 11 AM, i.e., 3 PM.
Solution: A) 3pm
The train leaving from B leaves an hour early than the train that leaves from M.
=> Distance covered by train leaving from B = 65 km / hr x 1 hr = 65 km
Distance left = 465 – 65 = 400 km
Now, the train from M also gets moving and both are moving towards each other.
Applying the formula for relative speed,
Relative speed = 65 + 35 = 100 km / hr
=> Time required by the trains to meet = 400 km / 100 km / hr = 4 hours
Thus, the trains meet at 4 hours after 11 AM, i.e., 3 PM.
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