INSTA 75 DAYS REVISION PLAN

FOR UPSC CSE PRELIMS 2023

INSTA TEST: DAY - 2

Subject: Economy

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1. Consider the following statements regarding 4. Consider the following statements regarding
Cash Reserve Ratio (CRR) base effect.
1. Cash Reserve Ratio (CRR) is the percentage of
deposits which a bank must keep as cash re-
serves with the banks themselves.
2. This is a legal requirement and is binding on
the banks.
3. Banks don’t earn returns on money parked as
CRR.
4. The Central Bank controls the liquidity in the
Banking system through CRR.
Which of the statements given above is/are cor-
rect?
(a) Only one statement is correct
(b) Only two statement is correct
(c) Only three statements are correct
(d) All statements are correct
2. Consider the following statements regarding
Open Market Operations
1. OMOs are the market operations conducted by
the RBI by way of sale/ purchase of G-Secs.
2. Selling of a bond by RBI leads to addition in
quantity of reserves and hence the money
supply.
3. Under Outright open market operations, when
the central bank buys these securities, it is
with a promise to sell them later.
Which of the statements given above are cor-
rect? 6. Consider the following statements regarding
(a) 1 only inflation
(b) 1 and 2 only
(c) 3 only
(d) 2 and 3 only
3. Consider the following statements regarding
Money supply
1. The currency issued by the central bank is
called high power money.
2. M4 is most liquid and easiest for transactions
whereas M1 is least liquid of all.
3. M3 is the most commonly used measure of
money supply.
Which of the statements given above is/are cor-
rect?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
2 www.insightsonindia.com
1. If the inflation rate was too low in the corre-
sponding period of the previous year, a rela-
tively higher rise in the Price Index will arith-
metically give a high rate of current inflation.
2. The base effect can lead to distortion in com-
parisons and deceptive results.
Which of the statements given above is/are cor-
rect?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
5. Which of the following activities can lead to
Inflation?
1. Printing and giving away more money to citi-
zens
2. Legally devaluing the legal tender currency.
3. Loaning new money into the market by pur-
chasing government bonds from banks on the
secondary market.
Which of the statements given above is/are cor-
rect?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
1. Individuals with tangible assets may not like
inflation because it erodes the value of their
assets.
2. People who hold assets valued in their home
currency, such as cash or bonds, like inflation,
as it appreciates the real value of their hold-
ings.
3. Inflation redistributes wealth from creditors
to debtors, i.e., lenders suffer and borrowers
benefit out of inflation.
Which of the statements given above are cor-
rect?
(a) 1 only
(b) 1 and 2 only
(c) 3 only
(d) 2 and 3 only
7. Consider the following statements regarding (c) 1 and 3 only
Inflation-indexed bond (d) 1, 2 and 3
1. It is a type of bond that is designed to protect
investors from the effects of inflation. 10. Which of the following entities are regulated
2. The real return on the bond is equal to the cou- by RBI?
pon rate minus the rate of inflation. 1. Housing Finance Companies
Which of the statements given above is/are cor- 2. Merchant Banking Companies
rect? 3. Nidhi Companies
(a) 1 only 4. Insurance companies
(b) 2 only 5. Chit Fund Companies
(c) Both 1 and 2 Select the correct answer using the code given
(d) Neither 1 nor 2 below:
(a) 1 and 2 only
8. Consider the following statements regarding (b) 1, 2 and 4 only
regulation of financial activity by RBI (c) 2, 3 and 5 only
1. Financial activity as principal business is when (d) None of the Above
a company’s financial assets constitute more
than 75 per cent of the total assets and in- 11. Consider the following statements regarding
come from financial assets constitute more Infrastructure Finance Companies (IFCs)
than 75 per cent of the gross income. 1. IFC is a deposit accepting loan company.
2. The term ‘principal business’ is defined under 2. IFC should have a minimum net-worth of Rs
the Reserve Bank of India Act. 3000 crore.
3. The Reserve Bank has defined principal busi- 3. The minimum credit rating of the company
ness, so as to ensure that only companies should be at ‘A’ or equivalent of CRISIL, FITCH
predominantly engaged in financial activity or equivalent rating.
get registered with it and are regulated and Which of the statements given above are cor-
supervised by it. rect?
Which of the statements given above is/are cor- (a) 1 only
rect? (b) 1 and 2 only
(a) None of the statement are correct (c) 3 only
(b) Only one statement is correct (d) 2 and 3 only
(c) Only two statements are correct
(d) All three statements are correct
12. Consider the following statements regarding
Consumer Price Index (CPI)
9. Consider the following statements regarding 1. Consumer Price Index (CPI) is released by Na-
Non-Banking Financial Company (NBFC) tional Statistical Office (NSO).
1. Non-Banking Financial Company (NBFC) is a 2. In 2015, revised CPI, the number of Groups,
company registered under the Companies which was six in the old series, has been de-
Act, 1956. creased to five.
2. A non-banking institution which is a company 3. The Monetary Policy Committee (MPC) uses
and has principal business of receiving de- CPI data for inflation targeting.
posits under any scheme or arrangement in Which of the statements given above is/are cor-
one lump sum or in instalments by way of rect?
contributions or in any other manner, is also (a) 1 only
a non-banking financial company. (b) 2 and 3 only
3. NBFC cannot accept demand deposits. (c) 1 and 3 only
Which of the statements given above is/are cor- (d) 1, 2 and 3
rect?
(a) 1 only
(b) 2 and 3 only

www.insightsonindia.com 3
13. Consider the following statements regarding (d) 2 and 3 only
Securities Transaction Tax (STT)
1. STT is a direct tax levied on every purchase and 16. Consider the following statements regarding
sale of securities that are listed on the recog- Geneva Water Dialogue
nized stock exchanges in India. 1. It has been organised by United Nations
2. The term ‘securities’ is defined under Securi- 2. Is an interactive conversation that seeks to
ties Transaction Tax Act. bring together Geneva-based stakeholders in
3. Securities transaction tax was introduced in response to the UNGA’s call to involve all rel-
the Budget of the year 2014 evant stakeholders to assess challenges and
Which of the statements given above is/are cor- opportunities.
rect? 3. It aims to eliminate water stress by 2030
(a) 1 only Which of the statements given above is/are cor-
(b) 2 and 3 only rect?
(c) 1 and 3 only (a) 1 and 2 only
(d) 1, 2 and 3 (b) 2 only
(c) 3 only
(d) 1 and 3 only
14. Which of the following taxes have been sub-
sumed under the GST?
1. Excise duties on Medicinal and Toilet Prepara- 17. Global Methane Pledge Energy Pathway,
tions sometime seen in the news, is the initiative by
2. Luxury Tax a. Conference of Parties, 26 (COP26)
3. Taxes on lotteries, betting and gambling b. United States of America
4. Additional Duties of Excise on Goods of Special c. European Union
Importance d. International Energy Agency
5. Entertainment Tax and Amusement Tax includ-
ing those levied by the local bodies
Select the correct answer using the code given 18. Consider the following statements regarding
below: Polymetallic nodules
(a) 1, 2 and 5 only 1. They are largely found in Continental Shelf.
(b) 2, 3 and 4 only 2. The growth of these nodules is extremely
(c) 2, 3 and 5 only slow.
(d) 1, 2, 3 and 4 only 3. The nodules of greatest commercial interest
occur in the Clarion-Clipperton Zone in the
equatorial Pacific Ocean (CCZ)
15. Consider the following statements regarding Which of the statements given above is/are cor-
trends in tax receipts rect?
1. According to budget (2023-24) estimates, In- (a) 1 only
come tax forms the largest component of the (b) 2 and 3 only
total tax revenue. (c) 3 only
2. In the last decade, the share of tax receipts has (d) 1, 2 and 3
been broadly in the range of 10 to 11.5 per-
centage of GDP.
3. In the last decade, the share of direct tax in 19. Tonga Volcanic Eruption, sometime seen in
the total tax receipts has been higher than the the news, is occurred in
share of indirect tax. a. Atlantic Ocean
Which of the statements given above are cor- b. Indian Ocean
rect? c. Pacific Ocean
(a) 1 only d. Southern Ocean
(b) 1 and 2 only
(c) 3 only

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20. Oromia Region, sometime seen in the news, ported by Article 145 of the Indian Constitu-
is located in tion
a. Egypt 2. A curative petition may be filed after a review
b. Sudan plea against the final conviction is dismissed.
c. South Sudan Which of the statements given above is/are cor-
d. None of the above rect?
a. 1 only
21. Consider the following pairs b. 2 only
Place Located in c. Both 1 and 2
Paktika Afghanistan d. Neither 1 nor 2
Aegean Islands Indian Ocean
Strait of Hormuz Persian Gulf 25. Consider the following statements regarding
How many pairs given above is/are matched cor- Bureau of Energy Efficiency (BEE)
rectly? 1. It is an agency of Ministry of New and Renew-
a. Only one pair able Energy.
b. Only two pairs 2. The mission of BEE is to institutionalize ener-
c. Only three pairs gy efficiency services, enable delivery mecha-
d. None of the pairs nisms in the country.
3. It demonstrates EE delivery systems through
public-private partnerships.
22. Consider the following statements regarding Which of the statements given above is/are cor-
Central Information Commission rect?
1. It is a constitutional body a. 2 only
2. Members of the commission are appointed b. 1 and 3 only
by Prime Minister c. 3 only
3. It has the powers of the civil court. d. 2 and 3 only
Which of the statements given above are cor-
rect?
(a) 1 only
(b) 1 and 2 only
(c) 3 only
(d) 2 and 3 only

23. Consider the following statements regarding

Marine Products Export Development Authority
(MPEDA)
1. It works under Ministry of Commerce and In-
dustry.
2. It is also empowered to carry out inspection
of marine products, its raw material, fixing
standards, specifications.
Which of the statements given above is/are cor-
rect?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

24. Consider the following statements regarding

Curative Petition
1. The concept of the curative petition is sup-

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Passage 1: 4) 3 men and 5 women together can finish a job
Most computer scientists think that consciousness is a in 3 days. Working on the same job 3 women
characteristic that will emerge as technology develops. take 5 days more than the time required by 2
Some believe that consciousness involves accepting men. What is the ratio of efficiency of man to a
new information, storing and retrieving old informa- woman?
tion and cognitive processing of it all into perceptions a) 2:1
and actions. If that’s right, then one day machines will b) 3:2
indeed be the ultimate consciousness. They’ll be able c) 5:2
to gather more information than a human, store more d) 4:1
than many libraries, access vast databases in millisec-
onds and compute all of it into decisions more com-
plex, and yet more logical, than any person ever could. 5). There are two inlet pipes A and B which can
On the other hand, there are physicists and philoso- fill a tank in 20 hours and 30 hours respective-
phers who say there’s something more about human ly. There are two outlet pipes C and D which can
behavior that cannot be computed by a machine. Cre- empty the same tank in 40 hours and 60 hours
ativity, for example, and the sense of freedom people respectively. How many hours will it take to fill
possess don’t appear to come from logic or calcula- half of the tank when the inlets and outlets are
tions. opened simultaneously?
a) 12
1). Which among the following is the most logical b) 24
and rational inference that can be made from the c) 25
passage? d) 36
a) In the coming years, artificial intelligence will make
“conscious” machines
b) Only humans can have consciousness
c) Scientists and philosophers are still exploring and un-
derstanding what consciousness actually is
d) Consciousness is an abstract concept

2) Three taps A, B and C can fill a tank in 12,

15 and 20 hours respectively. If A is opened
all the time and B and C are opened one hour
each alternatively , the tank will be full in :

(a) 4
(b) 4.5
(c) 5
(d) 7

3) A can finish a work in 24 days, B in 9 days and

C in 12 days. B and C start the work but are forced
to leave after 3 days. The remaining work was
done by A in?
(a) 6 days
(b) 5 days
(c) 10 days
(d) 10.5 days

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8 www.insightsonindia.com
1. Solution: C price of resale of this security. This type of agreement
is called a repurchase agreement or repo.
Cash Reserve Ratio (CRR)
The RBI decides a certain percentage of deposits which
every bank must keep as reserves. This is done to en- 3. Solution: C
sure that no bank is ‘over lending’. This is a legal re-
quirement and is binding on the banks. This is called Legal Definitions: Narrow and Broad Money
the ‘Required Reserve Ratio’ or the ‘Reserve Ratio’ or
‘Cash Reserve Ratio’ (CRR). Money supply, like money demand, is a stock variable.
Cash Reserve Ratio (CRR) = Percentage of deposits The total stock of money in circulation among the pub-
which a bank must keep as cash reserves. lic at a particular point of time is called money supply.
In CRR, the cash reserve is maintained by the banks RBI publishes figures for four alternative measures of
with the Reserve Bank of India. Hence, statement 1 money supply, viz. M1, M2, M3 and M4. They are de-
is incorrect. fined as follows
In the case of SLR, the securities are kept with the M1 = CU + DD
banks themselves, which they need to maintain in the M2 = M1 + Savings deposits with Post Office savings
form of liquid assets. banks
Banks don’t earn returns on money parked as CRR. M3 = M1 + Net time deposits of commercial banks
The Central Bank controls the liquidity in the Banking M4 = M3 + Total deposits with Post Office savings or-
system through CRR. ganizations (excluding National Savings Certificates)
where, CU is currency (notes plus coins) held by the
public and DD is net demand deposits held by commer-
2. Solution: A cial banks. The word ‘net’ implies that only deposits of
the public held by the banks are to be included in mon-
What are Open Market Operations (OMOs)? ey supply. The interbank deposits, which a commercial
OMOs are the market operations conducted by the RBI bank holds in other commercial banks, are not to be
by way of sale/ purchase of G-Secs to/ from the market regarded as part of money supply.
with an objective to adjust the rupee liquidity condi-
tions in the market on a durable basis. M1 and M2 are known as narrow money.
Open Market Operations refers to buying and selling M3 and M4 are known as broad money. These meas-
of bonds issued by the Government in the open mar- ures are in decreasing order of liquidity.
ket. This purchase and sale are entrusted to the Cen- M1 is most liquid and easiest for transactions where-
tral bank on behalf of the Government. When RBI buys as M4 is least liquid of all. Hence, statement 2 is in-
a government bond in the open market, it pays for it correct.
by giving a cheque. This cheque increases the total M3 is the most commonly used measure of money
amount of reserves in the economy and thus increas- supply. It is also known as aggregate monetary re-
es the money supply. Selling of a bond by RBI (to pri- sources.
vate individuals or institutions) leads to reduction in
quantity of reserves and hence the money supply. High Power Money
Hence, statement 2 is incorrect. The central banks of all the countries are empowered
to issue the currency. The currency issued by the cen-
There are two types of open market operations: out- tral bank is called ‘high power money’ because it is
right and repo. generally backed by supporting reserves and its value
Outright open market operations are permanent in is guaranteed by the government and it is the source of
nature: when the central bank buys these securities all other forms of money.
(thus injecting money into the system), it is without
any promise to sell them later. Hence, statement 3 is
incorrect.
However, there is another type of operation in which
when the central bank buys the security, this agree-
ment of purchase also has specification about date and

www.insightsonindia.com 9
4. Solution: B their assets, which they can sell at a higher rate. Hence,
statement 1 is incorrect.
Base effect refers to the impact of the rise in price level
(i.e., last year’s inflation) in the previous year over the Cons
corresponding rise in price levels in the current year Buyers of such assets may not be happy with infla-
(i.e., current inflation). If the price index had risen at a tion, as they will be required to shell out more money.
high rate in the corresponding period of the previous People who hold assets valued in their home cur-
year, leading to a high inflation rate, some of the po- rency, such as cash or bonds, may not like inflation,
tential rise is already factored in, therefore, a similar as it erodes the real value of their holdings. Hence,
absolute increase in the Price index in the current year statement 2 is incorrect. As such, investors looking to
will lead to a relatively lower inflation rate. On the oth- protect their portfolios from inflation should consider
er hand, if the inflation rate was too low in the corre- inflation-hedged asset classes, such as gold, commodi-
sponding period of the previous year, even a relative- ties, and real estate investment trusts (REITs).
ly smaller rise in the Price Index will arithmetically
give a high rate of current inflation. Hence, statement 7. Solution: C
1 is incorrect. What is inflation indexed bonds?
It is a type of bond that is designed to protect
The base effect can lead to distortion in comparisons investors from the effects of inflation. The
and deceptive results, or, if well understood and ac- interest rate is linked to an index, such as the
counted for, can be used to improve our understand- Consumer Price Index (CPI) and is adjusted
ing of data and the underlying processes that generate intermittently to keep pace with inflation.
them. This type of bond is an attractive investment
to preserve the purchasing power of finance
5. Solution: D over time.
Such bonds are a kind of debt security in which
Causes of Inflation the face value of the bond rises with inflation
An increase in the supply of money is the root of infla- and falls with deflation, as measured by an of-
tion, though this can play out through different mech- ficial price index. The real return on the bond
anisms in the economy. A country’s money supply can is equal to the coupon rate minus the rate of
be increased by the monetary authorities by: inflation.
Printing and giving away more money to citizens
Legally devaluing (reducing the value of) the legal ten-
der currency
8. Solution: B
What does conducting financial activity as “principal
Loaning new money into existence as reserve account
business” mean?
credits through the banking system by purchasing gov-
Financial activity as principal business is when a com-
ernment bonds from banks on the secondary market
pany’s financial assets constitute more than 50 per
(the most common method)
cent of the total assets and income from financial as-
sets constitute more than 50 per cent of the gross in-
6. Solution: C come. A company which fulfils both these criteria will
Advantages and Disadvantages of Inflation be registered as NBFC by RBI. Hence, statement 1 is
Inflation can be construed as either a good or a bad incorrect.
thing, depending upon which side one takes, and how
rapidly the change occurs. The term ‘principal business’ is not defined by the
Inflation redistributes wealth from creditors to debt- Reserve Bank of India Act. Hence, statement 2 is in-
ors, i.e., lenders suffer and borrowers benefit out of correct.
inflation.
The Reserve Bank has defined it so as to ensure that
Pros only companies predominantly engaged in financial
Individuals with tangible assets (like property or activity get registered with it and are regulated and
stocked commodities) priced in their home currency supervised by it. Hence if there are companies engaged
may like to see some inflation as that raises the price of in agricultural operations, industrial activity, purchase

10 www.insightsonindia.com
and sale of goods, providing services or purchase, sale
or construction of immovable property as their princi-
pal business and are doing some financial business in
a small way, they will not be regulated by the Reserve
Bank. Interestingly, this test is popularly known as 50-
50 test and is applied to determine whether or not a
company is into financial business.
9. Solution: D
What is a Non-Banking Financial Company (NBFC)?
A Non-Banking Financial Company (NBFC) is a compa-
ny registered under the Companies Act, 1956 engaged
in the business of loans and advances, acquisition of
shares/stocks/bonds/debentures/securities issued by
Government or local authority or other marketable se-
curities of a like nature, leasing, hire-purchase, insur-
ance business, chit business but does not include any
institution whose principal business is that of agricul-
ture activity, industrial activity, purchase or sale of any
goods (other than securities) or providing any services
and sale/purchase/construction of immovable proper-
ty. A non-banking institution which is a company and
has principal business of receiving deposits under
any scheme or arrangement in one lump sum or in
instalments by way of contributions or in any other
manner, is also a non-banking financial company (Re-
siduary non-banking company).
NBFCs are doing functions similar to banks. What is dif-
ference between banks & NBFCs?
NBFCs lend and make investments and hence their ac-
tivities are akin to that of banks; however, there are a
few differences as given below:
i. NBFC cannot accept demand deposits.
ii. NBFCs do not form part of the payment and settle-
ment system and cannot issue cheques drawn on itself.
iii. Deposit insurance facility of Deposit Insurance and
Credit Guarantee Corporation is not available to depos-
itors of NBFCs, unlike in case of banks.
10. Solution: D
Entities Regulated by RBI and applicable regulations
Does the Reserve Bank regulate all financial compa-
nies?
No. Housing Finance Companies, Merchant Banking
Companies, Stock Exchanges, Companies engaged in
the business of stock-broking/sub-broking, Venture
Capital Fund Companies, Nidhi Companies, Insurance
companies and Chit Fund Companies are NBFCs but
they have been exempted from the requirement of
registration under Section 45-IA of the RBI Act, 1934
subject to certain conditions.
11. Solution: C
Infrastructure Finance Companies (IFCs)
What is an IFC and what are the eligibility or entry point
norms for registration of an IFC-NBFC with RBI?
Ans: IFC is a non-deposit accepting loan company
which complies with the following: Hence, statement
1 is incorrect.
A minimum of 75 per cent of the total assets of an IFC-
NBFC should be deployed in infrastructure loans;
The company should have minimum net-worth of Rs
300 crore, Hence, statement 2 is incorrect.
The CRAR of of the company should be at 15% with
Tier I capital at 10% and
The minimum credit rating of the company should
be at ‘A’ or equivalent of CRISIL, FITCH, CARE, ICRA,
BRICKWORK or equivalent rating by any other ac-
crediting rating agencies.
12. Solution: C
The National Statistical Office (NSO), Ministry of
Statistics and Programme Implementation (MoSPI)
release All India Consumer Price Index (CPI) on Base
2012=100 and corresponding Consumer Food Price In-
dex (CFPI) for Rural (R), Urban (U) and Combined (C).
The Monetary Policy Committee (MPC) uses CPI data
for inflation targeting.
CPIs were revised in 2015, with the following changes
The base year has been changed from 2010=100 to
2012=100.
The number of Groups, which was five in the old se-
ries, has now been increased to six. Hence, statement
2 is incorrect. ‘Pan, tobacco and intoxicants’, which
was a Sub-group under the group ‘Food, beverages and
tobacco’, has now been made as a separate group. Ac-
cordingly, the group ‘Food, beverages and tobacco’ has
been changed to Food and beverages.
13. Solution: A
Securities transaction tax (most commonly known as
STT) was introduced in the Budget of the year 2004
and was made applicable from October 2004. The main
objective behind the implementation of STT is to avoid
tax evasion. Hence, statement 3 is incorrect.
What is Securities Transaction Tax
www.insightsonindia.com 11
STT is a kind of financial transaction tax which is simi- Budget 2023-24
lar to tax collected at source (TCS). STT is a direct tax
levied on every purchase and sale of securities that
are listed on the recognized stock exchanges in India.
STT is governed by Securities Transaction Tax Act (STT
Act) and STT Act has specifically listed down various
taxable securities transaction i.e., transaction on which
STT is leviable.
Scope of the term ‘securities’ liable for STT
While the term ‘securities’ is not defined under STT
Act, STT Act specifically allows borrowing of defini-
According to budget (2023-24) estimates, GST
tion of such terms not defined in STT Act but defined
forms the largest component of the total tax
in Securities Contracts (Regulation) Act, 1956 or In-
revenue. Hence, statement 1 is incorrect.
come-tax Act, 1961. The term ‘Securities’ is defined
in Securities Contracts (Regulation) Act. Hence, state-
ment 2 is incorrect.

14. Solution: D
GST would replace the following taxes currently levied
and collected by the Centre:
a) Central Excise Duty
b) Duties of Excise (Medicinal and Toilet Prepara-
tions)
c) Additional Duties of Excise (Goods of Special Im-
portance)
d) Additional Duties of Excise (Textiles and Textile Prod-
ucts) In the last decade, the share of tax receipts has been
e) Additional Duties of Customs (commonly known as broadly in the range of 10 to 11.5 percentage of GDP.
CVD) The last decade, the share of direct tax in the total tax
f) Special Additional Duty of Customs (SAD) receipts has been higher than the share of indirect tax.
g) Service Tax
h) Cesses and surcharge in so far as they relate to sup- 16. Solution: B
ply of goods and services. On 1 July 2022, the Permanent Missions of the Neth-
State taxes that would be subsumed within the GST erlands, Tajikistan and Egypt host the “Geneva Water
are: Dialogue” at the WMO Headquarters, Geneva.
a) State VAT The Geneva Water Dialogue is an interactive conversa-
b) Central Sates Tax tion that seeks to bring together Geneva-based stake-
c) Purchase Tax holders in response to the UNGA’s call to involve all
d) Luxury Tax relevant stakeholders to assess challenges and oppor-
e) Entry Tax (All forms) tunities and support further action to implement wa-
f) Entertainment Tax and Amusement Tax (except ter-related goals and targets under the International
those levied by the local bodies) Hence, statement 5 Decade for Action and the 2030 Agenda.
is incorrect. The Dialogue presents an opportunity for multilateral
g) Taxes on advertisements Geneva to provide an input to the co-hosts and Secre-
h) Taxes on lotteries, betting and gambling tariat of the UN 2023 Water Conference, whilst provid-
i) State cesses and surcharges in so far as they relate to ing a platform for countries and organizations to col-
supply of goods and services. lectively brainstorm about possible commitments for
the Water Action Agenda, a key outcome document of
15. Solution: D the Water Conference in which stakeholders can vol-
untarily pledge commitments to get the world back on

12 www.insightsonindia.com
track to reaching SDG 6 and other water-related goals
and targets. Distribution
https://www.unwater.org/news/geneva-water-dia-
logue-interactive-conversation The nodules of greatest commercial interest occur in
the Clarion-Clipperton Zone in the equatorial Pacific
Ocean (CCZ) and in the Central Indian Ocean Basin. In
17. Solution: A the CCZ, polymetallic nodules cover 9 million km2 with
Achieving the Global Methane Pledge (GMP) goal of typical concentrations of 15 kg m-2. The nodules con-
cutting anthropogenic methane emissions at least 30 tain nickel, copper, and cobalt (around 2 - 3% of the
percent by 2030 from 2020 levels is the fastest way to nodule weight) as well as traces of other metals such as
reduce near-term warming and is necessary to keep molybdenum, Rare Earth Elements and lithium, which
a 1.5°C temperature limit within reach. Achieving this are important to high-tech industries. The amount of
goal will drive significant energy security, food securi- copper contained in the CCZ nodules is estimated to be
ty, health, and development gains. about 20% of that held in global land-based reserves.

In the year since it launched at COP26, the Global https://www.eu-midas.net/science/nodules

Methane Pledge has generated unprecedented mo-
mentum for methane action. Country endorsements 19. Solution: C
of the GMP have grown from just over 100 last year to Tonga Volcanic Eruption
150, more than 50 countries have developed national Recently, a volcano erupted in the southern Pacific Is-
methane action plans or are in the process of doing so, land of Tonga, which triggered Tsunami waves around
substantial new financial resources are being directed the Pacific. It is an Undersea Volcanic Eruption con-
to methane action, and partners have launched “path- sisting of two small uninhabited islands, Hunga-Ha’apai
ways” of policies and initiatives to drive methane re- and Hunga-Tonga.
ductions in key methane-emitting sectors – a GMP The Tonga Islands occur along the Ring of Fire- a perim-
Energy Pathway launched at the June 2022 Major eter of heightened volcanic and seismic activity that
Economies Forum on Energy and Climate and a GMP encircles the Pacific Ocean basin.
Food and Agriculture Pathway and GMP Waste Path-
way, both launched today at COP27. 20. Solution: D
Oromia Region is located in Ethiopia. Recently, more
18. Solution: B than 200 ethnic Amharas have been killed in an ethnic
Polymetallic nodules attack in the country’s Oromia region.
Polymetallic nodules cover vast areas of the abyssal Amharas are a Semitic-speaking ethnic group which is
ocean floor and contain significant amounts of critical indigenous to Ethiopia, traditionally inhabiting parts of
metals. the northwest Highlands of Ethiopia, particularly in-
The chemical and mineralogical compositions of habiting the Amhara Region.
polymetallic nodules are primarily controlled by their
formation process.
Formation

Polymetallic nodules are rounded accretions of man-

ganese and iron hydroxides that cover vast areas of the
seafloor, but are most abundant on abyssal plains at
water depths of 4000-6500 metres. They form through
the aggregation of layers of iron and manganese hy-
droxides around a central particle (such as a shell or
small rock fragment), and range in size from a few
millimetres to tens of centimetres. Growth of these
nodules is extremely slow, at a rate of millimetres per
million years, and they remain on the seafloor surface,
often partially buried in a thin layer of sediment.

www.insightsonindia.com 13
21. Solution: B It is also empowered to carry out inspection of ma-
Paktika is a city in Afghanistan, recently hit by an earth- rine products, its raw material, fixing standards,
quake. specifications, and training as well as take all necessary
Aegean Islands Dispute steps for marketing the seafood overseas.
The Aegean is connected through the straits of the
Dardanelles, the Sea of Marmara, and the Bosporus to 24. Solution: B
the Black Sea, while the island of Crete can be taken as The concept of the curative petition is supported
marking its boundary on the south. by Article 137 of the Indian Constitution. It provides
Aegean dispute is a set of interrelated controversies that in the matter of laws and rules made under Article
between Greece and Turkey over sovereignty and re- 145, the Supreme Court has the power to review any
lated rights in the region of the Aegean Sea. judgement pronounced (or order made) by it. Such a
Strait of Hormuz petition needs to be filed within 30 days from the date
The Strait is 33 km wide at its narrowest point, but the of judgement or order.
shipping lane is just three km wide in either direction.
Most crude exported from Saudi Arabia, Iran, the UAE, A curative petition may be filed after a review plea
Kuwait and Iraq – all members of the Organisation of against the final conviction is dismissed. It can be en-
the Petroleum Exporting Countries (OPEC) – is shipped tertained if the petitioner establishes that there was
through this waterway. a violation of the principles of natural justice, and that
It is also the route used for nearly all the liquefied nat- he was not heard by the court before passing an order.
ural gas (LNG) produced by the world’s biggest LNG ex-
porter, Qatar
25. Solution: D
The Bureau of Energy Efficiency is an agency of the
22. Solution: C Government of India, under the Ministry of Power
Central Information Commission (CIC) created in March 2002 under the provisions of the
It is a Statutory Body constituted under the RTI Act, nation’s 2001 Energy Conservation Act. The agency’s
2005. function is to develop programs which will increase the
It consists of Chief Information Commissioner (CIC) and conservation and efficient use of energy in India.
not more than ten Information Commissioners (ICs). The government has proposed to make it mandatory
They are appointed by President on the recommen- for certain appliances in India to have ratings by the
dation of a committee consisting of: Prime Minister as BEE starting in January 2010. The mission of Bureau of
Chairperson; Leader of Opposition in Lok Sabha and A Energy Efficiency is to “institutionalise” energy efficien-
Union Cabinet Minister nominated by Prime Minister. cy services, enable delivery mechanisms in the country
CIC is not eligible for reappointment. and provide leadership to energy efficiency in all sec-
By RTI (Amendment) Act, 2019 and the Rules brought tors of the country. The primary objective would be to
in thereafter, tenure of the commissioners has been reduce energy intensity in the economy.
cut to three years. Earlier, 2005 Act gave them a fixed
tenure of five years or a retirement age of 65 years, The broad objectives of BEE are as under:
whichever is earlier. Objectives
CIC have the same powers as are vested in a civil Provide a policy recommendation and direction to na-
court. tional energy conservation activities.
Coordinate policies and programmes on efficient use
23. Solution: C of energy with shareholders.
Marine Products Export Development Authority Establish systems and procedures to verify, measure
(MPEDA) and monitor Energy Efficiency (EE) improvements.
It was set up by an act of Parliament during 1972. Leverage multilateral, bilateral and private sector sup-
It’s headquartered in Kochi. It works under the Min- port to implement the EC Act ‘01.
istry of Commerce and Industry Demonstrate EE delivery systems through public-pri-
MPEDA is empowered to regulate ex- vate partnerships.
ports of marine products and take all
measures required for ensuring sustained, quality sea-
food exports from the country.

14 www.insightsonindia.com
1). Solution: C ) But the work done in all 3 cases is the same.
Equating (1) and (3),
Scientists and philosophers are still exploring and un- 9m + 15w = 3wx + 15w
derstanding what consciousness actually is 9m = 3wx
The passage does not give one particular definition of x = 3m/w
consciousness. It talks about different interpretations Equating (1) and (2),
of the word and leaves the question unanswered at the 9m + 15w = 2mx
end of it. Hence C is the correct answer. Substituting for x,
9m + 15w = 2m (3m/w)
9mw + 15w2 = 6m2
2) Solution: D) 7 3mw + 5w2 = 2m2
Tank filled in one hour when the taps A and B are open
2m2 - 3mw – 5w2 = 0
= (1/12)+(1/15)= 9/60= 3/20.
2m2 - 5mw + 2mw – 5w2 = 0
Tank filled in one hour when the taps A and C are open
m (2m-5w) + w(2m-5w) = 0
= (1/12) + (1/20) = 8/60 = 2/15
m + w = 0 or 2m - 5w = 0
Therefore, part of the tank filled in two hours = (3/20)
m = -w or 2m = 5w
+ (2/15) = 17/60.
m/w = -1 or 5/2
Part filled in 6 hours = ( 17/60) * 3 = 51/60
Therefore, m/w = 5/2
Remaining part = 9/60 = 3/20

After 6 hours Now it is (A+B)’s turn

5). Solution: A) 12
Time taken by the A+B to fill 3/20 part = 1 hour Explanation:
Therefore, total time taken = 6+1 = 7 hours 1/20 of tank that will be filled by inlet A in an hour.
Hence, option (d) is correct. 1/30 of tank that will be filled by inlet B in an hour.
1/40 of tank that will be emptied by outlet C in an hour.
1/60 of tank that will be emptied by outlet D in an hour.
3) Solution: C) 10 days
From the given data, we can get When all the pipes are opened simultaneously, the
A’s one day work = 1/24, fraction of tank that can be filled in an hour
B’s one day work = 1/9 and = (1/20) + (1/30) – (1/40) – (1/60)
Cs one day work = 1/12. = [(20+30)/(20×30)] – [(40+60)/(40×60)]
Since, B and C start the work and left after 3 days, the = (1/12) – (1/24)
work done by B and C is 3 *((1/9) +(1/12)) = 7/12. = (1/24)
Therefore, remaining work = 1- 7/12 =5/12. Therefore, the time required to fill the empty tank = 24
Time taken by A to complete the remaining work = 24 hours.
* 5/12 =10 days. Thus, to fill half of the tank, 12 hours are needed.
Hence, option (c) is correct.

4) Solution: C) 5:2
Explanation:
Let the efficiency of a man and woman be ‘m’ and ‘w’
respectively.
Case 1:
3 men’s and 5 women’s work for 3 days = 3 (3m + 5w)
= 9m + 15w…….(1)
Case 2:
2 men’s work for (let’s say) ‘x’ days = x (2m) = 2mx
……..(2)
Case 3:
3 women’s work for (x+5) days = (x+5)(3w) = 3wx+15w
………(3)

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