Solution: D

NITI Aayog is developing itself as a state-of-the-art resource centre with the necessary knowledge and skills that will enable it to act with speed, promote research and innovation, provide strategic policy vision for the government, and deal with contingent issues.

NITI Aayog’s entire gamut of activities can be divided into four main heads:

1. Policy and Programme Framework
2. Cooperative Federalism
3. Monitoring and Evaluation
4. Think Tank, and Knowledge and Innovation Hub

Solution: A

State Development Loans (SDLs)

State Governments also raise loans from the market which are called SDLs. SDLs are dated securities issued through normal auction similar to the auctions conducted for dated securities issued by the Central Government. Interest is serviced at half-yearly intervals and the principal is repaid on the maturity date. Like dated securities issued by the Central Government, SDLs issued by the State Governments also qualify for SLR. They are also eligible as collaterals for borrowing through market repo as well as borrowing by eligible entities from the RBI under the Liquidity Adjustment Facility (LAF) and special repo conducted under market repo by CCIL.

Solution: D

The government plans to launch an Atmanirbhar Clean Plant Programme to improve the availability of disease-free quality planting material for high-value horticultural crops. The total outlay on the project is estimated at ₹2,200 crore. It is likely to boost several horticultural crops including fruits, vegetables, spices, plantation crops and flowers among others.

The programme will be anchored by the national horticulture board which in turn will set up Clean Plant Centres across the country. These centres will ensure access to disease-free horticulture planting material for the global competitiveness of Indian horticulture sector.

The clean plant programme will aim to enhance the yield of horticulture crops, dissemination and adoption of climate resilient varieties; protect the ecosystem through proactive virus and disease control measures.

Solution: D

The Fiscal Responsibility and Budget Management Act (FRBM Act), 2003, establishes financial discipline to reduce fiscal deficit.

What are the objectives of the FRBM Act?

The FRBM Act aims to introduce transparency in India’s fiscal management systems. The Act’s long-term objective is for India to achieve fiscal stability and to give the Reserve Bank of India (RBI) flexibility to deal with inflation in India. The FRBM Act was enacted to introduce more equitable distribution of India’s debt over the years.

Key features of the FRBM Act

The FRBM Act made it mandatory for the government to place the following along with the Union Budget documents in Parliament annually:

1. Medium Term Fiscal Policy Statement
2. Macroeconomic Framework Statement
3. Fiscal Policy Strategy Statement

The FRBM Act proposed that revenue deficit, fiscal deficit, tax revenue and the total outstanding liabilities be projected as a percentage of gross domestic product (GDP) in the medium-term fiscal policy statement.

Solution: A

Index of Eight Core Industries (BASE: 2011-12=100)

The Eight Core Industries comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP).

The Office of Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT) has released the Index of Eight Core Industries (ICI).

Solution: A

India’s public debt profile is relatively stable and is characterized by low currency and interest rate risks.

Of the Union Government’s total net liabilities by end-March 2021, 95.1 per cent were denominated in domestic currency, while sovereign external debt constituted 4.9 per cent, implying low currency risk (Figure III.15). Further, sovereign external debt is entirely from official sources, which insulates it from volatility in the international capital markets.

Public debt in India is primarily contracted at fixed interest rates, with floating internal debt constituting only 1.7 per cent of GDP in end-March 2021. The debt portfolio is, therefore, insulated from interest rate volatility, which also provides stability to interest payments.

Present debt to GDP ratio is 56%.

Solution: B

Monetary Policy Committee (MPC)

  Section 45ZB of the RBI Act provides for the constitution of a six-member Monetary Policy Committee (MPC) to determine the policy rate required to achieve the inflation target.

Section 45ZB of the amended RBI Act, 1934 provides for an empowered six-member monetary policy committee (MPC) to be constituted by the Central Government by notification in the Official Gazette. The first such MPC was constituted on September 29, 2016.

Governor of the Reserve Bank of India—Chairperson, ex officio;

  The MPC determines the policy repo rate required to achieve the inflation target.

  The MPC is required to meet at least four times in a year. The quorum for the meeting of the MPC is four members.

  Each member of the MPC has one vote, and in the event of an equality of votes, the Governor has a second or casting vote.

  Each Member of the Monetary Policy Committee writes a statement specifying the reasons for voting in favour of, or against the proposed resolution.

Solution: D

Standing Deposit Facility (SDF) Rate: The rate at which the Reserve Bank accepts uncollateralised deposits, on an overnight basis, from all LAF participants. The SDF is also a financial stability tool in addition to its role in liquidity management. The SDF rate is placed at 25 basis points below the policy repo rate.

Marginal Standing Facility (MSF) Rate: The penal rate at which banks can borrow, on an overnight basis, from the Reserve Bank by dipping into their Statutory Liquidity Ratio (SLR) portfolio up to a predefined limit (2 per cent). This provides a safety valve against unanticipated liquidity shocks to the banking system. The MSF rate is placed at 25 basis points above the policy repo rate.

Fine Tuning Operations: The main liquidity operation is supported by fine-tuning operations, overnight and/or longer tenor, to tide over any unanticipated liquidity changes during the reserve maintenance period. In addition, the Reserve Bank conducts, if needed, longer-term variable rate repo/reverse repo auctions of more than 14 days.

Bank Rate: The rate at which the Reserve Bank is ready to buy or rediscount bills of exchange or other commercial papers. The Bank Rate acts as the penal rate charged on banks for shortfalls in meeting their reserve requirements (cash reserve ratio and statutory liquidity ratio). The Bank Rate is published under Section 49 of the RBI Act, 1934.

Solution: B

Emergency Credit Line Guarantee Scheme (ECLGS)

Emergency Credit Line Guarantee Scheme (ECLGS) was announced as part of the Atma Nirbhar Bharat Package in 2020 with the objective to help businesses including MSMEs to meet their operational liabilities and resume businesses in view of the distress caused by the COVID-19 crisis, by providing Member Lending Institutions (MLIs), 100 percent guarantee against any losses suffered by them due to non-repayment of the ECLGS funding by borrowers.

The overall ceiling initially announced for ECLGS was Rs 3 lakh crore which was subsequently enhanced to Rs 4.5 lakh crore. However, ECLGS being a demand driven scheme, sanctions/disbursements are made by lending institutions based on assessment of borrower’s requirement and their eligibility. ECLGS is under the operational domain of Ministry of Finance, Department of Financial Services (DFS).

Objective of the Scheme

• Launched by Government of India as a special scheme in view of COVID-19 crisis
• To provide 100% guarantee coverage to Banks and NBFCs to enable them to extend emergency credit facilities to Business Enterprises / MSMEs in view of COVID-19 to meet their additional term loan/additional working capital requirements.

Solution: A

What Is Stagflation?

Stagflation is an economic cycle characterized by slow growth and a high unemployment rate accompanied by inflation. Economic policymakers find this combination particularly difficult to handle, as attempting to correct one of the factors can exacerbate another.

Key Takeaways

• Stagflation is the simultaneous appearance in an economy of slow growth, high unemployment, and rising prices.
• Once thought by economists to be impossible, stagflation has occurred repeatedly in the developed world since the 1970s.
• Policy solutions for slow growth tend to worsen inflation, and vice versa. That makes stagflation hard to fight.

The Phillips curve is an economic theory that inflation and unemployment have a stable and inverse relationship.

The original concept of the Phillips curve has been somewhat disproven due to the occurrence of stagflation in the 1970s, when there were high levels of both inflation and unemployment.

Solution: D

For the world as a whole, the share of trade as a percentage of world GDP has been in the range of 50-60 per cent since 2003 and stood at 52 per cent in 2020, according to the World Bank database. For India as well, the share of trade as a percentage of GDP has been steadily increasing, being above 40 per cent since 2005 (except 2020 being the pandemic year). The ratio stands at 46 per cent in 2021.

India achieved an all-time high annual merchandise export of US$ 422.0 billion in FY22.

Solution: A

Capital Receipts: The government also receives money by way of loans or from the sale of its assets. Loans will have to be returned to the agencies from which they have been borrowed. Thus, they create liability. Sale of government assets, like sale of shares in Public Sector Undertakings (PSUs) which is referred to as PSU disinvestment, reduce the total amount of financial assets of the government. All those receipts of the government which create liability or reduce financial assets are termed as capital receipts. When government takes fresh loan it will mean that in future these loans will have to be returned and interest will have to be paid on these loans. Similarly, when government sells an asset, then it means that in future its earnings from that asset, will disappear. Thus, these receipts can be debt creating or non-debt creating.

Revenue Receipts: Cash grants-in-aid from foreign countries and international organisations.

Solution: C

ANGEL INVESTOR

A new term in India’s financial market, introduced in the Union Budget 2013–14 which announced that SEBI will soon prescribe the provisions by which the angel investor can be recognised as Category I AIF venture capital funds.

Angel fund is defined as a sub-category of Venture Capital Fund under Category I- Alternative Investment Fund (AIF) that raises funds from angel investors and invests in accordance with the rules specified in Chapter III –A of SEBI (Alternative Investment Funds) (Amendment) Regulations, 2013.

Angel investor is an investor who provides financial backing to entrepreneurs for ‘starting their business’. Angel investors are usually found among an entrepreneur’s family and friends but they may be from outside also. The capital they provide can be a one-time injection of seed money or ongoing support to carry the company through difficult times—in exchange they may like owning share in the business or provide capital as loan (in case of a loan they lend at more favourable terms than other lenders, as they are usually investing in the person rather than the viability of the business). Other than investible capital, these investors provide technical advices and also help the ‘start-up’ business with their lucrative contacts.

They are focused on helping the business succeed, rather than reaping a huge profit from their investment. Angel investors are essentially the exact opposite of a venture capitalist in their ‘intention’ (who has high profit prospects as their prime focus). But in one sense both—an angel investor and a venture investor—serve the same purpose for the entrepreneur (who is in dire need of investible capital).

Solution: A

All you want to know about capital account convertibility

What is it?

The balance of payments account, which a statement of all transactions made between a country and the outside world, consists of two accounts — current and capital account. While the current account deals mainly with import and export of goods and services, the capital account is made up of cross-border movement of capital by way of investments and loans.

Similarly, capital account convertibility means the freedom to conduct investment transactions without any constraints. Typically, it would mean no restrictions on the amount of rupees you can convert into foreign currency to enable you, an Indian resident, to acquire any foreign asset. Similarly, there should be no restraints on your NRI cousin bringing in any amount of dollars or dirhams to acquire an asset in India.

India has come a long way in liberating the capital account transactions in the last three decades and currently has partial capital account convertibility.

Solution: A

MAT stands for Minimum Alternate Tax

Objective of levying MAT

At times it may happen that a taxpayer, being a company, may have generated income during the year, but by taking the advantage of various provisions of Income-tax Law (like exemptions, deductions, depreciation, etc.), it may have reduced its tax liability or may not have paid any tax at all. Due to increase in the number of zero tax paying companies, MAT was introduced by the Finance Act, 1987 with effect from assessment year 1988-89. Later on, it was withdrawn by the Finance Act, 1990 and then reintroduced by Finance (No. 2) Act, 1996, wef1-4-1997.

The objective of introduction of MAT is to bring into the tax net “zero tax companies” which in spite of having earned substantial book profits and having paid handsome dividends, do not pay any tax due to various tax concessions and incentives provided under the Income-tax Law.

Since the introduction of MAT, several changes have been introduced in the provisions of MAT and today it is levied on companies as per the provisions of section 115JB.

How is MAT calculated?

Minimum Alternate Tax is applied when the taxable income calculated according to the I-T Act provisions is found to be less than 15.5 per cent (plus surcharge and cess as applicable) of the book profit under the Companies Act, 2013.

Solution: A

State of Environment Report 2022

State of Environment Report 2022 is published by Centre for Science and Environment (CSE), an NGO. The report is the annual publication of the CSE and Down To Earth (magazine).

The report focuses on climate change, migration, health and food systems. CSE is a public interest research and advocacy organisation based in New Delhi.

Solution: B

Inter-State Council (ISC)

Established under Article 263 of the Constitution, which states that the President may constitute such a body if a need is felt for it. In 1988, the Sarkaria Commission suggested the Council should exist as a permanent body, and in 1990 it came into existence through a Presidential Order.

The Council consists of: Prime Minister – Chairman; Chief Ministers of all States and Union Territories having a Legislative Assembly – Members;
Administrators of UTs not having a Legislative Assembly – Members; Six Ministers of Cabinet rank in the Union Council of Ministers to be nominated by the Prime Minister – Members and 10 Union Ministers as permanent invitees

Function: Inquiring into and advising on disputes between states; Investigating and discussing subjects in which two states or states and the
Union have a common interest and Making recommendations for the better coordination of policy and action.

Solution: C

National Commission for Protection of Child Rights (NCPCR)

Set up in March 2007 under the Commission for Protection of Child Rights Act, 2005. It works under the administrative control of the Ministry of Women & Child.

The Child is defined as a person in the 0 to 18 years age group. This commission has a chairperson and six members of which at least two should be women. All of them are appointed by the Central Government for 3 years. The maximum age to serve in commission is 65 years for Chairman and 60 years for members.

The Commission’s mandate is to ensure that all laws, policies, programmes, and administrative mechanisms are in consonance with the child rights perspective as enshrined in the Constitution of India and also the UN Convention on the Rights of the Child.

It enquires into complaints relating to a child’s right to free and compulsory education under the Right to Education Act, 2009. It monitors the implementation of Protection of Children from Sexual Offences (POCSO) Act, 2012

Solution: C

National Consumer Disputes Redressal Commission (NCDRC)

It is a quasi-judicial commission in India which was set up in 1988 under the Consumer Protection Act of 1986.

Its head office is in New Delhi. The commission is headed by a sitting or retired judge of the Supreme Court of India.

The provisions of this Act cover ‘goods’ as well as ‘services’. If a consumer is not satisfied by the decision of a District Forum, he can appeal to the State
Commission. Against the order of the State Commission, a consumer can come to the National Commission.

Section 21 of the Consumer Protection Act, 1986 provides that the NCDRC
shall have jurisdiction: To entertain a complaint valued more than one crore and also have appellate and revisional jurisdiction from the orders of State Commissions or the District for a as the case may be

Solution: B

Contesting Elections from Multiple Seats

As per Section 33(7) of the RPA, one candidate can contest from a maximum of two constituencies (more constituencies were allowed until 1996 when the RPA was amended to set the cap at two constituencies) not under Anti-defection.

Section 70 of RPA bars candidates from representing two constituencies in the Lok Sabha/state Assembly, meaning that if a candidate won both seats, he or she is legally mandated to vacate one of the seats in favour of the other

Solution: C

Public Interest Litigation (PIL)

PIL is the use of the law to advance human rights and equality or raise issues of broad public concern. Public interest litigation is not defined in any statute or in any act. It has been interpreted by judges to consider the intent of public at large

Expression PIL has been borrowed from American jurisprudence. PIL is based upon Article 39 A which makes sure that state secures and provides justice without any discrimination based on caste, religion, creed etc.

PIL is the power given to the public by courts. Public interest cases may arise from both public and private law matters (a private interest case can also be treated as public interest case)

Solution: D

Anti-Defection Law

The Tenth Schedule was inserted in the Constitution in 1985 by the 52nd Amendment Act.

It lays down the process by which legislators may be disqualified on the
grounds of defection by the Presiding Officer of a legislature based on a petition by any other member of the House.

The decision on question as to disqualification on ground of defection
is referred to the Chairman or the Speaker of such House, and his decision is final.

Solution: D

Legal position of Abortion in India

Under the Indian Penal Code, 1860, abortion remains a criminal offence under Section 312. However, the Medical Termination of Pregnancy Act,
1971 (MTP) and its amendment simply provides an exception to the criminalization.

The MTP Act, 1971 allows abortion until 20 weeks of pregnancy. Through an amendment in 2021, the ceiling for abortions was raised to 24 weeks, but only for special categories of pregnant women such as rape or incest survivors, that too, with the approval of two registered doctors.

In the case of foetal disability, there is no limit to the timeline for abortion, but that is allowed by a medical board of specialist doctors set up by the governments of states and union territories.

Solution: D

Virtual Private Network (VPN)

VPN stands for “Virtual Private Network” and describes the opportunity to establish a protected network connection when using public networks. VPNs encrypt internet traffic and disguise the user’s online identity. This makes it more difficult for third parties to track activities online and steal data. The encryption takes place in real time.

A VPN hides the user’s IP address by letting the network redirect it through a specially configured remote server run by a VPN host. This means that if a user is surfing online with a VPN, the VPN server becomes the source of data. Internet Service Provider (ISP) and other third parties cannot see which websites the user visits or data sent and received online.

Solution: D

The James Webb Space Telescope is a space telescope currently conducting infrared astronomy. As the largest optical telescope in space, it is equipped with high-resolution and high-sensitivity instruments, allowing it to view objects too old, distant, or faint for the Hubble Space Telescope. Launched in 2021.

James Webb Telescope

The telescope is the result of an international collaboration between NASA, the European Space Agency (ESA) and the Canadian Space Agency.

Webb will reveal new and unexpected discoveries, and help humanity understand the origins of the universe and our place in it. The telescope will study the atmospheres of a wide diversity of exoplanets.

It will also search for atmospheres similar to Earth’s, and for the signatures of key substances such as methane, water, oxygen, carbon dioxide, and complex organic molecules, in hopes of finding the building blocks of life. Recently, it was hit by micrometeoroid.

Solution: d) 80M

Explanation:

When A covers 2000m, B covers 1600m.

Therefore, their speeds are in the ratio of the distances they cover i.e, 2000:1600 = 5:4

In 400m race, when A covers 400m, B covers 320m.

If B wants to finish the race with A, B should get a start of 80m.

Solution: b) 100

Explanation:

Let the cat and rat run 6 steps and 7 steps respectively in a second.

Therefore speed of the cat and the rat respectively are 6steps/s and 7steps/s.

Let the 3 steps of the cat or 5 steps of the rat cover 1m.

Therefore the speed of the cat and the rat can be written as (6/3) m/s and (7/5) m/s.

i.e. 2m/s and 1.4m/s respectively.

The relative speed of the cat = 2m/s – 1.4 m/s = 0.6m/s

The rat is spotted 30 cat steps away means (30/3) m i.e. 10m.

The time required to cover 10m by the cat = (10/0.6) = 50/3 s.

The distance covered by the cat = Speed × time = 2 × (50/3) = 100/3 m.

The steps that the cat has to run for = 3 steps/m × (100/3) m = 100.

Correct Answer: A) 9kmph

Explanation:
If Mahesh moves 8 km downstream in X hours
Downstream speed = 8/X kmph
upstream speed = 4/X kmph
Now 80/(8/X) + 80/(4/X)=20
X=2/3
downstream Speed = 8/(2/3)= 12 kmph
upstream Speed = 4/(2/3)= 6 kmph
Rate of the stream = (12+6)/2= 9 kmph

Ans. B) The red foot soldiers of India, if they remove the glasses of ignorance from their eyes, will no longer be intoxicated by the ideology they are fighting for

The central focus of the passage is on the LWEs who are fighting an ideological battle, where their ideology is guilty of the same crimes as the ideology they are fighting for. Hence B.

Solution: c) 8.56 am

Justification:

A covers the distance between Mumbai and Pune in 4 hours whereas B covers the same distance in 3.5 hours.

Ratio of time taken by A and B = 4 : 3.5 = 8 : 7

Since time and speed are inversely proportional, the ratio of speeds of A and B = 7 : 8

By the time B starts from Pune, A would have covered half the distance from Mumbai to Pune.

So, A and B will meet between 8am to 10am.

When they will meet each other, the distance covered by A will be 7/15 of the half of the distance and by B will be 8/15 of the half of the distance.

They will meet 7/15 of 2 hours after 8am i.e. 7/15 of 120 mins after 8am i.e. 56 mins after 8 am.

So, at 8:56 am they will meet each other.