21. The money multiplier in an economy increases with which one of the following ?
a. Increase in the Cash Reserve Ratio in the banks.
b. Increase in the Statutory Liquidity ratio in the banks
c. Increase in the banking habit of the people
d. Increase in the population of the country
Ans. C
Solution Hints & Reference Reads
The money multiplier is the amount of money created by commercial banks for a given fixed amount of base money and reserve ratio. ... An increase in the banking habit of the population will increase the lending, thereby will lead to more deposits in the banking system, hence increasing the money multiplier.
22. With reference to Indian economy, demand pull inflation can be caused/ increased by which of the following?
1. Expansionary policies
2. Fiscal stimulus
3. Inflation-indexing wages
4. Higher purchasing power
5. Rising interest rates
Select the correct answer using the code given below
a. 1, 2 and 4 only
b. 3, 4 and 5 only
c. 1, 2, 3 and 5 only
d. 1, 2, 3, 4 and 5
Ans. A
Solution Hints & Reference Reads
https://www.investopedia.com/terms/d/demandpullinflation.asp
23. With reference to India, consider the following statements:
1. Retail investors through demat account can invest in Treasury Bills and Government of India Debt Bonds in primary market
2. The ‘’Negotiated Dealing System-Ordering Matching’’ is a government securities trading platform of the Reserve Bank of India.
3. The ‘’Central Depository Services Ltd’’ is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.
Which of the statements given above is/are correct?
a. 1 only
b. 1 and 2
c. 3 only
d. 2 and 3
Ans. B
Solution Hints & Reference Reads
24. With reference to ‘’Water Credit”, consider the following statements:
1. It puts microfinance tools to work in the water and sanitation sector.
2. It is a global initiative launched under the aegis of the World Health Organization and the World Bank.
3. It aims to enable the poor people to meet their water needs without depending on subsidies.
Ans. C
25. In India, the central bank's function as the 'lender of last resort' usually refers to which of the following?
1. Lending to trade and industry bodies when they fail to borrow from other sources.
2. Providing liquidity to the banks having a temporary crisis.
3. Lending to governments to finance budgetary deficits
Select the correct answer using the code given below
a. 1 and 2
b. 2 only
c. 2 and 3
d. 3 only
Ans. B
Solution Hints & Reference Reads
As a Banker to Banks, the Reserve Bank also acts as the ‘lender of the last resort’. It can come to the rescue of a bank that is solvent but faces temporary liquidity problems by supplying it with much needed liquidity when no one else is willing to extend credit to that bank. The Reserve Bank extends this facility to protect the interest of the depositors of the bank and to prevent possible failure of the bank, which in turn may also affect other banks and institutions and can have an adverse impact on financial stability and thus on the economy. https://www.rbi.org.in/scripts/FS_Overview.aspx?fn=2758#:~:text=Lender%20of%20Last%20Resort,extend%20credit%20to%20that%20bank.
26. ‘R2 Code of Practices' constitutes a tool available for promoting the adoption of
a. environmentally responsible practices in electronics recycling industry
b. ecological management of 'Wetlands of International importance' under the Ramsar convention.
c. sustainable practices in the cultivation of agricultural crops in degraded lands.
d. 'Environmental Impact Assessment' in the exploitation of natural resources.
Ans. A
27. Why is there a concern about copper smelting plants?
1. They may release lethal quantities of carbon monoxide into environment.
2. The copper slag can cause the leaching of some heavy metals into environment.
3. They may release sulphur dioxide as a pollutant.
Select the correct answer using the code given below.
a. 1 and 2 only
b. 2 and 3 only
c. 1 and 3 only
d. 1, 2 and 3
Ans. D
Solution Hints & Reference Reads
The smelting process also releases radon, iron, manganese, lead, arsenic, nitrates and fluorides, which reach the water sources and the soil through the industrial slag.
CO is not released in ""lethal"" quantities. This is a trap choice. " https://www.downtoearth.org.in/news/governance/sterlite-typifies-all-that-s-wrong-with-environmental-governance-in-india-60877
28. With reference to furnace oil, consider the following statements:
1. It is a product of oil refineries.
2. Some industries use it to generate power.
3. Its use causes sulphur emissions into environment.
Which of the statements given above are correct?
a. 1 and 2 only
b. 2 and 3 only
c. 1 and 3 only
d. 1, 2 and 3
Ans. D
Solution Hints & Reference Reads
Fuel oil, also called furnace oil, fuel consisting mainly of residues from crude-oil distillation. It is used primarily for steam boilers in power plants, aboard ships, and in industrial plants. Commercial fuel oils usually are blended with other petroleum fractions to produce the desired viscosity and flash point.
https://www.downtoearth.org.in/news/air/sc-bans-dirty-pet-coke-furnace-oil-in-haryana-rajasthan-up-cse-lauds-verdict-58921#:~:text=In%20a%20landmark%20ruling%20today,Pradesh%20from%20November%201%2C%202017.&text=In%20addition%2C%20the%20MOEFCC%20will,200%2C000%20to%20the%20Supreme%20Court.
29. What is Blue Carbon?
a. Carbon captured by Oceans and coastal ecosystems.
b. Carbon sequestered in forest biomass and agricultural soils.
c. Carbon contained in petroleum and natural gas
d. Carbon present in atmosphere
Ans. A
Solution Hints & Reference Reads
The coastal ecosystems of mangroves, tidal marshes and seagrass meadows contain large stores of carbon deposited by vegetation and various natural processes over centuries. These ecosystems sequester and store more carbon – often referred to as ‘blue carbon’ – per unit area than terrestrial forests. The ability of these vegetated ecosystems to remove carbon dioxide (CO2) from the atmosphere makes them significant net carbon sinks, and they are now being recognised for their role in mitigating climate change.
However, if the ecosystems are degraded or damaged directly or indirectly by human activities, their carbon sink capacity is lost or adversely affected, and the carbon stored in the soil is released, resulting in CO2 emissions that contribute to climate change." https://www.iucn.org/resources/issues-briefs/blue-carbon
30. In the nature, which of the following is/are most likely to be found surviving on a surface without soil?
1. Fern
2. Lichen
3. Moss
4. Mushroom
Select the correct answer using the code given below.
a. 1 and 4 only
b. 2 only
c. 2 and 3
d. 1, 3 and 4
Ans. C
Solution Hints & Reference Reads
Lichens occur from sea level to high alpine elevations, in many environmental conditions, and can grow on almost any surface. They are abundant growing on bark, leaves, mosses, or other lichens and hanging from branches "living on thin air" (epiphytes) in rain forests and in temperate woodland. They grow on rock, walls, gravestones, roofs, exposed soil surfaces, rubber, bones, and in the soil as part of biological soil crusts. Different kinds of lichens have adapted to survive in some of the most extreme environments on Earth: arctic tundra, hot dry deserts, rocky coasts, and toxic slag heaps. They can even live inside solid rock, growing between the grains. wiki
31. Consider the following statements :
1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in public interest.
3. The Government of the RBI draws his power from the RBI Act.
Which of the above statements are correct?
a. 1 and 2 only
b. 2 and 3 only
c. 1 and 3 only
d. 1, 2 and 3
Ans. C
Solution Hints & Reference Reads
https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/RBIAM_230609.pdf
32. With reference to casual workers employed in India, consider the following statements:
1. All casual workers are entitled for Employees Provident Fund coverage.
2. All casual workers are entitled for regular working hours and overtime payment.
3. The Government can by a notification specify that an establishment or industry shall pay wages only through its bank account.
Which of the above statements are correct?
a. 1 and 2 only
b. 2 and 3 only
c. 1 and 3 only
d. 1, 2 and 3
Ans. B
Solution Hints & Reference Reads
https://dopt.gov.in/sites/default/files/21-Appendix.pdf
33. Which among the following steps is most likely to be taken at the time of an economic recession?
a. Cut in tax rates accompanied by increase in interest rate.
b. Increase in expenditure on public projects.
c. Increase in tax rates accompanied by reduction of interest rate.
d. Reduction of expenditure on public projects.
Ans. B
34. Consider the following statements:
Other things remaining unchanged, market demand for a good might increase if
1. price of its substitute increases
2. price of its complement increases
3. the good is an inferior good and income of the consumers increases
4. its price falls
Which of the above statements are correct?
a. 1 and 4 only
b. 2, 3 and 4
c. 1, 3 and 4
d. 1, 2 and 3
Ans. A
35. With reference to 'Urban Cooperative Banks' in India, consider the following statements:
1. They are supervised and regulated by local boards set up by the State Governments.
2. They can issue equity shares and preference shares.
3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.
Which of the statements given above is/are correct?
a. 1 only
b. 2 and 3 only
c. 1 and 3 only
d. 1,2 and 3
Ans. B
Solution Hints & Reference Reads
https://prsindia.org/billtrack/the-banking-regulation-amendment-bill-2020-1054
36. Indian Government Bond Yields are influenced by which of the following?
1. Actions of the United States Federal Reserve
2. Actions of the Reserve Bank of India
3. Inflation and short term interest rates.
Select the correct answer using the code given below.
a. 1 and 2 only
b. 2 only
c. 3 only
d. 1,2 and 3
Ans. D
Solution Hints & Reference Reads
https://www.rbi.org.in/Scripts/MSM_Mintstreetmemos16.aspx
37. Consider the following:
1. Foreign Currency convertible bonds
2. Foreign institutional investment with certain conditions.
3. Global depository receipts
4. Non-resident external deposits.
Which of the above can be included in Foreign Direct Investments?
a. 1, 2 and 3
b. 3 only
c. 2 and 4
d. 1 and 4
Ans. A
Solution Hints & Reference Reads
https://blog.ipleaders.in/can-funds-received-drs-fccbs-treated-fdi/
38. Consider the following statements:
The effect of devaluation of a currency is that it necessarily
1. improves the competitiveness of the domestic exports in the foreign markets.
2. increases the foreign value of domestic currency.
3. improves the trade balance.
Which of the above statements is/are correct?
a. 1 only
b. 1 and 2
c. 3 only
d. 2 and 3
Ans. A
Solution Hints & Reference Reads
A weak domestic currency makes a nation's exports more competitive in global markets, and simultaneously makes imports more expensive. Higher export volumes spur economic growth, while pricey imports also have a similar effect because consumers opt for local alternatives to imported products. This improvement in the terms of trade generally translates into a lower current account deficit (or a greater current account surplus), higher employment, and faster GDP growth.
39. Which one of the following effects of creation of black money in India has been the main cause of worry to the Government of India?
a. Diversion of resources to the purchase of real estate and investment in luxury housing.
b. Investment in unproductive activities and purchase of precious stones, jewellery, gold, etc.
c. Large donations to political parties and growth of regionalism
d. Loss of revenue to the State Exchequer due to tax evasion.
Ans. D
40. Which one of the following is likely to be the most inflationary in its effects?
a. Repayment of public debt
b. Borrowing from the public to finance a budget deficit
c. Borrowing from the banks to finance a budget deficit
d. Creation of new money to finance a budget deficit
Ans. D
Solution Hints & Reference Reads
Printing/creating new money to finance a budget deficit will be the most inflationary effect. Because it increases money supply without any increase in production of goods and services.
41. Which one of the following is used in preparing a natural mosquito repellent?
a. Congress grass
b. Elephant grass
c. Lemongrass
d. Nut grass
Ans. C
Solution
Known for its distinct smell, citronella grass (or lemon grass) is the most commonly used natural ingredient in mosquito repellents. In fact, the Brooklyn Botanic Garden recommends lemon-scented plants such as citronella grass to keep mosquitoes at bay.
42. Consider the following kinds of organisms:
1. Copepods
2. Cyanobacteria
3. Diatoms
4. Foraminifera
Which of the above are primary producers in the food chains of oceans?
a. 1 and 2
b. 2 and 3
c. 3 and 4
d. 1 and 4
Ans. B
43. Consider the following animals:
1. Hedgehog
2. Marmot
3. Pangolin
To reduce the chance of being captured by predators, which of the above organism rolls up/roll up and protects/protect its/their vulnerable parts?
a. 1 and 2
b. 2 only
c. 3 only
d. 1 and 3 only
Ans. D
44. With reference to the ‘’New York Declaration on Forests’’, which of the following statements are correct?
1. It was first endorsed at the United Nations Climate Summit in 2014
2. It endorses a global timeline to end the loss of forests
3. It is a legally binding international declaration
4. It is endorsed by governments, big companies and indigenous communities.
5. India was one of the signatories at its inception
Select the correct answer using the code given below
a) 1, 2 and 4
b) 1, 3 and 5
c) 3 and 4
d) 2 and 5
Ans. A
Solution Hints & Reference Reads
https://forestdeclaration.org/about
45. Magnetite particles, suspected to cause neurodegenerative problems are generated as environmental pollutants from which of the following?
1. Brakes of motor vehicles
2. Engines of motor vehicles
3. Microwave stoves within homes
4. Power plants
5. Telephone lines
Select the correct answer using the code given below
a) 1, 2, 3 and 5 only
b) 1, 2 and 4 only
c) 3, 4 and 5 only
d) 1, 2, 3, 4 and 5
Ans. D
Solution Hints & Reference Reads
https://pubmed.ncbi.nlm.nih.gov/30216885/
46. Which one of the following a filter feeder?
a) Catfish
b) Octopus
c) Oyster
d) Pelican
Ans. C
Solution Hints & Reference Reads
Oysters are filter feeders that feed upon suspended particles in the water column, pumping such a high rate of water flow that they are considered an important biofilter that helps maintain system functioning
47. In case of which of the following biogeochemical cycles, the weathering of rocks is the main source of release of nutrient to enter the cycle?
a) Carbon cycle
b) Nitrogen cycle
c) Phosphorus cycle
d) Sulphur cycle
Ans. C
Solution Hints & Reference Reads
https://courses.lumenlearning.com/boundless-microbiology/chapter/nutrient-cycles/
48. Which of the following are detritivores?
1. Earthworms
2. Jellyfish
3. Seahorse
4. Woodlice
Select the correct answer using code given below
a) 1, 2 and 4 only
b) 2, 3, 4 and 4 only
c) 1, 3 and 5 only
d) 1, 2, 3, 4 and 5
Ans. C
Solution Hints & Reference Reads
https://www.oxfordreference.com/view/10.1093/oi/authority.20110803095713734#:~:text=Examples%20of%20detritivores%20are%20earthworms,and%20plants%20(see%20decomposer).
49. The ‘’Common Carbon Metric’’ supported by UNEP, has been developed for
a) Assessing the carbon footprint of building operations around the world
b) Enabling commercial farming entities around the world to enter carbon emission trading
c) Enabling governments to assess the overall carbon footprint caused by their countries
d) Assessing the overall carbon foot-print caused by the use of fossil fuels by the world in a unit time
Ans. A
Solution Hints & Reference Reads
COMMON CARBON METRIC FOR MEASURING ENERGY USE AND REPORTING GREENHOUSE GAS EMISSIONS FROM BUILDING OPERATIONS https://wedocs.unep.org/handle/20.500.11822/7922
50. Which of the following have species that can establish symbiotic relationship with other organisms?
1. Cnidarians
2. Fungi
3. Protozoa
Select the correct answer using the code given below.
a. 1 and 2 only
b. 2 and 3 only
c. 1 and 3 only
d. 1,2 and 3
Ans. D
51. Under the Indian Constitution , concentration of wealth violates
a. Right to Equality
b. The Directive Principles of State Policy
c. The Right to Freedom
d. The concept of welfare
Ans. B
Solution Hints & Reference Reads
Article 39 (b) that the ownership and control of the material resources of the community are so distributed as best to subserve the common good; and (c) that the operation of the economic system does not result in the concentration of wealth and means of production to the common detriment; these are sometimes called charter of social and economic justice. DPSP
52. What is the position of the Right to Property in India?
a. Legal right available to citizens only
b. Legal right available to any person
c. Fundamental Right available to citizens only
d. Neither Fundamental Right nor legal right
Ans. D
Solution
It is a constitutional Right
53. What was the exact constitutional status of India on 26th January, 1950?
a. A Democratic Republic
b. A Sovereign Democratic Republic
c. A Sovereign Secular Democratic Republic.
d. A Sovereign Socialistic Secular Democratic Republic
Ans. B
Solution Hints & Reference Reads
secular and socialist word were added by the 42nd constitutional amendment act 1976
54. Constitutional government means
a. A representative government of a nation with federal structure
b. a government whose Head enjoys nominal powers
c. a government whose Head enjoys real powers.
d. a government limited by the terms of the constitution.
Ans. D
Solution Hints & Reference Reads
Constitutional government mean a government limited by a body of law, constitution.
55. With reference to India, the terms 'Halbi, Ho and Kui' pertain to
a. dance forms of Northwest India
b. musical instruments
c. pre-historic cave paintings
d. tribal languages
Ans. D
56. Consider the following statements in respect of Bharat Ratna and Padma Awards:
1. Bharat Ratna and Padma Awards are titles under the Article 18(1) of the constitution of India.
2. Padma Awards, which were instituted in the year 1954, were suspended only once.
3. The number of Bharat Ratna Awards is restricted to a maximum of five in a particular year.
Which of the above statements are not correct?
a. 1 and 2 only
b. 2 and 3 only
c. 1 and 3 only
d. 1, 2 and 3
Ans. D
Solution Hints & Reference Reads
Only 3 person can get Bharat Ratna in a year. These are not considered as titles under Article 18(1). Padma Awards are suspended twice from July 1977 to 1980 and August 1992 to December 1995 Wikipedia
57. Consider the following statements:
Statement 1: The United Nations Capital Development Fund (UNCDF) and the Arbor day foundation have recently recognized Hyderabad as "2020 Tree City Of the World"
Statement 2: Hyderabad was selected for the recognition for a year following its commitment to grow and maintain the urban forests.
Which one of the following correct in respect to above statements
a. Both statement 1 and Statement 2 are correct and Statement 2 is the correct explanation for Statement 1.
b. Both statement 1 and Statement 2 are correct but Statement 2 is the not correct explanation for Statement 1.
c. Statement 1 is correct and Statement 2 is not correct .
d. Statement 2 is correct and Statement 1 is not correct
Ans. D
Solution Hints & Reference Reads
FAO and Arbor Day Foundation recognised it
58. Consider the following statements in respect of the Laureus World Sports Award which was instituted in the 2000:
1. American Golfer Tiger Woods was the first winner of this Award.
2. The Award was received mostly by 'Formula one' players so far.
3. Roger Federer received this award maximum number of times compared to others.
Which of the above statements are correct?
a. 1 and 2 only
b. 2 and 3 only
c. 1 and 3 only
d. 1, 2 and 3
Ans. C
Solution Hints & Reference Reads
Mostly Tennis players got this prize. Roger Federer won 5 awards.
59. Consider the following statements in respect of the 32nd Summer Olympics :
1. The official motto for this Olympics is 'A New World'.
2. Sport Climbing, Surfing, Skateboarding, Karate and Baseball are included in this Olympic.
Which of the above statements is/are correct?
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
Ans. B
Solution
United by emotion is the official motto of 32nd summer Olympics
60. Consider the following statements in respect of the ICC World test championship:
1. The finalists were decided by the number of matches they won.
2. New Zealand was ranked ahead of England because it won more matches than England.
Which of the following statements is/are correct?
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
Ans. D
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