UPSC Prelims 2020

With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic ?

1. (a)It is the investment through capital instruments essentially in a listed company.
2. (b)It is a largely non-debt creating capital flow.
3. (c)It is the investment which involves debt-servicing.
4. (d)It is the investment made by foreign institutional investors in the Government securities.

With reference to the international trade of India at present, which of the following statements is/are correct ? 1. India’s merchandise exports are less than its merchandise imports. 2. India’s imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years. 3. India’s exports of services are more than its imports of services. 4. India suffers from an overall trade/current account deficit. Select the correct answer using the code given below :

1. (a)1 and 2 only
2. (b)2 and 4 only
3. (c)3 only
4. (d)1, 3 and 4 only

No answer is recorded for this question: cancelled by UPSC — marks awarded to all candidates

The term ‘West Texas Intermediate’, sometimes found in news, refers to a grade of

1. (a)Crude oil
2. (b)Bullion
3. (c)Rare earth elements
4. (d)Uranium

In the context of the Indian economy, non-financial debt includes which of the following ? 1. Housing loans owed by households 2. Amounts outstanding on credit cards 3. Treasury bills Select the correct answer using the code given below :

1. (a)1 only
2. (b)1 and 2 only
3. (c)3 only
4. (d)1, 2 and 3

In India, why are some nuclear reactors kept under “IAEA Safeguards” while others are not ?

1. (a)Some use uranium and others use thorium
2. (b)Some use imported uranium and others use domestic supplies
3. (c)Some are operated by foreign enterprises and others are operated by domestic enterprises
4. (d)Some are State-owned and others are privately-owned

With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct ? 1. Quantitative restrictions on imports by foreign investors are prohibited. 2. They apply to investment measures related to trade in both goods and services. 3. They are not concerned with the regulation of foreign investment. Select the correct answer using the code given below :

1. (a)1 and 2 only
2. (b)2 only
3. (c)1 and 3 only
4. (d)1, 2 and 3

If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do ? 1. Cut and optimize the Statutory Liquidity Ratio 2. Increase the Marginal Standing Facility Rate 3. Cut the Bank Rate and Repo Rate Select the correct answer using the code given below :

1. (a)1 and 2 only
2. (b)2 only
3. (c)1 and 3 only
4. (d)1, 2 and 3

With reference to the Indian economy after the 1991 economic liberalization, consider the following statements : 1. Worker productivity (₹ per worker at 2004 – 05 prices) increased in urban areas while it decreased in rural areas. 2. The percentage share of rural areas in the workforce steadily increased. 3. In rural areas, the growth in non-farm economy increased. 4. The growth rate in rural employment decreased. Which of the statements given above is/are correct ?

1. (a)1 and 2 only
2. (b)3 and 4 only
3. (c)3 only
4. (d)1, 2 and 4 only

Consider the following statements : 1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks. 2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies. Which of the statements given above is/are correct ?

1. (a)1 only
2. (b)2 only
3. (c)Both 1 and 2
4. (d)Neither 1 nor 2

In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits ? 1. Cost of restoration of the computer system in case of malware disrupting access to one’s computer 2. Cost of a new computer if some miscreant wilfully damages it, if proved so 3. Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion 4. Cost of defence in the Court of Law if any third party files a suit Select the correct answer using the code given below :

1. (a)1, 2 and 4 only
2. (b)1, 3 and 4 only
3. (c)2 and 3 only
4. (d)1, 2, 3 and 4

In India, which of the following can be considered as public investment in agriculture ? 1. Fixing Minimum Support Price for agricultural produce of all crops 2. Computerization of Primary Agricultural Credit Societies 3. Social Capital development 4. Free electricity supply to farmers 5. Waiver of agricultural loans by the banking system 6. Setting up of cold storage facilities by the governments Select the correct answer using the code given below :

1. (a)1, 2 and 5 only
2. (b)1, 3, 4 and 5 only
3. (c)2, 3 and 6 only
4. (d)1, 2, 3, 4, 5 and 6

What is the importance of the term “Interest Coverage Ratio” of a firm in India ? 1. It helps in understanding the present risk of a firm that a bank is going to give loan to. 2. It helps in evaluating the emerging risk of a firm that a bank is going to give loan to. 3. The higher a borrowing firm’s level of Interest Coverage Ratio, the worse is its ability to service its debt. Select the correct answer using the code given below :

1. (a)1 and 2 only
2. (b)2 only
3. (c)1 and 3 only
4. (d)1, 2 and 3

Which of the following factors/policies were affecting the price of rice in India in the recent past ? 1. Minimum Support Price 2. Government’s trading 3. Government’s stockpiling 4. Consumer subsidies Select the correct answer using the code given below :

1. (a)1, 2 and 4 only
2. (b)1, 3 and 4 only
3. (c)2 and 3 only
4. (d)1, 2, 3 and 4

Consider the following statements : 1. The value of Indo-Sri Lanka trade has consistently increased in the last decade. 2. “Textile and textile articles” constitute an important item of trade between India and Bangladesh. 3. In the last five years, Nepal has been the largest trading partner of India in South Asia. Which of the statements given above is/are correct ?

1. (a)1 and 2 only
2. (b)2 only
3. (c)3 only
4. (d)1, 2 and 3

In which one of the following groups are all the four countries members of G20 ?

1. (a)Argentina, Mexico, South Africa and Turkey
2. (b)Australia, Canada, Malaysia and New Zealand
3. (c)Brazil, Iran, Saudi Arabia and Vietnam
4. (d)Indonesia, Japan, Singapore and South Korea

Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes ? 1. Working capital for maintenance of farm assets 2. Purchase of combine harvesters, tractors and mini trucks 3. Consumption requirements of farm households 4. Post-harvest expenses 5. Construction of family house and setting up of village cold storage facility Select the correct answer using the code given below :

1. (a)1, 2 and 5 only
2. (b)1, 3 and 4 only
3. (c)2, 3, 4 and 5 only
4. (d)1, 2, 3, 4 and 5

Consider the following statements : 1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI). 2. The WPI does not capture changes in the prices of services, which CPI does. 3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates. Which of the statements given above is/are correct ?

1. (a)1 and 2 only
2. (b)2 only
3. (c)3 only
4. (d)1, 2 and 3

Consider the following pairs : River 1. Mekong — Andaman Sea 2. Thames — Irish Sea 3. Volga — Caspian Sea 4. Zambezi — Indian Ocean Which of the pairs given above is/are correctly matched ?

1. (a)1 and 2 only
2. (b)3 only
3. (c)3 and 4 only
4. (d)1, 2 and 4 only

Consider the following statements : 1. In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India. 2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise. Which of the statements given above is/are correct ?

1. (a)1 only
2. (b)2 only
3. (c)Both 1 and 2
4. (d)Neither 1 nor 2

With reference to the Indian economy, consider the following statements : 1. ‘Commercial Paper’ is a short-term unsecured promissory note. 2. ‘Certificate of Deposit’ is a long-term instrument issued by the Reserve Bank of India to a corporation. 3. ‘Call Money’ is a short-term finance used for interbank transactions. 4. ‘Zero-Coupon Bonds’ are the interest bearing short-term bonds issued by the Scheduled Commercial Banks to corporations. Which of the statements given above is/are correct ?

1. (a)1 and 2 only
2. (b)4 only
3. (c)1 and 3 only
4. (d)2, 3 and 4 only

With reference to the cultural history of India, consider the following pairs : 1. Parivrajaka — Renunciant and Wanderer 2. Shramana — Priest with a high status 3. Upasaka — Lay follower of Buddhism Which of the pairs given above are correctly matched ?

1. (a)1 and 2 only
2. (b)1 and 3 only
3. (c)2 and 3 only
4. (d)1, 2 and 3

With reference to Indian elephants, consider the following statements : 1. The leader of an elephant group is a female. 2. The maximum gestation period can be 22 months. 3. An elephant can normally go on calving till the age of 40 years only. 4. Among the States in India, the highest elephant population is in Kerala. Which of the statements given above is/are correct ?

1. (a)1 and 2 only
2. (b)2 and 4 only
3. (c)3 only
4. (d)1, 3 and 4 only

Which of the following Protected Areas are located in Cauvery basin ? 1. Nagarhole National Park 2. Papikonda National Park 3. Sathyamangalam Tiger Reserve 4. Wayanad Wildlife Sanctuary Select the correct answer using the code given below :

1. (a)1 and 2 only
2. (b)3 and 4 only
3. (c)1, 3 and 4 only
4. (d)1, 2, 3 and 4

With reference to India’s biodiversity, Ceylon frogmouth, Coppersmith barbet, Gray-chinned minivet and White-throated redstart are

1. (a)Birds
2. (b)Primates
3. (c)Reptiles
4. (d)Amphibians

Which one of the following protected areas is well-known for the conservation of a sub-species of the Indian swamp deer (Barasingha) that thrives well on hard ground and is exclusively graminivorous ?

1. (a)Kanha National Park
2. (b)Manas National Park
3. (c)Mudumalai Wildlife Sanctuary
4. (d)Tal Chhapar Wildlife Sanctuary