UPSC CDS-2

41. Which of the following is not included in the Capital Account of the

Which of the following is not included in the Capital Account of the Balance of Payments of a country ?

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Foreign Direct Investment
Commercial Borrowing
Invisibles
External Assistance
This question was previously asked in
UPSC CDS-2 – 2024
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The correct option is C. The question asks which item is *not* included in the Capital Account of a country’s Balance of Payments (BoP).
The Balance of Payments (BoP) is a summary of all economic transactions between a country and the rest of the world over a period of time. It is divided into two main accounts: the Current Account and the Capital Account (sometimes including a Financial Account).
– The **Current Account** records trade in goods (visibles), services (invisibles), income (investment income, compensation of employees), and current transfers (remittances, grants). “Invisibles” refers to services, income, and current transfers.
– The **Capital Account** (or Capital and Financial Account combined) records capital transfers and transactions involving financial assets and liabilities. This includes Foreign Direct Investment (FDI), Foreign Portfolio Investment (FPI), loans (commercial borrowing, external assistance), and banking capital.
Options A (Foreign Direct Investment), B (Commercial Borrowing), and D (External Assistance) are all types of financial transactions or capital flows that are recorded in the Capital Account (or Financial Account, which is part of the broader Capital and Financial Account structure in modern BoP presentations). Option C (Invisibles) is a component of the Current Account, specifically related to trade in services, income, and current transfers. Therefore, “Invisibles” are not included in the Capital Account.

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42. Which one among the following was the focus of the Twelfth Five-Year P

Which one among the following was the focus of the Twelfth Five-Year Plan ?

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Sustainable and Inclusive Growth
Social Justice and Equality
Food, Work and Productivity
Attainment of Self-reliance
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UPSC CDS-2 – 2024
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The correct option is A. The question asks for the focus of the Twelfth Five-Year Plan (2012-2017).
The official theme and focus of the Twelfth Five-Year Plan of India (2012-2017) was “Faster, More Inclusive and Sustainable Growth”. Option A, “Sustainable and Inclusive Growth”, accurately captures the core elements of this focus.
Option B, “Social Justice and Equality”, is a broad goal integrated into various plans but was not the defining theme of the Twelfth Plan. Option C, “Food, Work and Productivity”, was a key focus of the Seventh Five-Year Plan (1985-1990). Option D, “Attainment of Self-reliance”, was a prominent objective in earlier plans, particularly the Fifth Five-Year Plan (1974-1979). The Twelfth Plan specifically aimed to accelerate the growth rate, ensure its benefits reached all sections of society (inclusivity), and ensure the growth path was environmentally sound and resource-efficient (sustainability).

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43. Long-Term Low Emissions Development Strategy envisions: a transition

Long-Term Low Emissions Development Strategy envisions:

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  • a transition from fossil fuels in a just, smooth, sustainable manner.
  • increased use of bio-fuels.
  • climate resilient urban development.
  • financing of sustainable development through Green Bonds.

Select the answer using the code given below :

1 and 2 only
1, 2 and 3
2 and 4 only
1, 3 and 4
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UPSC CDS-2 – 2024
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The correct option is D, indicating that statements 1, 3, and 4 are correct regarding India’s Long-Term Low Emissions Development Strategy (LT-LEDS). The question asks about the vision envisioned by the strategy.
India submitted its LT-LEDS to the UNFCCC in November 2022. The strategy is guided by principles including climate justice, sustainable lifestyles (LiFE), equity, and common but differentiated responsibilities. Key components envisioned in the strategy include:
1. **Transition from fossil fuels:** A just, smooth, and sustainable transition is explicitly mentioned as a guiding principle and strategic approach.
3. **Climate resilient urban development:** Promoting low-carbon development in urban areas is identified as a strategic pillar. This involves shifting to energy-efficient buildings, sustainable transport, and waste management.
4. **Financing sustainable development:** Mobilizing climate finance is a crucial enabler. The strategy highlights the importance of domestic and international finance, including mechanisms like Green Bonds, to support the transition.
Statement 2, “increased use of bio-fuels,” is indeed part of the strategy, specifically under the pillar of promoting low-carbon transition in transport and energy. However, options provided suggest a combination of three statements. Statements 1, 3, and 4 represent broader strategic areas (overall transition principle, urban development, financing) compared to bio-fuels, which is a specific fuel type within the energy/transport transition. Based on the structure of common summaries of the LT-LEDS pillars, 1, 3, and 4 are frequently listed as distinct strategic areas or principles, making option D the most appropriate choice among the given combinations. Other pillars include promoting energy efficiency, increasing non-fossil fuel-based electricity generation, enhancing forest cover, and promoting the LiFE movement.

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44. Consider the following statements: An additional spending by the Gov

Consider the following statements:

  • An additional spending by the Government of ₹ X is likely to have less impact on income than an additional transfer of ₹ X to households.
  • An additional spending by the Government of ₹ X is likely to have less impact on income if it is not accompanied by an expansion in money supply.

Which of the statements given above is/are correct ?

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1 only
2 only
Both 1 and 2
Neither 1 nor 2
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Statement 1 is incorrect. In a simple Keynesian model, direct government spending (G) on goods and services has a larger multiplier effect on income than transfer payments (Tr) to households. The government spending multiplier is 1/(1-MPC), while the transfer payment multiplier is MPC/(1-MPC), where MPC is the marginal propensity to consume (between 0 and 1). Since MPC < 1, 1 > MPC, so 1/(1-MPC) > MPC/(1-MPC). This means an additional spending of ₹ X by the government is likely to have a *greater* impact on income than an additional transfer of ₹ X, because households might save a portion of the transfer, whereas government spending is assumed to be fully injected into the economy as demand for goods/services.

Statement 2 is correct. Government spending can be financed in various ways, including taxation, borrowing from the public, or by increasing the money supply (e.g., central bank purchasing government debt). If the government spending is financed by borrowing from the public without an increase in money supply, it can lead to increased demand for loanable funds, potentially raising interest rates. Higher interest rates can ‘crowd out’ private investment, thus reducing the overall positive impact of government spending on income. If the spending is accompanied by an expansion in money supply, it can mitigate or avoid this crowding out effect, potentially leading to a larger overall impact on income. Therefore, spending not accompanied by monetary expansion is likely to have a *less* impact than otherwise.

– Government spending typically has a higher multiplier than transfers.
– Government spending can lead to crowding out if not accommodated by monetary policy.
The actual impact of fiscal policy (spending and transfers) on income is complex and depends on various factors beyond simple multiplier models, including expectations, supply-side responses, and the specific nature of the spending or transfer.

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45. Consider the following statements: A rupee Vostro account is an acco

Consider the following statements:

  • A rupee Vostro account is an account that an Indian bank holds for a foreign bank in the domestic currency (rupee) to enable domestic banks to provide international banking services.
  • Insurance density, i.e., average insurance premium per capita does not fully capture the financing gap in the event of a premature death because most of the insurance products sold in India are savings-linked with a small component of protection.

Which of the statements given above is/are correct ?

1 only
2 only
Both 1 and 2
Neither 1 nor 2
This question was previously asked in
UPSC CDS-2 – 2024
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Statement 1 is correct. A Vostro account is an account that one bank holds on behalf of another bank. A Rupee Vostro account, specifically, is an account maintained by an Indian bank for a foreign bank in Indian Rupees. This facilitates international transactions and trade settlements in the Indian currency, allowing domestic banks to handle international banking services for their foreign counterparts and customers.

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Statement 2 is correct. Insurance density (average premium per capita) measures the penetration of insurance based on premium collection. However, in India, a significant portion of insurance policies sold are traditional plans that combine savings/investment with a relatively small life cover (protection component). While these policies contribute to premium collection and thus increase insurance density, the sum assured in case of the policyholder’s premature death might not be sufficient to cover the financial needs of the family, leaving a significant “financing gap” despite a seemingly higher insurance density figure. Therefore, insurance density alone may not fully reflect the adequacy of protection cover.

– A Rupee Vostro account is an INR account held by an Indian bank for a foreign bank.
– Insurance density calculation may not fully reflect the adequacy of life cover due to the nature of policies sold in India (savings-linked).
Vostro accounts are part of correspondent banking relationships between banks in different countries. Insurance density is often used as an indicator of insurance market development, alongside insurance penetration (premium as a percentage of GDP).

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46. With reference to the continent of ‘Antarctica’ which of the following

With reference to the continent of ‘Antarctica’ which of the following statements are correct ?

  • 1. It is larger than Europe in terms of area.
  • 2. It has the highest average elevation as compared to all other continents.
  • 3. Mt. Ross is the highest peak of this continent.
  • 4. Waters of the Southern Ocean (West Wind Drift) move in an anticlockwise direction around it.

Select the answer using the code given below :

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1 and 2 only
1 and 3 only
1, 2 and 3
2, 3 and 4
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UPSC CDS-2 – 2024
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Statement 1 is correct. Antarctica covers an area of approximately 14.2 million square kilometers (including ice shelves), making it the fifth-largest continent. Europe’s area is about 10.18 million square kilometers. Thus, Antarctica is larger than Europe.

Statement 2 is correct. Due to the immense ice sheet covering most of the landmass, Antarctica has the highest average elevation of any continent, estimated to be around 2,500 meters above sea level. This is significantly higher than the average elevation of other continents.

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Statement 3 is incorrect. While Mount Erebus (often associated with Mount Ross on Ross Island) is a prominent and active volcano in Antarctica, it is not the highest peak of the continent. The highest peak is Vinson Massif, part of the Ellsworth Mountains, with an elevation of 4,892 meters.

Statement 4 is incorrect. The Southern Ocean waters around Antarctica are dominated by the Antarctic Circumpolar Current (ACC), also known as the West Wind Drift. This current flows predominantly from west to east around the continent, driven by the prevailing westerly winds. This flow is clockwise when viewed from above the South Pole or from west to east on a standard map projection, not anticlockwise.

– Antarctica is larger than Europe.
– Antarctica has the highest average elevation due to its ice sheet.
– Vinson Massif is the highest peak, not Mt. Ross (Mt. Erebus).
– The Antarctic Circumpolar Current flows from west to east (clockwise when viewed from above the South Pole).
Antarctica is the coldest, driest, and windiest continent. It is also the continent with the highest average elevation. Around 98% of Antarctica is covered by ice.

47. Which of the following statements regarding River Rhine is/are correct

Which of the following statements regarding River Rhine is/are correct ?

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  • 1. Rhine River is an important pathway for industrial activity in northern Germany.
  • 2. Port of Rotterdam is located at the mouth of the Rhine River.

Select the answer using the code given below :

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1 only
2 only
Both 1 and 2
Neither 1 nor 2
This question was previously asked in
UPSC CDS-2 – 2024
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Statement 1 is correct. The River Rhine is a crucial waterway for industrial transport in Germany, particularly connecting the industrial heartland in the Ruhr region (part of Western/North-Western Germany) to the North Sea. It serves as a major route for transporting raw materials and finished goods. While “northern Germany” might not be the most precise description (Western Germany is key), the industrial importance of the Rhine extends into areas considered northern parts of western Germany.

Statement 2 is correct. The Port of Rotterdam in the Netherlands is located at the delta of the Rhine and Meuse rivers, where they flow into the North Sea. It is one of the busiest ports in the world and serves as a major gateway for goods transported via the Rhine waterway into the European interior, especially Germany.

– The Rhine is a vital inland waterway for industry in Germany.
– The Port of Rotterdam is situated at the mouth of the Rhine River delta.
The Rhine flows through Switzerland, Liechtenstein, Austria, Germany, France, and the Netherlands. It is one of the longest and most important rivers in Europe for navigation and trade.

48. Which of the following peaks are situated in India ? 1. Dhaulagiri

Which of the following peaks are situated in India ?

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  • 1. Dhaulagiri
  • 2. Namcha Barwa
  • 3. Kamet
  • 4. Makalu

Select the answer using the code given below :

1, 2 and 3
1 and 3 only
2 and 3 only
2 and 4 only
This question was previously asked in
UPSC CDS-2 – 2024
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Let’s examine the location of each peak:
1. Dhaulagiri: This is a mountain range in Nepal, part of the Himalayas. The highest peak, Dhaulagiri I, is entirely within Nepal.
2. Namcha Barwa: This peak is located in Tibet (China), in the eastern Himalayas, very close to the border with Arunachal Pradesh in India. While geographically associated with the eastern end of the Himalayas near India, the peak itself is situated in China. However, given the options, it’s possible the question considers peaks very close to the Indian border or in the broader Indian Himalayan region.
3. Kamet: Located in the Garhwal region of Uttarakhand, India. It is the third highest peak in India (after Kangchenjunga, depending on how contested peaks are counted, and Nanda Devi).
4. Makalu: Located on the border between Nepal and China (Tibet Autonomous Region). It is not situated entirely in India.

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Based on strict geographical location, only Kamet (3) is entirely within India among the options listed. However, none of the options lists only 3. Option C lists 2 and 3. This implies that Namcha Barwa (2) is considered “situated in India” in the context of this question, perhaps due to its proximity to the border and its association with the Eastern Himalayas near India. Assuming this broader interpretation for Namcha Barwa, then both 2 and 3 are considered situated in or relevant to India.

– Kamet is definitely located in Uttarakhand, India.
– Dhaulagiri is in Nepal.
– Makalu is on the Nepal/China border.
– Namcha Barwa is in Tibet (China) but very near the Indian border.
– Given the options, the question likely includes Namcha Barwa due to its location near the Indian Himalayan range.
The highest peak considered to be entirely within India is Nanda Devi. Kangchenjunga is the highest peak of India, located on the border between India and Nepal.

49. Consider the following statements : 1. Bajra is predominantly grown

Consider the following statements :

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  • 1. Bajra is predominantly grown in states like Rajasthan, Uttar Pradesh and Gujarat, while Ragi is mainly cultivated in Karnataka and Tamil Nadu.
  • 2. Bajra grows well in sandy and shallow black soils, whereas red and shallow black soil is suited for Ragi.

With regard to the statements given above, which of the following is correct ?

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Both the statements are correct and statement 2 is the correct explanation of statement 1.
Both the statements are correct, but statement 2 is not the correct explanation of statement 1.
Statement 1 is correct, but statement 2 is false.
Statement 1 is false, but statement 2 is correct.
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Statement 1 is correct. Bajra (Pearl Millet) is primarily grown in the drier regions of India, with Rajasthan being the largest producer, followed by states like Uttar Pradesh, Haryana, Maharashtra, and Gujarat. Ragi (Finger Millet) is another important millet, with Karnataka being the leading producer, followed by Tamil Nadu, Andhra Pradesh, Odisha, and Bihar. The statement accurately reflects the main producing states for both crops.

Statement 2 is correct. Bajra is well-adapted to arid and semi-arid conditions and thrives in sandy soils, light alluvial soil, and shallow black soils, which are prevalent in its major growing regions. Ragi is a hardy crop that can grow in a variety of soils, including red, black, sandy, loamy, and shallow lateritic soils. The description of suitable soil types aligns with the general characteristics and distribution of these millets.

Relationship between statements: The soil and climatic conditions (described in Statement 2) are key factors determining where specific crops are predominantly cultivated (described in Statement 1). The prevalence of sandy and shallow black soils in states like Rajasthan and Gujarat makes them suitable for Bajra cultivation, while the presence of red and shallow black soils in states like Karnataka and Tamil Nadu favors Ragi cultivation. Thus, Statement 2 provides a correct explanation for the distribution patterns mentioned in Statement 1.

– Statement 1 correctly identifies major growing states for Bajra and Ragi.
– Statement 2 correctly identifies suitable soil types for Bajra and Ragi.
– Soil type is a major factor influencing crop distribution.
Both Bajra and Ragi are important coarse cereals or millets known for their nutritional value and resilience in diverse agro-climatic conditions, especially in rainfed areas.

50. Which peninsular river has a tributary named ‘Kabini’ ?

Which peninsular river has a tributary named ‘Kabini’ ?

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Godavari
Krishna
Mahanadi
Kaveri
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UPSC CDS-2 – 2024
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The Kabini River (also known as Kapila) is a significant tributary of the Kaveri (Cauvery) River in Southern India. It originates in the Wayanad district of Kerala and flows eastwards into Karnataka, eventually joining the Kaveri River near Tirumakudal Narasipura in Mysore district.
– Kabini River is a tributary.
– It is a tributary of the Kaveri River.
The other rivers listed are:
– Godavari: Major tributaries include Pravara, Purna, Manjra, Penganga, Wardha, Wainganga, Indravati, Sabari, and Pranhita.
– Krishna: Major tributaries include Bhima, Tungabhadra, Ghataprabha, Malaprabha, Musi, Dindi, Koyna, and Vedavathi.
– Mahanadi: Major tributaries include Seonath, Hasdeo, Mand, Ib, Jonk, Tel.

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