UPSC CAPF Archives

1. The logo of which of the following famous organizations is a Giant

The logo of which of the following famous organizations is a Giant Panda?

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World Wildlife Fund or World Wide Fund for Nature (WWF)

International Union for Conservation of Nature and Natural Resources (IUCN)

United Nations Educational, Scientific and Cultural Organization (UNESCO)

United Nations Environment Programme (UNEP)

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UPSC CAPF – 2013

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The correct option is A.

– The question asks for the organization whose logo is a Giant Panda.
– A) **World Wildlife Fund or World Wide Fund for Nature (WWF):** This international non-governmental organization, founded in 1961, is dedicated to wildlife preservation and reducing human impact on the environment. Its famous logo is a stylized depiction of a Giant Panda named Chi Chi, which was transferred from the London Zoo to WWF in 1961.
– B) **International Union for Conservation of Nature and Natural Resources (IUCN):** IUCN’s logo features a globe surrounded by laurel leaves.
– C) **United Nations Educational, Scientific and Cultural Organization (UNESCO):** UNESCO’s logo depicts the profile of the Parthenon temple inside a square frame.
– D) **United Nations Environment Programme (UNEP):** UNEP’s logo features a stylized human figure and laurel leaves within a circle.
– Therefore, the Giant Panda is the logo of the World Wildlife Fund (WWF).

The original panda design for the WWF logo was created by Sir Peter Scott, inspired by the panda Chi Chi. It was adopted because the panda is endangered, easily recognizable, and has appealing features suitable for a logo.

2. Consider the following statements: 1. The Fifth Summit of BRICS (201

Consider the following statements:

1. The Fifth Summit of BRICS (2013) was held in Durban.
2. Dr. Manmohan Singh became the only head of States or head of Government to attend all BRICS Summits held so far.
3. The theme of Fifth Summit of BRICS was “BRICS and Africa : Partnership for Development, Integration and Industrialization”.

Which of the statements given above is/are correct?

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1, 2 and 3

1 and 2 only

2 and 3 only

3 only

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UPSC CAPF – 2013

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The correct option is A.

– Statement 1: The 5th BRICS summit was indeed held in Durban, South Africa, from 26-27 March 2013. This statement is correct.
– Statement 2: The first BRIC summit was in 2009. South Africa joined in 2010, attending from the 2011 summit. Dr. Manmohan Singh was the Prime Minister of India from 2004 to 2014 and attended all BRICS summits from the first one in 2009 to the 6th one in 2014. Looking at the leaders of other member countries, leaders like Lula da Silva (Brazil), Dmitry Medvedev/Vladimir Putin (Russia), and Hu Jintao/Xi Jinping (China) were in power during different periods covering these summits. For instance, Xi Jinping became President of China in 2013 and attended the 2013 summit. Given the changes in leadership in Brazil, Russia, and China during the period from 2009 up to the 5th summit in 2013, Dr. Manmohan Singh appears to be the only head of state/government among the original members (or expanded members up to 2011) who attended all the first five summits. This statement is correct in the context up to the 5th summit.
– Statement 3: The theme of the 5th BRICS summit in Durban (2013) was “BRICS and Africa: Partnership for Development, Integration and Industrialization”. This statement is correct.
– Since all three statements are correct, the correct option is A.

BRICS is an association of five major emerging national economies: Brazil, Russia, India, China, and South Africa. Originally BRIC (formed in 2009), South Africa was invited to join in 2010, and the group became BRICS in 2011. The summits are held annually.

3. Which one among the following is not a Mars rover?

Which one among the following is not a Mars rover?

Sojourner

Opportunity

Curiosity

Apollo

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UPSC CAPF – 2013

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The correct option is D.

– The question asks to identify which of the given options is *not* a Mars rover.
– A) **Sojourner:** This was NASA’s first wheeled vehicle to rove on Mars, landing as part of the Mars Pathfinder mission in 1997. It is a Mars rover.
– B) **Opportunity:** This was one of NASA’s two Mars Exploration Rovers (MER-B), active on Mars from 2004 to 2018. It is a Mars rover.
– C) **Curiosity:** This is NASA’s Mars Science Laboratory (MSL) rover, which landed on Mars in 2012 and is still operational. It is a Mars rover.
– D) **Apollo:** This refers to NASA’s series of missions that landed humans on the Moon between 1969 and 1972. It is a lunar program, not a Mars rover.

Besides these, other notable Mars rovers include Spirit (NASA, MER-A), Perseverance (NASA, part of Mars 2020 mission), and Zhurong (CNSA, part of Tianwen-1 mission).

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4. In the current pricing policy, the price of diesel in India consists

In the current pricing policy, the price of diesel in India consists of

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Fuel component + Customs duty + Excise duty + Sales VAT + Dealer's commission

Fuel component + Excise duty + Sales VAT + Dealer's commission

Fuel component + Customs duty + Sales VAT + Dealer's commission

Fuel component + Customs duty + Excise duty + Dealer's commission

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Answer is Wrong!

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UPSC CAPF – 2013

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The correct option is B.

– The retail price of diesel (and petrol) in India is a composite of several components.
– These components typically include:
1. **Base Fuel Price:** This is the cost of the fuel at the refinery gate, including the cost of crude oil, refining charges, and freight. This is represented by “Fuel component”.
2. **Central Excise Duty:** A tax levied by the central government.
3. **State VAT/Sales Tax:** A tax levied by the respective state governments, which is usually ad valorem (a percentage of the price).
4. **Dealer’s Commission:** The margin paid to the fuel pump owners.
5. Other minor charges (like pollution cess, etc.) may also be included.
– Customs duty is levied on imported goods. While crude oil is imported (and customs duty applies), the refined product (diesel) sold domestically faces Central Excise and State VAT. If refined diesel is imported, customs duty would apply, but Excise and VAT are the standard components levied on domestic sales alongside the base price and dealer commission.
– Option B (Fuel component + Excise duty + Sales VAT + Dealer’s commission) represents the standard and most significant components of the retail diesel price in India.
– Option A includes Customs duty *along with* Excise and VAT, which is less typical for the main pricing structure of domestically supplied fuel compared to Excise and VAT.

Fuel prices in India are now market-linked, meaning they change daily based on international crude oil prices and exchange rates, but the taxes (Excise and VAT) and dealer commission remain fixed per litre or as a percentage unless revised by the government. The tax component (Excise + VAT) often constitutes a significant portion of the final retail price.

5. The Government of India refers to the absolute poverty line in terms

The Government of India refers to the absolute poverty line in terms of

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household savings

household consumption

household investment

household income

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Answer is Wrong!

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UPSC CAPF – 2013

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The correct option is B.

– The official measure of absolute poverty in India is traditionally based on a poverty line defined in terms of minimum consumption expenditure.
– This consumption expenditure is estimated based on the cost of a basket of goods and services deemed essential for meeting minimum nutritional requirements and other basic needs (like clothing, shelter, etc.).
– Various expert groups (like Alagh, Lakdawala, Tendulkar, and Rangarajan Committees) have defined poverty lines based on different methodologies, but all have used per capita or household *consumption expenditure* as the primary metric, not income, savings, or investment.
– Income data is often harder to collect accurately, especially in the informal sector, making consumption expenditure a more reliable indicator for poverty measurement in India.

The Tendulkar Committee (2009) shifted the rural poverty line to a consumption level derived from the urban poverty line basket, moving away from just calorie norms. The Rangarajan Committee (2014) suggested a slightly higher poverty line based on different consumption norms but also used consumption expenditure. The debate continues regarding the appropriate methodology and figures, but the basis remains consumption.

6. Which of the following statements is correct with respect to the conve

Which of the following statements is correct with respect to the convertibility of Indian rupee?

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It is convertible on capital account

It is convertible on current account

It is convertible both on current and capital account

None of the above

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Answer is Wrong!

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UPSC CAPF – 2013

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The correct option is B.

– Convertibility of a currency refers to the freedom with which it can be exchanged for other currencies.
– Convertibility is typically discussed in two parts: current account convertibility and capital account convertibility.
– Current account convertibility allows individuals and businesses to freely convert domestic currency into foreign currency for current account transactions, which include trade in goods and services (exports and imports), remittances, interest payments, and dividends. The Indian Rupee is fully convertible on the current account.
– Capital account convertibility allows individuals and businesses to freely convert domestic currency into foreign currency for capital account transactions, which involve cross-border movement of capital, such as investments (FDI, FPI), loans, and acquisition of assets. The Indian Rupee is *not* fully convertible on the capital account; there are restrictions and regulations imposed by the RBI on various capital transactions. India has moved towards greater capital account convertibility but has not achieved full convertibility due to concerns about potential financial instability.

India achieved full current account convertibility in 1994. The journey towards capital account convertibility has been cautious and gradual, guided by various committees (like the Tarapore Committee). The level of capital account convertibility is often described as ‘partial’ or ‘limited’.

7. Privatization includes

Privatization includes

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sale of public enterprises to private sector

disinvestment of public enterprise equity

participation of private sector in management in public sector enterprises

All of the above

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Answer is Wrong!

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UPSC CAPF – 2013

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The correct option is D.

– Privatization is the process of transferring ownership or control of a public sector enterprise, asset, or service to the private sector.
– Statement A, “sale of public enterprises to private sector,” is a direct form of privatization where the government sells the entire enterprise or a majority stake to private owners.
– Statement B, “disinvestment of public enterprise equity,” refers to the government selling a portion of its shares in a public sector undertaking (PSU) to the private sector or the public. While the government may retain majority control in some disinvestment cases, it is still considered a step towards privatization or marketization by reducing state ownership.
– Statement C, “participation of private sector in management in public sector enterprises,” includes arrangements like management contracts, leases, or joint ventures where the private sector takes significant managerial control, even if full ownership is not transferred. This is also a form of privatization as it reduces direct government management.
– Since all three statements describe different facets or forms of privatization, “All of the above” is the correct answer.

Privatization can be pursued for various reasons, including improving efficiency, reducing the fiscal burden on the government, raising revenue, and promoting competition. The methods vary from complete sale (strategic sale) to minority stake sales (disinvestment) and involving private players in management or service delivery.

8. The rate of inflation in India is measured generally in respect of mov

The rate of inflation in India is measured generally in respect of movement of

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consumer price index

wholesale price index

cost of living index for agricultural labour

money supply

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Answer is Wrong!

This question was previously asked in

UPSC CAPF – 2013

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The correct option is A.

– Inflation in India is measured using several price indices, primarily the Wholesale Price Index (WPI) and the Consumer Price Index (CPI).
– The Wholesale Price Index (WPI) measures price changes at the wholesale level. It was historically the headline inflation measure.
– The Consumer Price Index (CPI) measures price changes at the retail level for a basket of goods and services consumed by households. CPI is considered a better indicator of the cost of living for consumers.
– Since 2014, the Reserve Bank of India (RBI) has adopted CPI (Combined) as the key measure of inflation for monetary policy decisions. Therefore, CPI is now generally considered the headline rate of inflation impacting the general public and policy.
– Cost of living index for agricultural labour (C) is a very specific index, not a general measure of overall inflation.
– Money supply (D) is a factor influencing inflation but not a measure of the rate of inflation itself.

There are different series of CPI, including CPI for Industrial Workers (CPI-IW), Agricultural Labourers (CPI-AL), Rural Labourers (CPI-RL), and the urban, rural, and combined CPI (CPI-U, CPI-R, CPI-C). CPI-C is the series used by RBI and commonly referred to as the headline retail inflation rate.

9. Consider the following statements: 1. Repo rate is the interest rate

Consider the following statements:

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1. Repo rate is the interest rate at which RBI lends to commercial banks for short period.
2. Reverse repo rate is the interest rate which RBI pays to commercial banks on short-term deposits.
3. Gap between repo rate and reverse repo rate has been declining in India in the recent past.

Which of the statements given above is/are not correct?

2 only

3 only

2 and 3

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UPSC CAPF – 2013

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The correct option is C because statement 3 is not correct.

– Statement 1 correctly defines the repo rate as the rate at which the RBI lends money to commercial banks for short periods.
– Statement 2 correctly defines the reverse repo rate as the rate at which the RBI borrows money from commercial banks for short periods, effectively paying interest on their short-term deposits with the RBI.
– Statement 3 claims that the gap between the repo rate and the reverse repo rate has been declining in India in the recent past. The Reserve Bank of India (RBI) manages a policy corridor defined by the Marginal Standing Facility (MSF) rate as the ceiling, the policy repo rate in the middle, and the Standing Deposit Facility (SDF) rate (or the operational reverse repo rate before SDF became the floor) as the floor. While the absolute rates change, the *gap* or width of this corridor (e.g., the difference between the repo rate and the floor rate) is determined by RBI policy and is often kept constant for extended periods (e.g., 25 bps difference between repo and SDF/RRR). Changes to this gap are specific policy decisions, not a continuous decline. Therefore, claiming a continuous decline in the gap “in the recent past” is generally incorrect or not a consistent trend.

The policy corridor width is a tool used by the RBI to manage liquidity and interest rate volatility. For example, the corridor was historically 100 basis points (bps) wide, then narrowed to 50 bps. The introduction of the Standing Deposit Facility (SDF) in 2022 replaced the fixed rate reverse repo as the floor of the corridor, typically set 25 bps below the policy repo rate, with MSF rate 25 bps above, maintaining a 50 bps corridor.

10. Which among the following agencies disbursed maximum credit to the agr

Which among the following agencies disbursed maximum credit to the agricultural sector in India between 2006-07 and 2011-12?

Cooperative banks

Regional rural banks

Commercial banks

Moneylenders

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UPSC CAPF – 2013

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The correct answer is C) Commercial banks. Between 2006-07 and 2011-12, Commercial Banks disbursed the largest share of institutional credit to the agricultural sector in India.

– Institutional credit to the agricultural sector in India is primarily channelled through Cooperative Banks, Regional Rural Banks (RRBs), and Commercial Banks.
– While Cooperative banks historically played a dominant role, their share declined over time, and Commercial Banks, including Public Sector Banks and Private Sector Banks, significantly expanded their lending to agriculture, especially after policy directives emphasizing priority sector lending.
– During the period between 2006-07 and 2011-12, data consistently showed that Commercial Banks were the largest providers of institutional credit to agriculture, followed by Cooperative Banks and then RRBs.
– Moneylenders are non-institutional sources of credit and, while still present, their share in the total credit flow (institutional + non-institutional) declined significantly with the expansion of the institutional credit network. The question likely refers to the major categories of lenders active in the formal financial system.

The government has taken various initiatives to enhance institutional credit flow to agriculture, including setting targets for banks under priority sector lending, implementing schemes like Kisan Credit Card (KCC), and providing interest subvention. The focus has been on increasing both the availability and affordability of credit for farmers.

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