insights mock tests – 2015: solutions – test - 16 · insights mock tests – 2015: solutions...

Insights Mock Tests – 2015: Solutions – Test - 16

http://www.insightsonindia.com INSIGHTS

1. Solution: d)

The first economic policy of the country 1948 - major highlights of the policy are

given below:

India will be a mixed economy.

Some of the important industries were put under the Central List such as coal,

power, railways, civil aviation, arms and ammunition, defence, etc.

Some other industries (usually of medium category) were put under a State

List such as paper, medicines, textiles, cycles, rickshaws, two-wheelers, etc.

Rest of the industries (not covered by either the central or the State Lists) were

left open for private sector investment—with many of them having the

provision of compulsory licensing.

2. Solution: a)

http://www.cci.gov.in/index.php?option=com_content&task=view&id=12

http://en.wikipedia.org/wiki/Competition_Commission_of_India

3. Solution: d)

Basically, in 1990 and 1991, there were several inter-connected events which were

growing unfavourable for the Indian economy.

Due to the Gulf War (1990–91), the higher oil prices were fastly23 depleting

India’s foreign reserves.

Sharp decline in the private remittances from the overseas Indian workers in

the wake of the Gulf War, specially from the Gulf region.

Inflation peaking at nearly 17 per cent.

The gross fiscal deficit of the central government reaching 8.4 per cent of the

GDP.

By the month of June 1991, India’s foreign exchange had declined to just two

weeks of import coverage.

4. Solution: a)

http://www.cci.gov.in/index.php?option=com_content&task=view&id=12

http://en.wikipedia.org/wiki/Competition_Commission_of_India



Disinvestment is a process of selling government equities in public sector

enterprises. Disinvestment in India is seen connected to three major inter-related

areas, namely—

A tool of public sector reforms

A part of the economic reforms started mid-1991. It has to be done as a

complementary part of the ‘de-reservation of industries’.

Initially motivated by the need to raise resources for the budgetary

allocations.

The approach towards public sector reforms in India has been much more cautious

than that of the other developing countries. India did not follow the radical solution

to it—under which outright privatisation of commercially viable PSUs is done and of

the unviable ones is completely closed.

5. Solution: a)

Disinvestment started in India with a high political caution—in a symbolic way

known as the ‘token’ disinvestment. The general policy was to sell the shares of the

PSUs maximum upto the 49 per cent (i.e. maintaining government ownership of the

companies). But in practice, shares were sold to the tune of 5–10 per cent only.

This phase of disinvestment though brought some extra funds to the government

(which were used to fill up the fiscal deficit considering the proceeds as the ‘capital

receipts’) it could not initiate any new element to the PSUs which could enhance

their efficiency.

It remained the major criticism of this type of disinvestment, and the experts around

the world started suggesting the Government to go for it in the way the ownership

could be transferred from the government to the private sector.

6. Solution: a)

The present disinvestment policy is based on the main ideology that:

Citizens have every right to own part of the shares of Public Sector

Undertakings

Public Sector Undertakings are the wealth of the Nation and this wealth

should rest in the hands of the people, and

While pursuing disinvestment, Government has to retain majority

shareholding, i.e. at least 51% and management control of the PSUs.



The action plan for disinvestment in profit making government companies is:

Already listed profitable PUSs (not meeting mandatory shareholding of 10%)

are to be made compliant by ‘Offer for Sale’ by Government or by the PSUs

through issue of fresh shares or a combination of both;

Unlisted PSUs with no accumulated losses and having earned net profit in

three preceding consecutive years are to be listed;

Follow-on public offers would be considered taking into consideration the

needs for capital investment of PSUs, on a case by case basis, and

Government could simultaneously or independently offer a portion of its

equity shareholding;

In all cases of disinvestment, the Government would retain at least 51%

equity and the management control.

7. Solution: a)

In simple words Gross Capital Formation is Investment. When people save, they

tend to invest. The percentage of the investment made each year out of the total GDP

is called ross Capital Formation.

So, Rate of Gross Capital Formation is arrived as follows: Rate of Capital Formation

= (Investments /GDP) X 100

The importance of the Gross Capital formation lies in the fact that this is that

part of GDP which helps in the growth of the GDP itself. This is a must for

achieving high rate of production, capital formation, changes in production

techniques and changing in the outlook of the people themselves.

To achieve, the Optimum rate of economic growth, the rate of capital

formation should be above 40%. In India, the gross capital formation for the

year of 2009-10 was 36.5% of the GDP. It was composed of 9.2% in Public

Sector and 24.9% in Private sector. The investment from the Household sector

was 11.7%. Investment from the corporate sector was 13.2%.

8. Solution: d)

FDI is prohibited under Government as well as Automatic Route for the following

sectors:

Retail Trading

Atomic Energy



Lottery Business

Gambling and Betting

Housing and Real Estate business

Agriculture (excluding Floriculture, Horticulture, Development of Seeds,

Animal Husbandry, Pisciculture and Cultivation of Vegetables, Mushrooms

etc. under controlled conditions and services related to agro and allied

sectors).

Plantations (Other than Tea plantations).

9. Solution: d)

FDI up to 100% is allowed under the automatic route in all activities/sectors except

the following which require prior approval of the Government:

Activities/items that require an Industrial License;

Proposals in which the foreign collaborator has an existing financial /

technical collaboration in India in the 'same' field,

Proposals for acquisition of shares in an existing Indian company in: Financial

services sector and where Securities & Exchange Board of India (Substantial

Acquisition of Shares and Takeovers ) Regulations, 1997 is attracted;

All proposals falling outside notified sectoral policy/caps or under sectors in

which FDI is not permitted.

FDI in sectors/activities to the extent permitted under automatic route does not

require any prior approval either by the Government or RBI. The investors are only

required to notify the Regional office concerned of RBI within 30 days of receipt of

inward remittances and file the required documents with that office within 30 days

of issue of shares to foreign investors.



10. Solution: c)

FDI in activities not covered under the automatic route requires prior Government

approval and are considered by the Foreign Investment Promotion Board (FIPB),

Ministry of Finance. Application can be made in Form FC-IL; Plain paper

applications carrying all relevant details are also accepted. No fee is payable.

General permission of RBI under FEMA.

Indian companies having foreign investment approval through FIPB route do not

require any further clearance from RBI for receiving inward remittance and issue of

shares to the foreign investors. The companies are required to notify the concerned

Regional office of the RBI of receipt of inward remittances within 30 days of such

receipt and within 30 days of issue of shares to the foreign investors or NRIs.

11. Solution: a)

12. Solution: d)

13. Solution: b)

14. Solution: a)

15. Solution: c)

16. Solution: c)

17. Solution: b)

http://www.thehindu.com/business/Economy/economic-survey-projects-worth-

rs-88-lakh-crore-stalled/article6941227.ece?ref=sliderNews

http://www.thehindu.com/business/Economy/economic-survey-projects-worth-rs-88-lakh-crore-stalled/article6941227.ece?ref=sliderNews

http://www.thehindu.com/business/Economy/economic-survey-projects-worth-rs-88-lakh-crore-stalled/article6941227.ece?ref=sliderNews



18. Solution: a)

http://www.thehindu.com/business/Economy/rs-377-lakh-crore-subsidy-reaches-

only-very-few/article6941195.ece?ref=sliderNews

19. Solution: d)

In the aftermath of the global financial crisis in 2008, sovereign debt levels started to

mount. The revelation that the fiscal deficit in Greece was much higher than stated

earlier set off serious concerns in early 2010 about the sustainability of the debt. The

downgrade of ratings led to a spiral of rising bond yields and further downgrade of

government debt of other peripheral eurozone economies as well, that had high

public debt or a build-up of bank lending or both.

Concerns intensified in early 2010 as cross-border holdings of sovereign debt and

exposure of banks came to light. The financial markets quickly transmitted the

shocks which not only led to a sharp rise in credit default swap (CDS) spreads but

later impacted capital flows elsewhere.

The underlying weaknesses of the zone have made it difficult to resolve the

crisis

The eurozone lacks a single fiscal authority capable of strict enforcement;

Economies with different levels of competitiveness (and fiscal positions) have

a single currency;

These economies cannot adjust through a depreciation of the currency;

There is no lender of last resort, i.e. a full-fledged central bank (as is RBI in

India and other economies).

20. Solution: a)

The process of globalization has been marked by a rising share of exports (as also

imports) that reached 27.9 per cent for the world as a whole in 2010, with some

countries showing much higher dependence of exports. The Database of the World

Bank show that the so called East Asian Miracle Economies was that an export-led,

http://www.thehindu.com/business/Economy/rs-377-lakh-crore-subsidy-reaches-only-very-few/article6941195.ece?ref=sliderNews

http://www.thehindu.com/business/Economy/rs-377-lakh-crore-subsidy-reaches-only-very-few/article6941195.ece?ref=sliderNews



investment-fuelled strategy propelled growth and helped them acquire

manufacturing capabilities.

This strategy was supported by a favourable exchange rate, cheap credit, and

relatively low wages which helped to gain competitive advantage. Global demand

for goods, particularly in the advanced markets, lent support to this growth strategy.

As a result, these economies moved up the value chain in manufacturing.

21. Solution: b)

India’ energy dependence on imported energy sources, appears modest at 25.7 per

cent in terms of total energy usage. (World Bank Database). However, this masks the

fact that around 80 per cent of the crude oil consumed is imported, whereas the bulk

of coal is domestically produced. Even with respect to coal, the country is importing

on the margin to meet domestic demand. On the other side, there is a large fraction

of population that has little or no access to commercial sources of energy and

depends on traditional sources.

Rise in the price of oil in international markets has been the main source of high

current account deficit. High international prices of fossil fuels also result in a higher

import bill, which either gets passed on to the consumers, or results in higher

subsidy thereby affecting fiscal health. That apart, the growing tensions in many oil-

producing economies are a source of vulnerability for the energy security of India. In

this one area, the strategic advantage for India would lie in diversifying its energy

sources.

22. Solution: d)

Organised Indian Money Market - Present since independence, its real development

took place after the year 1985. Today there are eight instruments or components of

the Indian money market especially designed to fulfill the short-term fund

requirements of the different categories of the individuals, institutions or the firms

and companies:

Treasury Bills

Call Money Market

Certificate of Deposit

Commercial Bills

Commercial Papers

Mutual Funds



Repo and Reverse Repo Markets.

Cash Management Bill

Share market is part of the Capital market, not money market.

23. Solution: d)

At present Indian financial market has a number of regulators, precisely eleven—

RBI, SEBI, FMC, NABARD, IRDA, SIDBI, NHB, SFCs, LDBI, CLB and Registrar of

Cooperative Societies.

The Narasimhan Committee on Financial System (1991) has made a strong case for a

single regulator for banks, financial institutions and the non-banking financial

institutions in India.

Meanwhile, the Justice B N Srikrishna headed Financial Sector Legislative Reforms

Commission (FSLRC) handed over its report end-March 2013 – in which it

recommended that this would be replaced by a horizontal structure whereby the

basic regulatory and monitoring functions of all areas would be done by a Unified

Financial Agency (UFA).

24. Solution: a)

For growth to take place, investments are required in the form of productive assets.

Such investments are long-term in nature. Funds for long-term purposes are raised

either through borrowings from the banks, or the financial institutions, or through

the security market by issuing shares or debentures.

Such funds are supplied by the long-term financial market, i.e. the capital market

and the firms or the productive assets are set up in an economy. But only the setting

up of firms does not guarantee production as these firms keep facing fund

mismatches in the process of continued production.

There is another required segment of financial market which could supply timely

funds to these firms so that they could continue their production process. Such funds

are required usually for a short period (days, fortnights, few months) of time and

thus are considered as their working capital requirements. The segment of financial

market which caters to the short-term requirements of such funds for the enterprises

is known as the money market or the working capital market of the economy.



25. Solution: d)

Repos allow the banks and the financial institutions to borrow money from the RBI

for the short-term (by selling Government Securities to the RBI). In reverse repos, the

banks and financial institutions purchase Government securities from the RBI

(basically here the RBI is borrowing from the banks and the financial institutions).

All the Government securities are dated and the interest for the repo or reverse repo

transactions are announced by the RBI from time to time.

The provision of repos and the reverse repos have been able to serve the liquidity

evenness in the economy as the banks are able to get the required amount of funds

out of it, and they can park surplus dle funds through it. These instruments have

emerged as important tools in the management of the monetary and credit policy in

the recent years.

26. Solution: a)

The call money market is an important segment of the money market where

uncollateralized borrowing and lending of funds take place on overnight basis.

Participants in the call money market in India currently include scheduled

commercial banks (SCBs)- excluding regional rural banks), cooperative banks (other

than land development banks), and primary dealers, both as borrowers and lenders.

Prudential limits, in respect of both outstanding borrowing and lending transactions

in the call money market for each of these entities, are specified by the RBI.

27. Solution: c)

OMOs are conducted by the RBI via the sale/purchase of government securities (G-

Sec) to/from the market with the primary aim of modulating rupee liquidity

conditions in the market. OMOs are an effective quantitative policy tool in the

armoury of the RBI, but are constrained by the stock of government securities

available with it at a point in time.

28. Solution: d)

http://www.goodreturns.in/classroom/2013/07/what-are-open-market-operation-

omos-191708.html

http://www.goodreturns.in/classroom/2013/07/what-are-open-market-operation-omos-191708.html

http://www.goodreturns.in/classroom/2013/07/what-are-open-market-operation-omos-191708.html



OMOs are not related to Bank rate in any way since OMOs essentially depends on

how much securities RBI is issuing/purchasing, and how much the public is

selling/purchasing.

But, if bank rates are very low and there is a lot of money supply in the economy, the

effectiveness of the OMOs will reduce.

Similarly fiscal deficit too is not related to OMOs. But if there is high fiscal deficit,

OMOs can hardly control inflation.

29. Solution: a)

Liquidity Adjustment Facility (LAF) is the primary instrument of Reserve Bank of

India for modulating liquidity and transmitting interest rate signals to the market. It

refers to the difference between the two key rates viz. repo rate and reverse repo

rate. Informally, Liquidity Adjustment Facility is also known as Liquidity Corridor.

Under Repo, the banks borrow money from RBI to meet short term needs by putting

government securities (G-secs) as collateral. Under Reverse Repo, RBI borrows

money from banks by lending securities. While repo injects liquidity into the system,

the Reverse repo absorbs the liquidity from the system. RBI only announces Repo

Rate. The Reverse Repo Rate is linked to Repo Rate and is 100 basis points (1%)

below repo rate. RBI makes decision regarding Repo Rate on the basis of prevalent

market conditions and relevant factors.

30. Solution: b)

http://www.arthapedia.in/index.php?title=Marginal_Standing_Facility

31. Solution: a)

http://en.wikipedia.org/wiki/Exchange-traded_fund\

32. Solution: c)

A non-banking financial company (NBFC) is a company registered under the

Companies Act, 1956 and is engaged in the business of loans and advances,

acquisition of shares/ stock/ bonds/ debentures/ securities issued by government

or local authority or other securities of like marketable nature, leasing, hire-

http://www.arthapedia.in/index.php?title=Marginal_Standing_Facility

http://en.wikipedia.org/wiki/Exchange-traded_fund/



purchase, insurance business, chit business, but does not include any institution

whose principal business is that of agriculture activity, industrial activity,

sale/purchase/construction of immovable property.

A non-banking institution which is a company and which has its principal business

of receiving deposits under any scheme or arrangement or any other manner, or

lending in any manner is also a non-banking financial company (residuary non-

banking company i.e. RNBC).

NBFCs are doing functions akin to that of banks, however there are a few

differences:

An NBFC cannot accept demand deposits (which are payable on demand),

like the savings and current accounts.

It is not a part of the payment and settlement system and as such cannot issue

cheques to its customers

33. Solution: d)

RBI is the Central bank of India and performs these functions and fulfils the

following roles:

It is the issuing agency of the currency and coins other than rupee one

currency and coin (which are issued by the Ministry of Finance itself with the

signature of the Revenue Secretary on the note).

Distributing agent for the currency and coins issued by the Government.

Banker of the Government.

Bank of the banks/Bank of the last resort.

Announces the credit and monetary policy for the economy.

Stabilising the rate of inflation.

Stabilising the exchange rate of rupee.

Keeper of the foreign currency reserves.

Agent of the Government of India in the IMF.

Performing a variety of developmental and promotional functions under

which it did set up institutions like IDBI, SIDBI, NABARD, NHB, etc.

34. Solution: d)

Banks in India are required to hold a certain proportion of their deposits in the

form of cash. However, actually Banks don’t hold these as cash with themselves,



but deposit such case with Reserve Bank of India (RBI) / currency chests, which is

considered as equivalent to holding cash with RBI. This minimum ratio (that is the

part of the total deposits to be held as cash) is stipulated by the RBI and is known as

the CRR or Cash Reserve Ratio.

Thus, When a bank’s deposits increase by Rs100, and if the cash reserve ratio is 6%,

the banks will have to hold additional Rs 6 with RBI and Bank will be able to use

only Rs 94 for investments and lending / credit purpose. Therefore, higher the ratio

(i.e. CRR), the lower is the amount that banks will be able to use for lending and

investment. This power of RBI to reduce the lendable amount by increasing the

CRR, makes it an instrument in the hands of a central bank through which it can

control the amount that banks lend. Thus, it is a tool used by RBI to control liquidity

in the banking system.

35. Solution: a)

The statutory liquidity ratio (SLR) is the ratio (fixed by the RBI) of the total deposits

of a bank which is to be maintained by the bank with itself in non-cash form

prescribed by the Government.

The ratio of liquid assets to demand and time liabilities is known as Statutory

Liquidity Ratio (SLR). RBI is empowered to increase this ratio up to 40%. An

increase in SLR also restrict the bank’s leverage position to pump more money into

the economy.

36. Solution: d)

Bank Rate is the rate at which central bank of the country (in India it is RBI) allows

finance to commercial banks. Bank Rate is a tool, which central bank uses for short-

term purposes. Any upward revision in Bank Rate by central bank is an indication

that banks should also increase deposit rates as well as Base Rate / Benchmark

Prime Lending Rate. Thus any revision in the Bank rate indicates that it is likely that

interest rates on your deposits are likely to either go up or go down, and it can also

indicate an increase or decrease in your EMI.

The clients who borrow through this route are the GoI, State governments, Banks,

Financial Institutions, Co-operative Banks, NBFCs, etc. The rate has direct impact on



the long-term lending activities of the concerned lending bodies operating in the

Indian financial system.

37. Solution: d)

The impact of CRR, SLR and bank rate has already been explained in some of the

explanations in previous questions.

For Reverse Repo rate - It is the rate of interest the RBI pays to its clients who offer

short term loan to it.

It is reverse of the repo rate and this was started in November 1996 as part of

Liquidity Adjustment Facility (LAF) by the RBI. In practice, financial institutions

operating in India park their surplus funds with the RBI for short-term period and

earn money. It has a direct bearing on the interest rates charged by the banks and the

financial institutions on their different forms of loans.

This tool was utilised by the RBI in the wake of over money supply with the Indian

banks and lower loan disbursal to serve twin purposes of cutting down banks losses

and the prevailing interest rate. It has emerged as a very important tool in direction

of following cheap interest regime—the general policy of the RBI since reform

process started.

38. Solution: a)

The President is elected not directly by the people but by members of electoral

college consisting of:

the elected members of both the Houses of Parliament;

the elected members of the legislative assemblies of the states; and

the elected members of the legislative assemblies of the Union Territories of

Delhi and Puducherry

39. Solution: d)

The nominated members of both of Houses of Parliament, the nominated members

of the state legislative assemblies, the members (both elected and nominated) of the



state legislative councils (in case of the bicameral legislature) and the nominated

members of the Legislative Assemblies of Delhi and Puducherry do not participate

in the election of the President. Where an assembly is dissolved, the members cease

to be qualified to vote in presidential election, even if fresh elections to the dissolved

assembly are not held before the presidential election.

While electing and impeaching Vice-President, nominated members participate.

40. Solution: d)

41. Solution: c)

The President is entitled to a number of privileges and immunities. He enjoys

personal immunity from legal liability for his official acts. During his term of office,

he is immune from any criminal proceedings, even in respect of his personal acts. He

cannot be arrested or imprisoned. However, after giving two months’ notice, civil

proceedings can be instituted against him during his term of office in respect of his

personal acts.



42. Solution: d)

The President can be removed from office by a process of impeachment for ‘violation

of the Constitution’. However, the Constitution does not define the meaning of the

phrase ‘violation of the Constitution’.

The impeachment charges can be initiated by either House of Parliament. These

charges should be signed by one-fourth members of the House (that framed the

charges), and a 14 days’ notice should be given to the President. After the

impeachment resolution is passed by a majority of two-thirds of the total

membership of that House, it is sent to the other House, which should investigate

the charges.

The President has the right to appear and to be represented at such investigation. If

the other House also sustains the charges and passes the impeachment resolution by

a majority of two-thirds of the total membership, then the President stands removed

from his office from the date on which the bill is so passed.

Thus, an impeachment is a quasi-judicial procedure in the Parliament. In this

context, two things should be noted: (a) the nominated members of either House of

Parliament can participate in the impeachment of the President though they do not

participate in his election; (b) the elected members of the legislative assemblies of

states and the Union Territories of Delhi and Puducherry do not participate in the

impeachment of the President though they participate in his election.

No President has so far been impeached.

43. Solution: d)

He appoints the prime minister and the other ministers. They hold office during his

pleasure.

He appoints the attorney general of India and determines his remuneration. The

attorney general holds office during the pleasure of the President.

He appoints the comptroller and auditor general of India, the chief election

commissioner and other election commissioners, the chairman and members of the

Union Public Service Commission, the governors of states, the chairman and

members of finance commission, and so on.



He can seek any information relating to the administration of affairs of the Union,

and proposals for legislation from the prime minister.

44. Solution: d)

He enjoys the following legislative powers.

He can summon or prorogue the Parliament and dissolve the Lok Sabha. He

can also summon a joint sitting of both the Houses of Parliament, which is

presided over by the Speaker of the Lok Sabha.

He can address the Parliament at the commencement of the first session after

each general election and the first session of each year.

He can send messages to the Houses of Parliament, whether with respect to a

bill pending in the Parliament or otherwise.

He can appoint any member of the Lok Sabha to preside over its proceedings

when the offices of both the Speaker and the Deputy Speaker fall vacant.

Similarly, he can also appoint any member of the Rajya Sabha to preside over

its proceedings when the offices of both the Chairman and the Deputy

Chairman fall vacant.

45. Solution: b)

The President has the veto power over the bills passed by the Parliament10, that is,

he can withhold his assent to the bills. The object of conferring this power on the

President is two-fold—(a) to prevent hasty and ill-considered legislation by the

Parliament; and (b) to prevent legislation which may be unconstitutional.

The veto power enjoyed by the executive in modern states can be classified into the

following four types:

Absolute veto that is, withholding of assent to the bill passed by the

legislature.

Qualified veto, which can be overridden by the legislature with a higher

majority.

Suspensive veto, which can be over ridden by the legislature with an ordinary

majority.

Pocket veto that is, taking no action on the bill passed by the legislature.



Of the above four, the President of India is vested with three—absolute veto,

suspensive veto and pocket veto. There is no qualified veto in the case of Indian

President; it is possessed by the American President.

46. Solution: a)

Suspensive Veto - The President exercises this veto when he returns a bill for

reconsideration of the Parliament.

However, if the bill is passed again by the Parliament with or without amendments

and again presented to the President, it is obligatory for the President to give his

assent to the bill. This means that the presidential veto is overridden by a re-passage

of the bill by the same ordinary majority (and not a higher majority as required in

USA).

The President does not possess this veto in the case of money bills. The President can

either give his assent to a money bill or withhold his assent to a money bill but

cannot return it for the reconsideration of the Parliament. Normally, the President

gives his assent to money bill as it is introduced in the Parliament with his previous

permission.

47. Solution: d)

48. Solution: d)

49. Solution: d)

50. Solution: a)

51. Solution: c)

The ordinance-making power is the most important legislative power of the

President. It has been vested in him to deal with unforeseen or urgent matters. But,

the exercise of this power is subject to the following limitations:



He can promulgate an ordinance only when both the Houses of Parliament

are not in session or when either of the two Houses of Parliament is not in

session. An ordinance can also be issued when only one House is in session

because a law can be passed by both the Houses and not by one House alone.

An ordinance made when both the Houses are in session is void. Thus, the

power of the President to legislate by ordinance is not a parallel power of

legislation.

He can make an ordinance only when he is satisfied that the circumstances

exist that render it necessary for him to take immediate action. In Cooper case,

(1970), the Supreme Court held that the President’s satisfaction can be

questioned in a court on the ground of malafide. This means that the decision

of the President to issue an ordinance can be questioned in a court on the

ground that the President has prorogued one House or both Houses of

Parliament deliberately with a view to promulgate an ordinance on a

controversial subject, so as to bypass the parliamentary decision and thereby

circumventing the authority of the Parliament.

52. Solution: b)

The Supreme Court examined the pardoning power of the President under different

cases and laid down the following principles:

The petitioner for mercy has no right to an oral hearing by the President.

The President can examine the evidence afresh and take a view different from

the view taken by the court.

The power is to be exercised by the President on the advice of the union

cabinet.

The President is not bound to give reasons for his order.

The President can afford relief not only from a sentence that he regards as

unduly harsh but also from an evident mistake.

There is no need for the Supreme Court to lay down specific guidelines for

the exercise of power by the President.

The exercise of power by the President is not subject to judicial review except

where the presidential decision is arbitrary, irrational, mala fide or

discriminatory.

Where the earlier petition for mercy has been rejected by the President, stay

cannot be obtained by filing another petition.



53. Solution: a)

The President can act on his discretion (that is, without the advice of the ministers)

under the following situations:

Appointment of Prime Minister when no party has a clear majority in the Lok

Sabha or when the Prime Minister in office dies suddenly and there is no

obvious successor.

Dismissal of the council of ministers when it cannot prove the confidence of

the Lok Sabha.

Dissolution of the Lok Sabha if the council of ministers has lost its majority.

54. Solution: d)

To be eligible for election as Vice-President, a person should fulfil the following

qualifications:

He should be a citizen of India.

He should have completed 35 years of age.

He should be qualified for election as a member of the Rajya Sabha.

He should not hold any office of profit under the Union government or any

state government or any local authority or any other public authority.

But, a sitting President or Vice-President of the Union, the governor of any state and

a mini-ster for the Union or any state is not deemed to hold any office of profit and

hence qualified for being a candidate for Vice-President.

55. Solution: c)

The Constitution does not contain any specific procedure for the selection and

appointment of the Prime Minister. Article 75 says only that the Prime Minister shall

be appointed by the president.



However, this does not imply that the president is free to appoint any one as the

Prime Minister. In accordance with the conventions of the parliamentary system of

government, the President has to appoint the leader of the majority party in the Lok

Sabha as the Prime Minister. But, when no party has a clear majority in the Lok

Sabha, then the President may exercise his personal discretion in the selection and

appointment of the Prime Minister.

In 1997, the Supreme Court held that a person who is not a member of either House

of Parliament can be appointed as Prime Minister for six months, within which, he

should become a member of either House of Parliament; otherwise, he ceases to be

the Prime Minister.

Constitutionally, the Prime Minister may be a member of any of the two Houses of

parliament. For example, three Prime Ministers, Indira Gandhi (1966), Deve Gowda

(1996) and Manmohan Singh (2004), were members of the Rajya Sabha. In Britain, on

the other hand, the Prime Minister should definitely be a member of the Lower

House (House of Commons).

45. Solution: d)

The Prime Minister enjoys the following powers as head of the Union council of

ministers:

He recommends persons who can be appointed as ministers by the president.

The President can appoint only those persons as ministers who are

recommended by the Prime Minister.

He allocates and reshuffles various portfolios among the ministers.

He can ask a minister to resign or advise the President to dismiss him in case

of difference of opinion.

He presides over the meeting of council of ministers and influences its

decisions.

He guides, directs, controls, and coordinates the activities of all the ministers.

He can bring about the collapse of the council of ministers by resigning from

office.

Since the Prime Minister stands at the head of the council of ministers, the other

ministers cannot function when the Prime Minister resigns or dies. In other words,

the resignation or death of an incumbent Prime Minister automatically dissolves the



council of ministers and thereby generates a vacuum. The resignation or death of

any other minister, on the other hand, merely creates a vacancy which the Prime

Minister may or may not like to fill.

56. Solution: d)

Article 74 provides for a council of ministers with the Prime Minister at the head to

aid and advise the President in the exercise of his functions. The 42nd and 44th

Constitutional Amendment Acts have made the advice binding on the President.

Further, the nature of advice tendered by ministers to the President cannot be

enquired by any court. This provision emphasises the intimate and the confidential

relationship between the President and the ministers.

In 1971, the Supreme Court held that ‘even after the dissolution of the Lok Sabha, the

council of ministers does not cease to hold office. Article 74 is mandatory and,

therefore, the president cannot exercise the executive power without the aid and

advise of the council of ministers. Any exercise of executive power without the aid

and advice will be unconstitutional as being violative of Article 74’.

Again in 1974, the court held that ‘wherever the Constitution requires the

satisfaction of the President, the satisfaction is not the personal satisfaction of the

President but it is the satisfaction of the council of ministers with whose aid and on

whose advice the President exercises his powers and functions.

57. Solution: a)

The ministers of state can either be given independent charge of

ministries/departments or can be attached to cabinet ministers. In case of

attachment, they may either be given the charge of departments of the ministries

headed by the cabinet ministers or allotted specific items of work related to the

ministries headed by cabinet ministers. In both the cases, they work under the

supervision and guidance as well as under the overall charge and responsibility of

the cabinet ministers. In case of independent charge, they perform the same

functions and exercise the same powers in relation to their ministries/departments

as cabinet ministers do.

However, they are not members of the cabinet and do not attend the cabinet

meetings unless specially invited when something related to their

ministries/departments are considered by the cabinet.



Next in rank are the deputy ministers. They are not given independent charge of

ministries/departments. They are attached to the cabinet ministers or ministers of

state and assist them in their administrative, political, and parliamentary duties.

They are not members of the cabinet and do not attend cabinet meetings.

58. Solution: d)

The word ‘cabinet; was inserted in Article 352 of the Constitution in 1978 by the 44th

Constitutional Amendment Act. Thus, it did not find a place in the original text of

the Constitution.

Now also, Article 352 only defines the cabinet saying that it is ‘the council consisting

of the prime minister and other ministers of cabinet rank appointed under Article 75’

and does not describe its powers and functions. In other words, its role in our

politico-administrative system is based on the conventions of parliamentary

government as developed in Britain.

59. Solution: d)

They are set up by the Prime Minister according to the exigencies of the time

and requirements of the situation. Hence, their number, nomenclature, and

composition varies from time to time.

Their membership varies from three to eight. They usually include only

Cabinet Ministers. However, the non-cabinet Ministers are not debarred from

their membership.

They not only include the Ministers in charge of subjects covered by them but

also include other senior Ministers.

They are mostly headed by the Prime Minister. Sometimes other Cabinet

Ministers, particularly the Home Minister or the Finance Minister, also acts as

their Chairman. But, in case the Prime Minister is a member of a committee,

he invariably presides over it.

60. Solution: a)



Cabinet Committees not only sort out issues and formulate proposals for the

consideration of the Cabinet, but also take decisions. However, the Cabinet can

review their decisions. It means that the PM too can review their decisions.

They are an organisational device to reduce the enormous workload of the Cabinet.

They also facilitate in-depth examination of policy issues and effective coordination.

They are based on the principles of division of labour and effective delegation.

61. Solution: b)

Though the President of India is not a member of either House of Parliament and

does not sit in the Parliament to attend its meetings, he is an integral part of the

Parliament. This is because a bill passed by both the Houses of Parliament cannot

become law without the President’s assent. He also performs certain functions

relating to the proceedings of the Parliament, for example, he summons and

prorogues both the Houses, dissolves the Lok Sabha, addresses both the Houses,

issues ordinances when they are not in session, and so on.

In this respect, the framers of the Indian Constitution relied on the British pattern

rather than the American pattern. In Britain, the Parliament consists of the Crown

(King or Queen), the House of Lords (Upper House) and the House of Commons

(Lower House). By contrast, the American president is not an integral part of the

legislature. In USA, the legislature, which is known as Congress, consists of the

Senate (Upper House) and the House of Representatives (Lower House).

62. Solution: b)

The maximum strength of the Rajya Sabha is fixed at 250, out of which, 238 are to be

the representatives of the states and union territories (4 members elected indirectly)

and 12 are nominated by the president.

Out of the seven union territories, only two (Delhi and Puducherry) have

representation in Rajya Sabha. The populations of other five union territories are too

small to have any representative in the Rajya Sabha.



63. Solution: a)

Though the Constitution has adopted the system of proportional representation in

the case of Rajya Sabha, it has not preferred the same system in the case of Lok

Sabha. Instead, it has adopted the system of territorial representation for the election

of members to the Lok Sabha.

Under territorial representation, every member of the legislature represents a

geographical area known as a constituency. From each constituency, only one

representative is elected. Hence such a constituency is known as single-member

constituency. In this system, a candidate who secures majority of votes is declared

elected. This simple majority system of representation does not represent the whole

electorate. In other words, it does not secure due representation to minorities (small

groups).

64. Solution: d)

The system of proportional representation aims at removing the defects of territorial

representation. Under this system, all sections of the people get representation in

proportion to their number. Even the smallest section of the population gets its due

share of representation in the legislature.

There are two kinds of proportional representation, namely, single transferable vote

system and list system. In India, the first kind is adopted for the election of members

to the Rajya Sabha and state legislative council and for electing the President and the

Vice-President.

Though some members of the Constituent Assembly had advocated the system of

proportional representation for the election of members to the Lok Sabha, the

Constitution has not adopted the system due to two reasons.

Difficulty for the voters to understand the system (which is complicated) due

to low literacy scale in the country.

Unsuitability to the parliamentary government due to the tendency of the

system to multiply political parties leading to instability in government.

65. Solution: a)



On the question whether a member is subject to any of the disqualifications under

RPA 1951, the president’s decision is final. However, he should obtain the opinion of

the election commission and act accordingly.

The question of disqualification under the Tenth Schedule is decided by the

Chairman in the case of Rajya Sabha and Speaker in the case of Lok Sabha (and not

by the president of India). In 1992, the Supreme Court ruled that the decision of the

Chairman/Speaker in this regard is subject to judicial review.

66. Solution: c)

Every member of either House of Parliament, before taking his seat in the House, has

to make and subscribe to an oath or affirmation before the President or some person

appointed by him for this purpose. In his oath or affirmation, a member of

Parliament swears:

to bear true faith and allegiance to the Constitution of India;

to uphold the sovereignty and integrity of India; and

to faithfully discharge the duty upon which he is about to enter.

Option 2 is part of oath taken by a Minister.

Option 3 is that taken by the President of India.

67. Solution: d)

The Speaker is elected by the Lok Sabha from amongst its members (as soon as may

be, after its first sitting). Whenever the office of the Speaker falls vacant, the Lok

Sabha elects another member to fill the vacancy. The date of election of the Speaker

is fixed by the President.

When a resolution for the removal of the Speaker is under consideration of the

House, he cannot preside at the sitting of the House, though he may be present.

However, he can speak and take part in the proceedings of the House at such a time

and vote in the first instance, though not in the case of an equality of votes.

It should be noted here that, whenever the Lok Sabha is dissolved, the Speaker does

not vacate his office and continues till the newly- elected Lok Sabha meets.



The Speaker is the head of the Lok Sabha, and its representative. He is the guardian

of powers and privileges of the members, the House as a whole and its committees.

He is the principal spokesman of the House, and his decision in all Parliamentary

matters is final.

68. Solution: a)

The Speaker is the head of the Lok Sabha, and its representative. He is the guardian

of powers and privileges of the members, the House as a whole and its committees.

He is the principal spokesman of the House, and his decision in all Parliamentary

matters is final. He is thus much more than merely the presiding officer of the Lok

Sabha. In these capacities, he is vested with vast, varied and vital responsibilities and

enjoys great honour, high dignity and supreme authority within the House.

The Speaker of the Lok Sabha derives his powers and duties from three sources, that

is, the Constitution of India, the Rules of Procedure and Conduct of Business of Lok

Sabha, and Parliamentary Conventions (residuary powers that are unwritten or

unspecified in the Rules).

69. Solution: a)

The LS Speaker presides over a joint setting of the two Houses of Parliament. Such a

sitting is summoned by the President to settle a deadlock between the two Houses

on a bill.

He can allow a ‘secret’ sitting of the House at the request of the Leader of the House.

When the House sits in secret, no stranger can be present in the chamber, lobby or

galleries except with the permission of the Speaker.

He decides whether a bill is a money bill or not and his decision on this question is

final. When a money bill is transmitted to the Rajya Sabha for recommendation and

presented to the President for assent, the Speaker endorses on the bill his certificate

that it is a money bill.

He decides the questions of disqualification of a member of the Lok Sabha, arising

on the ground of defection under the provisions of the Tenth Schedule. In 1992, the



Supreme Court ruled that the decision of the Speaker in this regard is subject to

judicial review.

70. Solution: c)

The LS Speaker is provided with a security of tenure. He can be removed only by a

resolution passed by the Lok Sabha by an absolute majority (i.e, a majority of the

total members of the House) and not by an ordinary majority (i.e, a majority of the

members present and voting in the House).

This motion of removal can be considered and discussed only when it has the

support of at least 50 members.

71. Solution: d)

The bill amends the Mines and Minerals (Development and Regulation) Act, 1957 in

order to regulate the mining sector in the country.

Key provisions of the bill

Addition of a new 4th Schedule in to parent Act in order to include bauxite,

iron ore, limestone and manganese ore as notified minerals.

Creation of prospecting license-cum-mining lease as a new category of mining

license. It is defined as a two stage-concession for the purpose of undertaking

prospecting operations followed by mining operations.

Maximum area for mining- increase the area limits for mining, instead of

providing additional leases as per parent Act’s area limitation.

Lease period- Mining leases will be granted for a lease period of 50 years for

all minerals other than coal, lignite and atomic minerals. Lease period for coal

and lignite remains unchanged.

72. Solution: a)

Objective is to bring out a totally error-free and authenticated electoral roll

throughout the country.

For the authentication purpose, Electoral Photo Identity Card (EPIC) data of

electors will be linked with Aadhar data.



It also focuses to improve the image quality of electors along with sorting

issues like corrections of errors. Facility to link Aadhar number will be

provided to electors through sms, email, mobile application and National

Voters Service Portal using web services through ECI website.

Electors also can link their Aadhar number by making a call at 1950 to state

call centres. Under NERPAP, collection and feeding of Aadhar will also be

done by Electoral Registration Officer.

In this regard special Camps will be organized, Voter Facilitation Centres, e-

Seva centres and Citizen Service Centres. While Booth Level Officers will

conduct door-to-door surveys to collect the details.

73. Solution: a)

Eutelsat’s satellite is part of its 35-member commercial network. It will provide

services like mobile, internet, video and other communications services to expand its

reach into the Americas. While, ABS new satellite will serve its customers in Africa,

Europe and the Middle East.

These satellites are fitted with lightweight, all-electric engines rather than

conventional chemical propulsion systems. These electric engines allow satellites to

produce electric propulsion in order to reach and remain fixed in particular orbit.

Electric propulsion from these satellites consumes less fuel compared with satellite

having chemical propulsion. Thus making satellites lighter in weight and further

reducing cost of launch.

74. Solution: a)

Following has happened in the area of taxation in the recent Budget:

No change in the Tax slab on personal income.

Wealth tax abolished.

Additional 2% surcharge for the super-rich with income more than Rs. 1

crore.

For next 4 years, corporate tax has been reduced to 25 percent from present 30

percent. Service tax increased to14 per cent.

Apart from CSR, 100% tax exemption for contribution to Swachch Bharat

Abhiyan.



75. Solution: a)

http://www.thehindu.com/business/budget/mudra-bankto-fund-the-missing-

middle/article6946797.ece

76. Solution: d)

Some of the Initiatives launched are:

Under the Swachh Bharat Abhiyan, six crore toilets across the country will be

built.

By 2020, housing for all.

Visa on Arrival (VoA) facility to be increased for 150 countries from present

43 countries.

As an alternative to purchasing gold, Sovereign Gold Bond will be launched.

In order to facilitate depositors of gold to earn interest and jewellers to obtain

loans on their metal accounts new scheme will be launched.

Forward Markets Commission (FMC) will be merged with the Securities and

Exchange Board of India (SEBI).

77. Solution: a)

http://www.washingtonpost.com/blogs/monkey-cage/wp/2014/07/17/what-the-

new-bank-of-brics-is-all-about/

78. Solution: a)

http://www.finance.mp.gov.in/14fc_press_note_eng.pdf

http://www.thehindu.com/business/budget/mudra-bankto-fund-the-missing-middle/article6946797.ece

http://www.thehindu.com/business/budget/mudra-bankto-fund-the-missing-middle/article6946797.ece

http://www.washingtonpost.com/blogs/monkey-cage/wp/2014/07/17/what-the-new-bank-of-brics-is-all-about/

http://www.washingtonpost.com/blogs/monkey-cage/wp/2014/07/17/what-the-new-bank-of-brics-is-all-about/

http://www.finance.mp.gov.in/14fc_press_note_eng.pdf



Refer to first two pages only.

79. Solution: a)

In the Air Brake system, compressed air is used for operating the brake system.

These brakes can be the conventional types or directly mounted on the bogies of the

coaches. The latest design is the Disc Brake System (DBS) found in LHB coaches and

is similar to what is found in automobiles.

DBS is micro processor controlled and an advanced version of Air Brake system. It is

essential for high speeds of 160kmph plus. It is superior in terms of reduced braking

distance, higher wheel life due to reduced frequency of wheel turning, and reduced

maintenance, less braking noise and higher efficiency due to simple brake rigging.

PIB FEATURES http://pib.nic.in/newsite/efeatures.aspx

80. Solution: b)

http://www.downtoearth.org.in/content/indias-climate-dilemma

81. Solution: b)

82. Solution: b)

83. Solution: d)

84. Solution: d)

http://pib.nic.in/newsite/efeatures.aspx

http://www.downtoearth.org.in/content/indias-climate-dilemma



85. Solution: d)

86. Solution: d)

http://www.downtoearth.org.in/content/budget-2015-suresh-prabhu-promises-

green-clean-indian-railways

87. Solution: a)

http://www.downtoearth.org.in/content/agriculture-wrong-prescription-right-

diagnosis

In the budget, Jaitley increased the farm credit corpus from Rs 8 lakh crore to Rs 8.5

lakh crore and announced the setting up of a Unified National Agriculture Market to

provide farmers better price for their produce.

But, around 94 per cent of the existing farm credit corpus goes directly to agro-based

industries and not to the farmers. So when the finance minister said Rs 8.5 lakh crore

will be given as farm credit, he actually meant that the farmers would get only Rs

50,000 crore or six per cent of the corpus.

88. Solution: a)

http://www.downtoearth.org.in/content/findings-economic-survey-2015-are-

cause-worry

89. Solution: c)

http://www.downtoearth.org.in/content/earth-s-natural-cooling-process-offset-

global-warming-past-decade-0\

http://www.downtoearth.org.in/content/budget-2015-suresh-prabhu-promises-green-clean-indian-railways

http://www.downtoearth.org.in/content/budget-2015-suresh-prabhu-promises-green-clean-indian-railways

http://www.downtoearth.org.in/content/agriculture-wrong-prescription-right-diagnosis

http://www.downtoearth.org.in/content/agriculture-wrong-prescription-right-diagnosis

http://www.downtoearth.org.in/content/findings-economic-survey-2015-are-cause-worry

http://www.downtoearth.org.in/content/findings-economic-survey-2015-are-cause-worry

http://www.downtoearth.org.in/content/earth-s-natural-cooling-process-offset-global-warming-past-decade-0/

http://www.downtoearth.org.in/content/earth-s-natural-cooling-process-offset-global-warming-past-decade-0/



90. Solution: a)

http://www.downtoearth.org.in/content/these-mobile-weather-stations-can-help-

cope-floods-landslides

91. Solution: b)

Pursuant to the resolution adopted on 29-05-2007 by the National Development

Council (NDC), to reorient the current agricultural development strategies to meet

the needs of the farmers and for fresh efforts by the Central and State Governments

to rejuvenate the agricultural sector so as to achieve 4% annual growth during the

11th Five Year Plan, a new State Plan Scheme of Additional Central Assistance (ACA)

for agriculture and allied sectors, namely, Rashtriya Krishi Vikas Yojana (RKVY) was

launched during 2007-08 with an envisaged outlay of Rs. 25,000 crore for the Plan

period.

It requires the States to prepare District and State Agriculture Plans for creation of

such infrastructure, which are essential to catalyse the existing production scenario

for achieving higher production. Additional Central Assistance (ACA) is made

available to the States as 100% grants.

The RKVY Guidelines recognize and build on the need for convergence and

integration of the various programmes implemented at District/State level into

District Agriculture Plans (DAPs) and State Agriculture Plan (SAP). Each district is

required to formulate a District Agriculture Plan by including the resources available

from other existing schemes, District, State or Central Schemes such as Backward

Region Grant Fund (BRGF), Swarnajayanti Gram Swarozgar Yojana (SGSY),

National Rural Employment Guarantee Scheme (NREGS), Bharat Nirman and tied

and untied grants from the Central and State Finance Commissions etc. The District

Agriculture Plans are not to be the usual aggregation of the existing schemes but

would aim at moving towards projecting the requirements for development of

agriculture and allied sectors of the district. These plans present the vision for

agriculture and allied sectors within the overall development perspective of the

district. The District Agriculture Plans would reflect the financial requirement and

the sources of financing the agriculture development plans in a comprehensive way.

The DAP will include animal husbandry and fishery, minor irrigation projects, rural

development works, agricultural marketing schemes and schemes for water

harvesting and conservation, keeping in view the natural resources and

http://www.downtoearth.org.in/content/these-mobile-weather-stations-can-help-cope-floods-landslides

http://www.downtoearth.org.in/content/these-mobile-weather-stations-can-help-cope-floods-landslides



technological possibilities in each district. Each State is further required to prepare a

comprehensive State Agricultural Plan (SAP) by integrating the DAPs. The State will

have to indicate resources that can flow from the State to the district.

During XII Plan, RKVY funding will be provided through three streams viz.

production growth (35%), infrastructure & Assets and sub-schemes (20%). The

remaining 10% will be is provisioned as flexi fund from which states can undertake

either production growth or infrastructure & assets projects depending upon States

needs & priorities. Looking at the requirement of increasing investment,

Government has recently done way with 35% requirement in production stream

thus paving the way for 100% allocation in investments for infrastructure buildings

& creation of assets.

The States have been provided flexibility and autonomy in the process of selection,

planning, approval and execution of schemes to make investments in interventions

as per their priorities and agro-climatic requirements so that the outcomes are as

envisaged in the RKVY objectives. The projects of the State Governments are

approved by the State Level Sanctioning Committees (SLSCs) under the

Chairmanship of Chief Secretary of the respective States. The funds are routed

through the State Agriculture Department, which is the nodal Department for the

scheme.

http://rkvy.nic.in/SubSchemes-Iframe.html

Refer Page No. 88-90 of India – 2015 for more details.

92. Solution: a)

The Mission has been continued during 12th Five Year Plan with inclusion of coarse

cereals crops and commercial crops (sugarcane, jute, cotton). The Mission has target

of additional production of 25 million tonnes of foodgrains comprising 10 million

tonnes of rice, 8 million tonnes of wheat, 4 million tonnes of pulses and 3 million

tonnes of coarse cereals by the end of 12th Five Year Plan.

93. Solutions: c)

National Mission for Sustainable Agriculture (NMSA) seeks to transform Indian

agriculture into a climate resilient production system through suitable adaptation

and mitigation measures in domains of both crops and animal husbandry. NMSA as

http://rkvy.nic.in/SubSchemes-Iframe.html



a programmatic intervention focuses on promotion of location specific

integrated/composite farming systems; resource conservation technologies;

comprehensive soil health management; efficient on-farm water management and

mainstreaming rainfed technologies.

NMSA identifies 10 key dimensions namely seed & culture water, pest, nutrient,

farming practices, credit, insurance, market, information and livelihood

diversification for promoting suitable agricultural practices that covers both

adaption and mitigation measures through four functional areas, namely, Research

and Development, Technologies, Products and Practices, Infrastructure and Capacity

building. During XII Five Year Plan, these dimensions have been embedded and

mainstreamed into Missions/Programmes/Schemes of Ministry of Agriculture

including NMSA through a process of restructuring of various schemes/missions

implemented during XI Five Year Plan and convergence with other related

programmes of Central/State Governments.

94. Solution: b)

Agriculture cooperatives distribute around 16% of agricultural credit in India. For

more info refer Page No. – 95, India – 2015

95. Solution: b)

The tractor density in India is 16 tractors per 1000 hectares whereas world average is

19.

Please refer page no. 98, India – 2015

Some interesting articles on farm mechanization in India:

http://www.thehindubusinessline.com/opinion/farm-mechanisation-indian-

style/article4921271.ece

http://www.thehindu.com/business/Industry/talking-business-india-is-still-in-

early-stages-of-farm-mechanisation/article6345284.ece

96. Solution: b)

The National School of Drama is one of the foremost theatre training institutions in

the world and the only one of its kind in India. It was set up by the Sangeet Natak

http://www.thehindubusinessline.com/opinion/farm-mechanisation-indian-style/article4921271.ece

http://www.thehindubusinessline.com/opinion/farm-mechanisation-indian-style/article4921271.ece

http://www.thehindu.com/business/Industry/talking-business-india-is-still-in-early-stages-of-farm-mechanisation/article6345284.ece

http://www.thehindu.com/business/Industry/talking-business-india-is-still-in-early-stages-of-farm-mechanisation/article6345284.ece



Akademi as one of its constituent units in 1959. In 1975, it became an independent

entity and was registered as an autonomous organization under the Societies

Registration Act XXI of 1860, fully financed by the Ministry of Culture, Government

of India.

http://nsd.gov.in/delhi/index.php/about-nsd/

97. Solution: c)

Sahitya Akademi in 1996, instituted a Fellowship in the name of the great scholar

and aesthete Dr. Ananda Coomaraswamy to be offered to scholars from Asian

countries to pursue literary projects of their choice.

http://sahitya-akademi.gov.in/sahitya-

akademi/fellows/sahitya_akademi_fellowship.jsp#anand

http://en.wikipedia.org/wiki/Ananda_Coomaraswamy

98. Solution: d)

Other four cities where they are located are: Udaipur, Allahabad, Nagpur and

Kolkata

99. Solution:

In order to promote tourism, Tourist Visa on Arrival (TVOA) scheme was

introduced for the nationals of five countries, namely, Japan, Singapore, Finland,

Luxembourg and New Zealand with effect from 01.01.2010 for one year. The scheme

has been found to be useful by the foreign nationals.

Visa on Arrival Facility is available for holders of passport of following countries

Australia, Brazil, Cambodia, Cook Islands, Djibouti, Fiji, Finland, Germany, Guyana,

Indonesia, Israel, Japan, Jordan, Kenya, Kiribati, Laos, Luxembourg, Marshall

Islands, Mauritius, Mexico, Micronesia, Myanmar, Nauru,

New Zealand,Niue Island, Norway, Oman, Palau, Palestine, Papua New Guinea,

Philippines, Republic of Korea,

Russia, Samoa, Singapore, Solomon Islands,Thailand, Tonga, Tuvalu, UAE, Ukraine,

USA, Vanuatu, Vietnam.

Visa on Arrival is not applicable to Diplomatic/Official Passports.

http://nsd.gov.in/delhi/index.php/about-nsd/

http://sahitya-akademi.gov.in/sahitya-akademi/fellows/sahitya_akademi_fellowship.jsp#anand

http://sahitya-akademi.gov.in/sahitya-akademi/fellows/sahitya_akademi_fellowship.jsp#anand

http://en.wikipedia.org/wiki/Ananda_Coomaraswamy



100. Solution: d)

Background of the National Statistical Commission (NSC)

A Commission set up by the Government in January 2000 under the Chairmanship

of Dr. C. Rangarajan reviewed the statistical system and the entire gamut of Official

Statistics in the country. The Rangarajan Commission submitted its report to the

Government in August 2001. One of the key recommendations of this Commission

was to establish a permanent National Commission on Statistics to serve as a nodal

and empowered body for all core statistical activities of the country, evolve, monitor

and enforce statistical priorities and standards and to ensure statistical co-ordination

among the different agencies involved. The Rangarajan Commission also

recommended that the Commission be set up initially through a Government order.

Rangarajan Commission Report

In line with the recommendations of the Rangarajan Commission, the Government

of India ordered the setting up of a permanent National Statistical Commission

(NSC) vide Notification No. 85 dated 1st June 2005published in the Gazette of India,

Extraordinary, Part-III-Section 4.

The NSC is mandated to perform the following functions, namely: -

a. to identify the core statistics, which are of national importance and are critical

to the development of the economy;

b. to constitute professional committees or working groups to assist the

Commission on various technical issues;

c. to evolve national policies and priorities relating to the statistical system;

d. to evolve standard statistical concepts, definitions, classifications and

methodologies in different areas in statistics and lay down national quality

standards on core statistics;

e. to evolve national strategies for the collection, tabulation and dissemination of

core statistics, including the release calendar for various data sets;



f. to evolve national strategies for human resource development on official

statistics including information technology and communication needs of the

statistical system;

g. to evolve measures for improving public trust in official statistics;

h. to evolve measures for effective co-ordination with State Governments and

Union Territory Administrations on statistical activities including

strengthening of existing institutional mechanisms;

i. to exercise statistical co-ordination between Ministries, Departments and

other agencies of the Central Government;

j. to exercise statistical audit over the statistical activities to ensure quality and

integrity of the statistical products;

k. to recommend to the Central Government, or any State Government, as the

case may be, measures to effectively implement the standards, strategies and

other measures evolved under clauses (c) to (h);

l. to advise the Government on the requirement of legislative measures on

statistical matters including the statute for the National Statistical

Commission; and

m. to monitor and review the functioning of the statistical system in the light of

the laid down policies, standards and methodologies and recommend

measures for enhanced performance.

Powers of the NSC

The Commission has the requisite autonomy to discharge its functions effectively

and efficiently. In particular, the Commission has the powers to: -



require production of any document which in the opinion of the

Commission will serve or may serve statistical purposes;

require statistical agencies and institutions to provide details of

statistical activities, including concepts and definitions used,

methodologies followed, quality standards adopted, sampling and

non-sampling errors, etc. in respect of core statistics;

require attendance of any person including any public servant on

matters connected with core statistics; and

issuing notices for examination of witnesses and documents or any

matters connected with core statistics.

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