Answer Key & Exp for GS Prelim Test-4 Held on 9 Th Dec' 2018
Answer Key & Exp for GS Prelim Test-4 held on 9th Dec’ 2018
1. Consider the following pairs:
Indian Founders States 1 Hyderabad : Nizam-ul-Mulk 2 Bengal : Saadat Ali Khan 3 Awadh : Murshid Quli Khan
Which of the pairs given above is/are correctly matched? (a) 1 only (b) 1 and 3 only (c) 2 and 3 only (d) None of the above
Answer: (a) Explanation: Pair 1 is correctly matched - Regional States came into existence due to weakening of the power of successive Mughal emperors after Aurangzeb. So, a large number of independent and semi-independent powers emerged like Hyderabad, Bengal and Awadh etc. Nizam-ul-Mulk founded the State of Hyderabad in 1724 when he got disgusted with the inefficient Mughal emperor Muhammad Shah (1719-1748). Pair 2 is incorrectly matched - At Bengal, it was Murshid Quli Khan who made Bengal virtually independent from the Mughal empire. Initially, Murshid Quli Khan was made the Governor or Subahdar in 1717 and since then he took gradual steps to make Bengal an independent State. Pair 2 is incorrectly matched - Awadh was founded by Sadaat Khan Burhan-ul-Mulk who was appointed the Governor of Awadh in 1722. Source: Vajiram and Ravi Modern Indian History book, Chapter 1, Pages 8, 9 and 10.
2. In the context of Medieval Indian history, which of the following reason/reasons can be attributed to the downfall of Mughal empire? (1) Agrarian Crisis (2) Jagirdari Crisis (3) Rise of new power centres Select the correct answer using the code given below: (a) 1 only (b) 1 and 2 only (c) 3 only (d) 1, 2 and 3
Answer: (d) Explanation:
Prelim IAS Test Series (2019) – GS Test 3 (9.12.2018) History, Economy and Current Affairs (June 2018) 1
Statement 1 is correct - Downfall or disintegration of the Mughal empire was the process which was set in during the final years of reign of Aurangzeb (1658-1707). Many reasons are put forward by historians for the downfall. According to Dr. Irfan Habib, the Agrarian Crisis contributed to the downfall of the empire. According to him the revolts and rebellions during Aurangzeb's reign like the Jat and Satnami revolts were an outcome of the Agrarian Crisis. According to another historian, Kafi Khan, famines in the later half of the 17th Century damaged agriculture worsening the Agrarian Crisis. Statement 2 is correct - The Agrarian Crisis also resulted in the Jagirdari Crisis which meant inadequate availability of good jagirs. Jagirs were the piece of land given to Mansabdars in lieu of salary. Due to Jagirdari Crisis the Mughal court became a battle ground to influence the emperor to grant good Jagir resulting in decreasing attention to military needs of the empire. Statement 3 is correct - According to the Revisionist Theory, disintegration of Mughal empire was the result of rise of new centres of power like semi-independent and independent States. Prominent among these were the States like Bengal, Hyderabad and Awadh. Weak centre at Delhi due to inefficient rulers made rise of such centres a rather easier process. Source: Vajiram and Ravi Modern Indian History book, Chapter 1, Pages 5, 6 and 7.
3. With reference to Raja Ranjit Singh of Punjab, consider the following statements: (1) He belonged to the Sukerchakia Misl. (2) His army was regarded as the second-most powerful army in Asia at that time. (3) Modern foundries for canon manufacturing were set up at Lahore. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3
Answer: (d) Explanation: Statement 1 is correct - Ranjit Singh was the ruler of Punjab who came to power at the end of 18th century. The Misls were confederacies of Sikhs and there were 12 such Misls. Ranjit Singh belonged to the Sukerchakia Misl. Statement 2 is correct - Ranjit Singh built a powerful, disciplined and well equipped army along the European lines. His army was considered to be the second strongest army in Asia after the British army in India. Ranjit Singh maintained the diversity in his army by recruiting soldiers of other religions like Islam and also soldiers from diverse regions such as present day Odisha and Nepal. Statement 3 is correct - Modern foundries were set up at Lahore to manufacture cannon. Source 1: Vajiram and Ravi Modern Indian History book, Chapter 1, Page number 14 2: Modern India NCERT, Page number 20
4. Which of the following statements does not apply to the impact of the Portuguese on India in the 15th and 16th century? (a) Introduction of new crops like tobacco and cashew nuts
Prelim IAS Test Series (2019) – GS Test 3 (9.12.2018) History, Economy and Current Affairs (June 2018) 2
(b) Popularising printing in India (c) Made India familiar with European art (d) Introduction of naval force in India
Answer: (d) Explanation: Statements (a) and (c) are correct - Growing trade between India and Europe by the Portuguese led to popularisation of Indian goods in Europe and also led to infusion of European culture into India. The Portuguese introduced new crops like tobacco and cashew nuts. Statement (b) is correct - With the coming of Missionaries to spread Christianity along with the Portuguese traders there began the use of printing to propagate values and teachings of Christianity. The printing machine was thus introduced in India at Goa by these Missionaries around the middle of 16th century. Statement (d) is incorrect - Even before the advent of the Portuguese, India had a history of the use of naval force. The most prominent example is that of the Cholas who with their mighty Navy had conquered Sri Lanka, Maldives and also some South East Asian countries. Source: Spectrum’s Modern India, Chapter 3.
5. With reference to the Dutch East India Company, which among the following best describes the ‘Redistributive Trade’? (a) Trade carried out with India and Europe (b) Promotion of Slave trade by the Dutch (c) Trade between India, East Asia and Europe by the Dutch East India Company. (d) Trade carried by the Dutch East India Company between India and China dealing with tea and opium.
Answer: (c) Explanation: Option (c) is correct - Redistributive or carrying trade was carried out by European trading companies like the Dutch East India Company. This involved buying goods from one country and using these goods to purchase items from another country. The Dutch Company would buy Indigo from Indonesia and would sell Indian textiles to Indonesians. The Indigo was then exported to Europe. This was an intra Asian and Euro-Asian trade. Value addition: The Dutch made Batavia in Indonesia as their main trading post and carried out redistributive trade or the Batavian trade. Source: Spectrum’s Modern India, Chapter 3.
6. Which of the following factors can be attributed towards success of the English East India Company (EIC) compared to the other European companies in gaining control over India? (1) Naval superiority (2) Industrial Revolution in Britain (3) Stable Government in Britain
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(4) Accountability and Professionalism in the working of the English EIC Select the correct answer using the code given below: (a) 1 and 2 only (b) 2 and 4 only (c) 1, 2 and 3 only (d) 1, 2, 3 and 4
Answer: (d) Explanation: The English East India Company gained decisive victories over other European companies owing to factors like naval superiority, Industrial Revolution, Stable Government in Britain and Accountability and Professionalism in working of English company. Statement 1 is correct - The Royal Navy of Britain was the largest and the most advanced at that time which made the English quite powerful overseas. This helped the English defeat the Portuguese and the French in India. Statement 2 is correct - Industrial Revolution which first took place in England also contributed to the success of the English. Industrial Revolution made England the dominant country in trade and commerce and also allowed England to earn revenue by supplying cheaper factory made goods over costlier handicrafts in Asia particularly in India. Statement 3 is correct - A stable government in England compared with political instability in other European nations like France made the English Company sustain for longer period than other Companies. Strong Government support, both militarily and financially, allowed the English company to gradually become masters of India. Statement 4 is correct - The English Company was controlled by a Board of Directors and there was least government interference. Trading Companies like the French were largely owned by the State reducing the required autonomy for the Company format of doing business and dealing with political situations. Professionalism imbibed in the English Company also made them gain success over their rivals. Source: Spectrum’s Modern India, Chapter 3, page number 58 and 59.
7. The Barrackpore Mutiny was a rising of the native Indian sepoys against their British officers in Barrackpore. This incident occurred during which war? (a) The First Anglo - Burmese war (b) The Second Anglo - Burmese war (c) The Third Anglo - Burmese war (d) The Anglo - Nepal war
Answer: (a) Explanation: First option is correct - Barrackpore Mutiny was an incident during the First Anglo- Burmese War (1824–26), and is generally regarded as a dress rehearsal for the Indian Mutiny of 1857 because of its similar combination of Indian grievances against the British, caste feeling, and the ineptitude of its handling.
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The First Anglo-Burmese War (1824–26) began primarily over the control of north- eastern India, and ended in a decisive British victory, and through the Treaty of Yandaboo in December 1824 gave the British total control of Assam, Manipur, Cachar and Jaintia as well as Arakan province and Tenasserim. The British army remained in the territories surrendered to it under the Treaty of Yandaboo and in the territories such as the Rangoon area which were occupied for several years in guarantee of the financial terms of the treaty. The British would make two more wars against the much weaker Burmese, the Second Anglo - Burmese war in 1852 and the Third Anglo - Burmese war 1885 swallowing up entire Burma by 1885. Dehra Dun was a potentially thriving entrepot for Trans-Himalayan trade. Annexing Garhwal with the view to secure commercial communications with the wool-growing areas and annexing Kumaon which provided a better facility for trade with Tibet became part of the British strategic objective. The "illegal" occupation from 1804 till 1812 of the Terai of Butwal by the Nepalese, which was under British protection, was the immediate reason which led to the Anglo-Nepal war in 1814. The Nepalese were defeated and Treaty of Sugauli was signed and Nepal lost Sikkim (including Darjeeling), the territories of Kumaon and Garhwal, and most of the lands of the Terai to the British. The greatest legacy of the Anglo Nepalese war is the continuing recruitment of Gorkhas into the British and Indian armies. Source: Vajiram and Ravi Modern Indian History book, Chapter 3, Page no. 42 and 44
8. In the context of the Constitutional development in India, which of the following provisions is related to the Charter Act of 1813? (a) Local representation was introduced in the Indian legislature for the first time. (b) The constitutional position of the British territories in India was defined explicitly for the first time. (c) Indian laws were provisioned to be codified and consolidated. (d) Steps towards abolition of slavery were to be taken.
Answer: (b) Explanation: Option (b) is correct - The Charter Act of 1813 was also called the East India Company Act, 1813. This Act is important as it defined for the first time the constitutional position of the British Indian territories. This Act asserted the Crown’s sovereignty over British possessions in India. The Company’s rule and trade monopoly in India was extended to another 20 years. Monopoly was ended except for the trade in tea and with China. Another important feature of this Act was to grant permission to the missionaries to come to India and engage in religious proselytization. The missionaries were successful in getting the appointment of a Bishop for British India with his headquarters at Calcutta in the provisions of the Act. Option (a) is incorrect - The Charter Act 1853 was passed in the British Parliament to renew the East India Company’s charter. Unlike the previous Charter Acts of 1793, 1813 and 1833 which renewed the charter for 20 years; this Act did not mention the time period for which the Company's charter was being renewed. This Act was passed when Lord
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Dalhousie was the Governor-General of India. Local representation was introduced for the first time in Central Legislative Council by this Act. Options (c) and (d) are incorrect - The Charter Act of 1833 was passed in the British Parliament which renewed the East India Company’s charter for another 20 years. This was also called the Government of India Act 1833 or the Saint Helena Act 1833. The Governor-General of Bengal was re-designated as the Governor-General of India. This made Lord William Bentinck the first Governor-General of India. As per the Act, an Indian Law Commission was established. The first Law Commission had Lord Macaulay as its Chairman. It sought to codify all Indian laws. The Act provided for the mitigation of slavery existing in India at that time. The British Parliament abolished slavery in Britain and all its possessions in 1833. Source: Vajiram and Ravi Modern Indian History book, Chapter 3, page no. 46 and 50.
9. Consider the following pairs:
Occasion Governor- General 1. Annexation of Sindh : Lord Harding I 2. General Service Enlistment Act : Lord Canning 3. Abolition of human sacrifice : Lord Bentinck 4. Widow Remarriage Act : Lord Dalhousie
Which of the pairs given above are correctly matched? (a) 1 and 4 only (b) 1 and 3 only (c) 2 and 3 only (d) 2 and 4 only
Answer: (d) Explanation: Pair 1 is incorrect - The conquest of Sindh occurred as a result of the growing Anglo- Russian rivalry and the consequent British fears that Russia might attack India through the North-west region. Also, the commercial possibilities of the river Sindh were an additional attraction. Lord Ellenborough, Auckland’s successor sent Sir Charles Napier with full civil and military power to Sindh in September 1842, to take control of all British Indian troops. Sindh was annexed in 1843 after a brief campaign by Sir Charles Napier. Pair 2 is correct - The changes in military introduced in 1820s prohibited the sepoys from observing their customary practices like wearing a saffron mark on the forehead, wearing a turban or growing beard. The presence of Christian missionaries and chaplains also led to rumours of proselytising activities by them. All this was seen as interference in religious
Prelim IAS Test Series (2019) – GS Test 3 (9.12.2018) History, Economy and Current Affairs (June 2018) 6 affairs of Hindus and Muslims alike. Another grievance was regarding serving in British forces abroad. The sepoys refused to serve in Burma as, according to them, it meant loss of caste as they were not supposed to cross sea. This led to passing of General Service Enlistment Act in 1856 by Lord Canning which forced the sepoys to give an undertaking that they would serve anywhere their services are required by the government. Pair 3 is incorrect - Abolition of human sacrifice was done under Lord Harding I. Pair 4 is correct - The Hindu Widows' Remarriage Act, 1856, also Act XV, 1856, enacted on 26 July 1856, legalized the remarriage of Hindu widows in all jurisdictions of India under the East India Company rule. To protect what it considered family honour and family property, upper-caste Hindu society had long disallowed the remarriage of widows, even child and adolescent ones, all of whom were expected to live a life of austerity and abnegation. The Hindu Widows' Remarriage Act of 1856, enacted in response to the campaign of Pundit Ishwar Chandra Vidyasagar, provided legal safeguards against loss of certain forms of inheritance for remarrying a Hindu widow. Lord Dalhousie was the Governor-general at this time. Source: Vajiram and Ravi Modern Indian History book, Chapter 3, Page no. 49, 50 and 53.
10. With reference to the British role in Indian education system, consider the following statements: (1) According to Macaulay’s Minutes, only English language was to be used in teaching western science and literature (2) The Wood's Despatch rejected Downward Filtration theory (3) The Wood’s Despatch stressed on female education and teachers training Which of the statements given above are correct? (a) 1 and 2 only (b) 1 and 3 only (c) 2 and 3 only (d) 1, 2 and 3
Answer: (d) Explanation: Statement 1 is correct - Macaulay's Minutes refer to his proposal of education for the Indians. According to him – English education should be imparted in place of traditional Indian learning because oriental culture was ‘defective’ and ‘unholy’. He believed in educating a few upper and middle class students. In course of time, education would trickle down to the masses. This was called downward filtration theory Statement 2 is correct - The principle of Downward Filtration Theory was discarded by the Wood's Despatch. It recommended the establishment of both government and indigenous schools to promote mass education. Statement 3 is correct - Wood’s Despatch, 1854 - It is considered the “Magna Carta of English Education in India” and contained comprehensive plan for spreading education in India.
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It states the responsibility of State for the spread of education to the masses. It recommended hierarchy in education levels - At the bottom, vernacular primary school; at district, Anglo-vernacular high schools and affiliated college; at highest level affiliated universities of Calcutta, Bombay and Madras Presidency. It recommended English as a medium of instruction for higher studies and vernacular at the school level. The Wood’s Dispatch stressed on female education and teachers training. Source: Vajiram and Ravi Modern Indian History book, Chapter 3, Page no. 46-50, 76 and 77.
11. Match the following recommendations with their Committees:
Recommendation Committee A Responsible government at both 1 Karachi Congress Session Centre and the States level B Representative government in 2 Simon Commission Provinces with autonomy C Right to make salt in coastal villages 3 Nehru Report for personal consumption D Free and compulsory primary 4 Gandhi - Irwin Pact education
Select the correct answer using the code given below: Codes A B C D (a) 1 3 2 4 (b) 2 4 1 3 (c) 3 2 4 1 (d) 4 1 3 2
Answer: (c) Explanation: Karachi Session - In 1931, the Congress met at Karachi. It approved the Gandhi-Irwin Pact. The most significant contribution of the Karachi session was a resolution it passed on Fundamental Rights which included free and compulsory primary education and Economic planning. It outlined the plan for the reconstruction of Indian society after Independence and to furnish many aims and ideals for the Constitution of India and the social and economic policy of the Indian Republic. Simon Commission, group appointed in November 1927, consisted of seven members (all white) - four Conservatives, two Labourites, and one Liberal - under the joint chairmanship of the distinguished Liberal lawyer, Sir John Simon, and Clement Attlee, the future British Prime Minister. Its composition met with a storm of criticism in India because Indians were excluded. Regarded as a classic state document, the report proposed provincial autonomy in India but rejected parliamentary responsibility at the centre. It accepted the idea of federalism and sought to retain direct contact between the British crown and the Indian states. Before its publication its conclusions had been outdated by
Prelim IAS Test Series (2019) – GS Test 3 (9.12.2018) History, Economy and Current Affairs (June 2018) 8 the declaration of October 1929, which stated that dominion status was to be the goal of Indian constitutional development. Nehru Report - Features of Nehru Report (1928): India should be given dominion status, with a parliamentary form of Government. There should be a bicameral legislature consisting of a Senate and the House of Representatives. The Senate will comprise of two hundred members elected for seven years, while the House of Representatives should consist of five hundred members elected for five years. The Governor-General will act on the advice of the Executive Council. It shall be collectively responsible to the Parliament. There should be a federal form of government in India, with residuary powers to be vested in the Centre. There will be no separate electorate for minorities. The system of weightage shall not be adopted for any province. There would be no reserved seats for communities in Punjab and Bengal. However, reservation of Muslim seats could be possible in the provinces where Muslim population would be at least ten percent. The Judiciary should be independent from the Executive. There should be 1/4th Muslim representation at the Centre. Sindh should be separated from Bombay, provided it proves to be financially self- sufficient. Reforms shall be introduced in the NWFP. Gandhi-Irwin Pact - Gandhi-Irwin Pact, agreement signed on March 5, 1931, between Mohandas K. Gandhi, leader of the Indian nationalist movement, and Lord Irwin, British viceroy (1926–31) of India. It marked the end of a period of civil disobedience (Satyagraha) in India against British rule that Gandhiji and his followers had initiated with the Salt March (March–April 1930) and Gandhiji agreed to attend the Second Round Table Conference. According to one of the provisions of this Pact the right to make salt in coastal villages for personal consumption was provided for. Source: Vajiram and Ravi Modern Indian History book, Chapter 9, Page no. 201-209
12. Consider the following pairs about the authors and pamphlets/books written by them:
1. S.A. Dange : Gandhi and Lenin 2. Muzaffar Ahmad : Navyug 3. Ghulam Hussain : Langal
Which of the pairs given above is/are correctly matched? (a) 2 and 3 only (b) 1 and 2 only (c) 1 and 3 only (d) 3 only
Answer: (b) Explanation:
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Pair 1 is correct – Shripad Amrit Dange (10 October 1899 – 22 May 1991) was a founding member of the Communist Party of India (CPI) and a stalwart of Indian trade union movement. In 1921, Dange published a pamphlet titled Gandhiji vs. Lenin, a comparative study of approaches of both the leaders; but, Lenin coming out as better of the two. This work proved to be a turning point in Dange's life. Pair 2 is correct – Muzaffar Ahmad (5 August 1889 – 18 December 1973) was a noted Indian Bengali politician, journalist and communist activist, popularly known as "Kakababu". Muzaffar Ahmed brought out “Navyug” and later founded the “Langal” in cooperation with the poet Nazrul Islam. Pair 3 is incorrect – In Punjab, Ghulam Hussain and other published “inquilab”. Source: Vajiram and Ravi Modern Indian History book, Chapter 9, Page no. 193
13. Muhammad Ali Jinnah gave his 14 demands to safeguard the political rights of Muslims in a self-governing India. Which of the following were included in the demand? (1) A federal Constitution with residual powers to provinces (2) Full religious liberty to Muslim, Sikhs and other minorities (3) Separation of Sindh from Bombay province Select the correct answer using the code given below: (a) 1 and 2 only (b) 1 and 3 only (c) 2 and 3 only (d) 1, 2 and 3
Answer: (d) Explanation: The Fourteen Points of Jinnah was a constitutional reform plan to safeguard the political rights of Muslims in a self-governing India. Statement 1 is correct - The form of the future Constitution should be federal, with the residuary powers vested in the Provinces Statement 2 is correct - Full religious liberty, i.e. liberty of belief, worship and observance, propaganda, association and education, shall be guaranteed to all communities. Statement 3 is correct - Sindh should be separated from the Bombay Presidency. The Fourteen Points 1. The form of the future Constitution should be federal, with the residuary powers vested in the provinces; 2. A uniform measure of autonomy shall be guaranteed to all provinces; 3. All Legislatures in the country and other elected bodies shall be constituted on the definite principle of adequate and effective representation of minorities in every province without reducing the majority in any province to a minority or even equality; 4. In the Central Legislature, Muslim representation shall not be less than one third; 5. Representation of communal groups shall continue to be by means of separate electorate as at present: provided it shall be open to any community, at any time to abandon its separate electorate in favour of a joint electorate. 6. Any territorial distribution that might at any time be necessary shall not in any way affect the Muslim majority.
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7. Full religious liberty, i.e. liberty of belief, worship and observance, propaganda, association and education, shall be guaranteed to all communities. 8. No bill or resolution or any part thereof shall be passed in any legislature or any other elected body if three fourths of the members of any community in that particular body oppose it as being injurious to the interests of that community or in the alternative, such other method is devised as may be found feasible and practicable to deal with such cases. 9. Sindh should be separated from the Bombay Presidency. 10. Reforms should be introduced in the North West Frontier Province and Balochistan on the same footing as in the other provinces. 11. Provision should be made in the constitution giving Muslims an adequate share, along with the other Indians, in all the services of the state and in local self-governing bodies having due regard to the requirements of efficiency. 12. The constitution should embody adequate safeguards for the protection of Muslim culture and for the protection and promotion of Muslim education, language, religion, personal laws and Muslim charitable institutions and for their due share in the grants- in-aid given by the state and by local self-governing bodies. 13. No cabinet, either central or provincial, should be formed without there being a proportion of at least one-third Muslim ministers. 14. No change shall be made in the constitution by the Central Legislature except with the concurrence of the States constituting of the Indian Federation. Source – Vajiram and Ravi Modern Indian History book, Chapter 9, Page 203
14. Which of the following State was related to Cunningham Circular during the Civil Disobedience Movement of 1930? (a) Central Provinces (b) Manipur and Nagaland (c) Punjab (d) Assam
Answer: (d) Explanation: Cunningham Circular played a very important role in shaping the freedom struggle in Assam. While the entire country was getting ready for the start of the Civil Disobedience Movement in 1930, students in Assam played a key role in the freedom struggle. The Cunningham Circular added fuel to fire. J.R. Cunningham, the then powerful director of public information of Assam, issued a Circular in 1930 imposing a blanket ban on any anti- British and pro-swadeshi activity by students. He also ordered them to sign an undertaking to the effect that they would have to quit their schools and colleges if they participated in anti-government demonstrations or movements. Source – Vajiram and Ravi Modern Indian History book, Chapter 9, Page 208
15. Consider the following statements: (1) In the late 18th century, the Calcutta Madrasa and the Sanskrit College were established to provide regular supply of educated Indians in administration of law in the Company's court.
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(2) Fort William College was set up for training of civil servants of the Company in languages and customs of Indians. 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
Answer: (c) Explanation: Statement 1 is correct: The Calcutta Madrasa and the Sanskrit College were designed to provide a regular supply of qualified Indians to help the administration of law in the Company’s court, and the knowledge of classical languages and vernaculars was useful in correspondence with Indian states. The Calcutta Madrasa was established by Warren Hastings in 1781 for the study of Muslim law and related subjects. The Sanskrit College was established by Jonathan Duncan, the resident, at Benaras in 1791 for study of Hindu law and philosophy. Statement 2 is correct - Fort William College was set up by Wellesley in 1800 for training of civil servants of the Company in languages and customs of Indians (closed in 1802, and transferred to Haileybury in 1809).
Source: Spectrum’s “A brief history of Modern India”- Chapter 30, page no. 632
16. Which of the following Act had been the earliest effort for encouraging learning and promoting knowledge of modern sciences in the country by the British? (a) The Regulating Act, 1773 (b) Pitt’s India Act, 1784 (c) The Charter Act, 1813 (d) The Charter Act, 1833
Answer: (c) Explanation: The Charter Act of 1813, for the first time, incorporated the principle of encouraging learned Indians and promoting knowledge of modern sciences in the country. The Act directed the Company to sanction one lakh rupees annually for this purpose. However, even this petty amount was not made available till 1823, mainly because of the controversy raged on the question of the direction (Orientalist-Anglicist controversy) that this expenditure should take. Key provisions of the Charter Act of 1813: The act provided for a financial grant towards the revival of Indian literature and the promotion of science. The company was also to take up a greater role in the education of the Indians under them. It was to set aside Rs.1 Lakh for this purpose. Source – Vajiram and Ravi Modern Indian History book, Chapter 4, page no. 75
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17. Which of the following are factors responsible for the rise of reform movements in India during the 19th century? (1) Spread of education and awareness of the world (2) Depressing position of women (3) Caste hierarchy (4) Rising wave of nationalism during the late 19th century (5) Presence of colonial government Select the correct answer using the code given below: (a) 1, 2 and 3 only (b) 1, 4 and 5 only (c) 1, 2, 3 and 5 only (d) 1, 2, 3, 4 and 5
Answer: (d) Explanation: The advent of 19th century witnessed the birth of a new vision - Renaissance, a process of reawakening. Factors which gave rise to reform movement: Impact of British Rule: The presence of a colonial government on Indian soil played a complex, yet decisive role in this crucial phase of modern Indian history. British rule came at a time when India, in contrast to an enlightened Europe of the eighteenth century affected in every aspect by science and scientific outlook, presented the picture of a stagnant civilisation and a static and decadent society. Social condition: Various ills plaguing Indian society like obscurantism, superstition, polytheism, idolatry, degraded position of women, exploitative caste hierarchy presented a condition for the rise of reform movement. Opposition to western culture: The establishment of colonial rule in India was followed by a systematic attempt to disseminate colonial culture and ideology as the dominant cultural current. New Awareness among Enlightened Indians: The impact of modern Western culture and consciousness of defeat by a foreign power gave birth to a new awakening. There was an awareness that a vast country like India had been colonised by a handful of foreigners because of weaknesses within the Indian social structure and culture. Rising tide of nationalism and democracy: During the last decades of the nineteenth century, the rising tide of nationalism and democracy also found expression in movements to reform and democratise the social institutions and religious outlook of the Indian people. Source: Spectrum’s “A brief history of Modern India”- Chapter 8, page no. 209, 210, 211, 212.
18. Consider the following socio-religious movements: (1) Brahmo Samaj (2) Arya Samaj (3) Aligarh Movement (4) Ramkrishna Movement
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(5) Deoband Movement Which of the movements given above is/are NOT reformist? (a) 2 only (b) 2 and 5 only (c) 1, 3 and 4 only (d) 2, 4 and 5 only
Answer: (b) Explanation: The socio-religious reform movements could broadly be classified into two categories - The reformist movements were led by the Brahmo Samaj, the Prarthana Samaj, the Aligarh Movement, Satya Shodak Samaj, Young Bengal Movement and Ramakrishna mission. Option (b) is correct - the revivalist movements were led by Arya Samaj and the Deoband movement. The Reformists tried to change the prevalent values to inculcate new and modern ones while the Revivalists tended to revert back to the old pristine and pure form of religion which was devoid of imperfections introduced in the later centuries. The Reformist as well as the Revivalist movement depended, to varying degrees, on an appeal to the lost purity of the religion they sought to reform. The only difference between one reform movement and the other lay in the degree to which it relied on tradition or on reason and conscience. Source: Vajiram and Ravi Modern Indian History book, Chapter 4, page no. 62
19. Match List-I with List-II and select the correct answer using the code given below:
List-I (Books) List-II (Author) A. The Evolution of Provincial Finance in 1. Jyotiba Phule British India B. A Gift to Monotheists 2. Dayanand Saraswati C. Gulamgiri 3. Dr. B. R. Ambedkar D. Satyarth Prakash 4. Raja Ram Mohan Roy
Codes A B C D (a) 2 4 3 1 (b) 4 1 3 2 (c) 1 4 3 2 (d) 3 4 1 2
Answer: (d) Explanation: The Evolution of Provincial Finance in British India: Dr. B. R. Ambedkar was awarded scholarship to study at Columbia University by the Maharaja of Baroda. Columbia
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University had awarded him the PhD for his thesis, which was later published in a book form under the title “The Evolution of Provincial Finance in British India”. A Gift to Monotheists: Raja Ram Mohan Roy wrote this in 1809. It is a translation of Vedas and Upanishads into Bengali. He utilized the discourses in these texts to support monotheism. Gulamgiri: Jyotiba Phule wrote ‘Sarvajanik Satyadharma’ and ‘Gulamgiri’, which became sources of inspiration for the common masses to oppose caste system and socio- economic inequalities. Satyarth Prakash: Dayanand Saraswati’s views were published in his famous work, Satyarth Prakash (The True Exposition). Hence, (d) is the correct answer. Source - Vajiram and Ravi Modern Indian History book, Chapter 4, page no. 63, 65, 72
20. Which of the following statements is/are correct regarding “Sree Narayana Guru Swamy”? (1) He belonged to the Ezhava caste of Kerala. (2) He started the Aruvippuram Movement. (3) He was against all religions of the world and had a secular approach towards achieving equality in the society. Select the correct answer using the code given below: (a) 1 only (b) 1 and 2 only (c) 2 and 3 only (d) 1, 2 and 3
Answer: (b) Explanation: Sree Narayana Guru Swamy (1856-1928) had started the “Sree Narayana Guru Dharma Paripalana (SNDP) Movement” among the Ezhavas of Kerala, who were a backward caste of toddy-tappers and were considered to be untouchables, denied education and entry into temples. The Ezhavas were the single largest caste group in Kerala constituting 26% of the total population. Statements 1 and 2 are correct - He, himself from the Ezhava caste, took a stone from the Neyyar river and installed it as a Sivalinga at Aruvippuram on Sivaratri in 1888. It was intended to show that consecration of an idol was not the monopoly of the higher castes. With this he began a revolution that soon led to the removal of many discriminations in Kerala’s society. This is known as Aruvippuram movement. This movement drew the famous poet Kumaran Asan to become a disciple of Narayana Guru. In 1889, the Aruvippuram Kshetra Yogam was formed to expand into a big organisation to help the Ezhavas to progress materially as well as spiritually. Thus, the Aruvippuram Sree Narayana Guru Dharma Paripalana Yogam (in short SNDP) was registered in 1903 under the Indian Companies Act, with Narayana Guru as its permanent chairman, and Kumaran Asan as the general secretary. Statement 3 is incorrect: Sree Narayana Guru held all religions to be the same and condemned animal sacrifice besides speaking against divisiveness on the basis of caste,
Prelim IAS Test Series (2019) – GS Test 3 (9.12.2018) History, Economy and Current Affairs (June 2018) 15 race or creed. On the wall of the Aruvippuram temple he got inscribed the words, “Devoid of dividing walls of caste or race, or hatred of rival faith, we all live here in brotherhood.” He urged the Ezhavas to leave the toddy tapping profession and even to stop drinking liquor. Source: Spectrum’s “A brief history of Modern India”- Chapter 8, page no. 249
21. With reference to the ‘Wardha Scheme of Basic Education (1937)’, consider the following statements: (1) Based on Gandhiji's ideas the Zakir Hussain Committee formulated a detailed national scheme for basic education. (2) It recommended first seven years of schooling to be free and compulsory. Which of the statements given above is/are incorrect? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
Answer: (d) Explanation:
Statement 1 is correct - The main principle behind this scheme was ‘learning through activity’. It was based on Gandhiji's ideas published in a series of articles in the weekly Harijan. Gandhiji thought that Western education had created a gulf between the educated few and the masses and had also made the educated elite ineffective. The Congress had organised a National Conference on Education in October 1937 in Wardha. In the light of the resolutions passed there, the Zakir Hussain Committee formulated a detailed national scheme for basic education. It promoted 'nai taleem' which comprised of both mental and manual labour. The scheme had the following provisions: Inclusion of a basic handicraft in the syllabus. Statement 2 is correct - First seven years of schooling to be an integral part of a free and compulsory nationwide education system (through mother tongue). Teaching to be in Hindi from class II to VII and in English only after class VIII. Ways to be devised to establish contact with the community around schools through service. A suitable technique to be devised with a view to implementing the main idea of basic education—educating the child through the medium of productive activity of a suitable handicraft. The system, rather than being a methodology for education, was an expression of an idea for a new life and a new society. The basic premise was that only through such a scheme could India be an independent and non-violent society. This scheme was child-centred and cooperative. Sources: (1) Vajiram and Ravi Modern Indian History book, Chapter 4, page no. 80 (2) Spectrum’s “A brief history of Modern India”- Chapter 30, page no. 640
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22. With respect to the Revolt of 1857, which of the following pairs of British officials and the associated battles are correctly matched?
British Official Associated Battle 1. Henry Lawrence : Lucknow 2. General John Nicholson : Delhi 3. Sir Hugh Rose : Jhansi
Select the correct answer using the code given below: (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3
Answer: (d) Explanation: All three pairs are correctly matched. List of British Officials associated with the Revolt of 1857: General John Nicholson: Captured Delhi on 20th September, 1857 (Nicholson died soon due to a mortal wound received during the fighting). Major Hudson: Killed Bahadur Shah's sons and grandsons in Delhi. Sir Hugh Wheeler: Defence against Nana Sahib's forces till 26th June, 1857. British forces surrendered on 27th on the promised of safe conduct to Allahabad. General Neil: Recaptured Banaras and Allahabad in June 1857. At Kanpur, he killed Indians as revenge against the killing of English by Nana Sahib's forces. Died at Lucknow while fighting against the rebels. Sir Colin Campbell: Final recovery of Kanpur on 6th December, 1857. Final reoccupation of Lucknow on 21 st March, 1858. Recapture of Bareilly on 5th May, 1858. Henry Lawrence: Chief Commissioner of Awadh. Who died during the seizure of British residency by rebels at Lucknow on 2nd July, 1857! Major General Havelock: Defeated the rebels (Nana Sahib's force) on 17th July, 1857. Died at Lucknow in December 1857. William Taylor and Eye: Suppressed the revolt at Arrah in August 1857. Hugh Rose: Suppressed the revolt at Jhansi and recaptured Gwalior on 20th June, 1858. The whole of Central India and Bundelkhand was brought under British control by him. Colonel Oncell: Captured Banaras. Source: Vajiram and Ravi Modern Indian History book, Chapter 7,Page 130
23. Consider the following statements regarding Ryotwari Settlement: (1) It was introduced by Thomas Munro and Alexander Reed (2) It was introduced in Madras and Bombay Presidencies (3) The revenue was fixed and could not be revised Which of the statements given above are correct?
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(a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3
Answer: (a) Explanation: Statement 1 is correct - Ryotwari settlement was the land revenue system that took shape under Alexander Reed in 1792 in Baramahal and was then extended by Thomas Munro from 1801 in the Ceded Districts. Statement 2 is correct - From 1820‟s it was extended to parts of Madras and Bombay Presidencies, East Bengal and portions of Assam and Coorg (part of present Karnataka). Statement 3 is incorrect - By the Saharanpur Rules of 1855 the Government demand was fixed on the discretion of the revenue officers at each recurring settlement. This meant that the ryot had no fixity of rental, no security against the enhancement of the rent and no adequate motive for investing in agricultural improvement. Source: Vajiram and Ravi Modern Indian History book, Page 95
24. Which of the following Act(s) was/were passed in the British Raj prior to the Revolt of 1857 and were considered as strong reason(s) for the revolt? (1) Religious Disabilities Act (2) General Services Enlistment Act (3) Arms Act (4) Vernacular Press Act Select the correct answer using the code given below: (a) 1 only (b) 1 and 2 only (c) 2, 3 and 4 only (d) 1, 2, 3 and 4
Answer: (b) Explanation: Among reasons that ignited the rebellion of 1857, these were some of the prominent ones. Choice 1 is correct - The government took decision to tax temple and mosque lands which were granted tax-free by local rulers. They also introduced legislations like Religious Disabilities Act, 1856 which modified Hindu customs. Choice 2 is correct - General Services Enlistment Act, 1856 was passed by Lord Canning which forced the sepoys to give an undertaking that they would serve anywhere their services are required by the Government. Choice 3 and 4 are incorrect - Arms Act and Vernacular Press Act were passed in 1878. Source: Vajiram and Ravi Modern Indian History book, Chapter 7, Page 121-122, 134
25. With respect to the early phase of nationalist movement, match the following pairs of newspapers and associated journalist/editor:
Newspaper Editor/Journalist
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A Amrit Bazaar Patrika 1 N.N. Sen B Sudharak 2 Dadabhai Naoroji C Indian Mirror 3 Gopal Krishna Gokhale D Voice of India 4 Motilal Ghosh
Select the correct answer using the code given below: Codes A B C D (a) 3 1 4 2 (b) 4 3 1 2 (c) 4 3 2 1 (d) 3 2 1 4
Answer: (b) Explanation: The early phase of the nationalist movement, from around 1870 to 1918, focussed more on political propaganda and awareness, formation and propagation of nationalist ideology, training, mobilisation and consolidation of public opinion. Many newspapers emerged during these years under distinguished and fearless journalists. These included: The Hindu and Swadesamitran under G. SubramaniyaAiyar The Bengalee under Surendranath Banerjee Voice of India under DadabhaiNaoroji Amrit Bazaar Patrika under Sisir Kumar Ghosh and Motilal Ghosh Indian Mirror under N.N. Sen Kesari (in Marathi) and Maharatta (in English) under BalgangadharTilak Sudharak under Gopal Krishna Gokhale Hindustan and Advocate under G.P. Verma. Source: Vajiram and Ravi Modern Indian History book, Chapter 11, Page 293
26. For Indian freedom struggle, freedom of the press was of utmost importance as it was a powerful tool to propagate political ideas. Which of the following can be considered as the contributions of Indian Press in its early phase (1870-1918)? (1) They stimulated the popular library movement. (2) They enabled political education but could not bring about political participation. (3) In these newspapers, government acts and policies were put to thorough scrutiny. (4) They acted as an institution of opposition to the Government. Select the correct answer using the code given below: (a) 1 and 2 only (b) 1 and 3 only (c) 1, 3 and 4 only (d) 1, 2, 3 and 4
Answer: (c)
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Explanation: James Augustus Hickey is considered the father of Indian press. He started the Bengal Gazette in the year 1780. Freedom of the press was of utmost importance, as it was a powerful tool to propagate political ideas. Statement 1 is correct - The main aim of these newspapers was not to make profit but to serve the public. In fact, these newspapers had a wide reach and they stimulated the popular library movement. Statement 2 is incorrect - The impact of this movement was not limited to cities and towns; these newspapers also reached remote villages, where each news item and editorial would be read and discussed thoroughly in local libraries. Thus libraries enabled not only political education but also political participation. Statement 3 is correct - In these newspapers, government acts and policies were put to thorough scrutiny. Statement 4 is correct - They acted as an institution of opposition to the Government. Source: Vajiram and Ravi Modern Indian History book, Chapter 11, Page293
27. The Vernacular Press Act was nicknamed as ‘the gagging act’ as it put severe restrictions on the freedom of the vernacular press in India. Consider the following statements regarding the Act: (1) It added to the strong public opinion against Curzon, the then viceroy. (2) The magistrate’s action against the newspaper was final and no appeal could be made in a court of law. (3) It was repealed by Lord Lytton. (4) Proceedings could not be instituted against newspaper “Som Prakash”, as it turned over night into an English newspaper. Which of the statement(s) given above is/are correct? (a) 1 and 4 only (b) 2 only (c) 2, 3 and 4 only (d) 1, 2, 3 and 4
Answer: (b) Explanation: Vernacular Press Act, 1878: It was constituted for ‘better control’ of the vernacular press and effectively punished and repressed seditious writing. The provisions of the Act are given below: The district magistrate was empowered to call upon the printer and publisher of any vernacular newspaper to enter into a bond with the Government undertaking not to cause disaffection against the government or antipathy between persons of different religions, caste, race through published material; the printer and publisher could also be required to deposit security which could be seized if the offences reoccurred. Statement 2 is correct - The magistrate’s action was final and no appeal could be made in a court of law. Statement 3 is incorrect - The law was repealed in 1881 not by Lytton but by Lytton's successor as Viceroy, Lord Ripon (governed 1880–84). However, the resentment it
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produced among Indians became one of the catalysts giving rise to India's growing independence movement. Statement 1 is incorrect - It added to the strong public opinion against Lytton, the then viceroy. Statement 4 is incorrect - Proceedings could not be instituted against Amrit Bazaar Patrika (of Ghosh brothers) as it turned overnight into an English newspaper. Source: Vajiram and Ravi Modern Indian History book, Chapter 11, Page 293-294
28. Which among the following female leaders during the times of Indian freedom struggle was/were associated with revolutionary activities? (1) Leelavati Nag (2) Suniti Choudhury (3) Prabhavati Devi (4) Preetilata Waddedar Select the correct answer using the code given below: (a) 1, 2 and 3 only (b) 1, 2 and 4 only (c) 3 and 4 only (d) 4 only
Answer: (b) Explanation: As Indian nationalism gained ground in the 20th century, women came out to participate in the freedom struggle playing more active roles. They started directly participating in the revolutionary movements. Some of the prominent female revolutionaries were: Choice 1 is correct - Leelavati Nag founded the Deepali Sangh in Dacca and later Stree Sangh. Kalpana Datta was directly involved in Chittagong armoury raids. Choice 2 is correct - Santi Ghosh and Suniti Choudhary were involved in the murder of District Magistrate of Comilla. Bina Das attempted to assassinate the Governor of Bengal. Choice 4 is correct – Preetilata Waddedar led an attack on the European club in Chittagong in 1932. Choice 3 is incorrect - Prabhavati Devi, wife of Jayaprakash Narayan, devoted her life to Gandhian work. Source: Vajiram and Ravi Modern Indian History book, Chapter 11, Page 287
29. Status of women became the main focus of the reforming agenda of the intellectuals in 19th century. Match the following organisations working for women’s cause with its founder:
Organisation Founder/Member A Bharat Stree Mahamandal 1 Lady Mehribai Tata B Women’s Indian Association 2 Ramabai Ranade C Bharat Mahila Parishad 3 Margaret Cousins D National Council of Women 4 Sarla Devi Chaudhurani
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Select the correct answer using the code given below: Codes A B C D (a) 3 1 4 2 (b) 1 2 3 4 (c) 4 3 2 1 (d) 3 2 1 4
Answer: (c) Explanation: In the early 20th century, there came into existence a number of women organisations. Bharat Mahila Parishad was the women’s wing of the National Conference inaugurated in 1905 by Ramabai Ranade. In 1910, Sarala Devi Chaudhurani established the Bharat Stree Mahamandal. The Women’s India Association (WIA) was founded by Annie Besant, Margaret Cousins and Dorothy Jinarajadasa, all three Irish women Theosophists in 1917. National Council of Indian Women was established in 1926 with Lady Mehribai Tata as its main spirit. All India Women’s conference was established in 1927 with Margaret Cousins as main inspirational figure. Source: Vajiram and Ravi Modern Indian History book, Chapter 11, Page 288
30. With respect to the working class movements in India, arrange the following events chronologically from earliest to latest: (1) All India Trade Union Congress was established (2) Trade Disputes Act was passed as a part of British coercive strategy. (3) Formation of the Communist Party of India. (4) Gandhiji established the Ahmedabad Textile Workers Association. Select the correct answer using the code given below: (a) 1-3-2-4 (b) 1-2-4-3 (c) 2-4-1-3 (d) 4-1-3-2
Answer: (d) Explanation: Initial years of 20th century starting with Swadeshi movement marked a change in attitude of nationalists towards working class movements. In 1918, the trade Union has emerged as a pressure group in a capitalist society because during this year Gandhiji helped to organise the Ahmedabad Textile Labour Association. Formation of Trade Union: On October 31, 1920, All India Trade Union Congress was founded. Lala Lajpat Rai was then became the first president and Dewan Chaman Lal was the first general secretary.
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Formation of Communist Party of India in 1925 gave a big boost to the trade union movement in India. Trade Disputes Act was passed in 1929 which mad strikes illegal in public utility services. Source: Vajiram and Ravi Modern Indian History book, Chapter 11, Page 290-291
31. Indian workers employed in the British Industries were subjected to the worst kind of exploitation. Sensitive Indians brought it out in their journals. Consider the following statements in this regard: (1) Sasipada Banerjee brought out the journal Bharat Shramjeebi for discussing their problems. (2) N.M Lokhandey started a weekly ‘Deenbandhu’ totally devoted to the cause of working class. 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
Answer: (c) Explanation: The early nationalist advocated the improvement of economic conditions of the working classes. Statement 1 is correct - In 1870, Sasipada Banerjee started a Working Man’s Club and newspaper ‘Bharat Shramjeebi’. In 1878, Sorabjee Shapoorji Bengalee drafted a bill for providing better working conditions to the labourers and tried to pass in the Bombay Legislative Council. Statement 2 is correct - In 1880, the Bombay Mill and Millhands Association was set up by Narain Meghajee Lokhanday. He also started newspaper ‘Deenbandhu’. Source: Vajiram and Ravi Modern Indian History book, Chapter 11, Page 289
32. With reference to the First Factory Act, 1881, consider the following statements: (1) The Act tried to limit the working hours for children and also fix a minimum age limit for employment in a factory. (2) The Act got wide support from early nationalists, especially moderates. 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
Answer: (a) Explanation: Statement 1 is correct. The Act prohibited the employment of children under the age of seven, limited the number of working hours for children below the age of twelve and required that dangerous machinery should be fenced properly. The Act also made
Prelim IAS Test Series (2019) – GS Test 3 (9.12.2018) History, Economy and Current Affairs (June 2018) 23 provision for one hour rest during the working period and four days leave in a month for the workers. Inspectors were appointed to supervise the implementation of these measures. Thus for the first time the British Government tried to improve the working conditions of labourers in factories. Statement 2 is incorrect. The early nationalist, especially moderates were indifferent to the labours’ cause. They believed that labour legislation would affect competitive edge enjoyed by Indian-owned industries. They also didn’t want division in the movement on basis of classes. The Factories Act 1881 and Factories Act 1891 didn’t get much support from moderates. Sources: Vajiram and Ravi Modern Indian History book, Chapter 11, Page 289-292
33. With reference to Young Bengal Movement, consider the following statements: (1) It was led by Henry Vivian Derozio. (2) The movement was mired with radical views on tradition, custom and religion. 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
Answer: (c) Explanation: Statement 1 is correct - Young Bengal Movement was launched by Henry Louis Vivian Derozio (1809-1831), who had come to Calcutta in 1826 and was appointed in the Hindu College as a teacher of English literature and History. Besides this. he edited Hesperus and Calcutta Literary Gazette. He was connected with India Gazette as well. Derozio drew round him students of the Hindu College and exercised unprecedented influence over his pupils both in and outside the class. The Young Bengal was a group of radical Bengali free thinkers emerging from Hindu College, Calcutta. They were also known as Derozians, after Henry Louis Vivian Derozio. Statement 2 is correct - Henry Louis Vivian Derozio promoted radical ideas and encouraged his pupils to question all authority. Referred to as the Young Bengal Movement, his students attacked tradition and custom and campaigned for the freedom of thought and expression. Source: NCERT, Our Past 3, Page 120
34. With reference to the Indian National Congress, consider the following statements: (1) To inculcate political awareness and spirit of nationalism. (2) To draft and petition government to introduce popular reform. (3) To establish a headquarter for movement. (4) To garner sentiment of sympathy in England towards patriotic aspiration of Indians. (5) To push forward demand for dominion status for India. Which of the above were the objectives of the Indian National Congress in its early years of formation? (a) 1 and 2 only
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(b) 1, 2 and 4 only (c) 1, 2, 3, 4 and 5 (d) 1, 2, 3 and 4 only
Answer: (d) Explanation: Indian National Movement got an impetus after the foundation of the Indian National Congress in 1885. Mr. A.O. Hume, a retired member of the Indian Civil Service, took the initiative in this direction. He appealed to the Graduates of the Calcutta University to form an association for the moral, social and political regeneration of the Indians.Aims and Objectives of the Congress Leaders from 1885 to 1905: The early phase of the National Movement was dominated by the moderate leaders like Dada Bhai Nauroji, Surendra Nath Banerjee, Ferozshah Mehta, Gopal Krishna Gokhale etc. They believed in peaceful and constitutional methods. They largely focused on: Statement 1 is correct - To inculcate political awareness and spirit of nationalism. Provide meeting grounds for exchange of ideas. Statement 2 is correct - To draft and petition government to introduce popular reform. To develop and propagate an anti-colonial nationalist ideology. Statement 3 is correct - To establish headquarter for movement. Statement 4 is correct - Later, it was that political ideas, ideology and activity of leadership of Indian National Congress should have some recognition in England. Dadabhai Naoroji spearheaded this campaign. Statement 5 is incorrect - There was no demand of dominion status for India in early days of Indian National Congress. Source: Vajiram and Ravi Modern Indian History book, Chapter 8,Page 138
35. With reference to the Partition of Bengal, consider the following statements: (1) The idea of partition of Bengal was first propounded by William Ward. (2) It was aimed at creating wedge between Hindu and Muslims (3) It led to ‘Boycott’ and ‘Swadeshi’ Movement. (4) The protest against partition was limited to Bengal. Which of the statements given above is/are correct? (a) 2 only (b) 2 and 3 only (c) 1, 2 and 3 only (d) 1, 2, 3 and 4
Answer: (c) Explanation: Statement 1 is correct. The presidency of Bengal covered the areas of Bengal, Bihar Odisha, and Assam. The idea of partition was first given by the chief commissioner William Ward in 1896. He put forward separation of Chittagong division from Bengal However his successor, Henry Cotton refuted the idea by calling it “inadvisable and impractical”.
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Statement 2 is correct. Although the government claimed that partition was purely on administrative considerations. However the partition was deliberate attempt on part of British government to create wedge among Hindu and Muslims. Statement 3 is correct. Partition sparked an extremely major political crisis. The mass resistance exploded as the Indian National Congress began the Swadeshi movement, which included boycotting British goods and institutions, organizing meetings and processions, and applying diplomatic pressure. Hitherto untouched sections of Indian society participated in these movements, providing base for later movements. Statement 4 is incorrect. The anti-partition protest in form of swadeshi and boycott extended beyond Bengal. It was led by Lala Lajpat Rai in Punjab, Saiyyed Haider Raza in Delhi, Chidambaram Pillai in Madras and Tilak in Bombay. Sources: Vajiram and Ravi Modern Indian History book, Chapter 8,Page 147-151
36. With reference to Satyagraha propounded by Gandhi, consider the following statements: (1) Satyagraha was first used by Gandhiji in Champaran as a form of protest. (2) The term ‘Satyagraha’ was coined through competition conducted in newspaper weekly ‘India Opinion’, inviting readers to suggest a name for the passive resistance campaigns. 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
Answer: (b) Explanation: Satyagrah is a term comprising two words; ‘Satya’ or truth, and ‘Agrah’ or insistence. Hence, in its loose English interpretation, Satyagrah means insistence on truth. In practice, however, Satyagrah transpired into non•violent resistance, passive resistance or civil resistance as a form of mass protest against the State. Gandhiji sometimes also referred to it as truth force or soul force. Statement 1 is incorrect - Gandhiji first used Satyagraha in South Africa during his non- violent resistance to the retrogressive Asiatic Law Amendment Ordinance introduced in the Transvaal Legislative Council. Anti-Indian laws in South Africa were dragging the law- abiding Indian settlers, a vast section of humanity, down a suicidal path after having languished for years in the African nation's political wilderness. Gandhiji did not want the lingering bitterness to continue and first called the movement Passive Resistance expressing moral outrage against the deadly cocktail of such laws. In order to differentiate it from the campaign of the suffragettes in the United Kingdom and South Africa under the banner of passive resistance Gandhiji's sharp intellect found the new term. Statement 2 is correct. It was his newspaper weekly ‘India Opinion’ through which the word Satyagraha was coined. A competition was conducted inviting readers to suggest a name for the passive resistance campaigns. Sources: (1) Vajiram and Ravi Modern Indian History book, Chapter 8, Page 182- 183.
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(2) https://indianexpress.com/article/india/125-years-of-satyagraha-today-on-june-7- mahatma-Gandhiji-was-thrown-off-a-train-in-south-africa-5207526/
37. With reference to the work of revolutionaries, consider the following:
Work Revolutionary A Philosophy of Bomb 1 Sachin Sanyal B The Renaissance in India 2 Aurobindo Ghose C Bandi Jeevan 3 Bhagwati Charan Vohra
Select the correct answer using the code given below: Codes A B C (a) 1 3 2 (b) 3 1 2 (c) 3 2 1 (d) 1 2 3
Answer: (c) Explanation: Bhagwati Charan Vohra was a revolutionary, associated with Hindustan Socialist Republican Association. He planned and executed bomb blast under the train of Viceroy Lord Irwin on the Delhi-Agra railway line. The viceroy escaped unhurt and Mahatma Gandhiji condemned the revolutionary act through his article The Cult of Bomb. In response to Gandhiji's article, Vohra, in consultation with Azad, wrote an article entitled The Philosophy of Bomb. It appealed to youths to come forward and join them. Sri Aurobindo was an Indian philosopher, yogi, guru, poet, and nationalist. He was involved in revolutionary activities. He was tried for planning Alipore Bomb conspiracy case. In his essay, “The Renaissance in India” Aurobindo Ghosh explores the meaning of India's renaissance for its national identity. Sachindra Nath Sanyal was a revolutionary and a founder of the Hindustan Republican Association. He was jailed for his involvement in the Kakori conspiracy. Bandi Jeevan is his experiences during his ‘Kalapani” at Cellular Jail in Andaman. Source: A brief History of Modern India, Spectrum’s, page 148
38. Who among the following was founder of the Dhaka Anushilan Samiti? (a) Jatindra Mukherjee (b) Sachin Sanyal (c) Pulin Behari Das (d) Hem Chandra Ghose
Answer: (c) Explanation: Pulin Behari Das was an Indian revolutionary and the founder-president of the Dhaka Anushilan Samiti. His organisation Dhaka Anushilan Samiti was involved in many
Prelim IAS Test Series (2019) – GS Test 3 (9.12.2018) History, Economy and Current Affairs (June 2018) 27 revolutionary activities across Bengal. In 1909, the organisation carried out Decca conspiracy case, in which 44 members including Pulin Das was tried. Source: Vajiram and Ravi Modern Indian History book, Chapter 8, Page 170-171
39. Consider the following statements with reference to Tribal Peasant rebellions: (1) Religion did not play any role in corroborating the ideology of rebellion. (2) These rebellions effectively surpassed a much larger area and spread to areas even beyond the territorial limit of a community. 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
Answer: (d) Explanation: Statement 1 is incorrect - In the absence of any class consciousness and ideology, religion provided an ideology for rebellion. Statement 2 is incorrect - Spread of the rebellion depended on the rebel’s own perception of space and ethnic boundary. It was most effective within the geographical area within which that community lived and worked. Source: Vajiram and Ravi Modern Indian History book, Chapter 6, Pages 102-103
40. Which of the statements given below are not a characteristic of Tribal Peasant rebellion during the colonial rule? (a) The rebels were not conscious of the political sources of oppression. (b) There were assemblies, public conferences that showed some planning. (c) Leadership was assumed from within the community itself. (d) Ideology of rebellion was based on rebel’s own perception of a golden past.
Answer: (a) Explanation: Statement 1 is incorrect - Rebels were quite conscious of the political sources of oppression which was clearly demonstrated in their targets of attacks. Statement 2 is correct - There was a scheme of program as public conferences, assemblies were planned. Statement 3 is correct - Leadership of the peasants came from the ranks of the rebels themselves. Statement 4 is correct - An urge for the restoration of the imagined golden past provided an ideology for peasant action. Source: Vajiram and Ravi Modern Indian History book, Chapter 6, Pages102-103
41. Consider the following statements regarding the role of the Reserve Bank of India (RBI): (1) The RBI manages the public debt on behalf of the Central and State governments in India.
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(2) The RBI acts as a banker to various State governments in India. Which of the statements given above is/are incorrect? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
Answer: (d) Explanation: Both the given statements are correct. Since its inception, the Reserve Bank of India has undertaken the traditional central banking function of managing the government’s banking transactions. The Reserve Bank of India Act, 1934 requires the Central Government to entrust the Reserve Bank with all its money, remittance, exchange and banking transactions in India and the management of its public debt. The Government also deposits its cash balances with the Reserve Bank. The Reserve Bank may also, by agreement, act as the banker and debt manager to State Governments. Currently, the Reserve Bank acts as banker to all the State Governments in India (including Union Territory of Puducherry), except Sikkim. For Sikkim, it has a limited agreement for management of its public debt. Source: Vajiram and Ravi Indian Economy: Chapter 4: Page No. 32-35 https://www.rbi.org.in/scripts/FS_Overview.aspx?fn=2757
42. Which of the following is the key objective behind the establishment of a National Anti-profiteering Authority (NAA)? (a) Curbing the hoarding of essential commodities. (b) Ensuring that the benefits of reduction in GST rates are passed to consumers. (c) Checking the overpricing of coronary stents in India. (d) Ensuring fair competition among private players in the economy.
Answer: (b) Explanation: The option (b) is correct. NAA is mandated to ensure that the benefits of the reduction in GST rates on goods or services are passed on to the ultimate consumers by way of a reduction in prices. The "anti-profiteering" measures enshrined in the GST law provide an institutional mechanism to ensure that the full benefits of input tax credits and reduced GST rates on the supply of goods or services flow to the consumers. This institutional framework comprises the NAA, a Standing Committee, Screening Committees in every State and the Directorate General of Safeguards in the Central Board of Excise & Customs (CBEC). Source: http://pib.nic.in/newsite/PrintRelease.aspx?relid=173563
43. Consider the following statements regarding the Regional Rural Banks (RRBs): (1) They are exempted from following the priority sector lending norms of the RBI. (2) The Central government is the largest shareholder of an RRB. (3) The RRBs provide credit exclusively to the farmers in the rural area. Which of the statements given above is/are correct?
Prelim IAS Test Series (2019) – GS Test 3 (9.12.2018) History, Economy and Current Affairs (June 2018) 29
(a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3
Answer: (b) Explanation: Only Statement (2) is correct RRBs are not exempted from priority sector lending norms and they also need to follow the targets set up by RBI for priority sector lending. The central government owns 50% of the capital infused in an RRB, out of rest 50%, the concerned state government owns 15% and a sponsor bank owns 35% of the share capital of an RRB. RRB is an important source of formal credit to the farmers, but RRBs also lend to other sections like Micro enterprises and other weaker sections apart from farmers. Source: https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=10155&Mode=0.
44. Consider the following statements: (1) The Phillips curve shows that there is an inverse relationship between employment and inflation. (2) The Phillips curve does not hold true in case of stagflation. 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
Answer: (b) Explanation: Statement (1) is incorrect. The Phillips curve is a graphic curve which advocates that there is a tradeoff between the inflation and unemployment level, i.e. the inflation and unemployment are inversely related (not inflation and employment). As the level of inflation increases, the level of unemployment decreases and vice versa. Statement (2) is correct. Stagflation is a situation where a high level of inflation exists along with a high level of unemployment. The Phillips curve doesn’t hold true in case of stagflation. It was seen during the 1970s in the US economy and proved the conventional Phillips curve wrong. Source: https://www.investopedia.com/terms/p/phillipscurve.asp
45. “Prompt Corrective Action (PCA) plan” has been in the news recently. Which among the following correctly describes the PCA plan?
Prelim IAS Test Series (2019) – GS Test 3 (9.12.2018) History, Economy and Current Affairs (June 2018) 30
(a) Some measures were taken by the SEBI to enforce corporate responsibility in the listed firms. (b) Important guidelines are given by the Finance Ministry to Government Departments in order to contain fiscal deficit. (c) A mechanism enforced by the RBI upon banks that show sign of stress on any of the standard stress parameters prescribed. (d) Turnaround plan suggested by the CAG to revive the stressed Air India by taking several corrective measures.
Answer: (c) Explanation: The PCA is triggered when banks breach certain regulatory requirements like minimum capital, return on asset and quantum of non-performing assets. To ensure that banks don't go bust, RBI has put in place some trigger points to assess, monitor, control and take corrective actions on banks which are weak and troubled. The process or mechanism under which such actions are taken is known as Prompt Corrective Action or PCA. Source: https://economictimes.indiatimes.com/markets/stocks/news/what-is- prompt-corrective-action/articleshow/58139512.cms
46. With reference to derivative instruments, which of the following statement correctly describes the forward contract? (a) A standardized contract between two parties to buy or to sell an asset at a specified future time at a pre-determined price agreed upon today. (b) A contract which gives the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument (like a share or commodity) at a specified strike price prior to or on a specified date. (c) The contract regarding ownership of shares in a company listed in the Stock Market. (d) A non-standardized contract between two parties to buy or to sell an asset at a specified future time at a pre-determined price agreed upon today.
Answer: (d) Explanation: Option (d) is correct. A Derivative Instrument is a contract that derives its value from the performance of an underlying entity. This underlying entity can be an asset (like gold), index (like SENSEX), or interest rate, and is often simply called the "underlying". Derivatives can be used for a number of purposes, including insuring against price movements (hedging), increasing exposure to price movements for speculation or getting access to otherwise hard-to-trade assets or markets. A Futures Contract is a standardized forward contract, a legal agreement to buy or sell something at a predetermined price at a specified time in the future. These are traded on an exchange. A Forward Contract is a non-standardized contract between two parties to buy or to sell an asset at a specified future time at a price agreed upon today. Forward contracts are
Prelim IAS Test Series (2019) – GS Test 3 (9.12.2018) History, Economy and Current Affairs (June 2018) 31 very similar to futures contracts, except they are not exchange-traded, or defined on standardized assets. Hence Forward Contracts are non-standard contracts. An option is a contract which gives the buyer (the owner or holder of the option) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price prior to or on a specified date. The seller has the corresponding obligation to fulfil the transaction – to sell or buy – if the buyer (owner) "exercises" the option. Source: Vajiram and Ravi Indian Economy, Chapter 3: Page No. 19
47. Which among the following factors contribute to demand-pull inflation? (1) The rise in Government Expenditure (2) Increase in Money Supply (3) Increase in foreign investment (4) Increase in Indirect Taxes Select the correct answer using the code given below: (a) 1 and 2 only (b) 1, 2 and 3 only (c) 1, 2 and 4 only (d) 1, 2, 3 and 4
Answer: (b) Explanation: Demand-pull inflation happens when price levels rise because of an imbalance in the aggregate supply and demand. When the aggregate demand in an economy strongly outweighs the aggregate supply, prices go up. Economists describe demand-pull inflation as a result of too much money chasing too few goods. Causes of Demand-Pull Inflation: Government spending: When the government opens up its pocketbooks, it drives up prices. Military spending prices may go up when the government starts to buy more military equipment. More money in the system: demand-pull inflation is produced by an excess in monetary growth or an expansion of the money supply. Too much money in an economic system with too few goods makes prices increase. Increase in Foreign Investment: With the increase in foreign investment, there is a rise in employment. More employment results in a rise in purchasing power leading to more consumption expenditure thus raising demand. Rise in incomes: Rise in household incomes raises demand which outpaces the supply of goods causing inflation. Cost-push inflation is a situation in which the overall price levels go up (inflation) due to an increase in the cost of wages and raw materials. Cost-push inflation develops because the higher costs of production factors result in a decrease in aggregate supply (the amount of total production) in the economy. Since there are fewer goods being produced (supply weakens) and demand for these goods remains consistent, the prices of finished goods increase (inflation). Cost-push factors include: Rise in wages. The rise in indirect taxes.
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Infrastructure bottlenecks like slow transportation which raise costs. The rise in import prices. Source: Vajiram and Ravi Indian Economy, Chapter 5: Page No. 50.
48. The terms 'Special Safeguard Mechanism', 'National Treatment', 'Rules of Origin' are heard in the context of which of the following? (a) SCO (b) FATF (c) WTO (d) The World Bank
Answer: (c) Explanation: All the given terms are related to the WTO. a) SSM (Special Safeguard Mechanism): It's a measure designed to protect poor farmers by allowing countries to impose a special tariff on certain agricultural goods in the event of an import surge or price fall. For example, if the USA sends cheap corn to India, Then India can put tariff barrier (i.e. increasing import duty on American Corn) so that prices of imported corn become high again. b) National treatment is a basic principle of GATT/WTO that prohibits discrimination between imported and domestically produced goods with respect to internal taxation or other government regulation. c) Rules of origin are used to determine the country of origin of a product for purposes of international trade. There are two common types of rules of origin depending upon the application, the preferential and non-preferential rules of origin Source: Vajiram and Ravi Indian Economy: Chapter 9: Page No. 97-98
49. Under which of the following cases does capital gain/loss arise? (1) Sale of shares by an individual. (2) Sale of flats by a real estate firm. (3) Sale of goods which were lying in stock for 2 years. Select the correct answer using the code given below: (a) 1 only (b) 1 and 2 only (c) 2 and 3 only (d) 1 and 3 only
Answer: (a) Explanation: Capital gain is an increase in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold. A capital gain may be short-term (one year or less) or long-term (more than one year) and must be claimed on income taxes. However, the capital gain/loss doesn’t arise when a firm or individual sells goods in which it regularly trades. Because it is considered as inventory. Sources: (1) Vajiram and Ravi Indian Economy: Chapter 6: Page No. 60 (2) https://economictimes.indiatimes.com/definition/capital-gainloss
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50. Consider the following statements about Masala Bonds: (1) Masala bonds are rupee-denominated bonds issued by foreign entities in Indian markets. (2) Masala bonds have been named so by International Finance Corporation (IFC). 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
Answer: (b) Explanation: Statement (1) is incorrect and statement (2) is correct. Masala bonds are rupee-denominated bonds issued by Indian entities in the overseas market to raise funds for Indian firms. Masala bonds have been named so by the International Finance Corporation (IFC), an investment arm of the World Bank which issued these bonds to raise money for infrastructure projects in India. Source: http://pib.nic.in/newsite/PrintRelease.aspx?relid=161726
51. Sometimes the Reverse Charge Mechanism under GST is seen in news. Which of the following statement is correct regarding “Reverse Charge Mechanism”? (a) Both supplier and recipient of the goods and services are exempted from paying the GST. (b) Both the supplier and recipient need to pay GST with equal rates. (c) The liability to pay tax is of the supplier of goods and services rather than the recipient. (d) The liability to pay tax is of the recipient of goods & services rather than the supplier.
Answer: (d) Explanation: Option (d) is correct. Normally, the supplier of goods or services pays the tax on supply. In the case of Reverse Charge, the receiver becomes liable to pay the tax, i.e., the chargeability gets reversed. If a vendor who is not registered under GST, supplies goods to a person who is registered under GST, then Reverse Charge would apply on the recipient of the goods and services. Source: https://cleartax.in/s/reverse-charge-gst
52. Which of the following are part of the current account? (1) Net import/export of goods and services (2) Investment income from abroad. (3) Portfolio investment. (4) Foreign Direct Investment (FDI). Select the correct answer using the code given below:
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(a) 1 and 2 only (b) 2 and 3 only (c) 1, 2 and 3 only (d) 1, 2, 3 and 4
Answer: (a) Explanation: Statement (1) and (2) are correct. While current account is used to keep a track on the movement of money in and out the economy, during a particular period. The capital account, on the other hand, represents the flow of capital in the economy. Components of Current Account include Trade in goods and services, investment income, unrequited transfers. Components of Capital Account include Foreign Direct Investment, Portfolio Investment, Government loans etc. Source: http://keydifferences.com/difference-between-current-account-and-capital- account.html
53. Which of the following is the best description of the Marginal Standing Facility (MSF) rate? (a) It is the rate at which the RBI borrows money from commercial banks. (b) It is the rate at which the scheduled banks can borrow funds overnight from the RBI against government securities. (c) It is the rate at which one commercial entity gives funds to other at a very high rate of interest for a very short period of time. (d) It is the rate at which the RBI lends to the government for a very short period of time.
Answer: (b) Explanation: Option (b) is correct. The RBI introduced MSF in the year 2011-12. It is intended to facilitate the short-term borrowing by the scheduled commercial banks in the case of a severe cash shortage or liquidity crunch. Marginal Standing Facility rate refers to the rate at which the scheduled banks can borrow funds overnight from RBI against government securities. Banks can also use securities under SLR. The option (a) describes the Reverse Repo Rate. The option (c) describes the Commercial Paper. The option (d) describes the Ways and Means Advances. Source: www.indiainfoline.com
54. Which of the following situation gives rise to inflation? (1) When the general level of prices of goods and services rises. (2) When the general level of prices of goods and services falls. (3) When the purchasing power of currency decreases. (4) When the purchasing power of currency increases. Select the correct answer using the code given below: (a) 1 and 3 only
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(b) 1 and 4 only (c) 2 and 3 only (d) 2 and 4 only
Answer: (a) Explanation: Statements (1) and (3) are correct. Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of the currency is falling. Purchasing power is the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you would be able to purchase. In other words when the purchasing power of currency decreases it gives rise to inflation. Source: http://www.investopedia.com/terms/i/inflation.asp
55. Which of the following step/steps the Government or the RBI can take to reduce inflation? (1) Imposing restrictions on the export of pulses and oilseeds. (2) Increasing stock limits under the Essential Commodities Act. (3) By increasing Cash Reserve Ratio. Select the correct answer using the code given below: (a) 1 only (b) 1 and 2 only (c) 1 and 3 only (d) 1, 2 and 3
Answer: (c) Explanation: Statements (1) and (3) are correct and statement (2) is incorrect. Imposing restrictions on exports will increase domestic supply of pulses and oilseeds thus, reducing inflation in the country. Stock limits in Essential Commodities Act were imposed to check the hoarding of goods. Thus, if these stock limits will be increased then some people/traders will be stock more and this will reduce supply in the market. Thus, it will increase inflation. The step to increase in CRR is taken by RBI under monetary measures. It reduces the money supply in the economy. Thus, increasing CRR results in reduced inflation. Source: Vajiram and Ravi Indian Economy: Chapter 5: Page No. 56-57
56. Consider the following statements: (1) A bondholder tends to benefit if the interest rate on bonds increases in future. (2) A bondholder tends to lose if the inflation rate is higher in future. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2
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(d) Neither 1 nor 2
Answer: (b) Explanation: The statement (1) is incorrect and statement (2) is correct. The bond is a debt security, under which the issuer owes the holders a debt and(depending on the terms of the bond) is obliged to pay them interest (the coupon) or to repay the principal at a later date, termed the maturity date. Interest is usually payable at fixed intervals. A bondholder will not be impacted by the future increase in interest rate because the interest rate on his bond will remain the same. It can be an indirect loss as buying the bond sometime later might have given him more interest. Higher inflation is bad for bondholder as it will lower down his real return from the bond investment. Source: Vajiram and Ravi Indian Economy: Chapter 3: Page No. 16-17 https://www.investopedia.com/terms/b/bond.asp
57. Supply shocks in an economy are likely to (1) Result in lower GDP growth in the economy. (2) Result in lower inflation due to the phenomenon of inflation-growth conflict. 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
Answer: (a) Explanation: Statement (1) is correct and statement (2) is incorrect. Supply shocks increase the prices of crucial inputs, thereby negatively impacting the producers and GDP growth. But with a higher cost of production for the producers, they have little choice but charge higher prices for goods leading to higher inflation. Inflation-growth conflict phenomenon operates when GDP growth is primarily affected through demand side. Source: Vajiram and Ravi Indian Economy: Chapter 2: Page No. 12-13 and 50.
58. Which of the following policies were taken up by India during the BOP Crisis of 1991? (1) Devaluation of domestic currency with respect to a foreign currency. (2) Encouraging exports (3) Attracting more foreign investment in the economy (4) Reducing fiscal deficit Select the correct answer using the code given below: (a) 1 only (b) 1 and 2 only (c) 1, 2 and 3 only
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(d) 1, 2, 3 and 4
Answer: (d) Explanation: All the given statements are correct. Although the first three policies directly improve BOP situation, since India had taken a loan from IMF, it had to reduce fiscal deficit also to follow contractionary policies as one of the conditions for the loans by the IMF. Source: XI NCERT: Indian Economic Development: Chapter 3: Liberalization, Privatization and Globalization: An Appraisal Page 40-41
59. Which of the following factors play crucial role in the creation of money supply in an economy? (1) Banking sector's ability to give loans (2) Adequate demand for loans by the public like industries or households (3) The proportion of households having bank accounts in the economy (4) Currency deposit ratio determining households' decision to hold money as currency or keep it in bank as deposits Select the correct answer using the code given below: (a) 1 and 2 only (b) 1, 2 and 3 only (c) 1, 2 and 4 only (d) 1, 2, 3 and 4
Answer: (d) Explanation: All the given statements are correct. The first two factors ensure that loans are actually given by the banks without which money supply will not increase. Third and fourth are important as it determines deposits with the banks which in turn impacts the banks' ability to give loans. Source: XII NCERT: INTRODUCTORY MACROECONOMICS: Chapter 3 Money and Banking Page 38
60. Which of the following statement(s) is/are correct about government securities? (1) These are issued by the Central or State governments to take loans mainly from the commercial banks. (2) The RBI regulates the government securities market by arranging their primary auctions. (3) The RBI in consultation with the government fixes the interest rates on these securities. (4) The commercial banks are statutorily required to buy a minimum worth of these securities. Select the correct answer using the code given below: (a) 1 and 2 only (b) 1, 2 and 3 only (c) 1, 2 and 4 only
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(d) 1, 2, 3 and 4
Answer: (c) Explanation: Statements (1), (2) and (4) are correct. A government security is a bond issued by a government authority with a promise of repayment upon maturity. These securities are considered low-risk, since they are backed by the taxing power of the government. In India, RBI regulates the government securities market by arranging their primary auctions. The commercial banks are statutorily required to buy a minimum worth of these securities. Statement (3) is incorrect. Interest rates on government securities are market determined and not fixed by either RBI or government. Source: Vajiram and Ravi Indian Economy: Chapter: Page No. 16-17 https://m.rbi.org.in/Scripts/FAQView.aspx?Id=79
61. Which of the following statements are true regarding Sovereign Gold Bonds in India? (1) These are the bonds issued by the government. (2) The investors can use physical gold to buy these bonds as well. (3) The returns on these bonds are decided both by the fixed interest rate and the appreciation in gold value during the bond maturity period. (4) One of the objectives behind issuing such bonds is to reduce the demand for gold imports in India. Select the correct answer using the code given below: (a) 1 and 3 only (b) 1, 3 and 4 only (c) 1, 2 and 4 only (d) 1, 2, 3 and 4
Answer: (b) Explanation: Statement (1), (3) and (4) are correct and statement (2) is incorrect. Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold. They are substitutes for holding physical gold thus, it reduces the demand for gold imports in India. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The quantity of gold for which the investor pays is protected, since he receives the ongoing market price at the time of redemption/ premature redemption. The Bond is issued by Reserve Bank on behalf of Government of India. Source: Vajiram and Ravi Indian Economy: Chapter: Page No. 16-17 https://m.rbi.org.in/Scripts/FAQView.aspx?Id=109
62. High fiscal deficit can lead to all but one of the following: (a) The rise in interest rates (b) Inflation (c) Stagflation
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(d) The rise in indebtedness of the Government
Ans. (c) Explanation: Fiscal deficits arise whenever a government spends more money than it brings in during the fiscal year. The higher fiscal deficit is an expansionary fiscal policy and hence will increase inflation as well as GDP growth. A high government deficit leaves little for the private sector for investment and puts upward pressure on interest rates also referred as crowding out. Stagflation results due to cost-push inflation and a slowdown. Source: https://www.livemint.com/Money/Z1jHNObQTDNPcYibMBSdaM/The- damages-of-high-fiscal-deficit.html https://www.investopedia.com/ask/answers/021015/what-effect-fiscal-deficit- economy.asp
63. Which of the following are instruments of fiscal policy? (1) Reduction in tax rates (2) Food Grains Rationing through PDS (3) Grants to States (4) Increase in government expenditure on employment creation Select the correct answer using the code given below: (a) 1 and 4 only (b) 1, 2 and 4 only (c) 1, 3 and 4 only (d) 1, 2, 3 and 4
Answer: (d) Explanation: All the given instruments are instruments of fiscal policy. Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply. These two policies are used in various combinations to direct a country's economic goals. Any expenditure or revenue collected by the government is a part of fiscal policy. PDS is a subsidy borne by government and thus also part of fiscal policy. Source: Vajiram and Ravi Indian Economy: Chapter 6: Page No. 67-71 https://www.investopedia.com/insights/what-is-fiscal-policy/
64. If the interest rate on government securities is expected to fall in an economy then which of the following situations might have caused this? (1) Increase in money supply. (2) Decrease in money supply. (3) Increase in money demand. (4) Decrease in money demand. Select the correct answer using the code given below: (a) 1 and 3 only (b) 1 and 4 only
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(c) 2 and 3 only (d) 2 and 4 only
Answer: (b) Explanation: Statement (1) and (4) are correct. A government security is a bond issued by a government authority with a promise of repayment upon maturity. Governments around the world issue bonds in order to borrow money. Investors, including banks, insurers and pension funds as well as individuals, buy them in order to earn a return. Bond prices (cost of the bond) and yields (interest rate) move in opposite directions. When prices move up, interest rate fall, and vice versa. Which directions they are going in is basically down to the level of demand for bonds in the market at the time. When there is strong appetite for bonds, because people see them as a safe haven (that means when demand for money decreases), their prices rise and governments end up paying less interest on their debt via lower yields. Same happens in the case of increase in money supply in an economy. When there is a bond sell-off, because people think they can get a better return from stocks for example, their prices fall and governments end up paying higher interest to attract investors via a better yield. Source:https://www.thisismoney.co.uk/money/diyinvesting/article-3989618/How- government-bond-markets-work-yield-curves.html
65. Consider the following statements: (1) The Balance of Payments (BOP) Accounts of a country reflect the loans taken by the government from domestic and foreign banks and their repayments. (2) BOP surplus in India can be accounted for through the surplus in the capital accounts. 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
Answer: (b) Explanation: Statement (1) is incorrect. The Balance of Payments (BoP) records all economic transactions between residents of a country and the rest of the world. The BoP account consists of Current account, Capital account, and Financial Account. Thus, BOP is a concept reflecting international transactions only, either by the government or other sectors and does not include any domestic transaction. Statement (2) is correct. A country gets foreign exchange not only from exporting goods and services, but also, from capital flows, whether by way of foreign investment, commercial borrowings or external assistance. The bigger chart shows that for most years, net capital flows into
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India have been more than CADs. Therefore, BOP surplus in India can be accounted for through the surplus in the capital accounts.
The BoP account consists of Current account, Capital account, and Financial Account. The current account includes flows of goods, services, primary income, and secondary income between residents and non-residents and thus constitutes an important segment of BoP. The primary income account reflects the amounts payable and receivable in return for providing temporary use of labour, financial resources, or non-produced non- financial assets (natural resources). The secondary income accounts show redistribution of income between resident and non-residents, i.e when resources for current purposes are provided without economic value being exchanged in return(transfers). On the other hand, the capital account comprises credit and debit transactions under non-produced non-financial assets and capital transfers between residents and non-residents. Thus, acquisitions and disposals of non-produced non-financial assets, such as land sold to embassies and sales of leases and licenses, as well as transfers which are capital in nature, are recorded under this account. The financial account reflects net acquisition and disposal of financial assets and liabilities during a period. Further, it shows how the net lending to or borrowing from the rest of the world has occurred. Conversely, it shows how the current account surplus is used or the current account deficit is financed. Source: (1) Vajiram and Ravi Indian Economy: Chapter 8: Page No. 91 (2) https://indianexpress.com/article/explained/assessing-the-balance-of payments position-5222914/
66. Consider the following taxes: (1) Income Tax
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(2) Corporate Tax (3) Service Tax (4) Custom Duties Which of the above is/are Direct Taxes? (a) 1 only (b) 1 and 2 only (c) 1, 2 and 3 only (d) 1, 2, 3 and 4
Answer: (b) Explanation: Tax is a mandatory fee imposed upon individuals or corporations by the Central and the State Government to help build the economy of a country by meeting various public expenses. Taxes are broadly divided into two categories- Direct and Indirect taxes. Direct Tax: It is a tax levied directly on a taxpayer who pays it to the Government and cannot pass it on to someone else. Examples: Income Tax, Corporate Tax, Wealth Tax, Estate Duty etc Indirect Tax: It is a tax levied by the Government on goods and services and not on the income, profit or revenue of an individual and it can be shifted from one taxpayer to another. Examples: Customs Duty, Central Excise Duty, Service Tax, Sales Tax, Value Added Tax (VAT) etc Now these indirect taxes are replaced by the Goods and Services Tax (GST). Source: Vajiram and Ravi Indian Economy: Chapter 6: Page No. 59-60
67. Which of the following departments in the Ministry of Finance prepares Union Budget in India? (a) Department of Revenue (b) Department of Expenditure (c) Department of Financial Services (d) Department of Economic Affairs
Answer: (d) Explanation: The Ministry Finance comprises of the five Departments namely: • Department of Economic Affairs • Department of Expenditure • Department of Revenue • Department of Disinvestment • Department of Financial Services Union Budget is prepared by the Department of Economic Affairs. Source: https://www.finmin.nic.in/about-ministry
68. Corporate Tax is (a) levied by the Centre and collected and appropriated by the States. (b) levied and appropriated by the States.
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(c) levied by the Centre and appropriated by the Centre alone. (d) levied by the States and shared with the Centre.
Answer: (c) Explanation: Corporate Tax: This tax is paid by the companies registered under company law in India on the net profit that it makes from businesses. Corporate tax is levied, collected and retained by the Centre. Thus, this tax belongs to the centre exclusively. In other words, no part of the proceeds of it can be assigned to the states. Source: Vajiram and Ravi Indian Economy: Chapter 6: Page No. 60 https://cleartax.in/s/corporate-tax
69. Which of the following developments is/are likely to reduce fiscal deficit? (1) Increase in Industrial Growth Rate (2) Waiving off loans given to the farmers by the government (3) Increase in Foreign Direct Investment (4) Providing food security in the country Select the correct answer using the code given below: (a) 1 and 3 only (b) 1 and 2 only (c) 1 and 4 only (d) 2 and 4 only
Answer: (a) Explanation: Statements (1) and (3) correct. A fiscal deficit occurs when a government's total expenditures exceed the revenue that it generates, excluding borrowings. Higher industrial growth and FDI tend to bring more tax revenue to the government reducing FD. Waiving off loans and providing food security increase government expenditure thus, increasing Fiscal deficit. Source: Vajiram and Ravi Indian Economy: Chapter 6: Page No. 64
70. Crowding out of private investment by the government will imply: (a) Higher government borrowing reducing the size of private sector borrowing (b) Higher private sector borrowing reducing the size of government borrowing (c) Private sector being allowed to invest more in government securities (d) Private sector being restricted to invest more in government securities
Answer: (a) Explanation: Crowding Out is a situation when increased interest rates lead to a reduction in private investment spending such that it dampens the initial increase of total investment spending is called crowding out effect. Description: Sometimes, government adopts an expansionary fiscal policy stance and increases its spending to boost the economic activity. This leads to an increase in interest rates. Increased interest rates affect private investment decisions. A high magnitude of the crowding out effect may even lead to lesser income in the economy.
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Source: Vajiram and Ravi Indian Economy: Chapter 6: Page No. 66 https://economictimes.indiatimes.com/definition/crowding-out-effect
71. Consider the following statements about Repo and Reverse Repo Rate: (1) These are parts of the Money Market (2) The Banks can take loans from the RBI under Repo Rate by repurchasing the Government Securities at a higher price. (3) The Banks can earn interest by parking their surplus with the RBI under Reverse Repo Rate. (4) Repo Rate is higher than Reverse Repo Rate. Which of the statements given above are correct? (a) 1 and 4 only (b) 1 and 3 only (c) 1, 3 and 4 only (d) 1, 2, 3 and 4
Answer: (d) Explanation: All the given statements are correct. Repo rate is the rate at which the central bank of a country lends money to commercial banks in the event of any shortfall of funds. Repo rate issued by monetary authorities to control inflation. Banks can take loans from RBI under Repo Rate by repurchasing the government securities at a higher price i.e. Banks sell their securities to RBI with an agreement to repurchase these in future at higher prices. Reverse repo rate is the rate at which the central bank of a country borrows money from commercial banks within the country. It is a monetary policy instrument which can be used to control the money supply in the country. Banks can earn interest by parking their surplus with RBI under Reverse Repo Rate. Key differences between Repo Rate and Reverse Repo Rate Repo rate is charged by RBI when commercial banks sell their securities. Whereas, reverse repo rate is the rate at which RBI borrows money from banks within the country. While high repo rate drains excess liquidity from the market as the banks have to pay high interest to obtain loan from RBI, high reverse repo rate injects liquidity into the economic system by offering high profits to banks. The repo rate is always higher than the reverse repo rate. While repo rate is used to control inflation, reverse repo rate is used to control money supply in the market. The main objective of repo rate is to deal with deficiency of funds. Whereas, reverse repo rate deals with liquidity in the economy. Repo Rate involves selling securities to RBI with a motive to repurchase it in the future at a fixed rate of interest but reverse repo rate is mere transferring of funds from one bank account to RBI account. Source: Vajiram and Ravi Indian Economy: Chapter 4: Page No. 33 https://www.bankbazaar.com/finance-tools/emi-calculator/repo-rate-vs-reverse- reporate.html
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72. The buoyancy of a tax implies: (a) Assessing the impact of an increase in GDP on increase in tax revenue (b) Correlating rise or fall in the rate of tax on fall or rise in demand and thereby tax revenues (c) Assessing the impact of inflation on tax revenues (d) Assessing the impact of fall in tax rates on tax revenues
Answer: (a) Explanation: Tax buoyancy is an important indicator of the efficiency and responsiveness of tax revenue mobilisation to GDP growth. It is calculated as a ratio of percentage growth in tax revenues to growth in nominal GDP for a given year. Tax is said to be buoyant if the gross tax revenues increase more than proportionately in response to a rise in GDP figures. Thus, if one per cent of the rise in national income results in more than one per cent rise in tax revenues from ascertain tax, it can be said that the tax is highly buoyant. Source: https://www.thehindubusinessline.com/economy/tax-buoyancy-improves thanks-to-indirect-levy/article9466851.ece
73. Enhanced Access and Service Excellence (EASE) Agenda sometimes seen in news is related to which of the following sectors? (a) Primary Health Care Centres (b) Vaccination (c) Banking Reforms (d) Energy Distribution
Answer: (c) Explanation: In order to deal with the NPA and bad loans, the government has announced its EASE reform agenda along with a Rs 2.1 lakh crore capital infusion plan of which Rs 80,000 crore have already been disbursed. EASE Programme ● Six pillars: The reform plan of the banks sets a goal of EASE and the six pillars to achieve this include Customer Responsiveness, Responsible Banking, Credit Off Take, PSBs As Udyami Mitra, Deepening Financial Inclusion & Digitalization, And Developing Personnel. ● Evaluation of Performance: Whole Time Directors of PSBs would be assigned theme wise reforms for implementation. And the Bank Board in this regard would evaluate their performance. ● Specialized Monitoring Agency: Under EASE, banks are to set up specialized monitoring agencies for loans above Rs 250 crore and a separate vertical for non- performing assets apart from rationalizing overseas businesses. ● Need To Have Minimum 10% Exposure In Consortium Loans: Banks also need to have a minimum 10% exposure in consortium loans to prevent a situation in which too many lenders are involved when it comes to debt resolution.
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● Other Agenda: The recapitalization and reform agenda include a commitment to banking services within five km of every village, a refund within 10 days of any unauthorized debit in electronic transactions, a mobile app designed to locate banking outlets, and a mobile ATM in every underserved district. ● Independent Survey: The govt also said that it would hire an independent agency to conduct a survey of the PSBs on the aspects of EASE to measure public perception about improvements in access and service quality. The results of the survey would be made public each year. ● Overall Goal: Taken together the recap & reform agenda is sharply focused on strengthening PSBs, increasing lending to MSMEs and making it easier for MSMEs and retail customers to transact as well as significantly increasing access to banking services. Source: Vajiram and Ravi- Current Affairs for June 2018: Page 58.
74. Consider the following statements about Financial Stability and Development Council (FSDC): (1) It is a statutory body formed under the Financial Stability and Development Council (FSDC) Act, 2013. (2) It is an apex body of Financial sector regulators working for financial stability and inter-regulatory coordination. (3) It is headed by the Finance Minister. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 only (c) 2 and 3 only (d) 1, 2 and 3
Answer: (c) Explanation: Statement 1 is incorrect. The Financial Stability and Development Council (FSDC) has been constituted vide GOI notification dated 30th December, 2010 and is not a statutory body. Statement 2 is correct. The government has reconstituted the Financial Stability and Development Council (FSDC), the apex body of financial sector regulators and made it more broad-based. The Council deals, inter-alia, with issues relating to financial stability, financial sector development, inter–regulatory coordination, financial literacy, financial inclusion and macro prudential supervision of the economy including the functioning of large financial conglomerates. No funds are separately allocated to the Council for undertaking its activities. Statement 3 is correct. The Council headed by the Finance Minister will now include the Minister Of State responsible for the Department of Economic Affairs (DEA), the Secretary of Department of Electronics and Information Technology, the Chairperson of the Insolvency and Bankruptcy Board of India (IBBI) and the Revenue Secretary, Governor of the Reserve Bank of India, Chief of Securities and Exchange Board of India, Finance Secretary of Department of Economic Affairs, Secretary-Financial Services, Chief Economic Adviser and Chairpersons of the IRDA and PFRDA.
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Source: Vajiram and Ravi- Current Affairs for June 2018: Page 67 http://pib.nic.in/newsite/PrintRelease.aspx?relid=95543.
75. Consider the following statements with reference to Insolvency and Bankruptcy Code: (1) The resolution process will have to be completed within a maximum period of 1 year from the date of registration of the case. (2) The Code proposes a unified tribunal to adjudicate grievances related to insolvency, bankruptcy and liquidation of different entities under the law. 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
Answer: (d) Explanation: Statement (1) is incorrect. The resolution process will have to be completed within a maximum period of 180 days from the date of registration of the case. This period may be extended by 90 days if 75% of the financial creditors agree. Statement (2) is incorrect. The Code proposes two separate tribunals to adjudicate grievances related to insolvency, bankruptcy and liquidation of different entities under the law: (i) the National Company Law Tribunal will have jurisdiction over companies and limited liability partnerships, and (ii) the Debt Recovery Tribunal will have jurisdiction over individuals and partnership firms. Additional Information: The Insolvency and Bankruptcy Code, 2015 was introduced by the Minister of Finance, Mr Arun Jaitley, in Lok Sabha on December 21, 2015. The Code seeks to create a unified framework for resolving insolvency and bankruptcy in India. Insolvency is a situation where individuals or organisations are unable to meet their financial obligations. The code provides for a single law to deal with Insolvency. Insolvency Professionals, who will conduct the insolvency resolution process, take over the management of a company, assist creditors in the collection of relevant information, and manage the liquidation process, Insolvency Professional Agencies, who will examine and certify these professionals, Information Utilities, which will collect, collate and disseminate financial information related to debtors, and Insolvency and Bankruptcy Board of India, a regulator that will oversee these new entities. Source: Vajiram and Ravi- Current Affairs for June 2018: Page: 75 https://indianexpress.com/article/explained/bankruptcy-code-passed-why-the- proposed-bankruptcy-code-is-needed-how-itll-tackle-bad-debts-2792444/
76. Consider the following statements about currency exchange rate systems:
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(1) Currency appreciation results in the fall in the value of a currency in a floating exchange rate system. (2) In a fixed exchange rate system, when the government increases the exchange rate, it is called devaluation. (3) A dirty float is a floating exchange rate where a country's central bank occasionally intervenes to change the direction or the pace of change of a country's currency value. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 1 and 3 only (c) 2 and 3 only (d) 1, 2 and 3
Answer: (c) Explanation: Statement (1) is incorrect. Currency appreciation is an increase in the value of one currency regarding another currency. Currencies appreciate against each other for a variety of reasons, including government policy, interest rates, trade balances and business cycles. Currency depreciation is a fall in the value of a currency in a floating exchange rate system. Currency depreciation can occur due to any number of reasons – economic fundamentals, interest rate differentials, political instability, risk aversion among investors and so on. Statement (2) is correct. Devaluation is a deliberate downward adjustment of the value of a country's currency relative to another currency, group of currencies or standard. Countries that have a fixed exchange rate or semi-fixed exchange rate use this monetary policy tool. It is often confused with depreciation and is the opposite of revaluation. Statement (3) is correct. Dirty float: A dirty float is a floating exchange rate where a country's central bank occasionally intervenes to change the direction or the pace of change of a country's currency value. In most instances, the central bank in a dirty float system acts as a buffer against an external economic shock before its effects become disruptive to the domestic economy. A dirty float is also known as a "managed float." Source: www.investopedia.com
77. IndAS, often seen in news, stands for (a) Indian Astronomical Satellite (b) Indian Accounting Standards (c) Indian Accounts Service (d) Indian Arbitration Solutions
Answer: (b) Explanation: Option (b) is correct.
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IndAS is a global accounting practice that NBFCs, banks and Insurance companies are mandated to adopt. The practice is at par with the International Financial Reporting Standard (IFRS) 9. Additional information: According to the initial plan, Ministry of Corporate Affairs was to implement IndAS for banks, insurance companies, and NBFCs from 1 April 2018 onwards. In April 2018, RBI deferred the implementation of Indian Accounting Standards by one year for banks. Also, IndAS implementation date has been deferred for insurance companies by two years. Source: Vajiram and Ravi- Current Affairs for June 2018: Page 66-67 http://pib.nic.in/newsite/PrintRelease.aspx?relid=134578
78. Which of the following statements with reference to Small Finance Banks is/are correct? (1) The minimum paid-up equity capital for small finance banks shall be Rs. 100 crores. (2) They can accept deposits and issue debit card but cannot offer loans. (3) They are not required to maintain Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). Select the correct answer using the code given below: (a) 1 only (b) 1 and 2 only (c) 2 and 3 only (d) 1, 2 and 3
Answer: (a) Explanation: Statement (1) is correct. The minimum paid-up equity capital for small finance banks shall be Rs. 100 crores. Statement (2) is incorrect. The guidelines for small finance banks provide that such banks shall primarily undertake basic banking activities of acceptance of deposits and lending to unserved and underserved sections. Payment banks cannot offer loans. Statement (3) is incorrect. All prudential norms and regulations of RBI as applicable to existing commercial banks including requirement of maintenance of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) are applicable to Small Finance Banks. Source: Vajiram and Ravi- Current Affairs for June 2018: Page 62 http://www.pibregional.nic.in/PressReleseDetail.aspx?PRID=1484837.
79. Consider the following statements in the context of Indian Economy: (1) In recent years the share of livestock in Gross Value Added in the Agricultural GDP has decreased and share of Crop sector has increased in India. (2) The annual budget in India provides for a gender-specific intervention by earmarking at least 50% of the budget allocation for women beneficiaries in all ongoing schemes/programmes and development activities. (3) In India less than 30% of total cropped area is irrigated.
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Which of the statements given above are incorrect? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3
Answer: (d) Explanation: All three statements are incorrect. Statement 1 is incorrect: The Agriculture sector has been witnessing a gradual structural change in recent years. The share of livestock in GVA in agriculture has been rising gradually, the share of the crop sector in GVA has been on the decline from 65 per cent in 2011-12 to 60 per cent in 2015-16. Statement 2 is incorrect: Earmarking at least 30 per cent of the budget allocation for women beneficiaries in all ongoing schemes/ programmes and development activities. Initiating women centric activities to ensure benefits of various beneficiary-oriented programs/schemes reach them. Focusing on women self-help group (SHG) to connect them to micro-credit through capacity building activities and to provide information and ensuring their representation in different decision- making bodies. Recognising the critical role of women in agriculture, the Ministry of Agriculture and Farmers Welfare has declared 15th October of every year as Women Farmer’s Day. Statement 3 is incorrect: The all India percentage of net irrigated area to total cropped area was 34.5 per cent, which makes a large segment of cultivation dependent on rainfall. The State-wise percentage distribution of net irrigated area to total cropped area shows that only two States, Punjab and Uttar Pradesh have more than 50 per cent net irrigated area to total cropped area and only seven states have above 34 percent in 2014-15. Source: Economic Survey of India 2018-19
80. Consider the following statements about the India Post Payment Bank: (1) It has been incorporated as a public sector company under the Department of Posts and is governed by the Government of India. (2) It can offer loans up to Rupees one lakh. (3) It will provide access to third-party financial services. Which of the statements given above is/are incorrect? (a) 1 and 2 only (b) 2 only (c) 3 only (d) 2 and 3 only
Answer: (a) Explanation:
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Statement (1) is incorrect. A payment bank is a differentiated, offering a limited range of product. Payment banks are licensed under Section 23 of the Banking Regulation Act 1949, and registered as public limited company under the Companies Act, 2013. Indian Post Payment Bank has been incorporated as a public sector company under the department of posts, with 100% government equity and is governed by the Reserve Bank of India. Statement (2) is incorrect. They can accept deposits of up to Rs. 1 lakh and cannot issue loans and credit card. Statement (3) is correct. It will offer a range of products—savings and current accounts, money transfer, direct benefit transfer, bill and utility payments, enterprise and merchant payments. These products, and services, will be offered across multiple channels (counter services, micro- ATM, mobile banking app, SMS and IVR). It will also provide access to third-party financial services such as insurance, mutual funds, pension, credit products and FOREX. Source: https://www.youtube.com/watch?v=9ukaflLPFmw https://ippbonline.com/web/ippb/about-us1.
81. In the recently conducted Shangri-la dialogue the Indian PM asserted the importance of rule based order in the Indo-pacific region. In this context consider the following statements: (1) The Shangri-la dialogue is Asia’s premier security dialogue, held annually at Singapore since 2002, at the behest of International Institute for Strategic Studies. (2) As a leader of the Asia-Pacific region, China has been an active participant in the security forum. 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
Answer: (a) Explanation: Statement (1) is correct. The IISS Asia Security Summit: The Shangri-La Dialogue (SLD) is a "Track One" inter- governmental security forum held annually by an independent think tank, the International Institute for Strategic Studies (IISS) which is attended by defence ministers, permanent heads of ministries and military chiefs of 28 Asia-Pacific states. The forum gets its name from the Shangri-La Hotel in Singapore where it has been held since 2002. Statement (2) is incorrect. Although China participates in the Asia’s premier security dialogue, its delegation has been at a lower level than many of the other participating states. China has sent a Defence Minister level delegation only once in the history of the dialogue. Therefore China is not an active participant in this security forum.
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82. Woody Island is often seen in news recently in the context of Indo-Pacific geopolitical theatre. Consider the following statements about Woody Island: (1) The Woody Island is a part of the Paracel Islands in the South China Sea. (2) Woody Island has been claimed by China as a part of its Nine-dash line political vision for the South China Sea. Which of the statement(s) given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
Answer: (c) Explanation: Statement 1 is correct - Woody Island, also called Yongxing Island in People's Republic of China (PRC) and Phu Lam Island in Vietnam, is the largest of the Paracel Islands in the South China Sea (SCS). The Paracel Islands are a group of islands, reefs, banks and atolls in the north-western part of the South China Sea. The island has been under the control of the People's Republic of China since 1956. It is administered by Sansha, a town located on the island. It is disputed territory and is also claimed by the Republic of China (Taiwan) and Vietnam. Statement 2 is correct - The Nine-Dash Line refers to the undefined, vaguely located, demarcation line used initially by the Republic of China (1912–1949) and subsequently the governments of the Republic of China (ROC / Taiwan) and the People's Republic of China (PRC), for their claims of the major part of the South China Sea. The contested area in the South China Sea includes the Paracel Islands, the Spratly Islands, and various other areas including the Pratas Islands, the Macclesfield Bank and the Scarborough Shoal. The claim encompasses the area of Chinese land reclamation known as the "great wall of sand".
83. Consider the following statements: (1) Bio-similar drugs are identical copies of biological drugs made through the help of biotechnology. (2) The Bio-Similar drugs are made from natural sources only. (3) Bio-similar drugs are a generic version of the biologic drug. Which of the statement(s) given above is/are correct? (a) 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1 only
Answer: (d) Explanation: Statement 1 is correct - A biosimilar (also known as follow-on biologic or subsequent entry biologic) is a biologic medical product that is almost an identical copy of an original product that is manufactured by a different company.
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Statement 2 is incorrect - The source of Bio-Similar drugs can be natural as well as synthetic. Statement 3 is incorrect - Generic drugs are usually an exact copy of the parent drug. However, it is impossible to manufacture similar copies of biologics. Thus though biosimilars are similar to their biologic’s counterpart in terms of safety and effectiveness they are not generic versions of biologics.
84. GSLV–Mk III is considered to be a significant development with respect to India’s space programme. Consider the following statements about GSLV–Mk III: (1) GSLV–Mk III, also called as ‘fat boy’, is the heaviest rocket developed by ISRO. (2) GSLV–Mk III is India’s first functional rocket with a cryogenic engine. (3) GSLV–Mk III will be the power horse of India’s future mission to moon and its human spaceflight. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3
Answer: (d) Explanation: Statement 1 is correct - GSLV Mk III is a three-stage heavy lift launch vehicle developed by ISRO. The vehicle has two solid strap-ons, a core liquid booster and a cryogenic upper stage. GSLV Mk III, also called Isro's 'fat boy' as it is the country's heaviest (weighing 640 tonnes) but smallest rocket (43 metre). Statement 2 is correct - It will have a new and advanced indigenous cryogenic engine to lift it off to the geostationary orbit. It is India’s first functional rocket with a cryogenic engine. Statement 3 is correct - It will be the power horse of India’s future mission to moon and human spaceflight.
85. Arsenic contamination of groundwater is a serious problem faced by several states in India. In this context consider the following statements: (1) Arsenic contamination mainly occurs in the Ganga- Brahmaputra aquifers (2) Arsenic is transported with the fluvial sediments from the Himalayas (3) Arsenic contamination is also caused due to fly-ash from thermal power plants Which of the statement(s) given above is/are correct? (a) 1 only (b) 1 and 2 only (c) 2 and 3 only (d) 1, 2 and 3
Answer: (d) Explanation: Statement (1) is correct.
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In India, seven states namely, West-Bengal, Jharkhand, Bihar, Uttar Pradesh in the flood plain of Ganga River; Assam and Manipur in the flood plain of Brahmaputra and Imphal rivers and Chhattisgarh have so far been reported affected by arsenic contamination in groundwater above the permissible limit. Statement (2) is correct. Natural source of Arsenic contamination is the geology of the place. Holocene aquifers along fluvial tracks of the Ganga-Brahmaputra valley are known to be contaminated waters are enriched in Fe, Mn, which have high affinity to Arsenic. Hence statement 2 is correct. Statement (3) is correct. Coal itself isn’t a particularly toxic material. But after it’s burned, what remains in the ash includes lead, mercury, cadmium, chromium, arsenic, and selenium, all in levels that may threaten human health. Thus, Arsenic contamination is also caused due to fly-ash from thermal power plants.
86. Recently India has been witnessing the third outbreak of Nipah Virus (NiV) infection, a newly emerging zoonotic disease. Consider the following statements about NiV infection: (1) Bats are considered to be the natural reservoir of the virus and thus the only animals to transmit the virus to humans. (2) Animal to human transmission route includes consumption of fruits like mango or raw date palm sap partially-eaten by infected bats. (3) India has successfully dealt with the current outbreak of the disease through vaccination. (4) Ribavirin, a drug primarily used in treating hepatitis C is known to reduce the viral load in people infected with Nipah virus also. Which of the statements given above are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1, 2 and 3 only (d) 2 and 4 only
Answer: (d) Explanation: Statement 1 is incorrect - Although bats are considered to be the natural reservoir of the virus, the disease can be transmitted to humans from other infected animals too. For instance, the first outbreak of NiV occurred among pig farmers in Malaysia and Singapore in 1998-1999. Statement 2 is correct - Animal to human transmission route also includes consumption of fruits partially eaten by infected bats. Statement 3 is incorrect - No vaccination has been discovered yet to prevent the virus. Statement 4 is correct - Ribavirin is an anti-viral drug broadly known to reduce viremia in patients with Nipah infection and thus used along with other supportive treatment.
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87. Recently ‘Triclosan’ an anti-microbial ingredient of various products known to cause colon cancer is often seen in news. In which of the following products ‘Triclosan’ is used? (1) Soaps and Detergents (2) Toothpaste (3) Clothes including socks and undergarments Select the correct answer using the code given below: (a) 1 only (b) 1 and 2 only (c) 2 only (d) 1, 2 and 3
Answer: (d) Explanation: Triclosan is used in all the given products. Triclosan (sometimes abbreviated as TCS) is an antibacterial and antifungal agent found in some consumer products, including toothpaste, soaps, detergents, toys, clothes including socks and undergarments and surgical cleaning treatments. It is similar in its uses and mechanism of action to triclocarban. Its efficacy as an antimicrobial agent, the risk of antimicrobial resistance, and its possible role in disrupted hormonal development remains controversial. Additional research seeks to understand its potential effects on organisms and environmental health. Triclosan was developed in the 1960s. In September 2016, the USA FDA announced that effective September 2017, it would prohibit the sale of "consumer antiseptic washes" containing triclosan or 18 other ingredients marketed as antimicrobials due to FDA findings of the lack of efficacy in these products.
88. In a significant development towards cancer cure, CancerSeek is often seen in news recently. Which of the following statements best explain CancerSeek? (a) It is a type of Immunotherapy that helps the immune system fight cancer. (b) It is a blood test to screen cancer before the symptoms are developed. (c) It is a targeted therapy that targets the changes in cancer cells that help them grow, divide, and spread. (d) It is a type of hormone therapy that seeks to stop the cancer cells from using the hormones to grow as in case of breast and prostate cancers.
Answer: (b) Explanation: CancerSEEK, is a new test which can identify eight common cancers ― ovary, liver, oesophagus, pancreas, stomach, colorectal, lung, and breast cancer ― say researchers from the Johns Hopkins Kimmel Cancer Centre in Baltimore, Maryland. The new test measures circulating tumour DNA (ctDNA) from 16 genes as well as eight protein biomarkers, and then uses machine-based learning to analyze the data.
89. AIR-INK is often seen in news as an innovation in the field of art. Which of the following statements is/are correct about AIR-INK?
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(1) AIR-INK is made of unburned carbon soot from exhaust pipes of diesel cars, chimneys, generators. (2) As AIR-INK is also produced out of soot, it is as harmful as carbon black that is derived out of particulate matter. (3) While AIR-INK is an eco-friendly alternative to carbon black, it is much more expensive than carbon black. Select the correct answer using the code given below: (a) 1 only (b) 1 and 2 only (c) 1, 2 and 3 (d) None of the above
Answer: (a) Explanation: Statement (1) is correct. Air Ink is a brand of ink and ink-based art products made by condensing soot-based gaseous effluents generated by industrial air pollution due to incomplete combustion of fossil fuels. Statement (2) is incorrect, because AIR-INK is manufactured out of soot trapped in a liquid. As a result, it is more eco-friendly as there is no risk of the particles becoming airborne and thus cutting down air pollution. Statement (3) is incorrect, because with suitable binders AIR-INK can be used to print t- shirts, coffee mugs, greeting cards, and packaging products.
90. Recently the government has rechristened the existing Multi-sectoral Development Programme (MsDP) as Pradhan Mantri Jan Vikas Karyakram (PMJVK). Which of the following statements is/are correct about PMJVK? (1) PMJVK aims to reduce the gap between minority concentration areas and mainstream areas in terms of their social infrastructure. (2) The nodal agency for PMJVK is Ministry of Social Justice and Empowerment. (3) The number of minority concentration areas selected under PMJVK is much lesser than that under MsDP and thus leads to better rationing. Select the correct answer using the code given below: (a) 1 only (b) 1 and 2 only (c) 3 only (d) 1, 2 and 3
Answer: (a) Explanation: Statement 1 is correct - Pradhan Mantri Jan Vikas Karyakram (PMJVK) seeks to provide better socio economic infrastructure facilities to the minority communities particularly in the field of education, health & skill development which would further lead to lessening of the gap between the national average and the minority communities with regard to backwardness parameters.
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Statement 2 is incorrect - PMJVK is implemented under the aegis of the Ministry of Minority Affairs. Statement 3 is incorrect - While under Multi-sectoral Development Programme (MsDP), only those cluster of villages which were having at least 50 population of minority community were taken, under PMJVK the population criteria has been lowered to 25% and thus the number of districts covered have increased from 196 to 308.
91. In a step towards ‘energy efficient manufacturing’ in the country, the Union government has introduced Zero Defect and Zero Effect (ZED) certification. In this respect consider the following statements: (1) ZED manufacturing certification is confined to MSMEs only. (2) Quality Council of India is responsible for ZED certification 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
Answer: (c) Explanation: Both statements 1 and 2 are correct - The Government of India has envisioned Make in India and Zero Defect & Zero Effect Manufacturing for which there is need of a policy which will create an ecosystem for competitive, quality and clean manufacturing, promote development of world class products, and expand markets for MSMEs. ZED Certification Scheme is operated by the Quality Council of India.
92. India is pushing hard to become a Methanol economy to cut down its crude oil imports and urban pollution. Consider the following statements about Methanol: (1) Methanol can be used as an alternative fuel in both internal combustion engines and as cooking fuel. (2) Methanol, also known as wood alcohol is biodegradable in nature (3) Methanol helps in carbon sequestration thus reducing global warming Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) 2 and 3 only (d) 1, 2 and 3
Answer: (d) Explanation: Statement 1 is correct - Methanol is an alternative fuel for internal combustion and other engines, either in combination with gasoline or directly. It is used in racing cars in many countries. Statement 2 is correct - Methanol is also known as wood alcohol and is biodegradable in nature.
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Statement 3 is correct - Methanol helps in carbon sequestration thus reducing global warming.
93. RATS or Regional Anti Terrorist Structure has been recently acknowledged as one of the effective multilateral counter-terror bodies. Which of the following is true about RATS? (a) RATS was setup under the UN Comprehensive Convention on International Terrorism. (b) RATS is a permanent organ of SCO which specifically deals with issues relating to security and defence. (c) RATS is a counter-terror effort launched by BRICS (d) RATS is a security and defence organ of ASEAN
Answer: (b) Explanation: Option (b) is correct - The Regional Anti-Terrorist Structure (RATS), headquartered in Tashkent, Uzbekistan, is a permanent organ of the SCO which serves to promote cooperation of member states against the three evils of terrorism, separatism and extremism. The Head of RATS is elected to a three-year term. Each member state also sends a permanent representative to RATS.
94. Recently Rashtriya Gram Swaraj Abhiyan was rolled out by the government to deliver benefits of several flagship programmes to poor households in rural areas. Which of the following schemes is/are part of Gram Swaraj Abhiyan? (1) Pradhan Mantri Ujjwala Yojana (2) Saubhagya (3) Ujala Scheme (4) Pradhan Mantri Jan Dhan Yojana Select the correct answer using the code given below: (a) 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2, 3 and 4
Answer: (d) Explanation: All the given schemes are a part of the Rashtriya Gram Swaraj Abhiyan. Prime Minister Narendra Modi had announced on the occasion of Ambedkar Jayanti, a “Gram Swaraj Abhiyan” starting from 14th April to 05th May, 2018. The campaign, undertaken under the name of “Sabka Sath, Sabka Gaon, Sabka Vikas”, is to promote social harmony, spread awareness about pro-poor initiatives of government, reach out to poor households to enrol them as also to obtain their feedback on various welfare programmes. Following Seven Schemes are part of Gram Swaraj Abhiyan: 1. Pradhan Mantri Ujjwala Yojana 2. Saubhagya 3. Ujala scheme
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4. Pradhan Mantri Jan Dhan Yojana 5. Pradhan Mantri Jeevan Jyoti Bima Yojana 6. Pradhan Mantri Suraksha Bima Yojana 7. Mission Indradhanush
95. In the context of intellectual property rights, Patent Cooperation Treaty (PCT) is often seen in news. Which of the following statements is/are true about Patent Cooperation Treaty? (1) The Patent Cooperation Treaty (PCT) makes it possible for companies to file patents in multiple countries. (2) The Patent Cooperation Treaty would allow countries to delegate the functions of their patent offices to another country or international organisations. (3) The WIPO is responsible for the administration of PCT. Select the correct answer using the code given below: (a) 1 only (b) 1 and 3 only (c) 2 only (d) 2 and 3 only
Answer: (b) Explanation: Statement 1 is correct - The Patent Cooperation Treaty (PCT) assists applicants in seeking patent protection internationally for their inventions, helps Patent Offices with their patent granting decisions, and facilitates public access to a wealth of technical information relating to those inventions. By filing one international patent application under the PCT, applicants can simultaneously seek protection for an invention in a very large number of countries. Statement 2 is correct - Recently WIPO tried to bring in a new rule that would allow countries to delegate the functions of their patents office to another country or international organization. This move has been opposed by developing countries including India. Such a rule could result in smaller countries in particular being coerced to delegate these functions to countries or organisations that would push for easier patenting and stringent intellectual property protection which could affect access to medicines and India's pharma exports to them. Statement 3 is correct - WIPO is responsible for the administration of PCT.
96. In order to help farmers realize competitive prices for their produce, Operation Greens was introduced in the 2018-19 budget. Consider the following statements in this regard: (1) The operation aims to limit the fluctuations in the prices of onions, potatoes and tomatoes only. (2) It will promote Farmer Producer Companies. (3) It will boost the food processing sector. Which of the following statements is/are correct about Operation Greens? (a) 1 only (b) 1 and 3 only
Prelim IAS Test Series (2019) – GS Test 3 (9.12.2018) History, Economy and Current Affairs (June 2018) 60
(c) 2 and 3 only (d) 1, 2 and 3
Answer: (d) Explanation: Statement 1 is correct - The operation aims to aid farmers and help control and limit the erratic fluctuations in the prices of onions, potatoes and tomatoes. The Government has launched the Operation Greens in the Union Budget 2018-19. The idea behind Operation Greens is to double the income of farmers by end of 2022. It is essentially a price fixation scheme that aims to ensure farmers are given the right price for their produce. Statement 2 is correct - Operation Greens aims to promote farmer producers’ organisations, agri-logistics, processing facilities and professional management.
97. Recently the European Union has released the world’s 1st Data Protection Regulation designed to protect the personal data of E.U. residents. In this context consider the following statements: (1) The Data Protection Regulation is applicable on an Indian e-commerce website if an EU resident buys a product from it. (2) The Data Protection Regulation protects data privacy of individuals living outside EU buying a product from a EU-based company. 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
Answer: (a) Explanation: Statement 1 is correct and Statement 2 is incorrect. - The Data Protection Regulation applies to those outside the E.U. who either monitor the behaviour of EU residents or sell goods and services to them and not vice-versa.
98. Madden Julian Oscillation is a global ocean-atmospheric interaction system often seen in news. Consider the following statements about Madden Julian Oscillation: (1) Madden Julian Oscillation is a moving ‘pulse’ of clouds, rainfall, winds near the equator that moves from east to west. (2) Since the Madden Julian Oscillation occurs around equator it does not affect Indian monsoon pattern. 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
Answer: (d)
Prelim IAS Test Series (2019) – GS Test 3 (9.12.2018) History, Economy and Current Affairs (June 2018) 61
Explanation: Statement 1 is incorrect - Madden Julian Oscillation is defined as an eastward moving ‘pulse’ of clouds, rainfall, winds near the equator that typically recurs every 30 to 60 days. Statement 2 is incorrect - In the tropics, MJO in its active phase brings frequent cyclonic activity, and can initiate the onset of the monsoon.
99. ‘UNNATI’ is often seen in news. Which of the following statements best explains ‘UNNATI’? (a) It is a nutrition programme aimed at reducing the incidence of anaemia in women aged 20-49 years. (b) It is a scheme through which ISRO will impart technical knowhow to different countries in building nano-satellites. (c) It is an indicator developed by the NITI Aayog to rank the Indian States in terms of their education progress. (d) None of the above
Answer: (b) Explanation: Option (b) is correct - UNispace Nanosatellite Assembly Training by ISRO. In the recently held 50th anniversary of the First United Nations Conference on the Exploration and Peaceful Uses of Outer Space (UNISPACE+50) in Vienna, ISRO announced that it has taken the initiative to train scientists of countries like UAE and African nations that lack the technical knowhow and capability to build a nano-satellite.
100. Sabang, a strategically important naval port for India often in the news, is located in which of the following geographical location? (a) Strait of Hormuz (b) Strait of Malacca (c) Strait of Bab el Mandeb (d) Isthmus of Kra
Answer: (b) Explanation: Option (b) is correct - Amidst the growing concern of China’s expeditionary role in the Indian Ocean region India has steadily been expanding its involvement in a range of strategically located port facilities around the Indian Ocean region. In this direction, the PM of India in his recent visit to Indonesia successfully gained access to facilities at the strategically located Indonesian island of Sabang which is located at the mouth of Strait of Malacca.
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Prelim IAS Test Series (2019) – GS Test 3 (9.12.2018) History, Economy and Current Affairs (June 2018) 63