UPSC 1998 Prelims Questions with Answers

Explanation

The correct order of these currencies in terms of higher value per Indian rupee (as per 1998 exchange rates) was:

1. US Dollar (USD) Highest

2. Canadian Dollar (CAD)

3. New Zealand Dollar (NZD)

4. Hong Kong Dollar (HKD) Lowest The US dollar had the highest exchange value, while the Hong Kong dollar was the lowest among the listed currencies.

Explanation

Statements 2 and 3 are correct: The exchange rate of a currency is primarily determined by:

Demand for goods/services provided by the country: If a country’s exports are in high demand, its currency appreciates in value due to increased foreign exchange inflows. Hence,

statement 2 is correct.

Stability of the government: Political stability and good governance boost investor confidence, strengthening the currency. Political instability can cause depreciation. Hence,

statement 3 is correct.

Statements 1 and 4 are incorrect:

The World Bank does not set exchange rates; currency values are determined by market forces under floating exchange rate systems. Economic potential does influence long-term currency value, but it is not a direct determinant of daily exchange rate fluctuations. As per the International Monetary Fund (IMF) Exchange Rate Policy Framework, exchange rates are mainly driven by trade demand, capital flows, inflation, and interest rates.

Explanation

As of 1998 and even in current times, the largest share of India’s imports, in terms of rupee value, came from the Asia and Oceania region. This was primarily due to India’s heavy dependence on crude oil and petroleum imports from West Asian (Middle Eastern) countries such as Saudi Arabia, Iran, Iraq, and the UAE. Additionally, India imported electronic goods, machinery, and chemicals from East Asian economies like China, Japan, and South Korea.

Explanation

Capital Account Convertibility (CAC) allows the unrestricted exchange of the Indian rupee with foreign currencies for transactions related to investment and financial assets, such as foreign direct investment (FDI), portfolio investment, and external borrowings. Unlike current account convertibility, which deals with trade in goods and services, Capital account convertibility enables cross-border capital flows without regulatory restrictions. India has partially implemented Capital Account Convertibility, with restrictions on foreign investments in specific sectors and external borrowings.

Explanation

A is matched with 2: Dr. Raja Ramanna was a distinguished Indian physicist best known for his role in the development of India’s nuclear program, including the Pokhran-I nuclear test in 1974. B is matched with 5: Dr. Swaminathan is renowned for his contributions to the Green Revolution in India, which transformed the country into a self-sufficient food producer. His focus on developing high-yield and disease-resistant crop varieties, combined with sustainable agricultural practices, earned him global recognition in agricultural science. C is matched with 4: Prof. Udupi Ramachandra Rao was a visionary space scientist who led the design and launch of India’s first satellite, Aryabhata, in 1975. Also as the chairman of ISRO, he contributed significantly to advancing India’s space program. D is matched with 3: Prof. Meghnad Saha is celebrated for the Saha Ionization Equation, which explains the physical and chemical conditions in stars. He also made notable contributions to thermodynamics.

Explanation

Zirconium is an essential element for the construction of nuclear reactors due to its unique properties:

Low Neutron Absorption: Zirconium has a low neutron absorption cross-section, making it ideal for use in nuclear reactors as it does not interfere significantly with the nuclear chain reaction. High Corrosion Resistance: It is resistant to corrosion in the presence of coolant water, including high-temperature water, which is commonly used in nuclear reactors. Strength and Durability: Zirconium alloys are strong and durable, making them suitable for structural components like cladding for fuel rods. This combination of properties makes zirconium critical in the nuclear industry.

Explanation

The Tenth Schedule, known as the Anti-Defection Act, was added in 1985 during Rajiv Gandhi government by 52nd CAA to curb political defections and promote stability in the Indian political system. Options (a), (b) and (c) are incorrect:

The Second Schedule contains provisions regarding the salaries and allowances of various constitutional office holders. Fifth Schedule addresses the administration and control of Scheduled Areas and Scheduled Tribes. Eighth Schedule lists the 22 recognized languages.

Explanation

Option (c) is correct: The floating islands in Manipur, known as Phoomdis, are composed of weeds, decaying vegetation, and suspended silt. These islands provide a unique habitat for the people living in the region and have been a part of the local culture and ecology for centuries. Options (a), (b) and (d) are incorrect:

Tipis are traditional conical tents used by some Indigenous tribes of North America, especially the Plains Indians. They are made from wooden poles and animal skins, and they are not related to the floating islands in Manipur. Barkhans are crescent-shaped sand dunes typically found in deserts like the Sahara Desert. They are not related to floating vegetation islands and do not exist in Manipur. Izba is a term used for traditional wooden houses or cabins, typically in Russia or Slavic regions, and it does not relate to floating islands or structures in Manipur.

Explanation

Option (a) is correct: Damodar River is the east-flow-ing river that has a rift valley due to down warping. The river flows through the Damodar Valley, which is one of the most important industrial regions in India, situated between the Chota Nagpur Plateau and the Bengal Basin. The valley formed due to geological processes like down warping and faulting, which allowed the river to cut through the region.

Option (b) is incorrect: The Mahanadi is an east-flowing river that does not flow through a rift valley. It originates from the Chhattisgarh Plateau and flows towards the east into the Bay of Bengal.

Option (c) is incorrect: The Sone River is a tributary of the Ganga and flows in the region of Bihar and Uttar Pradesh, but it does not have a rift valley.

Option (d) is incorrect: The Yamuna River is another major river in India, but it does not have a rift valley. It flows through the Himalayan foothills and North India before joining the Ganga.

Explanation

A is matched with 4: Blue vitriol is the common name for copper sulphate, known for its bright blue color. B is matched with 3: Epsom salt is the common name for magnesium sulphate, often used in bath salts and as a laxative. C is matched with 1: Baking soda is sodium bicarbonate, used in cooking as a leavening agent. D is matched with 2: Caustic soda is the common name for sodium hydroxide (NaOH), a strong base used in industrial applications like soap making.