Crash Course Test- 1 - UPSC MCQ

At present, the 10-year bond yield is trading around 6 per cent, as the yield curve is steep over five years. The risk premium demanded by investors to buy 10-year over 5-year has increased to 90 basis points. In the past, RBI has been doing open market operations (OMOs) to bring down the long end of the yield lower.

The Ring of Fire, also referred to as the Circum-Pacific Belt, is a path along the Pacific Ocean characterized by active volcanoes and frequent earthquakes. The majority of Earth's volcanoes and earthquakes take place along the Ring of Fire.

The correct answer is D. Sources of information about the interior include both direct and indirect sources. The direct sources include rock materials and molten magma from volcanic eruptions. The indirect sources include seismic activity, meteors arriving at earth, magnetic field and gravity. For instance, seismic activity help in identifying the different layers where as the sources like magnetic field and gravity helps in determining the presence of Iron and also factors like density and mass.
 

The Monetary Policy Committee (MPC) of the Reserve Bank of India is expected to keep its policy stance accommodative when it announces the decisions of the panel on Thursday. A majority of the respondents polled by Mint, however, expect RBI to do a total of 50 basis points rate cut before the end of the financial year.

The correct option is C.
The government had in 2014 constituted a committee under Professor BN Goldar to devise a PPI after the Reserve Bank of India began considering consumer price inflation as a better gauge of inflation than WPI.
The Producer Price Index (PPI) measures the average change in prices U.S. producers receive for the sale of their products. Since tariffs and taxes are not retained by producers as revenue, they are explicitly excluded from the PPI.

The correct answer is D as all the statements given  s can be considered as evidence(s) to support the theory of “Continental Drift

Igneous rocks form when magma (molten rock) cools and crystallizes, either at volcanoes on the surface of the Earth or while the melted rock is still inside the crust. All magma develops underground, in the lower crust or upper mantle, because of the intense heat there.
Metamorphic rocks form from heat and pressure changing the original or parent rock into a completely new rock.
Lithification, complex process whereby freshly deposited loose grains of sediment are converted into rock.

The correct option is B.
 As statement 2 is wrong. Primary waves (P-waves) are compressional waves that are longitudinal in nature. P-waves are pressure waves that travel faster than other waves through the earth to arrive at seismograph stations first, hence the name "Primary". These waves can travel through any type of material, including fluids, and can travel nearly 1.7 times faster than the S-waves. In air, they take the form of sound waves, hence they travel at the speed of sound. Typical speeds are 330 m/s in air, 1450 m/s in water and about 5000 m/s in granite.

The correct answer is A RESIDENTIA; CONSTRUCTION as is included in GDP estimation

- Statement 1: Incorrect. Earthquakes originate in the lithosphere, not the asthenosphere. The lithosphere consists of the Earth's crust and the uppermost part of the mantle.
- Statement 2: Incorrect. While body waves (P-waves and S-waves) do travel faster and arrive first, surface waves (Love waves and Rayleigh waves) are typically more damaging due to their high amplitude and longer duration.
- Statement 3: Correct. The inability of S-waves to travel through the outer core indicates it is liquid.
- Statement 4: Correct. P-waves are longitudinal, while S-waves are transverse.

The correct answer is D as all the given reasons are true for NBFC liquidity crisis

The correct option is D.

• Household Investment is not a standard term typically used as a component of GDP in India.
• GDP is generally calculated based on components such as Private Final Consumption Expenditure, Gross Fixed Capital Formation, Government Expenditure, and Net Exports.
• Investments by households are included under broader categories like Gross Fixed Capital Formation

all other economic variables which have time dimension, i.e., whose magnitude can be measured over a period of time are called flow variables. ... Likewise, investment (i.e., addition to the stock of capital) is a flow as it pertains to a period of time.

The correct option is A.

1. The Reserve Bank manages public debt on behalf of the Central and the State Governments. It involves issue of new rupee loans, payment of interest and repayment of these loans and other operational matters such as debt certificates and their registration.
2. The general superintendence and direction of the RBI is entrusted with the 21-member central board of directors: the governor; four deputy governors; two finance ministry representatives (usually the Economic Affairs Secretary and the Financial Services Secretary).
3. "The Central Government may from time to time give such directions to the Bank as it may, after consultation with the Governor of the Bank, consider necessary in the public interest," says Section 7(1) of the RBI Act, 1934.

The correct answer is D as none of the conditions given are  correctly differentiated between Terrestrial and Jovian planets . therefore option D

The correct answer is C as the  statement about the earth crust that Oceanic crust subducts under the continental crust during the collision of the plates. Is the only correct statement while others are false

The correct answer is D as neither 1 nor 2 is a correct statement both are false regarding the conventional theory.

(1) The convectional current theory are generated due to radioactive elements causing thermal differences in the mantle portion.

(2) Holmes argued that there exists a system of such currents in the entire mantle portion. This was an attempt to provide an explanation to the issue of force, on the basis of which contemporary scientists discarded the continental drift theory.

WHO calculates WPI?

WPI basket does not cover services. In India WPI is also known as the headline inflation rate . In India, Office of Economic Advisor (OEA), Department of Industrial Policy and Promotion, Ministry of Commerce and Industry calculates the WPI.1

The correct option is D.
India’s nominal GDP is inclining as in the US dollar.
GDP Growth Rate in India is expected to be 3.40 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. ... In the long-term, the India GDP Growth Rate is projected to trend around 2.20 percent in 2021 and 1.00 percent in 2022, according to our econometric models.

Correct Answer :- none of these

Explanation:- Higher Price of Commodities. A rise in the price of oil would lead to higher petrol prices and higher transport costs. ...

• Imported Inflation. A devaluation will increase the domestic price of imports. ...

• Higher Wages. Wages are one of the main costs facing firms. ...

• Higher Taxes. ...

• Profit-push inflation. ...

• Higher Food Prices.

All options that are given are the factors of cost push inflation.

The correct option is Option D.
A convergent boundary, or destructive boundary, is where two plates are moving towards each other and colliding. The pressure and friction is great enough at these boundaries that the material in the Earth's mantle can melt, and both earthquakes and volcanoes happen nearby.
A tectonic boundary where two plates are moving away from each other and new crust forms from magma that rises to the Earth's surface between the two plates. The middle of the Red Sea and the mid-ocean ridge (running the length of the Atlantic Ocean) are divergent plate boundaries.
The Ring of Fire, also referred to as the Circum-Pacific Belt, is a path along the Pacific Ocean characterized by active volcanoes and frequent earthquakes. The majority of Earth’s volcanoes and earthquakes take place along the Ring of Fire.
 

The correct option is Option D.
The continental crust is less dense than oceanic crust because it floats higher on the mantle, just like a piece of Styrofoam floats higher on water than a piece of wood does. The mantle, oceanic crust and continental crust have different densities because they are made of different kinds of rock with different densities.
Gutenberg discontinuity is the seismic-velocity discontinuity between the Earth's mantle and core. The boundary is at a depth of about 2 600 km and is thought to have surface irregularities of a few kilometres.
 

1. Tsunamis are only generated by undersea earthquakes and volcanic eruptions.

   • This statement is incorrect. While tsunamis are commonly generated by undersea earthquakes and volcanic eruptions, they can also be caused by other events such as underwater landslides and meteorite impacts.

2. As it approaches the shore, its velocity increases.

   • This statement is incorrect. As a tsunami approaches the shore, its velocity actually decreases due to the shallowing of the water. However, the wave height increases as the wave energy is compressed.

3. The 2004 Tsunami was caused by an undersea earthquake off the coast of Sumatra.

   • This statement is correct. The 2004 Indian Ocean Tsunami was indeed caused by a massive undersea earthquake off the coast of Sumatra.

Based on the analysis:

• Statement (1) is incorrect.
• Statement (2) is incorrect.
• Statement (3) is correct.

Thus, the correct answer is:

Statement (3) only

The correct option is C.
Subduction zones exist at convergent plate boundaries where one plate of oceanic lithosphere converges with another plate. The descending slab, the subducting plate, is overridden by the leading edge of the other plate. The slab sinks at an angle of approximately twenty-five to forty-five degrees to Earth's surface.