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Insights Mock Tests – 2015: Solutions – Test - 16
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1. Solution: d)
The first economic policy of the country 1948 - major highlights of the policy are
given below:
India will be a mixed economy.
Some of the important industries were put under the Central List such as coal,
power, railways, civil aviation, arms and ammunition, defence, etc.
Some other industries (usually of medium category) were put under a State
List such as paper, medicines, textiles, cycles, rickshaws, two-wheelers, etc.
Rest of the industries (not covered by either the central or the State Lists) were
left open for private sector investment—with many of them having the
provision of compulsory licensing.
2. Solution: a)
http://www.cci.gov.in/index.php?option=com_content&task=view&id=12
http://en.wikipedia.org/wiki/Competition_Commission_of_India
3. Solution: d)
Basically, in 1990 and 1991, there were several inter-connected events which were
growing unfavourable for the Indian economy.
Due to the Gulf War (1990–91), the higher oil prices were fastly23 depleting
India’s foreign reserves.
Sharp decline in the private remittances from the overseas Indian workers in
the wake of the Gulf War, specially from the Gulf region.
Inflation peaking at nearly 17 per cent.
The gross fiscal deficit of the central government reaching 8.4 per cent of the
GDP.
By the month of June 1991, India’s foreign exchange had declined to just two
weeks of import coverage.
4. Solution: a)
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Disinvestment is a process of selling government equities in public sector
enterprises. Disinvestment in India is seen connected to three major inter-related
areas, namely—
A tool of public sector reforms
A part of the economic reforms started mid-1991. It has to be done as a
complementary part of the ‘de-reservation of industries’.
Initially motivated by the need to raise resources for the budgetary
allocations.
The approach towards public sector reforms in India has been much more cautious
than that of the other developing countries. India did not follow the radical solution
to it—under which outright privatisation of commercially viable PSUs is done and of
the unviable ones is completely closed.
5. Solution: a)
Disinvestment started in India with a high political caution—in a symbolic way
known as the ‘token’ disinvestment. The general policy was to sell the shares of the
PSUs maximum upto the 49 per cent (i.e. maintaining government ownership of the
companies). But in practice, shares were sold to the tune of 5–10 per cent only.
This phase of disinvestment though brought some extra funds to the government
(which were used to fill up the fiscal deficit considering the proceeds as the ‘capital
receipts’) it could not initiate any new element to the PSUs which could enhance
their efficiency.
It remained the major criticism of this type of disinvestment, and the experts around
the world started suggesting the Government to go for it in the way the ownership
could be transferred from the government to the private sector.
6. Solution: a)
The present disinvestment policy is based on the main ideology that:
Citizens have every right to own part of the shares of Public Sector
Undertakings
Public Sector Undertakings are the wealth of the Nation and this wealth
should rest in the hands of the people, and
While pursuing disinvestment, Government has to retain majority
shareholding, i.e. at least 51% and management control of the PSUs.
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The action plan for disinvestment in profit making government companies is:
Already listed profitable PUSs (not meeting mandatory shareholding of 10%)
are to be made compliant by ‘Offer for Sale’ by Government or by the PSUs
through issue of fresh shares or a combination of both;
Unlisted PSUs with no accumulated losses and having earned net profit in
three preceding consecutive years are to be listed;
Follow-on public offers would be considered taking into consideration the
needs for capital investment of PSUs, on a case by case basis, and
Government could simultaneously or independently offer a portion of its
equity shareholding;
In all cases of disinvestment, the Government would retain at least 51%
equity and the management control.
7. Solution: a)
In simple words Gross Capital Formation is Investment. When people save, they
tend to invest. The percentage of the investment made each year out of the total GDP
is called ross Capital Formation.
So, Rate of Gross Capital Formation is arrived as follows: Rate of Capital Formation
= (Investments /GDP) X 100
The importance of the Gross Capital formation lies in the fact that this is that
part of GDP which helps in the growth of the GDP itself. This is a must for
achieving high rate of production, capital formation, changes in production
techniques and changing in the outlook of the people themselves.
To achieve, the Optimum rate of economic growth, the rate of capital
formation should be above 40%. In India, the gross capital formation for the
year of 2009-10 was 36.5% of the GDP. It was composed of 9.2% in Public
Sector and 24.9% in Private sector. The investment from the Household sector
was 11.7%. Investment from the corporate sector was 13.2%.
8. Solution: d)
FDI is prohibited under Government as well as Automatic Route for the following
sectors:
Retail Trading
Atomic Energy
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Lottery Business
Gambling and Betting
Housing and Real Estate business
Agriculture (excluding Floriculture, Horticulture, Development of Seeds,
Animal Husbandry, Pisciculture and Cultivation of Vegetables, Mushrooms
etc. under controlled conditions and services related to agro and allied
sectors).
Plantations (Other than Tea plantations).
9. Solution: d)
FDI up to 100% is allowed under the automatic route in all activities/sectors except
the following which require prior approval of the Government:
Activities/items that require an Industrial License;
Proposals in which the foreign collaborator has an existing financial /
technical collaboration in India in the 'same' field,
Proposals for acquisition of shares in an existing Indian company in: Financial
services sector and where Securities & Exchange Board of India (Substantial
Acquisition of Shares and Takeovers ) Regulations, 1997 is attracted;
All proposals falling outside notified sectoral policy/caps or under sectors in
which FDI is not permitted.
FDI in sectors/activities to the extent permitted under automatic route does not
require any prior approval either by the Government or RBI. The investors are only
required to notify the Regional office concerned of RBI within 30 days of receipt of
inward remittances and file the required documents with that office within 30 days
of issue of shares to foreign investors.
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10. Solution: c)
FDI in activities not covered under the automatic route requires prior Government
approval and are considered by the Foreign Investment Promotion Board (FIPB),
Ministry of Finance. Application can be made in Form FC-IL; Plain paper
applications carrying all relevant details are also accepted. No fee is payable.
General permission of RBI under FEMA.
Indian companies having foreign investment approval through FIPB route do not
require any further clearance from RBI for receiving inward remittance and issue of
shares to the foreign investors. The companies are required to notify the concerned
Regional office of the RBI of receipt of inward remittances within 30 days of such
receipt and within 30 days of issue of shares to the foreign investors or NRIs.
11. Solution: a)
12. Solution: d)
13. Solution: b)
14. Solution: a)
15. Solution: c)
16. Solution: c)
17. Solution: b)
http://www.thehindu.com/business/Economy/economic-survey-projects-worth-
rs-88-lakh-crore-stalled/article6941227.ece?ref=sliderNews
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18. Solution: a)
http://www.thehindu.com/business/Economy/rs-377-lakh-crore-subsidy-reaches-
only-very-few/article6941195.ece?ref=sliderNews
19. Solution: d)
In the aftermath of the global financial crisis in 2008, sovereign debt levels started to
mount. The revelation that the fiscal deficit in Greece was much higher than stated
earlier set off serious concerns in early 2010 about the sustainability of the debt. The
downgrade of ratings led to a spiral of rising bond yields and further downgrade of
government debt of other peripheral eurozone economies as well, that had high
public debt or a build-up of bank lending or both.
Concerns intensified in early 2010 as cross-border holdings of sovereign debt and
exposure of banks came to light. The financial markets quickly transmitted the
shocks which not only led to a sharp rise in credit default swap (CDS) spreads but
later impacted capital flows elsewhere.
The underlying weaknesses of the zone have made it difficult to resolve the
crisis
The eurozone lacks a single fiscal authority capable of strict enforcement;
Economies with different levels of competitiveness (and fiscal positions) have
a single currency;
These economies cannot adjust through a depreciation of the currency;
There is no lender of last resort, i.e. a full-fledged central bank (as is RBI in
India and other economies).
20. Solution: a)
The process of globalization has been marked by a rising share of exports (as also
imports) that reached 27.9 per cent for the world as a whole in 2010, with some
countries showing much higher dependence of exports. The Database of the World
Bank show that the so called East Asian Miracle Economies was that an export-led,
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investment-fuelled strategy propelled growth and helped them acquire
manufacturing capabilities.
This strategy was supported by a favourable exchange rate, cheap credit, and
relatively low wages which helped to gain competitive advantage. Global demand
for goods, particularly in the advanced markets, lent support to this growth strategy.
As a result, these economies moved up the value chain in manufacturing.
21. Solution: b)
India’ energy dependence on imported energy sources, appears modest at 25.7 per
cent in terms of total energy usage. (World Bank Database). However, this masks the
fact that around 80 per cent of the crude oil consumed is imported, whereas the bulk
of coal is domestically produced. Even with respect to coal, the country is importing
on the margin to meet domestic demand. On the other side, there is a large fraction
of population that has little or no access to commercial sources of energy and
depends on traditional sources.
Rise in the price of oil in international markets has been the main source of high
current account deficit. High international prices of fossil fuels also result in a higher
import bill, which either gets passed on to the consumers, or results in higher
subsidy thereby affecting fiscal health. That apart, the growing tensions in many oil-
producing economies are a source of vulnerability for the energy security of India. In
this one area, the strategic advantage for India would lie in diversifying its energy
sources.
22. Solution: d)
Organised Indian Money Market - Present since independence, its real development
took place after the year 1985. Today there are eight instruments or components of
the Indian money market especially designed to fulfill the short-term fund
requirements of the different categories of the individuals, institutions or the firms
and companies:
Treasury Bills
Call Money Market
Certificate of Deposit
Commercial Bills
Commercial Papers
Mutual Funds
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Repo and Reverse Repo Markets.
Cash Management Bill
Share market is part of the Capital market, not money market.
23. Solution: d)
At present Indian financial market has a number of regulators, precisely eleven—
RBI, SEBI, FMC, NABARD, IRDA, SIDBI, NHB, SFCs, LDBI, CLB and Registrar of
Cooperative Societies.
The Narasimhan Committee on Financial System (1991) has made a strong case for a
single regulator for banks, financial institutions and the non-banking financial
institutions in India.
Meanwhile, the Justice B N Srikrishna headed Financial Sector Legislative Reforms
Commission (FSLRC) handed over its report end-March 2013 – in which it
recommended that this would be replaced by a horizontal structure whereby the
basic regulatory and monitoring functions of all areas would be done by a Unified
Financial Agency (UFA).
24. Solution: a)
For growth to take place, investments are required in the form of productive assets.
Such investments are long-term in nature. Funds for long-term purposes are raised
either through borrowings from the banks, or the financial institutions, or through
the security market by issuing shares or debentures.
Such funds are supplied by the long-term financial market, i.e. the capital market
and the firms or the productive assets are set up in an economy. But only the setting
up of firms does not guarantee production as these firms keep facing fund
mismatches in the process of continued production.
There is another required segment of financial market which could supply timely
funds to these firms so that they could continue their production process. Such funds
are required usually for a short period (days, fortnights, few months) of time and
thus are considered as their working capital requirements. The segment of financial
market which caters to the short-term requirements of such funds for the enterprises
is known as the money market or the working capital market of the economy.
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25. Solution: d)
Repos allow the banks and the financial institutions to borrow money from the RBI
for the short-term (by selling Government Securities to the RBI). In reverse repos, the
banks and financial institutions purchase Government securities from the RBI
(basically here the RBI is borrowing from the banks and the financial institutions).
All the Government securities are dated and the interest for the repo or reverse repo
transactions are announced by the RBI from time to time.
The provision of repos and the reverse repos have been able to serve the liquidity
evenness in the economy as the banks are able to get the required amount of funds
out of it, and they can park surplus dle funds through it. These instruments have
emerged as important tools in the management of the monetary and credit policy in
the recent years.
26. Solution: a)
The call money market is an important segment of the money market where
uncollateralized borrowing and lending of funds take place on overnight basis.
Participants in the call money market in India currently include scheduled
commercial banks (SCBs)- excluding regional rural banks), cooperative banks (other
than land development banks), and primary dealers, both as borrowers and lenders.
Prudential limits, in respect of both outstanding borrowing and lending transactions
in the call money market for each of these entities, are specified by the RBI.
27. Solution: c)
OMOs are conducted by the RBI via the sale/purchase of government securities (G-
Sec) to/from the market with the primary aim of modulating rupee liquidity
conditions in the market. OMOs are an effective quantitative policy tool in the
armoury of the RBI, but are constrained by the stock of government securities
available with it at a point in time.
28. Solution: d)
http://www.goodreturns.in/classroom/2013/07/what-are-open-market-operation-
omos-191708.html
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OMOs are not related to Bank rate in any way since OMOs essentially depends on
how much securities RBI is issuing/purchasing, and how much the public is
selling/purchasing.
But, if bank rates are very low and there is a lot of money supply in the economy, the
effectiveness of the OMOs will reduce.
Similarly fiscal deficit too is not related to OMOs. But if there is high fiscal deficit,
OMOs can hardly control inflation.
29. Solution: a)
Liquidity Adjustment Facility (LAF) is the primary instrument of Reserve Bank of
India for modulating liquidity and transmitting interest rate signals to the market. It
refers to the difference between the two key rates viz. repo rate and reverse repo
rate. Informally, Liquidity Adjustment Facility is also known as Liquidity Corridor.
Under Repo, the banks borrow money from RBI to meet short term needs by putting
government securities (G-secs) as collateral. Under Reverse Repo, RBI borrows
money from banks by lending securities. While repo injects liquidity into the system,
the Reverse repo absorbs the liquidity from the system. RBI only announces Repo
Rate. The Reverse Repo Rate is linked to Repo Rate and is 100 basis points (1%)
below repo rate. RBI makes decision regarding Repo Rate on the basis of prevalent
market conditions and relevant factors.
30. Solution: b)
http://www.arthapedia.in/index.php?title=Marginal_Standing_Facility
31. Solution: a)
http://en.wikipedia.org/wiki/Exchange-traded_fund\
32. Solution: c)
A non-banking financial company (NBFC) is a company registered under the
Companies Act, 1956 and is engaged in the business of loans and advances,
acquisition of shares/ stock/ bonds/ debentures/ securities issued by government
or local authority or other securities of like marketable nature, leasing, hire-
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purchase, insurance business, chit business, but does not include any institution
whose principal business is that of agriculture activity, industrial activity,
sale/purchase/construction of immovable property.
A non-banking institution which is a company and which has its principal business
of receiving deposits under any scheme or arrangement or any other manner, or
lending in any manner is also a non-banking financial company (residuary non-
banking company i.e. RNBC).
NBFCs are doing functions akin to that of banks, however there are a few
differences:
An NBFC cannot accept demand deposits (which are payable on demand),
like the savings and current accounts.
It is not a part of the payment and settlement system and as such cannot issue
cheques to its customers
33. Solution: d)
RBI is the Central bank of India and performs these functions and fulfils the
following roles:
It is the issuing agency of the currency and coins other than rupee one
currency and coin (which are issued by the Ministry of Finance itself with the
signature of the Revenue Secretary on the note).
Distributing agent for the currency and coins issued by the Government.
Banker of the Government.
Bank of the banks/Bank of the last resort.
Announces the credit and monetary policy for the economy.
Stabilising the rate of inflation.
Stabilising the exchange rate of rupee.
Keeper of the foreign currency reserves.
Agent of the Government of India in the IMF.
Performing a variety of developmental and promotional functions under
which it did set up institutions like IDBI, SIDBI, NABARD, NHB, etc.
34. Solution: d)
Banks in India are required to hold a certain proportion of their deposits in the
form of cash. However, actually Banks don’t hold these as cash with themselves,
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but deposit such case with Reserve Bank of India (RBI) / currency chests, which is
considered as equivalent to holding cash with RBI. This minimum ratio (that is the
part of the total deposits to be held as cash) is stipulated by the RBI and is known as
the CRR or Cash Reserve Ratio.
Thus, When a bank’s deposits increase by Rs100, and if the cash reserve ratio is 6%,
the banks will have to hold additional Rs 6 with RBI and Bank will be able to use
only Rs 94 for investments and lending / credit purpose. Therefore, higher the ratio
(i.e. CRR), the lower is the amount that banks will be able to use for lending and
investment. This power of RBI to reduce the lendable amount by increasing the
CRR, makes it an instrument in the hands of a central bank through which it can
control the amount that banks lend. Thus, it is a tool used by RBI to control liquidity
in the banking system.
35. Solution: a)
The statutory liquidity ratio (SLR) is the ratio (fixed by the RBI) of the total deposits
of a bank which is to be maintained by the bank with itself in non-cash form
prescribed by the Government.
The ratio of liquid assets to demand and time liabilities is known as Statutory
Liquidity Ratio (SLR). RBI is empowered to increase this ratio up to 40%. An
increase in SLR also restrict the bank’s leverage position to pump more money into
the economy.
36. Solution: d)
Bank Rate is the rate at which central bank of the country (in India it is RBI) allows
finance to commercial banks. Bank Rate is a tool, which central bank uses for short-
term purposes. Any upward revision in Bank Rate by central bank is an indication
that banks should also increase deposit rates as well as Base Rate / Benchmark
Prime Lending Rate. Thus any revision in the Bank rate indicates that it is likely that
interest rates on your deposits are likely to either go up or go down, and it can also
indicate an increase or decrease in your EMI.
The clients who borrow through this route are the GoI, State governments, Banks,
Financial Institutions, Co-operative Banks, NBFCs, etc. The rate has direct impact on
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the long-term lending activities of the concerned lending bodies operating in the
Indian financial system.
37. Solution: d)
The impact of CRR, SLR and bank rate has already been explained in some of the
explanations in previous questions.
For Reverse Repo rate - It is the rate of interest the RBI pays to its clients who offer
short term loan to it.
It is reverse of the repo rate and this was started in November 1996 as part of
Liquidity Adjustment Facility (LAF) by the RBI. In practice, financial institutions
operating in India park their surplus funds with the RBI for short-term period and
earn money. It has a direct bearing on the interest rates charged by the banks and the
financial institutions on their different forms of loans.
This tool was utilised by the RBI in the wake of over money supply with the Indian
banks and lower loan disbursal to serve twin purposes of cutting down banks losses
and the prevailing interest rate. It has emerged as a very important tool in direction
of following cheap interest regime—the general policy of the RBI since reform
process started.
38. Solution: a)
The President is elected not directly by the people but by members of electoral
college consisting of:
the elected members of both the Houses of Parliament;
the elected members of the legislative assemblies of the states; and
the elected members of the legislative assemblies of the Union Territories of
Delhi and Puducherry
39. Solution: d)
The nominated members of both of Houses of Parliament, the nominated members
of the state legislative assemblies, the members (both elected and nominated) of the
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state legislative councils (in case of the bicameral legislature) and the nominated
members of the Legislative Assemblies of Delhi and Puducherry do not participate
in the election of the President. Where an assembly is dissolved, the members cease
to be qualified to vote in presidential election, even if fresh elections to the dissolved
assembly are not held before the presidential election.
While electing and impeaching Vice-President, nominated members participate.
40. Solution: d)
41. Solution: c)
The President is entitled to a number of privileges and immunities. He enjoys
personal immunity from legal liability for his official acts. During his term of office,
he is immune from any criminal proceedings, even in respect of his personal acts. He
cannot be arrested or imprisoned. However, after giving two months’ notice, civil
proceedings can be instituted against him during his term of office in respect of his
personal acts.
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42. Solution: d)
The President can be removed from office by a process of impeachment for ‘violation
of the Constitution’. However, the Constitution does not define the meaning of the
phrase ‘violation of the Constitution’.
The impeachment charges can be initiated by either House of Parliament. These
charges should be signed by one-fourth members of the House (that framed the
charges), and a 14 days’ notice should be given to the President. After the
impeachment resolution is passed by a majority of two-thirds of the total
membership of that House, it is sent to the other House, which should investigate
the charges.
The President has the right to appear and to be represented at such investigation. If
the other House also sustains the charges and passes the impeachment resolution by
a majority of two-thirds of the total membership, then the President stands removed
from his office from the date on which the bill is so passed.
Thus, an impeachment is a quasi-judicial procedure in the Parliament. In this
context, two things should be noted: (a) the nominated members of either House of
Parliament can participate in the impeachment of the President though they do not
participate in his election; (b) the elected members of the legislative assemblies of
states and the Union Territories of Delhi and Puducherry do not participate in the
impeachment of the President though they participate in his election.
No President has so far been impeached.
43. Solution: d)
He appoints the prime minister and the other ministers. They hold office during his
pleasure.
He appoints the attorney general of India and determines his remuneration. The
attorney general holds office during the pleasure of the President.
He appoints the comptroller and auditor general of India, the chief election
commissioner and other election commissioners, the chairman and members of the
Union Public Service Commission, the governors of states, the chairman and
members of finance commission, and so on.
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He can seek any information relating to the administration of affairs of the Union,
and proposals for legislation from the prime minister.
44. Solution: d)
He enjoys the following legislative powers.
He can summon or prorogue the Parliament and dissolve the Lok Sabha. He
can also summon a joint sitting of both the Houses of Parliament, which is
presided over by the Speaker of the Lok Sabha.
He can address the Parliament at the commencement of the first session after
each general election and the first session of each year.
He can send messages to the Houses of Parliament, whether with respect to a
bill pending in the Parliament or otherwise.
He can appoint any member of the Lok Sabha to preside over its proceedings
when the offices of both the Speaker and the Deputy Speaker fall vacant.
Similarly, he can also appoint any member of the Rajya Sabha to preside over
its proceedings when the offices of both the Chairman and the Deputy
Chairman fall vacant.
45. Solution: b)
The President has the veto power over the bills passed by the Parliament10, that is,
he can withhold his assent to the bills. The object of conferring this power on the
President is two-fold—(a) to prevent hasty and ill-considered legislation by the
Parliament; and (b) to prevent legislation which may be unconstitutional.
The veto power enjoyed by the executive in modern states can be classified into the
following four types:
Absolute veto that is, withholding of assent to the bill passed by the
legislature.
Qualified veto, which can be overridden by the legislature with a higher
majority.
Suspensive veto, which can be over ridden by the legislature with an ordinary
majority.
Pocket veto that is, taking no action on the bill passed by the legislature.
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Of the above four, the President of India is vested with three—absolute veto,
suspensive veto and pocket veto. There is no qualified veto in the case of Indian
President; it is possessed by the American President.
46. Solution: a)
Suspensive Veto - The President exercises this veto when he returns a bill for
reconsideration of the Parliament.
However, if the bill is passed again by the Parliament with or without amendments
and again presented to the President, it is obligatory for the President to give his
assent to the bill. This means that the presidential veto is overridden by a re-passage
of the bill by the same ordinary majority (and not a higher majority as required in
USA).
The President does not possess this veto in the case of money bills. The President can
either give his assent to a money bill or withhold his assent to a money bill but
cannot return it for the reconsideration of the Parliament. Normally, the President
gives his assent to money bill as it is introduced in the Parliament with his previous
permission.
47. Solution: d)
48. Solution: d)
49. Solution: d)
50. Solution: a)
51. Solution: c)
The ordinance-making power is the most important legislative power of the
President. It has been vested in him to deal with unforeseen or urgent matters. But,
the exercise of this power is subject to the following limitations:
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He can promulgate an ordinance only when both the Houses of Parliament
are not in session or when either of the two Houses of Parliament is not in
session. An ordinance can also be issued when only one House is in session
because a law can be passed by both the Houses and not by one House alone.
An ordinance made when both the Houses are in session is void. Thus, the
power of the President to legislate by ordinance is not a parallel power of
legislation.
He can make an ordinance only when he is satisfied that the circumstances
exist that render it necessary for him to take immediate action. In Cooper case,
(1970), the Supreme Court held that the President’s satisfaction can be
questioned in a court on the ground of malafide. This means that the decision
of the President to issue an ordinance can be questioned in a court on the
ground that the President has prorogued one House or both Houses of
Parliament deliberately with a view to promulgate an ordinance on a
controversial subject, so as to bypass the parliamentary decision and thereby
circumventing the authority of the Parliament.
52. Solution: b)
The Supreme Court examined the pardoning power of the President under different
cases and laid down the following principles:
The petitioner for mercy has no right to an oral hearing by the President.
The President can examine the evidence afresh and take a view different from
the view taken by the court.
The power is to be exercised by the President on the advice of the union
cabinet.
The President is not bound to give reasons for his order.
The President can afford relief not only from a sentence that he regards as
unduly harsh but also from an evident mistake.
There is no need for the Supreme Court to lay down specific guidelines for
the exercise of power by the President.
The exercise of power by the President is not subject to judicial review except
where the presidential decision is arbitrary, irrational, mala fide or
discriminatory.
Where the earlier petition for mercy has been rejected by the President, stay
cannot be obtained by filing another petition.
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53. Solution: a)
The President can act on his discretion (that is, without the advice of the ministers)
under the following situations:
Appointment of Prime Minister when no party has a clear majority in the Lok
Sabha or when the Prime Minister in office dies suddenly and there is no
obvious successor.
Dismissal of the council of ministers when it cannot prove the confidence of
the Lok Sabha.
Dissolution of the Lok Sabha if the council of ministers has lost its majority.
54. Solution: d)
To be eligible for election as Vice-President, a person should fulfil the following
qualifications:
He should be a citizen of India.
He should have completed 35 years of age.
He should be qualified for election as a member of the Rajya Sabha.
He should not hold any office of profit under the Union government or any
state government or any local authority or any other public authority.
But, a sitting President or Vice-President of the Union, the governor of any state and
a mini-ster for the Union or any state is not deemed to hold any office of profit and
hence qualified for being a candidate for Vice-President.
55. Solution: c)
The Constitution does not contain any specific procedure for the selection and
appointment of the Prime Minister. Article 75 says only that the Prime Minister shall
be appointed by the president.
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However, this does not imply that the president is free to appoint any one as the
Prime Minister. In accordance with the conventions of the parliamentary system of
government, the President has to appoint the leader of the majority party in the Lok
Sabha as the Prime Minister. But, when no party has a clear majority in the Lok
Sabha, then the President may exercise his personal discretion in the selection and
appointment of the Prime Minister.
In 1997, the Supreme Court held that a person who is not a member of either House
of Parliament can be appointed as Prime Minister for six months, within which, he
should become a member of either House of Parliament; otherwise, he ceases to be
the Prime Minister.
Constitutionally, the Prime Minister may be a member of any of the two Houses of
parliament. For example, three Prime Ministers, Indira Gandhi (1966), Deve Gowda
(1996) and Manmohan Singh (2004), were members of the Rajya Sabha. In Britain, on
the other hand, the Prime Minister should definitely be a member of the Lower
House (House of Commons).
45. Solution: d)
The Prime Minister enjoys the following powers as head of the Union council of
ministers:
He recommends persons who can be appointed as ministers by the president.
The President can appoint only those persons as ministers who are
recommended by the Prime Minister.
He allocates and reshuffles various portfolios among the ministers.
He can ask a minister to resign or advise the President to dismiss him in case
of difference of opinion.
He presides over the meeting of council of ministers and influences its
decisions.
He guides, directs, controls, and coordinates the activities of all the ministers.
He can bring about the collapse of the council of ministers by resigning from
office.
Since the Prime Minister stands at the head of the council of ministers, the other
ministers cannot function when the Prime Minister resigns or dies. In other words,
the resignation or death of an incumbent Prime Minister automatically dissolves the
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council of ministers and thereby generates a vacuum. The resignation or death of
any other minister, on the other hand, merely creates a vacancy which the Prime
Minister may or may not like to fill.
56. Solution: d)
Article 74 provides for a council of ministers with the Prime Minister at the head to
aid and advise the President in the exercise of his functions. The 42nd and 44th
Constitutional Amendment Acts have made the advice binding on the President.
Further, the nature of advice tendered by ministers to the President cannot be
enquired by any court. This provision emphasises the intimate and the confidential
relationship between the President and the ministers.
In 1971, the Supreme Court held that ‘even after the dissolution of the Lok Sabha, the
council of ministers does not cease to hold office. Article 74 is mandatory and,
therefore, the president cannot exercise the executive power without the aid and
advise of the council of ministers. Any exercise of executive power without the aid
and advice will be unconstitutional as being violative of Article 74’.
Again in 1974, the court held that ‘wherever the Constitution requires the
satisfaction of the President, the satisfaction is not the personal satisfaction of the
President but it is the satisfaction of the council of ministers with whose aid and on
whose advice the President exercises his powers and functions.
57. Solution: a)
The ministers of state can either be given independent charge of
ministries/departments or can be attached to cabinet ministers. In case of
attachment, they may either be given the charge of departments of the ministries
headed by the cabinet ministers or allotted specific items of work related to the
ministries headed by cabinet ministers. In both the cases, they work under the
supervision and guidance as well as under the overall charge and responsibility of
the cabinet ministers. In case of independent charge, they perform the same
functions and exercise the same powers in relation to their ministries/departments
as cabinet ministers do.
However, they are not members of the cabinet and do not attend the cabinet
meetings unless specially invited when something related to their
ministries/departments are considered by the cabinet.
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Next in rank are the deputy ministers. They are not given independent charge of
ministries/departments. They are attached to the cabinet ministers or ministers of
state and assist them in their administrative, political, and parliamentary duties.
They are not members of the cabinet and do not attend cabinet meetings.
58. Solution: d)
The word ‘cabinet; was inserted in Article 352 of the Constitution in 1978 by the 44th
Constitutional Amendment Act. Thus, it did not find a place in the original text of
the Constitution.
Now also, Article 352 only defines the cabinet saying that it is ‘the council consisting
of the prime minister and other ministers of cabinet rank appointed under Article 75’
and does not describe its powers and functions. In other words, its role in our
politico-administrative system is based on the conventions of parliamentary
government as developed in Britain.
59. Solution: d)
They are set up by the Prime Minister according to the exigencies of the time
and requirements of the situation. Hence, their number, nomenclature, and
composition varies from time to time.
Their membership varies from three to eight. They usually include only
Cabinet Ministers. However, the non-cabinet Ministers are not debarred from
their membership.
They not only include the Ministers in charge of subjects covered by them but
also include other senior Ministers.
They are mostly headed by the Prime Minister. Sometimes other Cabinet
Ministers, particularly the Home Minister or the Finance Minister, also acts as
their Chairman. But, in case the Prime Minister is a member of a committee,
he invariably presides over it.
60. Solution: a)
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Cabinet Committees not only sort out issues and formulate proposals for the
consideration of the Cabinet, but also take decisions. However, the Cabinet can
review their decisions. It means that the PM too can review their decisions.
They are an organisational device to reduce the enormous workload of the Cabinet.
They also facilitate in-depth examination of policy issues and effective coordination.
They are based on the principles of division of labour and effective delegation.
61. Solution: b)
Though the President of India is not a member of either House of Parliament and
does not sit in the Parliament to attend its meetings, he is an integral part of the
Parliament. This is because a bill passed by both the Houses of Parliament cannot
become law without the President’s assent. He also performs certain functions
relating to the proceedings of the Parliament, for example, he summons and
prorogues both the Houses, dissolves the Lok Sabha, addresses both the Houses,
issues ordinances when they are not in session, and so on.
In this respect, the framers of the Indian Constitution relied on the British pattern
rather than the American pattern. In Britain, the Parliament consists of the Crown
(King or Queen), the House of Lords (Upper House) and the House of Commons
(Lower House). By contrast, the American president is not an integral part of the
legislature. In USA, the legislature, which is known as Congress, consists of the
Senate (Upper House) and the House of Representatives (Lower House).
62. Solution: b)
The maximum strength of the Rajya Sabha is fixed at 250, out of which, 238 are to be
the representatives of the states and union territories (4 members elected indirectly)
and 12 are nominated by the president.
Out of the seven union territories, only two (Delhi and Puducherry) have
representation in Rajya Sabha. The populations of other five union territories are too
small to have any representative in the Rajya Sabha.
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63. Solution: a)
Though the Constitution has adopted the system of proportional representation in
the case of Rajya Sabha, it has not preferred the same system in the case of Lok
Sabha. Instead, it has adopted the system of territorial representation for the election
of members to the Lok Sabha.
Under territorial representation, every member of the legislature represents a
geographical area known as a constituency. From each constituency, only one
representative is elected. Hence such a constituency is known as single-member
constituency. In this system, a candidate who secures majority of votes is declared
elected. This simple majority system of representation does not represent the whole
electorate. In other words, it does not secure due representation to minorities (small
groups).
64. Solution: d)
The system of proportional representation aims at removing the defects of territorial
representation. Under this system, all sections of the people get representation in
proportion to their number. Even the smallest section of the population gets its due
share of representation in the legislature.
There are two kinds of proportional representation, namely, single transferable vote
system and list system. In India, the first kind is adopted for the election of members
to the Rajya Sabha and state legislative council and for electing the President and the
Vice-President.
Though some members of the Constituent Assembly had advocated the system of
proportional representation for the election of members to the Lok Sabha, the
Constitution has not adopted the system due to two reasons.
Difficulty for the voters to understand the system (which is complicated) due
to low literacy scale in the country.
Unsuitability to the parliamentary government due to the tendency of the
system to multiply political parties leading to instability in government.
65. Solution: a)
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On the question whether a member is subject to any of the disqualifications under
RPA 1951, the president’s decision is final. However, he should obtain the opinion of
the election commission and act accordingly.
The question of disqualification under the Tenth Schedule is decided by the
Chairman in the case of Rajya Sabha and Speaker in the case of Lok Sabha (and not
by the president of India). In 1992, the Supreme Court ruled that the decision of the
Chairman/Speaker in this regard is subject to judicial review.
66. Solution: c)
Every member of either House of Parliament, before taking his seat in the House, has
to make and subscribe to an oath or affirmation before the President or some person
appointed by him for this purpose. In his oath or affirmation, a member of
Parliament swears:
to bear true faith and allegiance to the Constitution of India;
to uphold the sovereignty and integrity of India; and
to faithfully discharge the duty upon which he is about to enter.
Option 2 is part of oath taken by a Minister.
Option 3 is that taken by the President of India.
67. Solution: d)
The Speaker is elected by the Lok Sabha from amongst its members (as soon as may
be, after its first sitting). Whenever the office of the Speaker falls vacant, the Lok
Sabha elects another member to fill the vacancy. The date of election of the Speaker
is fixed by the President.
When a resolution for the removal of the Speaker is under consideration of the
House, he cannot preside at the sitting of the House, though he may be present.
However, he can speak and take part in the proceedings of the House at such a time
and vote in the first instance, though not in the case of an equality of votes.
It should be noted here that, whenever the Lok Sabha is dissolved, the Speaker does
not vacate his office and continues till the newly- elected Lok Sabha meets.
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The Speaker is the head of the Lok Sabha, and its representative. He is the guardian
of powers and privileges of the members, the House as a whole and its committees.
He is the principal spokesman of the House, and his decision in all Parliamentary
matters is final.
68. Solution: a)
The Speaker is the head of the Lok Sabha, and its representative. He is the guardian
of powers and privileges of the members, the House as a whole and its committees.
He is the principal spokesman of the House, and his decision in all Parliamentary
matters is final. He is thus much more than merely the presiding officer of the Lok
Sabha. In these capacities, he is vested with vast, varied and vital responsibilities and
enjoys great honour, high dignity and supreme authority within the House.
The Speaker of the Lok Sabha derives his powers and duties from three sources, that
is, the Constitution of India, the Rules of Procedure and Conduct of Business of Lok
Sabha, and Parliamentary Conventions (residuary powers that are unwritten or
unspecified in the Rules).
69. Solution: a)
The LS Speaker presides over a joint setting of the two Houses of Parliament. Such a
sitting is summoned by the President to settle a deadlock between the two Houses
on a bill.
He can allow a ‘secret’ sitting of the House at the request of the Leader of the House.
When the House sits in secret, no stranger can be present in the chamber, lobby or
galleries except with the permission of the Speaker.
He decides whether a bill is a money bill or not and his decision on this question is
final. When a money bill is transmitted to the Rajya Sabha for recommendation and
presented to the President for assent, the Speaker endorses on the bill his certificate
that it is a money bill.
He decides the questions of disqualification of a member of the Lok Sabha, arising
on the ground of defection under the provisions of the Tenth Schedule. In 1992, the
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Supreme Court ruled that the decision of the Speaker in this regard is subject to
judicial review.
70. Solution: c)
The LS Speaker is provided with a security of tenure. He can be removed only by a
resolution passed by the Lok Sabha by an absolute majority (i.e, a majority of the
total members of the House) and not by an ordinary majority (i.e, a majority of the
members present and voting in the House).
This motion of removal can be considered and discussed only when it has the
support of at least 50 members.
71. Solution: d)
The bill amends the Mines and Minerals (Development and Regulation) Act, 1957 in
order to regulate the mining sector in the country.
Key provisions of the bill
Addition of a new 4th Schedule in to parent Act in order to include bauxite,
iron ore, limestone and manganese ore as notified minerals.
Creation of prospecting license-cum-mining lease as a new category of mining
license. It is defined as a two stage-concession for the purpose of undertaking
prospecting operations followed by mining operations.
Maximum area for mining- increase the area limits for mining, instead of
providing additional leases as per parent Act’s area limitation.
Lease period- Mining leases will be granted for a lease period of 50 years for
all minerals other than coal, lignite and atomic minerals. Lease period for coal
and lignite remains unchanged.
72. Solution: a)
Objective is to bring out a totally error-free and authenticated electoral roll
throughout the country.
For the authentication purpose, Electoral Photo Identity Card (EPIC) data of
electors will be linked with Aadhar data.
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It also focuses to improve the image quality of electors along with sorting
issues like corrections of errors. Facility to link Aadhar number will be
provided to electors through sms, email, mobile application and National
Voters Service Portal using web services through ECI website.
Electors also can link their Aadhar number by making a call at 1950 to state
call centres. Under NERPAP, collection and feeding of Aadhar will also be
done by Electoral Registration Officer.
In this regard special Camps will be organized, Voter Facilitation Centres, e-
Seva centres and Citizen Service Centres. While Booth Level Officers will
conduct door-to-door surveys to collect the details.
73. Solution: a)
Eutelsat’s satellite is part of its 35-member commercial network. It will provide
services like mobile, internet, video and other communications services to expand its
reach into the Americas. While, ABS new satellite will serve its customers in Africa,
Europe and the Middle East.
These satellites are fitted with lightweight, all-electric engines rather than
conventional chemical propulsion systems. These electric engines allow satellites to
produce electric propulsion in order to reach and remain fixed in particular orbit.
Electric propulsion from these satellites consumes less fuel compared with satellite
having chemical propulsion. Thus making satellites lighter in weight and further
reducing cost of launch.
74. Solution: a)
Following has happened in the area of taxation in the recent Budget:
No change in the Tax slab on personal income.
Wealth tax abolished.
Additional 2% surcharge for the super-rich with income more than Rs. 1
crore.
For next 4 years, corporate tax has been reduced to 25 percent from present 30
percent. Service tax increased to14 per cent.
Apart from CSR, 100% tax exemption for contribution to Swachch Bharat
Abhiyan.
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75. Solution: a)
http://www.thehindu.com/business/budget/mudra-bankto-fund-the-missing-
middle/article6946797.ece
76. Solution: d)
Some of the Initiatives launched are:
Under the Swachh Bharat Abhiyan, six crore toilets across the country will be
built.
By 2020, housing for all.
Visa on Arrival (VoA) facility to be increased for 150 countries from present
43 countries.
As an alternative to purchasing gold, Sovereign Gold Bond will be launched.
In order to facilitate depositors of gold to earn interest and jewellers to obtain
loans on their metal accounts new scheme will be launched.
Forward Markets Commission (FMC) will be merged with the Securities and
Exchange Board of India (SEBI).
77. Solution: a)
http://www.washingtonpost.com/blogs/monkey-cage/wp/2014/07/17/what-the-
new-bank-of-brics-is-all-about/
78. Solution: a)
http://www.finance.mp.gov.in/14fc_press_note_eng.pdf
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Refer to first two pages only.
79. Solution: a)
In the Air Brake system, compressed air is used for operating the brake system.
These brakes can be the conventional types or directly mounted on the bogies of the
coaches. The latest design is the Disc Brake System (DBS) found in LHB coaches and
is similar to what is found in automobiles.
DBS is micro processor controlled and an advanced version of Air Brake system. It is
essential for high speeds of 160kmph plus. It is superior in terms of reduced braking
distance, higher wheel life due to reduced frequency of wheel turning, and reduced
maintenance, less braking noise and higher efficiency due to simple brake rigging.
PIB FEATURES http://pib.nic.in/newsite/efeatures.aspx
80. Solution: b)
http://www.downtoearth.org.in/content/indias-climate-dilemma
81. Solution: b)
82. Solution: b)
83. Solution: d)
84. Solution: d)
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85. Solution: d)
86. Solution: d)
http://www.downtoearth.org.in/content/budget-2015-suresh-prabhu-promises-
green-clean-indian-railways
87. Solution: a)
http://www.downtoearth.org.in/content/agriculture-wrong-prescription-right-
diagnosis
In the budget, Jaitley increased the farm credit corpus from Rs 8 lakh crore to Rs 8.5
lakh crore and announced the setting up of a Unified National Agriculture Market to
provide farmers better price for their produce.
But, around 94 per cent of the existing farm credit corpus goes directly to agro-based
industries and not to the farmers. So when the finance minister said Rs 8.5 lakh crore
will be given as farm credit, he actually meant that the farmers would get only Rs
50,000 crore or six per cent of the corpus.
88. Solution: a)
http://www.downtoearth.org.in/content/findings-economic-survey-2015-are-
cause-worry
89. Solution: c)
http://www.downtoearth.org.in/content/earth-s-natural-cooling-process-offset-
global-warming-past-decade-0\
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90. Solution: a)
http://www.downtoearth.org.in/content/these-mobile-weather-stations-can-help-
cope-floods-landslides
91. Solution: b)
Pursuant to the resolution adopted on 29-05-2007 by the National Development
Council (NDC), to reorient the current agricultural development strategies to meet
the needs of the farmers and for fresh efforts by the Central and State Governments
to rejuvenate the agricultural sector so as to achieve 4% annual growth during the
11th Five Year Plan, a new State Plan Scheme of Additional Central Assistance (ACA)
for agriculture and allied sectors, namely, Rashtriya Krishi Vikas Yojana (RKVY) was
launched during 2007-08 with an envisaged outlay of Rs. 25,000 crore for the Plan
period.
It requires the States to prepare District and State Agriculture Plans for creation of
such infrastructure, which are essential to catalyse the existing production scenario
for achieving higher production. Additional Central Assistance (ACA) is made
available to the States as 100% grants.
The RKVY Guidelines recognize and build on the need for convergence and
integration of the various programmes implemented at District/State level into
District Agriculture Plans (DAPs) and State Agriculture Plan (SAP). Each district is
required to formulate a District Agriculture Plan by including the resources available
from other existing schemes, District, State or Central Schemes such as Backward
Region Grant Fund (BRGF), Swarnajayanti Gram Swarozgar Yojana (SGSY),
National Rural Employment Guarantee Scheme (NREGS), Bharat Nirman and tied
and untied grants from the Central and State Finance Commissions etc. The District
Agriculture Plans are not to be the usual aggregation of the existing schemes but
would aim at moving towards projecting the requirements for development of
agriculture and allied sectors of the district. These plans present the vision for
agriculture and allied sectors within the overall development perspective of the
district. The District Agriculture Plans would reflect the financial requirement and
the sources of financing the agriculture development plans in a comprehensive way.
The DAP will include animal husbandry and fishery, minor irrigation projects, rural
development works, agricultural marketing schemes and schemes for water
harvesting and conservation, keeping in view the natural resources and
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technological possibilities in each district. Each State is further required to prepare a
comprehensive State Agricultural Plan (SAP) by integrating the DAPs. The State will
have to indicate resources that can flow from the State to the district.
During XII Plan, RKVY funding will be provided through three streams viz.
production growth (35%), infrastructure & Assets and sub-schemes (20%). The
remaining 10% will be is provisioned as flexi fund from which states can undertake
either production growth or infrastructure & assets projects depending upon States
needs & priorities. Looking at the requirement of increasing investment,
Government has recently done way with 35% requirement in production stream
thus paving the way for 100% allocation in investments for infrastructure buildings
& creation of assets.
The States have been provided flexibility and autonomy in the process of selection,
planning, approval and execution of schemes to make investments in interventions
as per their priorities and agro-climatic requirements so that the outcomes are as
envisaged in the RKVY objectives. The projects of the State Governments are
approved by the State Level Sanctioning Committees (SLSCs) under the
Chairmanship of Chief Secretary of the respective States. The funds are routed
through the State Agriculture Department, which is the nodal Department for the
scheme.
http://rkvy.nic.in/SubSchemes-Iframe.html
Refer Page No. 88-90 of India – 2015 for more details.
92. Solution: a)
The Mission has been continued during 12th Five Year Plan with inclusion of coarse
cereals crops and commercial crops (sugarcane, jute, cotton). The Mission has target
of additional production of 25 million tonnes of foodgrains comprising 10 million
tonnes of rice, 8 million tonnes of wheat, 4 million tonnes of pulses and 3 million
tonnes of coarse cereals by the end of 12th Five Year Plan.
93. Solutions: c)
National Mission for Sustainable Agriculture (NMSA) seeks to transform Indian
agriculture into a climate resilient production system through suitable adaptation
and mitigation measures in domains of both crops and animal husbandry. NMSA as
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a programmatic intervention focuses on promotion of location specific
integrated/composite farming systems; resource conservation technologies;
comprehensive soil health management; efficient on-farm water management and
mainstreaming rainfed technologies.
NMSA identifies 10 key dimensions namely seed & culture water, pest, nutrient,
farming practices, credit, insurance, market, information and livelihood
diversification for promoting suitable agricultural practices that covers both
adaption and mitigation measures through four functional areas, namely, Research
and Development, Technologies, Products and Practices, Infrastructure and Capacity
building. During XII Five Year Plan, these dimensions have been embedded and
mainstreamed into Missions/Programmes/Schemes of Ministry of Agriculture
including NMSA through a process of restructuring of various schemes/missions
implemented during XI Five Year Plan and convergence with other related
programmes of Central/State Governments.
94. Solution: b)
Agriculture cooperatives distribute around 16% of agricultural credit in India. For
more info refer Page No. – 95, India – 2015
95. Solution: b)
The tractor density in India is 16 tractors per 1000 hectares whereas world average is
19.
Please refer page no. 98, India – 2015
Some interesting articles on farm mechanization in India:
http://www.thehindubusinessline.com/opinion/farm-mechanisation-indian-
style/article4921271.ece
http://www.thehindu.com/business/Industry/talking-business-india-is-still-in-
early-stages-of-farm-mechanisation/article6345284.ece
96. Solution: b)
The National School of Drama is one of the foremost theatre training institutions in
the world and the only one of its kind in India. It was set up by the Sangeet Natak
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Akademi as one of its constituent units in 1959. In 1975, it became an independent
entity and was registered as an autonomous organization under the Societies
Registration Act XXI of 1860, fully financed by the Ministry of Culture, Government
of India.
http://nsd.gov.in/delhi/index.php/about-nsd/
97. Solution: c)
Sahitya Akademi in 1996, instituted a Fellowship in the name of the great scholar
and aesthete Dr. Ananda Coomaraswamy to be offered to scholars from Asian
countries to pursue literary projects of their choice.
http://sahitya-akademi.gov.in/sahitya-
akademi/fellows/sahitya_akademi_fellowship.jsp#anand
http://en.wikipedia.org/wiki/Ananda_Coomaraswamy
98. Solution: d)
Other four cities where they are located are: Udaipur, Allahabad, Nagpur and
Kolkata
99. Solution:
In order to promote tourism, Tourist Visa on Arrival (TVOA) scheme was
introduced for the nationals of five countries, namely, Japan, Singapore, Finland,
Luxembourg and New Zealand with effect from 01.01.2010 for one year. The scheme
has been found to be useful by the foreign nationals.
Visa on Arrival Facility is available for holders of passport of following countries
Australia, Brazil, Cambodia, Cook Islands, Djibouti, Fiji, Finland, Germany, Guyana,
Indonesia, Israel, Japan, Jordan, Kenya, Kiribati, Laos, Luxembourg, Marshall
Islands, Mauritius, Mexico, Micronesia, Myanmar, Nauru,
New Zealand,Niue Island, Norway, Oman, Palau, Palestine, Papua New Guinea,
Philippines, Republic of Korea,
Russia, Samoa, Singapore, Solomon Islands,Thailand, Tonga, Tuvalu, UAE, Ukraine,
USA, Vanuatu, Vietnam.
Visa on Arrival is not applicable to Diplomatic/Official Passports.
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100. Solution: d)
Background of the National Statistical Commission (NSC)
A Commission set up by the Government in January 2000 under the Chairmanship
of Dr. C. Rangarajan reviewed the statistical system and the entire gamut of Official
Statistics in the country. The Rangarajan Commission submitted its report to the
Government in August 2001. One of the key recommendations of this Commission
was to establish a permanent National Commission on Statistics to serve as a nodal
and empowered body for all core statistical activities of the country, evolve, monitor
and enforce statistical priorities and standards and to ensure statistical co-ordination
among the different agencies involved. The Rangarajan Commission also
recommended that the Commission be set up initially through a Government order.
Rangarajan Commission Report
In line with the recommendations of the Rangarajan Commission, the Government
of India ordered the setting up of a permanent National Statistical Commission
(NSC) vide Notification No. 85 dated 1st June 2005published in the Gazette of India,
Extraordinary, Part-III-Section 4.
The NSC is mandated to perform the following functions, namely: -
a. to identify the core statistics, which are of national importance and are critical
to the development of the economy;
b. to constitute professional committees or working groups to assist the
Commission on various technical issues;
c. to evolve national policies and priorities relating to the statistical system;
d. to evolve standard statistical concepts, definitions, classifications and
methodologies in different areas in statistics and lay down national quality
standards on core statistics;
e. to evolve national strategies for the collection, tabulation and dissemination of
core statistics, including the release calendar for various data sets;
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f. to evolve national strategies for human resource development on official
statistics including information technology and communication needs of the
statistical system;
g. to evolve measures for improving public trust in official statistics;
h. to evolve measures for effective co-ordination with State Governments and
Union Territory Administrations on statistical activities including
strengthening of existing institutional mechanisms;
i. to exercise statistical co-ordination between Ministries, Departments and
other agencies of the Central Government;
j. to exercise statistical audit over the statistical activities to ensure quality and
integrity of the statistical products;
k. to recommend to the Central Government, or any State Government, as the
case may be, measures to effectively implement the standards, strategies and
other measures evolved under clauses (c) to (h);
l. to advise the Government on the requirement of legislative measures on
statistical matters including the statute for the National Statistical
Commission; and
m. to monitor and review the functioning of the statistical system in the light of
the laid down policies, standards and methodologies and recommend
measures for enhanced performance.
Powers of the NSC
The Commission has the requisite autonomy to discharge its functions effectively
and efficiently. In particular, the Commission has the powers to: -
Insights Mock Tests – 2015: Solutions – Test - 16
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require production of any document which in the opinion of the
Commission will serve or may serve statistical purposes;
require statistical agencies and institutions to provide details of
statistical activities, including concepts and definitions used,
methodologies followed, quality standards adopted, sampling and
non-sampling errors, etc. in respect of core statistics;
require attendance of any person including any public servant on
matters connected with core statistics; and
issuing notices for examination of witnesses and documents or any
matters connected with core statistics.