2013

21. In the context of Indian economy, ‘Open Market Operations’ refers to

In the context of Indian economy, ‘Open Market Operations’ refers to

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borrowing by scheduled banks from the RBI
lending by commercial banks to industry and trade
purchase and sale of government securities by the RBI
None of the above
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In the context of the Indian economy, ‘Open Market Operations’ (OMO) refers to the purchase and sale of government securities by the Reserve Bank of India (RBI) in the open market.
OMO is a quantitative monetary policy tool used by the central bank to manage liquidity in the economy. When the RBI buys government securities from the market, it injects liquidity (money supply increases). When it sells government securities, it absorbs liquidity (money supply decreases).
OMO is a key instrument used by the RBI to influence interest rates and control inflation. Other monetary policy tools include the Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Repo Rate, Reverse Repo Rate, Bank Rate, and Marginal Standing Facility (MSF).

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22. Consider the following liquid assets : Demand deposits with the bank

Consider the following liquid assets :

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  1. Demand deposits with the banks
  2. Time deposits with the banks
  3. Savings deposits with the banks
  4. Currency

The correct sequence of these assets in the decreasing order of liquidity is

1-4-3-2
4-3-2-1
2-3-1-4
4-1-3-2
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The correct sequence of the given liquid assets in decreasing order of liquidity is Currency, followed by Demand deposits, then Savings deposits, and finally Time deposits. This corresponds to the order 4-1-3-2.
Liquidity refers to the ease with which an asset can be converted into cash without affecting its price. Currency is the most liquid asset as it is readily spendable cash. Demand deposits (like current accounts) are highly liquid as funds can be withdrawn on demand. Savings deposits are generally less liquid than demand deposits due to possible limits on withdrawals, though in practice, they are often very liquid. Time deposits (like Fixed Deposits) are the least liquid among these options, as premature withdrawal incurs penalties.
This hierarchy of liquidity is fundamental to understanding monetary aggregates (like M1, M2, M3, M4) where assets are grouped based on their liquidity levels. M1 typically includes currency and demand deposits, being the most liquid forms of money.

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23. Consider the following pairs : Tribe : State 1. Limboo (Limbu) : Sik

Consider the following pairs :
Tribe : State

  • 1. Limboo (Limbu) : Sikkim
  • 2. Karbi : Himachal Pradesh
  • 3. Dongaria Kondh : Odisha
  • 4. Bonda : Tamil Nadu

Which of the above pairs are correctly matched?

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1 and 3 only
2 and 4 only
1, 3 and 4 only
1, 2, 3 and 4
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The correctly matched pairs are 1 (Limboo in Sikkim) and 3 (Dongaria Kondh in Odisha). Pair 2 (Karbi in Himachal Pradesh) and Pair 4 (Bonda in Tamil Nadu) are incorrectly matched.
Limboo (Limbu) people are native to the Himalayan region, including Sikkim, Nepal, and parts of India (West Bengal, Assam). Karbi people are primarily concentrated in the Karbi Anglong district of Assam and also found in Meghalaya. Dongaria Kondh are a PVTG (Particularly Vulnerable Tribal Group) residing in the Niyamgiri hills of Odisha. Bonda, another PVTG, inhabit the remote hilly areas of the Malkangiri district of Odisha.
Knowledge of the geographical distribution of major tribes across India is important for general awareness, particularly for regions with high tribal populations. The classification of tribal groups often considers factors like language, culture, location, and vulnerability status (like PVTGs).

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24. During a thunderstorm, the thunder in the skies is produced by the m

During a thunderstorm, the thunder in the skies is produced by the

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  • meeting of cumulonimbus clouds in the sky
  • lightning that separates the nimbus clouds
  • violent upward movement of air and water particles

Select the correct answer using the codes given below.

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1 only
2 and 3
1 and 3
None of the above produces the thunder
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Thunder is produced by the rapid expansion of air heated by lightning. Option 2 mentions lightning, which is the direct cause. Option 3, the violent upward movement of air and water particles (convection), is a necessary process within a thunderstorm that leads to charge separation and thus lightning. While not the direct producer of the *sound*, it is essential for the occurrence of lightning, which in turn produces thunder. Considering the options, 2 and 3 together represent the phenomena directly linked to the generation of thunder within a thunderstorm.
Lightning is an electrical discharge within a thunderstorm cloud or between the cloud and the ground. The intense heat from the lightning channel causes the surrounding air to expand rapidly, creating a shockwave that we hear as thunder. The violent upward movement of air and water particles (updrafts) within cumulonimbus clouds leads to the collision of particles, charge separation, and eventually the buildup of electrical potential that results in lightning. Thus, updrafts are integral to the process leading to lightning and, consequently, thunder.
Statement 1, the meeting of cumulonimbus clouds, is not a direct cause of thunder. Cumulonimbus clouds are the type of clouds where thunderstorms occur, but their meeting doesn’t produce the sound. While statement 2’s phrasing “lightning that separates the nimbus clouds” is awkward, it points to lightning as the cause. Statement 3 describes the process of convection which is a prerequisite for severe thunderstorms and lightning. In the context of MCQ options, 2 and 3 are the most relevant phenomena listed that lead to thunder.

25. With reference to National Legal Services Authority, consider the foll

With reference to National Legal Services Authority, consider the following statements:

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  • Its objective is to provide free and competent legal services to the weaker sections of the society on the basis of equal opportunity.
  • It issues guidelines for the State Legal Services Authorities to implement the legal programmes and schemes throughout the country.

Which of the statements given above is/are correct?

1 only
2 only
Both 1 and 2
Neither 1 nor 2
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Both statement 1 and statement 2 are correct regarding the National Legal Services Authority (NALSA).
NALSA’s primary objective is to provide free and competent legal services to eligible weaker sections of society to ensure that opportunities for securing justice are not denied to any citizen by reason of economic or other disabilities. It is the apex body for legal aid services in India. NALSA also lays down policies and principles for making legal services available and frames the most effective and economical schemes for legal services.
NALSA is constituted under the Legal Services Authorities Act, 1987. The Chief Justice of India is the Patron-in-Chief, and a sitting or retired Supreme Court judge is the Executive Chairman. NALSA supervises and evaluates the implementation of legal aid programs and schemes conducted by the State Legal Services Authorities (SLSAs). Statement 2 correctly describes one of the functions of NALSA, which is to issue guidelines to SLSAs for implementing legal aid schemes.

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26. Consider the following statements: The Chairman and the Deputy Chair

Consider the following statements:

  • The Chairman and the Deputy Chairman of the Rajya Sabha are not the members of that House.
  • While the nominated members of the two Houses of the Parliament have no voting right in the presidential election, they have the right to vote in the election of the Vice President.

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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The correct answer is B) 2 only. Statement 1 is incorrect, and statement 2 is correct.
Statement 1 is incorrect. The Chairman of the Rajya Sabha is the Vice-President of India (Article 64), who is *not* a member of the Rajya Sabha. However, the Deputy Chairman of the Rajya Sabha is elected from amongst the *members* of the Rajya Sabha (Article 89). Thus, the Deputy Chairman *is* a member of the House. Statement 2 is correct. In the election of the President, only elected members of Parliament (Lok Sabha and Rajya Sabha) and the elected members of the Legislative Assemblies of the States and Union Territories vote (Article 54). Nominated members do not vote. However, in the election of the Vice-President, the Electoral College consists of members of both Houses of Parliament (Lok Sabha and Rajya Sabha), which includes both elected and nominated members (Article 66).
The Vice-President, while not a member of the Rajya Sabha, can participate in its proceedings (except voting, unless there is a tie). The Deputy Chairman performs the duties of the Chairman in case of absence or when the Vice-President acts as President. The different electoral colleges for President and Vice-President are specified in the Constitution.

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27. Consider the following statements: National Development Council is a

Consider the following statements:

  • National Development Council is an organ of the Planning Commission.
  • The Economic and Social Planning is kept in the Concurrent List in the Constitution of India.
  • The Constitution of India prescribes that Panchayats should be assigned the task of preparation of plans for economic development and social justice.

Which of the statements given above is/are correct?

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1 only
2 and 3 only
1 and 3 only
1, 2 and 3
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The correct answer is B) 2 and 3 only. Statement 1 is incorrect, while statements 2 and 3 are correct.
Statement 1 is incorrect. The National Development Council (NDC) was an apex body that guided the Planning Commission and approved its final plans. It was established by an executive resolution in 1952 and comprised the Prime Minister (Chairman), Chief Ministers of all states, Union Cabinet Ministers, and members of the Planning Commission. It was not an organ *of* the Planning Commission but rather a body overseeing it. (Note: Both Planning Commission and NDC have been replaced by NITI Aayog since 2015). Statement 2 is correct. “Economic and Social Planning” is listed as Entry 20 in List III (Concurrent List) of the Seventh Schedule to the Constitution, meaning both the Union and State governments can legislate on this subject. Statement 3 is correct. Article 243G of the Constitution (introduced by the 73rd Amendment) mandates that state legislatures may endow Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government, including the preparation of plans for economic development and social justice. Schedule Eleven lists subjects for which Panchayats are responsible for planning and implementation.
The inclusion of Economic and Social Planning in the Concurrent List reflects India’s approach to planned development involving both central and state participation. The 73rd and 74th Constitutional Amendments (1992) constitutionalized local self-government bodies (Panchayats and Municipalities) and assigned them specific responsibilities, including planning for development at the local level.

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28. Consider the following statements: 1. The Council of Ministers in th

Consider the following statements:

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  • 1. The Council of Ministers in the Centre shall be collectively responsible to the Parliament.
  • 2. The Union Ministers shall hold office during the pleasure of the President of India.
  • 3. The Prime Minister shall communicate to the President the proposals for legislation.

Which of the statements given above is/are correct?

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1 only
2 and 3 only
1 and 3 only
1, 2 and 3
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The correct answer is B) 2 and 3 only. Statement 1 is incorrect, while statements 2 and 3 are correct.
Statement 1 is incorrect because the Council of Ministers in the Centre is collectively responsible to the *Lok Sabha* (House of the People), not the entire Parliament (Lok Sabha and Rajya Sabha). This is a fundamental principle of parliamentary democracy as enshrined in Article 75(3) of the Constitution. Statement 2 is correct as per Article 75(2) of the Constitution; Union Ministers hold office during the pleasure of the President, though this power is exercised on the advice of the Prime Minister. Statement 3 is correct as per Article 78(a) of the Constitution, which makes it the duty of the Prime Minister to communicate to the President all decisions of the Council of Ministers relating to the administration of the Union and proposals for legislation.
The collective responsibility to the Lok Sabha means that the Council of Ministers stays in power as long as it enjoys the confidence of the Lok Sabha. The individual responsibility of ministers to the President implies that a minister can be removed by the President on the advice of the Prime Minister. Article 78 outlines the duties of the Prime Minister regarding communication with the President and providing information.

29. Disguised unemployment generally means

Disguised unemployment generally means

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large number of people remain unemployed
alternative employment is not available
marginal productivity of labour is zero
productivity of workers is low
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The correct answer is C) marginal productivity of labour is zero.
Disguised unemployment occurs when people appear to be employed, but their contribution to total output is negligible or zero. This means that even if these individuals are removed from the workforce, the overall production level does not decrease. Their marginal productivity of labour (the additional output produced by employing one more unit of labour) is effectively zero or very close to it. This type of unemployment is common in agriculture in developing countries, where multiple family members might work on a small plot of land even though fewer could achieve the same output.
Option A describes general unemployment. Option B explains a possible cause or consequence of disguised unemployment but not its definition. Option D describes low average productivity, which can be a result of disguised unemployment but is not the defining characteristic itself.

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30. Consider the following statements: 1. Inflation benefits the debtors

Consider the following statements:

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  • 1. Inflation benefits the debtors.
  • 2. Inflation benefits the bond-holders.

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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The correct answer is A) 1 only. Statement 1 is correct, while statement 2 is incorrect.
Inflation is the decline of purchasing power of a given currency over time. When there is inflation, the real value of money decreases. Statement 1: Debtors benefit from inflation because the fixed amount of money they owe becomes less valuable in real terms when they repay it later. Statement 2: Bondholders (creditors) are typically harmed by inflation because the fixed interest payments they receive and the principal amount they get back at maturity are worth less in real terms due to the decreased purchasing power of money.
Inflation essentially redistributes wealth from creditors to debtors if the nominal interest rate is less than the inflation rate (resulting in a negative real interest rate). Fixed-income earners, savers, and people holding cash also tend to lose during periods of high inflation, while those with flexible incomes or assets that appreciate faster than inflation may benefit or be protected.

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