UPSC Previous Years (Prelims & Mains) Questions

1 .
Consider the following infrastructure sectors:

1. Affordable housing
2. Mass rapid transport
3. Health care
4. Renewable energy

On how many of the above does UNOPS Sustainable Investments in Infrastructure and Innovation (S3i) initiative focus for its investments?
A)
Only one
B)
Only two
C)
Only three
D)
All four

Correct Answer : Option (C) - Only three

Note : S3i has signed a landmark shareholders’ agreement to invest in a 250-megawatt solar power plant located in Rajasthan.

Collaborating with strategic and institutional investors, S3i aims to invest in large-scale infrastructure projects in developing countries focusing on its mandated areas of affordable housing, renewable energy and health. Hence, option c is the correct answer.

Source : PES

Year : 2023
Category : General Studies
2 .
Consider the following:

1. Demographic performance
2. Forest and ecology
3. Governance reforms
4. Stable government
5. Tax and fiscal efforts

For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance?
A)
Only two
B)
Only three
C)
Only four
D)
All Five

Correct Answer : Option (B) - Only three

Note : * For the horizontal tax devolution, the Fifteenth Finance Commission used the following as criteria:

* Population
* Area
* Forest & ecology
* Income Distance
* Tax & fiscal efforts
* Demographic performance
* Hence, the correct answer is b.

Criteria Weight (%)
Population 15.0
Area 15.0
Forest & ecology 10.0
Income distance 45.0
Tax & fiscal efforts 2.5
Demographic performance 12.5
Total 100


Source : PIB

Year : 2023
Category : General Studies
3 .
Consider the investments in the following assets:

1. Brand recognition
2. Inventory
3. Intellectual property
4. Mailing list of clients

How many of the above are considered intangible investments?
A)
Only one
B)
Only two
C)
Only three
D)
All four

Correct Answer : Option (C) - Only three

Note : The assets that cannot be touched are known as intangible assets. They are non-physical in nature and can be used for a year or more and the list includes brand value, goodwill, and intellectual property like trademarks, patents, and copyrights etc.

A tangible asset is an asset that has physical substance. Examples include inventory, a building, rolling stock, manufacturing equipment or machinery, and office furniture.

Hence, (c) is the correct answer..

Source : Investopedia

Year : 2023
Category : General Studies
4 .
Consider the following statements:

1. The Government of India provides Minimum Support Price for niger (Guizotia abyssinica) seeds.
2. Niger is cultivated as a Kharif crop.
3. Some tribal people in India use niger seed oil for cooking.

How many of the above statements are correct?
A)
Only one
B)
Only two
C)
All three
D)
None

Correct Answer : Option (B) - Only two

Note : The government provides MSP for Niger Seeds. Hence, statement 1 is correct.

Niger Seed is cultivated as Kharif crop. Hence, statement 2 is correct.

The tribal population uses niger seed oil for cooking, the press cake post oil-extraction as livestock feed, and also consume the seeds as a condiment. Hence, statement 3 is correct..

Source : Downtoearth

Year : 2023
Category : General Studies
A)
Resettlement of a large number of people, uprooted from their countries due to war, by giving them a large cultivable land which they cultivate collectively and share the produce
B)
Many marginal farmers in an area organize themselves into groups and synchronize and harmonize selected agricultural operations
C)
Many marginal farmers in an area together make a contract with a corporate body and surrender their land to the corporate body for a fixed term for which the corporate body makes a payment of agreed amount to the farmers
D)
A company extends loans, technical knowledge and material inputs to a number of small farmers in an area so that they produce the agricultural commodity required by the company for its manufacturing process and commercial production

Correct Answer :   Many marginal farmers in an area organize themselves into groups and synchronize and harmonize selected agricultural operations

Note : “Small Farmers Large Field (SFLF)” is an agri model to overcome the disadvantages faced by millions of small and marginal farmers due to diseconomies of scale and lack of bargaining power in the supply chain. This model is participatory and flexible and allows small farmers to benefit from achieving economies of scale by organising themselves into groups and synchronising and harmonising selected operations.

Source : Indian Eexpress

Year : 2023
Category : General Studies
6 .
Consider the following markets:

1. Government Bond Market
2. Call Money Market
3. Treasury Bill Market
4. Stock Market

How many of the above are included in capital markets?
A)
Only one
B)
Only two
C)
Only three
D)
All four

Correct Answer : Option (B) - Only two

Note : * Government bond market is a part of the Capital Market. Hence, option 1 is correct.

* Call money rate is the rate at which short term funds are borrowed and lent in the money market. Hence, option 2 is not correct.

* Treasury bills are short-term debt securities issued by thgovernment. They have a maturity of up to one year and are considered to be the safest type of money market instrument. Hence, option 3 is not correct.

* The Stock Market is a part of the Capital Market. Hence, option 4 is correct.

Year : 2023
Category : General Studies
A)
Conducting 'Open Market Operations'
B)
Oversight of settlement and payment systems
C)
Debt and cash management for the Central and State Governments
D)
Regulating the functions of Non-banking Financial Institutions

Correct Answer :   Conducting 'Open Market Operations'

Note : * Sterilisation refers to the process by which the RBI takes away money from the banking system to neutralise the fresh money that enters the system. Classical sterilisation involves central banks conducting buy and sell operations in open markets. Hence, option a is the correct answer.

* For sterilisation, the RBI usually adopts the Market Stabilisation Scheme (MSS).


* Market Stabilisation Scheme (MSS) : Surplus liquidity arising from large capital inflows is absorbed through the sale of short-dated government securities and treasury bills..

Year : 2023
Category : General Studies
8 .
Consider the following statements:

Statement-I : Carbon markets are likely to be one of the most widespread tools in the fight against climate change.
Statement-II : Carbon markets transfer resources from the private sector to the State.

Which one of the following is correct in respect of the above statements?
A)
Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
B)
Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
C)
Statement-I is correct but Statement-II is incorrect
D)
Statement-I is incorrect but Statement-II is correct

Correct Answer : Option (B) - Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

Note : Carbon markets, for years short of puff, have at last become one of the most widespread tools in the fight against climate change. By the end of 2021 more than 21% of the world’s emissions were covered by some form of carbon pricing, up from 15% in 2020. Hence, Statement 1 is correct.

Like taxes, carbon markets transfer resources from the private sector to the state. Hence, statement 2 is correct.

However, Statement-II is not the correct explanation for Statement-I.

Source : Economist

Year : 2023
Category : General Studies
9 .
Consider the following statements:

Statement-I : In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes.
Statement-II : Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means.

Which one of the following is correct in respect of the above statements?
A)
Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-1
B)
Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-1
C)
Statement-I is correct but Statement-II is incorrect
D)
Statement-I is incorrect but Statement-II is correct

Correct Answer : Option (A) - Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-1

Note : In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes to contain the post pandemic inflation. For Example, since May 2022, the Monetary Policy Committee (RBI) has gone for rate hikes many times. Hence, statement 1 is correct.

The central banks generally are mandated with the task of containing the rising prices of the commodities. Central banks use monetary policy to manage economic fluctuations and achieve price stability. Hence, Statement 2 is correct.

Year : 2023
Category : General Studies
10 .
Consider the following statements:

Statement-I : Interest income from the deposits in Infrastructure Investment Trusts (InvITs) distributed to their investors is exempted from tax, but the dividend is taxable.
Statement-II : InviTs are recognized as borrowers under the 'Securitization and Recon struction of Financial Assets and Enforcement of Security Interest Act, 2002'.

Which one of the following is correct in respect of the above statements?
A)
Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-1
B)
Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-1
C)
Statement-1 is correct but Statement-II is incorrect
D)
Statement-I is incorrect Statement-II is correct

Correct Answer : Option (D) - Statement-I is incorrect Statement-II is correct

Note : Interest income that InvIT gets from its underlying SPVs and passes on to unitholders is taxed. The dividends that InvIT pays also get taxed. Both interest and dividend are taxed per the income tax slab. This is applicable where the InvIT has opted for taxation under section 115BAA of the Act. Hence, statement 1 is not correct.

InvITs are recognized as borrowers under the SARFAESI Act 2002. The SARFAESI Act and the Recovery of Debts Act have been amended. Now, a pooled investment vehicle can be considered a borrower under these laws. This means that a debenture trustee for listed secured debt securities issued by an InvIT or REIT can use the protections and enforcement mechanisms under the SARFAESI Act. Hence, statement 2 is correct.

Source : Money Control

Year : 2023
Category : General Studies