UPSC Editorials Quiz : 5 March 2025

Introducing QUED – Questions from Editorials (UPSC Editorials Quiz) , an innovative initiative from InsightsIAS. Considering the significant number of questions in previous UPSC Prelims from editorials, practicing MCQs from this perspective can provide an extra edge. While we cover important editorials separately in our Editorial Section and SECURE Initiative, adding QUED (UPSC Editorials Quiz) to your daily MCQ practice alongside Static Quiz, Current Affairs Quiz, and InstaDART can be crucial for better performance. We recommend utilizing this initiative to enhance your preparation, with 5 MCQs posted daily at 11 am from Monday to Saturday on our website under the QUIZ menu.

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• Question 1 of 5 1. Question Consider the following statements regarding the NER (North East Region) Programme: It facilitates the conceptualization and monitoring of biotechnology-based R&D programs. It aims to uplift rural incomes through bio-resource entrepreneurship. It discourages multidisciplinary collaborations in biotechnology. It supports the establishment of shared research platforms in North East India. Which of the above statements are correct? (a) 2, 3, and 4 (b) 1, 2, and 4 (c) 1, 2 and 3 (d) All of the above Correct Solution: B The NER (North East Region) Programme is designed to foster biotechnology research and innovation in the North East region of India. It plays a crucial role in conceptualizing and monitoring biotechnology-based R&D programs to address regional challenges (Statement 1 is correct). One of its primary objectives is to uplift rural incomes by promoting bio-resource entrepreneurship, ensuring that local communities benefit from biotechnological advancements (Statement 2 is correct). The program also actively supports the establishment of shared research platforms, such as biotechnology hubs and incubation centers, to strengthen scientific infrastructure in the region (Statement 4 is correct). However, Statement 3 is incorrect, as the NER Programme encourages multidisciplinary collaborations, fostering partnerships between researchers, institutions, and industries to advance biotechnology. It does not discourage such initiatives. Incorrect Solution: B The NER (North East Region) Programme is designed to foster biotechnology research and innovation in the North East region of India. It plays a crucial role in conceptualizing and monitoring biotechnology-based R&D programs to address regional challenges (Statement 1 is correct). One of its primary objectives is to uplift rural incomes by promoting bio-resource entrepreneurship, ensuring that local communities benefit from biotechnological advancements (Statement 2 is correct). The program also actively supports the establishment of shared research platforms, such as biotechnology hubs and incubation centers, to strengthen scientific infrastructure in the region (Statement 4 is correct). However, Statement 3 is incorrect, as the NER Programme encourages multidisciplinary collaborations, fostering partnerships between researchers, institutions, and industries to advance biotechnology. It does not discourage such initiatives.

#### 1. Question

Consider the following statements regarding the NER (North East Region) Programme:

• It facilitates the conceptualization and monitoring of biotechnology-based R&D programs.

• It aims to uplift rural incomes through bio-resource entrepreneurship.

• It discourages multidisciplinary collaborations in biotechnology.

• It supports the establishment of shared research platforms in North East India.

Which of the above statements are correct?

• (a) 2, 3, and 4

• (b) 1, 2, and 4

• (c) 1, 2 and 3

• (d) All of the above

Solution: B

• The NER (North East Region) Programme is designed to foster biotechnology research and innovation in the North East region of India. It plays a crucial role in conceptualizing and monitoring biotechnology-based R&D programs to address regional challenges (Statement 1 is correct).

• One of its primary objectives is to uplift rural incomes by promoting bio-resource entrepreneurship, ensuring that local communities benefit from biotechnological advancements (Statement 2 is correct).

• The program also actively supports the establishment of shared research platforms, such as biotechnology hubs and incubation centers, to strengthen scientific infrastructure in the region (Statement 4 is correct).

• However, Statement 3 is incorrect, as the NER Programme encourages multidisciplinary collaborations, fostering partnerships between researchers, institutions, and industries to advance biotechnology. It does not discourage such initiatives.

Solution: B

• Question 2 of 5 2. Question Consider the following statements regarding the effects of Rupee-Dollar Swap Auctions on liquidity: Swap auctions completely eliminate the need for other monetary policy tools like repo rate changes. They help inject rupee liquidity into the banking system when there is a shortfall. Swap auctions can only be conducted for short-term liquidity management. How many of the above statements is/are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: A Rupee-Dollar Swap Auctions are a tool used by the Reserve Bank of India (RBI) to manage liquidity in the banking system by exchanging rupees for dollars or vice versa. Statement 1 is incorrect because swap auctions do not eliminate the need for other monetary policy tools like repo rate adjustments or open market operations (OMOs). They are used as a complementary measure to influence liquidity conditions rather than replacing existing tools. Statement 2 is correct as swap auctions can inject rupee liquidity when banks sell USD to the RBI in exchange for rupees. This increases the availability of rupees in the financial system, addressing liquidity shortages. Statement 3 is incorrect because swap auctions are not limited to short-term liquidity management. They can be structured for both short-term and long-term purposes, depending on the central bank’s objectives. Incorrect Solution: A Rupee-Dollar Swap Auctions are a tool used by the Reserve Bank of India (RBI) to manage liquidity in the banking system by exchanging rupees for dollars or vice versa. Statement 1 is incorrect because swap auctions do not eliminate the need for other monetary policy tools like repo rate adjustments or open market operations (OMOs). They are used as a complementary measure to influence liquidity conditions rather than replacing existing tools. Statement 2 is correct as swap auctions can inject rupee liquidity when banks sell USD to the RBI in exchange for rupees. This increases the availability of rupees in the financial system, addressing liquidity shortages. Statement 3 is incorrect because swap auctions are not limited to short-term liquidity management. They can be structured for both short-term and long-term purposes, depending on the central bank’s objectives.

#### 2. Question

Consider the following statements regarding the effects of Rupee-Dollar Swap Auctions on liquidity:

• Swap auctions completely eliminate the need for other monetary policy tools like repo rate changes.

• They help inject rupee liquidity into the banking system when there is a shortfall.

• Swap auctions can only be conducted for short-term liquidity management.

How many of the above statements is/are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: A

Rupee-Dollar Swap Auctions are a tool used by the Reserve Bank of India (RBI) to manage liquidity in the banking system by exchanging rupees for dollars or vice versa.

• Statement 1 is incorrect because swap auctions do not eliminate the need for other monetary policy tools like repo rate adjustments or open market operations (OMOs). They are used as a complementary measure to influence liquidity conditions rather than replacing existing tools.

• Statement 2 is correct as swap auctions can inject rupee liquidity when banks sell USD to the RBI in exchange for rupees. This increases the availability of rupees in the financial system, addressing liquidity shortages.

• Statement 3 is incorrect because swap auctions are not limited to short-term liquidity management. They can be structured for both short-term and long-term purposes, depending on the central bank’s objectives.

Solution: A

Rupee-Dollar Swap Auctions are a tool used by the Reserve Bank of India (RBI) to manage liquidity in the banking system by exchanging rupees for dollars or vice versa.

• Question 3 of 5 3. Question Match the following types of socio-economic expenditure with their key characteristics: Type of Expenditure Key Characteristic A. Capital Expenditure 1. Day-to-day operational costs B. Revenue Expenditure 2. Investment in infrastructure C. Development Expenditure 3. Costs incurred due to borrowings D. Interest Payments 4. Spending on health and education Select the correct match: a) A-1, B-2, C-3, D-4 b) A-2, B-1, C-3, D-4 c) A-1, B-2, C-4, D-3 d) A-2, B-1, C-4, D-3 Correct Solution: D Socio-economic expenditure in an economy is classified into different types based on its purpose and impact. Capital Expenditure (A-2) refers to spending on long-term assets like infrastructure, machinery, and buildings that enhance economic productivity over time. It is not consumed immediately but generates future benefits. Revenue Expenditure (B-1) includes day-to-day operational costs such as salaries, subsidies, and administrative expenses, which do not create long-term assets but are essential for maintaining government functions. Development Expenditure (C-4) is directed towards sectors like health, education, and research & development, aiming to improve human capital and overall socio-economic conditions. Interest Payments (D-3) are the costs incurred by the government on borrowed funds, which include repayments on loans and debts. Incorrect Solution: D Socio-economic expenditure in an economy is classified into different types based on its purpose and impact. Capital Expenditure (A-2) refers to spending on long-term assets like infrastructure, machinery, and buildings that enhance economic productivity over time. It is not consumed immediately but generates future benefits. Revenue Expenditure (B-1) includes day-to-day operational costs such as salaries, subsidies, and administrative expenses, which do not create long-term assets but are essential for maintaining government functions. Development Expenditure (C-4) is directed towards sectors like health, education, and research & development, aiming to improve human capital and overall socio-economic conditions. Interest Payments (D-3) are the costs incurred by the government on borrowed funds, which include repayments on loans and debts.

#### 3. Question

Match the following types of socio-economic expenditure with their key characteristics:

Type of Expenditure | Key Characteristic

A. Capital Expenditure | 1. Day-to-day operational costs

B. Revenue Expenditure | 2. Investment in infrastructure

C. Development Expenditure | 3. Costs incurred due to borrowings

D. Interest Payments | 4. Spending on health and education

Select the correct match:

• a) A-1, B-2, C-3, D-4

• b) A-2, B-1, C-3, D-4

• c) A-1, B-2, C-4, D-3

• d) A-2, B-1, C-4, D-3

Solution: D

• Socio-economic expenditure in an economy is classified into different types based on its purpose and impact.

• Capital Expenditure (A-2) refers to spending on long-term assets like infrastructure, machinery, and buildings that enhance economic productivity over time. It is not consumed immediately but generates future benefits.

• Revenue Expenditure (B-1) includes day-to-day operational costs such as salaries, subsidies, and administrative expenses, which do not create long-term assets but are essential for maintaining government functions.

• Development Expenditure (C-4) is directed towards sectors like health, education, and research & development, aiming to improve human capital and overall socio-economic conditions.

• Interest Payments (D-3) are the costs incurred by the government on borrowed funds, which include repayments on loans and debts.

Solution: D

• Socio-economic expenditure in an economy is classified into different types based on its purpose and impact.

• Development Expenditure (C-4) is directed towards sectors like health, education, and research & development, aiming to improve human capital and overall socio-economic conditions.

• Interest Payments (D-3) are the costs incurred by the government on borrowed funds, which include repayments on loans and debts.

• Question 4 of 5 4. Question Consider the following statements regarding the release and methodology of Purchasing Managers’ Index (PMI) in India: PMI in India is compiled and released by the Reserve Bank of India (RBI). The Index of Industrial Production (IIP) and PMI are calculated using the same methodology. PMI includes only large enterprises and does not consider small and medium businesses. How many of the above statements is/are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: D The Purchasing Managers’ Index (PMI) is an important economic indicator used to assess business activity in the manufacturing and services sectors. It is based on surveys of purchasing managers and provides insights into economic trends such as expansion or contraction in business activity. Statement 1 is incorrect because PMI in India is compiled and released by S&P Global (earlier IHS Markit), not the Reserve Bank of India (RBI). It is derived from surveys of private-sector firms. Statement 2 is incorrect as PMI and the Index of Industrial Production (IIP) use different methodologies. IIP is based on actual production data, reflecting output volumes, whereas PMI is based on surveys of business sentiment and purchasing activity, making it a leading indicator. Statement 3 is incorrect because PMI includes both large enterprises and small and medium enterprises (SMEs), capturing a broader picture of economic activity. Incorrect Solution: D The Purchasing Managers’ Index (PMI) is an important economic indicator used to assess business activity in the manufacturing and services sectors. It is based on surveys of purchasing managers and provides insights into economic trends such as expansion or contraction in business activity. Statement 1 is incorrect because PMI in India is compiled and released by S&P Global (earlier IHS Markit), not the Reserve Bank of India (RBI). It is derived from surveys of private-sector firms. Statement 2 is incorrect as PMI and the Index of Industrial Production (IIP) use different methodologies. IIP is based on actual production data, reflecting output volumes, whereas PMI is based on surveys of business sentiment and purchasing activity, making it a leading indicator. Statement 3 is incorrect because PMI includes both large enterprises and small and medium enterprises (SMEs), capturing a broader picture of economic activity.

#### 4. Question

Consider the following statements regarding the release and methodology of Purchasing Managers’ Index (PMI) in India:

• PMI in India is compiled and released by the Reserve Bank of India (RBI).

• The Index of Industrial Production (IIP) and PMI are calculated using the same methodology.

• PMI includes only large enterprises and does not consider small and medium businesses.

How many of the above statements is/are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: D

The Purchasing Managers’ Index (PMI) is an important economic indicator used to assess business activity in the manufacturing and services sectors. It is based on surveys of purchasing managers and provides insights into economic trends such as expansion or contraction in business activity.

• Statement 1 is incorrect because PMI in India is compiled and released by S&P Global (earlier IHS Markit), not the Reserve Bank of India (RBI). It is derived from surveys of private-sector firms.

• Statement 2 is incorrect as PMI and the Index of Industrial Production (IIP) use different methodologies. IIP is based on actual production data, reflecting output volumes, whereas PMI is based on surveys of business sentiment and purchasing activity, making it a leading indicator.

• Statement 3 is incorrect because PMI includes both large enterprises and small and medium enterprises (SMEs), capturing a broader picture of economic activity.

Solution: D

• Statement 3 is incorrect because PMI includes both large enterprises and small and medium enterprises (SMEs), capturing a broader picture of economic activity.

• Question 5 of 5 5. Question Consider the following statements regarding the powers and functions of Lokpal: Lokpal has the power to order prosecution directly without reference to any other authority. Lokpal can attach and confiscate assets acquired through corrupt practices. The Central Bureau of Investigation (CBI) functions under the direct supervision of Lokpal. Lokpal has the power to recommend disciplinary action against public officials. How many of the above statements is/are correct? (a) Only one (b) Only two (c) Only three (d) All four Correct Solution: C The Lokpal is an anti-corruption ombudsman established to investigate corruption cases against public officials in India. It has various powers and functions to ensure accountability in governance. Statement 1 is correct because Lokpal can order prosecution of public servants based on its investigations. It does not need prior approval from any other authority to proceed with prosecution. Statement 2 is correct as Lokpal has the authority to attach and confiscate assets that have been acquired through corrupt practices, ensuring that illicit wealth is recovered. Statement 3 is incorrect because the Central Bureau of Investigation (CBI) does not function directly under Lokpal. However, Lokpal can direct the CBI to investigate corruption cases and monitor their progress. Statement 4 is correct since Lokpal has the power to recommend disciplinary action against government officials found guilty of corruption. Incorrect Solution: C The Lokpal is an anti-corruption ombudsman established to investigate corruption cases against public officials in India. It has various powers and functions to ensure accountability in governance. Statement 1 is correct because Lokpal can order prosecution of public servants based on its investigations. It does not need prior approval from any other authority to proceed with prosecution. Statement 2 is correct as Lokpal has the authority to attach and confiscate assets that have been acquired through corrupt practices, ensuring that illicit wealth is recovered. Statement 3 is incorrect because the Central Bureau of Investigation (CBI) does not function directly under Lokpal. However, Lokpal can direct the CBI to investigate corruption cases and monitor their progress. Statement 4 is correct since Lokpal has the power to recommend disciplinary action against government officials found guilty of corruption.

#### 5. Question

Consider the following statements regarding the powers and functions of Lokpal:

• Lokpal has the power to order prosecution directly without reference to any other authority.

• Lokpal can attach and confiscate assets acquired through corrupt practices.

• The Central Bureau of Investigation (CBI) functions under the direct supervision of Lokpal.

• Lokpal has the power to recommend disciplinary action against public officials.

How many of the above statements is/are correct?

• (a) Only one

• (b) Only two

• (c) Only three

• (d) All four

Solution: C

The Lokpal is an anti-corruption ombudsman established to investigate corruption cases against public officials in India. It has various powers and functions to ensure accountability in governance.

• Statement 1 is correct because Lokpal can order prosecution of public servants based on its investigations. It does not need prior approval from any other authority to proceed with prosecution.

• Statement 2 is correct as Lokpal has the authority to attach and confiscate assets that have been acquired through corrupt practices, ensuring that illicit wealth is recovered.

• Statement 3 is incorrect because the Central Bureau of Investigation (CBI) does not function directly under Lokpal. However, Lokpal can direct the CBI to investigate corruption cases and monitor their progress.

• Statement 4 is correct since Lokpal has the power to recommend disciplinary action against government officials found guilty of corruption.

Solution: C

• Statement 2 is correct as Lokpal has the authority to attach and confiscate assets that have been acquired through corrupt practices, ensuring that illicit wealth is recovered.

• Statement 4 is correct since Lokpal has the power to recommend disciplinary action against government officials found guilty of corruption.

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