UPSC CAPF Archives

41. The Reserve Bank of India defines narrow money as

The Reserve Bank of India defines narrow money as

[amp_mcq option1=”CU (currency notes + coins) + DD (net demand deposits held by commercial banks)” option2=”CU + DD + saving deposits with post office savings banks” option3=”CU + DD + net time deposits of commercial banks” option4=”CU + DD + net time deposits of commercial banks + total deposits of post offices” correct=”option1″]

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UPSC CAPF – 2018

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The correct answer is A) CU (currency notes + coins) + DD (net demand deposits held by commercial banks).

As per the Reserve Bank of India’s classification (both historical and current definition of M1, with slight variations in scope of ‘Other Deposits’), narrow money (M1) primarily consists of currency with the public and demand deposits with the banking system. Option A accurately reflects these main components: CU (Currency with Public) and DD (Demand Deposits with commercial banks). “Net” demand deposits exclude inter-bank deposits which is appropriate.

RBI uses four measures of money supply: M1, M2, M3, and M4.
M1 = Currency with the Public + Demand deposits with the Banking System + ‘Other’ Deposits with RBI.
M2 = M1 + Savings deposits of post office savings banks.
M3 = M1 + Net time deposits of commercial banks. (This is Broad Money)
M4 = M3 + All deposits with post office savings banks (excluding National Savings Certificates).
Option A aligns with the core components of M1.

42. In National Income (NI) accounts, Personal Income (PI) is defined as

In National Income (NI) accounts, Personal Income (PI) is defined as

[amp_mcq option1=”NI – undistributed profits – net interest payments made by households – corporate tax + transfer payments to the households from the government and firms” option2=”NI – undistributed profits – corporate tax + transfer payments to the households from the government and firms” option3=”undistributed profits – net interest payments made by households + transfer payments to the households from the government and firms” option4=”undistributed profits – net interest payments made by households – corporate tax” correct=”option2″]

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The correct answer is B) NI – undistributed profits – corporate tax + transfer payments to the households from the government and firms.

Personal Income (PI) is the income received by households and non-profit institutions serving households before the payment of personal income taxes. It is derived from National Income (NI) by subtracting components of NI that are not received by households and adding income received by households that is not earned in the current production process (transfer payments). The standard formula is approximately: PI = NI – Corporate Income Tax – Undistributed Corporate Profits – Social Security Contributions + Transfer Payments. Option B closely matches this formula, excluding Social Security Contributions, which may not be included in all simplified representations or options. Option A includes “net interest payments made by households” as a subtraction, which is not standard in deriving PI from NI; interest paid by households is a disposition of income, not a deduction from earned income components of NI.

National Income is the total income earned by the factors of production in a country during a period. Personal Income represents the actual income available to individuals and households before direct taxes. Disposable Personal Income is PI minus personal income taxes.

43. Which one of the following is not a characteristic feature of the Indi

Which one of the following is not a characteristic feature of the Indian Independence Act, 1947?

[amp_mcq option1=”The Dominion of India got the residuary territory of India, excluding the provinces of Sind, Baluchistan, West Punjab, East Bengal and NWFP.” option2=”The Act sought to lay down a Constitution by the Legislative will of the British Parliament.” option3=”The Act proposed to set up two independent Dominions.” option4=”The Constituent Assembly of each Dominion was to have unlimited power to frame and adopt any Constitution.” correct=”option2″]

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The correct answer is B) The Act sought to lay down a Constitution by the Legislative will of the British Parliament.

Statement B is incorrect. The Indian Independence Act, 1947, did not lay down the Constitution for either India or Pakistan. Instead, it granted the respective Constituent Assemblies of the two Dominions full power to frame and adopt any Constitution they deemed fit. The Act merely provided the legal framework for the transfer of power and the creation of the Dominions.

A) is correct. The Act partitioned British India, designating the specified provinces (Sind, Baluchistan, West Punjab, East Bengal, NWFP, and parts of Assam) to Pakistan, and the rest constituting the Dominion of India.
C) is correct. The Act provided for the creation of two independent Dominions: India and Pakistan.
D) is correct. Section 8 of the Act explicitly stated that the Constituent Assembly of each Dominion was to have unlimited power to frame and adopt any Constitution and to repeal any existing British law, including the Independence Act itself.

44. Which one of the following statements relating to the power of the Pre

Which one of the following statements relating to the power of the President of India to grant pardon is not correct?

[amp_mcq option1=”The President has the power to grant pardon where punishment or sentence is by a Court Martial.” option2=”The President can grant pardon in all cases where the sentence is a sentence of death.” option3=”The Court’s power of judicial review is very limited in relation to the decision of the President on mercy petition.” option4=”The power to grant pardon by the President is the power that the sovereign never exercises against its own judicial mandate.” correct=”option4″]

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The correct answer is D) The power to grant pardon by the President is the power that the sovereign never exercises against its own judicial mandate.

Statement D is incorrect. The power to grant pardon is an executive power exercised by the sovereign (represented by the President) that acts upon, and can override or modify, a sentence pronounced by the judiciary (another arm of the sovereign). In this sense, it is exercised “against” the full execution of the judicial mandate (the sentence) to provide relief or clemency. It doesn’t challenge the judiciary’s authority to deliver the verdict and sentence, but it acts as a check on the severity or appropriateness of the punishment in certain cases.

A) is correct as Article 72 of the Constitution grants the President power to grant pardon in cases where the punishment is by a Court Martial.
B) is correct as Article 72 also grants the President power to grant pardon in all cases where the sentence is a sentence of death.
C) is generally correct. The Supreme Court has held that the President’s power under Article 72 is subject to judicial review, but the grounds for review are very limited (e.g., arbitrariness, malafide intent, extraneous considerations, discrimination). Courts do not review the appropriateness of the sentence or substitute their own judgment for the President’s.

45. Depiction of the descent of the river Ganga from heaven in the form of

Depiction of the descent of the river Ganga from heaven in the form of relief sculpture on rock is at

[amp_mcq option1=”Ellora” option2=”Mahabalipuram” option3=”Sanchi” option4=”Amaravati” correct=”option2″]

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The correct answer is B) Mahabalipuram.

The depiction of the descent of the river Ganga from heaven is a famous relief sculpture found on a large rock face at Mahabalipuram (Mamallapuram) in Tamil Nadu. This magnificent relief, sometimes referred to as ‘Arjuna’s Penance’ or ‘Descent of the Ganges’, is a significant example of Pallava art from the 7th century. It illustrates a mythological tale involving Shiva, Bhagiratha, and the Ganga river.

Ellora is known for its rock-cut caves blending Hindu, Buddhist, and Jain art. Sanchi is famous for its Great Stupa and Buddhist art. Amaravati is known for its ancient Buddhist stupa and unique style of sculpture. While all are important historical sites, the specific relief depicting the Ganga’s descent is most prominently associated with Mahabalipuram.

46. Which of the following statements about Bodhisattvas is/are correct?

Which of the following statements about Bodhisattvas is/are correct?

1. They were perceived as deeply compassionate beings who accumulated merit through their efforts.
2. They made attempt to attain Nibbana.

Select the correct answer using the code given below.

[amp_mcq option1=”1 only” option2=”2 only” option3=”Both 1 and 2″ option4=”Neither 1 nor 2″ correct=”option3″]

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The correct answer is C) Both 1 and 2.

Statement 1: They were perceived as deeply compassionate beings who accumulated merit through their efforts. This statement is correct and accurately describes a core aspect of the Bodhisattva concept in Mahayana Buddhism. Bodhisattvas are characterized by immense compassion (karuṇā) and work diligently to accumulate merit (puṇya) and wisdom (prajñā) to help others.
Statement 2: They made attempt to attain Nibbana. This statement is also considered correct. The ultimate goal of a Bodhisattva is to become a Buddha. Buddhahood is a state of complete enlightenment and liberation, which includes the attainment of Nibbana (Nirvana). While Bodhisattvas vow to postpone their own final Nibbana until all beings are liberated, their path is inherently one towards achieving the state of perfect liberation (Buddhahood), which encompasses Nibbana. They are working towards the state of Nibbana, not just for themselves, but for the benefit of all.

In Mahayana Buddhism, the Bodhisattva ideal is contrasted with the Arahant ideal of Theravada Buddhism. An Arahant seeks personal liberation (Nibbana). A Bodhisattva seeks Buddhahood to liberate all sentient beings, deliberately delaying their own final Nibbana out of compassion. However, achieving Buddhahood necessarily involves realizing Nibbana in its fullest sense. So, the attempt to attain Nibbana is fundamental to their path, albeit with a universal scope and a commitment to guiding others first.

47. Who among the following was Buddha’s foster mother?

Who among the following was Buddha’s foster mother?

[amp_mcq option1=”Purna” option2=”Gajalakshmi” option3=”Maya” option4=”Mahapajapati Gotami” correct=”option4″]

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The correct answer is D) Mahapajapati Gotami.

Siddhartha Gautama (the Buddha) was born to Queen Maya. However, his mother died seven days after his birth. He was then raised by his maternal aunt (his mother’s younger sister) Mahapajapati Gotami, who also married his father, King Suddhodana. Therefore, Mahapajapati Gotami was his foster mother.

Mahapajapati Gotami later became the first woman to be ordained as a Buddhist nun (bhikkhuni), with the permission and encouragement of the Buddha. Maya was his birth mother. Purna and Gajalakshmi are not directly related to Buddha’s immediate family in this context.

48. In May 2018, which one of the following countries has relocated its em

In May 2018, which one of the following countries has relocated its embassy in Israel from Tel Aviv to Jerusalem?

[amp_mcq option1=”Iran” option2=”Germany” option3=”USA” option4=”Turkey” correct=”option3″]

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The correct answer is C) USA.

In a significant and controversial move, the United States, under President Donald Trump, recognized Jerusalem as the capital of Israel and relocated its embassy from Tel Aviv to Jerusalem. The new embassy officially opened on May 14, 2018, coinciding with the 70th anniversary of the establishment of the state of Israel. This decision was contrary to the long-standing international consensus that the status of Jerusalem should be resolved through negotiations.

Most countries maintain their embassies in Tel Aviv, pending a final resolution of the Israeli-Palestinian conflict, as both Israelis and Palestinians claim Jerusalem as their capital. Following the US decision, a few other countries have also relocated their embassies to Jerusalem or announced plans to do so, but the US was the first major country to do so in 2018.

49. In May 2018, bus service between which two places of India and Nepal w

In May 2018, bus service between which two places of India and Nepal was launched?

[amp_mcq option1=”Nalanda and Lumbini” option2=”Gaya and Kathmandu” option3=”Varanasi and Vaktapur” option4=”Ayodhya and Janakpur” correct=”option4″]

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The correct answer is D) Ayodhya and Janakpur.

In May 2018, Prime Minister Narendra Modi and his Nepali counterpart K.P. Oli jointly flagged off a direct bus service between Ayodhya in India and Janakpur in Nepal. This bus service is part of the “Ramayana Circuit” initiative, connecting places associated with the epic Ramayana in both countries. Ayodhya is believed to be the birthplace of Lord Rama, while Janakpur is the birthplace of Sita and where Rama married her.

The launch of this bus service aimed to boost tourism and connectivity between the two countries, specifically focusing on pilgrimage sites related to the Ramayana. Other places listed are also important but this specific bus service launched in May 2018 was between Ayodhya and Janakpur. Nalanda is a historical site in India, Lumbini in Nepal is Buddha’s birthplace. Gaya in India is a pilgrimage site, Kathmandu is Nepal’s capital. Varanasi is a holy city in India, Vaktapur (Bhaktapur) is a city in Nepal.

50. In May 2018, who among the following was elected as the Prime Minister

In May 2018, who among the following was elected as the Prime Minister of Malaysia at the age of 92?

[amp_mcq option1=”Siti Hasmah Ali” option2=”Najib Razak” option3=”Mahathir Mohamad” option4=”Anwar Ibrahim” correct=”option3″]

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The correct answer is C) Mahathir Mohamad.

In the Malaysian general election held in May 2018, the Pakatan Harapan coalition, led by former Prime Minister Mahathir Mohamad, won a surprise victory. Mahathir Mohamad was subsequently sworn in as the Prime Minister of Malaysia on May 10, 2018, at the age of 92, making him the world’s oldest elected head of government at that time.

Mahathir Mohamad had previously served as Prime Minister from 1981 to 2003. Najib Razak was the incumbent Prime Minister seeking re-election. Anwar Ibrahim is a prominent political figure who was allied with Mahathir in 2018, but he became Prime Minister later in 2022. Siti Hasmah Ali is Mahathir Mohamad’s wife.