UPSC 2011 Prelims Questions with Answers

Explanation

Brahmaputra makes a "U" turn in its course to flow into India due to the Syntaxial bending of geologically young Himalayas. The Himalayan mountains’ gently arching ranges on their western and eastern extremities are abruptly bent southward in deep knee bends known as syntaxial bends. The massive mountains seem to bend around a pivotal point on both the ends. The westernmost point is located where the Hindu Kush joins the Karakoram south of the Pamir. Arunachal Pradesh’s eastern border features a similarly abrupt, almost hairpin curve when the mountain’s strike abruptly shifts from an easterly to a southerly tendency.

Explanation

The above characteristics clearly define Gujarat.

The northern region of Gujarat comprises the Kutch and Banaskantha districts, which are characterized by arid and semi-arid conditions due to low annual rainfall (less than 500 mm). The Thar Desert extends into parts of Gujarat, contributing to the dry climate. Gujarat is the largest producer of cotton in India (~30% of national production). The central districts, such as Ahmedabad, Surendranagar, Rajkot, and Bhavnagar, have ideal black soil (Regur soil) that supports cotton cultivation. Gujarat is highly commercialized in agriculture, focusing on cotton, groundnut, tobacco, and castor rather than food crops. The Saurashtra and Kutch regions specialize in cash crops due to their soil type and climatic conditions.

Explanation

The 73rd Constitutional Amendment Act, 1992 added a new part IX to the Constitution of India. This part is entitled "The Panchayats" and contains articles 243 to 243 O.

Statement 1 is incorrect: The 74th Constitutional Amendment Act provides for a District Planning Committee to consolidate the plans prepared by Panchayats and Municipalities (Article 243ZD) not 73rd Amendment.

Statement 2 is correct: According to the 73rd Constitutional Amendment Act, the conduct of Panchayati Raj elections is vested in the state election commission(under Article 243-k) consisting of a state election commissioner appointed by the Governor of the state.

Statement 3 is correct: Under article 243-I. 73rd Amendment Act also mandates for the establishment of State Finance Commissions.

Explanation

Statement 1 is correct: Article 243 ZE of Part IX A provides for establishment of the Metropolitan Planning Committee (MPC). Formation of Metropolitan Planning Committees (MPCs)is mandated in all metropolitan areas where population is above 10 Lakh. The elected officials of the municipalities and the heads of the panchayats in the metropolitan area elects 2/3rd of the MPC members from among themselves. 1/3rd are nominated. Elected members are proportionate to the rural: urban population ratio.

Statement 2 is correct: Under Article 243-ZE, MPC prepares the draft development plans for the metropolitan area.

Statement 3 is incorrect: MPC helps in draft planning and not in implementing the Govt sponsored schemes in the metropolitan area.

Explanation

Exports are goods and services that are produced in one country used by another. In economic terms, when foreign nationals visit a country and spend money on goods and services--such as accommodation, food, transportation, and entertainment--it is considered an export for the host country. This is because the country is providing services to non-residents, resulting in an inflow of foreign currency. Therefore, the expenditures by foreign visitors during events like the XIX Commonwealth Games in India are classified as exports.

Explanation

Statement 1 is correct: Devaluation makes a coun-try’s exports cheaper for foreigners and its imports more expensive. This can lead to an increase in export volumes and a decrease in import volumes, which can improve the balance of trade (the difference between exports and imports of goods). An improved trade balance can help reduce the current account deficit.

Statement 2 is incorrect: Reducing export subsidies can make a country’s exports less competitive internationally, potentially decreasing export volumes and worsening the current account deficit.

Statement 3 is correct: While FDI and FII inflows are recorded in the capital account, they can indirectly affect the current account. Increased FDI can boost domestic production capacity, leading to higher exports. FDI and FII inflows can strengthen the domestic currency, making imports cheaper and potentially widening the CAD.

Explanation

The International Monetary Fund (IMF) is an inter-national organization that provides financial assistance to its member countries facing balance of payments problems. The IMF’s primary purpose is to ensure the stability of the international monetary system by offering financial support and policy advice to its members. Only countries that are members of the IMF are eligible to receive loans. As of now, the IMF has 190 member countries. Non-member countries are not eligible for IMF financial assistance. The IMF provides financial support to member countries to help them address balance of payments problems, stabilize their economies, and restore sustainable economic growth. This assistance is typically accompanied by policy conditions aimed at correcting the underlying economic issues that led to the need for support.

Explanation

FDI is characterized by long-term investments aimed at establishing a lasting interest in specific sectors, whereas FII involves short-term investments that can be easily liquidated. FDI contributes to the development of specific industries through direct involvement, while FII enhances capital availability across the financial markets without direct control over companies. Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII) are two distinct forms of foreign investments, each with unique characteristics and impacts on the host country’s economy. Foreign Direct Investment (FDI) involves a long-term commitment where a foreign entity invests directly in the physical assets of a domestic company, such as establishing operations, acquiring machinery, or building infrastructure. It is typically directed towards specific sectors or industries where the foreign investor seeks to establish a lasting interest and exert significant control or influence over the management of the enterprise. Beyond capital infusion, FDI brings in advanced management practices, technology transfer, and can lead to job creation and overall economic development in the targeted sectors. Foreign Institutional Investment (FII) refers to investments made by foreign institutional investors, such as mutual funds, pension funds, and insurance companies, in a country’s financial markets, primarily in equities and bonds. It increases the overall capital availability in the financial markets, providing liquidity and potentially lowering the cost of capital for domestic firms. FII investments are generally more fluid and can be withdrawn quickly, making them more sensitive to market conditions and contributing to potential volatility.

Explanation

The Finance Commission of India is established under Article 280 of the Constitution. Its primary role is to make recommendations on the distribution of tax revenues between the Centre and the States and among the States themselves. Statement (a) is incorrect: Encouraging foreign capital inflow is not within the mandate of the Finance Commission. This is more relevant to policies of the Ministry of Finance or organizations like the RBI. Statement (b) is incorrect: The Finance Commission is not concerned with PSUs; its role is limited to tax revenue distribution between Centre and States and providing grants-in-aid. Statement (c) is incorrect: While the Finance Commission ensures equitable financial distribution, transparency in financial administration is not explicitly its function. This role is more aligned with bodies like the Comptroller and Auditor General (CAG). Thus, none of the given statements are correct in the context of the Finance Commission.

Explanation

Aam Admi Bima Yojana (AABY) is a Government of In-dia Social Security Scheme administered through Life Insurance Corporation of India (LIC) that provides Death and Disability cover to persons between the age group of 18 yrs to 59 yrs, under 48 identified vocational/ occupational groups /rural landless households.

Statement 1 is correct: The scheme covers the head of the family or an earning member in a rural landless household. It provides life and disability insurance benefits to economically weaker sections.

Statement 2 is incorrect: The age eligibility for this scheme is 18 to 59 years, not 30 to 65 years. It provides insurance cover for a sum of Rs 30,000/- on natural death, Rs. 75,000/- on death due to accident, Rs. 37,500/- for partial permanent disability (loss of one eye or one limb) due to accident and Rs. 75,000/- for total permanent disability (loss of two eyes or two limbs or loss of one eye and one limb) due to accident.

Statement 3 is correct: The scheme provides a scholarship of 100 per month for up to two children of the insured, studying in classes 9 to 12. The scholarship is meant to support education expenses for children of insured individuals.