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Answer & Explanation for G.S. Test-7 Held on 4 March 2018

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Answer & Explanation for G.S. Test-7 Held on 4 March 2018 Answer & Explanation for G.S. Test-7 held on 4th March 2018 1. Consider the following statements about Incremental Capital Output Ratio (ICOR): (1) It is a measurement of efficiency of any economy. (2) Higher value of ICOR indicates a more efficient economy. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Ans: (a) Exp: ICOR refers to the additional capital required to generate additional output. Thus, it reflects how efficiently capital is being used to generate additional output. For example, if the 10% additional capital is required to push the overall output by a percent, the ICOR will be 10. Annual Investment Capital ICOR = Annual Increase in GDP Lower the ICOR, the better it is. A higher ICOR indicates that the production is inefficient as it requires more capital investment to generate next unit of production. 2. Match List-I and List-II and select the correct answer using the code given below: List-I List-II (Winds) (Prevalent in) A. Harmattan 1. North America B. Fohn 2. Northern Alps C. Mistral 3. Western Africa D. Chinook 4. Rhone Valley Codes A B C D (a) 1 2 3 4 (b) 1 4 3 2 (c) 3 2 4 1 (d) 3 4 2 1 Ans: (c) Exp: 1. In West Africa, the North-East Trades, blow off-shore from the Sahara Desert and reach Guinea coast as a dry, dust laden wind called locally the Harmattan meaning ‘the doctor’. It is a dry wind which provides a welcome relief from damp air of the Guinea lands by increasing the rate of evaporation with resultant cooling effects. 2. The Fohn wind is experienced in the valleys of the northern Alps. It is a dry and hot wind. 3. Mistral is a cold wind in the Mediterranean region rushing down the Rhone valley. In winter Mistral is most frequent. 4. The Chinook (meaning ‘the snow-eater’) winds are experienced on the eastern slopes of Rockies in USA and Canada in winter. It is also a hot wind. 3. The joint sitting of the Parliament may be convened by the President under which of the following circumstances? Page 1 of 40 (a) To pass a Money Bill when it has been passed by the Lok Sabha and rejected by the Rajya Sabha. (b) To pass an Ordinary Bill when it has been passed by one House and rejected by the other House. (c) To pass a Bill which requires 2/3rd majority of both the Lok Sabha and the Rajya Sabha. (d) To pass a Constitutional Amendment Bill. Ans: (b) Exp: The President can call joint sessions of the Parliament if a Bill passed by one House is rejected by the other House or if the amendments proposed to a Bill by one House are not acceptable to the other House, does not take any action on a Bill remitted to it for six months. But no joint sitting can be summoned to resolve a deadlock in case of a Money bill or a Constitutional Amendment. 4. In nuclear reactors, nuclear fission is due to which of the following? (a) Absorption of protons (b) Absorption of neutrons (c) Absorption of electrons (d) Emission of neutrons Ans: (b) Exp: The fission of radioactive element in nuclear reactors is triggered by the absorption of a low energy neutron often termed a “slow neutron” or a “Thermal neutron”. 5. Consider the following leaders: (1) V.V.S Iyer (2) M.N Roy (3) Madam Bhikaji Cama (4) M. Barkatullah Who among the above were prominent revolutionaries operating outside India during the Indian National Movement? (a) 1, 2 and 3 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2, 3 and 4 Ans: (d) Exp: V. V. S. Aiyar, was an Indian revolutionary from Tamil Nadu who fought against the British occupation of India. Aiyar's militant attitude prompted the British Raj in 1910 to issue a warrant for his arrest for his alleged involvement in an anarchist conspiracy in London and Paris. M.N. Roy joined an underground organization, Anushalin Samiti at the age of 14 and became a militant activist and also helped in organizing Jugantar Group under the leadership of Jatin Mukherji. He went to Europe in 1915 to organize an armed revolution against British Imperial rule in India, but he failed. Later, in 1916 he moved to San Francisco. Page 2 of 40 Madam Bhikaji Cama was an eminent personality in the Abhinav Bharat society of the Indians residing in Europe. Her headquarters were in Paris and that was the meeting place of young revolutionaries like Hardayal and Shaklatvala. Mohamed Barakatullah fought from outside India, with fiery speeches and revolutionary writings in leading newspapers, for the independence of India. He was one of the founders of the Ghadar Party in 1913 at San Francisco. Later he became the first prime minister of the Provisional Government of India established on 1 December 1915 in Kabul with Raja Mahendra Pratap as its president. 6. Consider the following statements about oceanic pollution: (1) Dead Sea zones in the oceans are areas of excessive salinity where aquatic life cannot sustain. (2) Oceanic acidification is caused by increased levels of carbon dioxide in the oceans. (3) Eutrophication of oceans results in an increase in the primary productivity. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 2 only (d) 1, 2 and 3 Ans: (b) Exp: Dead zones are hypoxic (low oxygen) areas in the world’s ocean. These occur near inhabited coastlines where aquatic life is most concentrated. The vast middle portions of the oceans, which naturally have little life, are not considered “Dead Zones.” Ocean acidification is the ongoing decrease in the pH of the oceans, caused by the uptake of carbon dioxide (CO2) from the atmosphere. Eutrophication, is the enrichment of a water body with nutrients, usually with an excess amount of nutrients. This process induces growth of plants and algae (i.e. increases primary productivity) and due to the biomass load, may result in oxygen depletion of the water body. 7. In which of the following States of India crop colonies are being established to attain self- sufficiency in food and vegetable production in drought prone areas? (a) Maharashtra (b) Telangana (c) Andhra Pradesh (d) Madhya Pradesh Ans: (b) Exp: The Telangana government is set to launch the ambitious crop colonies project. There are plans to create 54 crop colony clusters in the State including vegetable crop colonies. A crop colony is meant to grow a particular crop in a given village or a cluster of villages. The idea is to ensure that adequate quantities of various crops including vegetables are grown in the State to meet the demand for food grains and pulses among other commodities. 8. Consider the following statements: (1) Hepatitis A, Hepatitis B, and Hepatitis C are diseases caused by different bacteria. (2) Hepatitis B is a transmissible disease — it spreads the same way as HIV. (3) Hepatitis is primarily the infection of stomach and intestines. Page 3 of 40 Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 only (c) 1, 2 and 3 (d) None of the above Ans: (b) Exp: Hepatitis A, Hepatitis B, and Hepatitis C are diseases caused by three different viruses. Hepatitis is primarily the infection of liver. 90% of the cases of Hepatitis B transmit via vertical transmission from mother to child in perinatal period. The remaining cases are transmitted through intravenous drug users, people having multiple sex partners, infected and unscreened blood products, tattoo needles. 9. Which of the following is/are instruments of qualitative credit control in Monetary Policy? (1) Bank Rate (2) Open Market Operations (3) Consumer Credit Regulation (4) Rationing of credit (5) Margin requirements Select the correct answer using the code given below: (a) 1 and 2 only (b) 2, 3 and 4 only (c) 4 and 5 only (d) 3, 4 and 5 only Ans: (d) Exp: Bank rate and open market operations are instruments of quantitative credit control. The qualitative or selective methods of credit control are adopted by the Central Bank in its pursuit of economic stabilisation and as part of credit management. (i) Margin Requirements: The commercial banks generally advance loans to their customers against some security or securities offered by the borrower and acceptable to banks. Generally, the commercial banks do not lend up to the full amount of the security but lend an amount less than its value. Margin requirement is the minimum amount of money that a client must have on deposit, either in cash or approved securities, to access a loan. The margin requirements against specific securities are determined by the Central Bank. A change in margin requirements will influence the flow of credit. A rise in the margin requirement results in a contraction in the borrowing value of the security and similarly, a fall in the margin requirement results in expansion in the borrowing value of the security. (ii) Credit Rationing: Rationing of credit is a method by which the Central Bank seeks to limit the maximum amount of loans and advances and, also in certain cases, fix ceiling for specific categories of loans and advances. (iii) Regulation of Consumer Credit: Regulation of consumer credit is designed to check the flow of credit for consumer durable goods. This can be done by regulating the total volume of credit that may be extended for purchasing specific durable goods and regulating the number of instalments through which such loan can be spread.
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