SHANKAR IAS ACADEMY

TEST 4 - ECONOMICS - I - EXPLANATION KEY

1. Ans (c)
Explanation:
 RBI publishes ‘Report on currency and finance’, regarding currency position in the system and
health of the financial system.
 National Accounts Statistics is published by CSO under Ministry of statistics and program
implementation. The Central Statistics Office is responsible for co-ordination of statistical
activities in the country, and evolving and maintaining statistical standards. Its activities include
National Income Accounting; conduct of Annual Survey of Industries, Economic Censuses and its
follow up surveys, compilation of Index of Industrial Production, as well as Consumer Price Indices
for Urban Non-Manual Employees, Human Development Statistics, Gender Statistics, imparting
training in Official Statistics.

2. Ans (d)
Explanation:
TogaluGombeyaata is a puppet show unique to the state of Karnataka, India. TogaluGombeyaata
translates to a play of leather dolls in the native language of Kannada. It is a form of shadow puppetry.
Karnataka ChitrakalaParishat has undertaken research on this art and has a good collection of leather
puppets.

3. Ans (a)
Explanation:
 The conclave is organized by Lalit Kala Akademy under Ministry of Culture.
 It is a unique artistic event representing the important schools of Indian tribal art, alongside other
art genres.
 The conclave platform features different forms of tribal art such as Cheriyal painters from
Telangana, Patachitra art from Odisha, fresco paintings from Rajasthan, Bhil, Mina works and
Paintings on leather by artists from Andhra Pradesh.

4. Ans (b)
Explanation:
 Fiscal deficit is defined as excess of total expenditure over total receipts less borrowings.
 It represents the total amount of borrowed funds required by the govt. to meet its expenditure.
Upward trend of Fiscal deficit has adverse affect on private investment. Thus adhering to fiscal
targets is imperative.

5. Ans (c)

6. Ans (b)

7. Ans (b)
Explanation:
Rewa Ultra Mega Solar is a proposed solar park spread over an area of 1,590 acres (6.4 km2) in the
Gurh tehsil of Rewa district of Madhya Pradesh. The project is expected to be commissioned with 750
MW capacity by the end of 2018.Rewa Ultra Mega Solar Limited (RUMSL), the implementing agency of
the project, is a joint venture between the Madhya Pradesh UrjaVikash Nigam Limited (MPUVNL) and
the Solar Energy Corporation of India (SECI).

8. Ans (d)
Explanation:
 The Members of Parliament Local Area Development Division is entrusted with the responsibility
of implementation of Members of Parliament Local Area Development Scheme (MPLADS). Under
the scheme, each MP has the choice to suggest to the District Collector for works to the tune of
Rs.5 Crores per annum to be taken up in his/her constituency.
 The Rajya Sabha Members of Parliament can recommend works in one or more districts in the
State from where he/she has been elected.
 SHANKAR
R IAS ACADEM
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 TThe Nominatted Memberrs of the Lok Sabha and Rajya Sabha may select any one or more m Districtts
f
from any onee State in the Country fo
or implemenntation of theeir choice off work underr the schemee.
T
The Ministryy has issued the guideelines on MPLADS
M Scheme including implementation an nd
m
monitoring o the scheme.
of
P
Please refer the link
h
http://www. mplads.gov.in/mplads/D Default.aspx

9
9. Ans (b)
(
Explaanation:
CSO, Ministry off Statistics and Programme Implementation publishes IIP. TThe base ye
ear of IIP waas
changed to 2011-12 from 200 04-05.

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10. Ans (c)
(
Explaanation:
 This
T framewo ork outlines a methodology to rank institutions across the country. The methodologgy
d
draws from the
t overall recommenda
r ations broad d understand ding arrived at by a Corre Committeee
s up by MH
set HRD, to identtify the broad parameterrs for rankingg various universities and institutions.
T parametters broadly cover “Teaching, Learn
The ning and Ressources,” “Research and d Professionaal
P
Practices,” “G
Graduation Outcomes,”
O “
“Outreach annd Inclusivityy,” and “Percception”.
 India Rankinggs – 2016 based on this framework
f were
w releasedd on 4th Aprril 2016.
 For
F India Ran nkings – 20117, the main ranking parrameters rem main the sam me. However, there are a
f
few significant changes in a few sub-parameters. Also, thiss year everyy large instittution will be b
g
given a comm mon overall rank
r as well as a disciplin
ne specific raank as applicable.

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11. Ans (b)
(
Explaanation:
The University Grants
G Comm mission (Min
nimum Stand dards and Procedure for Award of M.Phil./ Ph.D
Degrees), Regulaation, 2016, mandates th hat after successful comp
pletion of th
he evaluation n process an nd
before the annou uncement off the award of
o the M.Phiil./Ph.D. degree(s), the In
nstitution co
oncerned shaall
submmit an electrronic copy of
o the M.Phiil. dissertatio
on /Ph. D. thesis
t to thee Informatioon and librarry
Netwwork (INFLIBNNET), for hosting the sam
me so as to make it acceessible to all Institutionss/Colleges. To
T
impleement this provision
p of the
t UGC Regulations, 201 16, Shodhganga repositoory was set up. The task ofo
settin ned to INFLIBNET Centree, Gandhinagar – an Intter-Universitty
ng-up of this repositoryy was assign
Centre of the University Grannts Commission (UGC).

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12. Ans (d)
(
Explaanation:
ADB serves as th he SASEC Secretariat, woorking with member governments tto help implement SASEEC
projeects and initiatives and to
t provide teechnical support. Myanm
mar is not a founding member of th
he
organnisation in th
he month of April 2017.

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13. Ans (c)
(
Explaanation:
Indiaa and the UK
K announced d the launch of an Early Market Engagement forr the joint UK-India
U Fundd,
nameely a Green Growth
G Equity Fund whicch aims to le everage privaate sector invvestment fro
om the City of
o
Londdon to invest in green infrastructure projects
p in In
ndia.
 SHANKAR
R IAS ACADEM
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14. Ans (c)
(
Explaanation:
 Farm
F loan waivers could be detrimen ntal to the economy
e as they
t could reduce aggre egate deman nd
b 0.7 per cent of GDP, im
by mparting a siignificant deflationary sh hock to the eeconomy, the e Survey said
d.
 There
T is visib ble farm stress, even though it is not as widespreead as it is m made out to be,b the Surveey
s
said, adding that t the drasstic decline in farm revennues was notthing short o of mystery.
 Iff all State Go overnments resort to farm loan waivers, like the five States th hat had anno ounced them m,
t aggregate demand would
the w come down
d byRs1.1 lakh crore..
 SoS far, only Karnataka,
K M
Maharashtra, Punjab, Tammil Nadu and d Uttar Pradeesh have announced cro op
lo
oan waiverss for the farrmers. If oth her States were
w to follo
ow suit, the total loan waivers
w coulld
t
topRs2.7 lakhh crore, the Survey
S said.
 With
W the Cen ntre categoriically statingg that it would not assum me any respo onsibility for loan waiverrs,
t States might have to
the o finance thee waivers on their own. But, B most Sttates are nott in a positio on
t absorb thee additional burden arising out of the
to e waivers beecause of theeir already sq queezed fiscaal
s
space, it said.
 This
T is becau use their sp
pending is in nfluenced byy their need d to respect the Fiscal Responsibilitty
L
Legislation targets. “If they
t assumee higher debt, they willl in many ccases need to cut otheer
s
spending (or increase taxxes). Once th hese spendin ng changes taake place, th here will be second-roun
s nd
e
effects,” the Survey said.
 One
O of them would be th he subdued aggregate
a de
emand. The survey estim mated that th he cumulativve
r
reduction in aggregate deemand would beRs 9 lakh crore.
 A portion off this would be offset by b public sector banks as they wou uld be able to take non n-
p
performing f
farm loans off their baalance books. This wou uld help theem to provide additionaal
f
financial reso ources to thee private secttor, leading to
t greater sp pending, acco ording to thee Survey.
Itt argued agaainst farm lo oan waivers saying it would only transfer liabilitiies from privvate sector to t
p
public sectorr balance sheeets. Loan waaivers, it said d, will increaase the net w
wealth of farm m household ds
a farmers’ aggregate inccome will inccrease 28 perr cent.
as

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15. Ans (d)
(
Explaanation:
The first
f united budget
b of the country since 1924 an nd it containss 3 major reforms. First, presentatio on
of Buudget advan nced to Febrruary 1 to enable the Ministries
M to operationalise all activities from th he
comm mencement of the finan ncial year. Second,
S merrger of Railw ways Budgett with General Budget to t
bringg Railways too the centre stage of Go overnment’s Fiscal Policyy and Third, removal of planp and non n-
n of expenditure to facilitate a holistic view of allocations forr sectors and ministries.
plan classification

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16. Ans (b)
(
Explaanation:
Office of the Econnomic Adviseer (OEA) is an attached office
o of the Ministry of C
Commerce & Industry.
Pleasse refer the link
http://eaindustryy.nic.in/abou
ut_us.asp

1
17. Ans (d)
(
Explaanation:Who
olesale Price
e Index:
 SHANKAR
R IAS ACADEM
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Conssumer Price IndexI
Conssumer Price Indices (CPI) released at national leve el are:
 CPIC for Industtrial Workers (IW)
 CPIC for Agricu ultural Labou
urers (AL)/ Rural Laboure ers (RL)
 CPIC (Rural/Urrban/Combin ned).
While the first tw wo are compiled and reeleased by the Labour BureauB in thee Ministry of
o Labour an nd
Emplloyment, th he third by the Central Statistics Office (CSO O) in the M Ministry of Statistics
S annd
Programme Implementation..
In Inddia, RBI usess CPI (combin ned) releaseed by CSO for inflation pu
urpose. Impo ortant notes on this indeex
are as
a follows:
Base Year
Base year for CPI (Rural, Urbaan, Combined) is 2012=1 100.
Num mber of itemss
The number
n of ittems in CPI basket include 448 in ru ural and 460 in urban. Thhus, it makes it clear thaat
CPI basket
b is broaader than WPI
W basket. Th he items in CPI
C are divideed into 6 main groups as follows:

Key diffferences bettween WPI & CPI

 Prim mary use of WPI is to have inflationaary trend in the
t economyy as a whole. However, CPI C is used fo or
adjusting incom me and expen nditure streaams for changes in the co
ost of living.
 WP PI is based on o wholesalee prices for primary articles, administered pricees for fuel items and exx-
facttory prices for
f manufactured produ ucts. On the other hand, CPI is baseed on retail prices, whicch
incllude all distribution costss and taxes.
 Pricces for WPI are a collectedd on voluntary basis whille price dataa for CPI are collected byy investigatorrs
by visiting
v markkets.
 CPI covers only consumerr goods and d consumer services while WPI co overs all goo ods includinng
inteermediate go oods transaccted in the ecconomy.
 WP PI weights prrimarily baseed on nation nal accounts and enterp prise survey data and CP PI weights arre
derrived from co onsumer exp penditure surrvey data.

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18. Ans (a)
(
Explaanation:
 Monetary
M Poolicy Framew work envisioons low and stable infflation is im mperative fo or sustainable
p
progress of the nation.
 Inflation adveersely affects producers as well as co onsumers.
 During
D inflation when th he prices risee (and the re
eal value of money goess down), the e debtors paay
b
back less in real
r terms than what they had borrow wed, and thuus, to that exxtent they arre gainers. On
O
t other hand, the creditors get less in terms off goods and services than what theyy had lent an
the nd
s
stand to losee to that exteent.

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19. Ans (b)
(
Explaanation:Key features of thet Small Fin nance Bank guidelines
g are:
i) Obbjectives:
The objectives
o off setting up of nce banks will be to furth
o small finan her financial inclusion byy (a) provisio
on
of savings vehiclees, and (ii) su
upply of cred
dit to small business
b units; small and
d marginal faarmers; micrro
and small indusstries; and other unorgganised secttor entities,, through h high technollogy-low cosst
operations.
iii) Scope of activities: The small financce bank shall primarily undertake
u b
basic bankingg activities of
o
accep ptance of deeposits and lending to unserved
u annd underservved sectionss including small businesss
 SHANKAR IAS ACADEMY
units, small and marginal farmers, micro and small industries and unorganised sector entities.There
will not be any restriction in the area of operations of small finance banks.
iv) Capital requirement: The minimum paid-up equity capital for small finance banks shall be Rs. 100
crore.
v) Prudential norms:The small finance bank will be subject to all prudential norms and regulations of
RBI as applicable to existing commercial banks including requirement of maintenance of Cash Reserve
Ratio (CRR) and Statutory Liquidity Ratio (SLR). No forbearance would be provided for complying with
the statutory provisions.
VI) The small finance banks will be required to extend 75 per cent of its Adjusted Net Bank Credit
(ANBC) to the sectors eligible for classification as priority sector lending (PSL) by the Reserve Bank.
VII) At least 50 per cent of its loan portfolio should constitute loans and advances of uptoRs. 25 lakh.

20. Ans (a)

Explanation:
Krishi Karman awards were instituted in the year 2010-11 to reward the best performing States in
foodgrains and individual crops of Rice, Wheat, Pulses and Coarse Cereals.Krishi Karman awards are
given to Best performer States for raising country's food grain production.Krishi Karman Awards
comprises of three awards for total food grain production and four awards for production of rice,
wheat, coarse cereals and pulses - the crops that constitute the food grain.

21. Ans (a)

Explanation:
What can be the possible reasons for NPAs?
 Diversification of funds to unrelated business/fraud.
 Lapses due to diligence.
 Business losses due to changes in business/regulatory environment.
 Lack of morale, particularly after government schemes which had written off loans.
 Global, regional or national financial crisis which results in erosion of margins and profits of
companies, therefore, stressing their balance sheet which finally results into non-servicing of
interest and loan payments. (For example, the 2008 global financial crisis).
 The general slowdown of entire economy for example after 2011 there was a slowdown in the
Indian economy which resulted in the faster growth of NPAs.
 The slowdown in a specific industrial segment, therefore, companies in that area bear the heat
and some may become NPAs.
 Unplanned expansion of corporate houses during boom period and loan taken at low rates later
being serviced at high rates, therefore, resulting into NPAs.
 Due to mal-administration by the corporate, for example, wilful defaulters.
 Due to misgovernance and policy paralysis which hampers the timeline and speed of projects,
therefore, loans become NPAs. For example Infrastructure Sector.
 Severe competition in any particular market segment. For example Telecom sector in India.
 Delay in land acquisition due to social, political, cultural and environmental reasons.
 A bad lending practice which is a non-transparent way of giving loans.
 Due to natural reasons such as floods, droughts, disease outbreak, earthquakes, tsunami etc.
 Cheap import due to dumping leads to business loss of domestic companies. For example Steel
sector in India.

22. Ans (b)

Explanation:
 Inflation targeting is a monetary policy strategy used by Central Banks for maintaining price level
at a certain level or within a range. It indicates the primacy of price stability as the key objective of
monetary policy. The argument for price stability stems from the fact that rising prices create
uncertainties in decision making, adversely affecting savings and encouraging speculative
investments. Inflation targeting brings in more predictability and transparency in deciding
monetary policy. If the central banks could ensure price stability, households and companies can
plan ahead, negotiating wages on the basis of expecting low and stable inflation. Various
advanced economies including United States, Canada and Australia have been using inflation
targeting as a strategy in their monetary policy framework.
 SHANKAR IAS ACADEMY
 The Reserve Bank of India and Government of India signed a Monetary Policy Framework
Agreement on 20th February 2015. As per terms of the agreement, the objective of monetary
policy framework would be primarily to maintain price stability, while keeping in mind the
objective of growth. The monetary policy framework would be operated by the RBI. RBI would aim
to contain consumer price inflation within 6 percent by January 2016 and within 4 percent with a
band of (+/-) 2 percent for all subsequent years.

23. Ans (d)

24. Ans (b)

Explanation:
 The National List of Essential Medicines of India 2011 (NLEM 2011) is a list of medicines, prepared
by the Ministry of Health and Family Welfare, which are considered essential in India. The first
such list was released in 1996.
 The primary purpose of NLEM is to promote rational use of medicines considering the three
important aspects i.e. cost, safety and efficacy. NLEM is one of the key instruments in balanced
healthcare delivery systems of the country which includes accessible, affordable quality medicines
at all the primary, secondary and tertiary levels of healthcare.

25. Ans (d)

Explanation:
 Neglected tropical diseases (NTDs)– a diverse group of communicable diseases that prevail in
tropical and subtropical conditions in 149 countries – affect more than one billion people and cost
developing economies billions of dollars every year. Populations living in poverty, without
adequate sanitation and in close contact with infectious vectors and domestic animals and
livestock are those worst affected.
 In April 2017, WHO released its fourth report on neglected tropical disease and the progress made
for achieving the roadmap target for 2020.

26. Ans (d)

Explanation:
Due to the strength of its 0.142 Nm-long carbon bonds, graphene is the strongest material ever
discovered, with an ultimate tensile strength of 130,000,000,000 Pascals (or 130 gigapascals).

27. Ans (a)

Explanation:
 The Assam Accord (1985) was a Memorandum of Settlement (MoS) signed between
representatives of the Government of India and the leaders of the Assam Movement in New Delhi
on 15 August 1985.
 One of the key demands were that all those foreigners who had entered Assam between 1951 and
1961 were to be given full citizenship, including the right to vote.

28. Ans (b)

29. Ans (d)

Explanation:
The Ministry of Health and Family Welfare has launched a program called Red Line campaign. It is an
Anti-Microbial Resistance awareness campaign.This awareness campaign impulses people not to use
medicines marked with a red vertical line, comprising of antibiotics, without the prescription of a
doctor. These medicines are called as the ‘Medicines with the Red Line’. This campaign is intended at
discouraging needless prescription and over-the-counter sale of antibiotics causing drug resistance for
numerous dangerous diseases comprising of Tuberculosis, Malaria, and even HIV etc.

30. Ans (c)

Explanation:
Fiscal stimulus refers to increasing government consumption or transfers or lowering taxes. Effectively
this means increasing the rate of growth of public debt, except that particularly Keynesians often
assume that the stimulus will cause sufficient economic growth to fill that gap partially or completely
 SHANKAR IAS ACADEMY
31. Ans (c)
Explanation:SIDBI is the custodian of FFS

32. Ans (c)

Explanation:
http://www.thehindu.com/news/national/india-home-to-27-312-elephants-census/article19504430.ece

33. Ans (c)

Explanation:
 Mission Indradhanush is a 7-pronged plan to address the challenges faced by public sector banks
(PSBs). Many of the measures taken were suggested by P J Nayak committee on Banking sector
reforms as indicated.
 The 7 parts include appointments, Banks board bureau, capitalisation, de-stressing,
empowerment, framework of accountability and governance reforms (ABCDEFG)
 Appointments - separation of posts of CEO and MD to check excess concentration of power and
smoothen the functioning of banks; also induction of talent from private sector ( recommendation
of P J Nayak Committee)
 Bank Boards Bureau - will replace the appointments board of PSBs.
 It will advise the banks on how to raise funds and how to go ahead with mergers and acquisitions.
 It will also hold bad assets of public sector banks.
 It will be a step into eventual transition of the bureau into a bank holding company. It will
separate the functioning of the banks from the government by acting as a middle link.
 The bureau will have three ex-officio members and three expert members, in addition to the
Chairman.
 Capitalisation
 Capitalisation of the banks by inducing Rs 70,000 crore into the banks in the next 4 years
 Banks are in need of capitalisation due to high NPAs and due to need to meet the new BASEL- III
norms
 De-stressing
 Solve issues in the infrastructure sector to check the problem of stressed assets in banks
 Empowerment
 Greater autonomy for banks; more flexibility for hiring manpower
 Framework of accountability
 The banks will be assessed on the basis of new key performance indicators. These quantitative
parameters such as NPA management, return on capital, growth and diversification of business
and financial inclusion as well as qualitative parameters such as human resource initiatives and
strategic steps to improve assets quality.
 Governance Reforms
 GyanSangam conferences between government officials and bankers for resolving issues in
banking sector and chalking out future policy.

34. Ans (b)

35. Ans (b)

Explanation:
 System of Air Quality and Weather Forecasting Research (SAFAR) operates under the aegis of the
Indian Institute of Tropical Meteorology (IITM), an autonomous body under the Ministry of Earth
Sciences
 It facilitates information on air quality, weather and radiation (Ultraviolet index).
 The UV index is a rough measure of the amount of harmful ultraviolet radiation in the sunlight
reaching the earth.
 SAFAR has been operational in Pune, Mumbai, Delhi and will also be set up in Ahmedabad.
 SAFAR‘s recent data shows that Delhi faced a high risk of ultraviolet radiation; Mumbai has been
at medium risk while Pune is in the low-risk zone.
 In Pune, although the temperature was high, the UV index remained in low risk zone as there are
still a lot of aerosol particles in the atmosphere which scatter back the ultraviolet dose.
 SHANKAR IAS ACADEMY
36. Ans (b)

37. Ans (c)

Explanation:
Any researcher who plans to conduct a trial involving human participants, of any intervention such as
drugs, surgical procedures, preventive measures, lifestyle modifications, devices, educational or
behavioural treatment, rehabilitation strategies as well as trials being conducted in the purview of the
Department of AYUSH (http://indianmedicine.nic.in/) is expected to register the trial in the CTRI
before enrolment of the first participant. Trial registration involves public declaration and
identification of trial investigators, sponsors, interventions, patient population etc before the
enrolment of the first patient. Submission of Ethics approval and DCGI approval (if applicable) is
essential for trial registration in the CTRI. Multi-country trials, where India is a participating country,
which have been registered in an international registry, are also expected to be registered in the CTRI.
In the CTRI, details of Indian investigators, trial sites, Indian target sample size and date of enrolment
are captured. After a trial is registered, trialists are expected to regularly update the trial status or
other aspects as the case may be. After a trial is registered, all updates and changes will be recorded
and available for public display.

38. Ans (a)

39. Ans (d)

Explanation:
 Tax Expenditures, as the word might indicate, does not relate to the expenditures incurred by the
Government in the collection of taxes. Rather it refers to the opportunity cost of taxing at
concessional rates, or the opportunity cost of giving exemptions, deductions, rebates, deferrals
credits etc. to the tax payers. Tax expenditures indicate how much more revenue could have been
collected by the Government if not for such measures. In other words, it shows the extent of
indirect subsidy enjoyed by the tax payers in the country.
 Tax expenditures or the revenue forgone are sanctioned in the tax laws. A statement of the same,
(as far as Federal / Union / Central Government is concerned) is presented to the Parliament at
the time of Union Budget by way of a separate budget document titled “Statement of Revenue
Foregone”. It lists the revenue impact of tax incentives or tax subsidies that are part of the tax
system of the Central Government. This document also estimates the revenue to be foregone
during the proposed financial year on the basis of the revenue foregone figures of the previous
financial year.

40. Ans (c)

Explanation:
The Project Monitoring Group (PMG) was set up in 2013 under Cabinet Secretariat. It is an
institutional mechanism for resolving a variety of issues including fast tracking the approvals for
setting up and expeditious commissioning of large Public, Private and Public–Private Partnership (PPP)
Projects. PMG is now functioning under Prime Minister’s Office (PMO) since 14.09.2015.
Please refer the link
http://www.pmindia.gov.in/en/role-of-project-monitoring-group-pmg/

41. Ans (c)

Explanation:
 The conference was organized by National Green Tribunal and held at New Delhi.
 UNEP, Ministry of Environment, Forest and Climate Change (MOEF & CC), Ministry of Water
Resources,
 Asian Development Bank and the Delhi Pollution Control Board are the Sponsors of the
Conference.

42. Ans (a)

 SHANKAR IAS ACADEMY
43. Ans (a)
Explanation:
MFIN is a primary representative body and the Self-Regulatory Organization (SRO) for Non Banking
Finance Companies (NBFC) Microfinance Institutions (MFIs) regulated by the Reserve Bank of India
(RBI).MFIN was created to promote the key objectives of microfinance, which is to help economically
underserved communities achieve greater financial independence and build sustainable livelihoods.
MFIN seeks to work closely with regulators and other key stakeholders to achieve larger financial
inclusions goals through microfinance.

44. Ans (c)

Explanation:International Basava Convention
 Basavanna was a 12th-century social reformer, Kannada poet, philosopher, statesman who served
as the chief minister of Kalachuri dynasty ruled by King Bijjala.
 Recently Basava Jayanti was celebrated for the first time on his birth anniversary and digital
version of his work ―Vachanaǁ was released.
 Vachana is a prosaic form well known in the Kannada literature which propagates values of
universal brotherhood.
 Basavanna spread social awareness through his poetry and rejected gender or social
discrimination, superstitions and rituals.
 Basavanna founded ―Lingayatismǁ, a distinct shaivite religious tradition and spread by his
followers Sharanas.
 Lingyatism emphasizes on monism and bhakti (loving devotion) to Shiva and lingyats are also
called as Veerashaivas.
 Basava introduced a public institution called as ―AnubhavaMantapaǁ - hall of spiritual experience
that would facilitate men and women from all socio-economic backgrounds to have discussion on
various spiritual questions.

45. Ans (b)

46. Ans (a)

47. Ans (c)

48. Ans (a)

Explanation:
BHIM-Aadhaar, the merchant interface of the BHIM App, will pave the way for making digital
payments by using the Aadhaar platform. Any Indian citizen can pay digitally using their biometric
data like their thumb imprint on a merchants’ biometric enabled device which could be smart phone
having a biometric reader. Any citizen without access to smart phones, internet, debit or credit cards
will be able to transact digitally through the BHIM Aadhaar platform. Already, 27 major banks are now
on board with 7.15 lakh merchants so that they can start accepting payments using BHIM Aadhaar.

49. Ans (a)

Explanation:
The Bill assures free treatment for such persons if they are homeless or belong to Below Poverty Line,
even if they do not possess a BPL card.

50. Ans (b)

Explanation:
 The Department of Financial Services covers Banks, Insurance and Financial Services provided by
various government agencies and private corporations. It also covers pension reforms and
Industrial Finance and Micro, Small and Medium Enterprise. It started the Pradhan Mantri Jan
Dhan Yojana. PFRDA, Pension Fund Regulatory and Development Authority (PFRDA) is a statutory
body which also works under this department.
 The Department of Disinvestment has been renamed as Department of Investment and Public
Asset Management or 'DIPAM'. The department took up all the functions of the erstwhile ministry
which broadly was responsible for systematic policy approach to disinvestment and privatisation
of Public Sector Units (PSUs).
 SHANKAR IAS ACADEMY
51. Ans (a)
Explanation:
 Disabilities Bill - The recently passed Rights of Persons with Disabilities Act, 2016 mandates
adherence to standards of accessibility, transportation, information and communications,
including appropriate technologies and systems, and other facilities and services provided to the
public in urban and rural areas.
 The Act also mandates incorporation of Universal Design principles while designing new
infrastructure, electronic and digital media, consumer goods and services.
 It also sets timelines to ensure implementation of the above and punitive action in the event of
non-compliance.
 India signed the United Nations Convention on the Rights of Persons with Disabilities (UNCRPD)
and subsequently ratified the same on 1st October, 2007. The Convention came into effect on
3rd May 2008. Being a signatory to the Convention, India has an international obligation to comply
with the provisions of the Convention.

52. Ans (a)

Explanation:
 A parliamentary panel has recommended lifting of a ban on the trade in shahtoosh shawls, woven
from the fur of an endangered Tibetan antelope, to provide livelihood opportunities to many in
conflict-ridden Jammu and Kashmir.
 The shahtoosh trade was banned globally in 1975 under the Convention on International Trade in
Endangered Species (CITES) to which India is a signatory.
 The antelope is listed in Schedule I of the India’s Wildlife (Protection) Act, granting it the highest
level of protection.
 Shahtoosh, which literally means “king of wools” in Persian, is woven from the underfur of a chiru
and is considered one of the finest wools because it is light yet warm.
 The weaving of Shahtoosh is a skill that is traditionally unique to Kashmiris.

53. Ans (d)

Explanation:
 Increased ammonia is linked to fertilizers, livestock animal wastes, changes in atmospheric
chemistry and warming soils that retain less ammonia.
 The use of nitrogen fertilizers has grown worldwide, especially in those regions where they are
subsidised.
Issues
 Ammonia concentration in the atmosphere over India is the highest in the world due to cattle
population and excessive fertilizer use.
 Gaseous ammonia is a natural part of the Earth’s nitrogen cycle, but excessive ammonia is harmful
to plants.
 The harm caused by ammonia in water bodies is more serious, because it is toxic to aquatic
organisms.
 It can also lead to algal blooms and “dead zones” with dangerously low oxygen levels in oceans.
 Ammonia plays a role in the transportation and enhanced deposition of acidic pollutants -
resulting in acidification of ground and water bodies

54. Ans (b)

55. Ans (d)

Explanation:
Please refer the link
http://pib.nic.in/newsite/PrintRelease.aspx?relid=173105

56. Ans (b)

57. Ans (b)

 SHANKAR IAS ACADEMY
58. Ans (b)
Explanation:
 The EGA is a trade agreement being negotiated by 18 participants representing 46 members of
the WTO, focusing on reducing tariffs on products that benefit the environment.
 The WTO defines EG as a host of products that can help to achieve environmental and climate
protection goals.
 On 8 July 2014 participating WTO members released the 'Joint Statement Regarding the Launch of
the Environmental Goods Agreement Negotiations.'
 The Statement marked the start of negotiations on the goods to be included for tariff elimination.
 Once concluded, the EGA will also play a role in helping to implement the Paris Agreement on
climate change and the UN Sustainable Development Goals.
 Countries originally involved in the discussions are Australia, Canada, China, Costa Rica, Chinese
Taipei, Hong Kong, Japan, Korea, New Zealand, Norway, Switzerland, Singapore, and the US, and
the EU.
 Israel, Turkey and Iceland are recent entrants.

59. Ans (d)

Explanation:
The Islamic Military Alliance (IMA), officially the Islamic Military Alliance to Fight Terrorism (IMAFT), is
an alternative translation Islamic Military Counter Terrorism Coalition, is an intergovernmental
counter-terrorist alliance of countries in the Muslim world, united around military intervention against
ISIL and other counter-terrorist activities. Its creation was first announced by Mohammad bin Salman
Al Saud, Saudi Arabia's Minister of Defense, on 15 December 2015. The alliance was to have a joint
operations centre in Riyadh, Saudi Arabia.

60. Ans (d)

Explanation:
 The Commission allows commodity trading in 22 exchanges in India, of which 6 are national.
 On 28 September 2015 the FMC was merged with the Securities and Exchange Board of India
(SEBI)

61. Ans (c)

Explanation:
The Vienna Convention on Consular Relations of 1963 is an international treaty that defines a
framework for consular relations between independent states. A consul normally operates out of an
embassy in another country, and performs two functions:
 Protecting in the host country the interests of their countrymen, and
 Furthering the commercial and economic relations between the two states. While a consul is not a
diplomat, they work out of the same premises, and under this treaty they are afforded most of the
same privileges, including a variation of diplomatic immunity called consular immunity. The treaty
has been ratified by 179 states.

62. Ans (b)

Explanation:
 To make India an innovation-driven economy, NITI Aayog, Department of Industrial Policy &
Promotion (DIPP) and Confederation of Indian Industry (CII) together launched a mega initiative
“India Innovation Index” that will rank states on Innovations through country’s first online
innovation index portal that will capture data on innovation from all Indian states on innovation
and regularly update it in real time.
 The India Innovation Index Framework will be structured based on the best practices followed in
Global Innovation Index (GII) indicators and additionally by adding India-centric parameters those
truly reflect the Indian innovation ecosystem. This initiative will be the point of reference for all
international agencies to collect India’s up to date data points for global indices and analytic.

63. Ans (c)

Explanation
http://ficci.in/SPdocument/20563/Highlights_14thFinance_Commission_Report.pdf
 SHANKAR IAS ACADEMY
64. Ans (d)

65. Ans (a)

66. Ans (a)

Explanation:
 Some of the aims and objectives of Rail Development Authority are: pricing of services
commensurate with costs; enhancement of Non Fare Revenue; protection of consumer interests
by ensuring quality of service and cost optimization; competition, efficiency and economy; market
development; creation of positive environment of investment; benchmarking of service standards
against international norms; providing framework for non-discriminatory open access to
Dedicated Freight Corridor (DFC); absorption of new technologies for achieving efficiency and
performance standards; and human resource development to achieve any of its stated objectives.
Rail Development Authority’s envisaged functions pertain to the above aims and objectives.
 It is envisaged that RDA comprising a Chairman and three Members shall make recommendations
to Government for appropriate consideration/decision.

67. Ans (a)

Explanation:
 One of the leading budgeting technique followed in India at present is the outcome budgeting or
outcome based budgeting. It is practiced by most of the Ministries while preparing their budget
details and submitting it to the Ministry of Finance for the preparation of the annual budget
towards the end of February.
 Outcome based budgeting is a practice of suggesting and listing of estimated outcomes of each
programmes or schemes designed.
 Outcomes are the end products and results of various Government initiatives and interventions,
including those involving partnership with the State Governments, Public Sector Undertakings,
autonomous bodies and the community.
 An interesting feature of outcome based budgeting is that the outcomes of programmes are
measured not just in terms of Rupees but also in terms of physical units like Kilowatt of energy
produced or tonnes of steel produced. Also outcomes are expressed in terms of qualitative targets
and achievements to make the technique more comprehensive.

68. Ans (b)

Explanation:
Effective Revenue deficit is a new term introduced in the Union Budget 2011-12. In the Union Budget
(2011-12) a new methodology has been introduced to capture the 'effective revenue deficit', which
excludes those revenue expenditures (or transfers) in the form of grants for creation of capital assets.

69. Ans (b)

Explanation:
Refer- http://www.legalservicesindia.com/article/article/prospective-vs-retrospective-517-1.html

70. Ans (d)

Explanation:
 National Investment and Infrastructure Fund (NIIF) is a fund created by the Government of India
for enhancing infrastructure financing in the country. This is different from the National
Investment Fund.
 NIIF was proposed to be set up as a Trust, to raise debt to invest in the equity of infrastructure
finance companies such as Indian Rail Finance Corporation (IRFC) and National Housing Bank
(NHB). The idea is that these infrastructure finance companies can then leverage this extra equity,
manifold. In that sense, NIIF is a banker of the banker of the banker.
 NIIF is envisaged as a fund of funds with the ability to make direct investments as required. As a
fund of fund it may invest in other SEBI registered funds.
Please refer the link
 http://niifindia.in/about-us/
 SHANKAR IAS ACADEMY
71. Ans (b)
Explanation:
The Universal Immunization program consists of vaccination for 12 diseases- tuberculosis, diphtheria,
pertussis (whooping cough), tetanus, poliomyelitis, measles, Hepatitis B, Diarrhoea, Japanese
Encephalitis, rubella, Pneumonia(Heamophilus Influenza Type B)and Pneumococcal diseases
(Pneumococcal Pneumonia and Meningitis).

72. Ans (a)

73. Ans (b)

74. Ans (d)

Explanation:
 Particularly vulnerable tribal group is a sub category which consists of those tribes which are more
vulnerable and backward and need to be particularly protected.
 In 1960-61 Dhehbar Commission proposed such classification of scheduled tribes based on
existing inequalities among them. Later a sub category was created within scheduled tribes to
identify groups that were at lower level of development. The sub category was named “primitive
tribal group”.
Basic feature for “PTG” included:
 hunters and gatherers
 negative population growth
 extremely low level of literacy
In 2006 “PTG” renamed as PVTGs by govt. of India.
Characteristics:-
PVTGs are sensitive, reserved and shy peoples so they stay away from schools despite good facilities
provided by govt. they are mostly homogeneous with a small population. They want to be more
isolated and haveslow rate of change as compared to other tribal groups. They have very low literacy
rate due to absence of their own written language.
Social conditions:-
The cultural practices and other systems of social institutions have a lot of variations depending on the
group and locality. They are not only socially and economically backward than non-PVTGs inequalities
are also prevalent among PVTGs. e.g. some PVTGs are going forward with new agricultural practices
and some groups of PVTGs are still are hunters and gatherers.

75. Ans (b)

76. Ans (d)

77. Ans (a)

Explanation:
 With autonomous vehicles and robot-executed surgeries becoming commonplace around the
world, the Department of Science and Technology (DST) has initiated a Cyber Physical Systems
(CPS) programme. Still at a nascent stage, it has been conceived as aRs3,000-crore exercise that
would, at first, take root in some of the Indian Institutes of Technology (IITs), according to officials
familiar with the project.
 An initial budget ofRs100 crore has been earmarked for the project in the current financial year.

78. Ans (c)

79. Ans (b)

Explanation:
 The rate at which banks borrow money from the RBI by selling their surplus government securities
to RBI is known as "Repo Rate."
 SHANKAR IAS ACADEMY
 Statutory liquidity ratio (SLR) is the Indian government term for reserve requirement that the
commercial banks in India require to maintain in the form of gold, government approved
securities before providing credit to the customers.
 Marginal Standing Facility (MSF) rate refers to the rate at which the scheduled banks can borrow
funds overnight from RBI against government securities.

80. Ans (b)

Explanation:
 Austerity is defined as a set of economic policies a government undertakes to control public sector
debt. Austerity measures are the response of a government whose public debt is so large that the
risk of default, or the inability to service the required payments on its debt obligations, becomes a
real possibility.
 Austerity measures are reductions in government spending, increases in tax revenues or both.
These oftentimes harsh steps are taken to lower deficits and avoid a debt crisis. Governments are
unlikely to use austerity measures unless they are forced to by the bond market or other lenders.

81. Ans (a)

Explanation:
Core inflation represents the long run trend in the price level. In measuring long run inflation,
transitory price changes should be excluded. One way of accomplishing this is by excluding items
frequently subject to volatile prices, like food and energy.

82. Ans (d)

Explanation:
The bank will initially function as a non-banking financial company and a subsidiary of the Small
Industries Development Bank of India (SIDBI). Later, it will be made into a separate company.
However, it will not regulate Micro Finance institutions.
Please refer the link
https://www.mudra.org.in/AboutUs/Genesis

83. Ans (c)

Explanation:
A derivative is an instrument whose value is derived from the value of one or more underlying, which
can be commodities, precious metals, currency, bonds, stocks, stocks indices, etc. Four most common
examples of derivative instruments are Forwards, Futures, Options and Swaps.

84. Ans (b)

Explanation:
 Municipal bonds are bonds issued by urban local bodies- municipal bodies and municipal
corporate (entities owned by municipal bodies) to raise money for financing specific projects
specifically infrastructure projects. These bonds are attracting attention as the ULBs urgently need
money to finance infrastructural expenditure. Especially, smart cities and other urban
development projects necessitates them to create finance.
 Municipal bonds are there in India from 1997 onwards. Bangalore Municipal Corporation was the
first ULB to issue Municipal Bond in India in 1997. Ahmadabad made a notable issue in the next
years. But after the initial momentum, the ULBs were not able to get much progress on municipal
bond based fund mobilization. In 2015, SEBI made fresh guidelines for the issue of municipal
bonds for enabling the ULBs to mobilise money.
 SEBI Guidelines on municipal bonds: Which ULB can issue municipal bonds?
 As per the SEBI Regulations, 2015, a municipality or a Corporate Municipal Entity (CME) should
meet certain conditions:
 The ULB should not have negative net worth in any of three immediately preceding financial
years.
 Non-default: The municipality should not have defaulted in repayment of debt securities or loans
obtained from banks or financial institutions during the last 365 days.
 SHANKAR IAS ACADEMY
 Now wilful defaulter: The corporate municipal entity, its promoter, group company or director(s),
should not have been named in the list of the wilful defaulters published by the RBI or should not
have defaulted of payment of interest or repayment of principal amount in respect of debt
instruments issued by it to the public, if any.
 SEBI instructs that municipal bonds should have mandatory ratings above investment grade for
pubic issue. The bonds should have a three-year maturity period and financial institutions
including banks should be appointed as monetary agencies.
Tax status of Municipal Bonds
 Municipal bonds in India has tax-free status if they conform to certain rules and their interest
rates will be market-linked. Both pubic issue and private issue can be adopted for municipal
bonds.
 SEBI allowed urban local bodies to raise money through the issue of revenue bonds as well.
Municipal bonds where the funds raised are kept for one project are termed revenue bonds.
Servicing of these bonds can be made from revenue accrued from the project.

85. Ans (a)

Explanation:
 A follow-on public offer (FPO) is an issuing of shares to investors by a public company that is
already listed on an exchange. An FPO is essentially a stock issue of supplementary shares made
by a company that is already publicly listed and has gone through the IPO process.
 There are two main types of follow-on public offers. The first type is dilutive to investors, as the
company’s Board of Directors agrees to increase the share float level. This type of follow-on public
offering seeks to raise money to pay debt or expand the business. This increases the number of
shares outstanding.
 The other type of follow-on public offer is non-dilutive. This approach is used when directors or
large shareholders sell privately held shares. This is non-dilutive, as no additional shares are sold.
This method is commonly referred to as a secondary market offering. There is no benefit to this
method for the company or current shareholders.

86. Ans (b)

Explanation:
Participatory notes, also referred to as "P-notes," are financial instruments used by investors or hedge
funds that are registered with the Securities and Exchange Board of India (SEBI) to invest in Indian
securities. Any dividends or capital gains collected from the underlying securities go back to the
investors. Indian regulators are against participatory notes because they fear that hedge funds acting
through participatory notes will cause economic volatility in India's exchanges.

87. Ans (a)

Explanation:
Tax buoyancy is an indicator to measure efficiency and responsiveness of revenue mobilization in
response to growth in the Gross domestic product or National income. A tax is said to be buoyant if
the tax revenues increase more than proportionately in response to a rise in national income or
output.

88. Ans (c)

Explanation:
 A basic income is a periodic cash payment unconditionally delivered to all on an individual basis,
without means-test or work requirement.
That is, basic income has the following five characteristics:
 Periodic: it is paid at regular intervals (for example every month), not as a one-off grant.
 Cash payment: it is paid in an appropriate medium of exchange, allowing those who receive it to
decide what they spend it on. It is not, therefore, paid either in kind (such as food or services) or in
vouchers dedicated to a specific use.
 Individual: it is paid on an individual basis—and not, for instance, to households.
 Universal: it is paid to all, without means test.
 Unconditional: it is paid without a requirement to work or to demonstrate willingness-to-work.
 SHANKAR IAS ACADEMY
89. Ans (c)
Explanation:
Runaway Inflation- very rapid inflation, which is almost impossible to reduce.

90. Ans (a)

Explanation:
 There are several arrangements now with the RBI, for fighting the Non-Performing Assets (NPAs)
with the banking system. One such arrangement is the formation of Joint Lenders’ Forum which is
a body comprised of banks who have given loan to the concerned borrower entity.
 The Joint Lender’s Forum is a dedicated grouping of lender banks that is formed to speed up
decisions when an asset (loan) of more Rs 100 crore or more turns out to be a stressed asset. RBI
has issued guidelines for the formation of JLF in 2014 for the effective management of stressed
assets. Instructions for the formation of JLF is mentioned in the RBI guideline titled ‘Framework
for Revitalizing Distressed Economy’ (2014).

91. Ans (d)

92. Ans (a)

Explanation:
 A surcharge is a fee or other charge that is added to the cost of a good or service. A surcharge is
typically added to an existing tax, and may not be included in the stated price of a good or service.
 ‘Surcharge’ is an additional charge or tax levied on an existing tax. Unlike a cess, which is meant to
raise revenue for a temporary need, surcharge is usually permanent in nature. It is levied as a
percentage on the income tax payable as per normal rates. In case no tax is due for a financial
year, then no surcharge is levied. The revenue earned via surcharge is solely retained by the
Centre and, unlike other tax revenues, is not shared with States. Collections from surcharge flow
into the Consolidated Fund of India.

93. Ans (b)

Explanation:
The Macro-Economic Vulnerability index was introduced in Economic Survey 2014-15. It adds a
country’s fiscal deficit, current account deficit, and inflation. This index showed that in 2012 India was
the most vulnerable of the major emerging market countries. Since 2013, India’s index has improved
by 5.3 percentage points compared with 0.7 percentage point for China, 0.4 percentage points for all
countries in India’s investment grade.

94. Ans (a)

Explanation:
The professions of the people working in this industry are generally referred to as "gold collar"
professions since the services included in the sector focus on interpretation of existing or the new
ideas, evaluation of new technologies, and the creation of services. It is also one of the parts of the
tertiary sector, but it involves highly paid professionals, research scientists, and government officials.
The people are designated with high positions and powers, and those who make important decisions
that are especially far-reaching in the world around them often belong to this category.

95. Ans (d)

Explanation:
The following are the main functions of the RBI
1. Monetary authority
2. Regulator and supervisor of the financial system
3. Manger of forex
4. Issuer of currency
5. Developmental role
6. Related functions
Please refer the link
https://m.rbi.org.in/commonman/english/scripts/Organisation.aspx#MF
 SHANKAR IAS ACADEMY
96. Ans (c)
Explanation:
Minting of coins is under the purview of Ministry of Finance

97. Ans (c)

Explanation: The salient features of the IBC law are as follows:
 Clear, coherent and speedy process for early identification of financial distress and resolution of
companies and limited liability entities if the underlying business is found to be viable.
 Two distinct processes for resolution of individuals, namely- “Fresh Start” and “Insolvency
Resolution”.
 Debt Recovery Tribunal and National Company Law Tribunal to act as Adjudicating Authority and
deal with the cases related to insolvency, liquidation and bankruptcy process in respect of
individuals and unlimited partnership firms and in respect of companies and limited liabilities
entities respectively.
 Establishment of an Insolvency and Bankruptcy Board of India to exercise regulatory oversight
over insolvency professionals, insolvency professional agencies and information utilities.
 Insolvency professionals would handle the commercial aspects of insolvency resolution process.
Insolvency professional agencies will develop professional standards, code of ethics and be first
level regulator for insolvency professionals members leading to development of a competitive
industry for such professionals.
 Information utilities would collect, collate, authenticate and disseminate financial information to
be used in insolvency, liquidation and bankruptcy proceedings.
 Enabling provisions to deal with cross border insolvency.

98. Ans (c)

Explanation:
Increase in Import duty will reduce the amount of goods that is coming from the other countries
which will lead to reduce in supply.

99. Ans (a)

Explanation
Please refer the link
http://pib.nic.in/newsite/PrintRelease.aspx?relid=161741

100. Ans (c)

Explanation:
The Bill basically empowers the Reserve Bank of India (RBI) to give directions to banks to act against
loan defaulters. The Bill seeks to amend the Banking Regulation Act, 1949 by inserting provisions for
handling cases related to stressed assets. Stressed assets are loans on which the borrower has
defaulted or it has been restructured. The RBI may, from time to time, issue directions to banks for
resolution of stressed assets. The Central Government can authorize the RBI to issue directions to
banks for initiating proceedings in case of a default in loan repayment. These proceedings would be
under the Insolvency and Bankruptcy Code, 2016.