GS Test 05 (IN5505) Report: 797 USERS

Therefore, option (b) is the correct answer.
GS Test 05 (IN5505) Report Print this page
Question 2. + 2.0 - 0.66

Question 1. + 2.0 - 0.66 Consider the following statements with reference to the Fundamental Rights in India:
A government based on the ‘Rule of Law’ means: 1. They are qualified but not absolute in nature.
A. all individuals, including government officials, are accountable under the law 2. They are guaranteed as well as protected by the Constitution.
  B. the law is supreme and no authority is above it 3. They act as limitations on actions of the Executive but not the Legislature.
C. a set of laws as defined by the majority of the population How many of the above statements are correct?
D. equal application of law under all circumstances  A. Only one

Question Analytics  B. Only two
3194 USERS 2397 USERS 797 USERS 49.4 SECS
C. All three
ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME
D. None
76.51 SECS 0.0 SECS Question Analytics
 AVG. SOLVING TIME  FASTEST SOLVING TIME
Explanation : ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME
Rule of law: 57.83 SECS 0.0 SECS

The term ‘Rule of Law’ is nowhere defined in the Indian Constitution but this term is often used
by the Indian judiciary in their judgments. Rule of law as embodied in Article 14 of the Explanation :
Constitution of India has been declared by the Supreme Court as one of the basic features of the The Fundamental Rights are enshrined in Part III of the Constitution from Articles 12 to 35. The
Constitution so it cannot be amended even by the Constitutional Amendment. Fundamental Rights guaranteed by the Constitution are characterised by the following:
To simply understand the meaning of rule of law, it means that no man is above law and
also that every person is subject to the jurisdiction of ordinary courts of law irrespective of They are not absolute but qualified. The State can impose reasonable restrictions on them.
their position and rank. However, whether such restrictions are reasonable or not is to be decided by the courts. Thus, they
The term ‘rule of law’ originated from England and India has taken this concept in a strike a balance between the rights of the individual and those of the society as a whole, between
modified form. The concept of rule of law further requires that no person should be individual liberty and social control. So, statement 1 is correct.
subjected to harsh or arbitrary treatment. The word ‘law’ in rule of law means that whether They are different from other rights available to the citizens. While ordinary legal rights are
he is a man or a society, he must not be governed by a man or ruler but by law. In other protected and enforced by ordinary law, Fundamental Rights are protected and guaranteed by
words, as per Article 14 of the Indian Constitution rule of law means law of land. the Constitution of India. Ordinary rights may be changed by the Legislature by the ordinary
The rule of law does not assure the accountability of the individuals, including government process of law-making, but a Fundamental Right may only be changed by amending the
officials to the law. A law is a rule or set of rules that are set up by an authority or the society itself Constitution itself. Besides this, no organ of the government can act in a manner that violates
and are applied on a community or territory. them. So, statement 2 is correct.
Equality before the law, that is, equal subjection of all citizens (rich or poor, high or low, official They are guaranteed against the arbitrary actions of the executive as well as the legislative
or non-official) to the ordinary law of the land administered by the ordinary law courts is one of organs of the State. In other words, the State cannot act contrary to the Fundamental Rights and
the components of the Rule of Law.
cannot by its action legislative or otherwise curtail or take away the Fundamental Rights. So, Exclusive original jurisdiction of the Supreme Court extends to the disputes between different
statement 3 is not correct. units of the Indian federation, such as disputes between two or more States. So, point 2 is
correct.
So, only two of the above statements are correct.
Article 71 (1) declares that all doubts and disputes arising out of or in connection with the
Therefore, option (b) is the correct answer. election of a President or Vice President shall be inquired into and decided by the Supreme Court,
Relevance: Recently, the Madurai bench of the Madras High Court rejected the plea of an applicant for whose decision shall be final. So, point 3 is correct.
a gun licence, ruling that carrying arms is not a Fundamental Right. The Inter-State Water Disputes Act of 1956 has excluded Inter-State water disputes from the
original jurisdiction of the Supreme Court. So, point 4 is not correct.
Question 3. + 2.0 - 0.66 Further, this jurisdiction of the Supreme Court does not extend to the following: A dispute
arising out of any pre-Constitution treaty, agreement, covenant, engagement, sanad or other
Consider the following functions:
similar instrument, matters referred to the Finance Commission.
1. Enforcement of Fundamental Rights under Article 32
2. Dispute between two or more States So, only two of the above come under the exclusive original jurisdiction of the Supreme Court.
3. Disputes regarding the election of the President Therefore, option (b) is the correct answer.
4. Inter-State water disputes

Question 4. + 2.0 - 0.66
How many of the above come under the exclusive original jurisdiction of the Supreme Court?
The President of India can make regulations for the peace, progress and good government of which of
A. Only one
the following Union Territories?
 B. Only two
1. Andaman and Nicobar Islands
 C. Only three 2. National Capital Territory (NCT) of Delhi
D. All four 3. Lakshadweep
Question Analytics 4. Chandigarh
Select the correct answer using the code given below:
A. 1 and 4 only
60.26 SECS 0.0 SECS
B. 2 and 3 only
C. 2 and 4 only
Explanation :
  D. 1 and 3 only
The original jurisdiction of the Supreme Court means no other court can decide such disputes and
Question Analytics
the Supreme Court has the power to hear such disputes in the first instance, not by way of appeal. 2809 USERS 2311 USERS 498 USERS 34.1 SECS
Article 32 of the Constitution of India empowers the Supreme Court in regard to enforcement of ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME
the Fundamental Rights. These rights are guaranteed by the Supreme Court to every citizen of
57.17 SECS 0.0 SECS
India (Some rights are guaranteed also to the non-citizens/foreigners). Hence, the aggrieved
person can directly go to the Supreme Court for their enforcement. But, Article 226 also  AVG. SOLVING TIME  FASTEST SOLVING TIME
empowers the High Courts to issue directions or orders or writs for the enforcement of the Explanation :
Fundamental Rights and for any other purpose. So, point 1 is not correct.
In India, an Union Territory is administered by the President acting through an administrator  AVG. SOLVING TIME  FASTEST SOLVING TIME
appointed by him. An administrator of a Union Territory is an agent of the President and not head of
Explanation :
State like a Governor. The President can specify the designation of an administrator; it may be
Lieutenant Governor or Chief Commissioner or Administrator. The President can also appoint the Article 31B of the Constitution of India saves the acts and regulations included in the Ninth
Governor of a State as the administrator of an adjoining Union Territory. Schedule from being challenged and invalidated on the ground of contravention of any of the
Fundamental Rights. Thus, the scope of Article 31B is wider than Article 31A. Article 31B
According to Article 240 of the Constitution of India, the President can make regulations for the
immunises any law included in the Ninth Schedule from all the Fundamental Rights whether or
peace, progress and good government of the Andaman and Nicobar Islands, Lakshadweep,
not the law falls under any of the five categories specified in Article 31A.
Dadra and Nagar Haveli and Daman and Diu and Puducherry. So, points 1 and 3 are correct.
However, in I.R. Coelho case (2007), the Supreme Court ruled that there could not be any
The President of India cannot make regulations for the peace, progress and good government
blanket immunity from judicial review of laws included in the Ninth Schedule. The
of the National Capital Territory (NCT) of Delhi and Chandigarh. The NCT of Delhi has a
court held that judicial review is a ‘basic feature’ of the Constitution and it could not be
special constitutional status under Article 239AA of the Constitution of India. According to this
taken away by putting a law under the Ninth Schedule. So, statement 1 is not correct.
article, the NCT of Delhi is a Union Territory (UT) that has a Legislative Assembly and an elected
Article 31C, as inserted by the 25th Constitutional Amendment Act of 1971, contained the
government, but with limited powers and jurisdiction. The Legislative Assembly of the NCT of
following two provisions:
Delhi can make laws on all matters in the State List and the Concurrent List, except for public
No law that seeks to implement the socialistic directive principles specified in Article 39(b)
order, police and land. So, points 2 and 4 are not correct.
or (c) shall be void on the ground of contravention of the Fundamental Rights conferred
Therefore, option (d) is the correct answer. by Article 14 (equality before law and equal protection of laws) or Article 19 (protection
Relevance: Recently, the Government of National Capital Territory of Delhi (Amendment) Bill 2023 of six rights in respect of speech, assembly, movement, etc.). So, statement 2 is correct.
was passed by Parliament. No law containing a declaration that it is for giving effect to such policy shall be questioned
in any court on the ground that it does not give effect to such a policy.
In the Kesavananda Bharati case (1973), the Supreme Court declared the above second
Question 5. + 2.0 - 0.66
provision of Article 31C as unconstitutional and invalid on the ground that judicial review is
With reference to the Constitution of India, consider the following statements:
a basic feature of the Constitution and hence, cannot be taken away. However, the above
1. Acts included in the Ninth Schedule cannot be invalidated on the grounds of contravention of any of first provision of Article 31C was held to be constitutional and valid.
the Fundamental Rights.
Therefore, option (a) is the answer.
2. A law that seeks to implement Article 39(b) and (c) cannot be declared void for the violation of the
Fundamental Rights conferred by Article 14 or Article 19. Knowledge Box
Which of the statements given above is/are not correct? Article 31A saves five categories of laws from being challenged and invalidated on the ground of
contravention of the fundamental rights conferred by Article 14 (equality before law and equal
 A. 1 only
protection of laws) and Article 19 (protection of six rights in respect of speech, assembly, movement,
B. 2 only etc.). They are related to agricultural land reforms, industry and commerce and include the following:
 C. Both 1 and 2
Acquisition of estates and related rights by the State;
D. Neither 1 nor 2
Taking over the management of properties by the State;
Question Analytics Amalgamation of corporations;
Extinguishment or modification of rights of directors or shareholders of corporations; and
ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME (e) Extinguishment or modification of mining leases.
60.22 SECS 0.0 SECS
Relevance: Recently, the Kesavananda Bharati Case completed 50 years on 24th April, 2023. Other important changes made by the 44th Constitutional Amendment Act of 1978:
A Proclamation of Emergency can be issued only when the security of India or any part of its
Question 6. + 2.0 - 0.66
territory is threatened by war or external aggression or by armed rebellion. It replaced the
The 44th Constitutional Amendment Act of 1978 made changes to which of the following provisions of term "internal disturbance" with "armed rebellion". An Emergency can be proclaimed only
the Constitution of India? on the basis of written advice tendered to the President by the Cabinet.
1. Preamble A special provision to be made guaranteeing the right of the media to report freely and without
2. Fundamental Rights censorship the proceedings in Parliament and the State Legislatures.
All doubts and disputes arising out of or in connection with the election of a President or Vice-
3. Directive Principles of State Policy
President shall be inquired into and decided by the Supreme Court whose decision shall be
4. Fundamental Duties
final.
The President may require the Council of Ministers to reconsider its advice and the President
A. 1 and 2 only shall act in accordance with the advice tendered after such reconsideration.
B. 2, 3 and 4 only
  C. 2 and 3 only Question 7. + 2.0 - 0.66
D. 1, 3 and 4 only Consider the following rights:
Question Analytics 1. Right to information

2. Right to adequate means of livelihood for all citizens
ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME 3. Right to public assistance in cases of unemployment
60.71 SECS 0.0 SECS 4. Right to work
How many of the above are secured by the Directive Principles of State Policy of the Constitution of
India?
Explanation :
A. Only one
The 44th Constitutional Amendment Act of 1978 was introduced to undo some of the changes
B. Only two
introduced by the 42nd Constitutional Amendment Act, 1976 during the National Emergency.
Some of the significant provisions of the Act were:   C. Only three
Fundamental Rights: It removed the right to property protected under Articles 19(1)(f) D. All four
and 31(1), as a Fundamental Right and made it only a legal right under Article 300. So, Question Analytics
point 2 is correct. 2739 USERS 1519 USERS 1220 USERS 62.3 SECS
It added a new Directive Principles under Article 38 which requires the State to minimise
inequalities in income, status, facilities and opportunities. So, point 3 is correct.
It did not make any changes to the provisions related to the Preamble and Fundamental Duties. 57.2 SECS 0.0 SECS
So, points 1 and 4 are not correct.

Therefore, option (c) is the correct answer. Explanation :
Knowledge Box The Constitution of India in Part IV lays down certain Directive Principles of State Policy (DPSP),
which aims at ensuring socioeconomic justice to the people and establishing India as a Welfare State.
Though not justiciable, they are 'fundamental in the governance of the country' and it is the duty of the A Court of Record is a trial court or appellate court in which a record of the proceedings is captured
State to apply these principles in making laws. and preserved, for the possibility of appeal. These records are admitted to be of evidentiary value and
cannot be questioned when produced before any court. They are recognised as legal precedents and legal
The Supreme Court of India ruled in State of U.P. v Raj Narain (1975) that the Right to
references.
Information is implicit in the right to freedom of speech and expression explicitly guaranteed in
Article 19 of the Indian Constitution. So, point 1 is not correct. According to the Constitution of India, the Supreme Court and the High Courts are the courts
Article 39 (a) provides the right to an adequate means of livelihood to all the citizens. So, of record. This means that their acts and proceedings are recorded for perpetual memory and
point 2 is correct. testimony and their records are used with high authority and cannot be questioned. They also have
Article 41 and Article 42 deal with the right to work. Article 41 secures the right to work, to the power to punish for contempt of court. Both Supreme Court and High courts have the power
education and to public assistance in cases of unemployment, old age, sickness and disability. to record their acts and proceedings, and to punish for contempt of court as per Articles 129 and
Article 42 empowers the State to make provisions for securing just and humane conditions of 215 of the Constitution of India. So, points 1 and 2 are correct.
work and for maternity relief. So, points 3 and 4 are correct. The District Courts and the Lok Adalats are not courts of record as per the Constitution of
India. So, points 3 and 4 are not correct.
So, only three of the above are secured by the Directive Principles of State Policy of the
Constitution of India. Therefore, option (a) is the correct answer.
Therefore, option (c) is the correct answer. Relevance: The Supreme Court has recently ordered digitisation of all records of trial and civil courts.
Question 8. + 2.0 - 0.66 Question 9. + 2.0 - 0.66
As per the Constitution of India, which of the following are the ‘Courts of Records’? Consider the following statements with reference to the legislative powers of the Parliament:
1. Supreme Court 1. It has the powers to regulate the properties of Indian citizens held in other countries.
2. High Courts 2. The criminal law and procedure fall under the Union list of the Seventh Schedule of the Indian
3. District Courts Constitution.
4. Lok Adalats 3. A Constitutional Amendment with a special majority with or without ratification by the States is
required to transfer a subject from one list to another in the Seventh Schedule.
4. The power of Parliament to repeal an existing law is the same as enacting a law under the
 A. 1 and 2 only
Constitution.
B. 3 and 4 only How many of the above statements are correct?
 C. 1, 2 and 3 only
 A. Only one
D. 1, 2, 3 and 4
 B. Only two
Question Analytics
C. Only three
D. All four
Question Analytics
51.12 SECS 0.0 SECS

Explanation :
70.92 SECS 0.0 SECS

1. Prescribing residence as the condition for certain categories of employment under the State
Explanation : Government in a State
2. Restricting the application of Fundamental Rights to State police forces

The Parliament can make laws for the whole or any part of the territory of India. The territory
of India includes the States, the Union Territories, and any other area for the time being included 3. Prescribing punishment for the practice of untouchability and forced labour
in the territory of India. Select the correct answer using the code given below:
A State Legislature can make laws for the whole or any part of the state. The laws made by a State
A. 1 and 2 only
Legislature are not applicable outside the State, except when there is a sufficient nexus between
the State and the object.  B. 2 and 3 only
The Parliament alone can make ‘extraterritorial legislation’. Thus, the laws of the Parliament C. 1 and 3 only
are also applicable to Indian citizens and their property in any part of the world. So, statement 1  D. 1, 2 and 3
is correct.
Question Analytics
Both, the Parliament and State Legislature can make laws with respect to any of the matters 2280 USERS 513 USERS 1767 USERS 112.1 SECS
enumerated in the Concurrent List. This list has at present 52 subjects (originally 47 subjects)
like criminal law and procedure, civil procedure, marriage and divorce, population control and
family planning, electricity, labour welfare, economic and social planning, drugs, newspapers, 63.77 SECS 0.0 SECS
books and printing press and others. So, statement 2 is not correct.
Those provisions of the Constitution which are related to the federal structure of the polity can
Explanation :
be amended by a special majority of the Parliament and also with the consent of half of the
State Legislatures by a simple majority.
Article 35: It lays down that the power to make laws, to give effect to certain specified
The distribution of legislative powers between the Union and the states, and modifying any
Fundamental Rights, shall vest only in the Parliament and not in the State Legislatures. It contains
of the lists in the Seventh Schedule fall under this category. So, statement 3 is not correct.
following provisions:
Article 245 of the Constitution which gives Parliament the power to make laws also gives the
The Parliament shall have power to make laws with respect to the following matters:
legislative body the power to repeal them through the Repealing and Amending Act. For repealing
Prescribing residence as a condition for certain employment or appointments in a
an existing law, the power of Parliament is the same as enacting a law under the Constitution.
State or Union Territory or local authority or other authority (Article 16). So, point
For example, the Repealing and Amending (Amendment) Bill will pass through the same
1 is correct.
procedure as any other Bills. It will have to be cleared by both Houses of Parliament and
Empowering courts other than the Supreme Court and the High courts to issue
the President would give his assent to make it a law. So, statement 4 is correct. directions, orders and writs of all kinds for the enforcement of Fundamental Rights
So, only two of the above statements are correct. (Article 32).
Restricting or abrogating the application of Fundamental Rights to members of
armed forces, State police forces, etc. (Article 33). So, point 2 is correct.
Relevance: The Union Home Minister recently introduced the Bharatiya Nyaya Sanhita Bill, 2023, the
Indemnifying any government servant or any other person for any act done during the
Bharatiya Nagarik Suraksha Sanhita Bill, 2023 and the Bharatiya Sakshya Bill, 2023 to replace the
operation of martial law in any area (Article 34).
Indian Penal Code, the Criminal Procedure Code and the Indian Evidence Act respectively.
Parliament shall have powers to make laws for prescribing punishment for those acts that
are declared to be offences under the Fundamental Rights. These include the following:
Question 10. + 2.0 - 0.66 Untouchability (Article 17)
Which of the following powers are exclusive to the Parliament and are not available to the State Traffic in human beings and forced labour (Article 23). So, point 3 is correct.
Legislatures?
Article 35 extends the competence of the Parliament to make a law on the matters specified Government. So, points 2, 3 and 4 are correct.
above, even though some of those matters may fall within the sphere of the State Legislature s
So, only three of the above matters fall under the residuary powers of the Central Government.
(i.e., State List).
Therefore, option (c) is the correct answer.
Therefore, option (d) is the correct answer.
Knowledge Box:
Question 11. + 2.0 - 0.66 The residuary power of taxation (that is, the power to impose taxes not enumerated in any of the
Consider the following: three lists) is vested in the Parliament. Under this provision, the Parliament has imposed gift tax,
1. Betting and gambling wealth tax and expenditure tax.
2. Space exploration
Relevance: Recently, the Union Ministry of Power asked the State Governments not to impose
3. Cyber law taxes/duties on the generation of electricity, as the residuary powers lie with the Central Government.
4. E-commerce
How many of the above matters fall under the residuary powers of the Central Government? Question 12. + 2.0 - 0.66
With reference to the appellate jurisdiction of the Supreme Court of India, consider the following
A. Only one
statements:
B. Only two
1. A certification from a High Court is required in Constitutional cases involving a substantial question
  C. Only three
of law to file an appeal in the Supreme Court.
D. All four 2. The Special Leave to Appeal provision under Article 136 of the Constitution cannot be claimed as a
Question Analytics matter of right.
Which of the statements given above is/are correct?
A. 1 only
52.19 SECS 0.0 SECS
B. 2 only
 C. Both 1 and 2
Explanation :
D. Neither 1 nor 2
The Seventh Schedule of the Indian Constitution has three lists: Union list with 100 subjects, State Question Analytics
list with 61 subjects and Concurrent list with 52 subjects. 2074 USERS 1317 USERS 757 USERS 107.5 SECS
Residuary powers refer to the power of jurisdiction upon subjects that are not mentioned in the ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME
State or Concurrent list. 56.85 SECS 0.0 SECS
Article 248 of the Constitution states, “The Union Parliament has exclusive power to make any
law with respect to any matter not enumerated in the Concurrent List or the State List”. The Union
Government enjoys exclusive jurisdiction over such subjects. Explanation :
The subjects like betting and gambling and treasure trove are contained in the State List of the The Supreme Court is primarily a court of appeal and hears appeals against the judgements of the lower
Seventh Schedule. So, point 1 is not correct. courts. It enjoys a wide appellate jurisdiction which can be classified under four heads: (a) Appeals in
The subjects of space exploration, cyber law, e-commerce are not mentioned in any of the three
lists of the Seventh Schedule. Hence, they fall under the residuary powers of the Central
constitutional matters. (b) Appeals in civil matters. (c) Appeals in criminal matters. (d) Appeals by If rights are granted, then the State will determine a set of duties to protect and promote those
special leave. rights. However, rights do not entail duties which merely correlate with or correspond to those
rights. Rights are grounds of duties. Rights are the reasons for the duties to which they give rise.
In Constitutional cases, an appeal can be made to the Supreme Court against the judgement of
This does not mean that only rights give rise to duties.
a High Court if it certifies that the case involves a substantial question of law that requires the
A duty is an obligation that a person owes to another person. If a person violates his duty and
interpretation of the Constitution. Based on the certificate, the party in the case can appeal to the
infringes on another's right, he must bear the consequences of the violation. Every right entails a
Supreme Court on the ground that the question has been wrongly decided. So, statement 1 is
responsibility; every opportunity entails an obligation; and every possession entails a duty.
correct.
The Supreme Court of India defined right as follows in State of Rajasthan v Union of India; legal
The Supreme Court under Article 136 of the Constitution is authorised to grant in its discretion
rights are correlatives of legal duties and are defined as interests that the law protects by
special leave to appeal from any judgement in any matter passed by any court or tribunal in the
imposing corresponding duties on others.
country (except military tribunal and court martial). It is a discretionary power and hence, cannot
be claimed as a matter of right. The Supreme Court exercises this power sparingly and only in Therefore, option (b) is the correct answer.
cases where there is a substantial question of law, a gross violation of natural justice, a manifest
error of law, or a grave injustice involved. So, statement 2 is correct. Question 14. + 2.0 - 0.66
Therefore, option (c) is the correct answer. Consider the following statements:
1. The Central Government can issue directions to the State for the provision of facilities for instruction
Question 13. + 2.0 - 0.66 in the mother tongue in primary education.
Which one of the following best describes the relationship between Rights and Duties? 2. The Central Government can delegate its legislative powers to the States by passing a special
resolution in Parliament.
A. Duties are the result of entitlement of rights
3. The President of India can entrust any of the executive functions of the Central Government to a State
 B. Rights are correlatives of duties Government without the consent of that State.
C. While duties are limited, rights are absolute How many of the above statements are correct?
 D. While a right is a liberty, duty is a responsibility
 A. Only one
Question Analytics
B. Only two
 C. All three
D. None
55.69 SECS 0.0 SECS
Question Analytics
 AVG. SOLVING TIME  FASTEST SOLVING TIME 2134 USERS 607 USERS 1527 USERS 45.7 SECS
Explanation :
The concept of duties and rights: 61.14 SECS 0.0 SECS
In general, a duty is an obligation, while a right is a privilege. They may exist as a matter of morality or
law. For instance, a person may have a moral obligation not to injure another's feelings.
Explanation :
A duty is a reason for action that generally prescribes what we ought to do and what we ought not
do. Duties are closely associated with rights in liberal thought. In respect of matters on which both the Parliament and the State Legislatures have power of
legislation (i.e., the subjects enumerated in the Concurrent List), the executive power rests with
the States except when a Constitutional provision or a parliamentary law specifically confers it on How many of the above statements are correct?
the Centre.
A. Only one
Therefore, a law on a concurrent subject, though enacted by the Parliament, is to be
executed by the states except when the Constitution or the Parliament has directed   B. Only two
otherwise. C. All three

The Centre is empowered to give directions to the State for the provision of adequate facilities for D. None
instruction in the mother tongue at the primary stage of education to children belonging to
Question Analytics
linguistic minority groups in the State. So, statement 1 is correct.
The Centre cannot delegate its legislative powers to the states and a single State cannot request
the Parliament to make a law on a State subject. So, statement 2 is not correct. ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME
The Constitution makes a provision for the entrustment of the executive functions of the Centre to 58.38 SECS 0.0 SECS
a State without the consent of that State. But, in this case, the delegation is by the Parliament
and not by the President. So, statement 3 is not correct.
Explanation :
So, only one of the above statements is correct.
A State Legislature can impose a tax on the consumption or sale of electricity. But no tax can be
Therefore, option (a) is the correct answer.
imposed on the consumption or sale of electricity which is:
Knowledge Box:
o consumed by the Centre or sold to the Centre; or
The President may, with the consent of the State Government, entrust to that government any of o consumed in the construction, maintenance, or operation of any railway by the Centre or by the
the executive functions of the Centre. railway company concerned or sold to the Centre or the railway company for the same purpose. So,
Conversely, the Governor of a State may, with the consent of the Central Government, entrust to statement 1 is correct.
that government any of the executive functions of the state.
This mutual delegation of administrative functions may be conditional or unconditional. A State Legislature can impose a tax in respect of any water or electricity stored, generated,
A law made by the Parliament on the subject of the Union List can confer powers and impose consumed, distributed, or sold by any authority established by Parliament for regulating or
duties on a State or authorise the conferring of powers and imposition of duties by the Centre developing any inter-State river or river valley. But, such a law, to be effective, should be reserved
upon a State (irrespective of the consent of the State concerned). Notably, the same thing cannot for the President’s consideration and to receive his assent. So, statement 2 is not correct.
be done by the State Legislature . The property of the Centre is exempt from all taxes imposed by a State or any authority within
The mutual delegation of functions between the Centre and the State can take place either under a State like municipalities, district boards, panchayats and so on. But the Parliament is empowered
an agreement or by legislation. While the Centre can use both methods, State can use only the to remove this ban. So, statement 3 is correct.
first method.

Question 15. + 2.0 - 0.66 Knowledge Box
Consider the following statements with reference to the taxation powers of States:
The property and income of a State is exempted from Central taxation. Such income may be
1. States are not permitted to impose taxes on the consumption of electricity by railways located within
derived from sovereign functions or commercial functions. But the Centre can tax the
its boundaries.
commercial operations of a State if Parliament so provides.
2. States cannot impose any tax on water stored for developing any inter-State river or river valley.
3. The properties of the Central Government are exempt from taxation by the States and local bodies.
The Supreme Court, in an advisory opinion (1963), held that the immunity granted to a State in He should be a person from outside the state.
respect of Central taxation does not extend to the duties of customs or duties of excise. In other He should be a detached figure and not too intimately connected with the local politics of
words, the Centre can impose customs duty on goods imported or exported by a State, or an the state. So, statement 1 is correct.
excise duty on goods produced or manufactured by a state. He should be a person who has not taken too great a par politics generally and particularly
in the recent past.
It recommended the formation of a committee comprising the Prime Minister, the Home
Question 16. + 2.0 - 0.66
Minister, the Lok Sabha's speaker, and the concerned Chief Minister of the State to appoint
Which of the following recommendations were made by the Punchhi Commission report (2010) for Governors.
Centre- State relations? Governors should be given a fixed tenure of five years and their removal should not be at the
1. The Governor should be a person from outside the State and not too intimately connected with the will of the Government at the Centre.
local politics of the State. The procedure laid down for impeachment of the President, mutatis mutandis can be made
2. The Governor should be appointed for a fixed tenure of five years and removed from his position only applicable for impeachment of Governors as well. So, statement 2 is correct.
through the process of impeachment. The Governor should have the right to sanction prosecution of a State Minister against the advice
of the Council of Ministers if the Cabinet decision appears to the Governorto be motivated by
3. The Governor should always act on the advice of the Council of Ministers in case of the prosecution
bias in the face of overwhelming material. So, statement 3 is not correct.
of a State Minister.
The convention of Governors acting as Chancellors of Universities and holding other statutory
4. The convention of Governors acting as Chancellors of Universities should be done away with.
positions should be done away with. His role should be confined to the Constitutional provisions
Select the correct answer using the code given below: only. So, statement 4 is correct.
A. 1, 2 and 3 only Therefore, option (d) is the correct answer.

B. 2, 3 and 4 only Relevance: The Union Ministry of Home Affairs (MHA) has recently decided to seek the States'
C. 1 and 4 only comments on the Punchhi Commission's report on Centre-State relations and start the implementation
process.
 D. 1, 2 and 4 only
Question Analytics
1794 USERS 662 USERS 1132 USERS 4.9 SECS Question 17. + 2.0 - 0.66
With reference to the office of the Governor, consider the following statements:
1. S/he must be eligible to be elected to the Lok Sabha.
56.94 SECS 0.0 SECS
2. The oath of office to her/him is administered by the President of India.
3. S/he has no security of tenure.
Explanation :
4. During her/his term of office, s/he is immune from both civil and criminal proceedings.
The Punchhi Commission's report on Centre-State relations was submitted to the Central How many of the above statements are correct?
Government in 2010. It gave recommendations for improving the relationship between the
 A. Only one
Central Government and the states:
B. Only two
It stated that while selecting Governors, the Central Government should adopt the following strict
guidelines as recommended in the Sarkaria Commission report and follow its mandate in letter  C. Only three
and spirit: D. All four
He should be eminent in some walk of life.
Question Analytics
2892 USERS 599 USERS 2293 USERS 47.5 SECS Relevance: Recently, new Governors were appointed for various States by the President of India.

Question 18. + 2.0 - 0.66
60.45 SECS 0.0 SECS
With reference to the State Legislative Council, consider the following statements:
1. A Parliamentary Act for the creation of a Council is not deemed as an Amendment under Article 368
Explanation :
of the Constitution of India.
The Governor is the chief executive head of the State. But, like the President, he is a nominal executive 2. Its maximum strength is fixed at one-third of the total strength of the State Legislative Assembly.
head (titular or constitutional head). 3. One third of its total members are indirectly elected by the members of the State Legislative
Assembly.
Qualifications: The Constitution lays down only two qualifications for the appointment of a
person as a Governor. These are: How many of the above statements are correct?
He should be a citizen of India.
A. Only one
He should have completed the age of 35 years. So, statement 1 is not correct.
B. Only two
Additionally, two conventions have also developed in this regard over the years.
First, he should be an outsider, that is, he should not belong to the State where he is  C. All three
appointed, so that he is free from local politics. D. None
Second, while appointing the Governor, the President is required to consult the Chief
Question Analytics
Minister of the State concerned, so that the smooth functioning of the constitutional 1937 USERS 957 USERS 980 USERS 35.8 SECS
machinery in the State is ensured.
Oath of office: Before entering upon his office, the Governor has to make and subscribe to an oath
or affirmation. It is administered by the Chief Justice of the concerned State High Court and 61.32 SECS 0.0 SECS
in his absence, the senior-most judge of that court available. So, statement 2 is not correct.
Security of tenure: He is appointed by the President by warrant under his hand and seal. The term
Explanation :
of the Governor is prescribed as five years. However, this term of five years is subject to the
pleasure of the President. Legislative Council is the Upper House of a State Legislature just like Rajya Sabha of the Parliament.
Further, he can resign at any time by addressing a resignation letter to the President. The
Abolition or creation of Legislative Councils: The Parliament can abolish a Legislative Council
Supreme Court held that the pleasure of the President is not justifiable. He has no security
(where it already exists) or create it (where it does not exist), if the Legislative Assembly of the
of tenure. He may be removed by the President at any time. So, statement 3 is correct.
concerned State passes a resolution to that effect.
Privileges and immunities:
Such a specific resolution must be passed by the State Assembly by a special majority, that
He enjoys personal immunity from legal liability for his official acts. During his term of
is, a majority of the total membership of the Assembly and a majority of not less than two-
office, he is immune from any criminal proceedings, even in respect of his personal acts. He
thirds of the members of the Assembly present and voting.
cannot be arrested or imprisoned.
This Act of Parliament is not to be deemed as an Amendment of the Constitution for the
However, after giving two months’ notice, civil proceedings can be instituted against him
purposes of Article 368 and is passed like an ordinary piece of legislation (ie, by simple
during his term of office in respect of his personal acts. So, statement 4 is not correct.
majority). So, statement 1 is correct.
So, only one of the above statements is correct. Strength of Legislative Councils: The maximum strength of the Council is fixed at one-third of
the total strength of the Legislative Assembly and the minimum strength is fixed at 40. It means
that the size of the Council depends on the size of the assembly of the concerned State. So,  AVG. SOLVING TIME  FASTEST SOLVING TIME
statement 2 is correct. Explanation :
Manner of Election:
Article 20 of the Constitution of India grants protection against arbitrary and excessive punishment to an
1/3 are elected by the members of local bodies in the State like municipalities, district
accused person, whether citizen or foreigner or legal person like a company or a corporation.
boards, etc.
1/12 are elected by graduates of three years standing and residing within the State It contains three provisions in that direction:
1/12 are elected by teachers of three years standing in the State, not lower in standard than No person shall be convicted of any offence except for violation of a law in force at the
secondary school time of the commission of the act, nor subjected to a penalty greater than that prescribed by
1/3 are elected by the members of the Legislative Assembly of the State from amongst the law in force at the time of the commission of the act.
persons who are not members of the assembly. So, statement 3 is correct. No double jeopardy: No person shall be prosecuted and punished for the same offence
the remainder are nominated by the Governor from amongst persons who have a special more than once.
knowledge or practical experience of literature. No self-incrimination: No person accused of any offence shall be compelled to be a witness
against himself.
So, all three of the above statements are correct.
Therefore, option (c) is the correct answer. Therefore, option (b) is the correct answer.
Knowledge Box Knowledge Box
Right to silence:
There is no uniformity in the organisation of State Legislatures. Most of the States have an
unicameral system, while others have a bicameral system. It emanates from Article 20(3) of the Indian Constitution, which states that no one can be
At present, only six States have two Houses (bicameral). These are Andhra Pradesh, compelled to be a witness against himself.
Telangana, Uttar Pradesh, Bihar, Maharashtra and Karnataka. The provision gives an accused the right against self-incrimination -- a fundamental canon of
law.
Relevance: Proposals to create legislative councils in Odisha, West Bengal, Rajasthan and Assam are
under examination of the Union Government. Relevance: Recently, the Supreme Court of India observed that an accused has the right to silence if
compelled to make self-incrimination evidence under Article 20(3) of the Indian Constitution.
Question 19. + 2.0 - 0.66

Question 20. + 2.0 - 0.66
The power to prosecute and punish a person for the same offence more than once violates which one of
the following? Consider the following statements with reference to the procedure for the transfer of High Court judges:
1. Consent of the concerned Judge is not required for her/his transfer from one High Court to another.
A. Article 14
2. The Chief Justice of India is required to consult the Chief Justice of the two High Courts, one from
 B. Article 20
which the judge is being transferred and the other receiving the judge.
C. Article 21
3. Once the President approves the transfer, the Central Government has to issue the notification within
 D. Article 22 30 days to effect the transfer.
Question Analytics How many of the above statements are correct?
A. Only one
 B. Only two
54.61 SECS 0.0 SECS
C. All three Constitution makes no provision for appointment of a distinguished jurist as a judge of a High
Court.
D. None
Question Analytics Relevance: Recently, the Supreme Court collegium has recommended transfers of twenty four High
Court judges.
57.79 SECS 0.0 SECS Question 21. + 2.0 - 0.66
With reference to changing the names of districts in India, consider the following statements:
1. The approval of the State Cabinet is first required to change the name of any district.
Explanation :
2. The proposal to change the name of the district is sent by the Governor of the State to the Union
Article 222 of the Constitution of India makes provision for the transfer of a Judge (including Chief
Cabinet.
Justice) from one High Court to any other High Court. The initiation of the proposal for the transfer of a
3. The final authority to decide upon changing the name of the district is the Union Cabinet.
Judge should be made by the Chief Justice of India (CJI) whose opinion in this regard is determinative.
How many of the above statements are correct?
Consent of a Judge for his first or subsequent transfer is not be required. All transfers are to be
made in public interest i.e. for promoting better administration of justice throughout the country.  A. Only one
So, statement 1 is correct. B. Only two

After the recommendation of a transfer is received from the CJI, the Union Minister of Law and C. All three
Justice would submit the recommendation along with relevant papers to the Prime Minister who
D. None
will then advise the President as to the transfer of the Judge concerned.
Question Analytics
In the Third Judges case (1998), the Supreme Court opined that in case of the transfer of High
Court judges, the Chief Justice of India should consult, in addition to the collegium of four
seniormost judges of the Supreme Court, the Chief Justices of the two High Courts (one from ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME
which the judge is being transferred and the other receiving him). Thus, the sole opinion of the
50.02 SECS 0.0 SECS
Chief Justice of India does not constitute the ‘consultation’ process. So, statement 2 is correct.
No timeline has been prescribed in the Memorandum of Procedure (MoP) for transfer of judges
from one High Court to another. So, statement 3 is not correct. Explanation :
Creation of new districts:

Therefore, option (b) is the correct answer. The power to create new districts or alter or abolish existing districts rests with the State
Knowledge Box: Governments.

This can either be done through an executive order or by passing a law in the State Assembly.
A person to be appointed as a judge of a High Court, should have the following qualifications:
Many States prefer the executive route by simply issuing a notification in the official gazette.
He should be a citizen of India.

Changing the name of a district:
He should have held a judicial office in the territory of India for ten years; or
He should have been an advocate of a High Court (or) high courts in succession) for ten years. Step 1: An appeal to change the name of a district is made by the people of that district or the
From the above, it is clear that the Constitution has not prescribed a minimum age for public representatives of the district.
appointment as a judge of a High Court. Moreover, unlike in the case of the Supreme Court, the Step 2: A resolution in this regard is passed by the State Legislative Assembly and sent to the
Governor. To change the name of any district or institution, the approval of the State Cabinet
is first required. So, statement 1 is correct. office earlier in any of the following three cases:
Step 3: The Governor sends the notification of change of name to the Ministry of Home Affairs if s/he ceases to be a member of the assembly;
(not Union Cabinet). So, statement 2 is not correct. if s/he resigns by writing to the Deputy Speaker; So, statement 2 is not correct.
Step 4: The Ministry of Home Affairs can accept or reject such a proposal. if approved, if s/he is removed by a resolution passed by a majority of all the then members of the
Step 5: The State Government issues a notification to change the name of the district or the Assembly. Such a resolution can be moved only after giving 14 days advance notice.
government publishes this decision in a gazette. So, statement 3 is not correct. The Speaker or the Deputy Speaker, when presiding over the house, does not vote in the first
Step 6: A copy of this is sent to the District Magistrate (DM) of the district concerned by official instance, but exercises only a casting vote in the case of a tie. So, statement 1 is correct.
post.
Step 7: On receipt of the notification, the DM informs officials of this change by writing to the
heads of all departments under him. There are 70 to 90 government departments in a district. Relevance: Recently, U.T. Khader was unanimously elected Speaker of Karnataka Legislative
Step 8: As soon as the information is received, the work of changing the name in the current Assembly.
documents of all these departments begins.

Question 23. + 2.0 - 0.66
Consider the following statements with reference to the Supreme Court:
1. Its power to issue writs originate from Article 32 of the Constitution of India.
2. It can issue writs for the enforcement of both Fundamental and Constitutional rights.
Question 22. + 2.0 - 0.66
3. It cannot reject a writ petition under any circumstances.
Consider the following statements with reference to the Speaker of a State Legislative Assembly:
1. When the Speaker is presiding over the House, s/he can only exercise a casting vote in case of a tie.
2. The Speaker can vacate his/her office anytime by addressing a resignation to the Governor of the   A. Only one
concerned State. B. Only two
Which of the statements given above is/are correct? C. All three
 A. 1 only D. None
B. 2 only Question Analytics

 C. Both 1 and 2
D. Neither 1 nor 2
Question Analytics 56.1 SECS 0.0 SECS

ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME Explanation :
56.23 SECS 0.0 SECS Writ jurisdiction
 AVG. SOLVING TIME  FASTEST SOLVING TIME The Supreme Court (under Article 32) and the High Courts (under Article 226) under the
Explanation : Constitution of India can issue writs of Habeas corpus, Mandamus, Prohibition, Certiorari, and
Quo-warranto. So, statement 1 is correct
The Speaker is elected by the Legislative Assembly of a State itself from amongst its members.
The Supreme Court can issue writs only for the enforcement of the Fundamental Rights and
Usually, the Speaker remains in office during the life of the Assembly. However, he vacates his
not for other purposes while the High Court can issue writs not only for the enforcement of the
Fundamental Rights but also for other purposes (Legal Rights). It means that the writ jurisdiction How many of the above statements are correct?
of the High Court is wider than that of the Supreme Court. So, statement 2 is not correct.
 A. Only one
The Supreme Court can issue writs against a person or Government throughout the territory
of India whereas a High Court can issue writs against a person residing or against a B. Only two
Government or authority located within its territorial jurisdiction only or outside its C. All three
territorial jurisdiction only if the cause of action arises within its territorial jurisdiction.  D. None
Thus, the Supreme Court's territorial jurisdiction for issuing writs is wider than that of a
Question Analytics
High Court.
Under Article 32, the Supreme Court can dismiss a writ petition. So, statement 3 is not correct.
The Supreme Court can dismiss a writ jurisdiction in the following circumstances: ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME
Non-filing of the writ in compliance with the court hierarchy: If a person files a writ 52.48 SECS 0.0 SECS
petition in the Apex Court and the court dismisses his writ, the individual cannot file the
writ petition again in another Court. But if a person files a writ petition in the high court
Explanation :
and the court refuses his petition, he has the right to appeal against the decision of the
Supreme Court under the principle of Natural Justice. In the Indian judiciary, review petitions are used to review the binding decision of the Supreme Court,
Principle of res judicata: It means that a subsequent suit cannot be filed on the same cause and the curative petition can be against the final order/judgment of the Supreme Court after the
of action and the same dispute by the parties to the suit. dismissal of the Review petition.
Misrepresentation of facts: If the petitioner is found to have committed a substantial
Article 137 of the Constitution of India empowers the Supreme Court to review any judgment
misrepresentation of key facts, the Supreme Court may dismiss the petition at any stage.
pronounced or order made by it (Subject to the provisions of any law made by Parliament or any
Inordinate delay: In the case of D. Gopinathan Pillai v. State Of Kerala & Anr (2007), the
rules made under Article 145). As per the Civil Procedure Code and the Supreme Court Rules,
Hon’ble Supreme Court held that inordinate delays cannot be accepted unless they are
any person aggrieved by a ruling can seek a review.
justified with reasonable, satisfactory, adequate, and suitable reason.
The concept of curative petition has been evolved by the Supreme Court in the landmark
Malicious petition: If the petition submitted to the Supreme Court is found to be malicious
case of Rupa Ashok Hurra vs. Ashok Hurra and Anr. (2002) to prevent abuse of process
or futile, the Supreme Court may dismiss it under Article 32. The Supreme Court rejected
as well as to cure miscarriage of justice. So, statement 1 is not correct.
the writ petition in Shoukat Hussain Guru vs State (Nct) Delhi & Anr (2008) because it
The Supreme Court has laid down specific conditions in order to entertain a curative petition. One
lacked any rational grounds for it to be issued.
of the conditions mandates the petitioner to establish a ground that there was a genuine
So, only one of the above statements is correct. violation of the principles of natural justice. Also, the grounds for filing Review petitions are
Therefore, option (a) is the correct answer. broader and not necessarily restricted only to the principles of natural justice. The grounds
specified for civil cases in the Code of Civil Procedure are as follows:
Relevance: Recently, a Supreme Court bench said that a petition under Article 32 cannot be maintained
Discovery of new and important matters of evidence.
to challenge the binding verdict of the apex court.
Mistakes or errors are apparent on the face of the record.
Any other sufficient reason. So, statement 2 is not correct.
Question 24. + 2.0 - 0.66
The Supreme Court rules, 1966 states that a review petition is to be filed within 30 days of the
Consider the following statements with reference to curative and review petitions in the Supreme Court: pronouncement of judgment or order and that the petition should be circulated without oral
1. They are provided under the Constitution of India. arguments to the same bench that delivered the judgment. But there is no such specific time limit
2. They both can be filed only for the violation of the principles of natural justice. for filing a Curative petition. So, statement 3 is not correct.
3. There is no time limit for their filing in the Supreme Court. So, none of the above statements are correct.
Therefore, option (d) is the correct answer. should not be used as suffixes or prefixes to the names of awardees. Otherwise, they should
forfeit the awards.
Question 25. + 2.0 - 0.66
Consider the following statements with reference to Article 18 of the Indian Constitution:
1. It prohibits a citizen of India from accepting any title from any foreign state. Question 26. + 2.0 - 0.66
2. A military or academic distinction does not amount to ‘titles’ within the meaning of Article 18. With reference to Article 15 of the Indian Constitution, consider the following statements:
3. A foreigner holding an office of profit under the State cannot accept any title from any foreign State 1. It prohibits discrimination on grounds only of religion, race, caste, sex and place of birth.
without the consent of the President of India.
2. Its protection is not available against private individuals under any circumstances.
Which of the statements given above are correct?
3. It allows the State to make provisions for free education of children.
A. 1 and 2 only How many of the above statements are correct?
B. 2 and 3 only
 A. Only one
C. 1 and 3 only
 B. Only two
  D. 1, 2 and 3
C. All three
Question Analytics
D. None
Question Analytics
ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME 2852 USERS 1444 USERS 1408 USERS 93.4 SECS
57.81 SECS 0.0 SECS

 AVG. SOLVING TIME  FASTEST SOLVING TIME 60.02 SECS 0.0 SECS
Explanation :
Article 18 abolishes titles and makes four provisions in that regard: Explanation :
It prohibits a citizen of India from accepting any title from any foreign state. So, statement 1 Article 15: Prohibition of discrimination on the grounds of religion, race, caste, sex or place of birth:
is correct.
The State shall not discriminate against any citizen on grounds only of religion, race, caste, sex,
It prohibits the State from conferring any title (except a military or academic distinction) on
place of birth or any of them. So, statement 1 is correct.
any body, whether a citizen or a foreigner. So, statement 2 is correct.
The two crucial words in this provision are ‘discrimination’ and ‘only’. The word
A foreigner holding any office of profit or trust under the State cannot accept any title from any
‘discrimination’ means ‘to make an adverse distinction with regard to’ or ‘to distinguish
foreign State without the consent of the President. So, statement 3 is correct.
unfavourably from others’. The use of the word ‘only’ connotes that discrimination on other
No citizen or foreigner holding any office of profit or trust under the State is to accept any
grounds is not prohibited.
present, emolument or office from or under any foreign State without the consent of the President.
The second provision of Article 15 says that no citizen shall, on grounds only of religion, race,
In 1996, the Supreme Court upheld the constitutional validity of the National Awards–
caste, sex, place of birth or any of them, be subject to any disability, liability, restriction or
Bharat Ratna, Padma Vibhushan, Padma Bhushan and Padma Sri. It ruled that these awards
condition with regard to
do not amount to ‘titles’ within the meaning of Article 18 that prohibits only hereditary
access to shops, public restaurants, hotels and places of public entertainment;
titles of nobility. Therefore, they are not violative of Article 18 as the theory of equality
It prohibits discrimination only by the State.
does not mandate that merit should not be recognised. However, it also ruled that they
the use of wells, tanks, bathing ghats, roads and places of public resort maintained wholly 54.74 SECS 0.0 SECS
or partly out of State funds or dedicated to the use of the general public,
This provision prohibits discrimination both by the State and private individuals.
Explanation :
So, statement 2 is not correct.
Exceptions to this general rule of non-discrimination: Directive Principles of State Policy (DPSP):
The State is permitted to make any special provision for women and children. For These are enumerated in Part IV of the Constitution from Articles 36 to 51. The framers of the
example, reservation of seats for women in local bodies or provision of free education for Constitution borrowed this idea from the Irish Constitution of 1937, which had taken it from the Spanish
children. As a part of this exception, a State can make provisions for the free education of Constitution. Dr. B.R. Ambedkar described these principles as ‘novel features’ of the Indian
the children. So, statement 3 is correct. Constitution.
So, only two of the above statements are correct. According to Article 51 of the DPSP, the State shall endeavour to promote international peace
Therefore, option (b) is the correct answer. and security; maintain just and honourable relations between nations; foster respect for
international law and treaty obligations in the dealings of organised peoples with one another; and
Knowledge Box
encourage settlement of international disputes by arbitration.
Other exceptions under Article 15:
India’s foreign policy is framed in such a way as to give effect to Article 51 which aims to
The State is permitted to make any special provision for the advancement of any socially and promote an international order based on humanity, peace, honourable relations, security etc.
educationally backward classes of citizens or for the Scheduled Castes and Scheduled Tribes. For example, India’s commitment to the Paris climate agreements; and the recent stance of
The State is empowered to make any special provision for the advancement of any socially and India in the ongoing Russia-Ukraine conflict, which favours the resolution of the issue
educationally backward classes of citizens or for the Scheduled Castes or the Scheduled Tribes through dialogue and diplomacy; the Non-Alignment Movement (NAM) and the
regarding their admission to educational institutions. International Solar Organization etc. These foreign policies are based on just and humane
The State is empowered to make any special provision for the advancement of any economically values and give effect to Article 51.
weaker sections of citizens.

Relevance: Recently, the Prime Minister of India emphasized the need for dialogue and diplomacy to
Question 27. + 2.0 - 0.66 resolve the conflict and expressed India's willingness to support efforts to bring an end to the conflict.
India's stand that the ongoing Russia-Ukraine conflict should be resolved through dialogue and
diplomacy, fulfills which one of its principles under the Constitution of India? Question 28. + 2.0 - 0.66
Which one of the following is correct with reference to the "Right to freedom of religion" enshrined in
A. Preamble
the Constitution of India?
  B. Directive Principles of State Policy
A minor student can refuse to attend religious worship with the consent of his/her guardian
C. Seventh Schedule   A.
in an educational institution recognised by the State.
D. Fundamental Duties B. A non-citizen is not entitled to profess, practice and propagate his/her religion.
Question Analytics C. It provides for non interference of the State in religious affairs.
D. It prohibits the State to levy any fee for the maintenance of a particular religion.
Question Analytics
61.65 SECS 0.0 SECS Consider the following statements with reference to the Directive Principles of State Policy (DPSPs):
 AVG. SOLVING TIME  FASTEST SOLVING TIME 1. They resemble the ‘Instrument of Instructions’ enumerated in the Government of India Act of
Explanation : 1935.
Article 25-28 of the Constitution of India provide Right to freedom of religion: 2. They are non-justiciable in nature.
3. They can be used by the courts to examine the constitutional validity of a law.
Article 25 of the Constitution of India says that all persons are equally entitled to 'freedom of
conscience' and the right to freely profess, practice and propagate religion. But, it does not
include the right to convert another person to one’s own religion. Forcible conversions impinge A. Only one
on the 'freedom of conscience'. Article 25 covers not only religious beliefs (doctrines) but also
B. Only two
religious practices (rituals).
  C. All three
Moreover, these rights are available to all persons - citizens as well as non-citizens.
However, these rights are subject to public order, morality, health and other provisions D. None
relating to Fundamental Rights. Question Analytics
Article 26 says that every religious denomination shall have rights to manage its own religious 2807 USERS 1807 USERS 1000 USERS 9.8 SECS
affairs. Article 25 guarantees rights of individuals, while Article 26 guarantees rights of religious
denominations. In other words, Article 26 protects collective freedom of religion. Like the rights
54.56 SECS 0.0 SECS
under Article 25, the rights under Article 26 are also subject to public order, morality and
health.  AVG. SOLVING TIME  FASTEST SOLVING TIME
Article 27 lays down that no person shall be compelled to pay any taxes for the promotion or Explanation :
maintenance of any particular religion or religious denomination. This provision prohibits only
The Directive Principles of State Policy (DPSP) are enumerated in Part IV of the Constitution from
the levy of a tax and not a fee. This is because the purpose of a fee is to control secular
Article 36 to Article 51.
administration of religious institutions and not to promote or maintain religion. Thus, a fee can be
levied on pilgrims to provide them with some special service or safety measures. Similarly, a The Directive Principles resemble the ‘Instrument of Instructions’ enumerated in the
fee can be levied on religious endowments for meeting the regulation expenditure. Government of India Act of 1935. In the words of Dr. B.R. Ambedkar, ‘the Directive Principles
Article 28 says no religious instruction shall be provided in any educational institution wholly are like the instrument of instructions, which were issued to the Governor-General and to the
maintained out of State funds. This provision shall not apply to an educational institution Governors of the colonies of India by the British Government under the Government of India Act
administered by the State but established under any endowment or trust, requiring imparting of 1935. So, statement 1 is correct.
of religious instruction. Though Directive principles are non-justiciable in nature, they help the courts in examining and
Further, no person attending any educational institution recognised by the State or determining the constitutional validity of a law. The Supreme Court has ruled many times that
receiving aid out of State funds shall be required to attend any religious instruction or in determining the constitutionality of any law if a court finds that the law in question seeks to
worship in that institution without his consent. In the case of a minor, the consent of his give effect to a Directive Principle, it may consider such law to be ‘reasonable’ in relation to
guardian is needed. Article 14 (equality before law) or Article 19 (six freedoms) and thus save such law from
unconstitutionality. So, statements 2 and 3 are correct.
The Constitution lays down certain Directive Principles of State Policy, which though not
Relevance: Recently, the minority bodies have held that a uniform civil code is not in tune with Article
justiciable, are 'fundamental in governance of the country', and it is the duty of the State to
25 of the Indian Constitution.
apply these principles in making laws. These lay down that the State shall strive to promote the
Question 29. + 2.0 - 0.66

welfare of people by securing and protecting as effectively as it may, a social order, in which Therefore, option (c) is the correct answer.
justice-social, economic and political-shall form in all institutions of national life.
Question 31. + 2.0 - 0.66

Consider the following laws:
1. Prevention of Insults to National Honour Act (1971)
Relevance: Recently, the Law Commission of India has asked for views and proposals from the public
regarding the Uniform Civil Code as stated under Article 44 of the Indian Constitution. 2. Protection of Civil Rights Act (1955)
3. Income Tax Act (1961)
Question 30. + 2.0 - 0.66 4. Wildlife (Protection) Act (1972)
Which one of the following Articles in the Indian Constitution permits the State to impose compulsory How many of the above laws have been enacted for the implementation of the Fundamental Duties in
service for public purposes? India?
 A. Article 16 A. Only one
B. Article 19  B. Only two
 C. Article 23  C. Only three
D. Article 24 D. All four
Question Analytics Question Analytics

2309 USERS 953 USERS 1356 USERS 14.0 SECS 2320 USERS 1041 USERS 1279 USERS 24.2 SECS
ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME
55.18 SECS 0.0 SECS 53.21 SECS 0.0 SECS
 AVG. SOLVING TIME  FASTEST SOLVING TIME  AVG. SOLVING TIME  FASTEST SOLVING TIME
Explanation : Explanation :
Article 23: Prohibition of Traffic in Human Beings and Forced Labour: The Verma Committee on Fundamental Duties of the Citizens (1999) identified the existence of legal
provisions for the implementation of some of the Fundamental Duties. They are mentioned below:
It prohibits traffic in human beings, begar (forced labour) and other similar forms of forced
labour. Any contravention of this provision shall be an offence punishable in accordance with law. The Prevention of Insults to National Honour Act (1971) prevents disrespect to the Constitution of
This right is available to both citizens and non-citizens. It protects the individual not only against India, the National Flag and the National Anthem. It is a Fundamental Duty to abide by the
the State but also against private persons. Constitution and respect its ideals and institutions, the National Flag and the National Anthem.
The term ‘forced labour’ means compelling a person to work against his will. The word So, point 1 is correct.
‘force’ includes not only physical or legal force but also force arising from the compulsion The Protection of Civil Rights Act (1955) provides for punishments for offences related to caste
of economic circumstances, that is, working for less than the minimum wage. discrimination. It is a Fundamental Duty to promote harmony and the spirit of common
Article 23 also provides for an exception to this provision. It permits the State to impose brotherhood amongst all the people of India transcending religious, linguistic and regional or
compulsory service for public purposes, as for example, military service or social service, for sectional diversities and to renounce practices derogatory to the dignity of women. So, point 2 is
which it is not bound to pay. However, in imposing such service, the State is not permitted to correct.
make any discrimination on grounds only of religion, race, caste or class. Income Tax Act (1961) however does not have a bearing on the Fundamental Duties as paying
taxes is not a Fundamental Duty according to the Constitution. So, point 3 is not correct.
The Wildlife (Protection) Act of 1972 prohibits trade in rare and endangered species. It is a ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME
Fundamental Duty to protect and improve the natural environment including forests, lakes, 57.0 SECS 0.0 SECS
rivers and wildlife and to have compassion for living creatures. So, point 4 is correct.
The Indian Penal Code (IPC) declares the imputations and assertions prejudicial to national
Explanation :
integration as punishable offences.
The Unlawful Activities (Prevention) Act of 1967 provides for the declaration of a communal The Fundamental Rights are a limitation on the powers of the Government, but the Directive Principles
organisation as an unlawful association. of the State Policy (DPSPs) are instructions to the Government for achieving a welfare State through
The Representation of People Act (1951) provides for the disqualification of members of the their policies.
Parliament or a State Legislature for indulging in corrupt practice, that is, soliciting votes on the
The justiciability of Fundamental Rights and non-justiciability of Directive Principles on the one
grounds of religion or promoting enmity between different sections of people on grounds of caste,
hand and the moral obligation of the State to implement Directive Principles (Article 37) on the
race, language, religion and so on.
other hand have led to a conflict between the two since the commencement of the Constitution.
The Forest (Conservation) Act of 1980 checks indiscriminate deforestation and diversion of forest
In the Champakam Dorairajan case (1951), the Supreme Court ruled that in case of any
land for nonforest purposes.
conflict between the Fundamental Rights and the Directive Principles, the former
The various criminal laws in force provide for punishments for encouraging enmity between
would prevail. It declared that the Directive Principles have to conform to and run as
different sections of people on grounds of language, race, place of birth, religion and so on.
subsidiary to the Fundamental Rights. But it also held that the Fundamental Rights could be
So, only three of the above laws have been enacted for the implementation of the Fundamental amended by the Parliament by enacting Constitutional Amendment Acts. As a result, the
Duties in India. Parliament made the First Amendment Act (1951), the Fourth Amendment Act (1955) and
Therefore, option (c) is the correct answer. the Seventeenth Amendment Act (1964) to implement some of the Directives. So,
statement 1 is correct.
The above situation underwent a major change in 1967 following the Supreme Court’s
Question 32. + 2.0 - 0.66
judgement in the Golaknath case (1967). In that case, the Supreme Court ruled that the
Consider the following statements:
Parliament cannot take away or abridge any of the Fundamental Rights, which are
1. In Champakam Dorairajan case (1951), the Supreme Court accepted the supremacy of the ‘sacrosanct’ in nature. In other words, the Court held that the Fundamental Rights cannot
Fundamental Rights (FRs) over the Directive Principles of State Policy (DPSPs). be amended for the implementation of the Directive Principles. So, statement 2 is not
2. In Golaknath case (1967), the Supreme Court upheld that the FRs can be amended for the correct.
implementation of the DPSPs. In the Minerva Mills case (1980), the Supreme Court held that ‘the Indian Constitution is
3. In Minerva Mills case (1980), the Supreme Court held that the balance between the DPSPs and FRs is founded on the bedrock of the balance between the Fundamental Rights and the Directive
an essential feature of the basic structure of the Constitution. Principles’. They together constitute the core of commitment to social revolution. They are like
two wheels of a chariot, one no less than the other. To give absolute primacy to one over the other
is to disturb the harmony of the Constitution. This harmony and balance between the two is an
A. 1 and 2 only essential feature of the Basic Structure of the Constitution. The goals set out by the Directive
B. 2 and 3 only Principles have to be achieved without the abrogation of the means provided by the Fundamental
Rights. So, statement 3 is correct.
  C. 1 and 3 only
D. 1, 2 and 3 Therefore, option (c) is the correct answer.
Question Analytics
With reference to the contempt of court, consider the following statements:

1. A High Court has jurisdiction over contempt of subordinate courts in the State. According to the Contempt of Courts Act of 1971, contempt of court may be civil or criminal.
2. A Nyaya Panchayat can impose a penalty for its contempt. Civil contempt means wilful disobedience to any judgement, order, writ or other process of a
court or wilful breach of an undertaking given to a court.
3. Contempt proceedings cannot be initiated by any court after one year from the date of alleged
Criminal contempt means the publication of any matter or doing an act which–(i) scandalises or
occurrence of the contempt.
lowers the authority of a court; or (ii) prejudices or interferes with the due course of a judicial
proceeding; or (iii) interferes or obstructs the administration of justice in any other manner.
A. Only one
  B. Only two Relevance: Recently, contempt proceedings were sought in the Supreme Court against the Uttar Pradesh
and Punjab Governments for appointing “acting” Directors-General of Police (DGPs) in “complete
C. All three
violation” of apex court orders since 2006.
D. None
Question Analytics
Question 34. + 2.0 - 0.66
Consider the following:
1. Vesting of sovereign power in matters of local importance with the States
50.33 SECS 0.0 SECS
2. Equal representation of the States in the Rajya Sabha
 AVG. SOLVING TIME  FASTEST SOLVING TIME 3. Written Constitution
Explanation : 4. Appointment of All-India Service officers in State Government cadres
Contempt of court: It is any behavior or wrongdoing that conflicts with or challenges the authority, How many of the above are the federal features of the Indian Constitution?
integrity, and superiority of the court. The expression ‘contempt of court’ has not been defined by the
  A. Only two
Constitution. However, the expression has been defined by the Contempt of Court Act of 1971. Some
major provisions of the Act are as follows: B. Only three
C. All four
The Contempt of Court Act, 1971, declares that every High Court shall have the same
jurisdiction, powers, and authority in respect of contempt of courts subordinate to it as it has and D. None
exercises in respect of contempt of itself. So, statement 1 is correct. Question Analytics

The Act states that nothing contained in this Act shall apply in relation to contempt of Nyaya 2628 USERS 1212 USERS 1416 USERS 26.6 SECS
Panchayats or other village courts, by whatever name known, for the administration of justice, ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME
established under any law. So, statement 2 is not correct.
60.04 SECS 0.0 SECS
According to Section 21 of the above Act, no court shall initiate any proceedings of
contempt, either on its own motion or otherwise, after the expiry of a period of one year  AVG. SOLVING TIME  FASTEST SOLVING TIME
from the date on which the contempt is alleged to have been committed. So, statement 3 is Explanation :
correct.
The Indian Constitution establishes a dual polity consisting the Union at the Centre and the States
So, only two of the above statements are correct. at the periphery. The Union Government deals with matters of national importance like defence,
Therefore, option (b) is the correct answer. foreign affairs, currency, communication and so on. The State Governments, on the other hand,
Knowledge Box look after the matters of regional and local importance like public order, agriculture, health,
local government and so on. It is a federal feature of the Constitution. So, point 1 is correct.
Civil vs Criminal Contempt
The States are given unequal representation in the Rajya Sabha on the basis of population. The judges of the Supreme Court are appointed by the President. The Chief Justice of India is appointed
Hence, the membership varies from 1 to 31, which is a unitary or non-federal feature. So, point 2 by the President after consultation with such judges of the Supreme Court and High Courts as he deems
is not correct. necessary. The other judges are appointed by the President after consultation with the Chief Justice and
The Constitution is not only a written document but also the lengthiest Constitution of the world. such other judges of the Supreme Court and the High Courts as he deems necessary.
At present, it consists of a Preamble, about 470 Articles (divided into 25 Parts) and 12 Schedules. Appointment of the judges of the Supreme Court:
It specifies the structure, organisation, powers and functions of both the Central and State
Governments and prescribes the limits within which they must operate. Thus, it avoids the In the Second Judges case (1993), the Supreme Court ruled that the recommendation tendered
misunderstandings and disagreements between the two. It is a federal feature of the Constitution. by the Chief Justice of India (CJI) is binding on the President in the matters of appointment of
So, point 3 is correct. the judges of the Supreme Court. The President can send back the recommendation for
In India, there are All-India Services (IAS, IPS, and IFS) which are common to both the Centre reconsideration, but if the CJI reiterates the recommendation then the President is bound by it. So,
and the States. The members of these services are recruited and trained by the Centre which also statement 1 is not correct.
possesses ultimate control over them. Thus, these services violate the principle of federalism As per the Memorandum of Procedure for judges appointment, after receipt of the final
under the Constitution. So, point 4 is not correct. recommendation of the Chief Justice of India, the Union Ministry of Law and Justice puts up
the recommendations to the Prime Minister who advises the President in the matter of
So, only two of the above are the federal features of the Indian Constitution. appointment of the Judges. So, statement 2 is correct.
Relevance: Recently, the Chief Justice of India stated that one of the missions of the Collegium is to
Question 35. + 2.0 - 0.66
ensure that the richness and diversity of India are represented.
With reference to the appointment of the judges of the Supreme Court, consider the following
statements:
Question 36. + 2.0 - 0.66
1. The recommendation by the Chief Justice of India (CJI) in the matters of appointment of the judges is
binding on the President of India and he cannot send it to CJI for his reconsideration.
When Legislatures of two or more States pass a resolution requesting the Parliament to enact a law on a
2. After receiving the final recommendation from the Union Ministry of Law and Justice, the Prime
matter in the State List, then such a law enacted by the Parliament:
Minister advises the President in the matter of appointment of the judges.
1. applies only to those States which have passed the resolution
2. can be amended by the concerned State Legislatures with the assent of the President of India
A. 1 only
 B. 2 only
 A. 1 only
 C. Both 1 and 2
B. 2 only
D. Neither 1 nor 2
C. Both 1 and 2
Question Analytics
2499 USERS 735 USERS 1764 USERS 35.6 SECS D. Neither 1 nor 2
Question Analytics
57.6 SECS 0.0 SECS
55.1 SECS 0.0 SECS
Explanation :
 AVG. SOLVING TIME  FASTEST SOLVING TIME Explanation :
Explanation :
The jurisdiction and powers of the Supreme Court of India are primarily outlined in the Constitution
When the Legislatures of two or more States pass resolutions requesting the Parliament to enact laws on of India. Article 138 of the Constitution of India deals with the power of the Parliament for granting
a matter in the State List, then the Parliament can make laws for regulating that matter. extra jurisdiction to the Supreme Court by making law.
A law so enacted applies only to those States which have passed the resolutions. However, any The jurisdiction and powers of the Supreme Court with respect to matters in the Union list can
other State may adopt it afterwards by passing a resolution to that effect in its Legislature. So, be enlarged by Parliament, not by the President of India, as per Article 138(1) of the
statement 1 is correct. Constitution.
The effect of passing a resolution under the above provision is that the Parliament becomes Article 138(2) of the Indian Constitution specifies that the Supreme Court of India can be granted
entitled to legislate with respect to a matter for which it has no power to make a law. On the other additional jurisdiction and powers with respect to any matter through a special agreement
hand, the State Legislature ceases to have the power to make a law with respect to that matter. between the Government of India and the Government of any State, provided that Parliament
The resolution operates as abdication or surrender of the power of the State Legislature with passes a law that allows the Supreme Court to exercise such jurisdiction and powers.
respect to that matter and it is placed entirely in the hands of Parliament which alone can
then legislate with respect to it.
Such a law enacted by the Parliament can be amended or repealed only by the Parliament and not
by the Legislatures of the concerned States. So, statement 2 is not correct. Question 38. + 2.0 - 0.66

1. Renaming the definition of ‘agricultural income’ with reference to income tax
Knowledge Box:
2. Imposition of surcharges on any existing taxes of the Central Government
Some examples of laws passed under the above provision are Prize Competition Act, 1955; Wild 3. Creation of new State of the Indian Union
Life (Protection) Act, 1972; Water (Prevention and Control of Pollution) Act, 1974; Urban Land 4. Addition of language in the Eighth Schedule of the Indian Constitution
(Ceiling and Regulation) Act, 1976; and Transplantation of Human Organs Act, 1994. How many of the above Bills are introduced in the Parliament only on the recommendation of the
President?
Question 37. + 2.0 - 0.66 A. Only one
Which one of the following has the power to enlarge the jurisdiction of the Supreme Court of India? B. Only two
 C. Only three
  A. Parliament
D. All four
B. President
Question Analytics
C. Supreme Court Collegium
D. Chief Justice of India
Question Analytics
2824 USERS 2113 USERS 711 USERS 7.9 SECS 50.94 SECS 0.0 SECS
ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME  AVG. SOLVING TIME  FASTEST SOLVING TIME
Explanation :
50.08 SECS 0.0 SECS
The Constitution lays down that certain types of Bills can be introduced in the Parliament only on the ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME
recommendations of the President. 56.7 SECS 0.0 SECS
To protect the interest of states in the financial matters, the Constitution lays down that the  AVG. SOLVING TIME  FASTEST SOLVING TIME
following bills can be introduced in the Parliament only on the recommendation of the President: Explanation :
A bill which imposes or varies any tax or duty in which states are interested.
The Judges Enquiry Act (1968) deals with the removal of both the Supreme Court as well as the High
A bill which varies the meaning of the expression ‘agricultural income’ as defined for the
Court judges.
purposes of the enactments relating to Indian income tax. So, point 1 is correct.
A bill which affects the principles on which money is or may be distributable to states. A removal motion signed by 100 members (in the case of Lok Sabha) or 50 members (in the case
A bill which imposes a surcharge on any specified tax or duty for the purpose of the of Rajya Sabha) is to be given to the Speaker/Chairperson. The Speaker/Chairperson may admit
Centre. So, point 2 is correct. the motion or refuse to admit it. So, statements 1 and 2 are correct.
Article 3 lays down that a Bill to create a new State can be introduced in the Parliament only with If it is admitted, then the Speaker/Chairperson is to constitute a three-member committee to
the prior recommendation of the President. So, point 3 is correct. investigate into the charges. If the committee finds the judge to be guilty of misbehaviour or
A Constitutional Amendment Bill is required to add a new language in the Eighth Schedule of the suffering from an incapacity, the House can take up the consideration of the motion. After the
Indian Constitution. Introducing constitutional amendment bills in the Parliament does not motion is passed by each House of Parliament by special majority, an address is presented to
require prior permission of the President. So, point 4 is not correct. the President for removal of the judge.
It is interesting to know that no judge of the Supreme Court has been impeached so far. The first
So, only three of the above Bills can be introduced in the Parliament only on the recommendation
case of impeachment is that of Justice V. Ramaswami of the Supreme Court (1991–1993). Though
of the President.
the enquiry Committee found him guilty of misbehaviour, he could not be removed as the
impeachment motion was defeated in the Lok Sabha. So, statement 3 is correct.
Relevance: Recently, a controversy erupted after the Central Government proposed to table the Digital
Data Protection Bill 2023 as a finance bill in Parliament. Therefore, option (d) is the correct answer.
Consider the following statements with reference to the removal of a judge of the Supreme Court from Consider the following statements:
the office: In India, the power of judicial review can be exercised in cases where:
1. A removal motion can be introduced in either House of the Parliament. 1. the authority has no right to perform a particular act
2. The presiding officer may refuse to admit the removal motion. 2. the power is used for the purpose for which it is not alloted
3. Till now, the Parliament has never passed a motion to remove a judge of the Supreme Court. 3. the authority exercises decisions on irrational considerations
Which of the statements given above are correct? 4. the administrative authority follows unfair procedure in its action
A. 1 and 2 only
B. 2 and 3 only A. 1, 2 and 3 only
C. 1 and 3 only B. 2, 3 and 4 only
  D. 1, 2 and 3 C. 1 and 4 only
Question Analytics   D. 1, 2, 3 and 4

2664 USERS 1180 USERS 1484 USERS 27.4 SECS Question Analytics
2213 USERS 1542 USERS 671 USERS 23.6 SECS The concept of judicial review needs to be attracted and applied. The Supreme Court cannot
itself apply for judicial review.
The Supreme Court or the High Court for that matter do not use their authority to conduct a
60.89 SECS 0.0 SECS
judicial review by a suo motu action.
Relevance: Recently, A PIL has been filed in Supreme Court seeking judicial review of safety
Explanation :
parameters in railways.
The Constitution of India provides for an independent judiciary that acts as a guardian of
the Constitution and protects the rights of the citizens. One of the key functions of the judiciary is to Question 41. + 2.0 - 0.66
ensure that the laws passed by the legislature and the actions of the executive are in line with the
Constitution. This is known as judicial review. The grounds of Judicial review are:
1. Broadcasting fees
If an administrative authority has no right to perform a particular act, any purported action of 2. Disinvestments proceedings
such a right will be, as a matter of course, void and non-existent in the eyes of the law. So, point 1
3. Banking services
is correct.
4. Public Health receipts
Administrative power cannot be used for the purpose for which it is not allotted. For example,
in Attorney-General vs. Fulham Corporation, the administration was entitled under the law to set How many of the above come under the sources of non-tax revenue for the Central Government?
up warehouses for the non-commercial use of local occupants. The corporation then agreed to A. Only two
open a laundry on a commercial basis. The corporation was held to have acted ultra vires the law.
 B. Only three
So, point 2 is correct.
The principle of irrationality is considered as a ground for judicial review. So, point 3 is  C. All four
correct. D. None
A decision of the administrative authority shall be considered irrational in matters when: Question Analytics
It does not have the authority of a law. 2026 USERS 717 USERS 1309 USERS 18.0 SECS
It is not based on evidence.
It is based on a consideration that is irrelevant and extraneous.
The decision of the authorities is so whimsical, twisted, arbitrary, absurd and unfair 53.16 SECS 0.0 SECS
that no rational person can reach a conclusion which has been reached by the  AVG. SOLVING TIME  FASTEST SOLVING TIME
authorities.
Explanation :
It is so irrational that it may be done in bad faith or maliciously.
A ‘fair procedure’ needs to be followed in every administrative action. Absence of fair procedure Non-Tax Revenue is the recurring income earned by the Government from sources other than taxes.
by the authority calls for failure of natural justice. So, point 4 is correct.
The receipts from the following form the major sources of non-tax revenues of the Centre: (i)
Therefore, option (d) is the correct answer. posts and telegraphs; (ii) railways; (iii) banking; (iv) broadcasting (v) coinage and currency; (vi)
central public sector enterprises; (vii) escheat and lapse; and (viii) others.
Knowledge Box
Broadcasting fees include license fees paid by DTH operators, commercial TV services,
commercial FM radio services etc. It is a non-tax revenue of the Central Government. So, point 1
Power of judicial review can be exercised by both the Supreme Court and High Courts.
is correct.
All laws, order, bye-laws, ordinance and constitutional amendments and all other notifications
Disinvestment proceedings form a part of capital receipts to the government. So, point 2 is not
made by Centre and State both are the subject to the judicial review.
correct.
Banking services including financial services like deposits, loans, investments etc. form part of The minimum age for applying for the ‘Senior Advocate’ designation is 45 years. This age
the non-tax revenue of the Central Government. So, point 3 is correct. limit may be relaxed by the Committee, the Chief Justice of India, or a Supreme Court judge if
‘Public Health’ receipts include service fees, sale proceeds of sera and vaccine etc. ‘Medical’ they have recommended an advocate’s name. So, statement 1 is not correct.
receipts include contributions for Central Government Health Scheme and charges realised from The applicants must have ten years of practice or a combined experience of practice and
patients for hospital and dispensary services, etc. They form part of the non-tax revenue of the service as a judicial officer or a judicial member in a tribunal for a cumulative period of 10
Central Government. So, point 4 is correct. years. The applicants must have specialized expertise in any field of law, such as constitutional
law, civil law, criminal law, taxation law, etc. So, statement 2 is correct.
So, only three of the above are the sources of non-tax revenue of the Central Government.
The Committee for Designation of Senior Advocates is headed by the Chief Justice of India. The
Therefore, option (b) is the correct answer. other members of the committee are two senior-most judges of the Supreme Court, Attorney
Relevance: The Central Government’s fiscal deficit in the first quarter of FY 2023-24 narrowed to General for India and a representative of the Supreme Court Bar Association. It is a body that is
11.8% largely due to a sharp jump in non-tax revenue and lower revenue spending. responsible for conferring the status of senior advocates to eligible advocates in the Supreme
Court of India. The applications will be invited once a year and the committee will meet twice a
Question 42. + 2.0 - 0.66 year. It will also have a permanent secretariat, whose members will be selected by the CJI and the
committee. So, statement 3 is not correct.
With reference to the designation of Senior Advocates by the Supreme Court of India, consider the
following statements: Therefore, option (b) is the correct answer.
1. There is no minimum age requirement to be designated as a ‘Senior Advocate’. Relevance: The Supreme Court has recently modified the guidelines for the designation of senior
2. A person to be designated as a Senior Advocate should have ten years of practice and service as a advocates in the Supreme Court.
judicial officer.
3. The Committee for Designation of Senior Advocates is headed by the Attorney General of India. Question 43. + 2.0 - 0.66
Which of the statements given above is/are correct? Consider the following statements:
A. 1 only 1. Unlike the President, a Governor cannot return a Money Bill for the reconsideration of the State
Legislature.
 B. 2 only
2. The Governor of a State may reserve the Money Bill for the consideration of the President.
 C. 2 and 3 only
D. 1, 2 and 3
Question Analytics A. 1 only

1668 USERS 643 USERS 1025 USERS 17.9 SECS  B. 2 only
ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME C. Both 1 and 2
47.25 SECS 0.0 SECS  D. Neither 1 nor 2

Question Analytics
Explanation :
Explanation:
The Supreme Court has recently modified the guidelines for the designation of Senior Advocates in the 54.21 SECS 0.0 SECS
Supreme Court.  AVG. SOLVING TIME  FASTEST SOLVING TIME
Explanation :
Passing of a Money Bill: Both the President and Governor cannot return a Money Bill for the  D. Statement-I incorrect but Statement-II is correct
reconsideration of the State Legislature. Question Analytics
When the Governor reserves a Money Bill for the consideration of the President, he will not have 1837 USERS 573 USERS 1264 USERS 17.6 SECS
any further role in the enactment of the Bill.
If the President gives his assent to the Bill, it becomes an Act. This means that the assent of the
Governor is no longer required. 53.16 SECS 0.0 SECS
The President also cannot return a Money Bill for the reconsideration of the State
Legislature (as in the case of the Parliament). So, statement 1 is not correct.
Explanation :
As per Article 200 of the Constitution of India, the Governor may reserve the Money Bill for
the President's consideration. When the governor reserves a money bill for the consideration of Under Article 261 of Indian Constitution, the jurisdiction of each State is confined to its own
the President, he will not have any further role in the enactment of the bill. If the President gives territory. Hence, it is possible that the acts and records of one State may not be recognised in
his assent to the bill, it becomes an Act. So, statement 2 is correct. another State. To remove any such difficulty, the Constitution contains the “Full Faith and Credit”
clause.
This clause provides that full faith and credit is to be given throughout the territory of India
Knowledge Box
to public acts, records and judicial proceedings of the Centre and every state. So, statement
2 is correct.
Pardoning a death sentence: The President can pardon, reprieve, respite, remit, suspend or
The expression ‘public acts’ includes both legislative and executive acts of the government.
commute a death sentence. He is the only authority to pardon a death sentence. The
Also, final judgements and orders of civil courts in any part of India are capable of execution
Governor, on the other hand, cannot pardon a death sentence.
anywhere within India (without the necessity of a fresh suit upon the judgement).
Even if a State Law prescribes a death sentence, the power to grant pardon lies with the
However, the rule applies only to civil judgements and not to criminal judgements. In
President and not the Governor. But, the Governor can suspend, remit or commute a death
other words, it does not require the courts of a State to enforce the penal laws of another
sentence.
state. So, statement 1 is not correct.
Relevance: Recently the Governor of Punjab called for an imposition of the President’s Rule. So, Statement-I incorrect but Statement-II is correct

Question 44. + 2.0 - 0.66
Consider the following statements: Question 45. + 2.0 - 0.66

Statement-I: Final judgements and orders of criminal courts in a State are capable of execution The Seventh Schedule essentially highlights which one of the following features of the Constitution of
anywhere within India. India?
Statement-II: The Constitution of India states that full faith and credit is to be given throughout the
A. Official languages
territory of India to judicial proceedings of every State.
B. Special provisions to States
Which one of the following is correct in respect of the above statements?
  C. Division of powers
Both Statement-I and Statement – II are correct and Statement- II is the correct explanation
 A.
for Statement- I D. Separation of powers
Both Statement I and Statement II are correct but Statement-II is not the correct Question Analytics
B.
explanation for Statement-I 2706 USERS 1740 USERS 966 USERS 11.3 SECS
C. Statement- I is correct but Statement-II is incorrect

48.84 SECS 0.0 SECS Article 214 to Article 231 in Part VI of the Constitution of India deal with the organisation,
independence, jurisdiction, powers, procedures and so on of the High Courts.
Explanation : Every High Court (whether exclusive or common) consists of a Chief Justice and such other
judges as the President may from time to time deem necessary to appoint.
Article 246 of the Indian Constitution lays down an elaborate division of legislative powers Thus, the Constitution does not specify the strength of a High Court and leaves it to the discretion
between the Union and State government in the Seventh Schedule (Federal feature of the Indian of the President. Accordingly, the President determines the strength of a high court from time to
Constitution). time depending upon its workload. So, statement 1 is not correct.
The executive powers of the Union and State governments co-exist with their legislative powers. Article 200 of the Constitution states that if in the opinion of the Governor, a Bill, if it became
The Seventh schedule contains three lists i.e. List I or the Union List over which the Parliament law, would so derogate from the powers of the High Court as to endanger its constitutional
has exclusive competence, List II or the State List over which the State Legislature s have position, he shall not assent to but shall reserve it for the consideration of the President. So,
exclusive competence and List III or the Concurrent List over which both the Parliament and the statement 2 is correct.
State Legislature s.
Relevance: Amidst the NEET standoff with the Centre, Tamil Nadu Chief Minister recently said that Question 47. + 2.0 - 0.66
education should be moved from the Concurrent list back to the State list.
With reference to tribunal system in India, consider the following statements:
1. The Income Tax Appellate Tribunal was established in 1941 as the first Tribunal in India.
Question 46. + 2.0 - 0.66
2. Swaran Singh Committee recommended that the decisions of the tribunals should be subject to
Consider the following statements with reference to the High Courts in India:
scrutiny by the High courts.
1. The Constitution of India does not specify the strength of a High Court and leaves it to the discretion
3. The appeals from Securities Appellate Tribunal on a question of law lie directly with the Supreme
of the Parliament.
Court of India.
2. The Governor shall reserve a Bill passed by the State Legislature for the consideration of the
President if it derogates the powers of the High Court.
Which of the statements given above is/are correct? A. 1 and 2 only
B. 2 only
A. 1 only
 C. 1 and 3 only
 B. 2 only
D. 2 and 3 only
 C. Both 1 and 2
Question Analytics
D. Neither 1 nor 2
Question Analytics
37.78 SECS 0.0 SECS
51.16 SECS 0.0 SECS
Explanation :
Tribunals are institutions established for discharging judicial or quasi-judicial duties. The objective has
Explanation :
been to reduce case load of the judiciary or to bring in subject expertise for technical matters.
The tribunal system has developed as a parallel to the traditional court system over the last eighty Relevance: Parliament panel has recently asked the Central Tribunal to decide cases pending for over
years. The Income Tax Appellate Tribunal was the first to be created in 1941 to reduce 10 years.
pendency of cases in courts. After the insertion of Articles 323A and 323B, several tribunals
such as the Central Administrative Tribunal as well as sector specific tribunals were set up from Question 48. + 2.0 - 0.66
the 1980s to 2010s. So, statement 1 is correct.
Which of the following provisions is/are correct with reference to functioning of Lok Adalats?
The Swaran Singh Committee (1976) noted that the High Courts were burdened with service
1. District Legal Services Authority is the only body empowered to organize Lok Adalats in India.
cases by public servants. It recommended setting up: (i) administrative tribunals (both at national
level and state level) to adjudicate on matters related to service conditions, (ii) an all-India 2. Lok Adalat cannot deal with the cases pending before a court or the disputes which are at pre-
Appellate Tribunal for matters from labour courts and industrial tribunals, and (iii) tribunals for litigation stage.
deciding matters related to various sectors (such as revenue, land reforms, and essential 3. The Lok Adalat possesses the same powers as are vested in a Civil Court under the Code of Civil
commodities). It further recommended that the decisions of the tribunals should be subject to Procedure.
scrutiny by the Supreme Court (not by high court). In Chandra Kumar versus Union of India 4. The award made by a Lok Adalat is binding on all the parties with no provision to appeal in any court.
and Ors, 1997 case, Supreme Court held that decisions of the tribunals will be subject to scrutiny
by a division bench of the High Court within whose jurisdiction the concerned tribunal falls. So,
statement 2 is not correct. A. 1 only
Any person aggrieved by any decision or order of the Securities Appellate Tribunal (SAT) can B. 2 and 3 only
file an appeal to the Supreme Court. The appeal can be filed only on a question of law. The appeal
 C. 3 and 4 only
shall be filed within 60 days from the date of receiving a copy of the decision or order of SAT.
D. 1, 2 and 4 only
This provision is provided under Section 15Z of Securities and Exchange Board of India
(SEBI) Act, 1992. So, statement 3 is correct. Question Analytics
Knowledge Box
50.68 SECS 0.0 SECS
In 1976, Articles 323A and 323B were inserted in the Constitution of India through the 42nd  AVG. SOLVING TIME  FASTEST SOLVING TIME
Constitutional Amendment Act. Explanation :
Article 323A empowered Parliament to constitute administrative tribunals (both at central and
Lok Adalat is a form of Alternative Dispute Resolution (ADR) that is based on the principle of
state level) for adjudication of matters related to recruitment and conditions of service of public
conciliation and compromise. It is a forum where disputes pending before any court or at pre-litigation
servants.
stage are settled by agreement between the parties, with the assistance of conciliators. Lok Adalat means
Article 323B specified certain subjects (such as taxation and land reforms) for which
“people’s court” in Hindi and it is a statutory institution established under the Legal Services
Parliament or state Legislature s may constitute tribunals by enacting a law.
Authorities Act, 1987.
In 2010, the Supreme Court clarified that the subject matters under Article 323B are not
exclusive, and Legislature s are empowered to create tribunals on any subject matters under As per the Act, the State Legal Services Authority or the District Legal Services Authority or the
their purview as specified in the Seventh Schedule of the Constitution. Supreme Court Legal Services Committee or the High Court Legal Services Committee or the
Currently, tribunals have been created both as substitutes to High Courts and as subordinate to Taluk Legal Services Committee can organize Lok Adalats at such intervals and places and for
High Courts. exercising such jurisdiction and for such areas as it thinks fit. So, statement 1 is not correct.
A Lok Adalat has jurisdiction to determine and to arrive at a compromise or settlement
between the parties to a dispute in respect of:
any case pending before any court; or ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME
any matter which is falling within the jurisdiction of any court and is not brought before 58.14 SECS 0.0 SECS
such court. Thus, the Lok Adalat can deal with not only the cases pending before a court
but also with the disputes at pre-litigation stage. So, statement 2 is not correct.
Explanation :
The Lok Adalat have the same powers as are vested in a Civil Court under the Code of Civil
Procedure (1908), while trying a suit in respect of the following matters: Article 163 of the Indian Constitution provides for a Council of Ministers with the Chief Minister as the
the summoning and enforcing the attendance of any witness examining him on oath; head to aid and advise the Governor in the exercise of his functions, except in so far as he is required to
the discovery and production of any document; exercise his functions in his discretion.
the reception of evidence on affidavits;
The total number of Ministers, including the Chief Minister, in the Council of Ministers in a State
the requisitioning of any public record or document from any court or office; and
shall not exceed 15 percent of the total strength of the Legislative Assembly of that State. But, the
such other matters as may be prescribed. So, statement 3 is correct.
number of Ministers, including the Chief Minister, in a State shall not be less than 12. This
An award of a Lok Adalat is to be deemed to be a decree of a Civil Court or an order of any
provision was added by the 91st Constitutional Amendment Act of 2003. Thus, there is a
other court. Every award made by a Lok Adalat shall be final and binding on all the parties to
minimum criterion for the number of Ministers in the Council of Ministers in a State. So,
the dispute. No appeal shall lie to any court against the award of the Lok Adalat. So, statement
statement 1 is not correct.
4 is correct.
As per Article 164 of the Constitution, States of Chhattisgarh, Jharkhand, Madhya Pradesh
Therefore, option (c) is the correct answer. and Odisha should have a Minister in charge of tribal welfare who may in addition be in
Relevance: During the first national Lok Adalat of 2023, a total of 30.57 lakh pending cases were charge of the welfare of the Scheduled Castes and backward classes or any other work. Thus, it is
disposed off. not a requirement for all the States of India to have a Tribal Minister, but selected few with a
considerable population of tribal people. So, statement 2 is not correct.
A member of either House of State Legislature belonging to any political party who is
Question 49. + 2.0 - 0.66
disqualified on the ground of defection shall also be disqualified to be appointed as a
With reference to the State Council of Ministers in India, consider the following statements:
Minister. This provision was also added by the 91st Amendment Act of 2003. So, statement 3 is
1. As per the Indian Constitution, there is no minimum requirement for the number of Ministers in the correct.
Council of Ministers of a State.
2. It is a constitutional obligation for all the States of India to have a tribal welfare Minister in their
Council of Ministers. Relevance: Recently, Tamil Nadu Governor has dismissed Council of minister V Senthil Balaji leading
to a debate as to whether the Governor has the power to take such action.
3. Any member of the State Legislature who is disqualified on the ground of defection is disqualified to
be appointed as a Minister.
Question 50. + 2.0 - 0.66
With reference to State Legislatures in India, consider the following statements:
A. 1 only
1. There is no provision of joint sitting in the State Legislature to resolve a deadlock in the passage of a
B. 1 and 2 only bill.
C. 2 and 3 only 2. There are no Department-Related Standing Committees in States as there are in Parliament.
  D. 3 only 3. There is no real power in the State Legislative Council to reject a money bill.
Question Analytics Which of the statements given above is/are correct?
A. 1 only
B. 2 and 3 only According to Article 198 of the Constitution of India, a money bill can be introduced only in
the legislative assembly of a state and after it is passed by the assembly, it shall be transmitted
  C. 1 and 3 only
to the legislative council for its recommendations. The council can either return the bill with or
D. 1, 2 and 3
without amendments within fourteen days or not return it at all. In either case, the bill shall be
Question Analytics deemed to have been passed by both Houses in the form in which it was passed by the assembly
or with such amendments as are agreed to by both Houses. Thus, the council cannot reject or
ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME amend a money bill without the consent of the assembly. So, statement 3 is correct.
56.96 SECS 0.0 SECS Therefore, option (c) is the correct answer.
Explanation : Question 51. + 2.0 - 0.66
Which one of the following is correct with reference to tax burden, when supply of the goods is more
The State Legislature consists of the governor and the legislative assembly. In the states having a elastic than its demand?
bicameral system, the state Legislature consists of the governor, the legislative council and the   A. Consumer of the goods bears majority of tax burden
legislative assembly. The legislative council (Vidhan Parishad) is the upper house (second chamber or
B. Consumers and producers equally share the tax burden
house of elders), while the legislative assembly (Vidhan Sabha) is the lower house (first chamber or
popular house). C. Producers of the goods bear majority of the tax burden
D. Government bears the additional tax burden to prevent increase in market prices
When a bill is passed by the legislative assembly and transmitted to the legislative council, the
Question Analytics
latter has four alternatives before it. If the council passes the bill without amendments or the
assembly accepts the amendments suggested by the council, the bill is deemed to have been
passed by both the Houses and the same is sent to the governor for his assent. On the other hand, ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME
if the assembly rejects the amendments suggested by the council or the council rejects the bill 63.14 SECS 0.0 SECS
altogether or the council does not take any action for three months, then the assembly may pass
the bill again and transmit the same to the council. If the council rejects the bill again or passes the
bill with amendments not acceptable to the assembly or does not pass the bill within one month, Explanation :
then the bill is deemed to have been passed by both the Houses in the form in which it was passed
"Tax incidence" refers to the division of a tax burden between stakeholders, such as producers
by the assembly for the second time. Thus, the ultimate power of passing an ordinary bill is vested
and consumers.
in the assembly. At the most, the council can detain or delay the bill for a period of four months–
The tax incidence depends on the relative price elasticity of supply and demand. Price
three months in the first instance and one month in the second instance. Thus, there is no scope
elasticity is a representation of how buyer activity changes in response to movements in the price
for a joint sitting of both Houses in case of a disagreement over a bill. So, statement 1 is
of a good or service.
correct.
In situations where the buyer is likely to continue purchasing a good or service regardless of
Department-Related Standing Committees are formed in the State Legislature in India. The
a price change, the demand is said to be inelastic.
number and nature of committees vary across states. For example, Kerala has 14 subject
When the price of the good or service profoundly impacts the level of demand, the demand
committees examining all departments, while Delhi has seven standing committees scrutinising
is considered highly elastic.
performance of various departments. However, not all states have a provision for specific DRSCs
When supply is more elastic than demand, consumers bear most of the tax burden. This is
or subject committees. So, statement 2 is not correct.
because when the demand is inelastic, consumers are not very responsive to price changes and the
quantity demanded remains relatively constant when the tax is introduced. In the case of smoking,
the demand is inelastic because consumers are addicted to the product. The producers can then When a country's imports exceed its exports, it results in a net outflow of money, which can lead
pass the tax burden along to consumers in the form of higher prices, without much of a decline in to a decrease in demand for the country's currency. This decrease in demand for the currency
the equilibrium quantity. can cause its value to weaken or depreciate. A weaker currency can make imports more
However, when demand is more elastic than supply, producers bear most of the cost of the expensive, leading to higher inflation and a reduction in the purchasing power of the country's
tax. For example, when a tax is introduced in a market with an inelastic supply sellers have no citizens. So, points 1 is correct and point 3 is not correct.
alternative than to accept lower prices for their business. The tax burden is now passed on to the CAD has an impact on the economy, stock markets and investments. When CAD increases, the
sellers. demand for foreign currency will rise, leading to depreciation of the home currency. The
depreciating currency and rising CAD will lead to capital flight away from India. A lower
CAD, on the other hand, can improve investor confidence and make the country's currency more
appealing to investors. So, point 2 is correct.
Question 52. + 2.0 - 0.66 In addition to the impact on currency value, a CAD can also lead to debt accumulation. If a
Consider the following: country is unable to finance its CAD with foreign investment, it may need to borrow to cover the
1. Depreciation of Indian Rupee gap. This borrowing can lead to an increase in debt levels, which can further harm the economy.
So, point 4 is correct.
2. Capital outflow from India
3. Decrease in the rate of inflation So, only three of the above are the most likely effects of an increase in the Current Account Deficit
4. Increase in debt accumulation (CAD) of India.
How many of the above are the most likely effects of an increase in the Current Account Deficit (CAD) Therefore, option (c) is the correct answer.
of India? Relevance: Experts believe the India’s current account deficit is likely to moderate in the current fiscal
year 2023-2024
A. Only one
B. Only two
Question 53. + 2.0 - 0.66
  C. Only three
According to the ‘Impossible Trinity’ theory, which of the following is impossible to maintain by an
D. All four economy at the same time?
Question Analytics
 A. Independent monetary policy, Fixed exchange rate and Free flow of capital
B. Flexible exchange rate, Fiscal discipline and Free flow of capital
C. Fiscal discipline, Income equality and High growth rate
62.31 SECS 0.0 SECS
D. Income equality, Independent monetary policy and Free flow of capital
Question Analytics
Explanation : 1362 USERS 799 USERS 563 USERS 25.2 SECS
Current Account is the record of trade in goods and services and transfer payments. Trade in ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME
goods includes exports and imports of goods. Trade in services includes factor income and non- 46.89 SECS 0.0 SECS
factor income transactions.
The Current Account Deficit (CAD) occurs when a country's import value of goods and
Explanation :
services surpasses its export value. CAD can have significant economic consequences.
The Impossible trinity, or the trilemma, refers to the idea that an economy cannot pursue B. Only two
independent monetary policy, maintain a fixed exchange rate and allow the free flow of
C. All three
capital across its borders at the same time. According to economists, any economy can choose to
D. None
pursue only two out of the three policy options noted above simultaneously in the long-run. The
idea was proposed independently by Canadian economist Robert Mundell and British economist Question Analytics
Marcus Fleming in the early 1960s.
If policymakers choose to peg or maintain the value of their currency at a certain level against a ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME
foreign currency, this decision will limit the kind of monetary policy they can adopt in the
48.21 SECS 0.0 SECS
long-run. For example, if a country’s policymakers want their currency to appreciate, or become
stronger, against foreign currencies, they cannot achieve this goal and maintain the external  AVG. SOLVING TIME  FASTEST SOLVING TIME
strength of the currency over a considerable period of time without adopting a tight domestic Explanation :
monetary policy stance which will weaken domestic demand. This is because loose monetary
Decoupled Income Support: It implies that providing income to farmers won't significantly
policy will put pressure on the country’s currency to depreciate in value.
impact the production and prices of the crops in question. According to the World Trade
On the other hand, if policymakers of a country choose to pursue independent monetary policy,
Organization (WTO), direct support comprises income protection and security initiatives (for
they may not be able to maintain the foreign exchange value of their currency at a desired peg.
natural disasters, state contributions to crop insurance, etc.), programs targeting structural
This is because the kind of monetary policy adopted invariably influences the exchange value
adjustments and environmental protection and regional development programs. In the context of
of its currency against foreign currencies.
the WTO's Agreement on Agriculture, direct payments to farmers fall into the category known as
For example, if a country’s Central Bank adopts easy monetary policy with the aim of
the Green Box. These subsidies are considered permissible and aren't required to be reduced by
boosting domestic demand, this will naturally cause the value of its currency to depreciate
governments. So, statement 1 is correct.
against foreign currencies if foreign Central Banks adopt tighter monetary policy.
Trade distorting and non-distorting support: There are two main types of domestic support.
Similarly, a country can choose to have a free flow of capital among all foreign nations and also
One has little impact on trade (called "Green Box" measures), while the other distorts trade
have an autonomous monetary policy. However, it will then not be able to maintain a fixed
(known as "Amber Box" measures). For instance, government-funded agricultural research or
exchange rate. Fixed exchange rates and the free flow of capital are mutually exclusive. It is
training belongs to the first type, while when the government buys crops at a set price
because the free flow of capital is largely determined by the demand and supply (Floating
("market price support"), it falls into the second type. Nearly all domestic support measures
exchange regime).
considered to distort production and trade (with some exceptions) fall into the amber box. These
Therefore, option (a) is the correct answer. include measures to support prices, or subsidies directly related to production quantities. So,
statements 2 and 3 are not correct.
Question 54. + 2.0 - 0.66
Consider the following statements with reference to trade related rules of the World Trade Organisation
(WTO):
1. Direct income support to farmers is considered permissible.
Question 55. + 2.0 - 0.66
2. Government-provided agricultural research or training is part of the amber box subsidy.
With reference to Off-Budget Borrowings, consider the following statements:
3. Government buying agricultural crops at market price support falls into non-trade-distorting support.
1. They are the loans taken indirectly by the Central Government through public institutions.
2. They are not included in the calculation of the fiscal deficit in a given financial year.
  A. Only one Which of the statements given above is/are correct?
 A. 1 only ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME
B. 2 only 40.88 SECS 0.0 SECS
 C. Both 1 and 2  AVG. SOLVING TIME  FASTEST SOLVING TIME
D. Neither 1 nor 2 Explanation :
Question Analytics
Commodity Transaction Tax (CTT) is a tax levied on exchange traded non-agricultural
commodity derivatives in India. It was introduced with the objective of increasing financial
ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME revenues for the government, driving transparency and reducing speculation in the commodities
44.93 SECS 0.0 SECS market.
It is applicable to non-agricultural commodities such as gold, silver, crude oil, natural gas,
aluminium, copper, lead, nickel and zinc while agricultural commodities are exempted from
Explanation :
this tax. So, statement 1 is not correct.
CTT is the tax levied on trading of commodity derivatives i.e., futures and options. This tax is
Off-budget borrowings are loans that are taken not by the Centre directly, but by another
applicable only for sellers of commodity derivatives and this tax is derived by the actual size of
public institution that borrows on the directions of the Central Government. Such borrowings
the contract. On the other hand, Securities Transaction Tax (STT) is a direct tax levied on every
are used to fulfil the government’s expenditure needs. These agencies raise funds through bonds
purchase and sale of securities that are listed on the recognized stock exchanges in India.
that offer higher interest rates than Government Securities (G-secs). So, statement 1 is correct.
Taxable securities include equity, derivatives and units of equity-oriented mutual funds. It also
However, since the liability of the loan is not formally on the Central Government, the loan is not
includes unlisted shares sold under an offer for sale to the public included in IPO and where such
included in the national fiscal deficit. This helps keep the country’s fiscal deficit within
shares are subsequently listed in stock exchanges. So, statement 2 is correct.
acceptable limits. So, statement 2 is correct.
Relevance: As per information shared in Parliament, Tamil Nadu's off-budget borrowings are projected
Question 57. + 2.0 - 0.66
at ₹746.12 crore for fiscal year 2022-23, marking an increase from ₹594.88 crore in 2021-22.
In the context of Indian economy, ‘tax expenditure’ refers to:
Question 56. + 2.0 - 0.66 A. spending of government tax revenue on public welfare programs and infrastructure projects
With reference to the Commodity Transaction Tax (CTT), consider the following statements: B. expenditure incurred by the government in tax collection
1. It is applicable to both agricultural and non-agricultural commodities. C. expenditure incurred for the creation of physical or financial assets
2. Unlike Securities Transaction Tax (STT), it is applicable only to sellers of commodity derivatives.   D. revenue lost due to tax exemptions and concessions provided to taxpayers
Which of the statements given above is/are correct? Question Analytics
A. 1 only
 B. 2 only ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME
 C. Both 1 and 2 54.76 SECS 0.0 SECS
D. Neither 1 nor 2  AVG. SOLVING TIME  FASTEST SOLVING TIME
Question Analytics Explanation :

Tax expenditures refer to the concessions and exemptions granted by the government to permission of the Ministry of Finance, Government of India, is required for the issue of
taxpayers. These concessions are designed to incentivize specific activities, such as research and GDRs. So, statements 1 and 3 are correct.
development or public welfare initiatives. Only listed companies in India can issue GDRs in overseas marketplaces. GDRs allow
While these exemptions alleviate tax obligations, they effectively represent a form of indirect investors to gain access to international companies' capital markets without dealing with language,
expenditure, equivalent to the value of the tax relief provided to taxpayers. In this manner, the currency or tax restrictions. So, statement 2 is correct.
government utilises tax concessions and deductions as a means to achieve specific objectives,
thereby labelling them as tax expenditures. Tax expenditures are also termed as revenue foregone.
Knowledge Box
Question 58. + 2.0 - 0.66 An Indian firm aiming to have its shares traded on international stock exchanges like the London
With reference to Global Depository Receipts (GDRs), consider the following statements: and Hong Kong Stock Exchanges (excluding US exchanges) can utilize GDRs. To do so, the
1. It is allocated to non-resident investors against the issue of Foreign Currency Convertible Bonds Indian company should establish a partnership with a foreign depository bank through a
(FCCBs). depositary receipt agreement. These banks will then facilitate the issuance of shares on their
respective stock exchanges, ensuring adherence to regulatory requirements in both the company's
2. Only listed companies in India can issue GDRs in overseas marketplaces.
home country and the foreign exchange.
3. Issuance of GDRs requires prior approval from the Union Ministry of Finance.
Following are a few Indian companies that have issued GDRs:
UPL is listed on the Singapore Stock Exchange
A. Only one Aditya Birla Capital is listed on the Luxembourg Stock Exchange
GAIL India is listed on the London Stock Exchange
B. Only two
 C. All three Relevance: Recently, the Global Depository Receipts (GDRs) of Reliance Industries Limited (RIL)
D. None dipped by over 6% in London Stock Exchange trading.
Question Analytics
Which one of the following statements best describes the term ‘anti-dumping duty’?
45.18 SECS 0.0 SECS It is a protectionist tariff that a domestic government imposes on foreign imports when they
 A.
are priced below fair market value.
It is a duty imposed by a country on imported goods to counteract the negative effects of
B.
Explanation : subsidies provided by foreign governments to their domestic industries.
It is a tariff imposed by a country to protect a domestic industry that would face intense
C.
competitive pressure from the import of a particular good.
Global Depository Receipt (GDR) is in the nature of a depository receipt or certificate created
It is the duty that is levied by the government on import and export of goods to raise its
D.
by an overseas depository bank (authorised by the issuing company) outside India and is issued to revenues.
non-resident investors against the issue of Foreign Currency Convertible Bonds (FCCBs) or Question Analytics
shares of the issuer company. It is a negotiable certificate in US dollars, traded freely in foreign 2794 USERS 2129 USERS 665 USERS 1.1 SECS
markets like other securities and can be issued by way of private placement also. Prior
56.53 SECS 0.0 SECS 3. Netherlands

4. Japan
Explanation : 5. Singapore

Anti-dumping duty is a tax imposed on imported goods in order to compensate for the
difference between their export price and their normal value, if dumping causes injury to A. 3-1-2-5-4
producers of competing products in the importing country.  B. 1-3-4-5-2

It is a protectionist tariff that a domestic government imposes on foreign imports that it believes C. 4-1-3-2-5
are priced below fair market value. Dumping is a process wherein a company exports a product
 D. 2-5-1-3-4
at a price that is significantly lower than the price it normally charges in its home (or its
Question Analytics
domestic) market.
Knowledge Box
52.43 SECS 0.0 SECS
Countervailing duty: It is a type of tariff or duty imposed by a country on imported goods to  AVG. SOLVING TIME  FASTEST SOLVING TIME
counteract the negative effects of subsidies provided by foreign governments to their domestic Explanation :
industries.
Safeguard duty: It is a type of customs duty imposed by emergency action under the WTO
Agreement on Safeguards. It is designed to prevent harm and injury to a domestic industry that Foreign Direct Investment (FDI) is an investment from a party in one country into a business or
would face intense competitive pressure from the continued importation of a particular good. corporation in another country with the intention of establishing a lasting interest. With FDI,
Safeguard measures are applied to all imports of the product in question irrespective of the foreign companies are directly involved with day-to-day operations in the other country.
countries in which it originates or from which it is exported. FDI enters in India through either of the two routes:
Customs duty: It refers to the tax imposed on goods when they are transported across Automatic route: The non-resident or Indian company does not require prior nod of the
international borders. In simple terms, it is the tax that is levied on import and export of goods. Reserve Bank of India (RBI) or Government of India for FDI.
The government uses this duty to raise its revenues, safeguard domestic industries and Government-approval route: The government's approval is mandatory and the company
regulate movement of goods. Custom duty in India is defined under the Customs Act, 1962 and will have to file an application through Foreign Investment Facilitation Portal.
all matters related to it fall under the Central Board of Excise & Customs (CBEC). Mauritius (26%), Singapore (23%), United States of America (9%), Netherlands (7%) and
Japan (6%) were the top 5 countries for FDI equity inflows into India FY 2022-23.
Relevance: The Directorate General of Trade Remedies (DGTR) has initiated a Safeguard duty Top 5 sectors receiving highest FDI Equity Inflow during FY 2022-23 were Services Sector
investigation concerning imports of low ash Metallurgical Coke (Met Coke) into India. (Fin., Banking, Insurance, Non Fin/ Business, etc.), Computer Software & Hardware,
Trading, Telecommunications and Automobile Industry.
Question 60. + 2.0 - 0.66 Top 5 States receiving highest FDI Equity Inflow during FY 2022-23 were Maharashtra,
Karnataka, Gujarat, Delhi and Tamil Nadu.
Arrange the following countries in descending order of their share in Foreign Direct Investment in India
in Financial Year 2022-23: So, the correct sequence of countries in descending order of their share in Foreign Direct
1. United States of America Investment in India is Mauritius - Singapore - United States of America - Netherlands - Japan.
2. Mauritius Therefore, option (d) is the correct answer.
Question 61. + 2.0 - 0.66 Increase in the sale of masala bonds implies more rupee will be demanded by the investors to subscribe
to these bonds. It will lead to an increase in the demand of rupee and ultimately, rupee will
Which one of the following will necessarily lead to the appreciation of the Indian Rupee?
appreciate.
A. Increase in the flow of remittances from India Therefore, option (d) is the correct answer.
B. Increase in the investment by Indians in London based properties
C. Increase in the spending by Indian tourists outside India Question 62. + 2.0 - 0.66
  D. Increase in the sale of Masala Bonds outside India Consider the following statements with reference to the Angel Tax in India:
Question Analytics 1. It is tax payable by unlisted companies on the issue of shares at a rate higher than the fair market
2658 USERS 1530 USERS 1128 USERS 20.4 SECS value.
ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME 2. It is a form of direct tax and levied under the Income Tax Act, 1961.
3. It is applicable for investments received from resident investors only.

60.07 SECS 0.0 SECS
Explanation : A. Only one
  B. Only two
Flexible rate of exchange (also called floating rate of exchange) is the rate which is determined
C. All three
by the supply-demand forces in the foreign exchange market. It is also called 'free exchange
rate' as it is determined by the free play of supply and demand forces in the international money D. None
market. Question Analytics

Currency appreciation refers to a situation when domestic currency (rupee) appreciates (or 1792 USERS 1070 USERS 722 USERS 26.8 SECS
gains its value) in relation to a foreign currency. It is a situation of a fall in exchange. In this
case, less amount of domestic currency will be needed to buy one foreign currency.
50.91 SECS 0.0 SECS
It is caused by an increase in supply of foreign exchange or decrease in demand for foreign
exchange. Appreciation of the domestic currency implies:  AVG. SOLVING TIME  FASTEST SOLVING TIME
less rupees are required to buy a dollar. Accordingly, imports are likely to increase and Explanation :
more dollars are required to buy a rupee. Accordingly, exports are likely to fall
An increase in the flow of remittances from India implies foreigners working in India and Angel Tax is levied on the capital raised via the issue of shares by unlisted companies from an
earning in rupees are sending more money to their home countries. This will decrease the angel Investor if the share price of issued shares is seen in excess of the fair market value of
value of the rupee and increase the demand and value of the foreign currency. the company. The excess realisation is considered as income and therefore, taxed accordingly. So,
An increase in the investment by Indians in the London based properties will lead to increase in statement 1 is correct.
the demand for pound sterling and decrease the value of rupee. It is considered an income tax and cannot be shifted later on, hence it is a form of direct Tax. It
Increase in spending by Indian tourists outside India will decrease the value of Indian rupee and essentially derives its genesis from the Income Tax Act, 1961. The Finance Act, of 2012
increase the demand and value of foreign currency. introduced section 56(2)(viib) in the IT Act which taxes any investment, received by any unlisted
Masala Bonds are rupee-denominated bonds issued outside India by Indian entities. They are Indian company, valued above the fair market value by treating it as income. It is levied at a rate
debt instruments which help to raise money in local currency from foreign investors. Both the of 30.9% on net investments in excess of the fair market value. So, statement 2 is correct.
government and private entities can issue these bonds. Investors outside India who would like to In the past, Angel tax rules exclusively pertained to investments from resident investors. However,
invest in assets in India can subscribe to these bonds. Finance Bill 2023 has extended its applicability to non-resident investors as well. So,
statement 3 is not correct.  AVG. SOLVING TIME  FASTEST SOLVING TIME
Explanation :
A trademark means a mark capable of being represented graphically and which is capable of
Knowledge Box
distinguishing the goods or services of one person from those of others and may include the shape
of goods, their packaging and combination of colours. It serves as a badge of origin exclusively
In 2019, the Government announced an exemption from the Angel Tax for startups on
identifying a particular business as a source of goods or services. They are protected by
fulfilment of certain conditions. These are:
Intellectual Property Rights (IPR).
The startup must have recognition from the Department for Promotion of Industry and
The process of a trademark application is followed in accordance with the Trademarks Act, 1999
Internal Trade (DPIIT) to qualify.
and The Trademarks Rules, 2017. So, statement 1 is not correct.
The total sum of paid-up share capital and share premium of the startup must not exceed
The Controller General of Patents, Designs and Trademarks heads the Trademarks
₹25 crores, excluding funds acquired from Non-Resident Indians (NRIs), Venture Capital
Registry offices and functions as the Registrar of Trademarks.
Firms and specified companies.
Geographical indications (GIs) identify a good as originating from a particular place. By contrast,
Angel investors can seek a complete 100% tax exemption on the surplus investment
a trademark identifies a good or service as originating from a particular company. A trademark
beyond the fair market value. To avail this, the investor must possess a net worth of ₹2
can be assigned or licensed to anyone, anywhere in the world, because it is linked to a specific
crores or an income surpassing ₹25 lakh in the preceding 3 fiscal years.
company and not to a particular place. In contrast, a GI may be used by any person in the area of
Relevance: The Central Board of Direct Taxes (CBDT) has recently expanded its evaluation origin, who produces the goods according to specified standards. But because of its link with the
methodologies under the angel tax provision for foreign investors in start-ups. place of origin, a GI cannot be assigned or licensed to someone outside that place or not
belonging to the group of authorised producers. So, statement 2 is correct.
Question 63. + 2.0 - 0.66 The Registrar of Trademarks under the Intellectual Property Office (IPO) manages the filing
and registration of trademarks. The registrar is empowered to refuse or rectify marks based on
With reference to trademarks, consider the following statements:
absolute or relative grounds, or both. Appeals from its orders can be filed with the Intellectual
1. The process of trademarks registration in India is followed in accordance with the Patents Act, 1970.
Property Appellate Board (IPAB). So, statement 3 is not correct.
2. Unlike the Geographical Indication (GI) tag, trademarks can be licensed to anyone, anywhere in the
world. Therefore, option (b) is the correct answer.
3. The decision of the registrar of trademarks is final and cannot be challenged. Knowledge Box

The Trademarks Registry functions as an office of origin in respect of applications made by
A. 1 only Indian entrepreneurs for international registration of their trademarks after accession to the
  B. 2 only Madrid Protocol. It also functions as an office of the designated contracting party in respect of
international registrations in which India has been designated for protection of the relevant
C. 2 and 3 only
trademarks.
D. 1 and 3 only
Madrid Protocol is a treaty under the Madrid System for international registration of
Question Analytics trademarks.
The Madrid System for the International Registration of Marks makes it possible to protect a
ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME mark in a large number of countries by obtaining an international registration that has effect in
each of the designated Contracting Parties.
44.53 SECS 0.0 SECS
Relevance: Madras High Court criticised a major fintech company for taking contrary stands about its India is currently the world’s 2nd largest producer of crude steel. In June 2023, India was a net
trademark before various forums. exporter of finished steel. For FY 2023, South Korea was the largest supplier of finished
steel, followed by China. Japan and Vietnam occupied the third and fourth spots. So, pair 3 is
Question 64. + 2.0 - 0.66 correctly matched.
India is the world’s leading vegetable oil buyer. India's vegetable oils import rose 16 per cent
Consider the following pairs with reference to imports of India in last five years:
during November 2022 - September 2023. The share of palm oil is about 59 per cent in the
Sl. No. Commodity Top Supplier to India
country’s total vegetable oil imports. India imports palm oil mainly from Indonesia and
1. Rough Diamond : South Africa Malaysia and a small quantity of crude soft oil, including soybean from Argentina. Sunflower oil
is imported from Ukraine and Russia. So, pair 4 is not correctly matched.
2. Active Pharmaceutical Ingredients (API) : United States of America
3. Finished Steel : South Korea So, only one of the above pairs is correctly matched.
4. Palm Oil : Vietnam Therefore, option (a) is the correct answer.

Relevance: As per the latest data of May 2023, India's palm oil imports declined 14.59 per cent to
How many of the above pairs are correctly matched?
4,39,173 tonnes.
 A. Only one pair
B. Only two pairs Question 65. + 2.0 - 0.66
 C. Only three pairs Which one of the following statements best describes the term ‘effective revenue deficit’?
D. All four pairs

  A. The difference between revenue deficit and grants for the creation of capital assets.
Question Analytics
B. The excess of total revenue expenditure of the government over its total revenue receipts.
C. The gap between government’s expenditure and revenue not taking into account interest
ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME payments.
47.12 SECS 0.0 SECS

D. The excess of the total government expenditure over its total revenue excluding
borrowings.
Question Analytics
Explanation : 2250 USERS 1284 USERS 966 USERS 17.4 SECS
India is the leader in cut and polished diamonds. It processes more than 90% of the diamonds 55.27 SECS 0.0 SECS
used in jewellery worldwide. In 2021, India was the largest importer of diamonds in the world.
In the same year, diamonds were the 4th most imported product in India. India imports rough
Explanation :
diamonds primarily from the United Arab Emirates followed by the United States of America,
Belgium, Hong Kong and Botswana. So, pair 1 is not correctly matched.
The difference between revenue deficit and grants for the development of capital assets is
The Indian Pharmaceutical industry is the 3rd largest in the world by volume. India is one of the
known as effective revenue deficit. The concept of effective revenue deficit has been suggested
major producers of Active Pharmaceutical Ingredients (API) or bulk drugs in the world.
by the Rangarajan Committee on Public Expenditure. It is aimed to deduct the money used out of
However, the country also imports various Bulk Drugs/APIs for producing medicines. Almost 70-
borrowing to finance capital expenditure.
80% of the APIs are imported from China. So, pair 2 is not correctly matched.
Each year, the Central Government awards grants to State Governments and Union Territories.
These grants help both entities build capital assets, but these capitals are not included in the
Central Government's capital expenditures. The revenue expenditures made in the form of 1006 USERS 574 USERS 432 USERS 21.3 SECS
grants for the purchase of capital assets are excluded from the effective revenue deficit.
All grants given to State Governments/Union Territories and other parties are also treated as
revenue expenditure, even though some of these grants may be used for creation of assets. 39.75 SECS 0.0 SECS
On the other hand, capital expenditure involves all such expenditure incurred for the  AVG. SOLVING TIME  FASTEST SOLVING TIME
acquisition of land, buildings and creation of other fixed assets. Explanation :

Fiscal drag is a situation where inflation or income growth moves taxpayers into higher tax
Knowledge Box brackets. This in effect increases government tax revenue without actually increasing tax rates.
Fiscal drag can be seen as an automatic fiscal stabiliser because it controls a rapidly expanding
Revenue deficit: It is the excess of the total revenue expenditure of the government over its total economy from overheating. So, statement 1 is correct.
revenue. Thus, The increase in taxes when income increases reduces aggregate demand and consumer
Revenue deficit = Revenue expenditure - Revenue Receipts spending. This is because increase in income pushes the consumer to a higher tax bracket
Primary deficit: It is the difference between the government’s expenditure requirements and its and thus, a larger share of their income now goes to taxes. This leads to deflationary pressure, or
receipts without taking into account the expenditure incurred on interest payments on loans taken drag, on the economy. So, statement 2 is correct
during the previous years. Thus,
Primary deficit = Fiscal deficit – Interest payments So, both the Statement-I and Statement-II are correct and Statement-II is the correct explanation
Fiscal deficit: It is the excess of the government's total expenditure over its total revenue, for statement I.
excluding borrowings. Thus, Therefore, option (a) is the correct answer.
Fiscal deficit = Total expenditure (Revenue + Capital) - Total Revenue (revenue receipts +
capital receipts), excluding borrowings Question 67. + 2.0 - 0.66
Relevance: According to the Controller General of Accounts (CGA), the effective revenue deficit for Consider the following statements with reference to the Harmonised Coding System:
FY 2022-23 was 2.8% of the Gross Domestic Product (GDP). 1. It is developed by the World Trade Organisation for the harmonisation of customs procedures.
2. It is a 10 digit identification code with first two digits denoting the product’s place of origin.
Question 66. + 2.0 - 0.66 3. It is used by the countries to identify the rate of tax applicable to a specific product.
Consider the following statements: Which of the statements given above is/are correct?
Statement-I: Fiscal drag acts as an automatic stabiliser in the economy.
A. 1 only
Statement-II: Fiscal drag leads to decline in aggregate demand when income of the consumer increases.
 B. 3 only
Which one of the following is correct in respect of the above statements?
C. 2 and 3 only
  A. Both the Statement-I and Statement-II are correct and Statement-II is the correct D. 1 and 3 only
explanation for statement I
Question Analytics
Both Statement-I and Statement-II are correct but Statement-II is not the correct
B. 739 USERS 179 USERS 560 USERS 27.7 SECS
explanation for Statement-I
C. Statement-I is correct but Statement-II is incorrect ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME
D. Statement-I is incorrect but Statement-II is correct 30.51 SECS 0.0 SECS
Question Analytics
Other facts about the Harmonized Commodity Description and Coding System:
Explanation :
HSN numbers exist for each commodity in every country and the number remains the same for
almost all goods.
The Harmonized Commodity Description and Coding System generally referred to as India has been a member of the WCO since 1971. It initially employed six-digit HSN codes to
"Harmonized System" or simply "HS" is a multipurpose international product nomenclature classify merchandise for Customs as well as Central Excise duties. To make the codes more
developed by the World Customs Organisation (WCO). The HS contributes to the precise, the Customs and Central Excise authorities went on to add two more digits. This resulted
harmonisation of customs and trade procedures and the non-documentary trade data in an eight-digit HSN classification.
interchange in connection with such procedures, thus reducing the costs related to international Almost all goods in India are classified using the HSN classification code, which facilitates the
trade. So, statement 1 is not correct. use of HSN numbers for calculations of the Goods and Service Tax (GST). The number is
The Harmonized System is governed by “The International Convention on the Harmonized currently being used to categorise goods to compute VAT (Value Added Tax).
Commodity Description and Coding System”. The HSN number must be clearly mentioned on GST invoices when preparing Tax Invoices for
It comprises more than 5,000 commodity groups. It is a six-digit identification code. Of the six GST.
digits, the first two denote the HS Chapter, the next two give the HS heading and the last two
give the HS subheading. So, statement 2 is not correct.
Question 68. + 2.0 - 0.66
Consider the following statements with reference to the monetised deficit in India:
1. It results in the increase in net holdings of treasury bills by the Reserve Bank of India (RBI).
2. It can lead to increase in inflation and decline in the value of Indian Rupee.
A. 1 only
B. 2 only
  C. Both 1 and 2
D. Neither 1 nor 2
Question Analytics
It is also extensively used by governments, international organisations and the private sector for ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME
many other purposes such as internal taxes, trade policies, monitoring of controlled goods, rules
50.42 SECS 0.0 SECS
of origin, freight tariffs, transport statistics, price monitoring, quota controls, compilation of
national accounts and economic research and analysis.
HSN classification is widely used for taxation purposes by helping to identify the rate of Explanation :
tax applicable to a specific product in a country that is under review. It can also be used in
Monetised deficit is the monetary support the Reserve Bank of India (RBI) extends to the Centre
calculations that involve claiming benefits. So, statement 3 is correct.
as part of the government's borrowing programme. In other words, the term refers to the
Therefore, option (b) is the correct answer. purchase of government bonds by the Central Bank to finance the spending needs of the
Knowledge Box government.
The monetized deficit results in the increase in the net holdings of treasury bills by the RBI income. This is usually achieved by creating tax brackets that group taxpayers by income range.
and also the RBI contribution towards the government’s market borrowings increases. So, Thus, the tax liability of a person increases with increase in income under progressive taxation.
statement 1 is correct. So, statement 1 is correct.
Impact of monetised deficit: A progressive tax system tends to collect more taxes than flat taxes or regressive taxes, as the
Also known as debt monetisation, the exercise leads to an increase in total money supply highest percentage of taxes is collected from those with the highest amounts of money. So,
in the system and hence inflation, as RBI creates fresh money to purchase the bonds. statement 2 is not correct.
It also pushes up the interest rates in the economy, thereby making it difficult to service the Progressive taxation allows for increased government taxation and tax revenue without
loans. actually increasing taxes. Thus, it is a fiscal policy that results in fiscal drag, whereby
When there is excess supply of the currency, it could lead to a fall in rupee value, individuals are moved into higher tax brackets because of inflation or increased income. So,
leading to an outflow of foreign investment. A rupee depreciation would not be statement 3 is correct.
beneficial for the exports sector and would be costlier for the economy. So,
Question 70. + 2.0 - 0.66

Question 69. + 2.0 - 0.66
Consider the following statements with reference to Global Minimum Corporate Tax:
1. It is levied at a uniform rate of 15% on foreign profits of multinational corporations to reduce profit
An imposition of progressive taxation will likely result in: shifting and tax base erosions.
1. increase in the tax liability of the consumer with increase in income 2. A country is free to fix corporate tax rates above the determined level.
2. lower tax collection than flat tax rates as tax revenue varies with income 3. It will not be levied on the income base of multinational corporations operating in India.
3. increase in government tax revenue without any increase in taxes Which of the statements given above are correct?
 A. 1 and 2 only
A. Only one B. 2 and 3 only
  B. Only two C. 1 and 3 only
C. All three D. 1, 2 and 3
D. None Question Analytics
Question Analytics 2069 USERS 1299 USERS 770 USERS 16.4 SECS
52.57 SECS 0.0 SECS
57.64 SECS 0.0 SECS
Explanation :
The Global Minimum Corporate Tax (GMT) is a uniform minimum tax rate across the board on
A progressive tax involves a tax rate that progresses with increase in taxable income. It a specified corporate income base. The Organisation for Economic Cooperation and Development
imposes a lower tax rate on low-income earners and a higher tax rate on those with a higher (OECD) proposed a minimum tax of 15% on large multinational corporations' foreign
profits. Through lower tax rates that cause corporate profit shifting and tax base erosion, the 42.03 SECS 0.0 SECS
GMT framework seeks to deter nations from engaging in tax competition. So, statement 1 is
correct.
Explanation :
Two Pillar Plan: The largest and most successful Multinational Enterprises (MNEs) would
reallocate 25% of their excess profits to the market jurisdictions where their users and clients are
There are no WTO definitions of “developed” and “developing” countries. Members
located.
announce for themselves whether they are “developed” or “developing” countries. However,
It establishes a floor for tax competition by imposing a minimum 15% tax on corporate
other members can challenge the decision of a member to make use of provisions available to
profits. The home country would impose a top-up tax, bringing the effective rate to
developing countries. Developing countries in the WTO are designated on the basis of self-
15%, if a company's earnings were not taxed at all or were only lightly taxed in one of
selection although this is not necessarily automatically accepted in all WTO bodies. So, statement
the tax havens.
1 is correct.
The second pillar provides a minimum 15% tax on corporate profit, putting a floor on tax
Developing country status in the WTO brings certain rights. There are, for example, provisions
competition. The countries would have complete flexibility to fix corporate tax rates above
in some WTO Agreements which provide developing countries with longer transition
15%. GMT applies a standard minimum tax rate to a defined corporate income base worldwide.
periods before they are required to fully implement the agreement and developing countries can
So, statement 2 is correct.
receive technical assistance. That a WTO member announces itself as a developing country does
A total of 136 countries, including India, have agreed to join the agreement to impose the
not automatically mean that it will benefit from the unilateral preference schemes of some of
Global Minimum Corporate Tax as proposed by OECD. So, statement 3 is not correct.
the developed country members such as the Generalised System of Preferences (GSP). In
Therefore, option (a) is the correct answer. practice, it is the preference giving country which decides the list of developing countries that will
benefit from the preferences. So, statement 2 is not correct.
Relevance: 136 countries have agreed on Minimum Global Corporate Tax Rate as proposed by the
Organisation for Economic Cooperation and Development. Therefore, option (a) is the correct answer.

Consider the following statements: Which of the following countries are members of MERCOSUR trading bloc?
1. Member countries of the World Trade Organisation (WTO) are free to declare themselves as the 1. Argentina
‘developing’ country.
2. Brazil
2. Developing country status at WTO automatically gives benefits of the Generalised System of
3. Colombia
Preferences (GSP) to members.
4. Venezuela
5. Uruguay
 A. 1 only Select the correct answer using the code given below:
 B. 2 only
A. 1, 2 and 4 only
C. Both 1 and 2
B. 3 and 5 only
D. Neither 1 nor 2
  C. 1, 2, 4 and 5 only
Question Analytics
D. 2, 3 and 5 only
Question Analytics

A currency swap, sometimes referred to as a cross-currency swap, involves the exchange of
54.37 SECS 0.0 SECS interest—and sometimes of principal—in one currency for the same in another currency.
Interest payments are exchanged at fixed dates through the life of the contract.
Under currency swap, two contracting countries loan each other a specified amount in local
Explanation :
currencies or any major currency. The parties agree to swap back this amount at a specified date.
It uses the same exchange rate as agreed initially.
MERCOSUR is a trading bloc in the South America region comprising six member countries
These can be used to hedge against exchange-rate risk, speculate on currency moves and
of Latin America with Argentina, Brazil, Paraguay and Uruguay as founding members. So,
borrow foreign exchange at lower interest rates.
points 1, 2 and 5 are correct.
These are considered to be a foreign exchange transaction and are not required by law to be
Venezuela and Bolivia joined the grouping in 2012 and 2015 respectively. So, point 4 is
shown on a company's balance sheet. Companies doing business abroad often use currency swaps
correct.
to get more favourable loan rates in the local currency than if they borrowed money from a
It is modelled on the lines of the European Union and became a customs union in 1995. In 2004,
local bank.
India signed a Preferential Trade Agreement (PTA) with MERCOSUR, which came into effect in
2009. Therefore, option (d) is the correct answer.
It was established in 1991 with the objective to ensure free movement of goods, services, capital
Relevance: A $5 billion forex swap between the Reserve Bank of India (RBI) and banks reached its
and people across member countries.
maturity in October, 2023.
Colombia is not part of the MERCOSUR trading bloc. So, point 3 is not correct.
Therefore, option (c) is the correct answer. Question 74. + 2.0 - 0.66
Relevance: The trade commissioner of the European Union (EU) has cancelled a trip to Brazil to Consider the following statements with reference to the Special Rupee Vostro Account (SRVA):
finalise the trade deal with the South American group of Mercosur countries. 1. It is an account that domestic banks hold for foreign banks in the former’s domestic currency.
2. An Indian branch of foreign bank is not eligible to open SRVA in any foreign country.
Question 73. + 2.0 - 0.66
3. Balance of one SRVA can be transferred to the SRVA of another bank of the same country.
Which of the following statements is correct with reference to the ‘currency swap’?
A. It refers to the trading of goods and services in mutually agreed third currency.
A. Only one
B. It is the use of third-party intermediaries to circumvent restrictions in foreign investments.
  B. Only two
It is the act of buying shares of a multinational company in a local currency at mutually
C. C. All three
agreed prices.
It is an exchange of a loan between two parties in one currency for another at a specified D. None
 D.
date and exchange rate. Question Analytics
Question Analytics 1031 USERS 680 USERS 351 USERS 54.5 SECS
39.34 SECS 0.0 SECS
48.63 SECS 0.0 SECS
Explanation :
A Special Rupee Vostro Account (SRVA) is an account that domestic banks hold for foreign 3. U.S. dollar denominated debt is the largest component of the total external debt.
banks in the former’s domestic currency, the rupee. This allows domestic banks to provide How many of the above statements are correct?
international banking services to their clients who have global banking needs without having to be
 A. Only one
physically present abroad. The SRVA is an additional arrangement to the existing system that uses
freely convertible currencies and works as a complimentary system. So, statement 1 is correct.  B. Only two
For example, in case of India-Russia trade, payments in rupee for the export and import of C. All three
goods will go to the Vostro accounts. The owners and beneficiaries of this money will be
D. None
the exporters and importers in both the countries. The banks will keep the record of money
Question Analytics
transferred.
44.19 SECS 0.0 SECS
Explanation :
The Union Ministry of Finance has recently released its annual report on external debt of India.
The report stated that external debt stood at $624.7 billion, showing a marginal growth of 0.9% in
2023 as compared to 2022.
The Government of India has been publishing the status report on India’s external debt
annually since 1993.
For opening of SRVA, prior approval of the Reserve Bank of India (RBI) would be required. An At end-March 2023, long-term debt (with original maturity of above one year) was placed at
Indian branch of foreign bank is also eligible to open SRVA of headquarter branch/any other $496.3 billion (almost 80% of the total external debt), recording a decline of $1.1 billion over
branch situated in any foreign country. This is based on a condition that the Indian branch of the end-March 2022 level. On the other hand, the share of short-term debt (with original
foreign bank is an Authorised Dealer (AD) bank. So, statement 2 is not correct. maturity of up to one year) in total external debt increased to 20.6% at end-March 2023 from
Balance of one SRVA can be transferred to the SRVA of another bank of the same country 19.7% at end-March 2022. So, statement 1 is not correct.
only. Transfer from SRVA to Rupee Vostro account of the same country is allowed but not vice- External Commercial Borrowings (ECB), Non-Resident Indian (NRI) deposits, short-term trade
versa. So, statement 3 is correct. credits and multilateral loans together accounted for 89.6 percent of the total external debt of
India. So, statement 2 is not correct.
U.S. dollar-denominated debt remained the largest component of India’s external debt, with a
Therefore, option (b) is the correct answer. share of 54.6% at end-March 2023, followed by debt denominated in the Indian rupee (29.8%),
Relevance: Russian banks have opened rupee vostro accounts with authorised dealer banks in India to SDR (6.1%), yen (5.7%) and the euro (3.2%). So, statement 3 is correct.
enable rupee trade between the two countries.

Question 75. + 2.0 - 0.66
Relevance: An annual report of the Union Ministry of Finance has revealed that India's external debt
With reference to the external debt position of India, consider the following statements:
declined to 18.9 percent of GDP at the end of March 2023 from 20 percent last year.
1. Short-term debt with maturity of upto one year constituted the majority of the external debt.
2. External Commercial Borrowings alone accounted for almost 90% of the total external debt.
Question 76. + 2.0 - 0.66
With reference to the exchange rate, consider the following statements: Even if one compares India with countries that registered similar output growth rate during this
period, India’s inflation rate has been higher on average. So, statement 2 is correct.
1. A fall in the value of the Nominal Effective Exchange Rate (NEER) makes imports more expensive.
2. The divergence in the values of the NEER and Real Effective Exchange Rate (REER) indicates high Therefore, option (c) is the correct answer.
inflation rate in India. Relevance: In recent years, India has seen a growing divergence in the values of the NEER and REER.
A. 1 only Question 77. + 2.0 - 0.66
With reference to the ‘Equalisation Levy,’ consider the following statements:

B. 2 only
1. It is a type of direct tax that is levied on the amount paid to non-residents who own or manage an e-
  C. Both 1 and 2
commerce facility.
D. Neither 1 nor 2
2. Online advertisements are covered under the ambit of equalisation levy.
Question Analytics
ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME A. 1 only
47.18 SECS 0.0 SECS

 B. 2 only
 C. Both 1 and 2
Explanation : D. Neither 1 nor 2

Question Analytics
The Nominal Effective Exchange Rate (NEER) and the Real Effective Exchange Rate 1957 USERS 1454 USERS 503 USERS 28.5 SECS
(REER) are among the indicators of international competitiveness of a domestic currency.
The NEER is a trade-weighted currency index. A rise in the NEER indicates an appreciation of the
45.0 SECS 0.0 SECS
local currency against a weighted basket of currencies of its major trading partners.
The REER is the NEER adjusted for inflation i.e. the NEER is adjusted by the ratio of domestic  AVG. SOLVING TIME  FASTEST SOLVING TIME
prices to foreign prices to give the REER. Explanation :
The REER is interpreted as the quantity of domestic goods required to purchase one unit of
a given basket of foreign goods. Equalisation Levy or Google tax, as it is often called, was introduced in India in 2016, with the
When the value of NEER falls, it points to a nominal depreciation in the value of the rupee. intention of taxing the digital transactions i.e. the income accruing to foreign e-commerce
While an increase in the value of REER indicates an appreciating rupee in real terms. When the companies from India.
value of the currency is falling in nominal terms, it makes imports more expensive. So, Equalisation Levy is a direct tax, which is withheld at the time of payment by the service
statement 1 is correct. recipient.
The rising REER points to an overvalued rupee–indicating the possibility of further While it was initially levied at 6% of the gross consideration on online advertisements and digital
depreciation so as to fall in line with macroeconomic fundamentals. advertising space, its scope was widened in 2020.
In recent years, India has seen a growing divergence in the values of the NEER and REER – It is levied at 2% on the consideration amount paid to non-residents who own, operate or
particularly due to higher prices in India as compared to its export partners. The phenomenon manage an e-commerce facility or platform. So, statement 1 is correct.
of REER appreciation despite NEER depreciation is a consequence of domestic prices rising Companies have to file the equalisation levy statement by June 30 of a financial year.
much faster than the international prices. In terms of average inflation rate in CPI between Equalisation Levy is aimed at taxing business to business transactions.
April 2019 and June 2022, India ranked 5th in the list of 58 countries during the same period. There are two conditions to be met to be liable for equalisation levy:
The payment should be made to a non-resident service provider; and A black swan is an unpredictable event that is beyond what is normally expected of a
The annual payment made to one service provider exceeds Rs. 1,00,000 in one financial situation and has potentially severe consequences.
year. Black swan events are characterised by their extreme rarity, severe impact and the widespread
Currently, the following services are covered under the ambit of equalisation levy: insistence they were obvious in hindsights. It can cause catastrophic damage to an economy by
Online advertisement. So, statement 2 is correct. negatively impacting markets and investments, but even the use of robust modelling cannot
Any provision for digital advertising space or facilities/ service for the purpose of online prevent a black swan event.
advertisement Reliance on standard forecasting tools can both fail to predict and potentially increase
vulnerability to black swans by propagating risk and offering false security.
Knowledge Box Therefore, option (b) is the correct answer.
Knowledge Box
The Central Board of Direct Taxes (CBDT) has introduced fresh norms for filing of statements
Black Swan event:
for equalisation levy by companies that would allow the tax commissioner to reject returns that
they deem to be invalid and has said that personal appearance of assessees for clarifications is not The term was popularised by the book, The Black Swan, by Nassim Nicholas Taleb.
needed. Some of the major Black Swan Events in the past are:
The provisions are part of the Centralised Processing of Equalisation Levy Statement Scheme, Sub prime crisis: sudden crash in the booming housing market in the US (2008)
2023 notified by the CBDT recently. The fall of the Soviet Union (1991)
Terrorist attack in the US on September 11, 2001
Relevance: The Central Board of Direct Taxes has introduced fresh norms for filing of statements for
equalisation levy by companies.
Question 79. + 2.0 - 0.66
Question 78. + 2.0 - 0.66 Which of the following is/are an example(s) of Overseas Direct Investment by an Indian
In the context of economy, a ‘Black Swan event’ refers to a/an: individual/company?
1. An Indian company engaged in the smartphone manufacturing business sets up an overseas company
manipulative scheme to boost the price of a security through fake recommendations based
A. to expand its operations
on misleading statements
highly improbable and unexpected event that has a severe and widespread economic 2. A citizen of India invests in an overseas company engaged in the manufacturing of shoes
  B.
impact 3. An Indian company acquires the shares of a foreign company through market purchase
C. illegal practice of trading that takes place outside the purview of the stock exchanges Select the correct answer using the code given below:
D. sudden spike in stock prices caused by market manipulation and insider trading
 A. 1 only
Question Analytics
B. 1 and 2 only
C. 2 and 3 only
 D. 1, 2 and 3
35.66 SECS 0.0 SECS
Question Analytics
 AVG. SOLVING TIME  FASTEST SOLVING TIME 1773 USERS 753 USERS 1020 USERS 33.4 SECS
Explanation :
52.97 SECS 0.0 SECS

Explanation :   A. 1-3-2-4
B. 2-4-3-1
Overseas Direct Investment (ODI) is an investment made outside India in a Joint Venture (JV) or
Wholly Owned Subsidiary (WOS) either under Automatic Route or Approval Route. C. 2-3-4-1
The ODI is investment made by contribution to capital, subscription to memorandum of a foreign D. 4-3-2-1
company, or acquisition of existing shares of a foreign entity by market purchase, private Question Analytics
placement or stock exchange. So, point 3 is correct. 2566 USERS 1874 USERS 692 USERS 61.2 SECS
Example 1: Indian Company ABC Pvt. Ltd. engaged in the smartphone manufacturing
business sets up an overseas company to expand its operations and leverage on the
cheap labour costs of the host country. So, point 1 is correct. 56.07 SECS 0.0 SECS
Example 2: Mr. X, a resident individual, finds potential in an overseas company and  AVG. SOLVING TIME  FASTEST SOLVING TIME
wants to invest and contribute to the growth of the company. So, point 2 is correct.
Explanation :
Foreign Exchange Management Act, 1999 provides powers to the Reserve Bank of India to
specify, in consultation with the Government of India, the classes of permissible capital account
Economic integration can be classified into five additive levels, each present in the global landscape:
transactions and limits up to which foreign exchange is admissible for ODI transactions.
Therefore, option (d) is the correct answer. Free Trade: Tariffs (a tax imposed on imported goods) between member countries are
significantly reduced and some are abolished altogether. Each member country keeps its tariffs
Knowledge Box
regarding third countries, including its economic policy. The general goal of free trade agreements
is to develop economies of scale and comparative advantages, promoting economic efficiency.
An Indian Party is also prohibited from investing in an overseas entity, which offers financial
Custom Union: Sets common external tariffs among member countries, implying that the same
products linked to the Indian Rupee (such as non-deliverable trades involving foreign currency,
tariffs are applied to third countries; a common trade regime is achieved. They are particularly
stock indices linked to the Indian market, rupee exchange rates, etc.).
useful to level the competitive playing field and address the problem of re-exports where
Any investments in these entities need prior approval from the Reserve Bank of India.
importers can be using preferential tariffs in one country to enter (re-export) another country with
Indian Parties are not permitted to invest in a foreign entity engaged in real estate business
activity.
Relevance: The Reserve Bank of India (RBI) has expressed concern over the use of the Overseas Direct
Investment (ODI) route by some entities to purchase real estate assets.
Question 80. + 2.0 - 0.66
In the context of international trade, which of the following is the correct sequence of the order of
economic integration?
1. Free Trade
2. Common Market
3. Customs Union
4. Economic Union
which it has preferential tariffs. Movements of capital and labour remain restricted.   C. An unanticipated rise in earnings due to trade restrictions on competitors
D. Acceptance of a large sale order for capital goods by a firm

Question Analytics
51.55 SECS 0.0 SECS
Explanation :
A windfall tax is a tax levied by governments against certain industries when economic
conditions allow those industries to experience significantly above-average or windfall profits.
Windfall taxes are primarily levied on companies in the targeted industry that have benefited the
most from the economic windfall, most often commodity-based businesses.
Common Market: Services and capital are free to move within member countries, expanding ‘Windfall profits’ refer to an unanticipated spike in earnings of an entity resulting from an
scale economies and comparative advantages. However, each national market has its own exogenous event and not resulting from a business decision.
regulations, such as product standards, wages and benefits. It will be levied on unanticipated rise in profits due to the trade restriction on a competitor.
Economic Union (single market): All tariffs are removed for trade between member countries, Examples of windfall profits include profits of oil companies due to restrictions on Russia. As a
creating a uniform market. There are also free movements of labour, enabling workers in a response to Russia’s actions on Ukraine, several Western countries moved to stop or curtail their
member country to move and work in another member country. Monetary and fiscal policies energy imports from Russia. This led to sharp increases in fossil fuel prices as countries went to
between member countries are harmonised, which implies a level of political integration. A look for other suppliers for its energy needs, culminating in major profits for oil companies.
further step concerns a monetary union where a common currency is used, such as the European Windfall taxes may also apply to individuals who gain sudden riches from receiving a
Union (Euro). significant sum of money through a gift, inheritance, or through game-show, gambling or
Political Inion: Represents the potentially most advanced form of integration with a common lottery winnings. In many cases, inheritances, gifts from family members or friends and life
government and where the sovereignty of a member country is significantly reduced. Only found insurance payouts are tax-free to the recipient. However, federal, state, or local taxes may be owed
within nation-states, such as federations where a central government and regions (provinces, by the giver or by the estate from which the inheritance is received. Any wealth gained from
states, etc.) have a level of autonomy over well-defined matters such as education. playing the lottery or gambling is considered taxable income.
So, the correct chronological order of economic integration is: Free Trade - Customs Union -
Common Market - Economic Union.
Relevance: The Union Government hiked the windfall profit tax levied on domestically-produced crude
Therefore, option (a) is the correct answer. oil as well as on the export of diesel and Aviation Turbine Fuel (ATF).

Which one of the following transactions is most likely to attract a ‘windfall tax’ in India? Consider the following:
A. A sudden increase in revenue due to use of digital marketing of products 1. Sale of shares of an Indian company to a Chinese customer
2. Amount raised by Indian firm through External Commercial Borrowings
B. Purchase of large amount of assets for business expansion
3. Private remittances or transfers
How many of the above are included in the capital account of the Balance of Payments (BoP)? 1. Most consumer goods are procyclic in nature as their value increases when the economy is expanding.
2. The Countercyclical Capital Buffer ensures decrease in credit supply by banks during economic
A. Only one
boom.
  B. Only two
C. All three
A. 1 only
D. None
Question Analytics B. 2 only
2212 USERS 1330 USERS 882 USERS 41.1 SECS  C. Both 1 and 2
ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME D. Neither 1 nor 2
52.83 SECS 0.0 SECS Question Analytics

Explanation :
35.79 SECS 0.0 SECS
Capital account transactions of the Balance of Payments (BoP) are two-way and multiple transactions.
The capital account keeps track of the net change in a nation's assets and liabilities during a year.  AVG. SOLVING TIME  FASTEST SOLVING TIME
Explanation :
Capital Account records all international transactions of assets. An asset is any one of the forms in
which wealth can be held, for example: money, stocks, bonds, Government debt, etc. The An economic indicator is a macroeconomic measurement used by analysts to understand current
purchase of assets is a debit item on the capital account. If an Indian buys a UK Car Company, and future economic activity and opportunity.
it enters capital account transactions as a debit item (as foreign exchange is flowing out of India). Economic indicators can have one of three different relationships to the economy: Countercyclical
On the other hand, the sale of assets like the sale of shares of an Indian company to a Chinese (indicator and economy move in opposite directions), acyclic (indicator has no relevance to the
customer is a credit item on the capital account. So, point 1 is correct. state of the economy), or procyclic.
External Commercial Borrowings (ECB) refers to commercial loans in the form of bank Procyclic refers to a condition of a positive correlation between the value of a good, a service, or
loans, buyers’ credit, suppliers’ credit and securitized instruments availed from non-resident an economic indicator and the overall state of the economy. In other words, the value of goods,
lenders with a minimum average maturity of three years. It is part of the capital account of the services, or indicators tend to move in the same direction as the economy, growing when the
Balance of Payments (BoP). So, point 2 is correct. economy grows and declining when the economy declines. Some examples of procyclical
Current Account is the record of trade in goods and services and transfer payments. Transfer economic indicators are Gross Domestic Product (GDP), labour and marginal cost. Most
payments are the receipts that the residents of a country get for ‘free’, without having to provide consumer goods are also considered procyclic because consumers tend to buy more discretionary
any goods or services in return. They consist of gifts, remittances and grants. They could be goods when the economy is in good shape. Countercyclical means the value of the good, service
given by the government or by private citizens living abroad. So, point 3 is not correct. or indicator moves in the opposite direction as the economy. So, statement 1 is correct.
The Countercyclical Capital Buffer (CCCB) aims to ensure that banking sector capital
So, only two of the above are included in the capital account of the Balance of Payments (BoP) of
requirements take account of the macro-financial environment in which banks operate. It aims to
India.
soften the cyclical effects of standard capital requirements by slowing down the credit supply
growth during economic booms and by providing additional capital to continue loan provision
during crisis. The CCCB ensures that central banks (RBI) can direct bankers to release more
Question 83. + 2.0 - 0.66 credit by freeing up capital, when distress situations arise. So, statement 2 is correct.
Therefore, option (c) is the correct answer. to $98.51 billion in the same period.
Question 84. + 2.0 - 0.66
Which of the following statements is/are correct with reference to India’s foreign trade?
1. China has been the top export destination for India for the last 5 years.
2. Petroleum products were the most exported commodity from India in 2022.
3. Software and business services together constitute more than 50 percent of India’s total services
exports in 2022-23.
A. 1 only
B. 2 only India achieved an all-time high annual merchandise export in FY22. However, the ripple effect of
  C. 2 and 3 only the global trade slowdown has started reflecting in India’s merchandise export growth, wherein
moderation in pace is observed in 2022. Petroleum, Oil and Lubricants (POL) exports
D. 1, 2 and 3
constituted about 21.1 per cent and non-POL exports were 78.9 percent of total exports during
Question Analytics FY23 (until December 2022). Owing to the rise in global crude oil prices, petroleum products
continued to be the most exported commodity in FY22 and April-December, 2022, followed by
ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME gems and jewellery, organic & inorganic chemicals and drugs & pharmaceuticals. So, statement 2
is correct.
48.72 SECS 0.0 SECS
India maintained its dominance in the world services trade in FY22. Software and business
 AVG. SOLVING TIME  FASTEST SOLVING TIME services together constitute more than 60 percent of India’s total services exports. While
Explanation : strong revenues in major information technology (IT) companies from various segments such as
retail and consumer business; communications and media; healthcare; and banking, financial and
The United States of America remained the top export destination in April-November, 2022
insurance services drove the growth in software exports. So, statement 3 is correct.
followed by the United Arab Emirates and the Netherlands. The Netherlands has displaced
China from the 3rd spot as India's exporting partner. India has diversified its export destinations Therefore, option (c) is the correct answer.
over time. So, statement 1 is not correct. Relevance: According to provisional data of the Union Ministry of Commerce and Industry, the U.S.
China was India's top trading partner from 2013-14 till 2017-18 and also in 2020-21. has emerged as India's biggest trading partner in 2022-23.
According to the data of the Ministry of Commerce and Industry, the U.S. was India's
biggest trading partner in 2022-23. The bilateral trade between India and the U.S. has
Question 85. + 2.0 - 0.66
increased by 7.65% to $128.55 in 2022-23 as against $119.5 billion in 2021-22.
RoDTEP scheme, recently seen in the news, aims to:
Exports to the USA rose by 2.81% to $78.31 billion in 2022-23 as against $76.18 billion
in 2021-22, while imports grew by about 16% to $50.24 billion. On the other hand, exports A. facilitate bank loans for setting up of greenfield enterprises
to China dipped by about 28% to $15.32 billion in 2022-23, while imports rose by 4.16%
B. provide old age protection and social security to unorganised workers
C. facilitate improved access to financial services to small and marginal farmers
 D. neutralise the taxes and duties on exported goods

Question Analytics
1089 USERS 771 USERS 318 USERS 15.8 SECS A. 1 only
ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME   B. 2 only
34.0 SECS 0.0 SECS C. 1 and 3 only

D. 1, 2 and 3
Explanation : Question Analytics

Remission of Duties or Taxes on Export Products (RoDTEP) scheme has been introduced by
the Government of India with an objective to neutralise the taxes and duties suffered on
49.18 SECS 0.0 SECS
exported goods which are otherwise not credited or remitted or refunded in any manner and
remain embedded in the export goods. This scheme provides for rebates of all hidden Central,  AVG. SOLVING TIME  FASTEST SOLVING TIME
State and Local duties/taxes/levies on the goods exported which have not been refunded under any Explanation :
other existing scheme.
RoDTEP also includes the prior stage cumulative indirect taxes on goods. It is a World Trade Tapering refers to the policy of gradually withdrawing the monetary stimulus by the United
Organisation (WTO) compliant Scheme and follows the global principle that the taxes/duties States Federal Reserve. It is initiated after the quantitative easing policies have stabilised an
should not be exported; they should be either exempted or remitted to exporters, to make the economy and may include changing the discount rate or reserve requirements. In the United
goods competitive in the global market. States, the Federal Reserve will also reduce its asset holdings.
Illustrative taxes that are compensated include: Tapering also leads to an increase in interest rates. So when the US Federal Reserve says that
Value Added Tax and Excise duty on the fuel used in self-incurred transportation costs; on tapering is near, it is a general indicator of rate hikes in the near future.
the fuel used in generation of electricity via power plants; on the fuel used in running of The hikes in interest rates lead to a rise in bond yields for US treasuries. This in turn
machineries/plant. decreases the difference in rate between Indian bonds and US bonds making the latter more
Mandi Tax/ Municipal Taxes/ Property Taxes. attractive thus leading to FII outflows. Thus, there is a withdrawal of funds by Foreign
Electricity duty on purchase of electricity. Institutional Investors (FIIs) from emerging markets like India to the US. So, point 3 is
Stamp duty on export documents; etc. not correct.
The withdrawal of funds by FIIs from India makes the rupee weaker as the demand for
rupee falls while the demand for US dollar increases. This prompts the Reserve Bank of
Relevance: The Union Government has extended support under the scheme for Remission of Duties and India (RBI) for a rate hike in India. If the rupee falls significantly, the RBI may be forced
Taxes on Exported Products (RoDTEP) till 30 June 2024. to sell dollars to help shore up the domestic currency. This depletes the domestic Forex
reserve. So, point 1 is not correct.
Question 86. + 2.0 - 0.66 Increase in interest rate by the US can lead to a decline in demand for risky assets such as
Which of the following are most likely the impacts of tapering by the United States Federal Reserve on equities in India. A decline in demand will lead to a decline in stock prices. So, point 2 is
the Indian economy? correct.
1. Increase in the forex reserves of India Therefore, option (b) is the correct answer.
2. Decline in stock prices in India
Knowledge Box
3. Increase in investment by Foreign Institutional Investors (FIIs) in India
Select the correct answer using the code given below: Quantitative Easing (QE) is a form of monetary policy in which a Central Bank, like the U.S.
Federal Reserve, purchases securities from the open market to reduce interest rates and increase
the money supply. Therefore, option (a) is the correct answer.
Quantitative easing creates new bank reserves, providing banks with more liquidity and Relevance: The high tax buoyancy in recent years, even with falling growth rates, is a result of
encouraging lending and investment. In the United States, the Federal Reserve implements QE improved compliance and formalisation in the Indian economy.
policies.
Question 88. + 2.0 - 0.66

Relevance: The United States of America (USA) Federal Reserve has been hiking the interest rates in
order to tame inflation. Which of the following is/are the most likely impacts if the international trade settlement is conducted in
Indian rupees?
Question 87. + 2.0 - 0.66 1. Mitigation of currency volatility for Indian businesses
Consider the following statements: 2. Lower transaction costs in cross-border trade
1. Tax buoyancy indicates increase in tax revenue without any increase in the tax rate in the economy. 3. Reduction in holding of foreign reserves by the Reserve Bank of India (RBI)
2. Tax elasticity measures the changes in government's tax revenue with respect to the changes in its Select the correct answer using the code given below:
Gross Domestic Product (GDP).
A. 1 only
B. 1 and 2 only
 A. 1 only C. 2 and 3 only
B. 2 only  D. 1, 2 and 3
C. Both 1 and 2 Question Analytics
 D. Neither 1 nor 2 1950 USERS 1185 USERS 765 USERS 9.7 SECS
Question Analytics ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME

49.67 SECS 0.0 SECS
40.17 SECS 0.0 SECS Explanation :

Internationalisation is a process that involves increasing the use of the rupee in cross-border
Explanation :
transactions. It involves promoting the rupee for import and export trade and then other current
account transactions, followed by its use in capital account transactions. The internationalisation
Tax buoyancy explains the relationship between the changes in government’s tax revenue growth
of the currency requires further opening up of the currency settlement and a strong swap and forex
and the changes in the Gross Domestic Product (GDP). It refers to the responsiveness of tax
market.
revenue growth to changes in GDP.
The use of the rupee in cross-border transactions mitigates currency risk for Indian businesses.
When a tax is buoyant, its revenue increases without increasing the tax rate. So,
Protection from currency volatility not only reduces the cost of doing business, it also enables
better growth of business, improving the chances for Indian businesses to grow globally.
Tax Elasticity refers to changes in tax revenue in response to changes in tax rate. For
Reduction in currency risk can reduce the cost of doing business and can hence help in making
example, how tax revenue changes if the government reduces corporate income tax from 30 per
exports more competitive in the global market. So, points 1 and 2 are correct.
cent to 25 per cent indicates tax elasticity. So, statement 2 is not correct.
As the use of the rupee becomes significant, the bargaining power of Indian businesses
Tax buoyancy (TB), as opposed to tax elasticity, includes all additional revenue measures (ARMs)
would improve, adding weight to the Indian economy and enhancing India’s global stature
during any fiscal year.
and respect. The National Anti-Profiteering Authority (NAA) was set up under Section 171 of the Central
While reserves help manage exchange rate volatility and project external stability, they impose a GST Act, 2017 to check whether trade and industry were passing on rate reductions under the
cost on the economy. Internationalisation of the rupee reduces the need for holding foreign GST to consumers. It ensures that traders are not realising unfair profit by charging high prices
exchange reserves. Reducing dependence on foreign currency will make India less vulnerable to from the consumers in the name of GST.
external shocks. So, point 3 is correct.
The internationalisation of the Indian rupee can help to integrate the Indian financial system with
the global financial system. This could lead to increased investment and economic growth.
Question 90. + 2.0 - 0.66
Consider the following statements with reference to the tax multiplier:
Relevance: The Reserve Bank of India’s (RBI) Inter-Departmental Group (IDG) has pushed for a
1. The value of the tax multiplier is always negative.
roadmap towards the internationalisation of the rupee.
2. It is smaller in value compared to the government spending multiplier.

Question 89. + 2.0 - 0.66
Which one of the following statements is correct with reference to the ‘anti-profiteering’? A. 1 only
B. 2 only
It is the practice of increasing profits whereby traders manipulate prices of goods in their
A.
account books.  C. Both 1 and 2
It is an illegal practice whereby a business does not pass the benefits of the Goods and D. Neither 1 nor 2
 B.
Service Tax (GST) rate to the consumer.
Question Analytics
It is the provisioning made by firms who suppress profits by setting aside money for
C. 978 USERS 395 USERS 583 USERS 7.3 SECS
unforeseeable expenses.
 D. It is the practice whereby firms reduce their actual profits by transferring assets to
subsidiary firms without accepting any payment.
32.3 SECS 0.0 SECS
Question Analytics
1638 USERS 858 USERS 780 USERS 43.4 SECS  AVG. SOLVING TIME  FASTEST SOLVING TIME
Explanation :
45.04 SECS 0.0 SECS The tax multiplier measures how Gross Domestic Product (GDP) is impacted by changes in
taxation. The value of tax multiplier is always negative because a tax cut will cause an increase
in consumption and output, while an increase in taxes will lead to a reduction in consumption
Explanation :
and output in the economy. So, statement 1 is correct.
Under anti-profiteering provisions, it is illegal for a business to not pass on benefits of the The government spending multiplier measures how GDP of an economy is impacted by
Goods and Service Tax (GST) rate to the end consumer and thereby indulging in illegal government spending. The tax multiplier is smaller in absolute value compared to the
profiteering. Any reduction in rate of GST tax on any supply of goods or services or the benefit of government spending multiplier. This is because an increase in government spending directly
input tax credit should have been passed on to the recipient by way of commensurate reduction in affects total spending whereas taxes enter the multiplier process through their impact on
prices. disposable income, which influences household consumption (which is a part of total spending).
The wilful action of not changing the final price of the good or service by various means, despite So, statement 2 is correct.
the reduction in the rate of the tax for that particular good or service, is amount to “profiteering”.
Consider the following statements with reference to the Voluntary Retention Route: It is a form of tax evasion whereby capital of India goes out to a tax haven country to be invested in
1. It enables the Foreign Portfolio Investors (FPIs) to invest in debt markets in India. shell companies. The money is then reinvested in the form of Foreign Direct Investment (FDI) in India.
2. Any FPI registered with the Security Exchange Board of India (SEBI) is eligible to participate This is the most likely description of:
through this route.

  A. Round Tripping
3. The minimum retention period for investment under this route is 3 years.
B. Treaty Shopping
C. Transfer Mispricing
A. Only one D. Base Erosion and Profit Shifting
B. Only two Question Analytics
 C. All three 2533 USERS 2141 USERS 392 USERS 18.1 SECS
D. None ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME
Question Analytics 47.37 SECS 0.0 SECS

Explanation :
35.03 SECS 0.0 SECS
Round tripping refers to the practice where capital belonging to India goes out to a tax haven
country where it is used to set up shell companies. The money is then reinvested back in India
Explanation : in the form of Foreign Direct Investment (FDI). The profit out of such investment cannot be taxed
in India as the capital is coming from tax haven.
The Voluntary Retention Route was a separate channel introduced by the Reserve Bank of India
(RBI) in 2019 to enable the Foreign Portfolio Investors (FPIs) to invest in debt markets in Therefore, option (a) is the correct answer.
India. So, statement 1 is correct.
Knowledge Box
Any FPI registered with the Securities and Exchange Board of India (SEBI) is eligible to
participate in the debt market through this route. They are eligible to invest in any Government
Securities i.e., Central Government dated Securities (G-Secs), Treasury Bills (T-bills) as well
as State Development Loans (SDLs). They can also invest in corporate bonds. So, statement 2
is correct.
However, RBI has imposed a limit of Rs 1.5 lakh crores on investments under this route and the
minimum retention period for investment is 3 years. So, statement 3 is correct.
The investments through this route are generally free from the regulatory norms applicable to FPI
investments in debt markets. However, to avail this benefit, the FPIs should voluntarily commit to
retain a required minimum percentage of their investments in India for a certain period.

These reserves act as a cushion against any potential balance of payment related crisis. In India,
Treaty shopping involves the attempt by a person to indirectly access the benefits of a tax treaty
RBI acts as the custodian of foreign reserves under the Reserve Bank of India Act, 1934.
between two jurisdictions without being a resident of one of those jurisdictions.
FCA consists of major global currencies, investments in US Treasury bonds, bonds of other
The main purpose behind treaty shopping is tax avoidance by routing investments
selected governments, deposits with foreign central and commercial banks. So, statement 1 is
through sham/conduit companies located in countries which have absence of taxation
correct.
system, capital gains, interest income under the Double Tax Avoidance Agreement
Reserve Tranche Position in the IMF: Subscription of quota consists of two components: foreign
(DTAA).
exchange component and domestic currency component.
Transfer mispricing occurs when one company sells goods or services to another related
A reserve tranche is a portion of the required quota of currency each member country must
company at an inflated or deflated price in order to allocate profits to a lower-tax jurisdiction.
provide to the IMF that can be utilised for its own purposes—without a service fee or economic
Because these transactions are internal to a multinational company, they are often not subject to
reform conditions. For any member country, out of the total quota, 25% should be paid in the
market pricing.
form of foreign currency or gold. Hence this is called a reserve tranche or gold tranche. The
Base Erosion and Profit Shifting (BEPS) refers to tax planning strategies used by multinational
remaining 75% can be in domestic currencies and it is called credit tranche. So, statement 2 is
enterprises that exploit gaps and mismatches in tax rules to avoid paying tax.
correct

Question 93. + 2.0 - 0.66
Consider the following statements with reference to the Foreign Reserves in India: Question 94. + 2.0 - 0.66
1. The Foreign Currency Assets (FCA) includes investments in US Treasury bonds and deposits with
Consider the following statements with reference to the composition levy in India:
foreign Central Banks.
1. It allows small taxpayers, with annual turnover less than Rs 50 lakh, to pay taxes every quarter.
2. The Reserve Tranche Position with the International Monetary Fund (IMF) must include 25% of the
2. It cannot be opted by non-resident taxpayers.
total quota in the form of foreign currency or gold.
A. 1 only
 A. 1 only
B. 2 only
B. 2 only
 C. Both 1 and 2
 C. Both 1 and 2
D. Neither 1 nor 2
D. Neither 1 nor 2
Question Analytics
Question Analytics
36.24 SECS 0.0 SECS
40.55 SECS 0.0 SECS
Explanation :
Explanation :
The composition levy is a scheme for payment of Goods and Service Tax (GST) available to small
Foreign exchange reserves refer to the reserves of the Reserve Bank of India (RBI) that are kept in
taxpayers whose aggregate turnover in the preceding financial year did not cross Rs. 75
the form Foreign Currency Assets (FCAs), gold, Special Drawing Rights (SDR) and Reserve
lakhs. The objective is to bring simplicity and to reduce the compliance cost for the small
Tranche Position with the International Monetary Fund (IMF).
taxpayers. Moreover, it is optional and the eligible person opting to pay tax under this scheme can output, the seller can reduce the tax that has already been paid on inputs and pay the balance
pay tax at a prescribed percentage of his turnover every quarter, instead of paying tax at amount.
normal rate. So, statement 1 is correct. For example, seller A bought the goods of amount Rs 18,000 and these goods attract GST @ 18%
In the case of the following States, the limit of turnover is Rs. 50 lakhs: Arunachal Pradesh, so the GST amount is Rs 3240. Now, seller A sold these goods for Rs 22,000 and this attracts GST
Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Himachal Pradesh. @18% or Rs 3960. In this case, the net GST payable will be (Rs 3960 -Rs 3240 = Rs 720) and the
A person opting for composition levy will have to pay tax on quarterly basis before 18th of the input tax credit is Rs 3240.
month succeeding the quarter during which the supplies were made.
Following persons are not allowed to opt for the composition scheme:
a casual taxable person or a non-resident taxable person. So, statement 2 is correct.
suppliers whose aggregate turnover in the preceding financial year crossed Rs. 75 lakhs Question 96. + 2.0 - 0.66
supplier who has purchased any goods or services from unregistered supplier unless he has Which one of the following statements is correct with reference to the 'Dutch Disease'?
paid GST on such goods or services on reverse charge basis
A. It refers to a severe recession that results from a sudden collapse of the banking system
supplier of services, other than restaurant service
There is no restriction on procuring goods from inter-state suppliers by persons opting for the B. It is an significant appreciation of the national currency due to resource exports
composition scheme.
C. It is the economic loss borne by individuals not directly involved in the market transactions
that creates negative externality.
 D. It is an uneven growth across sectors due to the discovery of natural resources
Question Analytics
Question 95. + 2.0 - 0.66 866 USERS 361 USERS 505 USERS 5.1 SECS
With reference to the Indian economy, ‘input tax credit’ refers to:
A. tax exemptions granted by government to small enterprises on purchase of inputs for first 30.24 SECS 0.0 SECS
five years or till it makes profit, whichever is earlier
B. tax paid by the seller/manufacturer when importing raw-materials and inputs  AVG. SOLVING TIME  FASTEST SOLVING TIME
Explanation :
tax paid by the seller on the purchase of goods, that can be used to reduce the tax liability
  C.
at the time of sale
Dutch Disease in economics refers to a phenomenon wherein a country witnesses uneven growth
D. a mechanism whereby businesses pass on the burden of increase in tax on the consumers across sectors due to the discovery of natural resources, especially large oil reserves.
by increasing prices
When a country discovers natural resources and starts exporting them to the rest of the world, it
Question Analytics
causes the exchange rate of the currency to appreciate significantly and this, in turn, discourages
exports from other sectors while encouraging the import of cheaper alternatives. Both phenomena
result from a higher local currency. Some examples of countries that have experienced Dutch
48.26 SECS 0.0 SECS disease are Great Britain, Canada, and Russia.
The term was first used by “The Economist” magazine in 1977 to explain the situation in
the Netherlands after the discovery of large natural gas deposits in the North Sea in 1959.
Explanation :
Input tax credit is the tax paid by business/seller on a purchase of goods and services that can
Question 97. + 2.0 - 0.66
be used to reduce its tax liability when it makes a sale. Thus, at the time of paying tax on
Consider the following pairs: So, only one of the above pairs is correctly matched.
Sl. Therefore, option (a) is the correct answer.

Report Released by
No. Relevance: According to UNCTAD’s World Investment Report 2023, Foreign Direct Investment (FDI)
in developing countries in Asia remained flat at $662 billion during 2022, as compared to the previous
Global Economic Prospect (GEP)
1. : World Economic Forum (WEF) year.
Report
2. Global Risk Report : World Bank

Question 98. + 2.0 - 0.66
United Nations Conference on Trade and Development
3. World Investment Report : With reference to ‘Social Bonds’, consider the following statements:
(UNCTAD)
1. They can only be issued by sovereign governments to maximise their investments in green projects.
How many of the above pairs are correctly matched?
2. They carry zero default risk in comparison to corporate bonds.
 A. Only one pair Which of the statements given above is/are correct?
B. Only two pairs

A. 1 only
C. All three pairs
B. 2 only
D. None
C. Both 1 and 2
Question Analytics
  D. Neither 1 nor 2
Question Analytics
ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME 1329 USERS 297 USERS 1032 USERS 15.6 SECS
33.42 SECS 0.0 SECS

 AVG. SOLVING TIME  FASTEST SOLVING TIME 37.05 SECS 0.0 SECS
Explanation :
The Global Economic Prospects (GEP) Report is released by the World Bank. It is released Explanation :
semi-annually and provides an analysis of the global economic situation, trends, and forecasts. It
Social bonds are a type of financial instrument issued to raise funds for projects and initiatives
covers a wide range of economic indicators and examines the prospects for both developed and
that have a positive social impact on society. It includes healthcare, education, affordable
developing economies. So, pair 1 is not correctly matched.
housing, poverty alleviation and environmental sustainability.
The Global Risks Report is an annual study published by the World Economic Forum ahead of
The Pimpri Chinchwad Municipal Corporation (PCMC) in Maharashtra's Pune, and United
the Forum’s Annual Meeting in Davos, Switzerland. It describes changes occurring in the global
Nations Development Programme (UNDP) in 2020 co created India's inaugural Social
risks landscape from year to year based on the work of the Global Risk Network. So, pair 2 is not
Impact Bond (SIB).
correctly matched.
Social bonds can be issued by a wide range of entities, such as governments, international
The World Investment Report is released by the United Nations Conference on Trade and
organisations, corporations, or non-governmental organisations. The issuers have to
Development (UNCTAD). It focuses on trends in Foreign Direct Investment (FDI) worldwide, at
demonstrate their credibility and capacity to deliver the social projects and report on their progress
the regional and country levels and emerging measures to improve its contribution to
and impact. So, statement 1 is not correct.
development. It also provides analysis on global value chains and the operations of multinational
Social bonds are not risk-free. They are subject to the same market and credit risks as any other
enterprises, with special attention to their development implications. So, pair 3 is correctly
bond. However, social bonds can offer competitive yields and diversification benefits, as well as
matched.
contribute to the achievement of the Sustainable Development Goals (SDGs). So, statement 2 is Dear currency: This term was popularised by economists in the early 1930s to show the opposite
not correct. of the cheap currency. When a government issues bonds, the money which flows from the
public to the government or the money in the economy in general is called dear currency, also
called as dear money. In the banking sector, it means a period of comparatively higher/costlier
Relevance: The National Bank for Agriculture and Rural Development (NABARD) recently issued its interest rate regime. Dear money refers to money that is hard to obtain (e.g. by borrowing)
inaugural social bonds with a total size of Rs 1,040.50 crore. because of abnormally high-interest rates. So, pair 3 is correctly matched.
So, only two of the above pairs are correctly matched.

Question 99. + 2.0 - 0.66
Consider the following pairs:
Sl. Type of
Description Question 100. + 2.0 - 0.66
No. Currency
Which one of the following statements best describes the practice of ‘friendshoring’?
Currency that quickly moves between financial markets of different
Hot currency :
countries It is a practice of relocating business operations to a neighbouring country with a shared
A.
border.
Heated currency : Currency whose value has appreciated by large margin in short period
It occurs when a business transfers its operations from a foreign country to its home
B.
Dear currency : Currency that is obtained at abnormally high interest rates country.
How many of the above pairs are correctly matched? It involves rerouting of supply chains to economically safe countries to avoid disruption to
  C.
the flow of business.
A. Only one pair It is an agreement between two countries to give preferential right of entry to certain
D.
products facilitated by reducing duties.
  B. Only two pairs
Question Analytics
C. All three pairs
D. None
Question Analytics
1603 USERS 761 USERS 842 USERS 18.6 SECS 47.13 SECS 0.0 SECS
ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME  AVG. SOLVING TIME  FASTEST SOLVING TIME
Explanation :
42.82 SECS 0.0 SECS
 AVG. SOLVING TIME  FASTEST SOLVING TIME ‘Friendshoring’ is a growing trade practice where supply chain networks are focused on
Explanation : countries regarded as political and economic allies. It happens when a government pushes
businesses to restructure supply chains, shifting production away from geopolitical rivals to
Hot currency: It is a currency that quickly and regularly moves between financial markets friendly powers. This is done to avoid disruption to the flow of business.
that ensures investors lock in the highest available short-term interest rates. It continuously shifts This practice arrived out of recent economic crises and strains on global supply chains caused by
from countries with low-interest rates to those with higher rates. So, pair 1 is correctly matched. various shocks to the global economy. These include the COVID-19 pandemic and Russia-
Heated currency: A term used in the forex market to denote the domestic currency which is Ukraine conflict.
under enough pressure (heat) of depreciation due to a hard currency’s high tendency of exiting
the economy (since it has become hot). It is also known as currency under heat or under
hammering. So, pair 2 is not correctly matched. Knowledge Box
Nearshoring describes the process of a company relocating business operations to a nearby

country, often with a shared border. It ensures faster speed to market and quicker transit from
manufacturers to customers. Nearshoring operations to neighbouring countries can also have
financial benefits. These include avoiding having to pay import tariffs on goods, as well as
cheaper shipping costs.
Reshoring, also known as inshoring or onshoring, is when a business transfers operations
back to its home country. This can be an attractive solution for companies whose supply chains
have been disrupted by geo-political events.
Relevance: The President of the European Central Bank noted that the governments of Western
countries are increasingly adopting industrial policies that promote “friendshoring” of strategic
industries.

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Therefore, option (b) is the correct answer.

GS Test 05 (IN5505) Report Print this page

Question 2. + 2.0 - 0.66

D. equal application of law under all circumstances  A. Only one

Explanation : ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME

Rule of law: 57.83 SECS 0.0 SECS

 AVG. SOLVING TIME  FASTEST SOLVING TIME

and are applied on a community or territory. them. So, statement 2 is correct.

the components of the Rule of Law.

4. Inter-State water disputes

60.22 SECS 0.0 SECS

  C. 2 and 3 only Question 7. + 2.0 - 0.66

D. 1, 3 and 4 only Consider the following rights:

Question Analytics 1. Right to information

60.71 SECS 0.0 SECS 4. Right to work

So, points 1 and 4 are not correct.

Therefore, option (c) is the correct answer. Explanation :

Question 8. + 2.0 - 0.66 Question 9. + 2.0 - 0.66

 AVG. SOLVING TIME  FASTEST SOLVING TIME

 AVG. SOLVING TIME  FASTEST SOLVING TIME

2. Restricting the application of Fundamental Rights to State police forces

Question 13. + 2.0 - 0.66 in the mother tongue in primary education.

otherwise. C. All three

Therefore, option (b) is the correct answer.

A. 1, 2 and 3 only Therefore, option (d) is the correct answer.

ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME

Knowledge Box Knowledge Box

Question 19. + 2.0 - 0.66

57.79 SECS 0.0 SECS Question 21. + 2.0 - 0.66

So, statement 1 is correct. B. Only two

Creation of new districts:

Knowledge Box: Governments.

He should be a citizen of India.

documents of all these departments begins.

B. 2 only Question Analytics

2777 USERS 1305 USERS 1472 USERS 14.5 SECS

ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME Explanation :

56.23 SECS 0.0 SECS Writ jurisdiction

57.81 SECS 0.0 SECS

weaker sections of citizens.

ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME

Question 29. + 2.0 - 0.66

Question 31. + 2.0 - 0.66

 A. Article 16 A. Only one

B. Article 19  B. Only two

 C. Article 23  C. Only three

D. Article 24 D. All four

Question Analytics Question Analytics

55.18 SECS 0.0 SECS 53.21 SECS 0.0 SECS

D. 1, 2 and 3 Therefore, option (c) is the correct answer.

With reference to the contempt of court, consider the following statements:

exercises in respect of contempt of itself. So, statement 1 is correct. Question Analytics

Consider the following:

Question 37. + 2.0 - 0.66 A. Only one

 AVG. SOLVING TIME  FASTEST SOLVING TIME

recommendations of the President. 56.7 SECS 0.0 SECS

Question 39. + 2.0 - 0.66 Question 40. + 2.0 - 0.66

B. 2 and 3 only A. 1, 2 and 3 only

C. 1 and 3 only B. 2, 3 and 4 only

  D. 1, 2 and 3 C. 1 and 4 only

Question Analytics   D. 1, 2, 3 and 4

Question Analytics A. 1 only

ATTEMPTED  SOLVED CORRECTLY  SOLVED INCORRECTLY  YOUR TIME C. Both 1 and 2