UPSC 2010 Prelims Questions with Answers

Explanation

In financial terminology, a "bear" refers to an investor who anticipates that the price of a particular security or the overall market will decline. Acting on this belief, such investors may engage in strategies like short selling, where they sell securities they do not currently own with the intention of re-purchasing them later at a lower price, thereby securing a profit. Options (b), (c) and (d) are incorrect:

An investor who expects prices to rise is called a bull, not a bear. Bulls are optimistic about the market and buy securities with the expectation of selling them at higher prices in the future. A shareholder or bondholder is simply an investor who owns shares or bonds, regardless of their market outlook. A lender or bondholder is not necessarily a bear. A bear is specifically an investor with a pessimistic outlook on the market or a security.

Explanation

Maize is widely cultivated for the production of ethanol, which is used as a biofuel. Ethanol is derived from the fermentation of sugars and starches found in maize kernels. The United States and Brazil are among the largest producers of maize-based ethanol, which serves as a renewable energy source and an alternative to fossil fuels. Options (a), (c), and (d) are incorrect:

Jatropha is primarily cultivated for its seeds, which contain oil that can be converted into biodiesel. It is not used for ethanol production because it does not contain significant amounts of starch or sugars that can be fermented into ethanol. Pongamia (also known as Millettia pinnata) is an oilseed crop. Its seeds contain oil that are used popularly for biodiesel for biodiesel production, not ethanol. Sunflower is primarily grown for edible oil production, sunflower does not have the starch or sugar content necessary for ethanol production.

Explanation

In India, the interest rates on savings accounts were de-regulated by the Reserve Bank of India (RBI) in 2011. This deregulation allowed individual banks to set their own interest rates on savings deposits. At the time when question was asked they were fixed by RBI, which now stands deregulated.

Explanation

Insectivorous plants like Venus flytraps and pitcher plants grow in nitrogen-poor, acidic, or waterlogged soils. They capture and digest insects to obtain essential nutrients such as nitrogen and phosphorus which are scarce in their environment. This adaptation allows them to thrive in nutrient-deficient habitats where other plants struggle. Though they perform photosynthesis but their carnivorous behavior supplements their nutritional needs which enables them to survive in challenging conditions.

Explanation

The Banking Ombudsman Scheme in India was established to provide an expeditious and cost-free forum for bank customers to resolve complaints relating to certain services rendered by banks. The scheme has undergone several revisions, with the most recent being the Reserve Bank - Integrated Ombudsman Scheme 2021 which integrates previous ombudsman schemes to streamline the grievance redressal process.

Option (a) is correct: The Reserve Bank of India (RBI) appoints the Banking Ombudsman to address customer grievances against banks.

Option (b) is correct: The Banking Ombudsman Scheme allows Non-Resident Indians (NRIs) with accounts in India to file complaints. NRIs can lodge complaints related to their banking transactions in India.

Option (c) is incorrect: The orders passed by the Banking Ombudsman are not final and binding. If either party (the complainant or the bank) is dissatisfied with the Ombudsman’s decision, they can appeal to the Appellate Authority (the Deputy Governor of the RBI) within 30 days of the order.

Option (d) is correct: The Banking Ombudsman Scheme provides a free and transparent mechanism for resolving complaints. Customers do not have to pay any fee to file a complaint.

Explanation

Mon 863 maize was genetically modified to produce a protein called Cry3Bb1 derived from the soil bacterium Bacillus thuringiensis (Bt). This protein is toxic to the corn rootworm which is a major pest that damages maize crops. By incorporating this trait, Mon 863 reduces the need for chemical pesticides and improves crop yields.

Explanation

"Commercial Banks refer to both scheduled and non-scheduled commercial banks which are regulated under Banking Regulation Act, 1949." Commercial banks operate on a ‘for-profit’ basis. They primarily engage in the acceptance of deposit and extend loans to the general public, businesses and the government.

Statement 1 is correct: Commercial banks often have tie-ups with brokerage firms or have their own investment wings to assist customers in buying and selling shares and securities. This service falls under the category of investment and wealth management services. Banks like SBI, ICICI, and HDFC Bank provide these services through demat accounts and trading platforms.

Statement 2 is correct: Many commercial banks have specialized departments to act as executors and trustees for the wills of their customers. In this role, banks manage the estate of deceased individuals and ensure that assets are distributed according to the terms of the will. Examples include RBI-autho-rized banks offering trust services.

Explanation

Option (a) is correct: Statement 1 is correct:

Coffee plants (Coffea arabica and Coffea robusta) thrive in hot tropical climates with temperatures between 15°C and 28°C, high humidity, and well-distributed rainfall. They are typically grown in regions near the equator such as Brazil, Colombia, and Ethiopia. Tea plants (Camellia sinensis) can be grown in both tropical and subtropical regions. They prefer cooler climates with temperatures between 13°C and 30°C and require well-distributed rainfall. Tea is cultivated in countries like India (Assam, Darjeeling), China, and Kenya.

Statement 2 is incorrect: Coffee plants are more commonly propagated from seeds. Seeds are sown to produce seedlings, which are then transplanted to the field. This method ensures genetic diversity among coffee plants. Tea is propagated by both seeds and stem cuttings. The vegetative propagation (stem cuttings) is more common in commercial cultivation because it ensures uniformity in plant characteristics and quality. Differences between Coffee and Tea Cultivation:

Factor Coffee Tea Climate Warm, humid tropical climate Cool, humid subtropical/tropical climate Temperature 15°C - 30°C 13°C - 30°C Rainfall 1,500 - 2,500 mm (moderate) 1,500 - 3,000 mm (higher) Altitude 600 - 2,000 meters 150 - 2,000 meters Soil Type Well-drained, slightly acidic (pH 6-6.5), loamy or volcanic soil Deep, fertile, well-drained acidic soil (pH 4.5-5.5) Shade vs. Sunlight Prefers shade for humidity Prefers open sunlight Temperature Sensitivity Sensitive to frost and extreme heat More adaptable but sensitive to extreme cold Major Growing Regions (India) Karnataka, Kerala, Tamil Nadu (Western Ghats) Assam, West Bengal (Darjeeling), Tamil Nadu (Nilgiris), Kerala Harvesting Beans are handpicked, fermented, dried, and roasted Leaves are plucked, withered, oxidized (for black tea), and dried Processing Roasting required before consumption Processed into different types (green, black, white, oolong)

Explanation

Option 1 is correct: Crop rotation helps maintain soil fertility by alternating crops that deplete nutrients with those that replenish them. It also reduces soil erosion by providing continuous ground cover. Thus, it plays a crucial role in soil conservation and sustainable agriculture.

Option 2 is correct: Sand fences are barriers placed to prevent the movement of sand and reduce soil erosion in arid and semi-arid regions, such as Rajasthan.

Option 3 is correct: Terracing involves cutting steps into slopes to reduce water runoff and prevent soil erosion, particularly in hilly areas. It is widely practiced in regions like the Himalayas.

Option 4 is correct: Wind breaks are rows of trees or shrubs planted to block the wind, reducing wind erosion and protecting the topsoil in open areas.

Explanation

Statement 1 is correct: Pongamia pinnata, also known as the Indian beech tree, grows naturally in arid and semi-arid regions of India. It is highly drought-tolerant, making it a suitable biodiesel crop for areas with limited water availability.

Statement 2 is correct: The seeds of Pongamia pinnata are rich in lipid content(oleic acid) which is a key component in the production of biodiesel. The high oil yield from the seeds makes Pongamia a viable and sustainable biodiesel source. Recently, it has been used for ethanol production.