INSIGHTS REVISION TEST for Preliminary Exam 2018:

Test – 4
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InsightsIAS March 26, 2018

INSIGHTS REVISION TEST for Preliminary Exam 2018:

Test – 4

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INSIGHTS IAS REVISION PLAN FOR PRELIMS 2018 -

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Welcome to Insights IAS Revision Plan for UPSC Civil Services Preliminary Exam – 2018.

If you are wondering why these questions are posted, please refer to the detailed Timetable
provided HERE.

These questions serve TWO purposes: One to test your revision skills; Second is to give
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Question 1 of 25
1. Question
2 points
West Bengal has been awarded for the ‘Kanyashree Prakalpa‘ initiative that sought to
reduce the high child marriage rates and low female education rates in the state.
Which of the following schemes have more or less similar design and objectives?

Kishori Shakti Yojana (Government of India)

Bhagyalakshmi scheme (Karnataka)
Dhan Lakshmi scheme (Government of India)
Select the correct answer using codes below:

Correct
Solution: b)

Current Affairs – June 2017 (https://www.insightsonindia.com/wp-

content/uploads/2014/10/Insights-Daily-Current-Events-June-2017.pdf)

Here, conditional cash transfer is the mainstay of ‘Kanyashree Prakalpa‘ initiative.

Hence, other schemes should have the same design.

The broad objectives of the Kishori Shakti Yojana are to improve the nutritional,
health and development status of adolescent girls, promote awareness of health,
hygiene, nutrition and family care, link them to opportunities for learning life skills,
going back to school, help them gain a better understanding of their social
environment and take initiatives to become productive members of the society.

Other TWO schemes are similar to ‘Kanyashree Prakalpa‘

https://www.girlsnotbrides.org/wp-content/uploads/2016/12/Centre-for-Budget-and-
Policy-Studies-India-report.pdf

3/28
Incorrect
Solution: b)

Current Affairs – June 2017 (https://www.insightsonindia.com/wp-

content/uploads/2014/10/Insights-Daily-Current-Events-June-2017.pdf)

Here, conditional cash transfer is the mainstay of ‘Kanyashree Prakalpa‘ initiative.

Hence, other schemes should have the same design.

The broad objectives of the Kishori Shakti Yojana are to improve the nutritional,
health and development status of adolescent girls, promote awareness of health,
hygiene, nutrition and family care, link them to opportunities for learning life skills,
going back to school, help them gain a better understanding of their social
environment and take initiatives to become productive members of the society.

Other TWO schemes are similar to ‘Kanyashree Prakalpa‘

https://www.girlsnotbrides.org/wp-content/uploads/2016/12/Centre-for-Budget-and-
Policy-Studies-India-report.pdf

Question 2 of 25
2. Question
2 points
With reference to Employees’ Provident Fund (EPF) money, consider the following
statements:

The unclaimed money under EPF accounts is being used for medical benefits
of senior citizens who are PF subscribers
EPF money becomes unclaimed after a subscriber doesn’t withdraw money
after reaching 61 years of age
Which of the above statements is/are correct?

Correct
Solution: b)

Current Affairs – June 2017 (https://www.insightsonindia.com/wp-

content/uploads/2014/10/Insights-Daily-Current-Events-June-2017.pdf)

EPF money becomes unclaimed after a subscriber doesn’t withdraw money

after reaching 61 years of age. Accounts also become inoperative if persons
settling abroad do not withdraw their money within three years. The government had
framed a law last year wherein unclaimed money under EPF, Public Provident Fund
and small saving schemes such as post office savings accounts for a period of seven
years will be diverted to set up a senior citizens’ welfare fund. The trade unions had
strongly protested the move to divert EPF money for setting up a fund for the
elderly. Following this, it was decided that the unclaimed EPF money will be
diverted for EPF pensioners only.

Incorrect
4/28
Solution: b)

Current Affairs – June 2017 (https://www.insightsonindia.com/wp-

content/uploads/2014/10/Insights-Daily-Current-Events-June-2017.pdf)

EPF money becomes unclaimed after a subscriber doesn’t withdraw money

after reaching 61 years of age. Accounts also become inoperative if persons
settling abroad do not withdraw their money within three years. The government had
framed a law last year wherein unclaimed money under EPF, Public Provident Fund
and small saving schemes such as post office savings accounts for a period of seven
years will be diverted to set up a senior citizens’ welfare fund. The trade unions had
strongly protested the move to divert EPF money for setting up a fund for the
elderly. Following this, it was decided that the unclaimed EPF money will be
diverted for EPF pensioners only.

Question 3 of 25
3. Question
2 points
Which of the following researchers is/are beneficiaries of the VAJRA scheme
launched by the Department of Science and Technology (DST)?

Non-resident Indians
Persons of Indian origin
Overseas citizens of India
Foreign researchers
Select the correct answer using codes below:

Correct
Solution: d)

Current Affairs – June 2017 (https://www.insightsonindia.com/wp-

content/uploads/2014/10/Insights-Daily-Current-Events-June-2017.pdf)

The Science and Engineering Research Board (SERB), a Statutory body of the
Department of Science and Technology (DST) has recently launched a ‘Visiting
Advanced Joint Research (VAJRA) Faculty Scheme’ to connect the Indian academic
and research and development (R&D) systems to the best of global science and
scientists for a sustained international collaborative research. The scheme offers
adjunct / visiting faculty assignments to overseas scientists, faculty members and
R&D professionals including Non-resident Indians (NRI) and Overseas Citizen of
India (OCI) to undertake high quality collaborative research in cutting edge areas of
science and technology including interdisciplinary areas of priority such as energy,
water, health, security, nutrition, materials and manufacturing, etc. with one or more
Indian collaborators of public funded academic and research institutions of India.

The VAJRA Faculty should be an active researcher working in an overseas leading

academic / research / industrial organization with significant accomplishments in
R&D. The initial Faculty assignment is given for a period of one year extendable to
subsequent years based on the collaborative outcome and interest. The residency
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period of VAJRA Faculty in the host institution would be for a minimum of 1 month
and a maximum of 3 months every year. VAJRA Faculty is provided US Dollars
15000 in the first month of residence and US Dollars 10000 in each of the
subsequent month. Presently, call for applications is made open for prospective
researchers.

Incorrect
Solution: d)

Current Affairs – June 2017 (https://www.insightsonindia.com/wp-

content/uploads/2014/10/Insights-Daily-Current-Events-June-2017.pdf)

The Science and Engineering Research Board (SERB), a Statutory body of the
Department of Science and Technology (DST) has recently launched a ‘Visiting
Advanced Joint Research (VAJRA) Faculty Scheme’ to connect the Indian academic
and research and development (R&D) systems to the best of global science and
scientists for a sustained international collaborative research. The scheme offers
adjunct / visiting faculty assignments to overseas scientists, faculty members and
R&D professionals including Non-resident Indians (NRI) and Overseas Citizen of
India (OCI) to undertake high quality collaborative research in cutting edge areas of
science and technology including interdisciplinary areas of priority such as energy,
water, health, security, nutrition, materials and manufacturing, etc. with one or more
Indian collaborators of public funded academic and research institutions of India.

The VAJRA Faculty should be an active researcher working in an overseas leading

academic / research / industrial organization with significant accomplishments in
R&D. The initial Faculty assignment is given for a period of one year extendable to
subsequent years based on the collaborative outcome and interest. The residency
period of VAJRA Faculty in the host institution would be for a minimum of 1 month
and a maximum of 3 months every year. VAJRA Faculty is provided US Dollars
15000 in the first month of residence and US Dollars 10000 in each of the
subsequent month. Presently, call for applications is made open for prospective
researchers.

Question 4 of 25
4. Question
2 points
With reference to a new scheme “Tele-law” launched by the Government of India,
consider the following statements:

The scheme aims to enable marginalised sections to access court proceedings

through the Common Service Centre (CSC) network
A Para Legal Volunteer (PLV) will be made available at Common Service
Centre (CSC) to facilitate interaction between common and judges
Which of the above statements is/are correct?

Correct
Solution: d)

6/28
Current Affairs – June 2017 (https://www.insightsonindia.com/wp-
content/uploads/2014/10/Insights-Daily-Current-Events-June-2017.pdf)

In its effort to make legal aid easily accessible to the marginalized communities and
citizens living in rural areas, the Government of India has launched the ‘Tele-Law’

Under the scheme, a portal called ‘Tele-Law’ will be launched, which will be available
across the Common Service Centre (CSC) network. This will connect the citizens to
legal service providers with the help of technology enabled platforms.

A trained PLV will be available in a CSC for ten days in a month under the Scheme.
These PLVs will help the applicant connect with a lawyer through the video
conferencing facility at the CSC and will keep a track of the progress of the
applicants’ cases and grievances and maintain a record.

Statement 2 is wrong as it says ‘judges’

Incorrect
Solution: d)

Current Affairs – June 2017 (https://www.insightsonindia.com/wp-

content/uploads/2014/10/Insights-Daily-Current-Events-June-2017.pdf)

In its effort to make legal aid easily accessible to the marginalized communities and
citizens living in rural areas, the Government of India has launched the ‘Tele-Law’

Under the scheme, a portal called ‘Tele-Law’ will be launched, which will be available
across the Common Service Centre (CSC) network. This will connect the citizens to
legal service providers with the help of technology enabled platforms.

A trained PLV will be available in a CSC for ten days in a month under the Scheme.
These PLVs will help the applicant connect with a lawyer through the video
conferencing facility at the CSC and will keep a track of the progress of the
applicants’ cases and grievances and maintain a record.

Statement 2 is wrong as it says ‘judges’

Question 5 of 25
5. Question
2 points
Under the Banking Ombudsman Scheme

A customer can not complain against mis-selling and internet banking issues
A customer can complain against deficiencies arising out of sale of
insurance/mutual fund/other third party investment products by banks
Cooperative banks are exempt from complaints related to internet banking
Which of the above statements is/are correct?

Correct
Solution: b)

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Widening the scope of its Banking Ombudsman Scheme, the Reserve Bank of India
(RBI) has included complaints relating to mis-selling and mobile banking in its
purview. The amended Banking Ombudsman Scheme will come into force from July
1.

Key facts: The scheme now includes deficiencies arising out of sale of
insurance/mutual fund/other third party investment products by banks. Under the
amended Scheme, a customer would also be able to lodge a complaint against
the bank for its nonadherence to RBI instructions with regard to mobile
banking/ electronic banking services in India. The pecuniary jurisdiction of the
Banking Ombudsman to pass an Award has been increased from existing Rs 10 lakh
to to Rs 20 lakh. Compensation not exceeding Rs 1 lakh can also be awarded by to
the complainant for loss of time, expenses incurred as also, harassment and mental
anguish suffered by the complainant.

What is Banking Ombudsman?

Banking ombudsman is a quasi judicial authority, created to resolve customer

complaints against banks relating to certain services provided by them. The
Ombudsman is a senior official, who has been appointed by the Reserve Bank of
India to address grievances and complaints from customers, pertaining deficiencies
in banking services. It covers all kinds of banks including public sector banks,
Private banks, Rural banks as well as co-operative banks.

Incorrect
Solution: b)

Widening the scope of its Banking Ombudsman Scheme, the Reserve Bank of India
(RBI) has included complaints relating to mis-selling and mobile banking in its
purview. The amended Banking Ombudsman Scheme will come into force from July
1.

Key facts: The scheme now includes deficiencies arising out of sale of
insurance/mutual fund/other third party investment products by banks. Under the
amended Scheme, a customer would also be able to lodge a complaint against
the bank for its nonadherence to RBI instructions with regard to mobile
banking/ electronic banking services in India. The pecuniary jurisdiction of the
Banking Ombudsman to pass an Award has been increased from existing Rs 10 lakh
to to Rs 20 lakh. Compensation not exceeding Rs 1 lakh can also be awarded by to
the complainant for loss of time, expenses incurred as also, harassment and mental
anguish suffered by the complainant.

What is Banking Ombudsman?

Banking ombudsman is a quasi judicial authority, created to resolve customer

complaints against banks relating to certain services provided by them. The
Ombudsman is a senior official, who has been appointed by the Reserve Bank of

8/28
India to address grievances and complaints from customers, pertaining deficiencies
in banking services. It covers all kinds of banks including public sector banks,
Private banks, Rural banks as well as co-operative banks.

Question 6 of 25
6. Question
2 points
Indian society exhibits strong son “Meta” preference. What is the most
appropriate definition of the same?

Correct
Ans: C

The Economic survey mentions son meta preference based on the gender of the last
child. Indian families keep on having children till the desired number of children are
born. Also, the survey mentions that once the girls are born, they are taken care of in
terms of their participation in social indicators such as health and education.

Incorrect
Ans: C

The Economic survey mentions son meta preference based on the gender of the last
child. Indian families keep on having children till the desired number of children are
born. Also, the survey mentions that once the girls are born, they are taken care of in
terms of their participation in social indicators such as health and education.

Question 7 of 25
7. Question
2 points
With reference to the NASA’s Orion spacecraft, consider the following statements:

It seeks to provide humans safe re-entry from deep space return velocities
It will be able to travel to an asteroid or even Mars
Which of the above statements is/are correct?

Correct
Solution: c)

What Will Orion Do?

Orion will carry astronauts into deep space and then return them home to Earth.
Orion will be able to travel to an asteroid or even Mars.

NASA is developing a huge rocket called the Space Launch System, or SLS. This
rocket is a heavy-lift launch vehicle. Orion will launch on top of this rocket. The
heavy-lift launch vehicle will carry Orion beyond low Earth orbit, where the
International Space Station orbits, and far past the moon.

Orion has three main parts. The upper section is the launch abort system, or LAS;
the crew module is the middle part; and the service module is the lower portion of the
spacecraft. Astronauts will sit in the middle section, the crew module. This will be
9/28
their living quarters. If an emergency occurs during launch or the climb to orbit, the
LAS would activate in milliseconds. It would propel the crew module away from the
rocket to safety. The LAS looks like a tower on top of the crew module. Beneath the
crew module is the service module. It holds the power and propulsion systems. Solar
array panels on the service module will absorb sunlight to create electricity. This
power will allow the spacecraft to remain in orbit for months at a time.

Incorrect
Solution: c)

What Will Orion Do?

Orion will carry astronauts into deep space and then return them home to Earth.
Orion will be able to travel to an asteroid or even Mars.

NASA is developing a huge rocket called the Space Launch System, or SLS. This
rocket is a heavy-lift launch vehicle. Orion will launch on top of this rocket. The
heavy-lift launch vehicle will carry Orion beyond low Earth orbit, where the
International Space Station orbits, and far past the moon.

Orion has three main parts. The upper section is the launch abort system, or LAS;
the crew module is the middle part; and the service module is the lower portion of the
spacecraft. Astronauts will sit in the middle section, the crew module. This will be
their living quarters. If an emergency occurs during launch or the climb to orbit, the
LAS would activate in milliseconds. It would propel the crew module away from the
rocket to safety. The LAS looks like a tower on top of the crew module. Beneath the
crew module is the service module. It holds the power and propulsion systems. Solar
array panels on the service module will absorb sunlight to create electricity. This
power will allow the spacecraft to remain in orbit for months at a time.

Question 8 of 25
8. Question
2 points
As per the Survey, science and technology in India must include:

Investing in educating its youth in science and mathematics

Reforming the way R&D is conducted by engaging the private sector
Taking a more mission-driven approach in areas such as dark matter,
genomics, energy, agriculture and mathematics
Matching efforts directed at improving “ease of doing business” to the “ease of
doing science” index as well.
Which of the above statements is/are correct?

Correct
Ans: D

The survey stresses on the need to inculcate science and tech from school level
itself. Also it makes procedures and patent approach much simpler to promote ease
of doing science in India. It also calls for a mission mode approach towards areas of
disruptive technologies.
10/28
Incorrect
Ans: D

The survey stresses on the need to inculcate science and tech from school level
itself. Also it makes procedures and patent approach much simpler to promote ease
of doing science in India. It also calls for a mission mode approach towards areas of
disruptive technologies.

Question 9 of 25
9. Question
2 points
Consider the following with respect to urbanisation in India?

India’s urbanisation rate appears to have been similar to that in other countries.
Countries follow a pattern of urbanisation where the level of urbanisation has
increased with the per capita GDP.
A large part of the difference in the levels of urbanisation seen between India
and China can be mainly attributed to the different levels of development of
each country.
Identify the correct statements

Correct
Ans: C

Urbansiation is a feature of development. As countries develop the share of

agriculture gradually falls in contribution to GDP. China and India show relative
differences in urbanization due to GDP gap and their contribution gaps in areas such
as agriculture, manufacturing and service sector.

Incorrect
Ans: C

Urbansiation is a feature of development. As countries develop the share of

agriculture gradually falls in contribution to GDP. China and India show relative
differences in urbanization due to GDP gap and their contribution gaps in areas such
as agriculture, manufacturing and service sector.

Question 10 of 25
10. Question
2 points
What are common challenges for India in regaining competitiveness in Apparel
and Leather Sector?

Stringent Labour regulations.

Skewed taxation & tariff policies.
Poor logistics
Discrimination in export markets
Identify the correct statements

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Correct
Ans: C

All of them prove hindrances to the sector as they make it uncompetitive for India to
compete with other countries in textiles and apparel sector. These aspects make
products from China and other countries cheaper in world markets. Also, their mass
scale prevents India to capture a relatively larger share of the market.

Incorrect
Ans: C

All of them prove hindrances to the sector as they make it uncompetitive for India to
compete with other countries in textiles and apparel sector. These aspects make
products from China and other countries cheaper in world markets. Also, their mass
scale prevents India to capture a relatively larger share of the market.

Question 11 of 25
11. Question
2 points
Consider the following statements about India’s approach in dealing with 1991
crisis.
1. India approached the international bank for reconstruction and development
popularly known as IMF for loan to manage the crisis.
2. India came up with new economic policies which were based on the conditionality
of international institutions.
3. Conditionality of international institutions was not as a punishment but were
towards creating more competitive environment in the economy.
Select the correct ones.

Correct
Ans: B

International bank for reconstruction and development is the name of World Bank.
India started the process of LPG under new economic policy in 1991. Also, India did
not follow all conditions strictly and went for partial opening up of the Indian Economy
such as partial capital account convertibility and other factors such as peak rate of
tariffs for imports.

Incorrect
Ans: B

International bank for reconstruction and development is the name of World Bank.
India started the process of LPG under new economic policy in 1991. Also, India did
not follow all conditions strictly and went for partial opening up of the Indian Economy
such as partial capital account convertibility and other factors such as peak rate of
tariffs for imports.

Question 12 of 25
12. Question
12/28
2 points
Human Development Report published by UNDP compares countries based on
the educational levels of the people, their health status and per capita income.
Consider the following statements related to this.
1. In HDR Per Capita Income is calculated in dollars adjusted by purchasing power
for all countries so that it can be compared.
2. Nepal has half the per capita income of India, yet it is not far behind India in life
expectancy and literacy levels.
3. Health, education and skill indicators are used along with income as a measure of
development in HDI.
Select the correct statements using codes below.

Correct
Ans: A

HDI is an index prepared by UNDP. It adjusts per capita income based on purchasing
power parity and also defines development as choice and access to better health,
education and income opportunities. Skill development is not a factor in measuring
HDI.

Learning

The report was first launched in 1990 by the Pakistani Economist Mahbub ul Haq and
Indian Nobel laureate Amartya Sen. Its goal was to place people at the centre of the
development process in terms of economic debate, policy and advocacy. Scale is 0
to 1.

2016 HDI –‘ Human Development for Everyone’

India — score — 0.624

131th place in 188 countries

placed in medium human development category.

The Report includes 4 other indices

Inequality-adjusted HDI (IHDI)

It adjusts the Human Development Index (HDI) for inequality in distribution of

each dimension across the population.
no inequality –à HDI = IHDI
in case of inequalities à-the value of IHDI < HDI
Thus we can say IHDI is the actual level of human development (accounting for
this inequality), while the HDI can be viewed as an index of “potential” human
development (or the maximum level of HDI) that could be achieved if there was
no inequality.
Gender development index

It shows the loss in human development due to inequality between female and

13/28
 male achievements in these dimensions.
ranges —- 0( indicating equality between men & women) to 1(indicating that
women fare as poorly in comparison to their male counterparts as possible in
all measured dimensions)
(The other 2 indices are Gender inequality index and multi dimentional poverty
indexwhich will be covered in next tests)

Incorrect
Ans: A

HDI is an index prepared by UNDP. It adjusts per capita income based on purchasing
power parity and also defines development as choice and access to better health,
education and income opportunities. Skill development is not a factor in measuring
HDI.

Learning

The report was first launched in 1990 by the Pakistani Economist Mahbub ul Haq and
Indian Nobel laureate Amartya Sen. Its goal was to place people at the centre of the
development process in terms of economic debate, policy and advocacy. Scale is 0
to 1.

2016 HDI –‘ Human Development for Everyone’

India — score — 0.624

131th place in 188 countries

placed in medium human development category.

The Report includes 4 other indices

Inequality-adjusted HDI (IHDI)

It adjusts the Human Development Index (HDI) for inequality in distribution of

each dimension across the population.
no inequality –à HDI = IHDI
in case of inequalities à-the value of IHDI < HDI
Thus we can say IHDI is the actual level of human development (accounting for
this inequality), while the HDI can be viewed as an index of “potential” human
development (or the maximum level of HDI) that could be achieved if there was
no inequality.
Gender development index

It shows the loss in human development due to inequality between female and
male achievements in these dimensions.
ranges —- 0( indicating equality between men & women) to 1(indicating that
women fare as poorly in comparison to their male counterparts as possible in
all measured dimensions)
(The other 2 indices are Gender inequality index and multi dimentional poverty
indexwhich will be covered in next tests)
14/28
Question 13 of 25
13. Question
2 points
The economic justification of subsidies in agriculture is, at present, a hotly
debated question. Consider the following statements related to this.

A substantial amount of fertiliser subsidy also benefits the fertiliser industry, not
only farmers.
The subsidy largely benefits the farmers in the more prosperous regions.
Most farmers in India are very poor and they will not be able to afford the
required inputs without subsidies.
Select the correct statements using codes below.

Correct
Ans: D

Fertiliser DBT was recently introduced to address anomalies of allocation between

rich and poor farmers and also to curb regional off take in surplus regions. Further
neem coating was made compulsory to check for diversion and also make it more
durable and sustainable to use in farms.

Incorrect
Ans: D

Fertiliser DBT was recently introduced to address anomalies of allocation between

rich and poor farmers and also to curb regional off take in surplus regions. Further
neem coating was made compulsory to check for diversion and also make it more
durable and sustainable to use in farms.

Question 14 of 25
14. Question
2 points
Consider the following statements:

APEDA is statutory authority related to exports of agricultural products.

It functions under the aegis of Union Ministry of Commerce and Industry.
Correct
Ans: C

About APEDA

Established by the Government of India IN 1986 under the Agricultural and

Processed Food Products Export Development Authority Act,1985 (Hence it is
statutory body)
The Authority replaced the Processed Food Export Promotion Council
(PFEPC).
A Chairman, appointed by the Central Governme
Functions
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 Development of industries relating to the scheduled products for export by way
of providing financial assistance or otherwise for undertaking surveys and
feasibility studies, participation in enquiry capital through joint ventures and
other reliefs and subsidy schemes;
Registration of persons as exporters of the scheduled products on payment of
such fees as may be prescribed;
Fixing of standards and specifications for the scheduled products for the
purpose of exports;
Carrying out inspection of meat and meat products in slaughter houses,
processing plants, storage premises, conveyances or other places where such
products are kept or handled for the purpose of ensuring the quality of such
products;
Incorrect
Ans: C

About APEDA

Established by the Government of India IN 1986 under the Agricultural and

Processed Food Products Export Development Authority Act,1985 (Hence it is
statutory body)
The Authority replaced the Processed Food Export Promotion Council
(PFEPC).
A Chairman, appointed by the Central Governme
Functions
Development of industries relating to the scheduled products for export by way
of providing financial assistance or otherwise for undertaking surveys and
feasibility studies, participation in enquiry capital through joint ventures and
other reliefs and subsidy schemes;
Registration of persons as exporters of the scheduled products on payment of
such fees as may be prescribed;
Fixing of standards and specifications for the scheduled products for the
purpose of exports;
Carrying out inspection of meat and meat products in slaughter houses,
processing plants, storage premises, conveyances or other places where such
products are kept or handled for the purpose of ensuring the quality of such
products;
Question 15 of 25
15. Question
2 points
Consider the following statements:

National Payments Corporation of India was set up as a not-for-profit

organisation registered under section 25 of the Companies Act, 2013.
NPCI will function as the Bharat Bill Payment Central Unit (BBPCU) and
operate the Bharat Bill Payment System (BBPS).
Correct
Ans: C
16/28
National Payments Corporation of India

It is an umbrella organisation for operating retail payments and settlement

systems in India
initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA)
under the provisions of the Payment and Settlement Systems Act, 2007
The Company is focused on bringing innovations in the retail payment systems
through the use of technology for achieving greater efficiency in operations and
widening the reach of payment systems
Products developed — Immediate Payment Service (IMPS), National Financial
Switch (NFS), Cheque Truncation System (CTS), Unified Payments Interface
(UPI), RuPay Credit Card, National Common Mobility Card (NCMC), Bharat Bill
Payment System (BBPS) and National Electronic Toll Collection (NETC)
Incorrect
Ans: C

National Payments Corporation of India

It is an umbrella organisation for operating retail payments and settlement

systems in India
initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA)
under the provisions of the Payment and Settlement Systems Act, 2007
The Company is focused on bringing innovations in the retail payment systems
through the use of technology for achieving greater efficiency in operations and
widening the reach of payment systems
Products developed — Immediate Payment Service (IMPS), National Financial
Switch (NFS), Cheque Truncation System (CTS), Unified Payments Interface
(UPI), RuPay Credit Card, National Common Mobility Card (NCMC), Bharat Bill
Payment System (BBPS) and National Electronic Toll Collection (NETC)
Question 16 of 25
16. Question
2 points
Consider the following statements:

InvIT investments are not open for small and retail investors. The minimum
application size for InvIT units is ₹10 lakh
Two types of InvITs have been allowed- One, which invests in completed and
revenue generation infrastructure projects; Second- invest in completed or
under-construction projects
Correct
Ans: C

InvIT facilitates capital into the infrastructure sector by pooling small sums of money
from investors, helping infrastructure developers monetise their infrastructure assets
and complete projects that sometimes get stalled midway due to lack of funding.

InvITs are a first-of-their-kind really long-term instruments. At present, Government

Securities or G-secs are the only other instruments with such a long life
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SEBI introduced infrastructure investment trust (InvIT) regulations for infrastructure
projects

The minimum bid size is 10,000 units and in multiples of 5,000 units thereafter. At the
price band Rs 100-102, it comes out at Rs 10 lakh at lower price limit. Hence these
are not for small and retail investors

who can invest? — Any infrastructure finance company registered with the RBI as an
NBFC, scheduled commercial banks, international multilateral financial institutions,
familys trust that are not institutional investors, high net worth individuals, mutual
funds and FPIs, among others, can invest in the IPO. Institutional investors (qualified
institutional buyers) will be allotted not more than 75 per cent of the issue size, while
other bidders have a quota limit of 25 per cent

Incorrect
Ans: C

InvIT facilitates capital into the infrastructure sector by pooling small sums of money
from investors, helping infrastructure developers monetise their infrastructure assets
and complete projects that sometimes get stalled midway due to lack of funding.

InvITs are a first-of-their-kind really long-term instruments. At present, Government

Securities or G-secs are the only other instruments with such a long life

SEBI introduced infrastructure investment trust (InvIT) regulations for infrastructure

projects

The minimum bid size is 10,000 units and in multiples of 5,000 units thereafter. At the
price band Rs 100-102, it comes out at Rs 10 lakh at lower price limit. Hence these
are not for small and retail investors

who can invest? — Any infrastructure finance company registered with the RBI as an
NBFC, scheduled commercial banks, international multilateral financial institutions,
familys trust that are not institutional investors, high net worth individuals, mutual
funds and FPIs, among others, can invest in the IPO. Institutional investors (qualified
institutional buyers) will be allotted not more than 75 per cent of the issue size, while
other bidders have a quota limit of 25 per cent

Question 17 of 25
17. Question
2 points
Consider the following statements:

The CIPAM is nodal agency under the aegis of the Department of Industrial
Policy & Promotion (DIPP), Ministry of Commerce & Industry
India adopted process patents in the year 2005
Geographical Indicators are covered under intellectual property rights under the
Paris Convention for the Protection of Industrial Property.
Which of the above is/are correct:

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Correct
Ans: C

Product patent was introduced in India in 2005. Patents are under DIPP (Ministry of
commerce). Further patents and GIs are both covered under TRIPS in WTO.

CIPAM

A professional body under the aegis of Department of Industrial Policy and Promotion
(DIPP) which ensures focused action on issues related to IPRs and addresses the 7
identified objectives of the policy. CIPAM assists in simplifying and streamlining of IP
processes, apart from undertaking steps for furthering IPR awareness,
commercialization and enforcement.

Process patent vs product patents

process patent — patent is granted for a particular manufacturing process, and not
for the product itself. Any other person can produce the same product through some
other PROCESS, modifying the various parameters.

Hence there will be more than one producer for the same product because of
the possibility of different process for the manufacturing of the product.
Weakness is that it gives less protection for the inventor. There is high
tendency for competitors to reengineer the original invention by discovering a
new process with less strain and investment. Benefit of process patent regime
is that it reduces the element of monopoly.
product patent — it is an exclusive right given to the original inventor of a product.
This means that no other manufacturer can provide the same product through the
same or any other process.

The implication is that there will not be a competitor for the producer as it is the
product which is patented.
Product patent system gives higher level of protection to the inventor as there
will not be any other patent holder. TRIPs follow the product patent regime.
India’s 1970 Patent Act allowed only process patent before it was amended in 2005
to comply with WTO’s TRIPs provisions under which there is only product patents

GI Tag

Indications which identify a good as originating in the territory of a member, or a

region or a locality in that territory, where a given quality, reputation or
characteristic of the good is essentially attributable to its geographic origin.
In India, GI tag is governed by Geographical Indications of Goods (Registration
and Protection Act), 1999. This Act is administered by Controller General of
Patents, Designs and Trade Marks, who is also Registrar of Geographical
Indications.
GIs have been defined under Article 22(1) of the WTOAgreement on Trade-
Related Aspects of Intellectual Property Rights(TRIPS)
Recently (nov 2017) Banglar Rasogolla of West Bengal and Mamallapuram

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 stone sculptures of Tamil Nadu has been given GI tag
Incorrect
Ans: C

Product patent was introduced in India in 2005. Patents are under DIPP (Ministry of
commerce). Further patents and GIs are both covered under TRIPS in WTO.

CIPAM

A professional body under the aegis of Department of Industrial Policy and Promotion
(DIPP) which ensures focused action on issues related to IPRs and addresses the 7
identified objectives of the policy. CIPAM assists in simplifying and streamlining of IP
processes, apart from undertaking steps for furthering IPR awareness,
commercialization and enforcement.

Process patent vs product patents

process patent — patent is granted for a particular manufacturing process, and not
for the product itself. Any other person can produce the same product through some
other PROCESS, modifying the various parameters.

Hence there will be more than one producer for the same product because of
the possibility of different process for the manufacturing of the product.
Weakness is that it gives less protection for the inventor. There is high
tendency for competitors to reengineer the original invention by discovering a
new process with less strain and investment. Benefit of process patent regime
is that it reduces the element of monopoly.
product patent — it is an exclusive right given to the original inventor of a product.
This means that no other manufacturer can provide the same product through the
same or any other process.

The implication is that there will not be a competitor for the producer as it is the
product which is patented.
Product patent system gives higher level of protection to the inventor as there
will not be any other patent holder. TRIPs follow the product patent regime.
India’s 1970 Patent Act allowed only process patent before it was amended in 2005
to comply with WTO’s TRIPs provisions under which there is only product patents

GI Tag

Indications which identify a good as originating in the territory of a member, or a

region or a locality in that territory, where a given quality, reputation or
characteristic of the good is essentially attributable to its geographic origin.
In India, GI tag is governed by Geographical Indications of Goods (Registration
and Protection Act), 1999. This Act is administered by Controller General of
Patents, Designs and Trade Marks, who is also Registrar of Geographical
Indications.
GIs have been defined under Article 22(1) of the WTOAgreement on Trade-
Related Aspects of Intellectual Property Rights(TRIPS)

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 Recently (nov 2017) Banglar Rasogolla of West Bengal and Mamallapuram
stone sculptures of Tamil Nadu has been given GI tag
Question 18 of 25
18. Question
2 points
Which of the following statements is incorrect:

Correct
Ans: D

Shipping lanes are not always marked by navigational aids and thus sometimes
shipping lanes are marked as dangerous waters such as those frequented by
icebergs.

Incorrect
Ans: D

Shipping lanes are not always marked by navigational aids and thus sometimes
shipping lanes are marked as dangerous waters such as those frequented by
icebergs.

Question 19 of 25
19. Question
2 points
Consider the following statements:

India has emerged strong, exhibiting a high potential in terms of digital

payments and has been categorised under the “break out” segment among 60
countries, according to the Digital Evolution Index 2017.
The Fletcher School at Tufts University in partnership with Mastercard,
unveiled the Digital Evolution Index 2017.
The ‘break out’ segment refers to countries that have relatively lower absolute
levels of digital advancement, yet remain poised for growth and are attractive to
investors by virtue of their potential.
Which of the above statements is/are correct:

Correct
Ans: D

The Fletcher School at Tufts University in partnership with Mastercard, unveiled the
Digital Evolution Index 2017. The Index is a comprehensive research that tracks the
progress countries have made in developing their digital economies and integrating
connectivity into the lives of billions.

Incorrect
Ans: D

The Fletcher School at Tufts University in partnership with Mastercard, unveiled the
Digital Evolution Index 2017. The Index is a comprehensive research that tracks the
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progress countries have made in developing their digital economies and integrating
connectivity into the lives of billions.

Question 20 of 25
20. Question
2 points
What is the most appropriate definition of a social enterprise?

Correct
Ans: A

Social enterprise effects impact by marrying the social mission of a non-profit or

government program with the market-driven approach of a business. They apply
commercial strategies to help the poor though affordability, accessibility and
availability of products and services at the grass root level.

https://www.socialenterprise.org.uk/what-is-it-all-about))

Incorrect
Ans: A

Social enterprise effects impact by marrying the social mission of a non-profit or

government program with the market-driven approach of a business. They apply
commercial strategies to help the poor though affordability, accessibility and
availability of products and services at the grass root level.

https://www.socialenterprise.org.uk/what-is-it-all-about))

Question 21 of 25
21. Question
2 points
Consider the following statements about biofuels:

Second-generation biofuels, also known as advanced biofuels, are fuels that

can be manufactured from various types of biomass.
First-generation biofuelsare made from the sugarsand vegetable oils found in
arable crops, which can be easily extracted using conventional technology.
Which of the above is/are correct?

Correct
Ans: C

India has started biofuels blending programme and aims to reduce imports of oil by at
least 1 lakh crore through processing of biomass.

Bio fuels

According to UN, the term biofuel means “any liquid fuel made from plant material
that can be used as a substitute to petroleum-derived fuel”. International Energy
Agency further adds gaseous fuels from biomass based sources to biofuels (IEA,

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Bioenergy, 2016).

The main distinction between biofuels is the feedstock used and associated
conversion method.

1) First generation: These are the biofuels produced from conventional, well
established processes. These are generally made from sugars, grains, or seeds, i.e.
utilize only a specific (often edible) portion of the above-ground biomass produced by
a plant.

Pros: Mature technology, familiar feedstock, scalable production capabilities, cost

competitive to fossil fuels

Cons: Food vs fuel debate, feedstock price volatility, Low land use efficiency,
geographical limitations, modest net reduction in fossil fuel use and greenhouse gas
emissions with current processing methods.

2) Second generation: these are made from lignocellulosic biomass. This includes
either non-edible residues of food crop production (e.g. corn stalks or rice husks) or
non-edible whole plant biomass (e.g. grasses or trees grown specifically for energy)
These can be further classified based on conversion technology as biochemical and
thermochemical.

Pros: Surplus feedstock supply, less controversial, less dependence on geographical

location, suitable for developing agrarian countries with large population.

Cons: High capital cost, technological breakthroughs needed, development of high

biomass feedstocks to improve land use efficiency.

3) Third generation: Biofuels made using non-arable land, based on integrated

technologies that produce a feedstock as well as a fuel (or fuel precursor, such as
pure vegetable oil), and require the destruction of biomass. These are similar to the
2nd generation fuels but use lot less resources in generating feedstock. Algae is the
most promising feedstock candidate in this category which cannot be matched by any
other feedstock in terms of quantity or diversity

Pros: Only inputs to get feedstock is CO2 and water. Less controversial, versatile
array of products possible.

Cons: High capital costs, early research stage

4) Fourth Generation: these are made using non-arable land. These do not require
destruction of biomass to be converted to fuel. This technology aims at directly
converting available solar energy to fuel using inexhaustible, cheap and widely
available resources.

Pros: Only inputs to get feedstock is CO2 and water. Less controversial, versatile
array of products possible, least negative environmental impact

Cons: High capital costs, early research stage, long processing time. Slow yields

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Incorrect
Ans: C

India has started biofuels blending programme and aims to reduce imports of oil by at
least 1 lakh crore through processing of biomass.

Bio fuels

According to UN, the term biofuel means “any liquid fuel made from plant material
that can be used as a substitute to petroleum-derived fuel”. International Energy
Agency further adds gaseous fuels from biomass based sources to biofuels (IEA,
Bioenergy, 2016).

The main distinction between biofuels is the feedstock used and associated
conversion method.

1) First generation: These are the biofuels produced from conventional, well
established processes. These are generally made from sugars, grains, or seeds, i.e.
utilize only a specific (often edible) portion of the above-ground biomass produced by
a plant.

Pros: Mature technology, familiar feedstock, scalable production capabilities, cost

competitive to fossil fuels

Cons: Food vs fuel debate, feedstock price volatility, Low land use efficiency,
geographical limitations, modest net reduction in fossil fuel use and greenhouse gas
emissions with current processing methods.

2) Second generation: these are made from lignocellulosic biomass. This includes
either non-edible residues of food crop production (e.g. corn stalks or rice husks) or
non-edible whole plant biomass (e.g. grasses or trees grown specifically for energy)
These can be further classified based on conversion technology as biochemical and
thermochemical.

Pros: Surplus feedstock supply, less controversial, less dependence on geographical

location, suitable for developing agrarian countries with large population.

Cons: High capital cost, technological breakthroughs needed, development of high

biomass feedstocks to improve land use efficiency.

3) Third generation: Biofuels made using non-arable land, based on integrated

technologies that produce a feedstock as well as a fuel (or fuel precursor, such as
pure vegetable oil), and require the destruction of biomass. These are similar to the
2nd generation fuels but use lot less resources in generating feedstock. Algae is the
most promising feedstock candidate in this category which cannot be matched by any
other feedstock in terms of quantity or diversity

Pros: Only inputs to get feedstock is CO2 and water. Less controversial, versatile
array of products possible.

Cons: High capital costs, early research stage

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4) Fourth Generation: these are made using non-arable land. These do not require
destruction of biomass to be converted to fuel. This technology aims at directly
converting available solar energy to fuel using inexhaustible, cheap and widely
available resources.

Pros: Only inputs to get feedstock is CO2 and water. Less controversial, versatile
array of products possible, least negative environmental impact

Cons: High capital costs, early research stage, long processing time. Slow yields

Question 22 of 25
22. Question
2 points
which of the following is not one of the headwinds (Horsemen) mentioned by
the economic survey:

Correct
Ans: C

Headwinds mentioned by the economic survey are the backlash against globalization
which reduces exporting opportunities, the difficulties of transferring resources from
low productivity to higher productivity sectors (structural transformation), the
challenge of upgrading human capital to the demands of a technology-intensive
workplace, and coping with climate change-induced agricultural stress.

Incorrect
Ans: C

Headwinds mentioned by the economic survey are the backlash against globalization
which reduces exporting opportunities, the difficulties of transferring resources from
low productivity to higher productivity sectors (structural transformation), the
challenge of upgrading human capital to the demands of a technology-intensive
workplace, and coping with climate change-induced agricultural stress.

Question 23 of 25
23. Question
2 points
Consider the following facts about gratuity in India:

It is applicable after a minimum term of 5 years

It has been decided to enhance tax free gratuity limit to Rs.20 Lakhs
It is applicable for companies having ten or more employees
Which of the above statements is/are correct:

Correct
Ans: D

The Parliament has passed the Payment of Gratuity (Amendment) Bill which will
increase the ceiling of tax-free gratuity amount to Rs 20 lakh from Rs 10 lakh.
Further, this will allow the government to increase the gratuity ceiling from time to
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time without amending the law.

Gratuity

Gratuity is given by the employer to an employee for the services rendered by him. It
is usually paid at the time of retirement but it can be paid before provided certain
conditions are met. A person is eligible to receive gratuity only if he has completed at
least five years of service with an organisation. However, it can be paid before the
completion of five years at the death of an employee or if he has become disabled
due to accident or disease.

(Please refer the following link for the details

https://economictimes.indiatimes.com/wealth/invest/how-to-calculate-
gratuity/articleshow/61913387.cms

http://www.prsindia.org/billtrack/the-payment-of-gratuity-amendment-bill-2017-5002/ )

Incorrect
Ans: D

The Parliament has passed the Payment of Gratuity (Amendment) Bill which will
increase the ceiling of tax-free gratuity amount to Rs 20 lakh from Rs 10 lakh.
Further, this will allow the government to increase the gratuity ceiling from time to
time without amending the law.

Gratuity

Gratuity is given by the employer to an employee for the services rendered by him. It
is usually paid at the time of retirement but it can be paid before provided certain
conditions are met. A person is eligible to receive gratuity only if he has completed at
least five years of service with an organisation. However, it can be paid before the
completion of five years at the death of an employee or if he has become disabled
due to accident or disease.

(Please refer the following link for the details

https://economictimes.indiatimes.com/wealth/invest/how-to-calculate-
gratuity/articleshow/61913387.cms

http://www.prsindia.org/billtrack/the-payment-of-gratuity-amendment-bill-2017-5002/ )

Question 24 of 25
24. Question
2 points
Consider the following statements about FAME scheme:

It is a nodal scheme under NITI aayog

It is administered by the ministry of Heavy Industry
Recently it has concluded tenders for electric buses in 11 cities including
Bangalore and Hyderabad.
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Which of the above statements is/are correct:

Correct
Ans: B

Niti aayog has abandoned the policy concerning electric mobility. The government is
of the view that market will be enough to guide the adoption of electric vehicles in
India and there is no such needs to provide incentive.

FAME India Scheme

The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME)
India was launched in 2015 under the National Electric Mobility Mission
(NEMM) aims at promoting eco-friendly vehicles in the country.
It is being administered by the Heavy Industries Ministry.
objective — provide fiscal and monetary incentives for adoption and market
creation of both hybrid and electric technologies vehicles in the country.
ts mandate is to support hybrid or electric vehicles market development and its
manufacturing eco-system in country in order to achieve self-sustenance in
stipulated period.
Incorrect
Ans: B

Niti aayog has abandoned the policy concerning electric mobility. The government is
of the view that market will be enough to guide the adoption of electric vehicles in
India and there is no such needs to provide incentive.

FAME India Scheme

The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME)
India was launched in 2015 under the National Electric Mobility Mission
(NEMM) aims at promoting eco-friendly vehicles in the country.
It is being administered by the Heavy Industries Ministry.
objective — provide fiscal and monetary incentives for adoption and market
creation of both hybrid and electric technologies vehicles in the country.
ts mandate is to support hybrid or electric vehicles market development and its
manufacturing eco-system in country in order to achieve self-sustenance in
stipulated period.
Question 25 of 25
25. Question
2 points
Consider the following statements:

China is having a faster growth rate than India

India is having a perpetual decline in investment and savings
Which of the above is/are correct:

Correct
Ans: d
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 India recently overtook China in terms of GDP growth rates. The slowdown in
investments and savings is not perpetual but considerable in the last few years.
(https://www.livemint.com/Politics/9fx4v1xGMkvCk05WLP78GO/IMF-sees-India-
GDP-growth-at-74-in-2018-Chinas-at-68.html

World economic outlook India – 7.4% and china 6.8%)

Incorrect
Ans: d

India recently overtook China in terms of GDP growth rates. The slowdown in
investments and savings is not perpetual but considerable in the last few years.
(https://www.livemint.com/Politics/9fx4v1xGMkvCk05WLP78GO/IMF-sees-India-
GDP-growth-at-74-in-2018-Chinas-at-68.html

World economic outlook India – 7.4% and china 6.8%)

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