Q1.

Sol(b)

Q2.Sol(c)

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AAY was launched in December 2000.Under the scheme one crore of the poorest
among the BPL families covered under the targeted public distribution system
were identified.Poor families were identified by the respective state rural
development departments through a Below Poverty Line (BPL) survey.Twenty
five kilograms of food grains were made available to each eligible family at a
highly subsidised+ rate of Rs 2 per kg for wheat and Rs 3 per kg for rice.This
quantity has been enhanced from 25 to 35 kgs with effect from April 2002. The
scheme has been further expanded twice by additional 50 lakh BPL families in
June 2003 and in August 2004. With this increase, 2 crore families have been
covered under the AAY.

ee
a

In case of disguised unemployment people appear to be employed. If a work

requiring at most 5 people employs 8 people, then the extra 3 do not add to the
output and are essentially unemployed in disguise,i.e. under utilization of the
extra labour. So, option (c) is correct.

Option (d) is a case of more efficient utilization of existing labour. So, wrong.

Option (b) is a general phenomenon seen in developing countries like India

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where skill sets do not match with available job demand.

In India, this is more common in agriculture and low productivity sectors like
small households establishments. For e.g. 90% of industrial units in India face
the issue of disguised unemployment.

Factors that contribute to it are: a) large unemployment: b) low skill base of

labour; c) less efficient technology and capital utilization; d) sub-optimal
production management etc.

Q3.Sol(d)

It was established in 1905 at Pusa (Bihar) with a generous grant from an

American philanthropist. No Parliamentary act established it.So, statement 1 is
wrong.

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During the fifties, the advancement of scientific disciplines constituted the core
program of IARI and provided the base for its fast expansion in the 1960's and
1970's. So, it also claims credit for enabling the Green Revolution, in part by
developing rust resistant strains of wheat, apart from the HYVs introduced from
abroad.

Green Revolution in India was a period during which agriculture in India

increased its yields due to improved agronomic technology.

The introduction of high-yielding varieties of seeds and the increased use of

chemical fertilizers and irrigation led to the increase in production needed to
make India self-sufficient in food grains, thus improving agriculture in India.
In many areas, Green Revolution is associated with the loss of soil fertility

ee
a

due to increased use of chemical fertilizers. Also, continuous use of groundwater

for tubewell irrigation has reduced the water -table below the ground.

Q4.Sol(a)

ad

Minimum Support Price (MSP) is a form of market intervention by the

Government of India to insure agricultural producers against any sharp fall in
farm prices .The minimum support prices are announced by the Government of
India at the beginning of the sowing season for certain crops on the basis of the
recommendations of the Commission for Agricultural Costs and Prices (CACP).

The major objectives are to support the farmers from distress sales and to
procure food grains for public distribution. In case the market price for the
commodity falls below the announced minimum price due to bumper production
and glut in the market, govt. agencies purchase the entire quantity offered by
the farmers at the announced minimum price.

Q5.Sol(b)

Since 2004, it is being run by Department of Food & Public Distribution. The
main objective of the scheme was to provide safeguard against starvation during

the period of natural calamity or during lean season when the marginalized food
insecure households did not have sufficient resources to purchase rations.

Such people in need of food grains will be able to borrow food grains from the
Village Grain Bank. The grain banks are to be set up in food scarce areas like the

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IA

drought prone areas, the hot and cold desert areas, tribal areas and the
inaccessible hilly areas which remain cut off because of natural calamities like
floods, etc.

These villages are to be notified by the concerned State Government/Union

Territory. The scheme envisages inclusion of all willing BPL/AAY families in the
villages to be identified by the State Government in food deficit areas.

The quantity to be lent and the period of repayment is to be decided by the

Group themselves. Village Panchayat/Gram Sabha, Self Help Group for NGOs etc
are identified by the state governments and eligible for running the Grain banks.

ee
a

The scheme has been discontinued w.e.f. 2014.

Q6.Sol(a)

ad

Only unskilled manual work is allotted under MGNREGA. So,statement 1 is

incorrect.

MGNREGA aims at creating durable assets like roads, canals etc. So, statement 2
is correct.

Contractors cannot be used in allotting MGNREGA work. So, statement 3 is

correct.

It aims to guarantee the 'right to work'. Employment is to be provided within 5

km of an applicant's residence, and minimum wages are to be paid. If work is
not provided within 15 days of applying, applicants are entitled to an unemployment
allowance. Thus, employment under MGNREGA is a legal entitlement. So,
statement 4 is also correct.

The statute is hailed by the government as "the largest and most ambitious
social security and public works programme in the world". In its World
Development Report 2014, the World Bank termed it a "stellar example of rural

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Q7.Sol(d)

development. Work is provided to every household whose adult members

volunteer to do unskilled manual work. Apart from providing economic security
and creating rural assets, NREGA can help in protecting the environment,
empowering rural women, reducing rural-urban migration and fostering social
equity, among others.

The World Bank has been publishing poverty line since 1990 World Development
Report (WDR) on Poverty. It has anchored its international poverty lines to the
national poverty lines used in the poorest countries.

ee
a

In 2008, the World Bank came out with a figure (revised largely due to inflation)
of $1.25 at 2005 purchasing-power parity (PPP). The common international
poverty line has in the past been roughly $1 a day.

In 2015 World Bank updated international poverty line to US $1.90 a day.

Determining the poverty line is usually done by finding the total cost of all the
essential resources that an average human adult consumes in one year.

Note: World Bank should not be confused with the United Nations World Bank

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Group, a member of the United Nations Economic and Social Council.

Q8.Sol(b)

The President of India is the Visitor of 114 central institutions. This includes
Central Universities, NITs, IITs, IISERs etc. under the administrative control of
Ministry of HRD. Some of the institutions are under the administrative control of
Ministry of Shipping, Ministry of External Affairs, Ministry of Agriculture, Ministry
of Sports, Ministry of Textiles and Ministry of Chemicals & Fertilizers. The powers
of the President as a Visitor of these institutions are defined in their respective
Acts.

Some of his powers are to inspect the university, chair conference of Directors,
power to annul unconstitutional provisions/rules w.r.t to the Universities.

Q9.Sol(d)

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Chemical fertilizers provide minerals which dissolve in water and are

immediately available to plants. So, statement 1 is wrong.

But these minerals may not be retained in the soil for long. They may escape
from the soil and pollute groundwater, rivers and lakes. So, statement 3 is
correct.

Chemical fertilizers can also kill bacteria and other microorganisms in the soil.
This means some time after their use, the soil will be less fertile than ever
before, and some symbiotic relations based on micro-organisms will be broken.
So, statement 2 and 4 are correct.

ee
a

It has been explained very well here.

Q10.Sol(c)

ad

Its world headquarters are located in Rome. It leads international efforts to

defeat hunger.

Serving both developed and developing countries, FAO acts as a neutral forum

where all nations meet as equals to negotiate agreements and debate policy.

FAO is also a source of knowledge and information, and helps developing

countries and countries in transition modernize and improve agriculture, forestry
and fisheries practices, ensuring good nutrition and food security for all.

FAO and the World Health Organization created the Codex Alimentarius
Commission in 1961 to develop food standards, guidelines and texts such as
codes of practice under the Joint FAO/ WHO Food Standards Programme.

Q11.Sol(d)

Rainfall in coastal areas is not adequate, especially some of the eastern coasts.
This is why coastal areas have a well-developed irrigation infrastructure.

Statement A is wrong, and so is R.

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Groundwater system irrigation is the largest in India. In 2010, only about 35%
of total agricultural land in India was reliably irrigated. About 2/3rd cultivated
land in India is dependent on monsoons.

Riverine plains in India are well-irrigated. In contrast, plateau regions such as

the Deccan plateau have low levels of irrigation.

Q12.Sol(d)

ee
a

Human labour and land contribute to production. So, statements 1 and

2 are correct.

Capital goods are machines which are used to produce other goods. So,
statement 4 is also correct.'

Consumer goods are finished products. They are not factors of production, but

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products. So, statement 3 is wrong.

It describes the inputs that are used in the production of goods or services

in the attempt to make an economic profit. The factors of production include

land, labor, capital and entrepreneurship. Capital can be further divided into
fixed (machines etc) and working capital (money, raw material etc).
Q13.Sol(b)

It is a quasi-judicial body. So, 2 is wrong.

The Consumer Protection Act, 1986 is lays down the rights of the consumers and
provides for promotion and protection of the rights of the consumers.

The Act mandates establishment of Consumer Protection Councils at the Centre

as well as in each State and District, with a view to promoting consumer
awareness.

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The Central Council is headed by Minster, In-charge of the Department of

Consumer Affairs in the Central Government and the State Councils by the
Minister In-charge of the Consumer Affairs in the State Governments. It also
provides for a 3-tier structure of the National and State Commissions and
District Forums for speedy resolution of consumer disputes.

Each District Forum is headed by a person who is or has been or is eligible to be

appointed as a District Judge and each State Commission is headed by a person
who is or has been a Judge of High Court.

ee
a

Q14.Sol(a)

The term special economic zone (SEZ) is commonly used as a generic

term to refer to any modern economic zone.

In these zones business and trades laws differ from the rest of the country.
Broadly, SEZs are located within a country's national borders.

ad

The aims of the zones include: increased trade, increased investment, job
creation and effective administration. To encourage businesses to set up in the
zone, financially libertarian policies are introduced. These policies typically
regard investing, taxation, trading, quotas, customs and labour regulations.
Additionally, companies may be offered tax holidays.

Q15.Sol(d)

A barrier to trade is a government-imposed restraint on the flow of

international goods or services.

The most common barrier to trade is a tariff'a tax on imports. Tariffs raise the
price of imported goods relative to domestic goods (goods produced at home).
Quota reduces imports. So, (a) and (b) are trade barriers.

Q16.Sol(c)

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Another common barrier to trade is a government subsidy to a particular

domestic industry. Subsidies make those goods cheaper to produce than in
foreign markets. This results in a lower domestic price. Both tariffs and subsidies
raise the price of foreign goods relative to domestic goods, which reduces
imports. For e.g. subsidies on agriculture is a major point of contention in WTO.
So, (c) is also a trade barrier. WTO agreements bring uniformity in trade policies
of countries and reduce trade barriers. So, (d) is the answer.

ee
a

The various types of loans can be conveniently grouped as formal sector loans
and informal sector loans. Among the former are loans from banks and
cooperatives. The informal lenders include moneylenders, traders, employers,
relatives and friends, etc.Formal loans are regulated by RBI.

Q17.Sol(b)

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Money does not have any intrinsic value. However, it is still accepted as a
medium of exchange because the currency is authorised by the government of
the country. In India, the Reserve Bank of India issues currency notes on behalf
of the central government.

As per Indian law, no other individual or organisation is allowed to issue

currency. Moreover, the law legalises the use of rupee as a medium of payment
that cannot be refused in settling transactions in India. No individual in India can
legally refuse a payment made in rupees. Hence, the rupee is widely accepted as
a medium of exchange.

Q18.Sol(b)

Grameen Bank (GB) has reversed conventional banking practice by removing the
need for collateral (security against which a loan is made, e.g. house) and
created a banking system based on mutual trust, accountability, participation
and creativity.

Professor Muhammad Yunus, the founder of "Grameen Bank" and its Managing
Director, reasoned that if financial resources can be made available to the poor
people on terms and conditions that are appropriate and reasonable, "these
millions of small people with their millions of small pursuits can add up to create
the biggest development wonder.'

As of 2011, it has 8.349 million borrowers, 97 percent of whom are women. With
2,565 branches, GB provides services in 81,379 villages, covering more than 97

Q19.Sol(d)

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percent of the total villages in Bangladesh.

Option (a) is wrong as GDP includes services too.

ee
a

Option (b) is wrong as non-monetary goods and services (e.g. cooking by

housewife) is not included in GDP calculation.

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Option (c) is wrong as economic transactions virtually include everything

economic in the country. For e.g. if a stock broker sells and purchases the same
stock worth Rs. 1000 five times in a day, it does not increase the GDP of the
country by Rs.5000. Economic transactions may also include buying and selling
of bonds, FII inflows and outflows etc.

GDP includes the value of all goods and services produced within a country
within a year.

Q20.Sol(d)

A straight forward question.

Per capita income shows living standard and economic status. So, 1 is correct.

Literacy rate shows educational achievement and is used in some form in the
Human Development Index (HDI). So, 2 is correct.

Health indicators like IMR, MMR, malnutrition rate etc. show the general health
and well-being of the population and its life expectancy. So, 3 is correct.

Q21.Sol(d)

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As the water table lowers, the water must be pumped farther to reach the
surface, using more energy. In extreme cases, using such a well can be cost
prohibitive. So, 1 is correct.

Land subsidence occurs when there is a loss of support below ground. This is
most often caused by human activities, mainly from the overuse of groundwater,
when the soil collapses, compacts, and drops. So, 2 is correct.

ee
a

Saltwater intrusion is the movement of saline water into freshwater aquifers.

The movement happens because saltwater has a higher mineral content than
freshwater, it is denser and has a higher water pressure. As a result, saltwater
can push inland beneath the freshwater, which can lead to contamination of
drinking water sources and other consequences. So, 3 is correct.

ad

An ecotone is a transition area between two biomes. It is where two

communities meet and integrate. Groundwater feeds soil moisture through
percolation, and many terrestrial vegetation communities depend directly on
either groundwater or the percolated soil moisture above the aquifer for at least
part of each year. Hyporheic zones (the mixing zone of stream water and
groundwater) and riparian zones are examples of ecotones largely or totally
dependent on groundwater. So, 4 is correct.

Q22.Sol(a)

Option (b) is known as Under 5 Mortality Rate (U5MR).

Option (c) describes neo-natal mortality rate.
Option (a) describes IMR.

Presently the IMR of India is around 42 per 1000 births which also nearly
fulfils the MDG criteria for IMR

IMR is dependent on several factors such as institutional delivery, sanitation,

water, health facilities, early disease prevention, malnutrition of mother and
child, educational levels of the mother and family etc.

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Q23.Sol(a)

These reports (dealing with development) are being published every year;
published by the Government of India (Economic Survey), United Nations
Development Programme (Human Development Report) and World Bank (World
Development Indicators).

World Development Indicators is the primary World Bank collection of

ee
a

development indicators, compiled from officially-recognized international

sources. It presents the most current and accurate global development data
available, and includes national, regional and global estimates.

Q24.Sol(d)

ad

Ever since the SHG-Bank Linkage Programme was launched by NABARD, the Self
Help Promoting Agencies such as NGOs, Banks (RRBs, DCCBs), Farmers Clubs
and Individual Rural Volunteers (IRV) are being extended grant support to
organise and nurture SHGs of the poor.

In fact, the phenomenal growth of SHG-Bank Linkage Programme in the country,

is the result of the painstaking efforts put in by these agencies in forming and
nurturing SHGs especially in areas where the concept never existed.

Q25.Sol(a)

Consumers International (CI) is the world federation of consumer groups

that, working together with its Members, serves as the only independent and
authoritative global voice for consumers.

Founded in 1960, it is fighting for a fair, safe and sustainable future for all
consumers in a global marketplace increasingly dominated by international
corporations.

CI is a not-for-profit company limited by guarantee and registered in the UK.

Q26.Sol(a)

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Today, Consumers International has become an umbrella body to over 220

member organisations from over 115 countries.

ee
a

The rst statement which says that in Developing Countries the income
distribution is highly skewed is a correct statement. The second statement,
which says that in Developing countries the ratio of Labour/ Capital is generally
very low is incorrect. The ratio would be high, as these countries will have less
capital and more labour. The third statement is almost irrelevant as one can not
link the stage of development with the Balance of payments.

Q27.Sol(d)

Tiger Range Countries

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The 13 Tiger Range Countries (TRCs) are Bangladesh, Bhutan, China, India,
Indonesia, Cambodia, Laos, Malaysia, Myanmar, Nepal, Russia, Thailand and
Vietnam. However, these 13 Tiger Range Countries cannot implement the global
tiger recovery programme without the support of the countries which are
destination or transit points for the illegal tiger trade. The total wild population of
tigers is 3200. Only 6 subspecies exist viz. Sumatran, Bengal, Amur,
Indochinese, South China and Malayan tiger. The number of Sumatran tigers is
400 and it is 12% of the global tiger population. In India 1400 tigers are left.
Indias project tiger was launched in 1973. The first governmental meeting on
tiger conservation was held in Kathmandu, Nepal in October 2009. This meeting
had recommended a series of 15 global actions that need to be taken to change
the trajectory of tigers from extinction to recovery, as well as commitments from
several tiger range countries. Later, first Asian ministerial

conference adopted the goal of doubling the number of tigers by 2022. 2022 is
the next Year of the Tiger. In July 2010, the Indonesian Island Bali had hosted a
Pre-Tiger Summit Partners Dialogue Meeting in which a Global Tiger Recovery
programme was drafted. After that, the World Tiger Heads of Government

Summit was held at St Petersburg in Russia from September 15 to 18, 2010.

After two years of deliberations, 13 Tiger-range countries finalized an ambitious
global programme for restoring the population of wild tigers, whose count now
stands less than 3,000 across the world. According to the Global Tiger Initiative
(GTI), the GTRP has a high probability of success because all 13 TRCs are
working in concert.

Q28.Sol(b)

ee
a

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Appliances consume energy to operate, but materials used in the

construction of buildings consume energy, too. Embodied energy, or EE, is
the sum of all energy used in the construction processright from
extraction of raw materials, manufacture of products to their
transportation and incorporation in buildings. Lesser the extraction,
processing and refining, lower is the EE, and greener the product.
Cement, steel and bricks, the basic construction materials, are the major
EE contributors. Their use can be reduced only to an extent. Materials like
ceramic and vitrified tiles, which are highly energy intensive, can be easily
replaced with energy-benign materials like stone.
Q29.Sol(d)

Most of you know about the water footprint caused by meat

production.

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Rising meat consumption in the last five decades has also caused a 38 per
cent increase in the worlds per capita phosphorus footprint. This is
because it takes many kilogrammes of feed, grown using phosphate
fertilizers, to breed a cattle for its meat. Phosphorus is being mined for
these fertilisers at amuch faster rate than geological cycles can replenish
it. Inclusion of diet change strategies in phosphorus management studies
could bring down the demand for mined phosphorus.

Meat production also increases Carbon footprint.

Q30.Sol(a)
Second statement is incorrect because the scheme will be a one year
cover, renewable from year to year.
Q31.Sol(d)
Dirty Money versus Black Money
Money laundering is the process by which large amounts of illegally
obtained is given the appearance of having originated from a legitimate

Q32.Sol(d)

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Shadow Banking in Indian Context

source. So basically, all the ways to convert the black money into white
money are Money laundering. But in Money laundering, the black money
must involve a predicate crime such as the violation of Indian Penal Code,
IPC, Narcotics, Prevention of Corruption Act and Human Trafficking. This
is because in India,stashing black money is simply a civil crime involving
tax evasion, money laundering has criminal dimensions related to black
money. That is why, we use the term Dirty Money in this context.

The term shadow banking system was first used in 2007 and refers to
the bank-like functions performed by entities outside the regular banking
system.
The more comprehensive definition, as adopted by the Financial Stability
Board (FSB), i.e., credit intermediation involving and activity (fully or
partially) outside the regular banking system has been globally
accepted. This definition has two important components:

ee
a

Non bank financial entities or entities outside the banking system

that engage in the bank like activities of maturity transformation,
undertaking credit risk transfer and using direct or indirect financial
leverage.

Activities such as securitization, securities lending and repo

transactions that act as important sources of funding for non bank
entities.

ad

Thus, shadow banks comprise entities which conduct financial

intermediation directly, such as finance companies or NBFCs, and entities
which provide finance to such entities, such as mutual funds. Globally,
shadow banking entities could be covered under the broad heads of
Money Market Funds,

Credit investment Fund

Hedge Funds

Finance Companies accepting deposits or deposit like funding

Securities brokers dependent on wholesale funding

Credit insurers, financial guarantee providers

Securitisation vehicles.

The Shadow banking institutions function as intermediaries between the

investors and the borrowers, providing credit and generating liquidity in

the system. Although these entities do not accept traditional demand

deposits offered by banks, they do provide services similar to what
commercial banks offer. And this was one reason why they escaped
regulation abroad. The shadow banking system had overtaken the regular
banking system in offering loans in US before the financial crisis erupted
in 2008.

Q33.Sol(c)

Q34.Sol(c)

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Though the prices of Gasoline are deregulated, yet it means that the
increases will be made by the Public Sector Oil Marketing Companies
(OMCs) in consultation with the Ministry of Petroleum & Natural Gas. It
has also been decided that in case of a high rise and volatility in
international oil prices, Government will suitably intervene in the pricing
of Petrol and Diesel.

Jurisdiction and Powers of NGT Jurisdiction:

ee
a

NGT has Original as well as Appellate jurisdiction on over all civil cases
where a substantial dispute is related to the matters that are connected
to Water Pollution, Forest Conservation, Air Pollution, Environment
Protection and Biological Diversity. These disputes may be related to any
of the following acts:
The Water (Prevention and Control of Pollution) Act, 1974;

2.

The Water (Prevention and Control o[Pollution) Cess Act, 1977;

3.

The Forest (Conservation) Act

4.

The Air (Prevention and Control of Pollution) Act, 1981;

ad

1.

The Environment (Protection) Act, 1986;

6.

The Public Liability Insurance Act, 1991;

7.

The Biological Diversity Act, 2002.

5.

The Tribunal has power to provide

1.Relief and compensation to the victims of pollution and other

environmental damage
2.Restitution of property damaged;
3.Restitution of the environment for such area or areas, as the Tribunal
may think fit.

Q35.Sol(c)
Second statement is incorrect because it reduces its energy content per
volume
Q36.Sol(d)
All are correct statements

Q37.Sol(a)

ee
a

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Independent Evaluation Oce (IEO) has been established to

undertake impartial and objective assessment of the various
public programmes and improve the eectiveness of public
interventions. The oce has functional autonomy and is
attached to Planning Commission under a Governing Board
chaired by the Deputy Chairman, Planning Commission. It is
funded by the Planning Commission and has as its head, a fulltime Director General (DG) in the rank and status of Member,
Planning Commission. It imparts advice to Planning Commission
and the implementing agencies in developing appropriate
management systems consistent with the evaluation objectives.
Q38.Sol(a)

Merit and Non-Merit Subsidies.

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Q39.Sol(b)
First statement is incorrect because the Pradhan Mantri Khanij Kshetra
Kalyan Yojana (PMKKKY) will be implemented by the District Mineral
Foundations (DMFs) of the respective districts.
Q40.Sol(d)

First statement is incorrect because the unit will assist Tax Policy Council
chaired by Finance Minister. Second statement is incorrect because the
unit will be headed by an officer of the level of Chief Commissioner at
functional level alternatively from CBDT and CBEC for a fixed tenure, who
will directly report to Revenue Secretary.
Second statement is incorrect because 100% of unemployment allowance
is to be given by state governments and not by central government.
Q41.Sol(c)
Second statement is incorrect because 100% of unemployment allowance
is to be given by state governments and not by central government.

Q42.Sol(a)
Third statement is incorrect because the Juristiction will be based on Code
of Criminal Procedure. Rest two statements are correct.
Q43.Sol(d)

Q44.Sol(b)

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First statement is incorrect because Jan Aushadhi Scheme envisages

availability of quality generic medicines at affordable prices to all, and not
only to BPL families. Second statement is incorrect because the scheme
mandates Bureau of Pharma PSUs of India (BPPI) to provide one-time
assistance of Rs.2.50 lakhs as furnishing and establishment costs for
setting up a Jan Aushadhi Outlet in government hospitals. State
Governments are required to provide space in Government Hospital
premises or any other suitable locations for the running of the Jan
Aushadhi.

Second statement is incorrect because Zero Budget Natural Farming is

different from organic farming.

ee
a

Q45.Sol(b)

A regressive tax is a tax that takes a larger percentage from low-income

people than from high- income people. As the income rises, the tax rate
decreases in regressive taxation. So, it will prove to be a hindrance to
Start-up India programme. Widening of the tax base will reduce the
revenue deficit and hence will help to boost Start-up initiatives.
Q46.Sol(c)

ad

First statement is incorrect because the fund supports both greenfield and
brownfield projects in the country. Third statement is incorrect because
government's contribution/share in the corpus will be 49% in each entity
set up as an alternate Investment Fund (AIF) and will neither be
increased beyond, nor allowed to fall below, 49%.

Q47.Sol(d)

All are correct statements

Q48.Sol(a)
Second statement is incorrect because it is a feature of UDAY (Ujwal
DISCOM Assurance Yojana)
Q49.Sol(a)
Third statement is incorrect because services are delivered in an
integrated manner at the anganwadi, or child care center

Q50.Sol(d)
DPT includes diphtheria, pertussis (Whooping cough) and tetanus
immunization.
Q51.Sol(c)
Both are correct statements.

Q52.Sol(c)

ee
a

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IA

Interim Budgets are usually presented in an election year either just

before the general polls or immediately after them. A government that is
about to complete its ve-year term and has already presented ve full
Budgets is required to come up with an interim Budget. This allows the
government to draw funds from the exchequer and keep its
administration and nances running for a period of about four months
before which elections can be held and a new elected government is put
in place with enough time for it to present a full Budget for the year. An
interim Budget becomes necessary also when a new government is
formed but does not have enough time to present a full Budget before the
end of the nancial year beyond which it has no power to draw money
from the Consolidated Fund of India. The need for an interim Budget,
arises largely out of the timing of the general elections. If the elections
are held sometime in the middle or the latter half of a nancial year,
interim Budgets are not required. Only when general elections are
scheduled in the rst quarter of the nancial year, the government has no
option other than an interim budget.
Q53.Sol(d)

ad

First statement is incorrect because member states have equal voting

rights irrespective of their size of economy. Second statement is incorrect
because the topmost decision-making body of the WTO is the Ministerial
Conference, which usually meets every two years. Third statement is
incorrect because Council for TRIPS operates under the general guidance
of the General Council and not of Ministerial Conference.

Q54.Sol(b)

Third statement is incorrect because there are some relaxations from

SEBI regulations, but it does not bring the acquired shares outside SEBI
regulations. The scheme allows creditor banks to convert their unpaid
loans to equity of troubled firms.
Q55.Sol(c)
First statement is correct because the primary market of commodity
trading is the market of raw products. Secondary market is the

commodity exchanges. Second statement is also correct because

commodity exchanges provide both spot as well as derivative market
facilities.
Q56.Sol(d)
All are correct statements.

Q57.Sol(a)

Q58.Sol(c)
Both are correct statements.
Q59.Sol(c)

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IA

Third statement is incorrect because no credit card facility is available

only RuPay Debit card and RuPay Kisan card are available. "Swabhimaan"
campaign of the Government of India aims to bring banking services to
large rural areas. It was through help of Business Correspondents.

Start up India programme is inspired from the Yozma programme of

Israel.

ee
a

Q60.Sol(b)

Third statement is incorrect indian not the member of it. The organisation
for Economic Co- operation and Development is a unique forum where the
governments of 34 market democracies work together to address the
economic, social and governance challenges of globalisation as well as to
exploit its opportunities.

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Q61.Sol(d)

NGT has both appellate powers and original powers. Its appellate powers
are exercised against orders passed by statutory authorities under various
environmental legislation such as the Air Act and the Water Act. In
pursuance of its original powers, the NGT can award damages for death
or injury to any person or property if the same has resulted from an
accident or the adverse impact of an activity or operation or process,
under any of the special environmental legislation specified in Schedule I
of the NGT Act.
Q62.Sol(c)
More than 65 % of the installed power plants in India are thermal based
power plants, which have low energy efficiency of around 30 %. Load
factor is defined as average energy demand (load) to the maximum
demand. Indian power plants are suffering from low load factor rather.
Further, due to lack of continuous availability of coal or fuel the power

plants are able to produce less than their installed capacity; thus low
utilization factor. Also, high distribution-line losses are among the most
vexing problems in the Indian power sector. India's aggregate technical
and commercial losses average about 32% of electricity which is very
high as compared to those developed countries (6-11%).
Q63.Sol(a)

Q64.Sol(a)

sy
IA

Second statement is incorrect because liquid funds are debt funds. Third
statement is incorrect because it is regulated by RBI and not by SEBI.
Liquid funds are open ended schemes that invest in debt and money
market instruments with maximum maturity of up to 91 days only.
Hence, the average maturity of a liquid fund is equal to or less than 91
days. This strategy helps in mitigating risk arising out of interest rate
volatility, provide high liquidity to portfolio and generate stable income.

Bonus shares are gifts to existing shareholders as the company issues

additional shares to them at no cost. Issuing of bonus shares further
attaracts new investors to company.

ee
a

Q65.Sol(a)

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Mudra Bank stands for Micro Units Development Refinance Agency. It has
been established as a subsidiary of SIDBI to refinance small business
loans under the Pradhan Mantri Mudra Yojana (PMMY). MUDRA Bank is
refinancing through State level institutions, MUDRA will deliver the loan
through NBFCs, MFIs, Rural Banks, District Banks, Nationalize Banks,
Private Banks, Primary Lending Institutions and other intermediaries.
Currently, MUDRA operates as an NBFC registered under RBI. However,
MUDRA Bill is proposed to be tabled in parliament, which is likely to
enable its conversion into MUDRA Bank. Every bank branch is advised to
fund at least one SC/ST and one women entrepreneur.
Q66.Sol(a)

White color forms are for Resident Indian, and blue color forms are for
NRIs, Foreign Venture Capital, Investor, and Foreign Institutional
Investors. These forms are issued by SEBI for investment in capital
market.
Q67.Sol(a)
Money raised through government securities and loans from IMF and
World Bank will create liability to the government and hence, will not
reduce fiscal deficit of the government.

Q68.Sol(b)
Increased NRI deposits are an external debt. Inward remittance is not
because it is not to be repaid back. ECBs are again external debt. Grants
are never debt because they don't need to be paid back. Depreciation of
US dollar against the rupee will reduce external debt as rupee getting
stronger.

Q69.Sol(a)

sy
IA

First statement is correct. The eight infrastructure sectors that make up

the core sector index coal, crude oil, natural gas, refinery products,
fertilisers, steel, cement and electricity together have a 38% weightage in
the Index of Industrial Production (IIP). We note here that India's core
sector has contracted almost 1.3% within last few months. This downfall
is a result of reduced consumer spending, which leads to lower demand
situation. The producers respond by cutting down on the production. Low
industrial production results in lower corporate sales and profits, which
directly affects stock prices. So a direct impact of weak IIP data is a
sudden fall in stock prices as well as low GDP.

ee
a

Second statement is incorrect because the Reserve Bank of India had

adopted Consumer Price Index (CPI) as the key measure of inflation, but
CPI report is published by the Central Statistics Office (CSO) and not by
RBI.
Q70.Sol(a)

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Commercial transactions between the different parts of the multinational

groups may not be subject to the same market forces shaping relations
between the two independent firms. One party transfers to another goods
or services, for a price. That price is known as transfer price. It is
mainly done for tax-dodging in a country.
Q71.Sol(a)

Recently, RBI Governor Raghuram Rajan urged the government to stick to

the fiscal consolidation path. Fiscal consolidation refers to steps taken by
government to reduce the spending and check Fiscal deficit. First
statement is correct because RBI increasing Repo rate will curb the
commercial banks lending and contribute to fiscal consolidation. Second
statement is correct because increase in SLR will again curb the
commercial banks lending capacity and contribute to fiscal consolidation.
Third statement is incorrect Start-up India programme is leading to fiscal
stimulus. Fourth statement is incorrect because government borrowing in
bonds and T-bills will increase governments liability and hence no fiscal
consolidation.

Q72.Sol(b)
Third statement is incorrect because if three-fourths of the creditors
decide that the case is complex and cannot be addressed within 180 days,
then only, the adjudicator can grant a one-time extension of upto 90 days
on the process.
Q73.Sol(b)

ee
a

sy
IA

First statement is incorrect because appreciation of US Dollar against

Indian Rupee will weaken Indian currency and make export more
profitable for Indians, and hence, will increase the Indian export market.
Second state have worsened the pain for stocks in the countries, as their
purchasing power reduced. Please note that Indian pharmaceutical
industry has very good market capitalization in Asia, Africa, Middle East
and Eastern Bloc countries. Third statement is correct because in recent
months tighter scrutiny of Indian manufacturing sites by US Food and
Drug Administration (FDA) has reduced the easy access of Indian
pharmaceutical industry. Further, as per recent reports Indian
pharmaceutical exports over the next four years will decline, and the
annual growth rate in pharmaceutical exports may almost halve to 7.98%
by 2020 from 14.77% CAGR during 2010-2014.ment is correct because
weaker currencies in Africa and Middle-East
Q74.Sol(c)

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According to RBI, terms loans on which interest or instalment of principal

remain overdue for a period of more than 90 days from the end of a
particular quarter is called a Non-performing Asset. The Securitization and
Reconstruction of Financial Assets and Enforcement of Security Interest
(SARFAESI) Act have provisions for the banks to take legal recourse to
recover their dues. When a borrower makes any default in repayment and
his account is classified as NPA; the secured creditor has to issue notice to
the borrower giving him 60 days to pay his dues. If the dues are not paid
then the bank can take possession of the assets and can also give it on
lease or sell it; as per provisions of the SARFAESI Act.

Q75.Sol(a)

"Bull" and "Bear" are two terms used in stock markets to signify the
different market conditions. While bear denotes a market condition in
which prices of securities are falling, bull denotes a market condition in
which prices of a group of securities are rising or are expected to rise.
Q76.Sol(c)
First statement is incorrect because the main components of the capital
account include foreign investment, loans and banking capital.Foreign

Q77.Sol(d)

sy
IA

investment comprises of Foreign Direct Investment (FDI) and Foreign

Portfolio Investment or Institutional investment. But due to global fall in
oil prices, oil producing economies are slashing budgets, thus, lower
investment as FII and FDI in India and other economy from gulf and
major oil producing countries. Second statement is incorrect because
recent reports have a say that, India, which imports 80 percent of its oil
requirement, has already made a windfall gain of about Rs 3 lakh crore in
import bills due to falling global oil prices. Hence, Import bill has fallen
drastically, improving the current account balance of the country.
Deflation is a monetary phenomenon, that is, it is affected by the demand
and supply of money. Third statement is correct because deflation is a
situation just opposite of inflation, it occurs when prices fall for a long
enough period of time. At present many countries including India are at
high risk of deflation due to falling oil prices.

ee
a

Mutual funds are open ended funds. It means they generally create and
sell new shares to accommodate new investors unlike closed end funds
which sell a fixed number of shares at one time (in an initial public
offering) that later trade on a secondary market.
Q78.Sol(d)

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First statement is incorrect world world economic forum is a swiss non

profit foundation, based in Cologny, Geneva. Second statement is again
incorrect because the Forum is best known for its annual winter meeting
in Davos, a mountain resort in Graubnden, in the eastern Alps region of
Switzerland. Third statement is also incorrect because it publishes the
Global Competitiveness Report. The World Economic Outlook report is
published by IMF.
Q79.Sol(a)

The term was coined by RBI governor Raghuram Govind Rajan. He

explain his point, with an imaginary example of a pensioner with a
savings of Rs 1 lakh who earns an interest rate of 10 per cent and wants
to buy dosas that cost Rs 50 a piece. The RBI governor assumes inflation
to be 10 per cent. He could buy 2,000 dosas with the money today, but
he wants more by investing. At 10 per cent interest, he gets Rs 10,000
after one year plus his principal, Rajan argued. With dosa prices going up
by 10 per cent to Rs 55, he can buy 182 dosas approximately with the Rs
10,000 interest. However, with his principle amount the pensioner can
now buy 1818 dosas. Thus, stateing that that low deposit rate coupled
with low inflation is better than high rates with high prices.

Q80.Sol(d)
All of the above are correct statements.
Q81.Sol(b)

Q82.Sol(d)
All are correct statements.
Q83.Sol(c)

sy
IA

First statement is incorrect because at present cash prize of Rs 1 lakh is

given with awards. The award was first given in 1955, the Sahitya
Akademi Award prizes to the most outstanding books of literary merit
published in any of the major Indian languages recognised by the
Academy. The amount given for the award is now Rs.1,00,000 with a
citation.

Second statement is incorrect because minimum lock period is of 3 years.

Q84.Sol(c)

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ee
a

First statement is incorrect because bio-diesel is prepared from renewable

resources such as animal fats or vegetable oils. But only diesel engines can run
on biodiesel and not all engines can cope with it. Flex fuel involves bio-ethanol
and petrol, or a blend of both. Ethanol is largely seen as a environmentally
friendly alternative to petrol. It is made from the fermentation of crops such as
sugarcane in Brazil and soybean in the US. Second statement is correct because
flex fuels reduce emission of sulphur dioxide, lead and zinc depending upon
blending. Tftird statement is incorrect because flex fuels are less volatile, but
have higher octane ratings than petroleum. Also, note that E-85 is a flex fuel,
which has 85 percent ethanol with 15 percent petrol blending. Ethanol is
produced from cane molasses, a by-product of the sugar production process. So,
at present, the most obvious and reliable source of bio-ethanol in India is
sugarcane. With India being the worlds second largest sugar market,
government wishes to shift to flex fuels, with minimum 10 per cent blending.
Furthermore, flex-fuel and biofuels in general, are promoted because they are
cleaner alternatives to fossil fuels.

Q85.Sol(b)

First statement is incorrect because lower oil prices dampen inflation both
directly when the price of oil-related products falls and indirectly when
production costs for other goods fall. So, lower oil prices lead to lower global
inflation. In an assessment made by the World Bank (2015), global inflation
would fall by 0.40.9 percentage points over 2015 and further in 2016.
Second statement is correct as the fall in oil prices would result in savings in oil
importing countries while less revenue accrued to oil exporting countries.

Third statement is correct

A SWF is state-owned investment fund composed of financial assets such as
stocks, bonds, property, precious metals or other financial instruments.
Sovereign funds are as a result of budget and trade surpluses, and even from
revenue generated from the exports of natural resources. And with the decrease
in oil prices globally the volume of investment from the Middle East funds would
decline significantly as Gulf countries cut back spending.

Q86.Sol(d)

Q87.Sol(d)

sy
IA

SGBs are government securities issued by Reserve Bank on behalf of

Government of India. The bonds are excellent substitutes for holding physical
gold. Investors are assured of the market value of gold at the time of maturity
and periodical interest, but there may be a risk of capital loss if the market price
of gold declines with the time period.

Prime Minister Narendra Modi has unveiled the "Start-up India, Stand-up India"
action plan in New Delhi to boost startup ventures in the country. Its important
features are:

ee
a

Start-up profits to be tax-free for 3 years and also no labour inspections for 3
years of launch of the venture.

Compliance regime based on self-certification for labour and environmental laws

Easy exit policy for start-ups with 90 days
Tax exemption to be provided on capital gains if money is invested in another
start up Government to create Rs. 10,000 crore corpus fund for development
and growth of innovation driven enterprises

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It will be Rs. 2500 crore a year for four years Liberalised Fast-track mechanism
for start-up patent applications under intellectual property rights protection with
80% cost rebate
Q88.Sol(a)

Third statement is wrong because both foreign institutional investors and

domestic investors are allowed to invest in IIBs.

Q89.Sol(d)

Hedge funds are managed much more aggressively than their mutual fund
counterparts, and hence are more risky. The main aim behind investing in hedge
funds is to enhance the leverage and thus the risk of the fund. This also
means that it's possible for hedge funds to make money when the market is
falling. Mutual funds, on the other hand, are not permitted to take these highly
leveraged positions and are typically safer as a result. Also, hedge funds are only
available to a specific group of sophisticated investors with high net worth,
whereas, in case for mutual funds, it is very easy to purchase with minimal
amounts of money.

Q90.Sol(d)
Masala bonds are capital market debt instrument, which allow Indian corporates
to raise money from overseas investors. Furthermore, any capital gains arising
in case of appreciation of rupee between the date of issue and the date of
redemption against the foreign currency in which the investment is made would
be exempt from capital gains tax. No registration as FII with SEBI is required for
investment in masala bonds.

Q91.Sol(c)

Q92.Sol(d)

sy
IA

First statement is incorrect because the scheme sets no capping on Government

subsidy over farmers claim. Third statement is incorrect because the scheme is
optional for both loanee farmers and non-loanee farmers.

ee
a

First statement is correct because depreciation of INR or strengthening of US

Dollar against Indian Rupee will make gold imports more costly and hence it will
reduce its commercial as well as substantial demand in India. Second statement
is correct because India imports about 80% of its crude oil from Middle East
countries, and with OPEC (Organization of the Petroleum Exporting Companies)
decision to not cut oil production, it has increased the supply of crude oil in
international market; thus lowering its prices globally. This has increased the
golds capacity to purchase crude oil. This increases golds capacity to purchase
crude oil and affecting its demand negatively. Tftird statement is also correct
because incidentally, rural India contributes 60% to the countrys gold
consumption of 950-1,000 tonne annually. Rural India has not been able to
invest heavily in gold within last few years, as continuous and frequent drought
conditions in India has resulted in lower yield of income to farmers and hence,
less investment in gold.
Q93.Sol(c)

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Growth stocks are associated with high-quality; successful companies whose

earnings are expected to continue growing at an above-average rate relative to
the market. But with declining GDP growth rate in India, earnings growth rates
have also eroded. With declining GDP growth rate, earnings growth rates have
also eroded. Furthermore, growth stocks have higher price-to-earnings ratios
when compared to value stocks, but growth stocks generally do not return any
dividend. Thus; all this led to decline of growth stock in Indian financial markets.
On the other hand foreign investors prefer stocks that are currently undervalued
and have a steady dividend paying record over those companies with a
reputation of consistent earnings growth. Since value stocks are traded at
undervalued rate and generally earn high dividends; these stocks performed well
above growth stocks.
Q94.Sol(d)
Software Defined Radio utilize and benefit from SDR technologies to solve
market specific problems such as; cost of development, cost of production, cost
of upgrades and maintenance, time to market in supporting new and evolving air

interface standards, or problems associated with network interoperability. These

have been deployed on wide scale in Indian defense system in recent years.
Q95.Sol(c)

Only 2 & 3 are correct statements. Kindly note that a at currency is one which
is backed by some government and has no intrinsic value. The bitcoin does not
have an intrinsic value but it is not backed by a sovereign so it cannot be called
a at currency.
Q96.Sol(a)

Q97.Sol(a)

sy
IA

Cyclical demand and costs are those which changes in a regular way over time,
depending on the part of the trade cycle that a country is in or the time of year.
Kindly note that demand and input costs are cyclical for many sectors such as
commodities, capital goods, real estate, construction and nancial services. The
second statement is not correct. Although the capital good sector has a
weightage of 8.8% in the IIP, contributes 12% to the total manufacturing
activity (which is about 15% of the GDP), yet it is spread in many sectors. The
eight core industries include: Coal, Crude Oil, Natural Gas, Petroleum Renery
Products, Fertilizers, Steel, Cement and Electricity.

ee
a

Surface water is the major source of water for the industries (41%) followed by
groundwater (35%) and municipal water (24%). The use of municipal water is
limited to industries located in urban/ peri-urban areas (See Figure 1). A vast
majority of industries use surface and groundwater in conjunction with
groundwater being relied as a source when surface water availability is on a
decline or is impacted by water pollution bound to have an impact on the
industrial process.
Q98.Sol(c)

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The basic character of the Indian industry was influenced by the Mahalanobis
model of economic development. The Mahalanobis model underlined the
importance of basic industries for the production process. In the initial stages of
the industrialisation of India, when the private capital did not flow into
infrastructure areas, the governments investments in infrastructure such as
basic industries, transport, roads, railways, mining of coal and iron ore, steel
mills, heavy machinery etc. were considered essential for providing momentum
for industrial progress. The establishment of basic industries by the government
was thought essential to evoke a reaction in the development of various spheres
of industrial activity. The crucial factor which led to the adoption of Mahalanobis
model was the low level of capital-stock formation in the economy. Growth in
income was linked to the expansion of capital-stock and investment by the
government was thought essential to expand the capital-stock. In a closed
economy, the domestic supply of capital goods influenced the investment
pattern and hence the production of capital goods by the public sector became
essential. The emphasis was on those capital goods which could lead to the
production of other capital goods. The implementation of Mahalanobis model
required centralised control and planning. The industrial policy resolution of 1956

and the second five year plan (1956-61) gave a practical shape to the
Mahalanobis model. The 1956 resolution categorised industries under three
headings. The first category was the monopoly of the government. In the second
category, the industries meant for progressive takeover by the state were
enlisted. The third category of industries was left open for the operation of the
private sector.
Q99.Sol(b)

Q100.Sol(b)

sy
IA

Services may involve the transport distribution and sale of goods from producer
to a consumer, as may happen in wholesaling and retailing, or may involve the
provision of a service, such as in pest control or entertainment. The goods may
be transformed in the process of providing the service, as happens in the
restaurant industry. However, the focus is on people interacting with people and
serving the customer rather than transforming physical goods.

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ee
a

IIP is a representative figure which measures the general level of Industrial

activity in the country. Being an abstract number, it does not so Volume of
activity and only shows the magnitude which represents the status of production
in the industrial sector for a given period of time as compared to a reference
period of time. The index of industrial production (IIP) with 2004-05 as base is
the leading indicator for industrial performance in the country. Compiled on a
monthly basis, the current IIP series based on 399 products/ product groups is
aggregated into three broad groups of mining, manufacturing, and electricity.
The IIP as an index shows both the level of production and growth.