UPSC 2015 Prelims Questions with Answers

Explanation

Statement 1 is correct: Budget deficit is used to define a status of financial health in which expenditures exceed revenue. Revenue Expenditure is the part of government spending that does not result in the production of assets such as Salaries, wages, pensions, subsidies, and interest payments etc. Reducing Revenue Expenditure involves cutting down on the government’s routine expenses, such as salaries, subsidies, and administrative costs. By streamlining operations and eliminating wasteful spending, the government can lower its revenue expenditure and reduce the budget deficit.

Statement 3 is correct: Rationalizing Subsidies entails reviewing and possibly reducing subsidies that are inefficient or benefit higher-income groups disproportionately. By targeting subsidies more effectively, the government can decrease un-necessary spending, aiding in deficit reduction. Statements 2 and 4 are incorrect:

Introducing New Welfare Schemes without corresponding revenue sources can increase government expenditure, potentially widening the budget deficit. Therefore, this action may not contribute to deficit reduction. Promoting industrial expansion can boost economic growth and over time increase government revenues through higher tax collections. However, the effects of such measures are typically long-term and may not provide immediate relief to a budget deficit.

Explanation

Convertibility of a currency means that it can be freely exchanged for other currencies and vice versa with-out restrictions. It essentially means that there are no limitations on the flow of the currency in and out of the coun-try. When a currency is convertible, individuals, businesses, and investors can easily convert it to other currencies to make payments abroad, invest in foreign assets, or engage in other inter-national transactions. Similarly, they can convert foreign currencies back into the domestic currency. India has current account convertibility, meaning that there are generally no restrictions on converting rupees for trade-related purposes. There are some regulations on capital account transactions, although these have been progressively liberalized over time.

Explanation

International liquidity refers to the availability of acceptable means of payment for international transactions. It’s essentially about having enough of the currencies that are widely used and accepted in global trade and finance. Historically, gold played this role, but in the modern era, "hard currencies," particularly the US dollar, have become the primary reserve currencies and mediums of exchange for international transactions. The "problem of international liquidity" arises when there is a shortage of these hard currencies. If countries don’t have enough dollars (or other widely accepted currencies) to pay for their imports, service their debts, or invest abroad, it can disrupt international trade and financial flows.

Explanation

Extremities of India:

Guhar Moti is the westernmost point of India. It is a small village located in the Kutch district of Gujarat. The northernmost point of India is located in the eastern Karakoram range in the Himalayas, near Indira Col. The easternmost point is Kibithu in Arunachal Pradesh. Indira Point in Great Nicobar Island is the southernmost point.

Explanation

Pair 1 is correctly matched: Srisailam is a famous pilgrimage site located in the Nallamala Hills of Andhra Pradesh. It is home to the Mallikarjuna Jyotirlinga Temple, one of the 12 Jyotirlingas of Lord Shiva. They are a significant range in southern India, located along the border of Andhra Pradesh and Telangana. The Srisailam Sanctuary is also located in this region which is known for its rich biodiversity and the Srisailam Dam on the Krishna River.

Pair 2 is incorrectly matched: Omkareshwar is situated on the Mandhata hills in Madhya Pradesh (ancient name: Shivpuri). The name "Omkareshwar" comes from the way the River Narmada flows here as it circles the Mandhata hill in the shape of a "Om." Omkareshwar is one of Shiva’s 12 cherished Jyotirlinga shrines.

Pair 3 is incorrectly matched: Pushkar is known for the Pushkar Lake and the Brahma Temple. It is located in the Aravalli Range in Rajasthan, not the Mahadeo Hills. Pushkar is a major pilgrimage site associated with the worship of Lord Brahma. The Mahadeo Hills which are part of the Satpura Range are located in the central Indian region.

Explanation

The Index of Eight Core Industries (ICI) is a monthly production index that measures the performance of eight crucial sectors of the Indian economy. These industries collectively account for 40.27% of the weight of items included in the Index of Industrial Production (IIP) as of September 2024. The eight core industries and their respective weights in the ICI are as follows:

Refinery Products: 28.04% Electricity: 19.85% Steel: 17.92% Coal: 10.33% Crude Oil: 8.98% Natural Gas: 6.88% Cement: 5.37% Fertilizers: 2.63%

Explanation

Option (b) is correct: Jordan is a landlocked coun-try on the eastern edge of the Dead Sea, which borders Israel and Palestine. While it has access to the Red Sea via the Gulf of Aqaba, it does not have any coastline along the Mediterranean.

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

Syria has a strategic coastline along the Mediterranean Sea to its west. The coastal cities of Latakia and Tartus serve as vital trade and military hubs, with Tartus hosting a Russian naval facility. Syria’s Mediterranean coast provides it significant access to this international waterway. Lebanon boasts a stunning coastline along the Mediterranean Sea. Cities like Beirut and Tripoli are vital Mediterranean ports, with Beirut being a historical hub for trade and culture since ancient times. Lebanon’s position on the Mediterranean has made it a cultural crossroads between East and West with influences from the Phoenician, Greek, and Roman civilizations. Israel has a coast along the Mediterranean Sea with important cities like Tel Aviv and Haifa located there.