GS Test8 Answer Key PDF

GS Test-8 (5th Jan’2020)
Answer Key & Explanation
Q1. Answer: (d)

Explanation: Four main processes are occurring at or near the Earth's surface, which can
give rise to ascending air: convergence, convection, frontal lifting and physical lifting.
Ascending air is a pre-requisite for cloud formation.
Convection occurs when air is heated from below by sunlight or by contact with a warmer
land or water surface until it becomes less dense than the air above it. The heated parcel
of air will rise until it has again cooled to the temperature of the surrounding air. Hence,
Statement (1) is correct.
Frontal lifting occurs when a warmer air mass meets a colder one. Since warm air is less
dense than cold, it will ascend over the cold air. This forms a warm front. When a cold air
mass approaches a warm one, it wedges under the warmer air, lifting it above the ground.
This forms a cold front. In either case, there is ascending air at the frontal boundary.
Hence, Statement (2) is correct.
Physical lifting, also known as orographic lifting, occurs when horizontal winds are
forced to rise in order to cross topographical barriers such as hills and mountains. Hence,
Convergence occurs when several surface air currents in the horizontal flow move
toward each other to meet in a shared space. When they converge, there is only one way
to go: Up. A surface low-pressure cell is an example of an area of convergence and air at
its centre must rise as a result. Hence, Statement (4) is correct.
Hence, option (d) is the correct answer.
Q2. Answer: (b)

Explanation: Rain is precipitation that falls to the surface of the Earth as water droplets.
Hence, Option (a) is not correct.
Virga is a type of precipitation that begins to fall from a cloud but evaporates before it
reaches the surface of the Earth. This happens when falling rain or ice passes through an
area of dry or warm air. Hence, Option (b) is correct.
The rain that falls from clouds but freezes before it reaches the ground is called sleet or
ice pellets. Hence, Option (c) is not correct.
Snow is precipitation that falls in the form of ice crystals. Hail is also ice, but hailstones are
just collections of frozen water droplets. Snow has a complex structure. The ice crystals
are formed individually in clouds, but when they fall, they stick together in clusters of
snowflakes. Hence, Option (d) is not correct.
Hence, option (b) is the correct answer.
Q3. Answer: (d)

Explanation:
The Weddell Sea lies in the Southern Ocean and the Laptev Sea in the Arctic Ocean.
Prelim Test Series (2020) – GS Test 8 (05.01.2020)

Economy and Geography 1
Hence, the correct answer is (d)
Q4. Answer: (b)

Explanation: According to the India Meteorological Department (IMD) a cloudburst
features hefty rainfall for a short period over a localised area at a very high rate of the
order of 100mm per hour featuring strong winds and lightning. It is a remarkably localised
phenomenon affecting an area not exceeding 20–30 km. Hence, Statement (1) is not
correct.
A cloudburst occurs during monsoon season over the regions dominated by orography
like Himalayan region, north-eastern states and the Western Ghats. They are likely to
occur when monsoon clouds associated with low-pressure area travel northward
from the Bay of Bengal across the Ganges plains onto the Himalayas and ‘burst’ in heavy
downpours (75– 100 mm per hour). The associated convective cloud can extend up to a
height of 15 km above the ground. It represents cumulonimbus convection in
conditions of marked moist thermodynamic instability and deep, rapid dynamic lifting by
steep orography. Cloudburst events over remote and unpopulated hilly areas often go
unnoticed until the media report casualties. Hence, Statement (2) is correct.
Q5. Answer: (c)

Explanation: Cloud seeding or weather modification is an artificial way to induce moisture
in the clouds to cause rainfall. Water managers are also seeing cloud seeding as one way
of increasing winter snowfall. Hence, Statement (1) is correct.
In this process, either silver iodide or dry ice is dumped onto the clouds by using an
aircraft or an artillery gun which leads to a rain shower. After some research, hygroscopic

materials, i.e. moisture-absorbing materials like table salt, are being increasingly used.
Hence, Statement (2) is not correct.
Rainfall brings down the air pollution levels. China is set on seeding more clouds as it
grapples with the problem of pollution and inadequate rainfall. The idea has also been
proposed for Delhi. Hence, Statement (3) is correct.
There are two conditions necessary for cloud seeding. First, some clouds are needed to
carry out the seeding process. Second, the humidity in the air should not be too less for it
to succeed. Thus, using cloud seeding in the hottest deserts is not feasible. Hence,
Statement (4) is not correct.
Hence, option (c) is the correct answer.
Q6. Answer: (a)

Explanation: Foehn, German Föhn is a warm and dry, gusty wind that periodically
descends the leeward slopes of nearly all mountains and mountain ranges. The name
was first applied to a wind of this kind that occurs in the Alps, where the phenomenon was
first studied. Hence, Statement (1) is correct.
A foehn results from the ascent of moist air up the windward slopes. As the air makes its
leeward descent, it is compressed and warms all the way rapidly downslope and thus
helps animal grazing by melting snow. It is due to these winds that valleys in Switzerland
are called climatic oasis. Hence, Statement (2) is correct.
The Santa Ana winds in Southern California caused large forest fires. Hence, Statement
(3) is not correct.
Therefore, the correct answer is (a)
Q7. Answer: (d)
Q8. Answer: (d)

Explanation: Thunderstorm is a violent, short-lived weather disturbance that is almost
always associated with lightning, thunder, dense clouds, heavy rain or hail, and strong,
gusty winds. Thunderstorms are common occurrences on Earth.
Thunderstorms develop when the atmosphere is unstable. This is when warm air exists
underneath much colder air. As the warm air rises, it cools and condenses, forming small
droplets of water. If there is enough instability in the air, the updraft of warm air is rapid
and the water vapour will quickly form a cumulonimbus cloud. Typically, these
cumulonimbus clouds can form in under an hour. Hence, Statement (1) is correct.
Owing to the fact thunderstorms are created by intense heating of the Earth's surface,
they are most common in areas of the globe where the weather is hot and humid.
Landmasses, therefore, experience more storms than the oceans and thunderstorms are
also more frequent in tropical areas than the higher latitudes. Hence, Statement (2) is
correct.
Dewpoint refers to the atmospheric temperature (varying according to pressure and
humidity) below which water droplets begin to condense, and dew can form. A high
dewpoint would enable more moisture to be available, which would release more Latent
Heat once storms develop. Hence, Statement (3) is correct.
Therefore, the correct answer is (d).
Q9. Answer: (a)

Explanation: Coffee is a plantation crop adapted to tropical highlands for C. Arabica, and
to lowlands for C. Canephora. They require a well-distributed annual rainfall, a dry season
not exceeding five months, and an annual temperature between 15 - 30° C. Soils should
be permeable, have good effective depth, and be well-drained and well-aerated.
Hence, Statement (1) is correct.
They tolerate shade and share quite similar growth requirements with forest trees, thus
predisposing them to agroforestry ecosystems. Hence, Statement (2) is not correct.
Therefore, the correct answer is (a).
Q10. Answer: (b)

Explanation: For centuries, farmers, herders, fishermen and foresters have developed
diverse and locally adapted agricultural systems managed with time tested, ingenious
techniques. These practices have resulted in a vital combination of social, cultural,
ecological and economic services to humankind. “Globally Important Agricultural
Heritage Systems” (GIAHS) are outstanding landscapes of aesthetic beauty that
combine agricultural biodiversity, resilient ecosystems and valuable cultural heritage.
Located in specific sites around the world, they sustainably provide multiple goods and
services, food and livelihood security for millions of small-scale farmers.
In India, three traditional systems have been given the status of GIAHS by FAO:
 Saffron Heritage of Kashmir: Practicing intercropping and agro-pastoralism, Saffron
Kashmiri systems promote high cultivated biodiversity: rice, maize, millet, lentils,
wheat etc.
Farmers do not use chemical fertilisers or pesticides which is an encouraging point for
the wild flora, fauna and soils.
 Koraput Traditional Agriculture: Traditional systems in the Koraput Region are
strongly linked to the local traditional communities. From their knowledge and
practices, high biodiversity has been conserved through in-situ conservation.

Local communities mainly grow their food for self-consumption.
 Kuttanad Below Sea Farming Level System: The Kuttanad Below Sea-level
Farming System (KBSFS) is unique, as it is the only system in India that practices rice
cultivation below sea level. The primary land use structure of KBSFS is flat stretches
of rice fields.
The rice fields, which are popularly known as "Puncha Vayals" exist in three
landscape elements: Karapadam (upland rice fields), Kayal (wetland rice fields) and
Kari (land buried with black coal-like materials).
Hence, Statements (1), (2) and (3) are correct.
Organic Farming of Sikkim is not a traditional system of agriculture. It has not received
any such status. Hence, Statement (4) is not correct.
Therefore, the correct answer is (b).
Q11. Answer: (c)

Explanation:
Front, in meteorology, refers to the interface or transition zone between two air masses of
different density and temperature. There are several different types of fronts, depending
basically on the direction of movement of the colder air mass.
A warm front is the boundary between a mass of warm air and a retreating mass of cold
air. At constant atmospheric pressure, warm air is less dense than cold air, and so it tends
to override, rather than displace, the cold air. As a result, a warm front usually moves
more slowly than a cold front. Warm-front precipitation is generally much more
uniform and widespread than that associated with cold fronts. Hence, Statement (1)
is correct.
Meteorologists call the leading edge of an advancing mass of relatively cold air a cold
front. A cold front is usually associated with showers and thunderstorms. As it
advances, often quite rapidly, the cold air, which is relatively dense, undercuts the
displaced warm air, forcing it to rise. In extreme cases, the resulting instability may lead to
the formation of a squall line of severe thunderstorms and possibly tornadoes. Hence,
Therefore, the correct answer is (c).
Q12. Answer: (c)

Explanation:

The Yellow sea lies between China and Korean peninsula and the Gulf of Bothnia
between Sweden and Finland.
Q13. Answer: (b)

Explanation:
Mission Fingerling: It is a programme to enable holistic development and
management of the fisheries sector in India. The mission aims to achieve the target to
enhance fisheries production from 10.79 million metric tonnes (mmt) (2014-15) to 15 mmt
by 2020-21 under the Blue Revolution.
 Government has identified 20 States based on their potential and other relevant
factors to strengthen the Fish Fingerling production and Fish Seed infrastructure in
the country.
 This program will facilitate the establishment of Fingerling rearing pond and
hatcheries.
 This will converge in the production of 20 lakh tonnes of fish annually, which will in
turn benefit about 4 million families.

Q14. Answer: (b)
Explanation: Seed Replacement Rate is the percentage of area sown out of the total
area of a crop planted in the season by using certified/quality seeds other than the farm-
saved seed. Thus, Statement (1) is not correct.
A better seed replacement rate shows a better utilisation of the Certified / Quality Seeds.
Since certified seeds are better in productivity, the seed replacement rate is directly
proportional to productivity. Thus, the higher the seed replacement ratio, the higher is the
production, as well as the productivity and higher, are the chances of achieving nutritional
security. Thus, Statement (2) is correct.
Therefore, the correct answer is (b)
Q15. Answer: (a)

Explanation
Q16. Answer: (d)

Explanation: Definition of seed classes:
Nuclear seed: This is the hundred per cent genetically pure seed with physical purity and
produced by the original breeder/Institute /State Agriculture University (SAU) from
underlying nucleus seed stock. The producing breeder issues a pedigree certificate.

Breeder seed: The progeny of nucleus seed multiplied in large area as per indent of
Department of Agriculture and Cooperation (DOAC), Ministry of Agriculture,
Government of India, under supervision of plant breeder/institute / SAUs and monitored
by a committee consisting of the representatives of state seed certification agency,
national / state seed corporations, ICAR nominee and concerned breeder. A golden
yellow colour certificate is issued for this category of seed by the producing breeder.
Foundation seed: The progeny of breeder seed produced by recognized seed
producing agencies in public and private sector, under supervision of seed certification
agencies in such a way that its quality is maintained according to the prescribed field
and seed standards. A white colour certificate is issued for foundation seed by seed
certification agencies.
Registered seed: Registered seed shall be the progeny of foundation seed that is so
handled as to maintain its genetic identity and purity according to standard specified
for the particular crop being certified. A purple colour certificate is issued for this
category of seed.
Certified seed: The progeny of foundation seed produced by registered seed
growers under supervision of seed certification agencies to maintain the seed quality as
per minimum seed certification standards. A blue colour certificate is issued by seed
certification agency for this category of seed.
Q17. Answer: (b)

Explanation: Most tropical rainforest soils are relatively poor in nutrients. Millions of years
of weathering and torrential rains have washed most of the nutrients out of the soil. More
recent volcanic soils, however, can be very fertile. Tropical rain forest soils contain less
organic matter than temperate forests and most of the available nutrients are found in the
living plant and animal material. Nutrients in the soil are often in forms that are not
accessible by plants. Constant warmth and moisture promote rapid decay of organic
matter. When a tree dies in the rainforest, living organisms quickly absorb the nutrients
before they have a chance to be washed away. When tropical forests are cut and burned,
heavy rains can quickly wash the released nutrients away, leaving the soil even more
impoverished. Thus, due to the deficiency of nutrients in the soil, it becomes very difficult
for regeneration in the tropical rain forest. Therefore, the correct answer is (b).
Q18. Answer: (d)

Explanation: Atmospheric Stability or instability refers to air's tendency to either rise or
create storms (instability), or to resist vertical movement (stability). The study of Lapse
rate can gauge the tendency of the atmosphere to be stable or unstable.
Types of instability:
Absolute Instability: Environment Lapse Rate is more than Dry and Saturated
Adiabatic Lapse Rate. This causes the air packet to rise continuously. This causes
Thunderstorm, Tornadoes etc. Hence Statement (1) is not correct.
Absolute Stability: Environment Lapse Rate is less than Dry and Saturated
Adiabatic Lapse Rate. In such condition, the air packet resists rising. This causes the
condition of a stable atmosphere. Hence Statement (2) is not correct.
Conditional Instability occurs when Environment Lapse Rate lies in between Dry and
Saturated Adiabatic Lapse Rate. During such condition, the air is stable with respect to

dry rate and sinks to its original level as Dry Adiabatic Lapse Rate is more than
Environment Lapse Rate. However, the air, when saturated, it becomes unstable and
can rise on its own. This is because the saturated air cools at Saturated Adiabatic
Lapse Rate which is lower than the Environment Lapse Rate. Therefore Statement
(3) is correct.
The lapse rate is the rate at which temperature in Earth's atmosphere, changes with
altitude. Adiabatic cooling in dry air takes place at a fixed rate of 10 degree Celsius/ km.
This is known as Dry Adiabatic Lapse rate, whereas Saturated Adiabatic Lapse Rate is
around 4 to 9 degree Celsius/ km. Therefore, Dry Adiabatic Lapse is always more than the
Saturated Adiabatic Lapse Rate.
Hence the answer is (d).
Q19. Answer: (b)

Explanation:

Land Breeze: It is a coastal breeze blowing from land to sea during the night. It is
caused by a difference in the rate of cooling of land and sea. In the night, the land loses
its heat rapidly while the sea retains its warmth. Therefore the air above the sea rises and
low pressure is created over the sea. Cool and dense air above the land begins to move
toward water surface to replace the warmer rising air. Hence the Statement (1) is not
correct.
Sea breeze: During the day time, the land heats up quickly and the air above it warms up
and rises which creates low pressure over the land. The air pressure over the water is
higher with cold, dense air. Therefore, the cool air from the sea moves towards the land.
Hence the Statement (2) is correct.
Q20. Answer: (d)

Explanation: The Labrador Current is a cold current in the North Atlantic Ocean which
flows from the Arctic Ocean south along the coast of Labrador and passes around
Newfoundland, continuing south along the east coast of Nova Scotia. It is a continuation
of the West Greenland Current and the Baffin Island Current. It meets the warm Gulf

Stream at the Grand Banks southeast of Newfoundland, and again north of the Outer
Banks of North Carolina. The combination of these two currents produces dense fogs and
has also created one of the most fertile fishing grounds in the world. Thus Statement (1)
is correct.
The Leeuwin Current is a warm ocean current which flows southwards near the western
coast of Australia. It rounds Cape Leeuwin to enter the waters south of Australia where its
influence extends as far as Tasmania. Thus Statement (2) is not correct.
The Gulf Stream is divided into many branches. One of them enters into the Bay of Biscay
as Rennell Current named after the scientist Rennell and flows up to the northern coast of
France and Spain. Thus Statement (3) is correct.
The Agulhas Current is the warm western boundary current of the southwest Indian
Ocean. It flows south along the east coast of Africa from 27°S to 40°S. It is narrow, swift
and robust. Thus Statement (4) is correct.
Q21. Answer: (d)

Explanation: Fog is a visible aerosol that is formed at or near the surface of the ground.
Fogs can be formed due to a variety of reasons that are influenced by the topography of
land, wind conditions, precipitation patterns, temperature, etc. The different types of fogs
are as follows:
Advection Fog:

When warm, moist air blows in the form of wind and come in contact with cooler surface
air, water vapour condenses and the process of advection forms fog. This type of fog
forms in areas where warm and moist tropical winds come in contact with a colder
surface, usually that of the ocean, and condensation results in fog formation. Advection
fog can be seen along much of the Pacific coast of the US. Here, the warm air blowing by
the coast comes in contact with cold California Current. Hence pair (1) is correctly
matched.
Upslope Fog:
When winds blow warm, moist air up the slope of a hill, mountain, or plateau, the rising air
gradually starts cooling, and after reaching a particular elevation, it cools beyond the
condensation point. Fog is thus formed. Upslope fog can be seen on the eastern slope of
the American Rockies in winter and spring. Hence pair (2) is correctly matched.
Radiation Fog:

When the skies are clear, and the weather is generally calm, especially during winter, the
ground releases thermal radiation after sunset and cools fast. The air layer immediately
above the ground also cools down. It now no longer retains the capacity to hold water
vapour which then condenses to form fog close to the ground. This type of fog is called
radiation fog or ground fog. It is more common during winters when conditions are
favourable for its formation. Radiation fog disappears as soon as the ground starts getting
warm after sunrise. Hence pair 3 is correctly matched.
So, the correct answer is (d)
Q22. Answer: (d)

Explanation:
The velocity and direction of the wind are the net results of the wind generating forces.
The winds in the upper atmosphere, 2 - 3 km above the surface, are free from the
frictional effect of the surface and are controlled mainly by the Pressure Gradient
and the Coriolis Force. Hence Statements (1) and (2) are correct.
When isobars are straight and when there is no friction, the pressure gradient force is
balanced by the Coriolis Force and the resultant wind blows parallel to the isobar. This
wind is known as the geostrophic wind. Hence Statement (3) is not correct.
Therefore, the correct answer is (d)
Q23. Answer: (c)

Explanation: When two different air masses meet, the boundary zone between them is
called a front. Hence Statement (1) is correct.
The process of formation of the fronts is known as frontogenesis while frontolysis
represents end-stage of a front. Hence Statement (2) is not correct.
There are four types of fronts: (a) Cold; (b) Warm; (c) Stationary; (d) Occluded.

When the front remains stationary, it is called a stationary front. When the cold air moves
towards the warm air mass, its contact zone is called the cold front, whereas if the warm
air mass moves towards the cold air mass, the contact zone is a warm front. If an air mass
is fully lifted above the land surface, it is called the occluded front. An occluded front is
formed when a cold front overtakes warm front and warm air is completely
displaced from the ground. Hence Statement (3) is correct.
Q24. Answer: (a)

Explanation: Continental shelf is the submerged part of the land adjoining the coast,
shallow seas and gulfs. It is the shallowest part of the ocean showing an average gradient
of 1° or even less. The shelf typically ends at a very steep slope, called the shelf break.
The width, as well as depth of the continental shelves, varies from one continent to
another. Geologically, these are part of continents. Thus, Statement (1) is correct.
It is extensive or broad where the mountains are away from the coast, for example, north-
west Europe, eastern North America; it is narrow where the mountains are nearer to the
coast, for example, western North America and South America. Continental shelves cover
7.8 per cent of the sea surface area. Maximum width of the continental shelf is found in
the Arctic Ocean where its width varies from 500 to 1300 km.
Thus, Statement (2) is not correct.
Hence, the correct answer is (a).
Q25. Answer: (d)

Explanation: The jet stream is a current of fast-moving air found in the upper
troposphere which blows from west to east due to the Earth’s rotation. The position
of the jet stream denotes the location of the most substantial temperature contrasts
between different latitudes on the Earth surface. Both the Northern and Southern
hemispheres have jet streams, although the jet streams in the north are more forceful due
to more significant temperature gradients. Hence, statements (1) and (2) are correct.
Some features of the Jet Streams
 These are narrow belts at the high altitude
near the top of the troposphere.
 Their speed varies from about 110 km per
hour (kmph) in the summer season to more
than 180 kmph in the winter season.
 They are several hundred kilometres wide
and about 2 km to 5km deep.
 The flow of jet streams is not in the form of
a straight line. Their circulation path is wavy
and meandering. These meandering winds
are called Rossby waves. Hence,
 Jet Stream off Mount Everest: The winds that batter the top of Mount Everest,
Nepal, are jet streams. Jet streams pose a significant danger to climbers on
Mount Everest. With freezing winds at 120 kilometres per hour (70 miles per hour,)
climbers are stuck until the jet streams die down. Hence, Statement (4) is correct.

Q26. Answer: (b)
Explanation:
Some Famous Local Storms of Hot Weather Season
(i) Mango Shower: Towards the end of summer, there are pre-monsoon showers which
are a common phenomenon in Kerala and coastal areas of Karnataka. Locally,
they are known as mango showers since they help in the early ripening of mangoes.
(ii) Blossom Shower: With this shower, coffee flowers blossom in Kerala and nearby
areas.
(iii) Nor Westers: These are dreaded evening thunderstorms in Bengal and Assam.
Their notorious nature can be understood from the local nomenclature of ‘Kalbaisakhi’,
a calamity of the month of Baisakh. These showers are useful for tea, jute and rice
cultivation. In Assam, these storms are known as “Bardoli Chheerha”.
(iv) Loo: Hot, dry and oppressing winds blowing in the Northern plains from Punjab
to Bihar with higher intensity between Delhi and Patna.
Q27. Answer: (a)

Explanation:
OMEGA BLOCK
● The latest heatwave, caused by an “omega block” – a high-pressure pattern that
blocks and diverts the jet stream, allowing a mass of hot air to flow up from northern
Africa and the Iberian Peninsula – follows a similar extreme weather event last month
that made it the hottest June on record. Hence, Option (a) is correct.
● The jet stream largely governs Western Europe’s weather. This high-altitude, high-
velocity river of air meanders around the globe and is constantly changing position.
● When an omega-shaped wave is present on the jet stream which arcs over Europe,
warm dry air from southern Europe and Africa can be pulled north, pushing
temperatures higher than usual. If this upper-level feature coincides with high pressure
at the surface with relatively low pressure to the east and west an omega block is
formed.
● This pattern of flow can be very persistent and lead to long periods of beautiful
weather in summer.
● Decreased cloud cover and transport of warm air over several days can produce very
high temperatures. Such a situation occurs, replacing the usually cool westerly
airstream with warm air from over continental Europe.
● An essential consequence of this situation has been the formation of a Spanish
plume, which transports warm, dry air from over Spain to the UK.
Q28. Answer: (d)

Explanation: Ocean currents are similar to winds in the atmosphere in that they transfer
significant amounts of heat from Earth’s equatorial areas to the poles and thus play
essential roles in determining the climate of coastal regions. In addition, ocean currents
and atmospheric circulation influence one another. Hence, Statement (1) is correct.
An ocean current is a continuous, directed movement of seawater generated by several
forces acting upon the water, including wind, the Coriolis force, breaking waves,

cabbeling, and temperature and salinity differences. Depth contours, shoreline
configurations, and interactions with other currents influence a current's direction and
strength. Thus, Statement (2) is correct.
Equatorial counter current phenomenon is noted near the equator, an eastward flow of
oceanic water in opposition to and flanked by the westward equatorial currents of the
Atlantic, Pacific, and Indian oceans. To either side the trade winds constantly blow and
push enormous volumes of water westward in the equatorial currents, raising the sea level
in the west. Within the doldrums, where strong constant winds are absent, the higher
western sea levels flow downslope to the east. Thus, Statement (3) is correct.
Hence, the correct answer is (d).
Q29. Answer: (b)

Explanation:
Characteristics of Monsoonal Rainfall:
 Monsoonal rainfall is largely governed by relief or topography. For instance, the
windward side of the Western Ghats register a rainfall of over 250 cm. Again, the
heavy rainfall in the north-eastern states can be attributed to their hill ranges and the
Eastern Himalayas. Hence, Statement (1) is correct.
 The monsoon rainfall has a declining trend with increasing distance from the
sea because the humidity in the winds reduces. e.g. Kolkata receives 119 cm during
the southwest monsoon period, Patna 105 cm, Allahabad 76 cm and Delhi 56 cm.
Hence, Statement (2) is not correct.
 The monsoon rains occur in wet spells of few days’ duration at a time. The wet spells
are interspersed with rainless interval known as ‘breaks. Hence, Statement (3) is
correct.
 Rainfall received from the southwest monsoons is seasonal, which occurs between
June and September. Hence, Statement (4) is correct.
 The summer rainfall comes in a torrential downpour leading to considerable runoff and
soil erosion.
 Monsoons play a pivotal role in the agrarian economy of India because over three-
fourths of the total rain in the country is received during the southwest monsoon
season
 Its spatial distribution is also uneven which ranges from 12 cm to more than 250 cm.
Q30. Answer: (d)

Explanation: Agriculture productivity is a synonym for agricultural efficiency. The yield per
unit area is known as agricultural productivity. It is generally the result of the physical,
socio-economic and cultural factors.
Agricultural geographers and economists have developed several methods for the
measurement of agricultural productivity. Some of the essential methods used by the
geographers are given as under:
 Output per unit area. Hence Statement (1) is correct.
 Production per unit of farm labour. Hence, Statement (2) is correct.
 Agricultural production as grain equivalent.
 Input-output Ratio. Hence, Statement (3) is correct.
 Ranking coefficient Method.

 Carrying capacity of land in terms of production.
 Converting total production in terms of money. Hence, Statement (4) is correct.
 To assess the net income in Rupees per hectare of the cropped area.
 Determining the productivity index based on area and yield.
Q31. Answer: (b)

Explanation:
Market Intervention Scheme: Market Intervention Scheme (MIS) is a price support
mechanism implemented on the request of State Governments for procurement of
agricultural and horticultural commodities which are generally perishable in the
event of a fall in market prices. The Scheme is implemented when there is at least a
10% increase in production or a 10% decrease in the ruling rates over the previous
normal year. Hence, Statement (1) is not correct.
Market Intervention Scheme works similarly to the Minimum Support Price based
procurement mechanism for food grains but is an ad-hoc mechanism.
Its objective is to protect the growers of these horticultural/agricultural commodities
from making distress sale in the event of a bumper crop during the peak arrival period
when prices fall to a very low level. Thus, it provides remunerative prices to the
farmers in case of a glut in production and fall in prices. Hence, Statement (2) is
correct.
Proposal of MIS is approved on the specific request of State/Union Territory (UT)
Government, if the State/UT Government is ready to bear 50% loss (25% in case of
North-Eastern States), if any, incurred on its implementation. The Department of
Agriculture & Cooperation is implementing the scheme. Hence, Statement (3) is correct.
Recently was in the news because the government is planning to procure almost 12 lakh
metric tonnes of apple this season, under the MIS.
Hence, the correct answer is (b).
Q32. Answer: (a)

Explanation:
Sleet: Sleet is like slush falling from the sky. Sleet forms when raindrops freeze into ice as
they fall to the ground. They are usually smaller and wetter than hailstones. Hence,
Hail: Hail is ice that falls from the sky, often in round shapes. Hailstones form within
thunderstorm clouds when upward moving air keeps pellets of frozen water from falling.
The pellets grow larger as drops of freezing water hit them and freeze. Eventually, the
balls of ice become so large and heavy that they fall to the ground as hailstones. The
largest documented hailstone weighted more than one and a half pounds! Scientists
estimate that it reached a speed of more than 80 mph as it fell toward Earth. Hence,

Q33. Answer: (d)
Explanation: The periodical rise and fall of
the sea level, once or twice a day, mainly due
to the attraction of the Sun and the Moon, is
called a tide.
Causes of Tides:
Tides are produced by the gravitational
pull of both the Sun and the Moon. Another
factor is centrifugal force, which is the force
that acts to counterbalance the gravity.
Together, the gravitational pull and the
centrifugal force are responsible for creating
the two significant tidal bulges on the Earth.
The Moon and the Sun both exert their
gravitational force on the Earth. The Sun
which is more prominent in mass than the
Moon is also at a greater distance from the
Earth than the Moon. Therefore, the
gravitational attraction of the Moon is more
active on the Earth than the gravitational attraction of the Sun. Thus, Statement (1) is
correct.
Each day a tide is delayed by about 26 minutes because the Earth rotates around its axis
while the Moon revolves around the Earth. Thus, Statement (2) is not correct.
During high tides, water rushes into harbours. This helps ships enter and exit harbours
safely. High tides make ocean/seawater rush into the mouths of rivers. This helps ships to
enter port towns like New York, London, Rotterdam, and Hamburg. This is perfectly
advantageous for some ports in India such as Kandla, Mangalore and Kolkata’s diamond
harbour. Hence, Statement (3) is correct.
Q34. Answer: (d)

Explanation:
Season of Retreating Monsoon: The months of October and November are known
for retreating monsoon because southwest monsoon reverses its direction and start
retreating from North-West India. Hence, Statement (1) is correct.
The retreating southwest monsoon season is marked by clear skies and rise in
temperature. The land is still moist. Owing to the conditions of high temperature and
humidity, the weather becomes rather oppressive. This is commonly known as the
‘October heat’. Hence, Statement (2) is correct.
In the second half of October, the mercury begins to fall rapidly, particularly in northern
India. The weather in the retreating monsoon is dry in north India but it is associated with
rain in the eastern part of the Peninsula. Here, October and November are the rainiest
months of the year.
The widespread rain in this season is associated with the passage of cyclonic
depressions which originate over the Andaman Sea and manage to cross the
eastern coast of the southern Peninsula. These tropical cyclones are very destructive.

The thickly populated deltas of the Godavari, Krishna and Kaveri are the most impacted
regions. Hence, Statement (3) is correct.
Every year cyclones bring disaster here. A few cyclonic storms also strike the coast of
West Bengal, Bangladesh and Myanmar. A bulk of the rainfall of the Coromandel coast is
derived from these depressions and cyclones. Such cyclonic storms are less frequent in
the Arabian Sea.
Q35. Answer: (b)

Explanation: The Sargasso Sea is a region of the North Atlantic Ocean bounded by four
currents forming an ocean gyre. Unlike all other regions called seas, it has no land
boundaries. It is distinguished from other parts of the Atlantic Ocean by its characteristic
brown Sargassum seaweed and often calm and motionless blue water. Thus, Statement
(1) is correct.
The sea is bounded by the warm current on the west by the Gulf Stream, on the north by
the North Atlantic Current, on the south by the North Atlantic Equatorial Current but on the
east by the cold Canary Current, a clockwise-circulating system of ocean currents termed
the North Atlantic Gyre. Thus, Statement (2) is not correct.
Saragossa Sea is not fit for navigation due to abundance of rootless seaweeds which put
obstructions in the navigation. Thus, Statement (4) is correct.
Sargassum provides a home to an amazing variety of marine species. Turtles use
sargassum mats as nurseries where hatchlings have food and shelter. Sargassum also
provides essential habitat for shrimp, crab, fish, and other marine species that have
adapted specifically to these floating algae. Thus, Statement (3) is correct.

Q36. Answer: (a)
Explanation: The deserts are formed as a result of the worldwide circulation patterns of
air, which develop semi-permanent belt of high pressure in the general vicinity of tropics.
Within these belts, air tends to descend from high altitudes toward the surface. During
descent its temperature is significantly increased through compressional heating, warming
at the adiabatic rate of 10°C per 1000 meters. Consequently, it arrives at the surface of
the Earth as very hot, arid air and incapable of producing precipitation which causes the
aridity. Thus, the subtropical high-pressure belt region is ideally suited for the formation of
deserts. Thus, Statement (1) is correct.
Cold currents from the polar regions flow towards the equator and, in places, come up
against the edges of continents. Additional masses of cold water are added to them by
upwelling from the frigid ocean depths. Winds blowing landwards over this cold water
become cold and carry very little moisture causing desiccation effect; they may bring fog
and mist but rarely condensed into the rain. Therefore, the presence of cold current and
not the warm current is responsible for the formation of the desert. Thus, Statement (2) is
not correct.
It is the presence of the off-shore trade winds blowing across these regions, which are
amongst the reasons for the formation of deserts. Thus, Statement (3) is not correct.
Q37. Answer: (d)

Explanation: The ocean currents are horizontal flows of a mass of water in a reasonably
defined direction over great distances. They are like streams of water flowing through the
main body of the ocean in a regular pattern. The average speed of the current is between
3.2 km to 10 km per hour. Ocean currents with higher speed are called stream and
currents with lower speed are called drift. Thus, Pair (1) is correct.
Stream refers to the surface motion, which is still more defined. Its boundaries are more
identifiable. It is like a big river on the continent. Thus, Pair (2) is not correct.
Drift refers to the slow motion of the surface layer with no clear boundaries and the motion
being erratic. The speed of water in adrift may be between 16- 24 Km per day. Thus, Pair
(3) is not correct.
Q38. Answer: (c)

Explanation: When a tide enters the narrow and shallow estuary of a river, the front of
the tidal wave appears to be vertical owing to the piling up of water of the river against the
tidal wave and the friction of the river bed. The steep-nosed tide crest looks like a vertical
wall of water rushing upstream and is known as a tidal bore.
The favourable conditions for tidal bore include- strength of the incoming tidal wave, slim
and depth of the channel and the river flow. The river must be fairly shallow. It must have
a narrow outlet to the sea. However, the estuary, or place where the river meets the sea,
must be wide and flat. The coast’s tidal range—the area between high tide and low tide—
must be quite large, usually at least 6 meters (about 20 feet). A tidal bore takes place
during the flood tide and never during the ebb tide. The occurrence of tidal bore requires a
large tide, preferably with wave height exceeding 5 metres. When all of these conditions
are met, a tidal bore is formed.

• In India, tidal bores are standard in the Hooghly river.
• Most powerful tidal bores occur in the Qiantang River in China.
Hence, the answer is (c).
Q39. Answer: (c)

Explanation: The general circulation of the oceans consists primarily of wind-driven
ocean currents. These, however, are superimposed on the much more sluggish circulation
driven by horizontal differences in temperature and salinity—namely, thermohaline
circulation. Thermohaline circulation, also called Global Ocean Conveyor or Great
Ocean Conveyor Belt, is the component of a general oceanic circulation controlled by
horizontal differences in temperature and salinity. It continually replaces seawater at depth
with water from the surface and slowly replaces surface water elsewhere with water rising
from deeper depths. Thus, Statement (1) is correct.
Although this process is relatively slow, a tremendous volume of water is moved, which
transport heat, nutrients, solids, and other materials over vast distances. Thermohaline
circulation also drives warmer surface waters poleward from the subtropics, which
moderates the climate of Iceland and other coastal areas of Europe. Thus, Statement (2)
is correct.
Q40. Answer: (c)

Explanation:
Ria Coast: In upland coastal regions where the mountains run at right angles to the sea,
that is transverse or discordant to the coast, a rise in the sea level submerges or drowns
the lower parts of the valleys to form long, narrow branching inlets separated by narrow
headlands. They differ from fiords in two critical respects, i.e. they are not glaciated,
and their depth increases seawards. Thus, Statement (1) is correct.
A ria coast is typical of the Atlantic type of coast like those of north-west France, north-
west Spain, south-west Ireland, Devon and Cornwall. As rias are generally backed by
highland, they support few large commercial ports though they have deep water and offer
sheltered anchorage. They have been extensively used for siting fishing ports and naval
bases such as Plymouth and Brest.

ii. Fiord Coast: Fiords are submerged U-shaped glacial troughs. They mark the paths of
glaciers that plunged down from the highlands. They have steep walls, often rising straight
from the sea, with tributary branches joining the main inlet at right angles.
Due to the greater intensity of ice erosion fiords are deep for great distances inland but
there is a shallow section at the seaward end formed by a ridge of rock and called the
threshold. Thus, Statement (2) is correct.
Fiord coasts are almost entirely confined to the higher latitudes of the temperate regions
which were once glaciated e.g. Norway, Alaska, British Columbia, southern Chile and the
South Island of New Zealand.
Hence, the correct answer is (c).
Q41. Answer: (a)

Explanation: On a global scale, large ocean currents are constrained by the continental
masses found bordering the three oceanic basins. Continental borders cause these
currents to develop an almost closed circular pattern called a gyre. Each ocean basin has
a large gyre located at approximately 30° North and South latitude in the subtropical
regions. The currents in these gyres are driven by the atmospheric flow produced by the
subtropical high-pressure systems. In the Southern Hemisphere, these gyre systems do
not develop because of the lack of constraining landmasses.
Gyres rotate clockwise in the Northern Hemisphere and counter-clockwise in the
Southern Hemisphere, driven by easterly winds at low latitudes and westerly winds at
high latitudes. Due to a combination of friction and planetary rotation, currents on
the western boundaries of ocean gyres are narrower and flow faster than eastern
boundary currents. Warm surface currents flow out of ocean gyres from the tropics to
higher latitudes, and cold surface currents flow from colder latitudes toward the equator.
Thus, Statements (1) and (2) are correct.
It is to be noted that the Gyre is not well developed in the Indian Ocean. Here the current
comes under the influence of Monsoon winds. In the summers the Gyre rotates in
clockwise fashion along with southwest monsoon and reverses its direction with the
northeast monsoon and rotates in an anticlockwise manner. Thus, Statement (4) is not
correct.
Earth’s continents and other landmasses (such as islands) also influence the creation of
ocean gyres. The massive South Pacific Gyre, for instance, includes hundreds of
kilometres of the open ocean. It is bounded only by the continents of Australia and South
America, as well as the Equator and powerful Antarctic Circumpolar Current (ACC). Thus,
Hence, the correct answer is (a)
Q42. Answer: (d)

Explanation:
Conditions for Coral reef to grow:
Warm water temperature: Reef-building corals require warm water conditions to survive.
Different corals living in different regions can withstand various temperature fluctuations.
However, corals generally live in water temperatures of 68–90°F or 20–32°C. Thus,
Sunlight: Corals need to grow in shallow water where sunlight can reach them. Corals
depend on the zooxanthellae (algae) that grow inside of them for oxygen and other things,

and since these algae need sunlight to survive, corals also need sunlight to survive.
Corals rarely develop in water deeper than 165 feet (50 meters). Thus, Statement (2) is
correct.
Clean water: Corals are sensitive to pollution and sediments. Sediment can create cloudy
water and be deposited on corals, blocking out the Sun and harming the polyps.
Wastewater discharged into the ocean near the reef can contain too many nutrients that
cause seaweeds to overgrow the reef. Thus, Statement (3) is not correct.
Saltwater: Corals need saltwater to survive and require a certain balance in the ratio of
salt to the water. This is why corals do not live in areas where rivers drain freshwater into
the ocean (“estuaries”).
Water disturbed by currents and waves brings nutrients for the growth of corals. Thus,
Q43. Answer: (b)

Explanation:
Factors affecting Oceanic Salinity:
 The rate of evaporation.
 The amount of freshwater added by precipitation, streams and icebergs; and
 The degree of water mixing by currents.
Horizontal distribution of Salinity:
 Latitudinal Distribution: It decreases from the Equator towards the Poles. In general,
there is low salinity in equatorial zone (because of precipitation), high in the tropical
belt, low in the temperate zone and minimum in the sub-polar zone (because of low
evaporation and melting of glaciers). Thus, Statements (1), (2) and (4) are correct.
 Within the tropics salinity of closed seas is much higher than the open oceans due to a
higher rate of evaporation. Thus, Statement (3) is not correct.
Q44. Answer: (d)

Explanation: Submarine canyon is a narrow steep-sided V-shape valley that cuts into the
continental slope and continental rise of the oceans. Submarine canyons originate either
within continental slopes or on a continental shelf. They are rare on continental margins
that have extremely steep continental slopes or escarpments. Submarine canyons are
so-called because they resemble canyons made by rivers on land. Thus,
Statements (1) and (2) are correct.

The submarine canyons have a substantial number of tributaries at their heads but
generally do not have as many tributaries in their lower courses as do the land canyons.
Even so, many submarine canyons end in a series of distributary channels through the
continental rise, and these channels often emerge in the deep sea on abyssal plains that
are found adjacent to the continents, especially in the Atlantic basin. Thus, Statement (3)
is correct.
Q45. Answer: (d)

Explanation:
Vertical distribution of temperature
Except in the polar region, the vertical distribution of temperature in the sea nearly
everywhere shows a decrease in temperature with depth. The maximum temperature of
the oceans is always at the surface because it directly receives the insolation and heat is
transmitted to the lower sections of the ocean through conduction. So, the temperature
decreases with depth, but the rate of decrease is not uniform everywhere.
Diagram of the vertical distribution of temperature shows that Statements (a), (b),
and (c) are correct.
Temperature is highest at the sea surface because the Sun's rays give maximum heat
energy to the surface. The effect of the Sun's rays decreases with increasing depth which
results in lower temperature as the depth increases. Thus, Statement (d) is not correct.

Hence, the answer is (d).
Q46. Answer: (d)

Explanation: AUGMENTING CROPS: When different sub crops are sown to supplement
the yield of the main crop, then the sub crops are known as augmenting crops.
CROP ROTATION: Recurrent succession of a set of selected crops grown on a particular
agricultural land for a definite time of period according to a definite plan is known as crop
rotation.
COMPANION CROPS: When the different crops are sown in different rows but not mixed,
then these crops are known as a companion crop to each other.
GUARD CROPS: When hardy or thorny crops remain surrounding the main crops as a
guard, these are called guard crops.
Therefore, the correct answer is (d)
Q47. Answer: (a)

Explanation:
Salinities of the seas mentioned above are as follows:
The Persian Gulf = lies in tropical belt leading to higher evaporation (37-40%)
Black Sea= influx of freshwater from rivers like Danube, Dniester and Dnieper (18%)
Bering Sea= higher latitudes and thus low evaporation rates (28-30%)
Baltic Sea= influx of melt and freshwater (3-15%)
Q48. Answer: (a)

Explanation:

Katabatic wind (from the Greek: katabaino - to go down) is the generic term for
downslope winds flowing from high elevations of mountains, plateaus, and hills down their
slopes to the valleys or planes below.
Warm, dry katabatic winds occur on the lee side of a mountain range situated in the
path of a depression. Examples for these descending, adiabatically warmed katabatic
winds are the Foehn winds. Hence, Statement (1) is not correct.
Cold and usually dry katabatic winds, like the Bora, result from the downslope gravity
flow of cold, dense air. Hence, Statement (3) is correct.
The gentler katabatic flows of hill slopes produce frost hollows- or frost pocket is the
name for the low-lying area (e.g. a valley bottom or a smaller hollow) where frosts occur
more frequently than in the surrounding area. This usually happens after a dry, clear and
cold night cold air drains down neighbouring slopes into a localised pocket from which it is
slow (or unable) to escape. Hence, Statement (2) is correct.
Q49. Answer: (d)

Explanation: Tropical rainforests exhibit high levels of biodiversity. Around 40% to 75% of
all biotic species are indigenous to the rainforests. Rainforests are home to half of all the
living animal and plant species on the planet. Two-thirds of all flowering plants can be
found in rainforests. A single hectare of rainforest may contain 42,000 different species of
insect, up to 807 trees of 313 species and 1,500 species of higher plants. Tropical
rainforests have been called the "world's largest pharmacy" because over one-quarter of
natural medicines have been discovered within them. There may likely be many millions of
species of plants, insects and microorganisms still undiscovered in tropical rainforests.
The Amazon rainforest, acknowledged by many as one of the largest natural pharmacies
in the world, is home to an abundance of natural resources and plants, renowned for their
medicinal properties.
Q50. Answer: (c)

Explanation: Shoals appear as long and narrow ridges. The landform occurs when an
ocean current, stream, or river facilitates the deposition of granular material and sediment
leading to localised shallowing of the water. Hence Statement (1) is correct.
Shoals can form as fluvial landforms in lakes, rivers, and streams or as an ocean bank in
the sea. It is a detached elevation with shallow depths. Since they project out of the water
with moderate heights, they are dangerous for navigation. Hence Statement (2) is
correct.
Q51. Answer: (a)

Explanation:
Statement (1) is correct:
The Phillips Curve is an economic concept developed by A. W. Phillips stating that
inflation and unemployment have a stable and inverse relationship. The theory claims that
with economic growth comes inflation, which in turn should lead to more jobs and less
unemployment.
Statement (2) is not correct:

The Lorenz curve is a graphical representation of income inequality or wealth inequality
developed by American economist Max Lorenz in 1905. The graph plots percentiles of the
population on the horizontal axis according to income or wealth.
Statement (3) is not correct:
The Laffer curve is a theory developed by supply-side economist Arthur Laffer to show the
relationship between tax rates and the amount of tax revenue collected by governments.
The curve is used to illustrate Laffer’s main premise that the more an activity — such as
production — is taxed, the less of it is generated. Likewise, the less an activity is taxed,
the more of it is generated.
Hence, option (a) is the correct answer.
Q52. Answer: (a)

Explanation: The Fiscal Responsibility and Budget Management (FRBM) Act was
enacted in 2003 which set targets for the government to reduce fiscal deficits. In May
2016, the government set up a committee under NK Singh to review the FRBM Act. The
Committee recommended that the government should target a fiscal deficit of 3 per cent
of the GDP in years up to March 31, 2020 cut it to 2.8 per cent in 2020-21 and to 2.5 per
cent by 2023. It has recommended a combined Debt to GDP of 60 per cent for the
General Government by 2023— consisting of 40 per cent for Central Government and 20
per cent for State Governments. Hence, statement (1) is not correct. Revenue deficit to
GDP ratio to decline steadily by 0.25 percentage points each year with the path specified
as follows: 2.3% in FY17, 2.05% in FY18, 1.8% in FY19, 1.55% in FY20, 1.30% in FY21,
1.05% in FY22, and 0.8% in FY23. Hence, statement (2) is not correct.
The FRBM review panel had also recommended enacting a new Debt and Fiscal
Responsibility Act after repealing the existing Fiscal Responsibility and Budget
Management (FRBM) Act, and creating a Fiscal Council that would monitor the
government’s fiscal announcements for any year, provide its forecasts and analysis, and
advise the Ministry on when to trigger the escape clause provision. Hence, option (a) is
the correct answer.
Q53. Answer: (a)

Explanation:
Statement (1) is correct: Market Stabilization scheme (MSS) is a monetary policy
intervention by the RBI to withdraw excess liquidity (or money supply) by selling
government securities in the economy. This instrument for monetary management was
introduced in 2004.
Statement (2) is incorrect: The amount raised under the MSS does not get credited to
the Government Account but is maintained in a separate cash account with the RBI and
are used only for redemption/buyback of Treasury-Bills/Dated Securities issued under the
scheme.
Q54. Answer: (b)

Explanation:
Statement (1) is incorrect: Net National Income is Gross National Income or Gross
National Product less depreciation. Gross National Product (GNP) is the Gross Domestic
Product (GDP) plus net factor income from abroad. It measures the monetary value of all

the finished goods and services produced by the country’s factors of production
irrespective of their location. Only the finished or final goods are considered as factoring
intermediate goods used for manufacturing would amount to double counting. It includes
taxes but does not include subsidies. When depreciation is deducted from the GNP, we
get Net National Income.
Statement (2) is correct: Gini Coefficient depicts the income equalities prevailing in the
country. The coefficient varies between 0, which reflects complete equality and 1, which
indicates complete inequality (one person has all the income or consumption, all others
have none). Hence, option (b) is the correct answer.
Q55. Answer: (d)

Explanation: Money market can be defined as a market for short term funds with
maturities ranging from overnight to one year and include financial instruments that are
considered to be close substitutes of money. Short maturity period and high liquidity are
two characteristic features of the instruments which are traded in the money
market. Some of the common money market instruments include Banker’s Acceptance,
Treasury Bills, Repurchase Agreements, Certificate of Deposits and Commercial Papers.
Treasury bill: These are short term money market instruments, which are issued by the
RBI on behalf of the Govt of India.
Certificate of Deposits (CD): After Treasury bill, it is the lowest risk category investment
option issued by Scheduled commercial banks and FIs.
Commercial bill: Bills of exchange are negotiable instruments drawn by the seller (drawer)
of the goods on the buyer (drawee) of the goods for the value of the goods delivered.
These bills are called trade bills. Hence, option (d) is the correct answer.
Q56. Answer: (b)

Explanation:
Statement (1) is incorrect: Minimum Support Price (MSP) is a form of market
intervention by the Government of India to insure agricultural producers against any sharp
fall in farm prices. MSP is the price fixed by the Government of India to protect the
producer - farmers - against excessive fall in price during bumper production years.
Statement (2) is correct: The Government of India announces the Minimum Support
Prices at the beginning of the sowing season for certain crops based on the
recommendations of the Commission for Agricultural Costs and Prices (CACP). The
minimum support prices are a guaranteed price for their produce from the Government.
The primary objectives are to support the farmers from distress sales and to procure food
grains for public distribution.
Q57. Answer: (a)

Explanation:
Statement (1) is correct: The government had constituted the National Investment Fund
(NIF) in November 2005 into which the proceeds from disinvestment of Central Public
Sector Enterprises were to be channelised. The corpus of NIF was to be permanent and
NIF was to be professionally managed to provide sustainable returns to the Government,
without depleting the corpus.

Statement (2) is incorrect: Strategic disinvestment is transferring the ownership and
control of a public sector entity to some other entity (mostly to a private sector entity).
While presently PSUs for strategic sale are identified by NITI Aayog, the tweak in policy
has now brought the Department of Investment and Public Asset Management (DIPAM)
into the picture. DIPAM and NITI Aayog will now jointly identify PSUs for strategic
disinvestment. Hence, option (a) is the correct answer.
Q58. Answer: (a)

Explanation:
Statement (1) is correct: Government of India launched the Gold Monetisation Scheme
in 2015. Under this scheme, the depositor can deposit a minimum of 30 grams of raw gold
in the form of bars, coins, jewellery excluding the stones and other metals. However, there
is no cap on the maximum amount of gold that can be deposited.
Statement (2) is incorrect: Banks hold the deposits under GMS on behalf of the Centre,
who also decides the interest rate. The deposits have to be made at a certified
government centre called Collection and Purity Testing Centre (CPTC). All Scheduled
Commercial Banks (excluding RRBs) have been allowed to implement the Scheme.
Q59. Answer: (b)

Explanation: The Reserve Bank of India conducted a simultaneous sale and purchase of
bonds to bring longer-term yields lower. The RBI purchased the longer-term maturities
and sold the shorter duration ones. It will soften the yield of long-term borrowings,
making them cheaper. Similar, such move was taken by U.S. Federal Reserve in 2011-12
to make long-term borrowing cheaper. Hence, option (b) is the correct answer.
Q60. Answer: (d)

Explanation: Committee on Comprehensive Financial Services for Small Businesses and
Low-Income Households (commonly known as the committee on financial inclusion in
India) was chaired by Nachiket Mor, a member of the Central Board of the RBI.
 The SEBI-appointed TK Viswanathan committee, on fair market conduct.
 A Committee for faster resolution of stressed assets involving multiple Public Sector
Banks (PSBs) to examine the setting up of an Asset Reconstruction Company (ARC)
and/or Asset Management Company (AMC) was set up under the Chairmanship of
Shri Sunil Mehta, non-executive chairman of Punjab National Bank.
 The P J Nayak Committee or officially the Committee to Review Governance of
Boards of Banks in India was set up by the Reserve Bank of India (RBI) to review the
governance of the board of banks in India. The Committee was set up in January
2014. The Committee was chaired by P J Nayak, the former CEO and Chairman of
Axis Bank.
Therefore the correct answer is (d).
Q61. Answer: (b)

Explanation:
Statement (1): Increasing exports can lead to a trade surplus and it will help in tackling
the Current Account Deficit issue that India is facing mainly due to Trade Deficit. Thus, by
increasing exports, India will have increased foreign income and thereby, higher FOREX.

Statement (2): Increasing imports will have a negative effect as India need to pay off
the source countries in foreign currencies, and it will reduce India’s FOREX.
Statement (3): Increased Foreign Investments leads to increase in FOREX as
investments are made in global currencies, thus enhancing India’s FOREX reserves.
Statement (4): Increased domestic output mostly due to economies of scale, makes the
product more competitive by reducing operational costs and leads to increased imports,
thereby, leading to higher FOREX.
Statement 5: India is highly dependent on the import of crude oil, which results in an
outflow of foreign currencies. Increased Crude oil price results in a higher outflow of
foreign currencies, thus reducing FOREX reserves.
Therefore the correct answer is (b).
Q62. Answer: (b)

Explanation: A 'non-performing asset” (NPA) is defined as a credit facility in respect of
which the interest and/or instalment of principal has remained 'past due' for a specified
period.
Public Sector Banks are still not adequately professionalised. Instances of political
interference in lending decisions are not unknown. The P.J. Nayak Committee has
recommended the setting up of Banking Investment Company, to which the Government
transfers all its shareholdings. Hence, Statement (1) is correct.
Delaying NPA recognition compounds to the problem of NPAs as without recognition, they
cannot be resolved. Due to this, RBI undertook an Asset Quality Review that revealed
massive understatement of NPAs. Hence, Statement (2) is not correct.
Both the out of court restructuring process and the bankruptcy process need to be
strengthened and made speedy. The former requires protecting the ability of bankers to
make commercial decisions without subjecting them to an inquiry. The latter requires
steady modifications where necessary to the bankruptcy code so that it is effective,
transparent, and not gamed by unscrupulous promoters. The Insolvency and Bankruptcy
Code in India seeks to achieve this. Hence, Statement (3) is correct.
Credit targets are sometimes achieved by abandoning appropriate due diligence, creating
the environment for future NPAs. Hence, Statement (4) is not correct.
Q63. Answer: (a)

Explanation: The genesis of the Lead Bank Scheme (LBS) can be traced to the Study
Group headed by Prof. D. R. Gadgil (Gadgil Study Group) on the Organizational
Framework for the Implementation of the Social Objectives, which submitted its report in
October 1969. The Study Group drew attention to the fact that commercial banks did not
have adequate presence in rural areas and also lacked the required rural orientation.
LBS envisages assignment of lead roles to individual banks (both in public sector and
private sector) for the districts allotted to them. A bank having a relatively large network of
branches in the rural areas of a given district and endowed with adequate financial and
manpower resources has generally been entrusted with the lead responsibility for that
district. Hence, Statement (1) is not correct.
Accordingly, all the districts in the country have been allotted to various banks. The lead
bank acts as a leader for coordinating the efforts of all credit institutions in the allotted
districts to increase the flow of credit to agriculture, small-scale industries and other

economic activities included in the priority sector in the rural and semi-urban areas, with
the district being the basic unit in terms of geographical area. Hence, Statement (2) is
correct.
State Level Bankers' Committees are formed in all the States for inter-institutional
coordination and joint implementation of programs and policies by all the financial
institutions operating in the State. Responsibility for convening State Level Bankers’
Committee (SLBC) meetings has been assigned to various commercial banks. Hence,
Therefore the correct answer is (a).
Q64. Answer: (a)

Explanation: The Department of Disinvestment was set up as a separate Department on
10th December 1999 and was later renamed as Ministry of Disinvestment from 6th
September 2001. From 27th May 2004, the Department of Disinvestment is one of the
Departments under the Ministry of Finance. The Department of Disinvestment has been
renamed as Department of Investment and Public Asset Management (DIPAM) from 14th
April 2016. Hence, Statement (1) is not correct.
The Cabinet has approved a new process of strategic disinvestment to expedite
privatisation of select PSUs. While presently PSUs for strategic sale are identified by NITI
Aayog, the tweak in policy has now brought DIPAM into the picture. DIPAM and NITI
Aayog will now jointly identify PSUs for strategic disinvestment. Hence, Statement (2) is
correct.
Therefore the answer is (a).
Q65. Answer: (a)

Explanation: The debt to GDP ratio compares a country's sovereign debt to its total
economic output for the year. So, Statement (1) is correct.
In India, private debt in 2017 was 54.5 per cent of the GDP and the general government
debt was 70.4 per cent of the GDP, the total debt of about 125 percent of the GDP,
according to the latest IMF figures. In comparison, the debt of China was 247 per cent of
the GDP. According to the Institute of International Finance (IIF), China’s total corporate,
household and government debt rose to 303% of GDP in the first quarter of 2019 as
Beijing steps up support for the cooling economy while trying to contain financial risks. So,
It allows assessing a country's risk of default. A high ratio means a country is at a higher
risk to pay off its debt and it can lead to probable default. Whereas, in general, if the ratio
is declining, then the government’s fiscal strength is improving. So, Statement (3) is
correct.
Therefore, the answer is (a).
Q66. Answer: (b)

Explanation: Monetary policy refers to the policy of the Reserve Bank of India in matters
of interest rates, money supply and availability of credit. RBI uses various monetary policy
tools/instruments to achieve its purpose. The instruments of Monetary Policy can be
qualitative or quantitative.
Quantitative tools are used to control the volume of total credit, while Qualitative tools
control the flow of credit.

Monetary policy tools
Quantitative tools Qualitative Tools
Open Market Operations Credit rationing
Statutory Liquidity Ratio Selective credit control
Liquidity Adjustment Facility (Repo and Margin requirements/ Loan to Value
Reverse Repo)
Marginal Standing Facility Consumer credit regulation
Cash Reserve Ratio Direct Action
Moral Suasion
Q67. Answer: (d)

Explanation: The Union Government launched ‘Indradhanush 2.0’, a comprehensive plan
for the recapitalisation of public sector lenders.
Under Indradhanush roadmap announced in 2015, the government had announced to
infuse Rs 70,000 crore in state-run banks over four years while they will have to raise a
further Rs 1.1 lakh crore from the markets to meet their capital requirements in line with
global risk norms, known as Basel-III. Hence, Statement (1) is not correct.
It aims to clean up the balance sheets of PSBs to ensure banks remain solvent and fully
comply with global capital adequacy norms, Basel-III. Hence, Statements (2) and (3) are
correct.
Q68. Answer: (a)

Explanation: Rupee appreciation is when the value of rupee increases (becomes
expensive) and fewer rupees can buy one unit of foreign currency. This is also known as
strengthening of rupee as now INR is worth more than foreign currency. In the given
question, only option (a) will lead to an inflow of foreign currencies; option (b) and (c) will
lead to an outflow of foreign currencies. Whereas option (d) will lead to less gain in foreign
currencies due to reduced exports of Indian products. Thus, option b, c and d would cause
depreciation of Indian rupee. Therefore, option (a) is the correct answer.
Q69. Answers: (c)

Explanation: Disinvestment means the dilution of the stake of the Government in a
public enterprise. A strategic sale is defined as the sale of a substantial portion of
government shareholding of a Central Public Sector Enterprise (CPSE) of up to 50% or
higher, along with transfer of management control.
Inverted duty structure is a situation where import duty on finished goods is low
compared to the import duty on raw materials that are used in the production of such
finished goods.
In economics, a beggar-thy-neighbour policy is an economic policy through which one
country attempts to remedy its economic problems by means that tend to worsen the
economic problems of other countries.
Therefore 2nd and 3rd pairs are not correct, and the correct answer is (c) i.e. 1 only.
Q70. Answer: (b)

Explanation: Indian economy is facing multiple structural issues inhibiting investment -
fiscal challenges, falling revenues and demands for industrial products and poor capacity
utilisation.
Responsible factors for declining of investment:
a) In the long-term, inflation rates can influence investment. High and variable inflation
tends to create more uncertainty and confusion, with uncertainties over the future cost
of investment. Hence option (a) is not correct.
b) High-interest rates: Investment is financed either out of current savings or by
borrowing. High-interest rates make it more expensive to borrow. Therefore it is the
higher interest rates, not lower rates, which discourage investment in the economy.
Hence option (b) is correct.
c) Slower Economic growth: Firms invest to meet future demand. If demand is falling,
then firms will cut back on investment. If economic prospects improve, then firms will
increase investment as they expect future demand to rise. Hence option (c) is not
correct.
d) Another factor that can influence investment in the long-term is the level of savings. A
high level of savings enables more resources to be used for investment. Hence
option (d) is not correct.
Therefore, the answer is (b).
Q71. Answer: (a)

Explanation: United Nations Conference on Trade and Development (UNCTAD) was
established in 1964 for the integrated treatment of trade and development and related
issues in areas of investment, finance, technology, enterprise development and
sustainable development. It is an organ of the UN General Assembly (UNGA).
World Investment Report is published by (a) United Nations Conference on Trade and
Development (UNCTAD). Hence Statement (a) is correct.
The World Investment Report supports policymakers by monitoring global and regional
foreign direct investment trends and documenting national and international investment
policy developments.
Q72. Answer: (b)

Explanation: The trade-to-GDP ratio is an indicator of the relative importance of
international trade in the economy of a country. It is calculated by dividing the aggregate
value of imports and exports over a period by the gross domestic product for the same
period. Although called a ratio, it is usually expressed as a percentage. It is used as a
measure of the openness of a country to international trade, and so may also be called
the trade openness ratio. Hence Statement (1) is not correct.
Other factors aside, the trade-to-GDP ratio tends to be low in countries with large
economies and large populations such as Japan and the United States, and tend to have
a higher value in small economies like Luxembourg and Singapore. Hence Statement (2)
is correct.
Q73. Answer: (a)

Explanation: It is more robust and improved over preferential trade agreements. In FTAs,
tariffs on items covering substantial bilateral trade are eliminated between the partner
countries. These members continue to maintain independent trade policies with non-
member countries. India-Sri Lanka, India- ASEAN, NAFTA
Q74. Answer: (a)

Explanation: Pareto's efficiency is defined as the economic situation when the
circumstances of one individual cannot be made better without making the situation worse
for another individual. Pareto's efficiency takes place when the resources are most
optimally used. Pareto's efficiency was theorized by the Italian economist and engineer
Vilfredo Pareto. It is a purely economic concept and has no relationship with the concept
of equal or fair utilisation of resources. It has wide applications in the field of economics
and engineering. It is the final optimum solution beyond which any change would directly
lead to a loss in the allocation of resources. Pareto's efficiency is, thus, the complete
solution in itself. However, it is almost impossible to achieve. Hence, option (a) is the
correct answer.
Q75. Answer: (c)

Explanation:
Statement (1) is correct: A Giffen Good is a product of which the demand increases as
its price increases, rather than falls (opposite to the general theory of demand)—named
after Robert Giffen (1837–1910). It applies to the large proportion of the goods belonging
to the household budget (as flour, rice, pulses, salt, onion, potato, etc. in India)—an
increase in their prices produces a sizeable negative income effect completely
overcoming the average substitution effect with, people buying more of the goods.
Statement (2) is correct: An inferior good is an economic term that describes a good
whose demand drops when people's incomes rise. This occurs when a good has more
costly substitutes that see an increase in demand as incomes and the economy improve.
Conversely, demand for inferior goods increases when incomes fall or the economy
contracts. Hence, option (c) is the correct answer.
Q76. Answer: (c)

Explanation:
Statement (1) is correct: The measure of responsiveness of the demand for a good
towards the change in the price of a related good is called cross-price elasticity of
demand. With the consumption behaviour being related, the change in the price of a
related good leads to a change in the demand for another good.
Statement (2) is correct: It is always measured in percentage terms. Related goods are
of two kinds, i.e. substitutes and complementary goods. In case the two goods are not
related, the Coefficient of Cross Elasticity is zero. In case the two goods are substitutes
for each other like tea and coffee, the cross-price elasticity will be positive, i.e. if the price
of coffee increases, the demand for tea increases. On the other hand, in case the goods
are complementary like pen and ink, then the cross elasticity will be negative, i.e. demand
for ink will decrease if prices of pen increase or vice-versa.

Q77. Answer: (c)
Explanation:
Statement (1) is correct: A recession is a period of declining economic performance
across an entire economy, frequently measured as two consecutive quarters. A significant
fall in spending generally leads to a recession. The recession which hit the globe in 2008
is the most recent example of a recession.
Statement (2) is correct: The paradox of thrift was popularized by the renowned
economist John Maynard Keynes. It states that individuals try to save more during an
economic recession, which necessarily leads to a fall in aggregate demand and hence in
economic growth. Such a situation is harmful to everybody as investments give lower
returns than usual.
Q78. Answer: (c)

Explanation:
Statement (1) is correct: Financial Stability and Development Council (FSDC) is an
apex-level body constituted by the government of India. It was constituted in December
2010. It is an autonomous body dealing with macro-prudential and financial regularities in
the entire financial sector of India.
Statement (2) is correct: The Union Finance Minister chairs it. Recently Minister of State,
Department of Economic Affairs and Secretary, Ministry of Electronics and Information
Technology have been added as new members to the FSDC.
Q79. Answer: (b)

Explanation: Policies to reduce inflation include:
Fiscal tools – Higher income tax and lower government spending, will reduce aggregate
demand, leading to lower growth and less demand-pull inflation. Raising direct taxes,
leading to a reduction in real disposable income. Reduction of subsidies is a fiscal
measure that reduces inflation. High subsidies increase the fiscal deficit which is
inflationary.
Monetary tools – Reserve Bank of India (RBI) sets rates of government securities based
on rates prevalent in the market. Higher interest rates on securities increase the cost of
borrowing and discourage spending. This leads to lower inflation.
Q80. Answer: (d)

Explanation:
Statement (1) is not correct: Small finance banks are a type of niche banks in India. The
aim behind these to provide financial inclusion to sections of the economy not being
served by other banks, such as small business units, small and marginal farmers, micro
and small industries and unorganised sector entities. The small finance bank is subjected
to all prudential norms and regulations of RBI as applicable to existing commercial banks
including the requirement of maintenance of Cash Reserve Ratio (CRR) and Statutory
Liquidity Ratio (SLR). No forbearance would be provided for complying with the statutory
provisions.

Statement (2) is not correct: The foreign shareholding in the small finance bank would
be as per the Foreign Direct Investment (FDI) policy for private sector banks as amended
from time to time.
Statement (3) is correct: The minimum paid-up equity capital for small finance banks
shall be Rs. 100 crore.
Q81. Answer: (c)

Explanation:
Point (1) is not correct: Reserve Bank of India (RBI) regulates NBFC Micro Finance
Institutions. MUDRA Bank is responsible for regulating as well as refinancing of other
micro-finance institutions in the business of lending to micro/ small business entities
associated with manufacturing, trading and service activities.
Point (2) is correct: National Bank for Agriculture and Rural Development (NABARD) is
an apex development financial institution in India. The Bank has been entrusted with
"matters concerning policy, planning and operations in the field of credit
for agriculture and other economic activities in rural areas in India". NABARD is active in
developing financial inclusion policy and is a member of the Alliance for Financial
Inclusion.
Point (3) is correct: Rural Cooperative Banks and Regional Rural banks are the two
crucial institutions involved in the delivery of rural credit. NABARD is responsible for
regulating and supervising the functions of Co-operative banks and Regional Rural Banks.
Q82. Answer: (c)

Explanation: The Government of India has enacted the Micro, Small and Medium
Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro,
small and medium enterprises is as under:
Enterprises engaged in the manufacture or production, processing or preservation of
goods as specified below:
1. A microenterprise is an enterprise where investment in plant and machinery does not
exceed Rs. 25 lakh;
2. A small enterprise is an enterprise where the investment in plant and machinery is
more than Rs. 25 lakh but does not exceed Rs. 5 crore;
3. A medium enterprise is an enterprise where the investment in plant and
machinery is more than Rs.5 crore but does not exceed Rs.10 crore.
Enterprises engaged in providing or rendering of services and whose investment in
equipment (original cost excluding land and building and furniture, fittings and other items
not directly related to the service rendered or as may be notified under the MSMED Act,
2006 are specified below.
1. A microenterprise is an enterprise where the investment in equipment does not
exceed Rs. 10 lakh;
2. A small enterprise is an enterprise where the investment in equipment is more than
Rs.10 lakh but does not exceed Rs. 2 crore;
3. A medium enterprise is an enterprise where the investment in equipment is more than
Rs. 2 crore but does not exceed Rs. 5 crore.

Q83. Answer: (c)
Explanation:
Statement (1) is correct: The Codex Alimentarius Commission (CAC) is an international
food standards body. Currently, the Codex Alimentarius Commission has 189 Codex
Members made up of 188 Member Countries and 1 Member Organization (The European
Union). India became the member of Codex Alimentarius in 1964.
Statement (2) is correct: It was established jointly by the Food and Agriculture
Organization (FAO) and the World Health Organization (WHO) in May 1963 to protect
consumer’s health and ensure fair practices in food trade.
Q84. Answer: (a)

Explanation:
Statement (1) is correct: Convertibility is the ease with which a country's currency can
be converted into gold or another currency through global exchanges. India's currency is
not yet fully convertible. India's rupee is a partially convertible currency—rupees can be
exchanged at market rates in certain cases, but approval is required for larger amounts.
Making the rupee a fully convertible currency would mean increased liquidity in financial
markets, improved employment and business opportunities, and easy access to capital.
Statement (2) is not correct: Any currency may be current account or capital account
convertible, or both. Current account convertibility implies that the Indian rupee can be
converted to any foreign currency at existing market rates for trade purposes for any
amount. It allows for easy financial transactions for the export and import of goods and
services. However, the rupee continues to remain capital account non-convertible. Capital
account convertibility allows freedom to convert local financial assets into foreign financial
assets and vice-versa. Hence, option (a) is the correct answer.
Q85. Answer: (c)

Explanation:
Statement (1) is correct: Duties that are imposed in order to counter the negative impact
of import subsidies to protect domestic producers are called countervailing duties. In
cases foreign producers attempt to subsidise the goods being exported by them so that it
causes domestic production to suffer because of a shift in domestic demand towards
cheaper imported goods, the government makes mandatory the payment of a
countervailing duty on the import of such goods to the domestic economy.
Statement (2) is correct: A safeguard measure is a temporary tariff or quota used to
protect a domestic industry from foreign exporters. WTO allows, through its safeguard
clause, to impose temporary and non-discriminatory safeguards measures on imports that
are causing injury. Hence, option (c) is the correct answer.
Q86. Answer: (a)

Explanation: General Agreement on Trade in Services (GATS) is the first agreement on
multilateral trade in services. It divides tradable services into four modes based on the
requirement of the commercial or physical presence of service provider from the exporting
country

(i) Mode 1 or Cross-Border Supply-These are services which can be exported without
need of the commercial or physical presence of service provider in the other country, e
g. IT, BPO Services, Air Services etc.
(ii) Mode 2 or Consumption Abroad-It is similar to Mode 1 as no presence of service
provider needed in another country, but here the service consumer of the importing
country has to consume it in the exporting country, e g. Tourism
(iii) Mode 3 or Commercial Presence-To export these services, at least commercial
presence of service provider is needed through offices etc. eg Banking,
Telecommunications.
(iv) Mode 4 or Presence of Natural Persons-These services cannot be exported unless
the service providers physically cross the border to provide services, e g. Skilled
professionals like engineers, doctors etc providing services to other countries.
Q87. Answer: (a)

Explanation:
Statement (1) is correct: Base Erosion and Profit Shifting (BEPS) refers to tax avoidance
strategies by multinational companies that exploit gaps and mismatches in tax rules to
artificially shift profits to low or no-tax locations where there is little or no economic activity.
Statement (2) is incorrect: It is an initiative taken by the Organisation for Economic
Cooperation and Development (OECD). The BEPS package provides 15 Actions that
equip governments with the domestic and international instruments needed to tackle
BEPS. OECD and G20 countries along with developing countries that participated in the
development of the BEPS Package, are establishing a modern international tax
framework under which profits are taxed where economic activity and value creation
occur. Hence, option (a) is the correct answer.
Q88. Answer: (d)

Explanation: The government imposes a Cess as a tax on tax. A cess maybe like a tax
or a fee but it is imposed for a specific purpose, as identified in the charging legislation.
Article 270 of the Constitution describes a cess. A tax is a compulsory contribution
collected by the government from the public at large and is to be used for a public
purpose.
On the other hand, a fee is imposed by the government for a specific facility or service
being provided or rendered. The union or state governments may levy cesses. Cesses are
named after the identified purpose; the purpose itself must be certain and for the public
good. It is not made a part of the income tax slab rates because there may be certain
sectors which need priority and more importance over the rest. By earmarking the fund for
that particular purpose, it is ensured that the funds will not be diverted anywhere else.
Hence, option (d) is the answer.
Q89. Answer: (a)

Explanation:
Statement (1) is correct: Capital gains refer to the profits earned by investors on the sale
of capital assets. Such a profit is taxed under the head ‘Income from Capital Gains. The
transfer of capital asset must be made in the previous year. Long-term capital gains tax is

a levy on the profits from the sale of assets held for more than a year. Short-term capital
gains tax applies to assets held for a year or less and is taxed as ordinary income.
Statement (2) is incorrect: Capital gains are not applicable when an asset is inherited
because there is no sale, only a transfer. The total of capital gains minus any capital
losses is known as the "net capital gains”.
Q90. Answer: (c)

Explanation:
Statement (1) is correct: Consumer Protection Act, 2019 has recently replaced the
three-decade-old Consumer Protection Act, 1986. The Act proposes the establishment of
a central regulator, Central Consumer Protection Authority (CCPA), to address issues
related to consumer rights, unfair trade practices, misleading advertisements and impose
penalties for selling faulty and fake products. Broadly, regulatory moves of CCPA will be
directed towards the manufacturers, sellers and service providers and will not address
customers’ grievances and disputes directly.
Statement (2) is correct: The Act has proposed provisions for product liability under
which a manufacturer or a service provider has to compensate a consumer if their
good/service caused injury or loss to the consumer due to manufacturing defect or poor
service. For instance, if a pressure cooker explodes due to a manufacturing defect and
harms the consumer, the manufacturer is liable to compensate the consumer for the
injury. Earlier, the consumer would only be compensated with the cooker’s cost. The
consumer could ask for compensation, but through a civil court, which usually takes years
to resolve a case and not consumer forum. Hence, option (c) is the correct answer.
Q91. Answer: (a)

Explanation: The Malthusian trap or population trap is a situation of population growth
rate more significant than the achievable economic growth rate. This makes it difficult to
alleviate poverty;–government is suggested to implement population control measures.
Thomas Robert Malthus proposed the concept of the Malthusian Trap in 1798. Hence,
option (a) is the correct answer.
Q92. Answer: (a)

Explanation:
Statement (1) is correct: The UN Sustainable Development Goals are a collection of 17
Sustainable Development Goals and 169 targets.
17 goals are
Goal 1: End poverty in all its forms everywhere
Goal 2: End hunger, achieve food security and improved nutrition and promote
sustainable agriculture
Goal 3: Ensure healthy lives and promote well-being for all at all ages
Goal 4: Ensure inclusive and equitable quality education and promote lifelong learning
opportunities for all
Goal 5: Achieve gender equality and empower all women and girls
Goal 6: Ensure availability and sustainable management of water and sanitation for all
Goal 7: Ensure access to affordable, reliable, sustainable and modern energy for all

Goal 8: Promote sustained, inclusive and sustainable economic growth, full and
productive employment and decent work for all
Goal 9: Build resilient infrastructure, promote inclusive and sustainable industrialization
and foster innovation
Goal 10: Reduce inequality within and among countries
Goal 11: Make cities and human settlements inclusive, safe, resilient and sustainable
Goal 12: Ensure sustainable consumption and production patterns
Goal 13: Take urgent action to combat climate change and its impacts
Goal 14: Conserve and sustainably use the oceans, seas and marine resources for
sustainable development
Goal 15: Protect, restore and promote sustainable use of terrestrial ecosystems,
sustainably manage forests, combat desertification, and halt and reverse land
degradation and halt biodiversity loss
Goal 16: Promote peaceful and inclusive societies for sustainable development, provide
access to justice for all and build effective, accountable and inclusive institutions
at all levels.
Goal 17: Strengthen the means of implementation and revitalise the global partnership for
sustainable development.
Statement (2) is incorrect: In India Development Monitoring and Evaluation Office
(DMEO), an attached office under NITI Aayog is the responsible agency for
implementation of the SDGs.
Q93. Answer: (a)

Explanation:
Statement (1) is correct: The first complete census of India was conducted in 1830 by
Henry Walter in Dacca (now Dhaka). In this census, the statistics of the population with
sex, broad age group, and the houses with their amenities were collected. Second
Census was conducted in 1836-37 by Fort St.George according to the government
website of Census India. The first synchronous census was taken under British rule
on February 17, 1881, by W.C. Plowden, Census Commissioner of India. Since then,
censuses have been undertaken uninterruptedly once every ten years. In this census, the
main emphasis was not only laid on complete coverage but also on the classification of
demographic, economic and social characteristic took in the entire continent of British
India (except Kashmir).
Statement (2) is incorrect: The responsibility of conducting the decennial Census rests
with the Office of the Registrar General and Census Commissioner, India
under Ministry of Home Affairs, Government of India.
Q94. Answer: (b)

Explanation:
Statement (1) is incorrect: Eco-mark is a voluntary labelling scheme by the Bureau of
Indian Standards (BIS for quickly identifying environment-friendly products. The Eco-mark
scheme defines as an environmentally friendly product, any product which is made, used
or disposed of in a way that significantly reduces the harm it would otherwise cause the

environment. The definition factors in all aspects of the supply chain, taking a cradle-to-
grave approach, which includes raw material extraction, manufacturing and disposal.
Statement (2) is correct: The scheme is one of India’s earliest efforts in environmental
standards, launched in 1991, even before the 1992 Rio Summit in which India
participated. The scheme was launched by the Ministry of Environment and Forests and is
administered by the Bureau of Indian Standards (BIS), which also administers the Indian
Standards Institute (ISI) mark quality label, a requirement for any product to gain the Eco-
mark label. Hence, option (b) is the correct answer.
Q95. Answer: (c)

Explanation:
Statement (1) is correct: Deen Dayal Antyodaya Yojana - National Livelihoods Mission
(NRLM) was launched by the Ministry of Rural Development (MoRD), Government of
India in June 2011 as a restructured version of Swarna Jayanti Gram Swarozgar Yojna
(SGSY).
Statement (2) is correct: The Mission aims at creating efficient and effective institutional
platforms of the rural poor, enabling them to increase household income through
sustainable livelihood enhancements and improved access to financial services. In
November 2015, the program was renamed Deendayal Antayodaya Yojana (DAY-NRLM).
Q96. Answer: (d)

Explanation: The term de-globalisation is used by economic and market commentators to
highlight an attempt to decrease the interdependence and integration among economies.
These policies often take the form of tariffs or quantitative barriers that impede the free
movement of people, products and services among countries. The idea behind all this
protectionism is to shield local manufacturing by making imports costlier. Hence,
Undermining of WTO (an institution for the facilitation of world trade and commerce) like
making the functioning of Dispute Settlement System difficult. Recently, the USA has
threatened to pull out of WTO. This would impact global trade. Hence, Statement (2) is
correct.
Trade Wars between countries is one aspect of de-globalisation. The US economy, for
instance, imports a lot of inexpensive manufactured goods from China. If a tariff war
increases costs of imports into the US, its domestic inflation may rocket and US interest
rates may increase faster. Hence, Statement (3) is correct.
Brexit is a unique example of deglobalisation. It highlights the disenchantment of British
people with common market and integration of the UK with the EU. Hence, Statement (4)
is correct.
Q97. Answer: (d)

Explanation: Subprime lending, the practise of extending credit to borrowers with low
incomes or poor, incomplete, or nonexistent credit histories. Subprime mortgage loans,
the most common form of subprime lending, are characterised by higher interest rates and
more stringent requirements to compensate lenders for the higher credit risk involved. By
providing credit to individuals who would normally be denied it in the standard (prime)

mortgage market, subprime lending allows a more significant number of households to
create wealth over time through homeownership. Massive sub-prime lending in the US
created a housing bubble. When it burst, the borrowers started defaulting. It affected the
position of banks and financial institutions, which had given these loans or bought
mortgage-backed securities, leading to a worldwide recession. Hence option (d) is
correct and options (a) and (b) are not correct.
Statement c defines securitisation. Securitisation refers to the process of converting debt
(assets, usually illiquid assets) into securities, which are then bought and sold in the
financial markets. Hence, option (c) is not correct.
Q98. Answer: (a)

Explanation: The RBI has different tools through which it injects liquidity into financial
markets. Adjusting repo rates and purchasing bonds by conducting open market
operations (OMO) are a couple of tools which the RBI regularly uses either to increase or
decrease the currency supply in the market. The recently announced ‘swap auction’ is one
such tool. This is being done to increase the supply of rupees in the market. Technically,
this activity is being termed as a USD/INR Buy/Sell Swap Auction. Through this auction,
the RBI will buy US dollars from banks. In turn, the RBI will pay rupees to the participating
banks at the current spot rate. Simultaneously, the banks will agree to buy-back the same
amount of dollars from the RBI after three years — the tenor of this auction. The
participating banks have to bid in the auction by quoting a forward premium in that they
will pay to buy back the dollars. Therefore the correct answer is (a).
Q99. Answer: (a)

Explanation: A Ponzi scheme is a fraudulent investing scam promising high rates of return
with little risk to investors. The Ponzi scheme generates returns for early investors by
acquiring new investors. This is similar to a pyramid scheme in that both are based on
using new investors' funds to pay the earlier backers. Both Ponzi schemes and pyramid
schemes eventually bottom out when the flood of new investors dries up, and there is not
enough money to go around. At that point, the schemes unravel. Hence, Statement (1) is
correct.
The Banning of Unregulated Deposit Schemes Act, 2019 explicitly bans unregulated
deposit schemes. It defines unregulated deposit schemes as a Scheme or an
arrangement under which deposits are accepted or solicited by any deposit taker by way
of business and which is not a Regulated Deposit Scheme. Ponzi Scheme falls under this
definition as it is not a regulated scheme, the basic purpose of which is to defraud
investors. Hence, Statement (2) is not correct.
Therefore the correct answer is (a).
Q100. Answer: (a)

Explanation: The Reserve Bank of India has made it mandatory for banks to link their
retail and MSME loans to external interest rate benchmarks. Thus, corporate loans have
not yet been brought under this decision. Hence, Statement (a) is not correct.
Under the new system which will come into effect from April 1, 2019, banks will have to
link their lending rates with an external benchmark instead of MCLR. The RBI has given
these options to banks: RBI repo rate, the 91-day T-bill yield; the 182-day T-bill yield; or

any other benchmark market interest rate produced by the Financial Benchmarks India
Pvt. Ltd. Hence, Statement (b) is correct.
It will help better transmission of policy rate cuts which means an RBI rate cut will
immediately reach the borrower. In the current system, the internal benchmark is not
influenced solely by the policy rate cut but depends on a variety of factors. Hence,
Statement (c) is correct.
The interest rate under the external benchmark should be reset at least once in three
months. Hence, Statement (d) is correct.
Therefore the answer is (a).


GS Test8 Answer Key PDF

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GS Test8 Answer Key PDF

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GS Test-8 (5th Jan’2020)

Answer Key & Explanation

Q1. Answer: (d)

Q2. Answer: (b)

Q3. Answer: (d)

Prelim Test Series (2020) – GS Test 8 (05.01.2020)

Q4. Answer: (b)

Q5. Answer: (c)

Prelim Test Series (2020) – GS Test 8 (05.01.2020)

Q6. Answer: (a)

Q7. Answer: (d)

Hence, option (d) is the correct answer.

Q8. Answer: (d)

Prelim Test Series (2020) – GS Test 8 (05.01.2020)

Q9. Answer: (a)

Q10. Answer: (b)

Prelim Test Series (2020) – GS Test 8 (05.01.2020)

Q11. Answer: (c)

Q12. Answer: (c)

Prelim Test Series (2020) – GS Test 8 (05.01.2020)

Q13. Answer: (b)

Prelim Test Series (2020) – GS Test 8 (05.01.2020)

Q15. Answer: (a)

Q16. Answer: (d)

Prelim Test Series (2020) – GS Test 8 (05.01.2020)

Q17. Answer: (b)

Q18. Answer: (d)

Prelim Test Series (2020) – GS Test 8 (05.01.2020)

Hence the answer is (d).

Q19. Answer: (b)

Prelim Test Series (2020) – GS Test 8 (05.01.2020)

Q20. Answer: (d)

Prelim Test Series (2020) – GS Test 8 (05.01.2020)

Q21. Answer: (d)

Prelim Test Series (2020) – GS Test 8 (05.01.2020)

Prelim Test Series (2020) – GS Test 8 (05.01.2020)

Q22. Answer: (d)

Q23. Answer: (c)

Prelim Test Series (2020) – GS Test 8 (05.01.2020)

Q24. Answer: (a)

Q25. Answer: (d)

Prelim Test Series (2020) – GS Test 8 (05.01.2020)

Q27. Answer: (a)

Q28. Answer: (d)

Prelim Test Series (2020) – GS Test 8 (05.01.2020)

Q29. Answer: (b)

Q30. Answer: (d)

Prelim Test Series (2020) – GS Test 8 (05.01.2020)

Q31. Answer: (b)

Q32. Answer: (a)

Prelim Test Series (2020) – GS Test 8 (05.01.2020)

Q34. Answer: (d)

Prelim Test Series (2020) – GS Test 8 (05.01.2020)

Q35. Answer: (b)

Prelim Test Series (2020) – GS Test 8 (05.01.2020)

Q37. Answer: (d)

Q38. Answer: (c)

Prelim Test Series (2020) – GS Test 8 (05.01.2020)

Q39. Answer: (c)

Q40. Answer: (c)

Prelim Test Series (2020) – GS Test 8 (05.01.2020)

Q41. Answer: (a)

Q42. Answer: (d)