All questions of Week 22 for CLAT Exam

Canara Bank is the oldest public sector bank in India. It was established in 1906 in Mangalore, Karnataka.

Historical Background:
Canara Bank has a rich history that dates back over a century. It was founded by Ammembal Subba Rao Pai, a philanthropist, and visionary. Initially, the bank was known as Canara Hindu Permanent Fund, and it started its operations as a limited company.

Conversion to a Public Sector Bank:
In 1969, the Government of India nationalized Canara Bank along with 13 other major commercial banks in the country. This move aimed to bring about social welfare and economic development by ensuring the availability of banking services to all sections of society.

Significance:
Being the oldest public sector bank in India, Canara Bank has played a crucial role in the growth and development of the banking sector in the country. Over the years, it has expanded its network and services to cater to the diverse financial needs of individuals, businesses, and institutions.

Key Features and Achievements:
1. Wide Network: Canara Bank has a vast network of branches and ATMs across the country, making its services easily accessible to customers in both urban and rural areas.

2. Product Range: The bank offers a wide range of financial products and services, including savings accounts, current accounts, fixed deposits, loans, credit cards, and insurance.

3. International Presence: Canara Bank has also established its presence globally with branches in several countries, including the United Kingdom, Russia, Hong Kong, Bahrain, South Africa, and the United Arab Emirates.

4. Digital Initiatives: The bank has embraced digitalization to enhance customer experience and convenience. It offers various digital banking services such as internet banking, mobile banking, and digital wallets.

5. Awards and Recognitions: Canara Bank has received several awards and recognitions for its performance and contribution to the banking industry. It has been recognized for its excellence in areas like corporate governance, customer service, and financial inclusion.

Conclusion:
Canara Bank holds the distinction of being the oldest public sector bank in India. With its long-standing history, wide network, and diverse range of services, it continues to be a trusted and reliable financial institution for millions of customers.

Solution:

Given, Set X = {a, 2a, 3a, 4a, 5a}

If element a in Set X is replaced by b and b < a,="" then="" the="" set="" becomes="" {b,="" 2b,="" 3b,="" 4b,="" />

To find out which of the given options is true, we need to calculate the mean, median, and standard deviation of both sets and compare them.

Mean:

Mean of Set X = (a + 2a + 3a + 4a + 5a)/5 = 3a

Mean of {b, 2b, 3b, 4b, 5b} = (b + 2b + 3b + 4b + 5b)/5 = 3b

Since a > b, the mean of the second set is less than the mean of the first set. Therefore, option I is not true.

Median:

Median of Set X = 3a

Median of {b, 2b, 3b, 4b, 5b} = 3b

Since the median of both sets is the third element, which is 3a and 3b respectively, the median does not change. Therefore, option II is true.

Standard deviation:

Standard deviation of Set X can be calculated as follows:

σ = √[(1/5) * {(a - 3a)² + (2a - 3a)² + (3a - 3a)² + (4a - 3a)² + (5a - 3a)²}]

= √[(1/5) * {4a² + a² + a² + 4a² + 16a²}]

= √(26a²/5)

Standard deviation of {b, 2b, 3b, 4b, 5b} can be calculated as follows:

σ = √[(1/5) * {(b - 3b)² + (2b - 3b)² + (3b - 3b)² + (4b - 3b)² + (5b - 3b)²}]

= √[(1/5) * {4b² + b² + b² + 4b² + 16b²}]

= √(26b²/5)

Since a > b, the standard deviation of the first set is greater than the standard deviation of the second set. Therefore, option III is not true.

Hence, the correct answer is option II only.

The given series is formed by squaring consecutive natural numbers (1, 2, 3, 4, ...). So, the next number in the series is 5^2 = 25.

Devaluation of the Rupee in 1991

In 1991, India was facing a severe balance of payment crisis due to several factors such as high inflation, low foreign exchange reserves, and a mounting fiscal deficit. To address this crisis and stabilize the economy, the Indian government took several immediate measures, one of which was the devaluation of the rupee against foreign currencies.

1. Balance of Payment Crisis:
- India's balance of payment (BOP) is the record of all economic transactions between the residents of the country and the rest of the world. It consists of the current account and capital account.
- A balance of payment crisis occurs when a country faces a shortage of foreign currency reserves to meet its external payment obligations, such as imports, debt servicing, and other international transactions.
- In 1991, India's BOP crisis was mainly caused by a large current account deficit, which means that the country was spending more on imports and external payments than it was earning from exports and foreign investments.

2. Devaluation of the Rupee:
- Devaluation is a deliberate downward adjustment in the value of a currency relative to other currencies or a standard, usually done by the government or central bank.
- Devaluing the currency makes the exports cheaper and more competitive in the international market, while making imports more expensive.
- In 1991, the Indian government devalued the rupee against foreign currencies as an immediate measure to address the balance of payment crisis.
- Devaluation aimed to reduce the current account deficit by making imports costlier and exports more competitive, thereby promoting a higher inflow of foreign exchange.

3. Impact of Devaluation:
- Devaluation can have both positive and negative effects on the economy.
- Positive impact: Devaluation can improve the balance of payment situation by making exports more competitive, increasing foreign exchange earnings, and reducing the current account deficit.
- Negative impact: Devaluation can lead to higher import costs, which may result in inflationary pressures. It can also increase the burden of external debt repayment.

4. Other Measures:
- Devaluation of the rupee was just one of the measures taken by the Indian government in 1991 to address the balance of payment crisis.
- Other measures included liberalization of the economy, industrial reforms, fiscal consolidation, and seeking financial assistance from international organizations like the International Monetary Fund (IMF).

Conclusion:
In 1991, as an immediate measure to resolve the balance of payment crisis, the Indian government devalued the rupee against foreign currencies. This devaluation aimed to improve the country's current account deficit by making exports more competitive and reducing the burden of external payments.

Geometric Progression (GP)

A geometric progression (GP) is a type of series that is characterized by a common ratio and is of the form a, ar, ar^2, ar^3, ... where 'a' is the first term and 'r' is the common ratio.

Explanation:

1. Geometric Progression:
- A geometric progression (GP) is a sequence of numbers where each term after the first is found by multiplying the previous term by a fixed, non-zero number called the common ratio.
- In a GP, the ratio of any term to its preceding term is always constant.
- The general form of a GP is given by a, ar, ar^2, ar^3, ... where 'a' is the first term and 'r' is the common ratio.
- The common ratio 'r' can be any non-zero real number.

2. Arithmetic Progression:
- An arithmetic progression (AP) is a sequence of numbers where each term after the first is obtained by adding a constant difference to the preceding term.
- In an AP, the difference between any term and its preceding term is always constant.
- The general form of an AP is given by a, a+d, a+2d, a+3d, ... where 'a' is the first term and 'd' is the common difference.
- The common difference 'd' can be any real number.

Comparison:

- In an arithmetic progression (AP), the terms are obtained by adding a constant difference, whereas in a geometric progression (GP), the terms are obtained by multiplying a constant ratio.
- The terms in an AP have a linear relationship, while the terms in a GP have an exponential relationship.
- The common difference in an AP can be any real number, whereas the common ratio in a GP can be any non-zero real number.

Conclusion:

The series described in the given form, a, ar, ar^2, ar^3, ..., is a geometric progression (GP) as it follows the pattern of multiplying each term by a constant ratio 'r'. Therefore, the correct answer is option 'A' - Geometric Progression (GP).

"I am ecstatic that India has won the Sahara Cup!"

The given series is a Fibonacci Series, where each number is the sum of the two preceding numbers. So, to find the next number, add the last two numbers: 5 + 8 = 13.

Explanation:
To understand why the new standard deviation will be the same as the original standard deviation, we need to understand the concept of standard deviation and how it is affected by adding a constant to each data point.

Standard Deviation:
The standard deviation measures the spread or dispersion of a set of data points. It tells us how much the data points deviate from the mean. A higher standard deviation indicates a greater spread of data points, while a lower standard deviation indicates a smaller spread.

Effects of Adding a Constant to Data Points:
When a constant is added to each data point, it does not affect the spread or dispersion of the data points. It simply shifts the entire distribution by the same amount. This means that the new data points will have the same relative distances from each other as the original data points.

Effect on Standard Deviation:
Since the standard deviation measures the spread or dispersion of the data points, adding a constant to each data point does not change the spread. The new standard deviation will be the same as the original standard deviation.

Proof:
Let's assume the original standard deviation is S. Adding the constant C to each data point will result in new data points: a+C, b+C, and c+C.

To calculate the new standard deviation, we need to calculate the variance of the new data points:

Variance = ((a+C - (a+b+c+C)/3)^2 + (b+C - (a+b+c+C)/3)^2 + (c+C - (a+b+c+C)/3)^2) / 3

Expanding and simplifying the above expression, we get:

Variance = ((a - (a+b+c)/3)^2 + (b - (a+b+c)/3)^2 + (c - (a+b+c)/3)^2) / 3

This is the same as the original variance, which is equal to S^2.

Therefore, the new standard deviation is equal to the original standard deviation S.

Hence, the correct answer is option 'A'. The new standard deviation will be S.

Common Difference in the Series 3, 8, 13, 18, ...

The series given is: 3, 8, 13, 18, ...


Finding the Common Difference:

To find the common difference in an arithmetic sequence, we subtract the previous term from the next term. Let's do this for the given series:


- The difference between 8 and 3 is 5.
- The difference between 13 and 8 is 5.
- The difference between 18 and 13 is 5.

Since the difference between each pair of consecutive terms is the same, the common difference in the series is 5.


Conclusion:

The common difference in the series 3, 8, 13, 18, ... is 5. Therefore, the correct answer is option B) 5.

Understanding the Correct Option
The question revolves around converting direct speech into indirect speech. Let's analyze why option 'C' is correct.
Direct Speech Breakdown
- The teacher expresses anger by asking why the student has come.
- The teacher also reminds the student about a prior instruction to never return.
Analysis of Each Option
- Option A: "The teacher asks me very angrily why I had come and if she had not told me to never come again."
- Incorrect tense: "had come" suggests past perfect, which does not fit the context of the current inquiry.
- Option B: "The teacher asked me very angrily why I had come and if she had not told me to never come again."
- Incorrect verb tense: "asked" changes the context to the past, while the teacher's anger is in the present.
- Option C: "The teacher asks me very angrily why I have come and if she had not told me to never come again."
- Correct verb tense: "asks" maintains the present tense, fitting the immediate context.
- The phrase "have come" accurately reflects the present situation.
- Option D: "The teacher asks me very angrily why you had come and if she had not told me to never come again."
- Incorrect pronoun: "you" changes the perspective from first person (me) to second person, which is not appropriate.
Conclusion
Option 'C' is correct because it maintains the present tense and proper perspective, making the transformation from direct to indirect speech accurate and coherent.

Introduction:
The banking sector is a crucial part of the financial system and plays a significant role in the economy. It involves various terms and concepts that are specific to the industry. This question asks us to identify the term that is not related to the banking sector. Let's analyze each option to find the correct answer.

Analysis:

a) BASEL III:
- Basel III is a term related to the banking sector.
- It refers to a set of international banking regulations issued by the Basel Committee on Banking Supervision.
- These regulations aim to strengthen the banking sector's resilience by increasing capital requirements, improving risk management, and enhancing transparency.

b) Forex Reserve:
- Forex Reserve is not directly related to the banking sector.
- Forex Reserve refers to the foreign currency assets held by a country's central bank.
- It is used to manage exchange rate stability, support international trade, and meet external obligations.

c) Statutory Liquidity Ratio (SLR):
- SLR is a term related to the banking sector.
- It is a requirement imposed by the central bank on commercial banks to maintain a certain percentage of their net demand and time liabilities in the form of liquid assets.
- Liquid assets include cash, gold, and government securities.
- SLR helps ensure the liquidity and solvency of banks and serves as a tool for monetary policy.

d) Marginal Standing Facility (MSF):
- MSF is a term related to the banking sector.
- It is a window provided by the central bank to commercial banks for borrowing funds overnight.
- Banks can avail funds at a penal rate above the repo rate by pledging government securities.
- MSF helps banks meet their short-term liquidity requirements.

Conclusion:
After analyzing each option, we can conclude that the term "Forex Reserve" is not related to the banking sector. While it is an essential concept in the field of economics and finance, it specifically pertains to a country's foreign currency assets held by the central bank, rather than the operations and regulations of the banking sector.

Globalization

Globalization is the policy that involves integrating the domestic economy with the world economy. It refers to the increasing interconnectedness and interdependence of countries through the exchange of goods, services, information, and capital.

Explanation:

1. Definition and Concept of Globalization:
Globalization is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. It is driven by advancements in technology, transportation, and communication, which have made it easier for countries to interact and engage in trade.

2. Integration of Domestic Economy with the World Economy:
Globalization involves integrating the domestic economy with the world economy. This means that countries open their markets to foreign trade and investment, allowing the flow of goods, services, and capital across borders. It leads to increased competition, access to new markets, and the transfer of technology and knowledge.

3. Benefits of Globalization:
- Increased economic growth: Globalization can lead to higher levels of economic growth as countries are able to specialize in the production of goods and services that they have a comparative advantage in.
- Enhanced efficiency: Globalization allows countries to benefit from economies of scale and specialization, leading to increased efficiency in production processes.
- Access to new markets: Globalization provides opportunities for businesses to expand their reach and access new markets, which can lead to increased sales and profits.
- Transfer of technology and knowledge: Globalization facilitates the transfer of technology and knowledge between countries, allowing for innovation and development.

4. Challenges of Globalization:
- Inequality: Globalization can exacerbate income inequality within countries, as it can benefit certain sectors and individuals more than others.
- Job displacement: Globalization can lead to job losses in certain industries, particularly those that are unable to compete with cheaper imports or outsourcing.
- Environmental impact: Globalization can contribute to environmental degradation, as increased trade and production can lead to higher levels of pollution and resource depletion.
- Social and cultural changes: Globalization can lead to changes in social and cultural norms, as countries are exposed to different ideas and practices from around the world.

Conclusion:
Globalization is a policy that involves integrating the domestic economy with the world economy. It has both benefits and challenges, and its impact varies across countries and sectors. Overall, globalization has transformed the way countries interact and engage in economic activities, leading to increased interdependence and opportunities for growth.

Explanation:

In the given sentence, Poonam says that cats are very clean animals. Her friend asks her if she likes them. We need to convert this sentence into indirect speech.


Steps to convert direct speech into indirect speech:

1. Reporting verb should be changed according to the tense of the reporting verb and the reporting speech should be changed to reported speech.

2. The tense of the reported speech should be changed according to the rules of sequence of tenses.

3. Pronouns, demonstratives and possessives should be changed according to the subject of the reporting speech.

4. Time and place should also be changed.


Option A: Poonam said that cats are very clean animals. Her friend asked her if she liked them.

There is no error in option A. It correctly follows all the steps to convert direct speech into indirect speech. This option is correct.


Option B: Poonam says that cats are very clean animals. Her friend asked her if she like them.

Option B is incorrect because the tense of the reported speech is not changed according to the rules of sequence of tenses. It should be "liked" instead of "like" to match the tense of the reporting verb "asked".


Option C: Poonam told that cats are very clean animals. Her friend asked her if she liked them.

Option C is incorrect because the reporting verb "told" is not appropriate. "Said" is more appropriate in this context.


Option D: Poonam said that cats are very clean animals. Her friend asked her if she like them.

Option D is incorrect because it has the same error as option B. The tense of the reported speech is not changed according to the rules of sequence of tenses. It should be "liked" instead of "like" to match the tense of the reporting verb "asked".


Therefore, the correct answer is option A.

"Mommy, can we go to the park and play?"

India is a country located in South Asia. It is the seventh-largest country by land area and the second-most populous country in the world, with over 1.3 billion people. It gained independence from British colonial rule on August 15, 1947, and is now a federal parliamentary democratic republic. India is known for its rich cultural heritage, diverse languages, religions, and traditions.

Adding each number to the previous term is a characteristic of an increasing series. In an increasing series, each term is obtained by adding a constant difference to the previous term. Let's analyze the given series step by step to understand why it belongs to an increasing series.

Step 1: 17
The first term of the series is 17.

Step 2: 17 + 5 = 22
To obtain the second term, we add 5 to the previous term (17).

Step 3: 22 + 10 = 32
To obtain the third term, we add 10 to the previous term (22).

Step 4: 32 + 15 = 47
To obtain the fourth term, we add 15 to the previous term (32).

We can observe that each term is obtained by adding a constant difference to the previous term. In this case, the constant difference is increasing by 5 each time (5, 10, 15). Therefore, the series is an increasing series.

Explanation of Other Options:
a) Geometric Progression (GP): In a geometric progression, each term is obtained by multiplying a constant ratio to the previous term, not by adding a constant difference. Therefore, this series does not follow the pattern of a geometric progression.
b) Fibonacci Series: In a Fibonacci series, each term is obtained by adding the two previous terms, not by adding a constant difference to the previous term. Therefore, this series does not follow the pattern of a Fibonacci series.
c) Odd Numbers Series: In an odd numbers series, each term is an odd number, but the terms are not obtained by adding a constant difference to the previous term. Therefore, this series does not follow the pattern of an odd numbers series.

Conclusion:
The given series, 17, 22, 32, 47, ..., forms an increasing series as each term is obtained by adding a constant difference (5, 10, 15) to the previous term.

Explanation:

Context:
The speaker is asking someone not to leave, indicating a desire for them to stay.

Interpretation:
The statement "Please don't go away" implies a sense of urgency or importance attached to the person staying.

Explanation of Options:

• Option A: This does not accurately represent the situation as the speaker is not requesting for the other person to please them but rather asking them not to leave.
• Option B: This directly contradicts the original statement as the speaker is asking the person not to go away.
• Option C: This is the correct answer as it accurately reflects the speaker's plea for the other person to stay.
• Option D: This is similar to option C but places more emphasis on the request being a plea rather than a simple statement.

Conclusion:
In this scenario, the speaker is expressing a desire for the other person to stay, as evidenced by the statement "Please don't go away." The accurate interpretation of this statement is reflected in option C, where the speaker is begging the other person not to leave.

Service Sector Drives Growth of Indian Economy
The service sector mainly drives the growth of the Indian economy following the New Economic Policy. Here is an explanation of why the service sector plays a crucial role in the country's economic development:

Contribution to GDP
- The service sector contributes significantly to India's Gross Domestic Product (GDP). It comprises various industries such as IT, telecommunications, banking, healthcare, tourism, and more, which collectively contribute a substantial share to the country's GDP.

Employment Generation
- The service sector is a major source of employment in India. It provides job opportunities to a large number of people across various skill levels, thus contributing to economic growth and reducing unemployment rates.

Foreign Exchange Earnings
- The service sector plays a vital role in earning foreign exchange for the country. Industries like IT services, business process outsourcing (BPO), and tourism bring in substantial foreign exchange, which strengthens India's economy.

Technological Advancements
- The service sector is often at the forefront of technological advancements. Industries such as IT and telecommunications drive innovation, improve productivity, and enhance competitiveness, thereby boosting economic growth.

Global Competitiveness
- India's service sector has gained global recognition for its quality and competitiveness. The country has emerged as a preferred destination for outsourcing services, attracting foreign investments and boosting economic growth.
In conclusion, the service sector's growth post the New Economic Policy has been instrumental in driving India's economic development. Its contributions to GDP, employment generation, foreign exchange earnings, technological advancements, and global competitiveness make it a key driver of the country's economic growth.