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Insights Prelims Revision 2017 Test – 33 Solution

 


Insights Prelims Revision 2017 Test – 33 Solution


 

  • With reference to money market, consider the following statements:
  1. It is where financial instruments with high liquidity and very short maturities are traded
  2. It is used by participants as a means for borrowing and lending in the long term, with maturities that usually range from 5 years to 10 years

Which of the above statements is/are correct?

a. 1 Only

b. 2 Only

c. Both 1 and 2

d. Neither 1 nor 2

 

Solution: a)

 

Insights Prelims Tests 2017, Test 31, Q 2

 

Definition: Money market basically refers to a section of the financial market where financial instruments with high liquidity and short-term maturities are traded. Money market has become a component of the financial market for buying and selling of securities of short-term maturities, of one year or less, such as treasury bills and commercial papers.

 

Over-the-counter trading is done in the money market and it is a wholesale process. It is used by the participants as a way of borrowing and lending for the short term.

Description: Money market consists of negotiable instruments such as treasury bills, commercial papers. and certificates of deposit. It is used by many participants, including companies, to raise funds by selling commercial papers in the market. Money market is considered a safe place to invest due to the high liquidity of securities.

 

It has certain risks which investors should be aware of, one of them being default on securities such as commercial papers. Money market consists of various financial institutions and dealers, who seek to borrow or loan securities. It is the best source to invest in liquid assets.

 

The money market is an unregulated and informal market and not structured like the capital markets, where things are organised in a formal way. Money market gives lesser return to investors who invest in it but provides a variety of products.

 

Withdrawing money from the money market is easier. Money markets are different from capital markets as they are for a shorter period of time while capital markets are used for longer time periods.

 

Meanwhile, a mortgage lender can create protection against a fallout risk by entering an agreement with an agency or private conduit for operational, rather than mandatory, delivery of the mortgage. In such an agreement, the mortgage originator effectively buys an option, which gives the lender the right, but not the obligation, to deliver the mortgage. Against that, the private conduit charges a fee for allowing optional delivery.


 

2.

  • With reference to Hybrid Vehicles, consider the following statements:
  1. A hybrid vehicle uses two or more distinct types of power, such as internal combustion engine plus electric motor
  2. The hybrid vehicle typically achieves greater fuel economy and lower emissions than conventional internal combustion engine vehicles (ICEVs)

Which of the above statements is/are correct?

a. 1 Only

b. 2 Only

c. Both 1 and 2

d. Neither 1 nor 2

 

Solution: c)

 

Insights Prelims Tests 2017, Test 31, Q 7

 

A hybrid vehicle uses two or more distinct types of power, such as internal combustion engine plus electric motor,[1] e.g. in diesel-electric trains using diesel engines and electricity from overhead lines, and submarines that use diesels when surfaced and batteries when submerged. Other means to store energy include pressurized fluid in hydraulic hybrids.

 

The hybrid vehicle typically achieves greater fuel economy and lower emissions than conventional internal combustion engine vehicles (ICEVs), resulting in fewer emissions being generated. These savings are primarily achieved by three elements of a typical hybrid design:

  1. Relying on both the engine and the electric motors for peak power needs, resulting in a smaller engine size more for average usage rather than peak power usage. A smaller engine can have less internal losses and lower weight.
  2. Having significant battery storage capacity to store and reuse recaptured energy, especially in stop-and-go traffic typical of the city driving cycle.
  3. Recapturing significant amounts of energy during braking that are normally wasted as heat. This regenerative braking reduces vehicle speed by converting some of its kinetic energy into electricity, depending upon the power rating of the motor/generator

3.

  • With reference to recent WannaCry ransomware attack, consider the following statements:

 

  1. WannaCry is a cryptoworm
  2. It targeted computers running the JAVA programs
  3. It encrypted user data and demanded ransom payments to be made through PayPal

Which of the above statements is/are correct?

a. 1 Only

b. 1 and 2 Only

c. 2 and 3 Only

d. 1,2 and 3

 

Solution: a)

 

Insights Prelims Tests 2017, Test 31, Q 8

 

The WannaCry ransomware attack was a worldwide cyberattack by the WannaCry  ransomware cryptoworm, which targeted computers running the Microsoft Windows operating system by encrypting data and demanding ransom payments in the Bitcoin cryptocurrency.


4.

  • With reference to powers of Governors of States, consider the following statements:
  1. The Governor appoints members of the Council of Ministers and distributes portfolios to them on the advice of the chief minister
  2. When no party gets a clear majority, the governor can use his discretion in the selection of chief ministerial candidate to prove the majority as soon as possible

Which of the above statements is/are correct?

a. 1 Only

b. 2 Only

c. Both 1 and 2

d. Neither 1 nor 2

 

Solution: c)

 

Insights Prelims Tests 2017, Test 31, Q 10

 

The Constitution vests in the governor all the executive powers of the state government. The governor appoints the chief minister, who enjoys the support of the majority in the Legislative Assembly. The governor also appoints the other members of the Council of Ministers and distributes portfolios to them on the advice of the chief minister.

 

Discretionary powers:

 

The governor can use these powers: When no party gets a clear majority, the governor can use his discretion in the selection of chief ministerial candidate to prove the majority as soon as possible. He submits reports on his own to the president or on the direction of the president regarding the affairs of the state. He can withhold his assent to a bill and send it to the president for his approval. During an emergency rule per Article 353, governor can override the advice of the council of ministers if specifically permitted by the president only.


5.

  • With reference to stagflation, consider the following statements:
  1. During stagflation, there is low inflation and declining GDP growth
  2. During stagflation, there is high unemployment

Which of the above statements is/are correct?

a. 1 Only

b. 2 Only

c. Both 1 and 2

d. Neither 1 nor 2

 

Solution: b)

 

Insights Prelims Tests 2017, Test 31, Q 17

 

A condition of slow economic growth and relatively high unemployment – economic stagnation – accompanied by rising prices, or inflation, or inflation and a decline in Gross Domestic Product (GDP). Stagflation is an economic problem defined in equal parts by its rarity and by the lack of consensus among academics on how exactly it comes to pass.


6.

  • Siachen Glacier is located in

a. The Northern parts of Zanskar Range

b. The eastern Karakoram range in the Himalayas

c. The Ladakh Range

d. None of the above

 

Solution: b)

 

Insights Prelims Tests 2017, Test 31, Q 18

 

The Siachen Glacier is a glacier located in the eastern Karakoram range in the Himalayas at about 35.421226°N 77.109540°E, just northeast of the point NJ9842 where the Line of Control between India and Pakistan ends.  At 76 km (47 mi) long, it is the longest glacier in the Karakoram and second-longest in the world’s non-polar areas. It falls from an altitude of 5,753 m (18,875 ft) above sea level at its head at Indira Col on the China border down to 3,620 m (11,875 ft) at its terminus. The entire Siachen Glacier, with all major passes, is currently under the administration of India since 1984. Pakistan controls the region west of Saltoro Ridge with Pakistani posts located 3,000 ft below 100 Indian posts on Saltoro Ridge.

 


7.

  • Which committee was formed by the British to valuate political terrorism in India and suggest measures to curb the same?

a. Butler Committee

b. Rowlatt Committee

c. Muddiman Committee

d. Hurtog Committee

Solution: b)

 

Insights Prelims Tests 2017, Test 31, Q 24

 

It was instituted towards the end of World War I when the Indian Revolutionary movement had been especially active and had achieved considerable success. • The purpose was to evaluate political terrorism in India, especially Bengal and Punjab, its impact, and the links with the German government and the Bolsheviks in Russia. • These movements even received support from Germany which planned to destabilise British India. • The Rowlatt committee recommended extending the Defence of India Act (as the Rowlatt act) to thwart any possible revival of the organizations like Samiti in Bengal and the Ghadarite movement in Punjab. • The Defence of India Act 1915 was an emergency criminal law with the intention of curtailing the nationalist and revolutionary activities during and in the aftermath of the First World War.


8.

  • With reference to Integrated Child Development Scheme (ICDS), consider the following statements:
  1. This programme is meant for children between 6 to 14 years of age and their mothers
  2. ICDS services are provided from Anganwadi centres
  3. One of the objectives of ICDS is to combat gender inequality

Which of the above statements is/are correct?

a. 1 and 3 Only

b. 2 and 3 Only

c. 1 Only

d. 1,2 and 3

 

Solution: b)

 

Insights Prelims Tests 2017, Test 31, Q 35

 

Integrated Child Development Services (ICDS) is an Indian government welfare programme which provides food, preschool education, and primary healthcare to children under 6 years of age and their mothers. These services are provided from Anganwadi centres established mainly in rural areas and staffed with frontline workers.[1] In addition to fighting malnutrition and ill health, the programme is also intended to combat gender inequality by providing girls the same resources as boys. A 2005 study found that the ICDS programme was not particularly effective in reducing malnutrition, largely because of implementation problems and because the poorest states had received the least coverage and funding.[1] During the 2012–13 fiscal year, the Indian central government spent ₹159 billion (US$2.5 billion) on the programme.[2] The widespread network of ICDS has an important role in combating malnutrition especially for children of weaker groups


9.

  • With reference to the Permanent Settlement System of 1793, consider the following statements:
  1. It was an agreement between the East India Company and Bengali landlords
  2. Under this system, revenues were collected by Zamindars
  3. This system did not spread beyond Bengal and Bihar regions

Which of the above statements is/are correct?

a. 1 Only

b. 1 and 2 Only

c. 2 and 3 Only

d. 1,2 and 3

 

Solution: b)

 

Insights Prelims Tests 2017, Test 31, Q 44

 

The Permanent Settlement, also known as the Permanent Settlement of Bengal, was an agreement between the East India Company and Bengali landlords to fix revenues to be raised from land, with far-reaching consequences for both agricultural methods and productivity in the entire Empire and the political realities of the Indian countryside.

 

 It was concluded in 1793 by the Company administration headed by Charles, Earl Cornwallis, also known as Lord Cornwallis.[1] It formed one part of a larger body of legislation enacted, known as the Cornwallis Code. The Cornwallis Code of 1793 divided the East India Company’s service personnel into three branches: revenue, judicial, and commercial. Revenues were collected by Zamindars, native Indians who were treated as landowners. This division created an Indian landed class that supported British authority.[1] Permanent Settlement introduced first in Bengal and Bihar; and then to North district of Madras and district of Varanasi.

 

The system eventually spread all over Northern India by a series of regulations dated 1 May 1793. These regulations remained in place until the Charter Act of 1833


10.

  • With reference to the Inter-State River Water Disputes (Amendment) Bill, 2017, consider the following statements:
  1. It seeks to set up a single permanent Tribunal to adjudicate all inter-State river water disputes
  2. As per the present version of the bill, the decision of the Tribunal shall be final and binding with no requirement of publication in the official Gazette

Which of the above statements is/are correct?

a. 1 Only

b. 2 Only

c. Both 1 and 2

d. Neither 1 nor 2

 

Solution: c)

 

Insights Prelims Tests 2017, Test 31, Q 56

 

The permanent tribunal will have retired Supreme Court judge as its chairperson.

  • The amendment also proposes to set up Dispute Resolution Committee (DRC).
  • The DRC, comprising experts and policy-makers, is proposed to handle disputes prior to the Tribunal.
  • The government has also proposed to float some Benches by amending the Inter-State Water Disputes Act, 1956.
  • The benches will look into disputes as and when required and will cease to exist once the disputes are resolved.
  • The total time period for adjudication of dispute has been fixed at maximum of four and half years.
  • As per the present version of the bill, the decision of the Tribunal shall be final and binding with no requirement of publication in the official Gazette.

 


11.

  • With reference to the 42nd Amendment to the Constitution, consider the following statements:
  1. It was enacted during the Emergency between 1975-1977
  2. This amendment attempted to reduce the power of the Supreme Court and High Courts to pronounce upon the constitutional validity of laws

Which of the above statements is/are correct?

a. 1 Only

b. 2 Only

c. Both 1 and 2

d. Neither 1 nor 2

 

Solution: c)

 

Insights Prelims Tests 2017, Test 31, Q 62

 

The Forty-second Amendment of the Constitution of India, officially known as The Constitution (Forty-second amendment) Act, 1976, was enacted during the Emergency (25 June 1975 – 21 March 1977) by the Indian National Congress government headed by Indira Gandhi.[1] Most provisions of the amendment came into effect on 3 January 1977, others were enforced from 1 February and Section 27 came into force on 1 April 1977. The 42nd Amendment is regarded as the most controversial constitutional amendment in Indian history. It attempted to reduce the power of the Supreme Court and High Courts to pronounce upon the constitutional validity of laws. It laid down the Fundamental Duties of Indian citizens to the nation.


12.

  • With reference to the Gandhi–Irwin Pact, consider the following statements:
  1. It was signed before the second Round Table Conference in London
  2. It was enacted in view to discontinue the Civil Disobedience Movement and change salt laws

Which of the above statements is/are correct?

a. 1 Only

b. 2 Only

c. Both 1 and 2

d. Neither 1 nor 2

 

Solution: c)

 

It was signed before the second Round Table Conference in London. Before this, the viceroy Lord Irwin announced in 1929, a vague offer of ‘dominion status’ for India in an unspecified future and a Round Table Conference to discuss a future constitution.

 

The proposed conditions under the pact were:

 

  • Discontinuation of the civil disobedience movement by the Indian National Congress
  • Participation by the Indian National Congress in the Round Table Conference
  • Withdrawal of all ordinances issued by the British Government imposing curbs on the activities of the Indian National Congress
  • Withdrawal of all prosecutions relating to several types of offenses except those involving violence
  • Release of prisoners arrested for participating in the civil disobedience movement
  • Removal of the tax on salt, which allowed the Indians to produce, trade, and sell salt legally and for their own private use

 


  1. The railways has started giving accident insurance to such passengers who book their tickets through online mode. Consider the following with reference to it.
  1. Citizens of foreign countries are not eligible for this scheme.
  2. Presently, an insurance premium of ten rupees is charged by the railways per ticket.
  3. Such insurance is to be readily provided at no additional cost for children below five years of age.
  4. The insurance coverage is uniform for all cases of injury and death being pegged at one lakh rupees.

Select the correct answer using the codes below.

a. 2, 3 and 4 only

b. 3 and 4 only

c. 1 only

d. 1 and 2 only

Solution: c

Statement 1: The scheme is applicable only for Indian Citizens who book their e-ticket through NGeT Website Application only. Citizen of foreign countries are not eligible.

Statement 2: Initially, the premium was Rs. 92 paise per passenger inclusive of all taxes, but the scheme is free of cost now.

Statement 3: The travel insurance will not be provided for the children below 5 years of age as per rules.


  1. Among all the sectors of the economy, which one has grown fastest during the 2004-05 to 2010-11 high growth phase?

a. Agriculture

b. Manufacturing

c. Mining

d. Services

Solution: d

The agriculture sector has rarely crossed the 4% growth mark. So, A can be eliminated.
Manufacturing, while performed well (around 8-11%), did not grow faster than services which grew at an astounding rate of around 10-14% during this period.
This was a prime reason for the growing sector of services in the GDP despite extensive liberalization of the manufacturing sector.


  1. Consider the following:
  1. Commonwealth of Nations
  2. BIMSTEC
  3. Asia-Pacific Economic Cooperation
  4. Shanghai Cooperation Organisation  

India is a member of which of the above?

a. 1 and 2 only

b. 2, 3 and 4 only

c. 1, 2 and 4 only

d. 1, 3 and 4 only

Solution: a

Among major organizations, India is a member of the Commonwealth of Nations, the South Asian Association for Regional Cooperation, BIMSTEC, the Non Aligned Movement, the G20, the G8 5.

Others include the International Monetary Fund, the World Bank, the World Trade Organisation, the United Nations, the BRICS, the Shanghai Cooperation Organisation, the Asian Infrastructure Investment Bank and Missile Technology Control Regime.

India has recently joined the MTCR, SCO and AIIB.

 


  1. Communications signals can be sent either by analog signals or digital signals. What is the benefit of sending signals via digital channels?
  1. It can maintain signal quality over longer distances than analogue.
  2. It carries lesser information per second making it less vulnerable to hacking.

Which of the above is/are correct?

a. 1 only

b. 2 only

c. Both 1 and 2

d. None

Solution: a

For an analog signal, the signal is varied continuously with respect to the information. In a digital signal, the information is encoded as a set of discrete values (for example, a set of ones and zeros).

Statement 1: During the propagation and reception, the information contained in analog signals will inevitably be degraded by undesirable physical noise.

Statement 2: Digital signals carry more information per second than analogue signals. This is the same whether optical fibres, cables or radio waves are used.


  1. In context of World History, what was referred to as “Iron Curtain”?

a. Economic growth of iron ore rich and iron ore poor nations

b. Development divide between colonized and colonizer nations

c. Contrast in the progress of Industrial revolution in the East and West

d. Boundary that divided communist and capitalist states in Europe 

Solution: d

The term Iron Curtain refers to the boundary that divided Europe in the west and the Soviet Union and its Communist one-party states in the east.
The division began at the end of World War Two in 1945 and lasted until the fall of the USSR in 1989.
It was a political, military, and ideological barrier erected by the Soviet Union; a fall out of the cold war.


  1. Solibacillus ‘Kalamii’ was recently in news due to which of the following reason(s)?

a. It was discovered on the International Space Station (ISS).

b.It does not have a metabolism of its own.

c. It was the first bacteria to be found on Mars.

d. Both (a) and (c)

Solution: d

The term Iron Curtain refers to the boundary that divided Europe in the west and the Soviet Union and its Communist one-party states in the east.

The division began at the end of World War Two in 1945 and lasted until the fall of the USSR in 1989.

It was a political, military, and ideological barrier erected by the Soviet Union; a fall out of the cold war.


  1.  Consider the following statements.

1. Vitamins in food can be destroyed during processing and cooking of food.

2. Amino acids in proteins can be damaged by excessive heating.

Which of the above is/are correct?

a. 1 only

b. 2 only

c. Both 1 and 2

d. None

Solution: c

Statement 1: The nutrient value of food is almost always altered by the kind of processing it undergoes.
Water-soluble vitamins (B-group and C) are more unstable than fat-soluble vitamins (K, A, D and E) during food processing and storage.
Statement 2: While cooking destroys some essential amino acids foods contain, some lost in cooking may not totally degrade, but rather be leached into the cooking liquid.
Amino acids are the building blocks of protein that help form muscles and other body tissue.


  1. The Khilafat movement collapsed by 1922 when

a. Congress signed the Lucknow pact with the Muslim league

b. The idea of a separate nation Pakistan was mooted

c. The British announced separate electorates for the Muslims

d. The Caliphate was abolished

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. None

Solution: d

All other events in Options A, B and C happened either before the Khilafat or much after it. So, they can be eliminated.
Khilafat was a political protest campaign launched by Muslims of British Raj to influence the British government not to abolish the Ottoman Caliphate.
The movement occurred simultaneously with the Non-cooperation movement and were focused on increasing Hindu Muslim unity.
The movement collapsed by late 1922 when Turkey gained a more favorable diplomatic position and moved toward secularism.
By 1924 Turkey simply abolished the roles of Sultan and Caliph.