2020

201. In India, under cyber insurance for individuals, which of the followin

In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits ?

  • 1. Cost of restoration of the computer system in case of malware disrupting access to one’s computer
  • 2. Cost of a new computer if some miscreant willfully damages it, if proved so
  • 3. Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion
  • 4. Cost of defence in the Court of Law if any third party files a suit

Select the correct answer using the code given below :

[amp_mcq option1=”1, 2 and 4 only” option2=”1, 3 and 4 only” option3=”2 and 3 only” option4=”1, 2, 3 and 4″ correct=”option2″]

This question was previously asked in
UPSC IAS – 2020
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Statements 1, 3, and 4 generally describe benefits covered under cyber insurance for individuals.
Statement 1: Cyber insurance policies for individuals typically cover costs associated with restoring one’s computer system, removing malware, or recovering data compromised by cyber attacks or infections. This is a standard coverage. Correct.
Statement 2: While some comprehensive policies or riders might exist, the primary focus of cyber insurance is not on covering the cost of replacing hardware that is physically damaged, even if the damage is caused by a miscreant. Physical damage is usually covered by standard property or home insurance. Cyber insurance focuses on financial losses, data loss/recovery, system restoration, cyber extortion, identity theft, and associated legal costs resulting from cyber events. This is generally *not* a standard cyber insurance benefit. Incorrect.
Statement 3: Cyber extortion, such as ransomware attacks, is a key risk covered by individual cyber insurance. This coverage often includes the cost of hiring specialists (like cybersecurity consultants or negotiators) to help resolve the extortion demand and minimize loss. Correct.
Statement 4: If a cyber incident originating from an individual’s system (e.g., spreading malware, involvement in a botnet) causes harm to a third party, leading to a lawsuit, cyber insurance can cover the legal costs for defence in court. This falls under the liability aspect of cyber insurance. Correct.
Cyber insurance for individuals is a relatively new but growing area, providing financial protection against various cyber risks such as online fraud, identity theft, cyber bullying, data breaches, and system damage from malware or hacking. The specific coverages can vary depending on the policy provider and plan.

202. Consider the following statements : 1. In terms of short-term credit

Consider the following statements :

  • 1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.
  • 2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.

Which of the statements given above is/are correct ?

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

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Statement 2 is correct, while Statement 1 is incorrect.
Statement 1: District Central Cooperative Banks (DCCBs) are an important part of the short-term cooperative credit structure. However, Scheduled Commercial Banks (SCBs) typically account for the largest share of total agricultural credit disbursed in India, including short-term credit, followed by Regional Rural Banks (RRBs) and then the cooperative sector (which includes State Cooperative Banks, DCCBs, and PACS). Therefore, the statement that DCCBs deliver more credit than SCBs and RRBs is incorrect.
Statement 2: The short-term cooperative credit structure is a three-tiered system: State Cooperative Banks (SCBs) at the state level, District Central Cooperative Banks (DCCBs) at the district level, and Primary Agricultural Credit Societies (PACS) at the village level. DCCBs act as a link between SCBs and PACS. A crucial function of DCCBs is indeed to channel funds received from SCBs (or refinanced by NABARD) to the PACS, which then provide credit directly to the farmers. This statement is correct.
The cooperative credit structure plays a vital role in providing financial services to rural areas, especially to small and marginal farmers. However, the cooperative sector has faced challenges related to governance, financial health, and competition from commercial banks and RRBs over the years. Recapitalization and reforms have been undertaken to strengthen the cooperative credit institutions.

203. With reference to the Indian economy after the 1991 economic liberaliz

With reference to the Indian economy after the 1991 economic liberalization, consider the following statements:

  • 1. Worker productivity (₹ per worker at 2004 – 05 prices) increased in urban areas while it decreased in rural areas.
  • 2. The percentage share of rural areas in the workforce steadily increased.
  • 3. In rural areas, the growth in non-farm economy increased.
  • 4. The growth rate in rural employment decreased.

Which of the statements given above is/are correct ?

[amp_mcq option1=”1 and 2 only” option2=”3 and 4 only” option3=”3 only” option4=”1, 2 and 4 only” correct=”option2″]

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Statements 3 and 4 are correct regarding the Indian economy after the 1991 economic liberalization.
Statement 1: While worker productivity generally increased post-1991 in India, particularly in urban-based industries and services, stating that it *decreased* in rural areas is not a universally accepted or clearly demonstrable trend across the entire rural economy. Agricultural productivity growth was uneven, but non-farm rural productivity likely increased. This statement is questionable.
Statement 2: Post-liberalization India has experienced increasing urbanization and migration from rural to urban areas in search of better employment opportunities. This trend typically leads to a decrease, or at least not a steady increase, in the percentage share of rural areas in the workforce. This statement is incorrect.
Statement 3: Economic liberalization fostered growth in non-agricultural sectors. In rural areas, this led to significant growth in the non-farm economy (manufacturing, construction, trade, services), providing alternative sources of income and employment outside traditional agriculture. This statement is correct.
Statement 4: The growth rate in rural employment, particularly in agriculture, slowed down significantly after 1991 compared to the pre-reform period. While the non-farm sector absorbed some labor, overall rural employment growth often lagged behind the growth in the labor force, leading to concerns about jobless growth. This statement is correct.
The post-1991 period saw structural shifts in the Indian economy, with a decline in the share of agriculture in GDP and a rise in the share of services and industry. While overall economic growth accelerated, its impact on employment generation and rural livelihoods has been a subject of debate and analysis. The growth of the rural non-farm sector and the slowdown in agricultural employment are key features of this period.

204. If the RBI decides to adopt an expansionist monetary policy, which of

If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do?

  • 1. Cut and optimize the Statutory Liquidity Ratio
  • 2. Increase the Marginal Standing Facility Rate
  • 3. Cut the Bank Rate and Repo Rate

Select the correct answer using the code given below :

[amp_mcq option1=”1 and 2 only” option2=”2 only” option3=”1 and 3 only” option4=”1, 2 and 3″ correct=”option2″]

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In an expansionist (or loose) monetary policy, the Reserve Bank of India (RBI) aims to increase the money supply and credit availability in the economy to stimulate growth.
Statement 1: Cutting the Statutory Liquidity Ratio (SLR) reduces the percentage of net demand and time liabilities (NDTL) that banks must hold in liquid assets (like government securities). This releases more funds for banks to lend, increasing liquidity and credit, which is an expansionist measure. So, RBI *would* do this.
Statement 2: Increasing the Marginal Standing Facility (MSF) Rate makes it more expensive for banks to borrow overnight funds from the RBI when there is a significant liquidity deficit. This tightens liquidity in the banking system, which is a contractionary measure. RBI would *not* do this in an expansionist policy.
Statement 3: Cutting the Bank Rate and Repo Rate reduces the cost at which commercial banks can borrow money from the RBI (long-term via Bank Rate, short-term via Repo Rate). Lower borrowing costs encourage banks to lend more, increasing liquidity and credit, which is an expansionist measure. So, RBI *would* do this.
The question asks what RBI would *not* do. Among the given statements, only statement 2 describes an action that is contrary to an expansionist monetary policy.
RBI uses various tools for monetary policy, including policy rates (Repo Rate, Reverse Repo Rate, MSF Rate, Bank Rate), reserve ratios (CRR, SLR), and open market operations (OMOs). An expansionist stance typically involves lowering policy rates, reducing reserve requirements, and buying government securities through OMOs, all aimed at injecting liquidity and lowering borrowing costs in the economy.

205. With reference to Trade-Related Investment Measures (TRIMS), which of

With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct ?

  • 1. Quantitative restrictions on imports by foreign investors are prohibited.
  • 2. They apply to investment measures related to trade in both goods and services.
  • 3. They are not concerned with the regulation of foreign investment.

Select the correct answer using the code given below :

[amp_mcq option1=”1 and 2 only” option2=”2 only” option3=”1 and 3 only” option4=”1, 2 and 3″ correct=”option1″]

This question was previously asked in
UPSC IAS – 2020
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The official answer key for UPSC Prelims 2020 indicates that Statement 1 and Statement 2 are considered correct.
Statement 1: The TRIMS Agreement prohibits investment measures that are inconsistent with GATT Article III (National Treatment) and Article XI (Elimination of Quantitative Restrictions). Measures requiring enterprises to limit their imports to an amount related to the foreign exchange earnings they generate, or to the volume or value of products they export, are examples of quantitative restrictions on imports and are thus prohibited under TRIMS for foreign investors. So, statement 1 is correct.
Statement 2: According to the official key, this statement is considered correct. However, standard interpretation of the WTO TRIMS Agreement is that it applies specifically to trade-related investment measures concerning trade in **goods**, not services. Measures related to trade in services are covered under the General Agreement on Trade in Services (GATS). There might be a specific context or interpretation under which UPSC considers TRIMS relevant to investment measures touching upon both goods and services sectors, but the primary and explicit scope is goods.
Statement 3: TRIMS is fundamentally concerned with regulating certain aspects of foreign investment, specifically those measures that distort or restrict trade in goods. Therefore, the statement that they are *not* concerned with the regulation of foreign investment is incorrect.
The TRIMS Agreement requires WTO members to notify the Council for Trade in Goods of all investment measures that are incompatible with TRIMS and to eliminate them within a specified period (typically two years for developed countries, five for developing countries, and seven for least-developed countries). The illustrative list of prohibited TRIMS includes requirements for local content, trade balancing, foreign exchange balancing, and export restrictions.

206. In India, why are some nuclear reactors kept under “IAEA Safeguards” w

In India, why are some nuclear reactors kept under “IAEA Safeguards” while others are not ?

[amp_mcq option1=”Some use uranium and others use thorium” option2=”Some use imported uranium and others use domestic supplies” option3=”Some are operated by foreign enterprises and others are operated by domestic enterprises” option4=”Some are State-owned and others are privately-owned” correct=”option2″]

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The reason some nuclear reactors in India are under IAEA Safeguards while others are not stems from India’s nuclear policy and its separation plan agreed upon with the International Atomic Energy Agency (IAEA) and countries like the US.
– India maintains a distinction between its civilian and military nuclear facilities. Under the India-US civil nuclear agreement and India’s voluntary separation plan, civilian nuclear facilities are placed under IAEA safeguards. Military facilities are kept outside safeguards.
– Access to international nuclear trade, including the import of uranium fuel, is permitted only for the safeguarded civilian facilities. Consequently, reactors using imported uranium must be under IAEA safeguards. Reactors that are not under safeguards are designated for military purposes and therefore use only domestically produced nuclear material.
– Thus, the use of imported uranium is a direct consequence of a facility being designated as civilian and placed under safeguards, and facilities not under safeguards rely on domestic supplies. Option B captures this practical distinction: Some reactors (civilian, safeguarded) use imported uranium, while others (military, not safeguarded) use domestic supplies.
India is not a signatory to the Nuclear Non-Proliferation Treaty (NPT) as a nuclear weapon state. However, through its separation plan and additional protocols with the IAEA, it allows safeguards on its civilian nuclear program in exchange for access to international nuclear fuel and technology, enabling it to expand its nuclear power capacity.

207. In the context of the Indian economy, non-financial debt includes whic

In the context of the Indian economy, non-financial debt includes which of the following ?

  • 1. Housing loans owed by households
  • 2. Amounts outstanding on credit cards
  • 3. Treasury bills

Select the correct answer using the code given below :

[amp_mcq option1=”1 only” option2=”1 and 2 only” option3=”3 only” option4=”1, 2 and 3″ correct=”option4″]

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UPSC IAS – 2020
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Non-financial debt refers to debt owed by sectors other than the financial sector. This includes debt of households, non-financial corporations, and the government.
– 1. Housing loans owed by households: Households are part of the non-financial sector. Housing loans are debt. Thus, this is non-financial debt. Correct.
– 2. Amounts outstanding on credit cards: Households are part of the non-financial sector. Credit card outstanding is debt. Thus, this is non-financial debt. Correct.
– 3. Treasury bills: Treasury bills are short-term debt instruments issued by the government. The government is part of the non-financial sector. Thus, government debt, including Treasury bills, is considered non-financial debt. Correct.
Total debt in an economy is often categorised into financial debt (debt within the financial sector) and non-financial debt (debt of households, corporations, and government). Non-financial debt is a key indicator of leverage in the real economy.

208. The term ‘West Texas Intermediate’, sometimes found in news, refers to

The term ‘West Texas Intermediate’, sometimes found in news, refers to a grade of

[amp_mcq option1=”Crude oil” option2=”Bullion” option3=”Rare earth elements” option4=”Uranium” correct=”option1″]

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UPSC IAS – 2020
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The term ‘West Texas Intermediate’ (WTI) is a well-known benchmark in the global commodities market.
– WTI refers to a grade of crude oil produced in Texas and Southern Oklahoma, USA. It is a major benchmark for oil pricing, particularly in North America. Other common benchmarks include Brent Crude (for European and global markets) and Dubai/Oman (for Middle Eastern/Asian markets).
Commodity benchmarks like WTI and Brent are important because they serve as reference prices for a vast volume of oil trades worldwide and influence energy prices globally.

209. With reference to the international trade of India at present, which o

With reference to the international trade of India at present, which of the following statements is/are correct ?

  • 1. India’s merchandise exports are less than its merchandise imports.
  • 2. India’s imports of iron and steel, chemicals, fertilizers and machinery have decreased in recent years.
  • 3. India’s exports of services are more than its imports of services.
  • 4. India suffers from an overall trade/current account deficit.

Select the correct answer using the code given below :

[amp_mcq option1=”1 and 2 only” option2=”2 and 4 only” option3=”3 only” option4=”1, 3 and 4 only” correct=”option4″]

This question was previously asked in
UPSC IAS – 2020
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The question asks about correct statements regarding India’s current international trade situation.
– 1. India’s merchandise exports are historically less than its merchandise imports, resulting in a merchandise trade deficit. This statement is generally correct based on persistent trends.
– 2. India’s imports of iron and steel, chemicals, fertilizers, and machinery are typically significant due to industrial and agricultural needs. While imports can fluctuate, a general decrease across all these major categories in recent years is unlikely given India’s economic growth and reliance on these items. This statement is likely incorrect.
– 3. India has a strong services sector, particularly IT and BPO, leading to a consistent surplus in services trade (exports of services are more than imports). This statement is correct.
– 4. Despite a surplus in services trade, India’s large merchandise trade deficit usually results in an overall current account deficit (CAD), meaning total imports of goods, services, income, and transfers exceed total exports and receipts. This statement is correct.
India’s balance of payments position is significantly influenced by its merchandise trade deficit, which is partially offset by its services trade surplus and remittances. However, the net effect often results in a current account deficit.

210. With reference to Foreign Direct Investment in India, which one of the

With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic ?

[amp_mcq option1=”It is the investment through capital instruments essentially in a listed company.” option2=”It is a largely non-debt creating capital flow.” option3=”It is the investment which involves debt-servicing.” option4=”It is the investment made by foreign institutional investors in the Government securities.” correct=”option2″]

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UPSC IAS – 2020
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The question asks for a major characteristic of Foreign Direct Investment (FDI) in India.
– A) FDI can be made in both listed and unlisted companies, not essentially limited to listed ones. Incorrect.
– B) FDI primarily involves equity investment, meaning the foreign investor takes ownership stake in the domestic company. This inflow of capital is largely non-debt creating for the host country’s balance of payments, unlike external commercial borrowings or portfolio debt. This is a major characteristic. Correct.
– C) While the business receiving FDI might take on debt, the FDI inflow itself is equity, which leads to profit sharing or capital gains, not debt servicing in the traditional sense for the host economy’s external liabilities related to the FDI equity. Incorrect.
– D) Investment by foreign institutional investors (now Foreign Portfolio Investors – FPIs) in government securities is classified as Foreign Portfolio Investment (FPI), not FDI. FDI involves acquiring a lasting interest and control in an enterprise. Incorrect.
FDI is distinguished from FPI by the level of ownership and control acquired by the foreign investor. FDI typically involves a significant stake aimed at influencing management, while FPI is usually passive investment in securities.
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