UPSC 2021 Prelims Questions with Answers

Explanation

Ishwar Chandra Vidyasagar (1820-1891) was appointed as the secretary of the governing body of Bethune School/ College. The Bethune Female School, established in 1849 in Kolkata (then Calcutta) was one of the first schools in India dedicated to the education of girls. It was founded by John Elliot Drinkwater Bethune, a prominent social reformer and advocate for women’s education in India. Vidyasagar was a strong advocate for women’s rights and education, and his involvement with the Bethune School was part of his broader efforts to reform Indian society, including his campaigns for widow remarriage and the abolition of child marriage. It was mainly due to his efforts that the Hindu Widows’ Remarriage Act, 1856 was passed.

Explanation

The R2 Code of Practices (R2 Standard) is a set of guidelines designed to promote environmentally responsible practices in the electronics recycling industry. It provides a framework for recyclers to ensure that electronic waste (e-waste) is managed in a way that protects human health, safety, and the environment. The R2 Standard covers areas such as:

Safe handling and disposal of hazardous materials.

Data security and destruction.

Worker health and safety.

Environmental responsibility.

Explanation

Option (a) is incorrect: The Indian tricolour was designed by Pingali Venkayya, who was a freedom fighter and was a follower of Mahatma Gandhi. Pingali Venkayya had designed the flag of India and presented it to Mahatma Gandhi in 1921 during the session of the All India Congress Committee in Vijayawada.

Option (b) is incorrect: Dr. Pattabhi Sitaramaiah, a member of the working committee was one of the key leaders of Quit India Movement. His contributions were largely at the national level rather than being confined to any one location like Madanapalle.

Option (c) is correct: The National Anthem was created by Rabindra Nath Tagore and it was originally called ‘Bharat Bhagya Bidhata’. The Anthem was first sung at the annual session of the Indian National Congress in Calcutta on December 27, 1911. Rabindranath Tagore translated the National Anthem from Bengali to English in Madanapalle of Andhra Pradesh.

Option (d) is incorrect: The Theosophical Society was founded by Madame H. P. Blavatsky and Colonel Olcott in New York in 1875. In 1882, the headquarters of the Society were established in Adyar, near Madras (now Chennai) in India.

Explanation

"Songs from Prison" is a collection of ancient Indian religious lyrics translated into English by Mohandas Karamchand Gandhi. During his imprisonment in Yeravda Jail, Poona, in 1934, Gandhi undertook the task of translating these spiritual texts to make them accessible to a broader audience. His work reflects a deep engagement with spirituality and an effort to share the essence of Indian religious thought with the Englishspeaking world.

Explanation

Statement 1 is correct: Devaluation is a decrease in the value of a country’s currency relative to other currencies. It means it takes more of the domestic currency to buy one unit of a foreign currency. For example, if the exchange rate changes from 70 to 80 per dollar, the rupee has been devalued. Devaluation makes a country’s exports cheaper for foreign buyers. This can increase demand for exports, leading to higher export volumes and potentially improving the trade balance (ex-ports minus imports).

Statement 2 is incorrect: Devaluation means a decrease(not increase) in the value of the domestic currency relative to foreign currencies. It takes more of the domestic currency to buy one unit of a foreign currency.

Statement 3 is incorrect: Devaluation can potentially improve the trade balance over time by boosting exports and reducing imports, but it is not guaranteed. The trade balance may deteriorate because import costs rise immediately, while export volumes may take time to increase. This phenomenon is called the J-curve effect. If a country devalues its currency, it still has to pay higher prices for imported oil, machinery, and technology. Over time, as foreign buyers demand more of its cheaper exports, the trade balance may improve.

Explanation

Foreign Direct Investment (FDI) refers to an investment made by an entity (typically a company or individual) from one country into a business or asset in another country, with the intent of establishing a lasting interest and exerting a degree of influence over the enterprise’s management and operations. It’s not just about a financial transaction but more about substantial and enduring involvement. Foreign currency convertible bonds (FCCBs) are debt instruments issued by a company in a foreign currency, which can be converted into equity shares at a future date. Because FCCBs can be converted into equity, and thus represent a potential ownership stake so They are considered a component of FDI. Foreign Institutional Investment (FII) are investments made by foreign institutions in the financial markets of another country. In India, if an FII’s investment exceeds 10% of the post-issue paid-up equity capital of a company, it is reclassified as FD Global Depository Receipts (GDRs) are financial instruments used by companies to raise capital from international markets. They represent shares of a foreign company and are traded on international stock exchanges. Investments through GDRs are treated as FDI since they result in foreign equity participation in the issuing company. Non-Resident External (NRE) Deposits are deposits held by non-resident Indians (NRIs) in Indian banks in Indian rupees. They are primarily a means for NRIs to invest their savings in India. While they represent a flow of foreign funds into India, they are not considered FDI. They are more akin to portfolio investments or remittance as they don’t involve a direct stake in a business or substantial management influence.

Explanation

The Ministry of Tribal Affairs (MoTA) is the nodal agency for the implementation of the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006. The ministry deals with forest and livelihood objectives at the national level.

Explanation

Statement 1 is correct: St. Francis Xavier, along with St. Ignatius of Loyola and others, co-founded the Society of Jesus (Jesuit Order) in 1534. The Jesuits were established to promote education, missionary work, and counter the Protestant Reformation.

Statement 2 is incorrect: He died on December 3, 1552, on Shangchuan Island (Sancian Island), off the coast of China, while waiting for a ship to take him to mainland China for missionary work. His body was later brought to Goa, where it is enshrined in the Basilica of Bom Jesus, a church dedicated to him.

Statement 3 is correct: The Feast of St. Francis Xavier is celebrated annually on December 3 in Goa.

Explanation

Statement 1 is incorrect: In the report ‘Reorganisation of the Machinery of Central Government’ (1950) Sh. N. Gopalaswamy Ayyangar, suggested the grouping of ministries, improvement in the capabilities of the personnel, and also in the working of the Organisation and Method(O&M) Division. It nowhere mentions that a minister and a secretary be designated solely for pursuing the subject of administrative reform and promoting it. Moreover, it was the 1st ARC that suggested a minister and a secretary be designated solely for pursuing the subject of administrative reform and promoting it.

Statement 2 is correct: In 1970, on the basis of the recommendations of the Administrative Reforms Commission, the Department of Personnel was set up.

Explanation

Bond yield is the return an investor gets on that bond or on a particular government security. It depends on the price of the bond which is impacted by its demand.

Statement 1, 2 and 3 are correct:

Factor Scenario Impact Effect on Bond Yields

1. US Federal Reserve Actions Raises Inter-est Rates Capital outflows from In-dia as US bonds become more attractive. Yields rise due to lower demand for Indian bonds. Lowers Interest Rates Capital inflows to India as Indian bonds offer better returns. Yields fall due to higher demand for Indian bonds.

2. RBI Actions Increases Repo Rates (Tightening Policy) Higher borrowing costs slow down credit growth and economic activity. Yields rise as new bonds offer higher interest. Cuts Repo Rates (Easing Policy) Cheaper borrowing encourages economic activity and credit flow. Yields fall as new bonds are issued at lower rates.

3. Inflation and Short-Term Interest Rates Rising Inflation Reduces the real value of bond interest payments. Yields rise to compensate for inflation. Falling Inflation Improves real returns on bonds, making them more attractive. Yields fall due to increased bond demand.