UPSC 1997 Prelims Questions with Answers

Explanation

The total stock of money in circulation among the public at a particular point of time is called money supply.

Option (b) is correct: Broad money (M3) represents the total money supply in the economy that is readily available for spending. It includes currency with the public and various bank deposits (demand and time deposits), but not the deposits that commercial banks hold with the RBI. Broad money (M3) in India includes:

Currency with the public: This refers to all currency notes and coins in circulation outside of banks. Demand deposits with banks: These are checking accounts or current accounts that allow depositors to withdraw funds on demand. Time deposits with banks: These are savings accounts or fixed deposits where funds are held for a specific period and cannot be withdrawn before maturity without penalty. "Other deposits with RBI" are a component of Reserve Money (M0), also known as high-powered money. These deposits are held by commercial banks with the Reserve Bank of India (RBI) and are part of the monetary base. While they are important for monetary policy, they are not included in the definition of broad money (M3).

Explanation

In Germany, the constructive vote of no confidence ("Konstruktives Misstrauensvotum") is a unique parliamentary mechanism under Article 67 of the German Basic Law (Grundgesetz). It allows the Bundestag (the federal parliament) to pass a no-confidence motion against the Chancellor only if a successor with majority support is elected simultaneously. This system ensures government stability by preventing leadership vacuums and political deadlocks.

Explanation

In proportional representation (PR), a candidate needs 50% + 1 vote to win. In a two-party system, this majority is often secured automatically. PR ensures that the number of seats a party or group wins aligns with its share of votes.

Explanation

India is the largest producer of fuelwood in the world due to its extensive use in rural areas for cooking and heating. In rural India, traditional biomass sources like firewood account for a significant share of energy consumption. Fuelwoodis sourced from forests, plantations, and farm trees, especially in states with dense forests and agroforestry practices.

Option (a), (b) and (d) are incorrect:

Indonesia: A major producer of timber, but its fuelwood production is significantly lower than India’s due to its smaller rural population relying on fuelwood. Russia: Focuses on commercial timber and industrial wood rather than fuelwood. China: While biomass energy is significant, China’s reliance on coal and other energy sources reduces its dependence on fuelwood compared to India.

Explanation

In Russia, the electoral system for the State Duma (Lower House of Parliament) in the 1990s followed a mixed electoral system. This mixed electoral system was in place from 1993 to 2003. 75% of the seats were filled using the first-past-the-post (FPTP) system, where candidates with the most votes in single-member constituencies won. 25% of the seats were filled using proportional representation (PR), where parties received seats based on their percentage of the national vote.

Explanation

Belgium and Luxembourg had a monetary agreement allowing their equal-valued francs (BEF & LUF) to circulate freely. This prefigured the 1999 Economic and Monetary Union (EMU) and the Euro ().

Explanation

The Minimum Alternative Tax (MAT) was introduced in the Union Budget for 1996-97 to ensure that companies with substantial book profits pay a minimum amount of tax, even if their taxable income is reduced due to exemptions and deductions. MAT was introduced under Section 115JB of the Income Tax Act to prevent large corporations from exploiting tax loopholes and paying little to no taxes. This initiative was crucial for ensuring tax equity and broadening the corporate tax base. The MAT rate was initially set at 7.5% of book profits and has undergone periodic revisions over the years.

Explanation

Article 129 grants the Supreme Court the power to punish for contempt while Article 215 provides similar powers to the High Courts. Judicial activism on the other hand is an innovation of courts. Assertion (A) is true: Contempt of Court, per Section 2(b) of the Contempt of Courts Act, 1971, means willful disobedience to court orders or breach of an undertaking given to the court. Reason (R) is true: Judicial activism enables judges to interpret the law and Constitution broadly, influencing public policy. However, it requires the power to punish contempt to maintain the judiciary’s effectiveness and authority. Reason (R) does not explain Assertion (A) because the courts punish contempt to maintain their authority and ensure compliance with their rulings, thus upholding the rule of law and not aimed at judicial activism.

Explanation

Surface tension is the force that acts on the surface of a liquid, causing it to contract and minimize its surface area. This effect occurs because molecules at the surface of the liquid experience a net inward force due to the attractive forces between the molecules. As a result, the liquid tends to form shapes that have the least surface area, such as spherical droplets. This tendency to minimize surface area is why liquid droplets form spherical shapes in free space, as a sphere has the smallest surface area for a given volume.

Explanation

A vector quantity is a physical quantity that has both magnitude and direction. In addition to how much of a quantity there is, you also need to know the direction in which it acts. Some examples of vector quantities include force, velocity, acceleration and displacement. Momentum is a vector quantity because it has both magnitude and direction (it depends on the direction of motion and the velocity of the object).