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UPSC Previous Years (Prelims & Mains) Questions
1 .
With reference to Indian economy, demand-pull inflation can be caused/increased by which of the following?

  (1) Expansionary policies
  (2) Fiscal stimulus
  (3) Inflation-indexing wages
  (4) Higher purchasing power
  (5) Rising interest rates

Select the correct answer using the code given below :
A)
1, 2 and 4 only
B)
3, 4 and 5 only
C)
1, 2, 3 and 5 only
D)
1, 2, 3, 4 and 5

Correct Answer : Option (D) - 1, 2, 3, 4 and 5

Note :

Expansionary policies – Expansionary policies lead to more economic activity via low interest rates, more money with public etc which can lead to demand-pull inflation.
 
Fiscal stimulus – Fiscal stimulus means expansionary fiscal policy, which includes increased government consumption or lowering of taxes. Both will ultimately lead to more money in the hands on public, thereby driving up the demand leading to demand-pull inflation.
 
Inflation – indexed wages – Wages indexed to inflation will adjust with time leading to more money in the hands of working class during periods of growth, due to which they end up spending more in times of inflation, thereby contributing to demand-pull inflation
 
Higher purchasing power – Higher purchasing power means more money in the hands of public, who will demand whatever is being provided by the market & more, thereby leading to demand-pull inflation.
 
Rising interest rates – high interest rates lead to contraction in borrowing & spending activity, thereby leading to contraction in inflation. However, rising interest rate leads people to believe that inflation is going to rise in future, thereby increasing the demand of goods in present time. This perception leads to demand-pull inflation.

Year : 2021
Category : General Studies
2 .
With reference to India, consider the following statements :

  (1) Retail investors through demat account can invest in ‘Treasury Bills’ and ‘Government of India Debt Bonds’ in primary market.
  (2) The ‘Negotiated Dealing System Order Matching’ is a government securities trading platform of the Reserve Bank of India.
  (3) The ‘Central Depository Services Ltd.’ Is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.

Which of the statements given above is/are correct?
A)
1 only
B)
1 and 2
C)
3 only
D)
2 and 3

Correct Answer : Option (B) - 1 and 2

Note :

The Reserve Bank of India recently announced that retail investors can now invest directly in the government's primary and secondary bond market by opening gilt accounts with the national banks and monetary policy regulator. This structural reform will deepen the bond market in India. A gilt account is similar to a regular bank account; the only difference being that instead of money, a gilt account is credited or debited with treasury bills or government securities. So, statement 1 is correct.
 
‘Negotiated Dealing System-Order Matching’ refers to RBI’s screen-based electronic order matching system for trading in government securities in the secondary market. So, statement 2 is correct.
 
The ‘Central Depository Services Ltd.’ is promoted by Bombay Stock Exchange Ltd (BSE Ltd) - the Asia's latest Stock Exchange. Other shareholders include HDFC Bank Ltd, Standard Chartered Bank and Canara Bank. So, 3 is not correct.

Year : 2021
Category : General Studies
3 .
With reference to 'Water Credit', consider the following statements :

  (1) It puts microfinance tools to work in the water and sanitation sector.
  (2) It is a global initiative launched under the aegis of the World Health Organization and the World Bank.
  (3) It aims to enable the poor people to meet their water needs without depending on subsidies.

Which of the statements given above are correct?
A)
1 and 2 only
B)
2 and 3 only
C)
1 and 3 only
D)
1, 2 and 3

Correct Answer : Option (C) - 1 and 3 only

Note :

water.org is a global nonprofit organization working to bring water and sanitation to the world. They want to make it safe, accessible, and cost-effective.
 
They help people get access to safe water and sanitation through affordable financing, such as small loans. WaterCredit as a microfinance tool is created by water.org.
 
How it works : WaterCredit is a powerful solution and the first to put microfinance tools to work in the water and sanitation sector. WaterCredit helps bring small loans to those who need access to affordable financing and expert resources to make household water and toilet solutions a reality. So, statement 1 is correct.
 
According to water.org, people in need already pay high prices for water, in both time and money. The truth is that many of these families can get a water or sanitation solution in their home for a fraction of their annual water costs. All they need is access to affordable financing to make this a reality. water.org believed that if given a choice and an opportunity to pay for water and sanitation improvements over a reasonable period of time, millions of people living in poverty would finance long-term solutions versus struggle day-to-day to find that next liter of water. Therefore, option statement 3 is also correct.
 
It does not come under World Health Organization and the World Bank. So, statement 2 is not correct.

Year : 2021
Category : General Studies
4 .
In India, the central bank’s function as the ‘lender of last resort’ usually refers to which of the following?

  (1) Lending to trade and industry bodies when they fail to borrow from other sources.
  (2) Providing liquidity to the banks having a temporary crisis.
  (3) Lending to governments to finance budgetary deficits. 

Select the correct answer using the code given below:
A)
1 and 2
B)
2 only
C)
2 and 3
D)
3 only

Correct Answer : Option (B) - 2 only

Note :

The central bank acts as the lender of last resort to institutions that do not have any other means of borrowing. However, lender of last resort does not mean that lending to trade and industry bodies. So, statement 1 is not correct.

The Reserve Bank also acts as the ‘lender of the last resort’. It can come to the rescue of a bank that is solvent but faces temporary liquidity problems by supplying it with much needed liquidity when no one else is willing to extend credit to that bank. The Reserve Bank extends this facility to protect the interest of the depositors of the bank and to prevent possible failure of the bank, which in turn may also affect other banks and institutions and can have an adverse impact on financial stability and thus on the economy. So, statement 2 is correct.

Lending to governments to finance budgetary deficits is not the primary function of the central bank as a lender of last resort. So, statement 3 is not correct.

Year : 2021
Category : General Studies
A)
environmentally responsible practices in electronics recycling industry
B)
ecological management of ‘Wetlands of International Importance’ under the Ramsar Convention
C)
sustainable practices in the cultivation of agricultural crops in degraded lands
D)
‘Environmental Impact Assessment’ in the exploitation of natural resources

Correct Answer : Option (A) - environmentally responsible practices in electronics recycling industry

Note :

R2 stands for "Responsible Recycling" and is a standard specifically created for the electronics recycling industry by Sustainable Electronics Recycling International (SERI).

R2 certified companies to have a policy on managing used and end-of-life electronics equipment, components and materials based on strategies such as reuse, materials and energy recovery and/or disposal. This certification is intended for electronics recyclers.

Year : 2021
Category : General Studies
6 .
Why is there a concern about copper smelting plants?

  (1) They may release lethal quantities of carbon monoxide into environment.
  (2) The copper slag can cause the leaching of some heavy metals into environment.
  (3) They may release sulphur dioxide as a pollutant. 

Select the correct answer using the code given below:
A)
1 and 2 only
B)
2 and 3 only
C)
1 and 3 only
D)
1, 2 and 3

Correct Answer : Option (B) - 2 and 3 only

Note :

Every smelting plant has its own oxygen production unit, to feed in smelting process as well as reduce the exhaust of gases. So, carbon monoxide although produced in the smelting process would get converted to carbon dioxide if the plant is functioning properly and if there are any issues with the oxygen producing unit, the smelting process will slow down. So release of lethal amount of carbon mono oxide sounds like an extreme statement. So, statement 1 is not correct.
 
The other byproduct of smelting is slag, the waste matter separated from metals. This slag may leach heavy metals (arsenic, cadmium, lead or mercury depending on the composition of the ore) into groundwater reservoirs. Water which has a high heavy metal content is very toxic to humans. Slag may also increase the concentration of other, less harmful salts in water resources, which may change the taste of water. So, statement 2 is correct.
 
Most copper ores are sulphur-based and smelting releases sulphur dioxide, an air pollutant known to have many harmful effects. So, statement 3 is correct.

Year : 2021
Category : General Studies
7 .
With reference to furnace oil, consider the following statements :

  (1) It is a product of oil refineries.
  (2) Some industries use it to generate power.
  (3) Its use causes sulphur emissions into environment. 

Which of the statements given above are correct?
A)
1 and 2 only
B)
2 and 3 only
C)
1 and 3 only
D)
1, 2 and 3

Correct Answer : Option (D) - 1, 2 and 3

Note :

Fuel oil, also called furnace oil, fuel consisting mainly of residues from crude- oil distillation. Petroleum coke or petcoke and furnace oil which are by-product of crude refining process. So, statement 1 is correct.

It is used primarily for steam boilers in power plants, aboard ships, and in industrial plants. Various categories of industries such as cement, thermal power plant, fertilizers, nitric acid, lime kiln, ceramic, glass, foundry, reheating furnaces, calcium carbide, aluminium, boiler based industries etc., use pet coke and furnace oil for various purposes including as fuel. So, statement 2 is correct.

It is causing huge emission of sulphur dioxide and secondary sulphate formation as particulate matter (PM). Due to this the Supreme Court imposed a ban on use of pet coke and furnace oil in 2017 in Delhi-NCR. So, statement 3 is correct.

Year : 2021
Category : General Studies
A)
Carbon captured by oceans and coastal ecosystems
B)
Carbon sequestered in forest biomass and agricultural soils
C)
Carbon contained in petroleum and natural gas
D)
Carbon present in atmosphere

Correct Answer : Option (A) - Carbon captured by oceans and coastal ecosystems

Note :

Blue carbon is the term for carbon captured by the world's ocean and coastal ecosystems.

The coastal ecosystems of mangroves, tidal marshes and seagrass meadows contain large stores of carbon deposited by vegetation and various natural processes over centuries. These ecosystems sequester and store more carbon – often referred to as ‘blue carbon’ – per unit area than terrestrial forests. The ability of these vegetated ecosystems to remove carbon dioxide (CO2) from the atmosphere makes them significant net carbon sinks.
 

Year : 2021
Category : General Studies
9 .
In the nature, which of the following is/are most likely to be found surviving on a surface without soil?

  (1) Fern
  (2) Lichen
  (3) Moss
  (4) Mushroom

Select the correct answer using the code given below :
A)
1 and 4 only
B)
2 only
C)
2 and 3
D)
1, 3 and 4

Correct Answer : Option (D) - 1, 3 and 4

Note :

The ferns are most commonly plants of shaded damp forests of both temperate and tropical zones. Some fern species grow equally well on soil and upon rocks; others are confined strictly to rocky habitats, where they occur in fissures and crevices of cliff faces, boulders, and taluses. Acidic rocks such as granites, sandstones, and quartzites are associated with characteristic fern species different from those of alkaline rocks such as calcites and dolomites. A few species appear to be confined

to serpentine and related rocks. In the tropics as many as two-thirds of the ferns of an area may grow as epiphytes on the shaded lower trunks and branches or in the crowns of trees.
 
Lichens have specific requirements for their habitats. Although they can occur on a variety of substrates, each substrate must have the individual components in the right amounts that growing lichen needs. These requirements are: water, air, nutrients, light, and substrates
 
Lichens need homes too! Every lichen lives on top of something else. The surface of that "something else" is called a substrate. Just about anything that holds still long enough for a lichen to attach to and grow is a suitable substrate. Trees, rocks, soil, houses, tombstones, cars, old farm equipment and more can be substrates. The most common natural substrates are trees, rocks, and soil. Soil is another important substrate for lichens. It provides moisture, nutrients, space to grow, and depending on the location, shelter as well.
 
A moss is a flowerless, spore-producing plant - with the spores produced in small capsules. Moss grow on almost any substrate, including rocks, wood, or soil.
 
Mushroom, the conspicuous umbrella-shaped fruiting body (sporophore) of certain fungi. Mushrooms can form a symbiotic relationship with trees. Mushrooms can also be grown hydroponically as fungi.

Year : 2021
Category : General Studies
A)
Jain monks
B)
Playwrights
C)
Temple architects
D)
Philosophers

Correct Answer : Option (B) - Playwrights

Note : Bhavabhuti was a famous Sanskrit playwright who wrote famous plays like Mahaviracharita, Malatimadhava etc. He is believed to be the court poet of King Yashovarman of Kannauj. Other two were also playwrights in the ancient period.

Year : 2021
Category : General Studies