UPSC CSE 2026 Essay Paper Discussion

YEAR ASKED IN

2019

Practice UPSC 2019 previous year questions on Anantam IAS: 100 Prelims MCQs and 80 Mains Q&A with answer keys, explanations and topic-wise links.

Prelims MCQs 100

  1. Consider the following statements: 1. In the revenue administration of Delhi Sultanate, the in-charge…

    Consider the following statements: 1. In the revenue administration of Delhi Sultanate, the in-charge of revenue collection was known as 'Amil'. 2. The Iqta system of Sultans of Delhi was an ancient indigenous institution. 3. The office of 'Mir Bakshi' came into existence during the reign of Khalji Sultans of Delhi. Which of the statements given above is/are correct?

    1. A1 only
    2. B1 and 2 only
    3. C3 only
    4. D1, 2 and 3
    Answer and explanation

    Correct answer: A

    Statement 1 is correct: The 'Amil' was indeed the officer in charge of revenue collection in the revenue administration of the Delhi Sultanate.

    Statement 2 is incorrect: The Iqta system was not an ancient indigenous institution of India but was rather an administrative system borrowed from the Persianate world. It was introduced by the Delhi Sultanate, primarily under the rule of the Ghurid dynasty, to organize and administer their territories.

    Statement 3 is incorrect: The office of 'Mir Bakshi' was not established during the reign of the Khalji Sultans. It was introduced later during the Mughal period, under the reign of Emperor Akbar, as a military office responsible for managing the imperial army and its finances.

    Therefore, only statement 1 is correct.

  2. In India, ‘extended producer responsibility’ was introduced as an important feature in which of…

    In India, 'extended producer responsibility' was introduced as an important feature in which of the following?

    1. AThe Bio-medical Waste Management and Handling Rules, 1998
    2. BThe Recycled Plastic Manufacturing and Usage Rules, 1999
    3. CThe e-Waste Management and Handling Rules, 2011
    4. DThe Food Safety and Standard Regulations, 2011
    Answer and explanation

    Correct answer: C

    Extended Producer Responsibility (EPR) in E-waste Management Rules, 2011 Makes producers of electrical and electronic equipment (EEE) responsible for the collection and channelization of e-waste after its end-of-life. This promotes responsible production and encourages proper e-waste disposal.

    EPR in Plastic Waste Management Rules, 2016 Extends the EPR principle to plastic waste. Producers, importers, and brand owners are accountable for managing plastic packaging waste after consumption.

  3. Which one of the following statements is not correct?

    Which one of the following statements is not correct?

    1. AHepatitis B virus is transmitted much like HIV.
    2. BHepatitis B, unlike Hepatitis C, does not have a vaccine.
    3. CGlobally, the number of people infected with Hepatitis B and C viruses are several times more than those infected with HIV.
    4. DSome of those infected with Hepatitis B and C viruses do not show the symptoms for many years.
    Answer and explanation

    Correct answer: B

    Option A is correct. Both Hepatitis B virus and HIV (Human Immunodeficiency Virus) can be transmitted through blood-to-blood contact, sexual contact, and from mother to child during childbirth.

    Option B is incorrect. Unlike Hepatitis C, there is a vaccine available for Hepatitis B. The Hepatitis B vaccine is highly effective in preventing Hepatitis B virus infection.

    Option C is correct. According to global health statistics, the number of people infected with Hepatitis B and C viruses combined is indeed several times more than those infected with HIV.

    Option D is correct. Many individuals infected with Hepatitis B and C viruses may not show any symptoms for years or even decades. This is known as chronic hepatitis, and it can lead to severe liver damage if left untreated.

    ![Hepatitis ](https://d39jluplm5thpx.cloudfront.net//hep_0290539a96.jpg)

  4. Consider the following statements: 1. Most of India’s external debt is owed by governmental…

    Consider the following statements: 1. Most of India's external debt is owed by governmental entities. 2. All of India's external debt is denominated in US dollars. Which of the statements given above is/are correct?

    1. A1 only
    2. B2 only
    3. CBoth 1 and 2
    4. DNeither 1 nor 2
    Answer and explanation

    Correct answer: D

    The external debt of India is the total debt the country owes to foreign creditors. The debtors can be the Union government, state governments, corporations, or citizens of India. The debt includes money owed to private commercial banks, foreign governments, or international financial institutions such as the International Monetary Fund (IMF) and World Bank.

    - Commercial borrowings continued to be the largest component of external debt with a share of 37.4 per cent, followed by NRI deposits (24.1 per cent) and short-term trade credit (19.9 per cent).

    - Statement 1 is incorrect: Non-Government Debt - 416.7 (US$ billion), Government Debt 104.5 (US$ billion).

    - Statement 2 is also incorrect: US dollar-denominated debt continued to be the largest component of India's external debt with a share of 45.9 per cent at the end of December 2018, followed by the Indian rupee (24.8 per cent), SDR (5.1 per cent), yen (4.9 per cent) and euro (3.1 per cent).

  5. With reference to the cultivation of Kharif crop in India in the last five…

    With reference to the cultivation of Kharif crop in India in the last five years, consider the following statements: 1. Area under rice cultivation is the highest. 2. Area under the cultivation of jowar is more than that of oilseeds. 3. Area of cotton cultivation is more than that of sugarcane. 4. Area under sugarcane cultivation has steadily decreased. Which of the statements given above are correct?

    1. A1 and 3 only
    2. B2 , 3 and 4 only
    3. C2 and 4 only
    4. D1, 2, 3 and 4
    Answer and explanation

    Correct answer: A

    Statement 1 is correct - Area under rice cultivation is highest among the Kharif crops; for example, it was 441.10 (Lakh Hectare) in 2014-15, 433.88 (Lakh Hectare) in 2015-16, etc.

    Statement 2 is incorrect - Area under the cultivation of jowar is less than that of oilseeds.

    Statement 3 is correct - Area of cotton cultivation is more than double that of sugarcane.

    Statement 4 is incorrect - Area under sugarcane cultivation is fluctuating; it has not steadily decreased.

    ![Crops](https://d39jluplm5thpx.cloudfront.net//crops_72454ce2e4.png)

  6. In the context of which one of the following are the terms ‘pyrolysis and…

    In the context of which one of the following are the terms 'pyrolysis and plasma gasification' mentioned?

    1. AExtraction of rare earth elements
    2. BNatural gas extraction technologies
    3. CHydrogen fuel-based automobiles
    4. DWaste-to-energy technologies
    Answer and explanation

    Correct answer: D

    * Pyrolysis and plasma gasification are both thermochemical processes used to convert waste materials (organic or inorganic) into usable products.

    * Pyrolysis: This process involves heating organic materials (like plastic, and biomass) in an oxygen-deficient environment, leading to decomposition into various products like syngas (a mixture of gases), bio-oil, and char.

    * Plasma gasification: This technology uses high-temperature plasma to break down waste materials into syngas rich in hydrogen and carbon monoxide.

    * Both processes offer a potential solution for waste management and energy generation. They can convert various waste streams into usable fuels or feedstock for further processing.

  7. Consider the following pairs: Famous place : River 1. Pandharpur : Chandrabhaga 2. Tiruchirappalli…

    Consider the following pairs: Famous place : River 1. Pandharpur : Chandrabhaga 2. Tiruchirappalli : Cauvery 3. Hampi : Malaprabha Which of the pairs given above are correctly matched?

    1. A1 and 2 only
    2. B2 and 3 only
    3. C1 and 3 only
    4. D1, 2 and 3
    Answer and explanation

    Correct answer: A

    Pair 1 is correct: Pandharpur is a well-known pilgrimage town on the banks of Chandrabhaga River in Solapur district, Maharashtra, India.

    Pair 2 is correct: Tiruchirapalli is located along the Kaveri River in Tamil Nadu, India.

    Pair 3 is incorrect: Hampi, also referred to as the Group of Monuments at Hampi, is a UNESCO World Heritage Site located in east-central Karnataka, India. It is located near the Tungabhadra River.

    Thus, only 1 and 2 are correct.

  8. Which one of the following groups of plants were domesticated in the ‘New World’…

    Which one of the following groups of plants were domesticated in the 'New World' and introduced into the 'Old World'?

    1. ATobacco, cocoa and rubber
    2. BTobacco, cotton and rubber
    3. CCotton, coffee and sugarcane
    4. DRubber, coffee and wheat
    Answer and explanation

    Correct answer: A

    The phrase "New World crops" is usually used to describe crops, food and otherwise, that were native to the New World (mostly the Americas) before 1492 CE and not found anywhere else at that time. Many of these crops are now grown around the world and have often become an integral part of the cuisine of various cultures in the Old World.

    New World Food - corn, potato, tomato, bell pepper, chili pepper, vanilla, tobacco, Cocoa, rubber tree, beans, pumpkin, cassava root, avocado, peanut, pecans, cashews, pineapple, blueberries, sunflower, petunia, black-eyed susan, dahlia, marigold, quinine, wild rice, gourds, and squash.

  9. Consider the following: 1. Carbon monoxide 2. Methane 3. Ozone 4. Sulphur dioxide Which…

    Consider the following: 1. Carbon monoxide 2. Methane 3. Ozone 4. Sulphur dioxide Which of the above are released into the atmosphere due to the burning of crop/biomass residue?

    1. A1 and 2 only
    2. B2, 3 and 4 only
    3. C1 and 4 only
    4. D1, 2, 3 and 4
    Answer and explanation

    Correct answer: D

    The burning of crop or biomass residue releases various pollutants into the atmosphere, contributing to air pollution and climate change.

    Carbon Monoxide (CO): Incomplete combustion of organic matter produces carbon monoxide, a colorless and toxic gas that affects air quality and human health.

    Methane (CH₄): Biomass burning can also release methane, a potent greenhouse gas that contributes to global warming.

    Sulfur Dioxide (SO₂): If the biomass contains sulfur compounds, its combustion releases sulfur dioxide, which can cause respiratory problems and contribute to acid rain.

    Ozone (O₃) Formation: Ozone is not directly emitted from biomass burning. However, it forms secondarily in the atmosphere when pollutants such as nitrogen oxides (NOₓ) and volatile organic compounds (VOCs) react in the presence of sunlight.

    Therefore, option (D) 1, 2, 3 and 4 is correct.

  10. On 21st June, the Sun

    On 21st June, the Sun

    1. Adoes not set below the horizon at the Arctic Circle
    2. Bdoes not set below the horizon at Antarctic Circle
    3. Cshines vertically overhead at noon on the Equator
    4. Dshines vertically overhead at the Tropic of Capricorn
    Answer and explanation

    Correct answer: A

    * The summer solstice is the day with the longest period of daylight and the shortest night of the year. It occurs when one of the Earth's poles has its maximum tilt toward the Sun.

    ![Earth Revolution](https://d39jluplm5thpx.cloudfront.net//Earth_Revolution_1_6224c3eabe.jpg)

    * On 21st June, the summer solstice occurs in the Northern Hemisphere. This is the longest day of the year for that hemisphere.

    * The Arctic Circle, which is in the Northern Hemisphere, experiences continuous daylight throughout this day. This is because the tilt of the Earth's axis is such that the North Pole is facing towards the Sun.

    * Therefore, the Sun does not set below the horizon at the Arctic Circle on this day.

  11. Consider the following pairs: | Sea Bordering | Country | |———————|————| | 1. Adriatic…

    Consider the following pairs: | Sea Bordering | Country | |---------------------|------------| | 1. Adriatic Sea | Albania | | 2. Black Sea | Croatia | | 3. Caspian Sea | Kazakhstan | | 4. Mediterranean Sea | Morocco | | 5. Red Sea | Syria | Which of the pairs given above are correctly matched?

    1. A1, 2 and 4 only
    2. B1, 3 and 4 only
    3. C2 and 5 only
    4. D1, 2, 3, 4 and 5
    Answer and explanation

    Correct answer: B

    * The Adriatic Sea is a body of water separating the Italian Peninsula from the Balkan peninsula, and Albania is one of the countries on its coast.

    ![Adriatic Sea](https://d39jluplm5thpx.cloudfront.net//Adriatic_sea_2bb2aade15.PNG)

    * Croatia does not border the Black Sea. The countries bordering the Black Sea are Bulgaria, Georgia, Romania, Russia, Turkey, and Ukraine.

    ![Black Sea](https://d39jluplm5thpx.cloudfront.net//Black_Sea_fd0fdcaea0.jpg)

    * Kazakhstan is one of the five countries (along with Russia, Turkmenistan, Iran, and Azerbaijan) that border the Caspian Sea.

    ![Caspian Sea](https://d39jluplm5thpx.cloudfront.net//Caspian_sea_63919588f6.PNG)

    * Morocco is one of the countries that border the Mediterranean Sea.

    ![Meditteranean Sea](https://d39jluplm5thpx.cloudfront.net//Mediterranean_Sea_0c360c91b2.PNG)

    * Syria does not border the Red Sea. The countries bordering the Red Sea are Saudi Arabia, Yemen, Egypt, Sudan, Eritrea, and Djibouti.

    ![Red Sea](https://d39jluplm5thpx.cloudfront.net//red_sea_fc1428275e.jpg)

    So, the correctly matched pairs are 1, 3, and 4.

  12. With reference to the management of minor minerals in India consider the following statements:…

    With reference to the management of minor minerals in India consider the following statements: 1. Sand is a 'minor mineral' according to the prevailing law in the country. 2. State Governments have the power to grant mining leases of minor minerals, but the powers regarding the formation of rules related to the grant of minor minerals lie with the Central Government. 3. State Governments have the power to frame rules to prevent illegal mining of minor minerals. Which of the statements given above is/are correct?

    1. A1 and 3 only
    2. B2 and 3 only
    3. C3 only
    4. D1, 2 and 3
    Answer and explanation

    Correct answer: A

    Statement 1 is correct: As per Section 3(e) of the MMDR Act, 1957, sand is classified as a 'minor mineral' along with other minerals such as gravel, clay, marble, and limestone.

    Statement 2 is incorrect: The power to make rules regarding the grant of minor minerals lies with State Governments, not the Central Government. Under Section 15 of the MMDR Act, State governments can frame rules related to the extraction, leasing, and transportation of minor minerals. However, the central government regulates major minerals like coal, iron ore, and bauxite.

    Statement 3 is correct: The MMDR Act empowers state governments to make rules to regulate the grant of mining leases and other mineral concessions in respect of minor minerals, which includes the power to frame rules to prevent illegal mining of minor minerals.

  13. Among the agricultural commodities imported by India, which one of the following accounts for…

    Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years?

    1. ASpices
    2. BFresh fruits
    3. CPulses
    4. DVegetable oils
    Answer and explanation

    Correct answer: D

    * The country's vegetable oil imports for the first six months of the oil year during November 2018 to April 2019 stood at 75,41,689 tonne, up about 3% from 73,18,295 tonne reported in the same period last year.

    * Vegetable oils account for the highest import in terms of value in the last five years. India relies on imports for 70 percent of its edible oil consumption.

  14. The economic cost of food grains to the Food Corporation of India is Minimum…

    The economic cost of food grains to the Food Corporation of India is Minimum Support Price and bonus (if any) paid to the farmers plus

    1. ATransportation cost only
    2. BInterest cost only
    3. CProcurement incidentals and distribution cost
    4. DProcurement incidentals and charges for godowns
    Answer and explanation

    Correct answer: C

    The correct answer is (C) procurement incidentals and distribution cost.

    Here's a breakdown of the economic cost of food grains to the Food Corporation of India (FCI):

    Minimum Support Price (MSP) and bonus (if any): This is the price paid by the FCI to farmers to procure food grains at a pre-determined level. It serves as a safety net for farmers and ensures some income stability.

    Procurement incidentals: These are the additional costs incurred by the FCI during the procurement process. They include expenses like - Commission to agents or societies involved in procurement - Bagging materials - Labor charges for procurement activities - Transportation from collection centers to storage depots

    Distribution cost: This refers to the expenses incurred by the FCI to distribute the procured food grains. It includes - Transportation costs from storage depots to fair price shops or other distribution channels - Handling and storage charges at fair price shops - Losses during storage and transportation

    ![Crops under MSP](https://d39jluplm5thpx.cloudfront.net//msp_b01479adc9.png)

  15. The Chairman of public sector banks are selected by the

    The Chairman of public sector banks are selected by the

    1. ABanks Board Bureau
    2. BReserve Bank of India
    3. CUnion Ministry of Finance
    4. DManagement of concerned bank
    Answer and explanation

    Correct answer: A

    The Chairman of public sector banks in India are selected by the Banks Board Bureau (BBB).

    The Banks Board Bureau is an autonomous body responsible for selecting and appointing the Boards of Directors in Public Sector Banks (PSBs) and Financial Institutions. It was established based on the recommendations of the Nayak Committee Report (2014).

  16. Which one of the following is not a sub-index of the World Bank’s “Ease…

    Which one of the following is not a sub-index of the World Bank's "Ease of Doing Business Index"?

    1. AMaintenance of law and order
    2. BPaying taxes
    3. CRegistering property
    4. DDealing with construction permits
    Answer and explanation

    Correct answer: A

    The World Bank's Ease of Doing Business Index measured business regulations through 10 specific sub-indices: (1) Starting a business, (2) Dealing with construction permits, (3) Getting electricity, (4) Registering property, (5) Getting credit, (6) Protecting minority investors, (7) Paying taxes, (8) Trading across borders, (9) Enforcing contracts, and (10) Resolving insolvency. While maintenance of law and order is a fundamental requirement for economic stability, it was not one of the quantitative indicators used by the World Bank for this index. Options B, C, and D are all official sub-indices used in the ranking methodology.

  17. What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions…

    What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?

    1. ATo lessen the Government of India's perennial burden of fiscal deficit and current account deficit
    2. BTo support the infrastructure Projects of Central and State Governments
    3. CTo act as independent regulator in case of applications for loans of Rs. 50 crore or more
    4. DTo aim at faster resolution of stressed assets of Rs. 50 crore or more which are under consortium lending
    Answer and explanation

    Correct answer: D

    The Inter-Creditor Agreement (ICA) was a key component of Project Sashakt, launched based on the recommendations of the Sunil Mehta Committee to fast-track the resolution of Non-Performing Assets (NPAs) in the Indian banking system. It specifically targets stressed assets of ₹50 crore or more held under consortium lending. The agreement mechanism stipulates that if 66% of the lenders (by value) agree to a resolution plan, it becomes binding on all other lenders in the consortium. This prevents individual dissenting banks from stalling the recovery process, ensuring a more efficient turnaround for bad loans.

  18. With reference to Asian Infrastructure Investment Bank (AIIB), consider the following statements : 1.…

    With reference to Asian Infrastructure Investment Bank (AIIB), consider the following statements : 1. AIIB has more than 80 member nations. 2. India is the largest shareholder in AIIB. 3. AIIB does not have any members from outside Asia. Which of the statements given above is/are correct?

    1. A1 only
    2. B2 and 3 only
    3. C1 and 3 only
    4. D1, 2 and 3
    Answer and explanation

    Correct answer: A

    Statement 1 is correct. AIIB has more than 80 member nations. (Actually, as of April 2024, it has 109 members).

    Statement 2 is incorrect. India is not the largest shareholder in AIIB. China is the largest shareholder.

    Statement 3 is incorrect. While the focus is on Asia, several non-Asian countries are members, including some European and South American nations.

    ![AIIB vs ADB](https://d39jluplm5thpx.cloudfront.net//ADB_baadd5290f.png)

  19. With reference to India’s Five-Year Plans, which of the following statements is/are correct? 1.…

    With reference to India's Five-Year Plans, which of the following statements is/are correct? 1. From the Second Five-Year Plan, there was a determined thrust towards substitution of basic and capital goods industries. 2. The Fourth Five-Year Plan adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power. 3. In the Fifth Five-Year Plan, for the first time, the financial sector was included as an integral part of the Plan. Select the correct answer using the code given below.

    1. A1 and 2 only
    2. B2 only
    3. C3 only
    4. D1, 2 and 3
    Answer and explanation

    Correct answer: A

    Statement 1 is Correct: The Second Five-Year Plan (1956-1961), based on the Mahalanobis Model, shifted the focus of Indian planning toward rapid industrialization. It placed a determined thrust on the development of basic and heavy capital goods industries to build a strong industrial base.

    Statement 2 is Correct: The Fourth Five-Year Plan (1969-1974) adopted the objective of "growth with stability" and the "progressive achievement of self-reliance." It specifically aimed at correcting the concentration of wealth and economic power through measures like the nationalization of 14 major commercial banks (1969) and the Monopolies and Restrictive Trade Practices (MRTP) Act.

    Statement 3 is Incorrect: The financial sector was not included as an integral part of the planning process during the Fifth Five-Year Plan. It was only from the Ninth Five-Year Plan (1997-2002) onwards that the financial sector was treated as an integral part of the plan to ensure efficient resource allocation.

  20. In the context of India, which of the following factors is/are contributor/contributors to reducing…

    In the context of India, which of the following factors is/are contributor/contributors to reducing the risk of a currency crisis? 1. The foreign currency earnings of India's IT sector 2. Increasing the government expenditure 3. Remittances from Indians abroad Select the correct answer using the code given below.

    1. A1 only
    2. B1 and 3 only
    3. C2 only
    4. D1, 2 and 3
    Answer and explanation

    Correct answer: B

    Statement 1 is correct: Foreign currency earnings - The IT sector generates foreign exchange through exports of services. This increases the supply of foreign currency reserves, making it easier to defend the rupee's value in the foreign exchange market during times of stress.

    Statement 2 is incorrect: While government spending can stimulate economic growth, it can also lead to a higher budget deficit. If the deficit is financed by excessive borrowing, it can put pressure on the currency if investors lose confidence in the government's ability to repay its debts.

    Statement 3 is correct: Remittances from abroad - When Indians working abroad send money back home, it adds to the inflow of foreign currency. This strengthens the country's foreign exchange reserves and provides a buffer against external shocks.

    Therefore, the correct code is 1 and 3 only.

  21. Which of the following is issued by registered foreign portfolio investors to overseas investors…

    Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly?

    1. ACertificate of Deposit
    2. BCommercial Paper
    3. CPromissory Note
    4. DParticipatory Note
    Answer and explanation

    Correct answer: D

    Participatory Note (P-Note): This is a financial instrument issued by registered foreign portfolio investors (FPIs) to overseas investors. It allows overseas investors to participate in the Indian stock market indirectly without directly registering with the Securities and Exchange Board of India (SEBI). The FPI holds the underlying Indian securities, and the P-Note represents ownership for the overseas investor.

    The other options are not used for this purpose:

    Certificate of Deposit (CD): Issued by banks to raise short-term funds, not related to stock markets.

    Commercial Paper (CP): Short-term debt instrument issued by companies, not related to foreign investment in stocks.

    Promissory Note: A written promise to repay a debt, not used in this context of stock market participation.

  22. Consider the following statements: 1. Saint Nimbarka was a contemporary of Akbar. 2. Saint…

    Consider the following statements: 1. Saint Nimbarka was a contemporary of Akbar. 2. Saint Kabir was greatly influenced by Shaikh Ahmad Sirhindi. Which of the statements given above is/are correct?

    1. A1 only
    2. B2 only
    3. CBoth 1 and 2
    4. DNeither 1 nor 2
    Answer and explanation

    Correct answer: D

    Statement 1 is incorrect. Saint Nimbarka lived in the 13th or 14th century, while Akbar's reign was from 1556 to 1605.

    Statement 2 is incorrect. Saint Kabir lived in the 15th century, predating Shaikh Ahmad Sirhindi who belonged to the 16th-17th century.

  23. Which of the following is not included in the assets of a commercial bank…

    Which of the following is not included in the assets of a commercial bank in India?

    1. AAdvances
    2. BDeposits
    3. CInvestments
    4. DMoney at call and short notice
    Answer and explanation

    Correct answer: B

    Assets represent the resources a bank owns. For a commercial bank, these resources include:

    - Advances (loans): Money lent to businesses, individuals, and other borrowers. - Investments Securities like government bonds, treasury bills, or shares in other companies. - Money at call and short notice: Funds are lent to other banks for a very short period, usually overnight. - Deposits are liabilities for a bank. They represent the money that customers entrust to the bank, which the bank is obligated to repay.

  24. The money multiplier in an economy increases with which one of the following?

    The money multiplier in an economy increases with which one of the following?

    1. AIncrease in the cash reserve ratio
    2. BIncrease in the banking habits of the population
    3. CIncrease in the statutory liquidity ratio
    4. DIncrease in the population of the country
    Answer and explanation

    Correct answer: B

    Money multiplier: It refers to the extent to which commercial banks can create new money based on deposits. It's calculated as the reciprocal of the reserve ratio (required reserves divided by total deposits).

    Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR): These are regulatory tools used by the central bank to control the money supply.

    Higher CRR and SLR: Banks are required to hold a larger portion of deposits as reserves with the central bank. This reduces the amount of money available for lending, thus decreasing the money multiplier.

    Lower CRR and SLR: Banks can lend out a larger portion of deposits, increasing the money multiplier.

    Banking habit: When people deposit more money in banks, it increases the pool of funds available for lending. This allows banks to create more new money through the lending process, leading to a higher money multiplier.

    Population growth: While population growth can lead to higher demand for money, it doesn't directly affect the money multiplier mechanism itself.

  25. Which one of the following is not the most likely measure the Government/RBI takes…

    Which one of the following is not the most likely measure the Government/RBI takes to stop the slide of Indian rupee?

    1. ACurbing imports of non-essential goods and promoting exports
    2. BEncouraging Indian borrowers to issue rupee denominated Masala Bonds
    3. CEasing conditions relating to external commercial borrowing
    4. DFollowing an expansionary monetary policy
    Answer and explanation

    Correct answer: D

    To stop the slide of the Rupee (depreciation), the RBI/Government needs to increase the inflow of foreign currency (USD) or decrease the outflow.

    Option (a), (b), and (c) are likely measures: They either increase the supply of dollars in the Indian market or reduce the demand for dollars, which helps stabilize the Rupee.

    Option (d) is NOT a likely measure: An expansionary monetary policy usually involves lowering interest rates. When interest rates fall, the "carry trade" becomes less attractive to foreign investors, leading to capital flight. This increases the supply of Rupee in the market and decreases its value further. To stop a slide, the RBI typically follows a contractionary (dear money) policy to attract capital and curb inflation.

  26. In a given year in India, official poverty lines are higher in some States…

    In a given year in India, official poverty lines are higher in some States than in others because

    1. Apoverty rates vary from State to State
    2. Bprice levels vary from State to State
    3. CGross State Product varies from State to State
    4. Dquality of public distribution varies from State to State
    Answer and explanation

    Correct answer: B

    * The poverty line is determined by the cost of a basket of essential goods and services needed for a person to meet their basic needs.

    * If the price of these essentials varies significantly between states, the poverty line needs to be adjusted to reflect the different costs of living.

    * So, even if poverty rates might be similar, states with higher prices for essential goods will have a higher official poverty line.

    Therefore, the correct answer is B) Price levels vary from State to State.

  27. Consider the following statements: 1. Purchasing Power Parity (PPP) exchange rates are calculated by…

    Consider the following statements: 1. Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods and services in different countries. 2. In terms of PPP dollars, India is the sixth largest economy in the world. Which of the statements given above is/are correct?

    1. A1 only
    2. B2 only
    3. CBoth 1 and 2
    4. DNeither 1 nor 2
    Answer and explanation

    Correct answer: A

    Statement 1 is correct: Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods and services in different countries.

    Statement 2 is incorrect: India is not the sixth-largest economy in the world in terms of PPP dollars. It is currently the third largest economy in terms of PPP dollars, after China and the United States.

  28. With reference to land reforms in independent India, which one of the following statements…

    With reference to land reforms in independent India, which one of the following statements is correct?

    1. AThe ceiling laws were aimed at family holdings and not individual holdings.
    2. BThe major aim of land reforms was providing agricultural land to all the landless.
    3. CIt resulted in cultivation of cash crops as a predominant form of cultivation.
    4. DLand reforms permitted no exemptions to the ceiling limits.
    Answer and explanation

    Correct answer: B

    The primary objective of land reforms in independent India was to achieve social justice and 'equity' by redistributing land from large landowners to the landless and marginal farmers, thereby reducing the concentration of land ownership.

    - Option B is correct: The policy priority was to ensure that those who actually tilled the soil had ownership rights, aiming to provide agricultural land to the landless to reduce rural poverty and inequality. - Option A is incorrect: During the first phase of land reforms (1950s and 60s), ceiling laws were generally applied to individual holdings. It was only after the 1972 national guidelines that the basis for land ceilings shifted to family units. - Option D is incorrect: Land ceiling laws were not absolute and provided numerous exemptions. These typically included land used for plantations (tea, coffee, rubber), orchards, sugarcane farms, and land held by religious, educational, or charitable trusts. - Option C is incorrect: Land reforms were intended to improve productivity and equity; they did not specifically aim for, nor result in, cash crops becoming the predominant form of cultivation across the country.

  29. In the context of any country, which one of the following would be considered…

    In the context of any country, which one of the following would be considered as part of its social capitals?

    1. AThe proportion of literates in the population
    2. BThe stock of its buildings, other infrastructure and machines
    3. CThe size of population in the working age group
    4. DThe level of mutual trust and harmony in the society
    Answer and explanation

    Correct answer: D

    Option A is incorrect: Proportion of literates in the population While education is important, it's an individual skill, not a measure of social interaction or trust. Option B is incorrect: Stock of buildings This falls under physical capital, which refers to tangible assets like buildings and infrastructure. Option C is incorrect: Size of population in the working age group This is a demographic factor and doesn't tell us anything about social connections or trust. Option D is correct: Social capital refers to the intangible assets of a community or society. It's not about physical resources or demographics, but rather the quality of relationships and connections between people. Option D, the level of mutual trust and harmony, directly reflects this concept.

  30. Which Article of the Constitution of India safeguards one’s right to marry the person…

    Which Article of the Constitution of India safeguards one's right to marry the person of one's choice?

    1. AArticle 19
    2. BArticle 21
    3. CArticle 25
    4. DArticle 29
    Answer and explanation

    Correct answer: B

    Article 21: This article states that "No person shall be deprived of his life or personal liberty except according to procedure established by law." Over the years, the Supreme Court of India has expanded the scope of personal liberty to include various fundamental rights, including the right to marry a person of one's choice.

    Shamima Begum vs. State of Assam (2018): The court ruled that a woman has the right to marry a person of her choice, reinforcing that personal decisions related to marriage fall under individual autonomy and personal liberty as guaranteed by Article 21.

    Hadiya's case (Shafin Jahan vs. Asokan K.M): The Supreme Court upheld the right to marry as a fundamental right under Article 21. It ruled that an adult woman is free to make decisions regarding her marriage, rejecting attempts to interfere in personal choices. The court emphasized that state or societal disapproval cannot restrict an individual's right to marry.

Mains Q&A 80